Samsung SDI Approves 2 Trillion KRW Rights Offering... 11.82 Million Shares Increase

To Be Used for Investment in Joint Venture with US GM
Capital Increase Ratio at 16.8%... "Aimed at Mid- to Long-Term Growth"

Samsung SDI has resolved to conduct a paid-in capital increase worth 2 trillion KRW. This measure is to secure funds for facility investment.

On the 14th, Samsung SDI held a board meeting and announced the decision to increase capital by 11,821,000 shares. The increase ratio is 16.8%. Samsung SDI plans to use the funds raised through this capital increase for investment in the joint venture with US-based GM, expansion of production capacity at its plant in Hungary, Europe, and facility investment in domestic all-solid-state battery lines.

Choi Juseon, President of Samsung SDI

The capital increase will proceed through a rights offering to existing shareholders followed by a general public subscription for any unsubscribed shares. The allocation of new shares will be based on the record date of next month 18th, and the final issue price will be determined on May 22. Subscription will take place sequentially from May 27 to June 3 for the employee stock ownership association, existing shareholders, and the general public. The listing of new shares is scheduled to be completed on June 19.

Samsung SDI stated that it decided on this capital increase to enhance future competitiveness and accelerate mid- to long-term growth. The company also noted that the characteristics of the battery business, which requires 2 to 3 years from facility investment to mass production, were taken into consideration. Despite adverse factors such as stagnation in electric vehicle demand, Samsung SDI has established a policy to continue investing in securing future technologies. Along with this capital increase, the company plans to actively explore various funding methods, including utilizing its existing assets.

Choi Ju-seon, President of Samsung SDI, said, "We decided on the capital increase to accelerate mid- to long-term growth based on a stable financial structure," adding, "We will overcome the chasm (temporary demand slump) through strengthening technological competitiveness, expanding sales and orders, and price innovation, and steadily prepare for the upcoming super cycle."