Samsung Biologics (207940) Investor Presentation summary

Overview of the proposed spin-off

• Samsung Biologics will create Samsung Episholdings (SEH) to manage subsidiaries and pursue new investments, with SEH inheriting 100% equity in Samsung Bioepis.

• SBL will remain a CDMO, while SEH will focus on subsidiary management and new business investments.

• Spin-off ratio: SBL 0.6503913, SEH 0.3496087; SBL and SEH will have share capitals of KRW 115.7B and KRW 62.2B, respectively.

• Post spin-off, SBL will own 100% of Samsung Biologics America, and SEH will own 100% of Samsung Bioepis.

Rationale and expected benefits

• Spin-off addresses operational risks and client concerns over conflicts of interest between SBL's CDMO services and SBE's biosimilar development.

• Separation enables improved business stability, competitiveness, and independent governance for both entities.

• SBL will focus on pure-play CDMO growth, while SEH will drive new investments and unlock SBE's value.

Financial position and structure

• Pre spin-off: SBL assets KRW 13.3T, liabilities KRW 3.7T, equity KRW 9.6T.

• Post spin-off: SBL assets KRW 9.9T, equity KRW 6.2T; SEH assets KRW 3.4T, equity KRW 3.4T.

• Pro forma financials show clear separation of assets and liabilities between SBL and SEH.