REG - Samsung Electronics - Transactions with Affiliated Companies

Samsung Electronics CoAnnouncement

31/10/2023 07:30

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RNS Number : 8401R  Samsung Electronics Co. Ld  31 October 2023

Transaction with Affiliate Company

 

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on
October 31, 2023, announced that its Board of Directors ("BOD") has authorized
the following related-party transaction with an affiliated company.

 

1. Real estate lease agreement

 

 Owner of property       Samsung Electronics
 Lessee                  Samsung Display Co., Ltd.
 Lease period            August 1, 2022-July 31, 2024
 Transaction amount      KRW 15,692 million/year
 Purpose of transaction  Lease of land or building
 Terms and conditions    - Deposit: None

                         - Annual rental payment: KRW 15,692 million

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

                         - The annual rental payment is calculated to be KRW 16,554 million for the
                         first year (August 1, 2022 to July 31, 2023); and KRW 15,692 million for the
                         second year (August 1, 2023 to July 31, 2024).

                         - This is a correcting disclosure of the disclosure released on July 28, 2022,
                         as the annual rental payment for the second year prescribed herein has been
                         increased by 20% or more due to changes in the leased area.

 

2. Transaction with Samsung Display Co., Ltd

 

 Company  Samsung Display Co., Ltd
 Date     November 1, 2023
 Purpose  Grant of a non-exclusive license for the process technology for the
          development and manufacturing of OLEDoS owned by SEC.
 Amount   KRW 39.1 billion
 Other    -The above date refers to the contract date of a non-exclusive license
          agreement with Samsung Display Co., Ltd.

          -Regarding the end date of the agreement, the term for the grant of a
          non-exclusive license is perpetual.

          -The above amount presents the total amount for the grant of the license
          during the agreement term and it is expected to be paid within 30 days after
          signing the agreement.

 

 

 

3. Purchase of assets

 

 Transferee               Samsung Display Co., Ltd.
 Scheduled purchase date  November 1, 2023
 Purchased assets         Buildings and mechanical equipment owned by Samsung Display within SEC's
                          Cheonan Site
 Expected purchase price  KRW 10.5 billion
 Purpose of transfer      Secure land for the construction of supplementary production facilities within
                          the Cheonan Site
 Others                   - The scheduled purchased date above refers to the scheduled contract date,
                          and the transfer of ownership is scheduled to take place within 30 days after
                          signing the contract, subject to adjustments upon mutual agreement between
                          parties.

Other Information:

ž Number of Independent Directors present at the BOD meeting: 6 (100%)

ž Attendance of Audit Committee: Y

 

 

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