Celltrion

Dear Shareholders,

On Monday, May 26, Celltrion announced its plan to conduct a bonus issue of shares aimed at enhancing shareholder value. We would like to provide the following information regarding this matter:

■ Key Details of the Bonus Issue

The company has resolved to issue 0.04 new common shares for each existing share. The scheduled listing date for the new shares is July 25, 2025, and the record date (closure of shareholder registry) is June 10, 2025. The total number of new shares to be issued is 8,494,384. This issuance amount has been determined by taking into account the number of treasury shares previously repurchased by the company, thereby minimizing the burden on circulating shares.

Compared to the cancellation of treasury shares, a bonus issue allows for the sharing of potential value gains with shareholders when the new shares are listed. As noted, the new shares are scheduled to be listed on July 25, and around that time, the company plans to announce its Q2 provisional earnings. Through this bonus issue, shareholders can expect an approximately 4% stock dividend effect.

This decision was made in light of recent excessive undervaluation of our stock price due to external supply factors—such as the resumption of short selling and tariff-related issues—despite fundamental improvements in the company. It reflects our confidence in the company’s value and our commitment to responsible shareholder value enhancement.

■ Ongoing Commitment to Responsible Management and Shareholder Value Enhancement

The company is continuing its responsible management practices to stabilize the stock price and encourage long-term investment. This includes activities such as share buybacks and cancellations, CEO stock purchases, and the "Value-Up Program" announced in March.

With continued annual revenue growth exceeding 30%, this year we anticipate more than 40% growth year-over-year, driven by the launch of four high-margin biosimilar products.

However, despite these fundamental strengths, the stock remains significantly undervalued due to external factors like the resumption of short selling and tariff issues. This bonus issue aims to restore market confidence and enhance shareholder value.

Going forward, we will actively respond to market distortions and work toward mid- to long-term performance improvement. We also remain committed to our principle of returning at least 30% of EBITDA-CAPEX (earnings before interest, tax, depreciation, and amortization minus capital expenditures) to shareholders as part of our responsible management policy.

We sincerely appreciate your continued trust and support in Celltrion.

Thank you.

※ Tax Information Regarding the Bonus Issue

This bonus issue will be conducted using tax-exempt capital, so the newly issued shares themselves will not be taxed as dividend income. However, since treasury shares are excluded from the allocation, all shareholders will see an increase in ownership ratio post-issue, which may be subject to deemed dividend taxation under the relevant tax laws.

For shareholders holding fewer than 3,945 shares before the bonus issue, the deemed dividend from the ownership ratio increase is estimated to fall below the minimum tax threshold (KRW 1,000), and therefore will not be subject to separate income tax. However, if total financial income (including dividends and interest) exceeds KRW 20 million in 2025, the deemed dividend from this bonus issue will be added to the total taxable amount and may incur additional tax. (No additional tax applies if total financial income is below KRW 20 million.)

※ Celltrion resolved to conduct a stock bonus issue through a board resolution on May 26, 2025. In accordance with Article 176-2, Paragraph 2, Subparagraph 3 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, the company will not acquire any treasury shares between the date of the board resolution and the record date for the allocation of new shares (June 10, 2025). Accordingly, reflecting changes in the treasury stock acquisition plan, the number of new shares to be issued as previously disclosed on May 26 has been corrected from 8,477,626 shares to 8,494,384 shares (as disclosed on May 28).