IR Notice


Dividend Policy Announcement


Announcement of Samsung Biologics' Dividend Policy

Samsung Biologics has been reviewing various shareholder-return policies to boost shareholder value. As a result, we held a board meeting on the 24th of January and reported the following to the board of directors;

- Cash dividend, equivalent to approximately 10% of Free Cash Flow* (FCF), will be considered after 2025, with due consideration of cash flow and the financial structure in each fiscal year. - With its total investment at the site tallying 1.74 trillion won, Plant 4 has been under construction since 2020 and is scheduled to be fully GMP ready in 2023. In 2022, additional investments of approximately 300 billion won in building a Multi-Modal Plant and 400 billion won in acquiring the land site for the Biocampus II will be made, receptively. Upon the completion of the acquisition of the Biocampus II land site, additional investments will be required for establishing more facilities, which is subject to change with its timing and the total expenditure to be determined in due course. - Cash flow is expected to show a temporary deficit until 2024 due to substantial investments in an effort to secure new growth drivers. After Plant 4 ramp up, revenue is expected to grow steeply, and a stable cash flow is expected from 2025, at which point we will start to consider a cash dividend. - Nonetheless, the dividend policy is subject to change depending upon future CAPEX plans and the market conditions, hence, the policy duration will be set to 3 years to improve transparency and predictability We will continue to keep our investors informed in case of any changes in the dividend policy. Thank you * Free Cash Flow (FCF, Consolidated Basis) = Operating Cash Flow (Cash generated from business operations) - CAPEX (Property. Plant. Equipment, etc.)