REG - Samsung Electronics - Transaction with Affiliate Company

Samsung Electronics CoAnnouncement

28/07/2022 09:00

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RNS Number : 0668U  Samsung Electronics Co. Ld  28 July 2022

Transaction with Affiliate Company

 

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC" or the

"Company"), on July 28, 2022, announced that its Board of Directors has
authorized following

transactions with following affiliated companies.

 

1. Investment in the New Technology Investment Association (SVIC 57)

-     Investment in the New Technology Investment Association (SVIC 57),
established by Samsung Venture Investment Corporation (SVIC).

□ Major transaction terms

 Transaction date        August 2022
 Transaction value       KRW 148,500 million (to be made in cash)
 Purpose of transaction  Reinforcement of competitiveness in finished product businesses and
                         identification of industry-leading technologies
 Terms and conditions    * With the investment, SEC joins the New Technology Investment Association
                         (SVIC 57).

                         * The total amount of the Investment Association (KRW 150 billion) is
                         comprised of KRW 148.5 billion from SEC and KRW 1.5 billion from SVIC.

                         * The funds will be paid on an as-needed basis via investments over

                         the 7-year term of SVIC 57. Both SEC's join date and duration of

                         SVIC 57 are subject to change.

Other information:

- Number of Independent Directors present at the Board of Directors meeting: 4
(100% attendance)

- Attendance of Audit Committee: Y

 

2. Purchase of Insurance Policy from Samsung Fire & Marine Insurance

□ Major transaction terms

 Insurer                      Samsung Fire & Marine Insurance Co., Ltd.
 Application date             September 1, 2022
 Type of insurance            Package insurance
 Insurance premium            KRW 104.34 billion
 Insurance benefit            -
 Insurance coverage period    September 1, 2022-August 31, 2023 (12 months)
 Total insurance premium      KRW 104.34 billion
 Insurance coverage           Buildings, machinery, etc., in Samsung Electronics' various

                              business and factory sites located in Korea
 Method of insurance payment  Lump sum
 Interest rate (%)            -
 Purpose of transaction       To comprehensively insure against the risks and potential

                              losses from property damage and injury to persons, as well as

                              the suspension of operational activities, caused by fires,

                              explosions, natural disasters, etc., at Samsung Electronics'

                              various business and factory sites in Korea.

Other Information:

- Number of Independent Directors present at the Board of Directors meeting: 4
(100% attendance)

- Attendance of Audit Committee: Y

 

□ Major transaction terms

 Insurer                      Samsung Fire & Marine Insurance Co., Ltd.
 Application date             August 2022
 Type of insurance            Mobile device insurance
 Insurance premium            KRW 15,450 million
 Insurance benefit            -
 Insurance coverage period    1 year or 2 years from the application date
 Total insurance premium      KRW 15,450 million
 Insurance coverage           Smartphone liability (for models designated by SEC)
 Method of insurance payment  Installments in accordance with the application date
 Interest rate (%)            -
 Purpose of transaction       To comprehensively insure against the risks and potential losses caused by
                              unpredictable accidents associated with SEC's mobile devices

Other information:

- The application date refers to the date on which the Company purchases a
mobile device insurance

   policy, and the Company plans to complete the purchase in August or
September 2022.

- The total amount for insurance premium is an estimate, and such amount may
change in relation to

   the number of smartphones sold.

- Number of Independent Directors present at the Board of Directors Meeting: 4
(100% attendance)

- Attendance of Audit Committee: Y

 

3. Real estate lease agreement

□ Major transaction terms

 Owner of property       Samsung Electronics Co., Ltd.
 Lessee                  Samsung Display Co., Ltd.
 Lease period            August 1, 2022-July 31, 2024
 Transaction amount      KRW 16,554 million/year
 Purpose of transaction  Lease of land and building
 Terms and conditions    1. Deposit: None

                         2. Annual rental payment: KRW 16,554 million/year

                         - The annual rental payment is an average of appraisals calculated by multiple
                         assessment institutions, considering asset price, expected profit, among other
                         factors.

                         - The annual rental payment for the second year (August 1, 2023 to July 31,
                         2024) is calculated to be KRW 12,623 million due to reduction in leased area.

Other information:

- Number of Independent Directors present at the Board of Directors meeting: 4
(100% attendance)

- Attendance of Audit Committee: Y

 

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