Samsung El.gds Regulatory News (SMSD)

Decision on Share Repurchase

10. Other Information to Consider:

- Shares denoted as "other" are preferred shares.

- In Item 2 above, the value of shares to be repurchased is based on the closing price on the day before the board resolution (February 17, 2025). The actual amount may change depending on future stock price movements.

 ※ KRW 56,000 per common share and KRW 45,750 per preferred share

-In Item 4, the expected holding period and purpose of repurchase, in accordance with the Board resolution on February 18, 2025, shares worth KRW 500 billion are to be acquired for the purpose of the stock-based compensation including employee incentives, etc. The remaining KRW 2.5 trillion is to be acquired for the purpose of stabilizing the stock price and enhancing shareholder value.

Further details, including timing of cancellation and the actual number of shares to be cancelled, will be disclosed following the resolution of the Board of Directors in the future.

* To enhance motivation for business performance and enhance shareholder value, the Company has decided to implement a stock-based compensation program (RSA) for executive compensation. Under this program, stock-based compensation will constitute 50% or more of the 2024 Overall Performance Incentive (OPI). The Company plans to allocate a portion of the repurchased shares, amounting to approximately KRW 500 billion, to the RSA program.

* Under the RSA framework, the number of treasury shares for each executive was determined in January 2025 based on individual selections. The final allocation will be confirmed one year later, considering the stock price at that time. Once granted, executives will be restricted from selling the shares for a period of one to two years, in accordance with the program's terms.

- In Item 8 above, all Audit Committee members are Independent Directors.

- The calculation method for Item 9 above is the smaller of: [③] and [the larger of ① and ②].

 ① 10% of the number of shares to be repurchased: 4,814,924 common; 663,698 preferred

 ② 25% of average daily transaction volume for one month ending the day before the date of the board resolution: 5,246,563 common; 319,492 preferred

 ③ 1% of total number of issued shares: 59,697,825 common; 8,228,867 preferred

- No shares were repurchased prior to the decision to repurchase shares.

- Limit on the amount of repurchased shares (Korean won)

- Holding status of treasury shares before purchase (number of shares)

* on-market direct purchase