Kumho Petrochemical Decides on Treasury Stock Acquisition and Profit Dividend

Acquisition of Treasury Shares Worth 100 Billion KRW Over 6 Months
Scheduled for Cancellation After Completion

Kumho Petrochemical announced on the 21st that it will undertake a 100 billion KRW scale treasury stock acquisition to enhance shareholder value.

The company held a board meeting on the 8th and decided to enter into a trust contract for treasury stock acquisition. The contract period is from the 21st to September 20th of this year. The plan is to cancel all acquired shares after the contract ends.

Along with this, Kumho Petrochemical decided on the 46th fiscal year dividend at approximately 5,400 KRW per common share and 5,450 KRW per preferred share, allocating a total of 146.4 billion KRW to dividends, one of the representative shareholder return policies. The total amount combining this year's treasury stock acquisition and total dividends is 246.4 billion KRW.

In December 2021, Kumho Petrochemical announced a plan to gradually expand shareholder returns by setting 25-35% of net income based on separate financial statements over the next 2-3 years as shareholder return funds, allocating 5-10% of that to treasury stock acquisition and cancellation, and 20-25% to cash dividend policies.

This year's treasury stock acquisition and dividend amounts correspond to 17.4% and 25.5%, respectively, of last year's net income based on separate financial statements, exceeding the previously announced shareholder return policy.

Considering that last year's shareholder return funds accounted for 43.7% of net income based on separate financial statements, supported by the record-high performance in 2021, the fact that 42.9% of funds are being allocated through this year is evaluated as exceeding expectations.

Baek Jong-hoon, CEO of Kumho Petrochemical, stated, "Despite the increasingly uncertain management environment both domestically and internationally, Kumho Petrochemical continues its active shareholder return policy," adding, "We will continue to do our best to enhance long-term shareholder value."

Meanwhile, Kumho Petrochemical's 46th regular general shareholders' meeting will be held at 9 a.m. on the 24th. The agenda items include ▲ approval of the 46th fiscal year financial statements ▲ approval of the director remuneration limit. Recently, the global proxy advisory firm ISS recommended full approval of Kumho Petrochemical's shareholders' meeting agenda items in its report.