Celltrion to Purchase an Additional KRW 100 Billion Worth of Treasury Shares

[Financial News] Celltrion will purchase an additional approximately KRW 100 billion worth of treasury shares. With this decision, the total value of treasury shares Celltrion has decided to purchase this year will rise to KRW 400 billion.
Celltrion said on the 29th that its board of directors had decided to purchase 560,853 treasury shares. Based on the closing price on the day before the board resolution, the purchase is worth approximately KRW 100 billion and will be carried out through open-market purchases from the 30th through December 29.
The treasury-share purchase reflects the company's judgment that its stock is undervalued relative to its intrinsic value and medium- to long-term growth potential. After completing the purchase, Celltrion plans to review whether canceling the shares or expanding cash dividends would provide more tangible benefits to shareholders.
Including this purchase, Celltrion has decided to purchase a total of 2,135,262 treasury shares this year, worth KRW 400 billion. After recently deciding to cancel approximately KRW 100 billion worth of treasury shares, Celltrion is proceeding with an additional purchase as part of its ongoing shareholder-return policy.
Over the medium to long term, Celltrion has established a policy of returning approximately 33% of its consolidated net income, equivalent to about one-third, to shareholders through treasury-share cancellations or cash dividends. Each year, the company plans to determine the proportions allocated to cancellations and dividends after comprehensively reviewing its earnings, free cash flow, stock price, and investment plans for research and development (R&D) and production facilities.
Whether to cancel the treasury shares purchased this time will be decided after gathering shareholders' views at the March 2027 ordinary general meeting of shareholders. Based on annual earnings and distributable profit, the company plans to compare the effects of treasury-share cancellation and expanded cash dividends on shareholders, then determine the method of returning value after considering shareholder views and market conditions.
If Celltrion decides to cancel the treasury shares, the decision will be finalized through the relevant procedures, including the necessary board resolution, after the ordinary general meeting of shareholders.
Celltrion plans to continue growing its financial results by expanding prescriptions of existing and new products, including Zymfentra, in major global markets while maintaining investments in research and development and production capabilities. The company also aims to strengthen a virtuous cycle between corporate value and shareholder value by continuing shareholder returns based on stable free cash flow.
A Celltrion representative said, "This additional treasury-share purchase is a decision based on confidence in the company's solid fundamentals and medium- to long-term growth prospects." The representative added, "At the March 2027 ordinary general meeting of shareholders, we will listen carefully to shareholders' views and closely compare which option—treasury-share cancellation or expanded cash dividends—would provide more tangible benefits to shareholders." The representative continued, "Under the principle of returning one-third of consolidated net income to shareholders, we will pursue growth investments and shareholder returns in a balanced manner."

[email protected] Jung Sang-hee Reporter