Celltrion Decides to Burn Entire Treasury Shares Worth Approximately 50 Billion KRW

This year, treasury share purchases reach about 250 billion KRW
Share cancellations executed worth about 800 billion KRW

Celltrion announced on the 2nd that it has decided to cancel all treasury shares worth approximately 50 billion KRW, which were resolved for acquisition last month as part of its active shareholder return policy. The treasury shares to be canceled this time are all 268,385 shares purchased since the 24th of last month, and the cancellation is scheduled to be completed on the 18th.

Earlier, on the 14th of last month, Celltrion also decided to cancel 1,101,379 shares worth about 204.9 billion KRW and completed the cancellation. The company has stated that all additional treasury shares purchased this year will also be canceled. In fact, by deciding to cancel all purchased treasury shares within about half a month, it continues a sincere effort to enhance shareholder value.

Last year, Celltrion completed the acquisition of treasury shares worth about 436 billion KRW and canceled treasury shares worth more than 700 billion KRW. This year, it has purchased treasury shares worth about 250 billion KRW so far and decided to cancel treasury shares worth about 800 billion KRW.

Generally, when a company not only purchases treasury shares but also cancels them, it reduces the total number of issued shares, thereby increasing the value per share. Therefore, the combination of treasury share purchase and cancellation is considered a representative shareholder-friendly policy.

Celltrion’s bold and continuous treasury share purchases and cancellations are to actively fulfill its promise to shareholders to "prioritize and practice enhancing shareholder value." Additionally, this treasury share cancellation reflects the company's determination to actively improve shareholder value while alleviating investors' concerns amid increased uncertainties such as the resumption of short selling and U.S. tariff policies.

Earlier, on the 25th of last month, Celltrion decided on the largest-ever simultaneous cash and stock dividend at the regular shareholders' meeting. Cash dividends amount to 750 KRW per common share, totaling about 153.8 billion KRW, and stock dividends amount to 0.05 shares per common share, totaling about 10.25 million shares.

Notably, at the shareholders' meeting, the agenda to reduce capital reserves was also approved, securing approximately 620 billion KRW in tax-free dividend resources. By converting capital reserves into retained earnings for dividends, shareholders can avoid paying the 15.4% dividend income tax, thereby increasing their actual dividend income.

Celltrion plans to continue shareholder returns for mutual growth with shareholders and aims to achieve an average shareholder return ratio of 40% against consolidated net profit over the three years from this year to 2027.

A Celltrion official stated, "As part of enhancing shareholder value, we quickly decided to cancel all treasury shares resolved for acquisition last month," adding, "We will continue to accelerate our leap to become a global big pharma through active shareholder return policies and grow together with investors."