Celltrion Decides to Acquire Additional Treasury Shares Worth 50 Billion KRW

All Repurchased Shares to Be Fully Cancelled

Celltrion announced on the 21st that it has decided to repurchase additional treasury shares worth 50 billion KRW.

Following its policy to actively pursue shareholder return, Celltrion completed the treasury share repurchase announced last month, disclosed the acquisition results on the same day, and announced an additional treasury share repurchase. The shares to be repurchased this time amount to 268,385 shares, approximately worth 50 billion KRW. The acquisition of treasury shares will be conducted through on-market purchases starting from the 24th of this month.

Last year, Celltrion completed treasury share acquisitions worth about 436 billion KRW and treasury share cancellations exceeding 700 billion KRW. Additionally, in December last year, following a board resolution, the company proceeded with the cancellation of treasury shares amounting to about 553.3 billion KRW, which accounted for 25% of the total treasury shares held, completing it in January. On the 14th of this month, it also decided to cancel all treasury shares acquired this year, worth approximately 203.3 billion KRW.

Moreover, the company plans to cancel all treasury shares acquired through the newly decided 50 billion KRW repurchase, making the total scale of treasury shares to be canceled this year approximately 806.6 billion KRW. Any additional treasury shares repurchased within this year will also be fully canceled.

Celltrion is actively enhancing shareholder value by boldly combining treasury share repurchases and cancellations. The repurchase of treasury shares is carried out under the judgment that the company’s stock price is undervalued, and the market interprets this as confidence in future growth potential.

In addition, Celltrion plans to conduct the largest-ever simultaneous cash and stock dividend at the upcoming regular shareholders’ meeting on the 25th. Cash dividends will be 750 KRW per common share, totaling approximately 153.8 billion KRW, and stock dividends will be 0.05 shares per common share, totaling about 10.25 million shares. Furthermore, the agenda item 'Approval for Reduction of Capital Surplus' will be submitted to the shareholders’ meeting to secure a tax-exempt dividend fund of about 620 billion KRW, which has a high effect on increasing dividend income, and will be used for future shareholder dividends. The company plans to achieve an average shareholder return rate[2] of 40% over three years until 2027.

A Celltrion official stated, "Following last year, we are continuing our shareholder return policy this year through active treasury share repurchases and cancellations," adding, "We will accelerate our leap to become a ‘global big pharma’ by building solid corporate value and pursuing an active shareholder return policy, growing together with investors."