Celltrion to Return 33% of Annual Net Profit to Shareholders...300 Billion Won Buyback This Year

524,384 Shares to Be Repurchased, Worth 100 Billion Won
Cash Dividends, Treasury Share Buybacks and Cancellations to Proceed Together

Celltrion has established a mid- to long-term policy to return one-third of its annual net income to shareholders each year. The company will use a combination of cash dividends and share buybacks and cancellations, depending on the share price and market conditions.

Aerial view of Celltrion Plant 2 in Songdo, Yeonsu-gu, Incheon. Photo by Hyunmin Kim

On August 31, Celltrion announced that it has adopted a mid- to long-term policy to utilize approximately 33% of its annual consolidated net income as a shareholder return fund each year. As a proactive measure, the company held a board meeting on the same day and approved a share buyback worth KRW 100 billion.

The number of treasury shares to be acquired in this round is 524,384, with a total value of approximately KRW 100 billion based on the closing price of the previous trading day. Starting September 1, Celltrion plans to purchase the treasury shares on the open market.

Celltrion will include this buyback amount in the shareholder return scale for this year. In addition, every year, the company plans to secure funds equivalent to 33% of its net income based on annual results, and will determine the method of shareholder returns while considering factors such as the company’s share price, market conditions, financial structure, cash flow, and investment plans.

If the company determines that its share price is significantly undervalued relative to its intrinsic value, it will place greater emphasis on buying back and canceling treasury shares. Conversely, if stable and direct shareholder returns are deemed more effective, the company will increase the proportion of cash dividends. The specific annual scale and method of shareholder returns will be finalized through procedures such as the board of directors and general meetings of shareholders.

Celltrion also plans to eventually cancel the treasury shares to be purchased in this round, subject to board approval. Buying back and canceling treasury shares reduces the total number of shares outstanding, thereby increasing the value of shares held by existing shareholders. Key per-share indicators such as Earnings Per Share (EPS) and Book Value Per Share (BPS) will also improve.

Including this decision, the total amount of treasury shares that Celltrion has decided to buy back this year amounts to 1,600,288 shares and KRW 300 billion. The cumulative volume of treasury shares acquired over the past three years is estimated at about 8.93 million shares. The company stated that if there remains a significant gap between its share price and corporate value going forward, it will consider additional buybacks and cancellations, taking into account market conditions and available resources.

Recently, Celltrion has continued its growth momentum as prescriptions for its flagship biosimilars have expanded in the US and Europe, and as new products have become established in the market. The company plans to use the profits generated both for growth investments and for shareholder returns.

A Celltrion representative stated, “The decision to buy back KRW 100 billion worth of shares this time was based on the management’s confidence in the company’s long-term growth potential and intrinsic value. We will continue this policy not as a one-off measure, but as an ongoing mid- to long-term commitment to return one-third of consolidated net income to shareholders each year.”

The representative added, “By flexibly combining cash dividends and treasury share buybacks and cancellations according to market conditions, we aim to implement a predictable and consistent shareholder return policy so that the company’s growth achievements can directly benefit shareholders.”

This content was produced with the assistance of AI translation services.