Professional Documents
Culture Documents
※ Disclaimer
This document was disclosed voluntarily for foreign investors. The original Korean version of the
disclosure can be found on KIND(http://kind.krx.co.kr), DART(http://dart.fss.or.kr). If and when
there is any discrepancy between the English and Korean versions, the Korean text shall prevail.
Therefore, it is essential for the investors to consult the Korean text before making investment
decisions.
1. Company Overview
Listed - - - - -
Unlisted 1 13 - 14 1
Total 1 13 - 14 1
Subsidiary Reason
Transfer from joint venture to subsidiary
13
Newly consolidated by acquiring additional shares
- -
- -
No longer consolidated
- -
D. Establishment date
Samsung Biologics Co., Ltd. was established on April 22, 2011.
F. Status of SME
Samsung Biologics Co., Ltd. (hereinafter, Samsung Biologics or the Company) does not fall within small
and medium enterprises (SMEs) in accordance with Article 2 of the Framework Act of Small and Medium
Enterprises and Article 3 of the Enforcement Decree of the Framework Act on Small and Medium
Enterprises as of the date when the report is submitted.
G. Main business
The Company consists of two business segments: CDMO (Contract Development and Manufacturing
Organization) business; and biopharmaceutical development and commercialization business. The
CDMO division provides contract production and cell line process development services for
biopharmaceuticals, and the biopharmaceutical division engages in biopharmaceutical development
and commercialization. In the current period, revenue generated from CDMO product, services,
biopharmaceutical product development and commercialization product account for 80.8%, 6.4% and
12.8% of the total revenue respectively. By region, the Company has generated the total revenue from
the following regions: Europe – 66.7%, United States – 19.4%, Korea – 7.2%, and Others – 6.7%.
Refer to「II. Business Overview」for more details about the business.
H. Credit rating
Rating Definition
AAA An ‘AAA’ rating indicates the highest likelihood of interest and principal payment.
An ‘AA’ rating indicates very high likelihood of interest and principal payment. The likelihood may,
A
nevertheless, be slightly lower than is the case for the highest rating category (AAA).
An ‘A’ rating indicates high likelihood of interest and principal payment. The likelihood may,
B nevertheless, be more susceptible to changes in circumstances and in economic conditions than
is the case for higher rating category (AA).
A ‘BBB’ rating indicates moderate likelihood of interest and principal payment, but changes in
BBB circumstances and in economic conditions are more likely to impair this likelihood than is the case
for higher rating category (A).
A ‘BB’ rating indicates some uncertainty over the likelihood of interest and principal payment and
BB
speculative elements.
A ‘B’ rating indicates substantial uncertainty over the likelihood of interest and principal payment
B
and is considered more speculative than higher rating category (BB).
A ‘CCC’ rating indicates high risk of default and questionable likelihood of interest and principal
CCC
payment.
A ‘CC’ rating indicates very high risk of default and extremely low likelihood of interest and principal
CC
payment.
A ‘C’ rating indicates extremely high risk of default and lack of likelihood of interest and principal
C
payment.
Rating Definition
AA Capacity for timely payment is very strong, but somewhat less than 'AAA'
A Capacity for timely payment is strong, but somewhat susceptible to external changes in the future.
Capacity for timely payment is adequate, but more likely to be weakened by future market
BBB
changes.
BB Capacity for timely payment faces no immediate problems, but speculative in its future stability.
I. Whether the Company is listed (or registered or designated) and matters related to special
listed companies
Listing Date listed Subject to regulations for
Special listed company
(or registered or designated) (or registered or designated) special exception companies
Changes in the place of principal office since the establishment of the Company are as follows :
Date Address Remarks
2011.04.22 104B, Pilot Plant, 7-50, Songdo-dong, Yeonsu-gu, Incheon, South Korea Establishment
Changed to
125, Cheomdan-daero, Yeonsu-gu, Incheon, South Korea road name-
2014.01.07
(Songdo-dong, Samsung Biologics Co., Ltd.) based
address
Changed to
300, Songdo Bio-daero, Yeonsu-gu, Incheon, South Korea road name-
2016.07.04
(Songdo-dong, Samsung Biologics Co., Ltd.) based
address
※ On December 16, 2020, Executive director John Rim was appointed as the new Chief Executive
Officer and Kim Taehan resigned from his position of Chief Executive Director during the 10 th board of
director’s meeting.
Type of Appointment
Date shareholder Expiry or Dismissal
meeting Initial Extension
Executive director
Kim Dongjoong
Annual
Independent director Independent director Independent director
2019.03.22 General
Heo Geunnyeong Jeong Seokwoo Yoon Byungchul
Meeting
Independent director
Kwon Soonjo
Executive director
Annual John Rim Executive director
2020.03.20 General -
Independent director Kim Taehan
Meeting
Eunice Kim
E. Details and results in case the Company went through or currently goes through
compositions, reorganization proceedings, and other equivalents
- Not applicable
The transfer of assets is related to the report on major issues on June 29, 2018 (decision to transfer
shares and equity securities of other corporations). On November 7, 2018, the transfer of shares and
payment were completed, and the transaction was closed.
Category Dates
For details on the acquisition of shares, please refer to the Report on Major Matters (Decision to acquire
stocks and investment securities of other corporations) first published on January 28, 2022.
Category Dates
[Samsung Biologics]
Date Details
2011.04.22 Established Samsung Biologics Co., Ltd.
2011.04.28 Signed a lease agreement for the plant site in Songdo
2011.05.06 Started the construction of Songdo Plant 1
2012.02.28 Established Samsung Bioepis Co., Ltd.
2013.07.18 Signed a contract with BMS regarding DS manufacturing
2013.09.23 Started the construction of Songdo Plant 2
2013.10.18 Signed a contract with Roche regarding DS manufacturing
Signed a contract with BMS regarding DS manufacturing enhancement and
2014.04.16
DP manufacturing
2014.06.23 Established a joint venture, Archigen Biotech Ltd.
Changed the largest shareholder’s company name
2014.07.04
(Samsung Everland Inc. → Cheil Industries Inc.)
Changed the largest shareholders (Before: Samsung Electronics Co., Ltd. 46.79%, Cheil
Industries Inc. 46.79%, Samsung C&T Corporation 4.25%
2015.09.02
→ After: Samsung C&T Corporation 51.04%, Samsung Electronics Co., Ltd. 46.79%)
2015.11.12 Started the construction of Songdo Plant 3
2015.11.30 Obtained an approval of Songdo Plant 1’s manufacturing license from FDA
(no observation)
[Samsung Bioepis]
Date Details
2012.02.28 Established Samsung Bioepis Co., Ltd.
2013.02.18 Signed the marketing partnership contract with Merck
2013.12.13 Signed the marketing partnership contract with Biogen
2015.09.07 Sales approval of ETOLOCE(Enbrel Biosimilar) in Korea
2015.12.04 Sales approval of REMALOCE (Remicade Biosimilar) in Korea
2016.01.14 Sales approval of BENEPALI(Enbrel Biosimilar) in Europe
2016.05.26 Sales approval of FLIXABI(Remicade Biosimilar) in Europe
2017.04.21 Sales approval of Renflexis(Remicade Biosimilar) in US
2017.08.24 Sales approval of IMRALDI(Humira Biosimilar) in Europe
2017.09.20 Sales approval of ADALLOCE(Humira Biosimilar) in Korea
2017.11.08 Sales approval of SAMFENET(Herceptin Biosimilar) in Korea
2017.11.15 Sales approval of ONTRUZANT(Herceptin Biosimilar) in Europe
2019.01.18 Sales approval of ONTRUZANT(Herceptin Biosimilar) in USA
2019.04.25 Approval of ETICOVO(Enbrel Biosimilar) in USA
2019.07.23 Sales approval of HADLIMA(Humira Biosimilar) in USA
2019.11.05 Signed additional marketing partnership contract with Biogen
2019.12.19 Acquired the WHO PQ certification of ONTRUZANT(Herceptin Biosimilar)
2020.11.03 Awarded the global generic and biosimilar award(Leading company of the year)
2020.11.19 Awarded the excellent product design award(Brand design Ministerial Award)
2021.01.25 Moved into new building in Songdo
2021.03.11 Sales approval of ONBEVZITM(Avastin Biosimilar) in Korea
2021.04.22 Awarded the iF design award in communication and packaging part
2021.08.18 Sales approval of BYOOVIZ(Lucentiz Biosimilar) in Europe
2021.09.17 Sales approval of BYOOVIZ(Lucentiz Biosimilar) in USA
2021.12.21 Issued the first Sustainability Report
2022.05.13 Sales approval of AMELIVU(Lucentiz Biosimilar) in Korea
3. Changes in Paid-in Capital
acquisition of construction-in-progress and securities of other entity. The Company issued additional
5,009,000 shares of common stock totaling 71,174,000 shares of common stock issued by the end of
1H.
4. Stock Information
Type of stocks
Classification Note
Common Preferred Total
1. Capital reduction - - - -
2. Cancellation - - - -
3. Redemption - - - -
4. Other - - - -
Ⅴ. Treasury shares - - - -
B. Treasury Shares
- Not applicable
5. Articles of Incorporation
Amendment record
1. Business Overview
The Company is organized into two segments consisting of CDMO and biopharmaceutical development
and commercialization businesses. The CDMO business provides clients with the service of
manufacturing biopharmaceuticals and development of cell line, and the biopharmaceutical
development and commercialization business focuses on development and commercialization of
biopharmaceuticals. The Company acquired an additional 10,341,852 shares of Samsung Bioepis Co.,
Ltd to secure a 100% stake in the company. As a result, biopharmaceutical development and
commercialization of Samsung Bioepis Co., Ltd. was added as a separate business segment.
The Company achieved annual sales of 1.568 trillion won in 2021, and sales of biopharmaceuticals
were 1.442 trillion won in product sales and 126 billion won in service revenue from CDMO business
segment. From the consolidated sales of 1.163 trillion won in the half year of 2022, sales of CDMO
goods, etc. were 938.9 billion won, service sales were 74 billion won, and biopharmaceutical
development and commercialization segment product sales were 149.4 billion won.
(1) CDMO
Samsung Biologics offers a wide range of services focusing on the development and commercialization
of biosimilar and CMO service of manufacturing biopharmaceuticals and development of cell line,
manufacturing process, characterization, and analysis method for pipelines ranging from cell line
development to early stage clinical phase.
The Company operates commercial manufacturing capacity of 360,000L (Plant 1 – 30,000L, Plant 2 –
150,000L, Plant 3 – 180,000L) and clinical manufacturing capacity of 4,000L in Incheon Free Economy
Zone (Songdo region). This is the largest manufacturing capacity in the global CMO industry. The
Company established an overseas subsidiary, Samsung Biologics America, Inc. in the United States to
secure stable sales growth and overseas expansion. In addition, the Company achieved a fruitful
performance in both CDO and Drug Product(DP) businesses, remarked by its DP production of
Moderna’s mRNA vaccine. Meanwhile, the company’s subsidiary, Samsung Bioepis is a
biopharmaceuticals Research & Development firm that is working on the development and
commercialization of biosimilars.
In 2022, the global biopharmaceutical market is valued at USD 359 billion, which accounts for 29.7%
of the entire pharmaceutical market. The biopharmaceutical market is expected to increase with an
average growth rate of 10.6% by 2026. The rapid growth is expected to boost the expansion of the
overall pharmaceutical market. In addition, the recent trend shows the greater reliance on CMO
companies by global pharmaceutical companies (Evaluate Pharma, May 2022). The CDMO industry is
expected to increase from USD 14.3 billion in 2022 to USD 20.3 billion in 2026 with an average growth
rate of 10.1%, based on the following factors (Frost&Sullivan, Jul 2021).
The Company is a contract manufacturer specializing in mammalian cell-based antibody drugs, which
is a major component of the biopharmaceutical market. The market is oligopolistic, dominated by a few
players with large-scale manufacturing facilities. As of 2022, there are three companies with a global
production capacity of over 300,000L production: Korea-based Samsung Biologics, Switzerland-based
Lonza, and Germany-based Boehringer Ingelheim. The Company runs 364,000L production facilities
as of now and plans to concrete its leading position as it completes the construction of Plant 4 with
256,000L capacity by 2023.
The Company is currently widening the scope of business to CDO services, mRNA, and cell/gene
therapy manufacturing to transform into a global biopharmaceutical company. The CDO business
provides cell line and process development and characterization services for small and medium-size
biotechs, which do not have their own development facilities. The Company launched a high-performing
cell line ‘S-CHOice’, which delivers high productivity and viability, and ‘S-Cellerate’, which is a platform
that innovatively shortens the development period through a standardized process for each
development stage. Furthermore, the Company opened its first global CDO R&D center in the renowned
San Francisco Biopharma Cluster in October 2020 and currently plans to widen the scope of the market
to Boston, Europe, and China.
The Company has implemented mRNA production capacity within its existing manufacturing plant,
which is cGMP ready in April 2022. Additionally, the Company is under review for various options
including construction and M&A, considering overall technology trends, marketability and profitability
related to cell and gene therapy.
The revenue in the first half of 2022 was 1.163 trillion won with an operating profit of 346.1 billion won.
(*1) The Company acquired an additional 10,341,852 shares of Samsung Bioepis Co., Ltd to secure a 100% stake in the company.
As a result, biopharmaceutical development and commercialization of Samsung Bioepis Co., Ltd. was added as separate sales
segment.
(*2) Operating profit and loss excluding the impact of amortization on the fair value of identifiable assets due to the business
combination for biopharmaceutical development and commercialization is 30 billion won. The operating profit or loss is the amount
calculated after the biopharmaceutical development and commercialization sector was incorporated into the company.
A. Major products
(Unit: KRW Bil)
Biopharmaceutical
development and
commercialization Goods Biosimilar 149.4 12.8% - - - -
(*1)
(1) CDMO
The selling price of the product to be produced by the Company is adjusted according to the ratio of
reflecting the CPI (Consumer Price Index) announced every year to the initial sales price determined
under the contract with the customer, or it may be adjusted according to the terms of the contract, such
as increasing by the fixed ratio stated in the contract
The Company calculates operating rate by separating actual working time from non-working time of key
production facilities, where the annual production capability is calculated by considering the Slowdown
and Product Changeover period per Drug Substance production plant.
(Unit: batch)
Note 1) The Company is exempted from paying rental fees as the Company satisfied the requirements for rental fee exemption
in accordance with the Ordinance of Common Property Management of Incheon Metropolitan City by signing a lease
agreement with Incheon Metropolitan City.
※ Fair value is excluded as an objective estimation for major tangible assets is difficult.
※ The manufacturing facilities status of 1H 2022 is based on consolidated basis in accordance with K-IFRS.
(2) Investments
(Unit: KRW Bil)
4. Sales
A. Sales performance
Biopharmaceutical
development and
commercialization Goods Biosimilar 149.4 12.8% - - - -
(*1)
B. Sales channel
(1) CDMO
The most important thing for Samsung Biologics’s sales activities is to sign contracts with customers
since the CMO business in which the Company is engaged is a contract-based industry. It usually takes
6~12 months to win an order (from the date when a customer’s request for proposal was received until
the date when a contract is concluded), and is implemented as follows :
[Order-winning process]
Category Details
• Inspect the status of customers (organization, number of products,
Discover a
Contact the clinical test progress, capacity, etc.)
potential
customer • Contact a customer when participating in exhibitions and introduce
customer
CMO services
Request for Meeting of • Email, telephone, visit and meeting, etc.
the persons in charge • Take the minutes of a meeting
customer’s Check the volume • Sign a confidential agreement, provide corporate profile data (incl.
CMO(RFP) to order capacity), attract to visit the Songdo site
• Review related divisions of each field
• Financial risk: review differentiated batch prices
Review risks
• Legal risk: existing products ordered, noncompetitive review with
Samsung Biologics’ products
Submit a
• Suggest contract terms in which the customer’s conditions for
proposal
manufacturing process are reflected
Review terms and
• Consider conditions including contract period, time available to
conditions
manufacture, price, scope of services, minimum volume
guaranteed, capacity reserve, etc.
Select candidate
• A customer selects 2~3 candidate CMOs
CMOs
Select a CMO
Select a preferred
• A customer selects a preferred CMO through final evaluation
CMO
• Review related divisions of each field
• Financial risk: minimum volume guaranteed/reserve volume,
Review risks
service sales item, etc.
• Legal risk: liability scope, noncompetitive clauses, etc.
Consult on
Consult on basic • Negotiate on and adjust major conditions
contract terms
contract terms • Prepare MOU and LOI
Consult on
detailed contract • Consult on conditions for master service agreement
terms
Exchange a final
Win a contract • Develop a final contract
contract
Following these procedures, the Company recognizes sales at the point of quality release (QR) by the
customer for the products manufactured, and delivers the customer’s inventory stored in the Company’s
warehouse to a location designated by the customer (generally a customer’s carrier) in accordance with
the contract. Meanwhile, the Company does not have separate sales channels or agencies.
Established partnerships with global or national pharmaceutical companies, and sells products to
wholesalers/hospitals by country through partnership.
② Company → Wholesale/Hospital
Products are sold to wholesalers or hospitals in some European countries through direct bidding or
contract.
(1) CDMO
The sales method and conditions for biopharmaceutical manufactured by the Company are separately
determined by a contract with the customer. According to the contract, annual minimum volume of
production is determined, and the volume requested for PO by the customer is manufactured and
delivered to the designated location. Sales recognition and billing are implemented at the time when
the customer’s quality approval is obtained for the products manufactured, and the payment is collected
within 30~60 days after billing.
D. Sales strategy
(1) CDMO
The Company provides company information such as cutting-edge manufacturing facilities,
technological competence, and excellent manpower through various methods including homepage,
advertisements, press releases, overseas exhibitions/conferences, company presentations, and virtual
due diligence and exhibition hall while striving to raise its profile worldwide as a bio-company of
Samsung Group. Based on these efforts, the Company has participated every year in the BioPhorum,
a conference of executives from global biopharmaceutical manufacturers, since joining in 2012.
The Company will make new contracts and expand existing contracts by constantly communicating
about the Company’s production capacity, facility expansion progress, and future plans and by
maintaining relationships with existing/potential customers. The Company also leads strategic sales
activities by actively participating in various inner circle meetings to identify demand for
biopharmaceutical production and competitors’ production plans.
In addition, we are expanding our customers from large pharmaceutical companies to small and
medium-sized biotech companies, and to increase orders, we continue to strengthen our marketing
capabilities and expand our global network. Besides, we are enhancing our potential customers'
confidence in our production and quality control capabilities through thorough track record management.
E. Sales condition
Initial
Total
Business commercial Delivered Order
Item Deadline Case amount of
Segment production amount backlog
contracts
year
Amount
7,944 3,703 4,241
Minimum Take (USD Mil)
or Pay Production
~2031 34,098,000 16,310,000 17,788,000
Antibody (Liter)
CDMO 2015 *Subject to
drugs each contract Amount
Expected demand 12,603 3,703 8,900
(USD Mil)
when the customers
develop the productsProduction
50,572,000 16,310,000 34,262,000
(Liter)
Note 1) Total contract amounts may also increase after the consultation depending on the increase in customers’ demands.
Note 2) Total contract amounts above exclude raw material revenue from raw materials and supplies that have been put into
production and service revenue from production process improvements and additional services such as quality analysis.
The Company’s risk management policies are established to identify and analyze the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and
the Company’s activities. The Company, through its training and management standards and
procedures, aims to maintain a disciplined and constructive control environment in which all employees
understand their roles and obligations. The Board of Directors oversees how management monitors
compliance with the Company’s risk management policies and procedures and reviews the adequacy
of the risk management framework in relation to the risks faced by the Company.
B. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations and arises principally from the Company’s receivables
from customers. The carrying amount of financial assets represents the maximum credit exposure. The
maximum exposures to credit risk at the end of 1H 2022 and 2021 are as follows:
(Unit: KRW Thousand)
C. Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities which are settled by delivering cash or other financial assets. The Company’s
approach to managing liquidity is to ensure, as much as possible, that it will always have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company’s reputation.
The ultimate responsibility for liquidity risk management remains with the Board of Directors, which
establishes fundamental policies to adequately manage short-term, medium- and long-term financing
and liquidity management regulations. To maintain adequate liquidity, the Company manages liquidity
risk by periodically forecasting and adjusting its capital balance.
Contractual maturity dates of financial liabilities as of the 1H 2022 and 2021 are as follows. The amount
includes interest paid and excludes the impact of netting agreements. The Company does not anticipate
that the cash flow included in the maturity analysis could occur significantly earlier or at different
amounts.
(1) End of 1H 2022
The Company is exposed to currency risk on sales, purchases, and borrowings. The currencies in which
these transactions primarily are denominated are USD and so forth. The Company establishes a plan
to manage currency risk through currency forwards and so forth, if considered necessary.
(1) Exposure to currency risk
The Company’s level of exposure to foreign currency risk is as follows :
(Unit: KRW Thousand)
Assets:
Cashable
161,736,471 63,456 - 3,123,611 199,130 2,609 - - -
asset
Short-term
financial 12.929.000 - - - - - - - --
instruments
Trade and
other 591,810,508 1,354,702 - 4,613,373 3,305,802 320,350,462 100,535 - 608,143
receivables
Contract
33,462,946 - - - - 27,999,271 - - -
asset
Liability:
Borrowings
181,006,000 - - - - 11,855,000 - - -
(*)
Trade and
other 1,550,960,747 24,605,150 3,267,499 1,314,383 10,498,550 4,839,226 2,362,327 2,001 142,919
payables
Subtotal 1,731,966,747 24,605,150 3,267,499 1,314,383 10,498,550 16,694,226 2,362,327 2,001 142,919
Total (932,027,822) (23,186,992) (3,267,499) (3,298,990) (7,192,748) 331,658,116 (2,261,792) (2,001) 465,224
(*) Swap-covered borrowings are excluded as they are not exposed to currency risk.
1H 2022 2021
Description
Average End Average End
USD 1,232.94 1,292.90 1,144.42 1,185.50
EUR 1,346.94 1,350.05 1,352.79 1,342.34
JPY(100¥) 1,002.94 946.45 1,041.45 1,030.24
GBP 1,599.65 1,567.32 1,573.96 1,600.25
The Company is exposed to interest rate risk because it raised funds with interest paid at a variable
rate. If the interest rate changes by 0.5% as of the current and previous quarters, the effect of the
change in the interest rate on the income before income tax is as follows :
(Unit: KRW Thousand)
1H 2022 1H 2021
Description
Increase of 0.5% Decrease of 0.5% Increase of 0.5% Decrease of 0.5%
Increase(Decrease) in
(1,640,076) 1,640,076 (664,493) 664,493
Interest expense
F. Capital Management
The Company’s capital management is for the purpose of maximizing the shareholders’ interest by
maintaining an optimal capital structure. To achieve optimal capital structure, the Company may improve
its financial structure by monitoring financial ratios, such as the debt-to-equity ratio.
[Samsung Biologics]
The Company has established contracts for financial derivatives for foreign currency borrowings for
the purpose of hedging exchange rate risk of foreign currency receivables/debts and interest rate, and
the details are listed below.
Currency
USD Libor(3M)
Trading interest Hana bank 2018.05.31 2023.05.31 USD KRW 1,080 3.70
30,000,000 + 1.70
swap
Currency
USD Libor(3M)
Trading interest Woori bank 2021.08.30 2024.08.30 USD KRW 1,164 2.15
30,000,000 + 1.20
swap
Interest rate(%)
Financial Contract Contract Maturity
Classification Category
institution Amount Date Date
Received Paid
(3) Derivative liabilities related to the acquisition of investment securities by other corporations
(conditional consideration)
The Company entered in an agreement to acquire 10,341,852 shares of Samsung Bioepis Co., Ltd.
owned by Biogen Therapeutics Inc. on January 28, 2022. The Company will determine whether the
conditions for payment of contingent considerations are satisfied by year according to the sales
performance of the investee company through the seller, and then decide the size of the contingent
consideration during 2027. The nominal amount that the Company is likely to pay in the future in
accordance with the above arrangement is in the range of USD 0 - 50,000,000. At the acquisition date,
the fair value of the contingent consideration was estimated as 20,541,985 thousand won using the
option valuation model.
[Samsung Bioepis]
The Company has established contracts for financial derivatives for foreign currency borrowings for the
purpose of hedging exchange rate risk of foreign currency receivables/debts and interest rate, and the
details are listed below.
Currency
USD Libor(3M)
Trading interest Hana bank 2020.12.17 2023.12.14 USD KRW 1,089 2.40
30,000,000 + 1.80
swap
Interest rate(%)
Financial Contract Contract Maturity
Classification Category
institution Amount Date Date
Received Paid
A. License-Out Contracts
- Not applicable
B. License-In Contracts
- Not applicable
C. Sales Contracts
[Samsung Biologics]
As of the date of preparation of the disclosure document, the current status of major sales contracts
signed by the Company are as follows.
(Unit: USD Mil)
Biopharm Eli Lilly Kinsale Limited CMO 2022.03.28 2029.12.31 92.0 Cash -
Letter of
Biopharm Europe based pharma CMO 2022.04.25 - 124.1 Cash
Intent
Letter of
Biopharm Novartis Pharma AG CMO 2022.06.04 - 81.0 Cash
Intent
[Samsung Bioepis]
D. Other Contracts
[Samsung Biologics]
E. R&D Activities
[Samsung Biologics]
The Company has R&D organizations as follows: Technology Support Center, Contract Development
Organization R&D Team, Advanced Research Team, and Samsung Biologics America R&D Team.
These organizations provide technical support for clients’ manufacturing production and R&D services
for cell line development.
[Job description]
Category Details
[Samsung Bioepis]
Samsung Bioepis R&D is carried out in the development headquarters (CD team, PD team, QE team,
etc.) and production headquarters, and is in charge of cell line and process research/development,
clinical medicine-related activities, and production-related technical support.
[Job description]
Category Details
[Samsung Biologics]
As of the reporting date, the Company has 430 staff members assigned to research and development
activities, with 58 holding doctorate degrees and 179 holding master’s degrees. The details are as
follows :
(Unit: person)
[Samsung Bioepis]
As of the reporting date, the Company has 500 staff members assigned to research and development
activities, with 98 holding doctorate degrees and 194 holding master’s degrees. The details are as
follows :
(Unit: person)
[Samsung Biologics]
The details of the Company’s key R&D personnel are as follows:
Name Position Function Career R&D Performance
[Theses]
- Bioreactor Operation for Transgenic
Nicotiana tabacum Cell Cultures and
Continuous Production of Recombinant
Human Granulocyte-Macrophage
- MSAT Business Unit Leader,
Colony-Stimulating Factor by Perfusion
Technology Samsung Biologics
Culture (2004, Enzyme Microb. Technol.)
Lee Vice Support - Global Management Leader,
- Effects of Pluronic F-68 on Cell Growth
Sangyoon President Center Celltrion
of Digitalis lanata in Aqueous Two-Phase
Leader - Doctor of Biotechnology,
Systems (2004, J. Microbiol. Biotechnol.)
Inha University
- Perfusion Cultivation of Transgenic
Nicotiana tabacum Suspensions in
Bioreactor for Recombinant Protein
Production (2006, J. Microbiol.
Biotechnol.)
Name Position Function Career R&D Performance
[Theses]
- A phase II trial of the pan-HER inhibitor
poziotinib, in patients with HER2-positive
metastatic breast cancer who had
received at least two prior HER2-
directed regimens: results of the
NOV120101-203 trial (2018,
International Journal of Cancer)
- CDO Business Unit Leader, - Once-Weekly Efpeglenatide Dose-
Samsung Biologics Range Effects on Glycemic Control and
- CEO, Lumebio Body Weight in Patients With Type 2
- Clinical Research & Development Diabetes on Metformin or Drug Naive,
Vice President, Referenced to Liraglutide (2019,
Head of
Kang Vice Hanmi Pharmaceutical Company Diabetes Care)
CDO
Jahoon President - Senior Clinical Project Manager, - Body weight management and safety
Division
Novartis with efpeglenatide in adults without
- Clinical Research Associate, diabetes: A phase II randomized study.
Chong Kun Dang (2019, Diabetes Obes Metab.)
- Doctor of Pharmacy, Sookmyung - Efficacy and safety of oncemonthly
Women’s University efpeglenatide in patients with type 2
diabetes: Results of a phase 2
placebocontrolled, 16-week randomized
dose-finding study (2020, Diabetes
Obes Metab.)
- Pharmacokinetic and dose-finding
studies on efpeglenatide in patients with
type 2 diabetes. Diabetes (2020, Obes
Metab.)
[Theses]
- Phytosphingosine and C2-
- USP2 Part Leader, phytoceramide induce cell death and
CDO
Samsung Biologics inhibit carbachol- stimulated
Lee Vice R&D
- Yuhan Corporation phospholipase D activation in Chinese
Jaesun President Team
- Doctor of Biochemistry, hamster ovary cells expressing the
Leader
Chungbuk National University Caenorhabditis elegans muscarinic
acetylcholine receptor (2001, FEBS
letters)
[Samsung Bioepis]
The details of the Company’s key R&D personnel are as follows:
Name Position Function Career R&D Performance
[Theses]
- Samsung Bioepis QE Team Leader - Clb-independent degradation of Met:
Executive Development - Samsung Electronics Advanced way to avoid agonism of bivalent Met
Kim
Vice Division Institute of Technology targeting antibody (2012, Oncogene)
Kyungah
President Leader - Doctor of Toxcology, The Johns - Mitogenic influence of R-Spondin 1
Hopkins University Protein on the Intestinal Epithelium
Neurotrophin (2005, Science)
[Theses]
- Factor Xia-specific IgG and a reversal
agent to probe intrinsic pathway function
in thrombosis and hemostasis (2016,
- Catalent Pharma
Kim Vice CD Team Science Translational Medicine)
- Pfizer
YunCheol President Leader - Inhibitors of My D88-dependent
- Doctor of Microbiology, UCLA
proinflamatory cytokine production
identified utilizing a novel RNA
interference screening approach (2010,
Plos One)
[Theses]
- Real-time monitoring of glycerol and
- Molecular Templates methanol to enhance antibody
Kim Vice PD Team - Merck production in industrial Pichia pastoris
Sehoon President Leader - Doctor of Chemical Engineering, bioprocesses (2015, Biocherrical
Texas A&M University Engineering Journal)
- Inhibition of prostate cancer osteoblastic
progression with VEGF121/rGel, a
Name Position Function Career R&D Performance
single agent targeting osteoblasts,
osteoclasts, and tumor neovasculature
(2011, Clin Cancer Res)
F. R&D Expenses
G. R&D Performance
[Samsung Biologics]
[Samsung Bioepis]
Current status
Research
Type Product Application Approval Remarks
start date Phase(Country)
date
New Partnership
SB26 Acute pancreatitis 2017 Phase I(US) 2018
medicine with Takeda
Paroxysmal nocturnal Phase III Self-
SB12 2014 2019
hemoglobinura (Korea, EU, etc) development
Neovascular age-related
macular degeneration,
Phase III Self-
SB15 Macular Edema Following 2015 2020
(Korea, EU) development
Retinal Vein Occlusion,
Diabetic macular edema
Biosimilar Phase III Self-
SB16 Osteoporosis 2015 2020
(Korea, EU) development
Self-
Plaque psoriasis Phase I(EU) 2021
development
Psoriatic arthritis,
SB17 2015
Crohn's disease Phase III Self-
2021
Ulcerative colitis, (Korea, EU) development
Pediatric plaque psoriasis
※ For detailed information, refer to 'Table-4, R&D Performance(Details)'
7. Other Information
Pharmaceutical manufacturer is under strict government regulation throughout all phases (pre-clinical
phase, clinical phase, IND approval, production and distribution, etc.) due to their nature of providing
products which bring significant impact on human lives.
Laws Details
- Regulate overall matters concerning medicine manufacturing business such as quality
control and manufacturer designation
Pharmaceutical Affairs
- Obtain a manufacturing license according to the Act
Act
- Impose administrative measures (revocation of license) or criminal punishments
(imprisonment or punishment of a fine)
Unfair Competition
and Prevention and
- Regulate the act of unjustifiably using or disclosing trade secrets of clients
Trade Secret
Protection Act
Act on the
Registration and - Regulate the registration, evaluation, and management of chemical substances that are
Evaluation, Etc. of not controlled as drug and quasi-drug by the Pharmaceutical Affairs Act
Chemical Substances, - Registration and evaluation requires cost and time to import the drug substances that fall
Toxic Chemicals under chemical substances subject to the Act
Control Act
Transboundary
Movement, Etc. of - Inspect the risks posed by living modified organisms
Living Modified - Regulate the import of living modified organisms and registration of the research facility
Organisms Act
- Regulate unfair trading practices and unfair collective practices across the entire business
area including winning an order for CDMO project, building manufacturing facilities, and
Fair Trade Act
purchasing materials
- Impose corrective measures, penalty, fine, etc. if related matters are violated
[Samsung Biologics]
During the first half of 2020, Samsung Biologics launched its proprietary cell line development platform
S-CHOice. As of the end of 2021, The brand name S-CHOice has officially obtained its trademarks in
six countries (Korea, US, EU, UK, China, and Japan). In addition, S-Cellerate, a CDO platform brand
that compiles our accumulated know-how, expertise, and innovative technology across all areas of
consignment development service, was completed the registration of domestic trademarks in December
2021. The Company completed the trademark registration of the slogan Driven. For Life. in South Korea
and Madrid as of the end of 2021. In addition, the Company strives to secure intellectual property/
trademark rights, including related patent and trademark rights, through continuous research
development related to biopharmaceutical manufacturing.
[Samsung Bioepis]
As of the filing date of the disclosure document, Samsung Bioepis has 47 registered trademarks in
Korea, including Samfenet, Remaloce, Etoloce, and Onbevezy, and 145 international trademarks in
relation to the products launched by Samsung Bioepis. In addition, the Company secured a number of
related patents through the development of biopharmaceuticals, and are striving to secure various
intellectual property rights through continuous R&D.
C. Environmental Regulations
With an environmental policy placing environmental contaminant reduction and green values at the top
of its priorities, the Company commits itself to do all it can to prevent undesired environmental events
and make utmost efforts to lead the sustainable future.
To put this into practice, the Company strives to achieve compliance with environmental regulations and
reduce contaminant generation in addition to actively being engaged in chemical accident prevention
by implementing a life cycle management system for all chemicals handled in its business sites. In
addition, the Company follows regulatory requirements for contaminant emission standards, reports the
amount of greenhouse-gas emission and energy usage and transparently discloses relevant
information to its stakeholders in order to meet the government’s low-carbon growth policies and
responses to climate change.
(Business site management, compliance with environmental regulations and contaminant reduction)
The Company has installed and is operating various facilities for water pollution prevention, air pollution
prevention, waste storage, noise control, etc. to minimize emission of contaminants generated from
biomedicine manufacturing processes so that impact on the surrounding social environment can be
minimized. For business site environment management, regular self-inspections in addition to
management and supervision of relevant authorities have been carried out. As such, the Company’s
excellent environment control capability was acknowledged by being selected as the Best Company for
Environment Management by the City of Incheon three times, in 2015, 2018 and 2021.
The Company discloses transparent information on environmental emission performance and operational
status each year and is making efforts for regulatory compliance and contaminant reduction through
continued investment.
Integrated Chemical
- The Company is making efforts to prevent chemical accidents across the
Substance
Company by managing the lifecycle (entire process) of chemical
Management
substances using the chemical substance management system.
System
Greenhouse-gas emission and energy consumption for the recent five years are as follows :
Annual Greenhouse Gas Emissions (ton) Annual Energy Consumption (TJ)
Year
Direct Indirect Total Gas Electricity Steam Total
※ The subjects are our plant, shuttle bus, rental building, etc.
※ The data provided above is submitted to the “National Greenhouse Gas Management System.”
※ Emissions and energy consumption may change depending on the verification results of external verification agencies.
※ Refer to H. Green management in 4. Subsequent events under XI. Other Information for details.
D. Industry Overview
[Samsung Biologics]
Blockbuster biopharmaceuticals released around the year 2000 (immunosuppressant drugs, anticancer
drugs, antidiabetic drugs, etc.) still show a high level of sales growth, and new promising antibody drugs
for hyperlipidemia, Alzheimer’s disease, and atopic dermatitis along with immune checkpoint inhibitors
continue to be released.
2) Expansion of Production Outsourcing by Global Biopharma companies
Pharmaceutical companies are expanding the areas of production outsourcing to specialized CMOs
where massive capital investments are required to minimize the uncertainty in marketing authorization
and sales forecasting of drugs. This market change gives a new opportunity to CMOs.
Global CDMO companies are aiming for a one-stop shop model that can provide end-to-end services
to reduce pharmaceutical companies' development to production, clinical development to
commercialization needs, and complexity of a single project.
Recently, regulatory authorities across the world have strongly recommended pharmaceutical
companies to secure a source for stable drug production. The U.S. Food and Drug Administration (FDA)
requested pharmaceutical companies to establish a contingency plan, believing that supply stability
cannot be guaranteed in case the drug is manufactured in a single site. Accordingly, pharmaceutical
companies are making use of CMOs to run multiple manufacturers for a single drug.
In 2022, the global biopharmaceutical market is valued at USD 359 billion, which accounts for 29.7%
of the entire pharmaceutical market. The market is expected to increase with an average growth rate of
10.6% in 2026, boosting the growth of the overall pharmaceutical industry.
[Samsung Bioepis]
E. Competition Status
[Samsung Biologics]
The Company has emerged as a global bio CMO based on production facilities by securing a total
capacity of 364,000 liters with 360,000L (Plant 1 – 30,000L, Plant 2 – 150,000L, Plant 3 – 180,000L) of
commercial production facilities and 4,000L of clinical production facilities in Songdo Free Economic
Zone (Songdo District) in Incheon. As of 2022, competitors with similar capacity of more than 300,000
liters include Switzerland-based Lonza and Germany -based Boehringer Ingelheim. In addition, China-
based Wuxi Biologics and US-based Fujifilm diosynth are aggressively expanding capacity both
domestically and internationally.
[Samsung Bioepis]
The Company's main competitors include Pfizer and Amgen (US), Sandoz (Switzerland) and Celltrion
(Korea). The Company competes with other biosimilars in major countries such as US and Europe
against 3 types from Pfizer (Remicade, Herceptin, Avastin), 4 types from Amgen (Humira, Herceptin,
Avastin, Remicade), 3 types from Sandoz (Remicade, Enbrel, Humira), 3 types from Celltrion (Humira,
Remicade, Herceptin).
F. Competitiveness
[Samsung Biologics]
[Samsung Bioepis]
Since the establishment, the Company released 6 types of biosimilar (Remicade, Herceptin, Enbrel,
Humira, Avastin, and Lucentis similars). In this process, the Company shortened the development
period compared to other companies by developing a process that satisfies the quality requirements of
the permitting agency and conducted clinical trials efficiently. In addition, as a result of securing cost
competitiveness by developing process technology with high productivity, the Company launched
products that secured profitability despite a drop in market prices. The company will continue to develop
technologies to improve process optimization and operation efficiency to release products with
competitive advantages in the future.
[Samsung Biologics]
The Company is currently widening the scope of business to CDO services, mRNA and cell/gene
therapy to transform into global biopharmaceutical company. The CDO business provides cell line and
process development and characterization services for small and medium-size Biotechs, which do not
have own development facilities. The Company launched high-performing cell line ‘S-CHOice’, which
delivers high productivity and viability, and ‘S-Cellerate’, which is a platform that innovatively shortens
the development period through a standardized process for each development stage. Furthermore, the
Company opened its first global CDO R&D center in the renowned San Francisco Biopharma Cluster
in October 2020 and currently plans to widen the scope of the market including Boston, Europe, and
China. Additionally, the Company implemented mRNA production capacity within its existing
manufacturing plant to meet the demand of the rapidly emerging market, and completed the preparation
of Current Good Manufacturing Practice (cGMP) Regulations in April 2022.
III. Financial Affairs
1. Financial Statements
Refer to Audited Financial Statements published on the Company’s Website.
In accordance with the Articles of Incorporation, the Company can pay out dividends of profits in cash
or shares, with the approval granted by the Board of Directors. For shareholders’ value enhancement,
dividends will be determined, considering the Company’s investment plan, financial status, and
dividends sustainability. We plan to review whether to pay cash dividends within 10% of free cash flow
(FCF) for the year after 2025.
The Company’s articles of incorporation regarding dividends are provided in the Articles 48 and 49.
Article Content
1. The Company may distribute interim dividends to current shareholders as of the date
determined by a resolution of the BOD under Article 462-3 of the Commercial Code.
2. Interim dividends under Paragraph 1 shall be distributed by a resolution of the BOD.
3. Interim dividends shall be limited to the amount calculated by deducting each of the
following sums from the net asset value in the balance sheet for the immediately
preceding fiscal year:
(1) Amount of the capital of the immediately preceding fiscal year;
(2) Sum of capital reserves and legal reserves accumulated up to the immediately
preceding fiscal year;
(3) Unrealized gains stipulated in the Enforcement Decree of the Commercial Code;
Article 49 (4) Amount determined by the ordinary general meeting of shareholders of the
(Interim Dividends) immediately preceding fiscal year for distribution of dividends;
(5) Discretionary reserves accumulated for specific purpose under applicable provisions of
these Articles of Incorporation or by a resolution of the general meeting of
shareholders until the immediately preceding fiscal period
(6) Profit reserve to be accumulated during the settlement period according to interim
dividends
4. In connection with interim dividends on shares issued by rights issues, bonus issues,
stock dividends, conversion of convertible bonds or exercise of bonds with warrants after
the commencement of applicable fiscal year and prior to the record date in Paragraph 1,
new shares shall be deemed to have been issued at the end of the fiscal year
immediately preceding the fiscal year when such shares were actually issued.
Common - - -
Cash dividend yield (%)
Preferred - -
Common - -
Share dividend yield (%)
Preferred - -
Common - -
Cash dividend per share
(KRW)
Preferred - -
Common - -
Stock dividend per share
(share)
Preferred - -
C. Dividend History
- - - -
※ The Company has no dividend payout history in the past five years.
7. Matters About Financial Through the Issuance of Securities
7-1. Financing Through the Issuance of Securities
[Issuance of Equity Securities]
- - - - - - - - - -
- - - - - - - - - -
Issuing Type of Issuance Date of Total nominal Rating
Interest rate Maturity date Payment status Underwriter
company securities method Issuance amount (rating institution)
Total - - - - - - - - -
B. Commercial Paper Balance
Under Above 10 days Above 30 days Above 90 days Above 180 days Above 1 year Above 2 years
Issuing company Above 3 years Total
10 days /under 30 days /under 90 days /under 180 days /under 1 year /under 2 years /under 3 years
Public - - - - - - - - -
Balance Private - - - - - - - - -
Total - - - - - - - - -
Under Above 10 days Above 30 days Above 90 days Above 180 days
Issuing company Total Issue limit Balance limit
10 days /under 30 days /under 90 days /under 180 days /under 1 year
Public - - - - - - - -
Balance Private - - - - - - - -
Total - - - - - - - -
D. Corporate Bond Unredeemed Balance
Under Above 1 year Above 2 years Above 3 years Above 4 years Above 5 years
Issuing company Above 10 years Total
1 year /under 2 years /under 3 years /under 4 years /under 5 years /under 10 years
Unredeemed
Private 40,000 - - - - - - 40,000
Balance
Under Above 1 year Above 5 years Above 10 years Above 15 years Above 20 years
Issuing company Above 30 years Total
1 year /under 5 years /under 10 years /under 15 years /under 20 years /under 30 years
Public - - - - - - - -
Unredeemed
Private - - - - - - - -
Balance
Total - - - - - - - -
F. Contingent Convertible Bond Outstanding Balance
Above 1 year Above 2 years Above 3 years Above 4 years Above 5 years Above 10 years Above 20 years Above
Issuing company Under 1year Total
/under 2 years /under 3 years /under 4 years /under 5 years /under 10 year / under 20 years / under 30 years 30 years
Public - - - - - - - -
Balance Private - - - - - - - -
Total - - - - - - - -
Contract details Total collateral value remains under 200% of consolidated equity
Constraint on collateral
Implementation status Fulfilled (0%)
Constraint on disposal of assets Contract details Total restricted value remains under 80% of consolidated assets
(excl. financial assets and inventories)
Implementation status Fulfilled (No disposal of assets exceeding KRW 6.1 trillion)
Plan Actual
Classification Name of bond Date of issuance Reason for difference
Purpose Amount raised Purpose Amount used
7-1 Public Investment in Investment in
Corporate bond 2021.09.03 380,000 380,000 -
non-guaranteed bond manufacturing plant manufacturing plant
7-2 Public Investment in Investment in
Corporate bond 2021.09.03 120,000 78,556 -
non-guaranteed bond manufacturing plant manufacturing plant
Plan Actual
Classification Name of bond Date of issuance Reason for difference
Purpose Amount raised Purpose Amount used
- - - - - - - -
C. Unused Funds Management Report
(As of June 30, 2022) (Unit: KRW Mil)
Type of financial instrument Name of financial instrument Amount Contract period Investment term
Total 1,827,362 -
8. Other Financial Information
- Other matters requiring attention in relation to the use of the financial statements
(2) Ruling of the securities and Futures Commission in relation to the accounting for investment
in Samsung Bioepis Co., Ltd., the related administrative lawsuit and the indictment
Refer to Note 25 in Notes to Consolidated Financial Statements, published on the Company’s website
for detailed information about the litigation.
B. Allowance for Bad Debt
(1) Allowance for bad debt by account for the past 3 years
(Unit: KRW Mil, %)
Write off - - -
(3) The guideline for bad debt allowance for account receivables
- Calculation of bad debt allowance
Calculation of bad debt allowance by applying the expected credit loss model that considers the
expected bad debt in the future to the balance of trade and other receivables as of the reporting date.
- Calculation basis of write-off experience rate and future expected bad debt
1. Write off experience rate is calculated using credit loss rate of all account receivables for all
historical period
2. Future expected bad debt is determined taking into consideration cases of debtor bankruptcy,
compulsory execution, death, disappearance, credit information of debtor and forward-looking
information.
(4) The outstanding period of account receivables
(As of June 30, 2022) (Unit: KRW Mil)
C. Inventory
Subtotal 1,172,102,665 - -
① Inspection date
• External auditors join and observe the inspection once a year near year-end (Late Dec. -
Early Jan.). In accordance with the internal regulation, internal inspection is carried out once
a month.
• For the difference in inventories between the inspection date and the end of the year, the
Company checks using warehouse record to confirm the inventories as the date of financial
statements.
② Inspection methodology
• All items for monthly internal inspection.
• External auditors join and observe the inspection and carry out sample test to check the
existence and completeness of inventory.
③ Obsolete Inventory
• If the net realizable value of inventories falls below the acquisition cost, the valuation loss
allowance is recognized to determine the value of the inventory assets in the statement of
financial position;
• The evaluation details of inventories as of June 30, 2022 are as follows.
Inventory Ending
Classification Acquisition cost Gross inventory
write-down Balance
① Classification
The Group classifies its financial assets in the following measurement categories
- Financial assets measured at amortized cost
- Financial assets measured at fair value through other comprehensive income, and
- Financial assets measured at fair value through profit or loss.
The classification depends on the Group’s business model for managing the financial assets and the
contractual terms of the cash flows. For financial assets measured at fair value, gains and losses will
either be recorded in profit or loss or other comprehensive income. For investments in debt instruments,
this will depend on the business model in which the investment is held. The Group reclassifies debt
investments when, and only when its business model for managing those assets changes.
For investments in equity instruments that are not held for trading, this will depend on whether the
Group has made an irrevocable election at the time of initial recognition to account for the equity
investment at fair value through other comprehensive income. Changes in fair value of non-designated
equity investment are recognized in profit or loss.
② Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit
or loss are expensed in profit or loss. Financial assets with embedded derivatives are considered in
their entirety when determining whether their cash flows are solely payment of principal and interest.
Subsequent measurement of debt instruments depends on the Company’s business model for
managing the asset and the cash flow characteristics of the asset. The Company classifies its debt
instruments into one of the following three measurement categories:
A. Amortized cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment
that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized
in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets
is included in ‘finance income’ using the effective interest rate method.
The Company subsequently measures all equity investments at fair value. Where the Company’s
management has elected to present fair value gains and losses on equity investments, which are held
for long-term investments or strategic purposes, in other comprehensive income, there is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the
investments. Dividend income from such investments continue to be recognized as ‘finance income’
when the right to receive payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in ‘finance
income and expenses’. Impairment loss (reversal of impairment loss) on equity investments measured
at fair value through other comprehensive income are not reported separately.
③ Impairment
The Company assesses on a forward-looking basis the expected credit losses associated with its debt
instruments carried at amortized cost and fair value through other comprehensive income. The
impairment methodology applied depends on whether there has been a significant increase in credit
risk. For trade receivables and lease receivables, the Company applies the simplified approach, which
requires expected lifetime credit losses to be recognized from initial recognition of the receivables.
Regular way purchases and sales of financial assets are recognized or derecognized on the trade-date,
the date on which the Company commits to purchase or sell the asset. Financial assets are
derecognized when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Company has transferred substantially all the risks and rewards of ownership.
If a transfer does not result in derecognition because the Company has retained substantially most of
the risks and rewards of ownership of the transferred asset, the Company continues to recognize the
transferred asset in its entirety and recognizes a financial liability for the consideration received.
Financial assets and liabilities are offset and reported in the statement of financial position where there
is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a
net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable in the normal course of business and even
in the event of default, insolvency or bankruptcy of the Group or the counterparty.
The Group’s financial liabilities at fair value through profit or loss are financial instruments held for
trading. A financial liability is held for trading if it is incurred principally for the purpose of repurchasing
in the near term. A derivative that is not designated as a hedging instrument and an embedded
derivative that is separated are also classified as held for trading.
The Group classifies non-derivative financial liabilities, except for financial liabilities at fair value through
profit or loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial
assets does not qualify for derecognition, as financial liabilities carried at amortized cost and present
as ‘trade and other payables’ and ‘debentures and borrowings’ in the statement of financial position.
② Derecognition
Financial liabilities are removed from the statement of financial position when it is extinguished; for
example, when the obligation specified in the contract is discharged or cancelled or expired or when
the terms of an existing financial liability are substantially modified. The difference between the carrying
amount of a financial liability extinguished or transferred to another party and the consideration paid
(including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
Carrying amount and fair value of financial assets as of the end of 1H 2022 and 2021 are as follows :
(Unit: KRW Thousand)
① End of 1H 2022
(Unit: KRW Thousand)
Level 1 Level 2 Level 3 Total
Financial assets :
Financial assets at
fair value through 4,113,607 1,751,492,354 - 1,755,605,962
profit or loss
Derivative financial
- 20,455,459 - 20,455,459
instrument assets
Financial liabilities :
Derivative financial
instrument - - 22,385,495 22,385,495
liabilities
② End of 2021
(Unit: KRW Thousand)
Level 1 Level 2 Level 3 Total
Financial assets :
Financial assets at
fair value through 850,039,877 - 850,039,877
profit or loss
Derivative financial
4,091,971 - 4,091,971
instrument assets
Valuation techniques and significant inputs used in measuring the fair value of financial instruments
classified as level 2 of the fair value hierarchy, are as follows :
Financial assets at
Market
fair value through 1,751,492,354 850,039,877 2 -
approach
profit or loss
Derivative financial Currency forward
instrument assets rate, interest rate,
18,859,438 3,475,382
(currency interest Discounted discount rate, and
swap) 2 cash flow others
Derivative financial model Interest rate,
instrument assets 1,596,021 616,589 discount rate, and
(interest swap) others
Derivative financial Interest rate,
Option pricing
instrument liabilities 22,385,495 - 3 discount rate, and
model
(stock warrants) others
(6) Net gains or losses by category of financial instruments
Net gains or losses on each category of financial instruments as of the end of 1H 2022 and 2021, are
as follows :
(Unit: KRW Thousand)
Interest income
Gain on valuation Other income (*) Net income (loss)
(expenses)
2022 2021 2022 2021 2022 2021 2022 2021
1H 2H 1H 2H 1H 2H 1H 2H
Financial
assets at
16,739,815 4,604,869 - - 37,897,054 3,944,083 54,636,869 8,548,952
amortized
cost
Financial
assets at
fair value
- - 1,565,753 16,779 198,642 61,849 1,764,395 78,628
through
profit or
loss
Derivative
- - 9,742,078 2,229,926 - - 9,742,078 2,229,926
assets
Financial
liabilities
at (17,573,765) (6,601,730) - - (70,633,517) 2.283.999 (88,207,282) (4,317,731)
amortized
cost
Derivative
- - (1,843,510) - - - (1,843,510) -
liabilities
Other
(112,333) (397,731) - - - - (112,333) (397,731)
liabilities
Total (946,283) (2,394,592) 9,464,321 2,246,705 (32,537,821) 6,289,931 (24,019,783) 6,142,044
(*) Other income and expenses include gain (loss) on foreign currency translations and transactions, and gain
(loss) on disposal of financial assets at fair value through profit or loss.
No re-measurement of fixed assets was carried out during the reporting period.
IV. Directors’ Management Discussion & Analysis
Pursuant to the reporting guidelines set forth by the Financial Supervisory Service of the Republic of
Korea, the Management Discussion and Analysis section, reported in annual report, is not included in
the quarterly and half year reports.
V. Auditor’s Report
Business
Auditor Auditor’s opinion Emphasis, etc. Key Audit Matters
year
(*) A review of the quarterly financial statements was conducted and all matters were presented fairly, in all material respects.
※ First half of 2022 is a review opinion on both separate and consolidate financial statements. 2021 and 2020 are audit opinions
on both separate and consolidated financial statements.
※ The schedule above is for the audit and review of separate and consolidated financial statements.
Subsidiaries Auditor
Samsung Bioepis Co., Ltd. KPMG Samjong Accounting Corp
SVIC 36 New Technology Investment Association KPMG Samjong Accounting Corp
SAMSUNG BIOEPIS IL LTD GUBERMAN
SAMSUNG BIOEPIS HK Limited Korchina TNC CPA Limited
Contract Actual
Business
Auditor Details
year Audit Audit Audit Audit
fee hour fee hour
- Review of the interim separate/consolidated financial statements
2022 Samil
- Audit of separate/consolidated financial statements 1,480,000 9,828 840,000 3,918
1H PwC
- Audit of Internal Control over Financial Reporting (ICFR)
C. Status of signing audit services related to the investee under the equity method with auditors
(Unit: KRW Thousand, hour)
Business year Contract date Service details Service period Service fee Remarks
Business year Contract date Service details Service period Service fee Remarks
2022
- - - - -
1H
On July 12, 2018 and November 14, 2018, the Company was notified of the designation of auditors for
3 years as a result of actions by the Securities and Futures Commission, and concluded an audit
contract with Samjong KPMG LLC and the external auditor of the 7th and 8th business years, while
signing a new contract with the designated auditor, Hanyoung EY. The Company has appointed Samil
PwC as an external auditor for three consecutive business years since 2019 in line with the Audit
committee's evaluation process in accordance with the Audit committee's operational regulations, as
the application to suspend the ruling of a request to withdraw the measure recommended by the
Securities & Futures Commission has been cited.
In accordance with Article 10 (4) of the Act on external audits of corporations and others and Article 12
(1) of the Enforcement Decree of the Same Act, the audit committee held a face-to-face meeting on
November 19, 2021 to appoint Samil Accounting Firm as the external auditor for 2022 and three
consecutive business years. Accordingly, the Company signed the audit contract to appoint Samil
Accounting Firm as the 12th~14th external auditor.
Business
Auditor Audit opinions Remarks
year
2022 Samil
- -
1H PwC
As of December 31, 2021, the Company maintained, in all material
Samil
2021 respects, effective Internal Control over Financial Reporting based on -
PwC
the ‘Internal Control-Integrated Framework’
※ Resolution Items: Approved For For For For For For For N/A N/A
1. Approval of meeting and objectives of
general meetings of shareholders.
1. Nomination of Board of Director's Approved For For For N/A N/A For For For For
6th ’22.03.29
committee members
1. Participation in paid-in capital increase by
Approved For For For N/A N/A For For For For
related parties
th 2. Review of compensation limit for directors
7 ‘22.03.29 Approved For For For N/A N/A For For For For
3. Signed contract to purchase 2nd
Approved For For For N/A N/A For For For For
4. Approval of 2022 Health and Safety
Approved For For For N/A N/A For For For For
management system
※ Reported items:
- - - - N/A N/A - - - -
1. 1Q 2022 interim business result
- - - - N/A N/A - - - -
2. Progress of important matters
※ From 11th Board of Directors meeting held on March 29, 2022, independent directors Kwon Soonjo and Jeong Seokwoo
resigned, and Lee Changwoo and Bahk Jaewan were newly appointed as independent directors.
※ Jan 24, 2022 (1st round), Details of “Approval of transactions with related parties”
※ Jan 28, 2022 (4th round), Details of “Approval of stock purchase agreement resolution”
※ Mar 29, 2022 (7th round), Details of “Participation of paid-in capital with related parties”
※ Apr 27, 2022 (8th round), Details of “Participation of paid-in capital with related parties”
※ Apr 27, 2022 (8th round), Details of “Approval of transaction with major shareholders”
(1) Committees
Committee
Composition Name Purpose & authority Remarks
Name
[Purpose]
To deliberate the matters entrusted by the BOD out of
the Company’s material management information,
matters often entrusted by the BOD, and matters
(Chairperson) entrusted by the BOD as other material management
Management information
2 Executive John Rim
committee -
directors
(‘11.04.22) [Main authorities]
Kim Dongjoong
① General management
② Matters regarding finance
③ Other related matters
[Purpose]
To secure objectivity and transparency in determining
director compensation
[Main authorities]
(Chairperson)
3 Independent Bahk Jaewan ① Matters regarding the compensation limit of
Compensation
directors registered directors
committee -
1 Executive Heo Geunnyung
(‘16.08.10) ② Matters regarding performance evaluation criteria
director Eunice Kim
Kim Dongjoong of registered directors
③ Matters regarding the compensation system of
registered directors
④ Matters entrusted by the Board of Directors
regarding director compensation
[Purpose]
To deliberate large-scale related party transactions in
order to strength internal control over related party
transactions and external control over shareholders
and to enhance the efficiency of supervision over
illegal support
Related party (Chairperson)
transaction 3 Independent Heo Geunnyung
[Main authorities] -
committee directors
(‘16.08.10) Lee Changwoo ① To approve related party transactions
② To listen to the report of related party transactions
③ To order an ex-offcio investigation of related party
transactions
④ To suggest a corrective action against related
party transactions
Committee
Composition Name Purpose & authority Remarks
Name
[Purpose]
To deliberate policies regarding Environmental,
Social, and Corporate Governance issues including
Corporate Social Responsibilities, shareholder value
(Chairperson) enhancement, customer value enhancement and
Eunice Kim shareholding structure.
ESG
4 Independent
Committee -
directors Heo Geunnyung
(‘21.02.26) [Main authorities]
Lee Changwoo
Bahk Jaewan
① Matters regarding ESG strategy and policy
according to Corporate Disclosure Guidelines set forth by the Financial Supervisory Service Authority
of the Republic of Korea.
① Management committee
Director
(Attendance rate)
Date Details of agendas Result
John Rim Kim Dongjoong
(100%) (100%)
② Compensation committee
Director
(Attendance rate)
Bahk Heo Eunice Kim
Date Details of agendas Result Kwon
Jae Geun Kim Dong
Soonjo
Wan nyung joong
(100%)
(100%) (100%) (100%) (100%)
1. Assignment of employee stock ownership Approved For N/A For For For
2. Review of 2022 individual annual income Approved For N/A For For For
‘22.02.25 of executive directors
3. Review of 2022 compensation limit for Approved For N/A For For For
registered directors
'22.04.27 1. Appointment of compensation chairman Approved N/A For For For For
※ As of March 29, 2022, independent directors Kwon Soonjo resigned, and Bahk Jaewan were newly appointed as independent
directors.
Director
(Attendance rate)
Date Details of agendas Result Heo Lee Bahk
Geunnyung Changwoo Jaewan
(100%) (100%) (100%)
1. Appointment of chair of related party Approved For For For
transaction committee
‘22.03.29
2. Participation in paid-in capital increase by Approved For For For
related parties
'22.04.27 1. Landscaping of Plant 4 Approved For For For
④ ESG committee
Director
(Attendance rate)
Details of Eunice Jeong Kwon Heo Lee Bahk
Date Result
agendas Kim Seok Soonjo Geun Chang Jae
woo nyung woo wan
(100%) (100%) (100%) (100%) (100%) (100%)
[Bill]
1. Approval of
charitable Approve
‘22.01.24 For For For For N/A N/A
contribution of d
idle raw
materials
[Reported items]
'22.04.27 - - N/A N/A
ESG plan for 2022
[Reported items]
1. Result of
'22.06.07 Frontier-1.5D - - N/A N/A
2. Progress of ESG
initiatives and plan
※ On March 29, 2022, independent directors Kwon Soonjo and Jeong Seokwoo’s terms expired, and Lee Changwoo and Bahk
Jaewan were newly appointed as independent directors.
D. Independence of Directors
(1) Independence of directors
Directors are appointed at the general meeting of stockholders, and director candidates to be appointed
by the general meeting of stockholders are recommended by the Board of Directors, which is decided
as a bill to be submitted to the general meeting of stockholders. The Company ensures directors’
independence to make them objectively oversee the company business.
(As of June 30, 2022)
Relationship
Consecutive
Term with the
Name terms Appointment background Nominator Responsibility
expiration largest/major
(No.)
shareholder
- Contributed to the
transplantation of advanced
company management system
to the Company based on past
experience of working for
Samsung Electronics
Executive
Kim ‘25 O Board of Affiliate
- Expected to contribute to the Director
Dongjoong AGM (2) Directors Executive
Company's continued growth by CFO
overseeing HR, IT, Finance,
Business planning and Business
Innovation departments, which
are the company's key
management functions.
Relationship
Consecutive
Term with the
Name terms Appointment background Nominator Responsibility
expiration largest/major
(No.)
shareholder
※ From 11th Board of Directors meeting held on March 29, 2022, executive director Kim Dongjoong and independent director
Heo Geunnyung were re-appointed, and audit committee member Lee Changwoo and independent director Bahk Jaewan
were newly appointed.
The Company operates the Board of Directors Secretariat consisting of 6 full-time staff, to support
independent directors perform their professional duties. The staff provide the directors with reference
materials corresponding to the meeting agendas well in advance the meeting. This enables directors
study and review each agenda discussed during the Board of Directors/Committee meetings. If
necessary, the Directors are provided with separate information sessions on any agenda and they are
also frequently provided updates on other key management issues.
Jeong Seokwoo
2020.01.13 JP Morgan Kwon Soonjo - - JP Morgan Healthcare conference(~01.17)
Heo Geunnyung
Jeong Seokwoo
Korea Health Industry Kwon Soonjo
2020.05.18 - - BIO KOREA 2020 (Online)(~05.23)
Development Institute Heo Geunnyung
Eunice Kim
Heo Geungnyeong
Korea Health Industry Eunice Kim
2022.05.11 - - BIO KOREA 2022(Online)(~05.13)
Development Institute Lee Changwoo
Bahk Jaewan
2. Audit System
※ Independent director Lee Changwoo was recommended by Independent Director Recommendation Committee and appointed
at the General Meetings of Shareholders.
The Company’s Audit committee is formed in accordance with Article 542-11 of the Commercial Act,
and three independent directors who constitute the Audit committee as stated above meet eligibility
requirements for both Independent directors and Audit committee members.
Details Qualifications Remarks
Other qualification
(Related parties of the largest Qualified Article 542-11 Clause 3
shareholders, etc)
Meanwhile, the Audit committee is eligible to request reports on business performance and financial
status from Directors and requests additional reviews and supplementation of data as needed.
C. Activities of Audit Committee
Director
(Attendance rate)
Date Details of agendas Result
Jeong Kwon Heo Lee Eunice
Seokwoo Soonjo Geunnyung Changwoo Kim
(100%) (100%) (100%) (100%) (100%)
※ Reported Items:
1. 2021 financial statements and annual - - - -
‘22.01.24
business report
2. Audit activities by external auditor - - - -
※ Reported Items:
1. 2nd interim report from 3rd Assessment - - - -
committee
2. Audit activities by external auditor - - - -
3. Results of internal accounting - - - -
performance evaluation by the CEO
‘22.02.04 4. Performance and independence of - - - -
the Audit committee
5. Assessment result of the internal audit - - - -
department
6. Report on audit results of 1H 2021 - - - -
7. Report on the progress of major
issues - - - -
※ Reported Items:
‘22.02.15 1. 2nd Report on the progress of major - - - - Not Not
issues Applicable Applicable
(Newly (Newly
※ Reported Items: appointed) appointed)
1. 2nd Report on the results of internal - - -
-
accounting performance evaluation by
the CEO
2. 2nd Report on performance and - - -
‘22.02.21 -
independence of the Audit committee
3. 2nd Report on assessment result of - - -
-
the internal audit department
4. 3rd Report on the progress of major - - -
-
issues
※ Reported Items:
1. Operation status of internal - - - -
accounting control system
2. Progress of the assessment on - - - -
‘22.02.25 internal accounting control system by
PA
3. Progress of the end-of-year audit - - - -
※ Resolution Items:
1. Approval of agenda for the 11th AGM Approved For For For
※ Reported Items:
1. Entry education for newly appointed - - - -
auditors
2. Annual operation plan of the Audit - - - -
committee
‘22.03.29 - -
3. Annual plan of Internal accounting - -
management system
※ Resolution Items:
1. Appointment of chairman of audit Approved Not Not For For For
committee Applicable Applicable
※ Reported Items: (End of (End of
-
1. 1Q 2022 interim business result term) term)
- - - -
2. 2022 annual audit plan - -
'22.04.27 3. Progress of 1Q 2022 accounting - -
Review
1. Establishment of internal audit
Approved For For For
performance indicators
※ Reported Items:
'22.04.27 1. Annual plan of internal audit team - - - -
2. Evaluation of 2021 external audit firm - - - -
3. Appointment of audit committee as PA - - - -
4. Establishment of phase 2 of - - - -
consolidated internal accounting
management system
Education plan
‘22.07 - Audit committee seminar with external experts Internal Control Operation Group
Reasons for
Date Educator Attendant Education contents
absence
Lee Changwoo
Audit Committee (Personal reason) - Disclosure of ESG and audit committee
2022.04.19 Eunice Kim
Forum Heo Geunnyung supervising points
(Personal reason)
Korea Health
Lee Changwoo
Industry
2022.05.11 Heo Geunnyung - - BIO KOREA 2022(Online)(~05.13)
Development
Eunice Kim
Institute
※ In order to enhance the Audit committee's understanding of internal accounting and business through communication with the
Audit committee, the Company has been delivering various information to the auditors in the form of newsletter, including
biweekly work, trends related to internal accounting, and the status of the Company and pharmaceutical industry.
F. Compliance Officer
Name Career Qualification
- Master degree in Laws, Seoul National University (1996),
Moon 45th bar exam. Qualified
Hyung - Lawyer, Law firm KIM CHANG & LEE (2006~2017) (Article 542-13 Clause 5
Woo - Team leader, Legal Compliance Team, No. 1 of Commercial Act)
Samsung Biologics Co., Ltd. (2017~present)
A. Voting System
(As of March 31, 2022)
10th (2021)
Implementation - -
Annual General Meeting
The Company has 71,174,000 shares of common stock outstanding, which account for 14.23% of the
total number of authorized shares (500 million shares). The number of shares available for exercising
the voting right is 71,122,407 shares excluding 51,593 shares in a special account of Samsung Life
Insurance, the Company’s financial affiliate company.
Number of
Classification Remarks
shares
Common stock 71,174,000 -
Number of outstanding shares (A)
Preferred stock - -
Common stock - -
Number of shares with no voting rights
according to articles of incorporation (C) Preferred stock - -
Restricted by the
Insurance Business Act
Common stock 51,593
Number of shares with limited voting (Special account -
rights under relevant laws (D) Samsung Life Insurance)
Preferred stock - -
Common stock - -
Number of shares with revived voting
rights(E) Preferred stock - -
E. Stock affairs
Article 11 (Issuance and allocation of shares)
① The Company may issue new shares with a resolution of the BOD by:
1. Granting the shareholders opportunities to subscribe for new shares in proportion to their
respective shareholding;
2. Granting specific persons (including the shareholders of the Company) opportunities to
subscribe for new shares to the extent of not exceeding 30/100 of the total number of
issued and outstanding shares (the total number of issued and outstanding shares herein
shall include new shares to be issued under this Sub-Paragraph) by a method other than
that under Sub-Paragraph 1 (i.e. private placement) for managerial purpose of the
Company such as improvement of financial structure, introduction of new technology,
Details of stock
strategic partnership, etc.;
warrants in the
3. Granting general public (including the shareholders of the Company) opportunities to
articles of
subscribe for new shares and allocating new shares to those who subscribe for such
incorporation
shares to the extent of not exceeding 50/100 of the total number of issued and
outstanding shares (the total number of issued and outstanding shares herein shall
include new shares to be issued under this Sub-Paragraph) by a method other than that
under Sub-Paragraph 1.
② When allocating new shares under Sub-Paragraph 3 of Paragraph 1 above, the Company
shall allocate new shares with a resolution of the BOD by::
1. Allocating new shares to unspecified subscribers without differentiating the types of
persons who are granted opportunities to subscribe for new shares;
2. Allocating new shares to the members of the Employee Stock Ownership Association
pursuant to applicable laws and granting general public opportunities to subscribe for new
shares, including unsubscribed shares;
3. Granting the shareholders opportunities to subscribe for new shares first and, if there are
any unsubscribed shares, then to general public opportunities to be allocated;
4. Granting specific types of persons opportunities to subscribe for new shares in accordance
with reasonable standards stipulated in applicable statutory provisions, such as demands
forecast to be made by investment trader or investment broker as underwriter or arranger.
③ When new shares are allocated under Sub-Paragraph 2 or 3 of Paragraph 1 above, the
items set forth in Section 416 (1), (2), (2-2), (3) and (4) of the Commercial Code shall be
notified to shareholders by way of individual or public notices no later than two (2) weeks
prior to the date of payment of the subscription price; provided, however, that such an
individual notice and public notice may be substituted by publishing a Report of Major Items
to the Financial Services Commission and the stock exchange under Article 165-9 of the
Financial Investment Services and Capital Markets Act.
④ The class, number, and issuance price of the new shares that are to be issued under any of
the provisions in Paragraph 1 shall be determined by a resolution of the BOD.
⑤ Any of the new shares that are not subscribed for or paid therefor by applicable payment
date shall be handled by a resolution of the BOD in accordance with applicable laws and
regulations.
⑥ Disposal of fractional shares created in the course of allocation of new shares shall be
determined by a resolution of the BOD.
⑦ In case of allocation of new shares under Sub-Paragraph 1 of Paragraph 1 above, the
Company shall issue the certificates of preemptive rights to the shareholders.
General Shareholders’ Within 3 months after the
Closing date December 31
Meeting business year ends
Closing date of
December 31
stockholders’ list
Closure of
From January 1 to January 31
stockholders’ list
Type of share
-
certificates
Transfer agent Korea Securities Depository
Privileges of
Not Applicable
shareholders
Homepage (https://www.samsungbiologics.com)
Public notice
In unavoidable circumstances, related information is published on Joongang Daily
※ With Act on Electronic Registration of Stocks, Bonds, etc. (“Electronic Securities Act”) taking effect Sep 16, 2019, rights
specified on stocks and subscription warrants are subject to mandatory electronic registration, therefore, “Stock types” are no
longer applicable.
Common Participation in
Kim Dongjoong Related party 4,300 0.01 4,632 0.01 capital
stock
increase
Common
49,656,024 75.04 52,932,839 74.37 -
stock
Total
Preferred
- - - - -
stock
※ The number of investors above is the number of common stock shareholders of Samsung C&T Corporation recorded up to
the latest shareholder list closure date which is December 31, 2021. The shares of Chief Executive Officer, Business
Executive, and Largest Shareholder are recorded up to the disclosure date June 30, 2022.
Details of changes in Chief Executive Officer, Business Executive, and Largest Shareholder
Samsung C&T Corporation, the largest shareholder of Samsung Biologics Co., Ltd., is located in 26,
Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea, and engages mainly in business areas at home
and abroad: the engineering & construction sector including building, civil infrastructure, plant, and
housing; the trading & investment sector including natural resources, steel, chemical & industrial
materials, and living industrial; the fashion sector including apparel products manufacturing, sales
business and textile processing; the resort sector including landscaping and Everland (drier park),
Caribbean Bay (water park), golf club, and catering (Samsung Welstory) and the biopharmaceutical
outsourcing & biosimilar sector.
※ For more details regarding largest shareholders, please refer to the "1H 2022 report" by Samsung &T Corporation disclosed
Changes of the largest shareholder during the time period subject to disclosure are as follows:
3. Distribution of Shares
A. Shareholders with over 5% ownership and stocks held by the employee stock
ownership association
(As of June 30, 2022) (Unit: share)
Number of shares
Classification Name of shareholders Share ratio Remarks
owned
Samsung C&T Corporation 30,646,705 43.06% -
Shareholders with
Samsung Electronics 22,217,309 31.22% -
over 5% ownership
National Pension Service 4,418,387 6.21% -
B. Minority shareholders
(As of June 30, 2022) (Unit: share)
Shareholders Shares owned
Category No. of No. of Remarks
No. of total No. of total
Minority Ratio Minority Ratio
shareholders shares
shareholders shares
Shareholders
Minority holding stocks
114,266 114,305 99.97 14,809,433 71,174,000 20.81
shareholders below 1/100 of total
stocks issued
Share
Lowest 784,000 766,000 790,000 764,000 731,339 703,667
price
Average 814,450 809,333 814,429 808,905 758,365 813,566
Common
stock Highest
250,445 94,179 111,394 84,286 173,657 172,096
(day)
Trading Lowest
38,656 27,315 23,476 31,750 33,523 38,010
volume (day)
Monthly
1,434 974 1,005 1,019 1,089 1,521
(thousand)
※ The Company was listed on the stock market as of November 10, 2016.
VIII. Matters Regarding Executives and Employees
A. Registered executives
(As of June 30, 2022) (Unit: share)
※ From 11th Board of Directors meeting held on March 29, 2022, Lee Changwoo and Bahk Jaewan were newly appointed as independent directors, and independent directors Kwon Soonjo and
Jeong Seokwoo resigned due to end of term.
※ Number of shares held by executives as of June 30, 2022. For subsequent changes, please refer to the ownership report of executives and major shareholders at the DART (Data Analysis,
Retrieval and Transfer System
B. Unregistered executives
(As of June 30, 2022) (Unit: share)
No. of shares
owned
Date of Registration Employment Term of
Name Gender Position Responsibility Career With Without
birth status status service
voting voting
rights rights
- CEO, Lumebio
Kang
W 1972.09 Vice President Unregistered Full-time CDO Division - Master of Medicine, Sookmyung Women’s - - 8 months
Jahoon
University
Moon Compliance Team - Lawyer, Kim Chang & Lee Law Firm 1 year
M 1970.01 Vice President Unregistered Full-time - -
Hyungwoo Leader - Master of Law, Seoul National University 6 months
- Team Leader, Corporate Engineering Team,
Seo Business Strategy Samsung Biologics 1 year
M 1979.01 Vice President Unregistered Full-time 755 -
Sangwon Team Leader 6 months
- Master of Life Science, POSTECH
※ Number of shares held by executives is as of June 30, 2022. For subsequent changes, refer to the ownership report of executives and major shareholders at the DART (Data Analysis, Retrieval
and Transfer System)
C. Registered executives with concurrent positions
Interlocking executive Interlocking company
E. Employees
(As of June 30, 2022) (Unit: KRW Mil)
Employee Non-Employee
No. of employees
Per
Regular Average Gross Remarks
Business Fixed-term workers capita
Gender workers Total length of annual M W Total
unit average
(Part-time (Part-time service salary
All All salary
worker) worker)
Manufacturing M 1,334 - 85 - 1,419 3.3 - -
Manufacturing F 643 - 55 - 698 2.8 - -
Research M 564 - 105 - 669 3.5 - -
Research F 730 - 50 - 780 3.7 - -
Support M 470 - 23 - 493 4 - - 418 239 657
Support F 260 - 10 - 270 3.9 - -
Total no. of M 2,368 - 213 - 2,581 3.5 88,502 36
employees F 1,633 - 115 - 1,748 3.4 53,453 32
Total 4,001 - 328 - 4,329 3.4 141,955 34 -
※ Gross annual salary is based on gross salary in the statement of earned income payments to be submitted to a competent tax
office in accordance with Article 20 of the Income Tax Act.
※ The number of employees above is based on headquarters and registered executives (7 members) are excluded.
The number of employees includes those on leave of absence.
※ The average salary per person was calculated based on the annual average number of employees of 4,120 (male: 2,463,
female: 1,657).
※ In the case of unregistered executives who were elected in the current year, only the compensation paid after the date of
election was calculated.
2. Executive Compensation
<Compensation of Directors and auditors>
Total 7 15,000 -
※ The approval amount at the shareholders’ general meeting is compensation limit for directors approved through the
resolution by the shareholders’ general meeting on March 29, 2022 in accordance with Article 388 of the Commercial Act
and the articles of incorporation.
Independent directors 1 28 28 -
Members of Audit
3 189 63 -
committee
Auditors - - - -
< Compensation status of top five individuals among individuals paid above KRW 500 million >
A. Overview of Affiliates(Summary)
① Domestic
Samsung C&T
Corporation 43.1 19.3 17.1 7.0 5.0 0.1
Samsung Biologics
Samsung Life Insurance 0.1 0.1 0.1 0.0 0.1 0.1 8.7 3.0 29.4 71.9 15.0 0.0
Samsung SDI 11.7 0.4
Samsung SDS 47.2
Samsung Electro-
Mechanics 2.1
Samsung Electronics 31.2 19.6 22.6 23.7 15.2
Samsung Heavy
Industries
Samsung Securities
Samsung Card
Samsung Fire & Marine
Insurance 0.2 1.5
S-1 Corporation
Samsung Display
Samsung Asset
Management
Samsung Electronics
Service
Miracom
Samsung Economic
Research Institute (SERI) 15.2
Harman International
Industries
Total 0.1 74.3 19.3 19.7 39.7 19.0 23.8 15.2 20.8 29.4 71.9 15.0 62.4
Cheil Worldwide
Hotel Shilla
Samsung Display
Samsung Asset
Management
100.0
Samsung Electronics
Service
Miracom INC
Samsung Economic
Research Institute (SERI)
Harman International
Industries
Total 20.7 28.6 17.0 100.0 68.5 100.0 100.0 99.8 100.0 100.0 100.0 100.0 100.0
※ Percent of ownership as of June 30, 2022 based on common shares (Unit: %)
Investee Samsung Samsung Samsung Samsung Steel
Samsung Samsung Samsung Samsung Suwon
Electronics Card Corning Samsung Fire Claim Structure
Electronics Electronics Electronics Hedge Asset SEMES Samsung
Investor Logitech Customer Advanced Service Adjustment Technologies
Service Service CS Sales Management Football Club
Corporation Service Glass Service (STECO)
Samsung C&T
Corporation
Samsung Biologics
Samsung SDI
Samsung SDS
Samsung Electro-
Mechanics
Samsung Electronic 100.0 99.3 100.0 91.5 70.0
Samsung Heavy
Industries
Samsung Securities
Hotel Shilla
Samsung Card
Samsung Fire & Marine
Insurance
S-1 Corporation 100.0 0.6 0.6
Samsung SDI
Samsung Card
Samsung Fire & Marine
100.0
Insurance
S-1 Corporation 100.0
Samsung Display
Samsung Asset
Management
Samsung Electronics
Service
Miracom
Samsung Economic
Research Institute (SERI)
Harman International
100.0
Industries
Total 67.5 100.0 100.0 100.0 100.0 65.2 49.5 100.0 100.0 100.0
Overseas
※ Percent of ownership as of June 30, 2021 based on common shares
Share
Investor Investee
Ratio(%)
Samwoo Architects & Engineers Co., Ltd. SAMOO HU Designer and Engineering Services Limited 100.0
Samwoo Architects & Engineers Co., Ltd. SAMOO DESIGNERS & ENGINEERS INDIAPRIVATE LIMITED 100.0
Samwoo Architects & Engineers Co., Ltd. SAMOO (KL) SDN. BHD. 100.0
Samsung C&T America Inc. Equipment Trading Solutions Group, LLC 70.0
Samsung Renewable Energy Inc. SRE Solar Construction Management GP Inc. 100.0
Samsung Renewable Energy Inc. SRE North Kent 1 GP Holdings Inc 100.0
Samsung Renewable Energy Inc. SRE North Kent 2 GP Holdings Inc 100.0
Samsung Renewable Energy Inc. SRE Belle River GP Holdings Inc 100.0
Samsung C&T Oil & Gas Parallel Corp. PLL Holdings LLC 83.6
Samsung C&T Oil & Gas Parallel Corp. PLL E&P LLC 90.0
SRE Solar Construction Management GP Inc. SRE Solar Construction Management LP 0.0
SRE North Kent 1 GP Holdings Inc North Kent Wind 1 GP Inc 50.0
SRE North Kent 2 GP Holdings Inc SRE North Kent 2 LP Holdings LP 0.0
SRE Belle River GP Holdings Inc SP Belle River Wind GP Inc 50.0
Samsung C&T Deutschland GmbH SungEel Recycling Park Thuringen GmbH 100.0
Samsung C&T Malaysia SDN. BHD WARIS GIGIH ENGINEERING AND TECHNOLOGY SDN. BHD. 70.0
Samsung C&T Singapore Pte., Ltd. Samsung Chemtech Vina LLC 48.3
Samsung C&T Singapore Pte., Ltd. Samsung C&T Thailand Co., Ltd 0.2
Samsung C&T Singapore Pte., Ltd. PT. INSAM BATUBARA ENERGY 65.2
Samsung C&T Singapore Pte., Ltd. Malaysia Samsung Steel Center Sdn.Bhd 30.0
Samsung C&T Hongkong Ltd. Samsung C&T Thailand Co., Ltd 6.8
Samsung C&T Hongkong Ltd. SAMSUNG TRADING (SHANGHAI) CO., LTD 100.0
Samsung C&T Hongkong Ltd. Samsung Precision Stainless Steel(pinghu) Co.,Ltd. 45.0
Share
Investor Investee
Ratio(%)
Samsung Electronics Co., Ltd. Samsung Japan Corporation 100.0
Samsung Electronics Co., Ltd. Samsung R&D Institute Japan Co. Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Mexico S.A. De C.V. 63.6
Samsung Electronics Co., Ltd. Samsung Electronics Hungarian Private Co. Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Europe Logistics B.V. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Portuguesa, Unipessoal, Lda. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Europe Holding Cooperatief U.A. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Display (M) Sdn. Bhd. 75.0
Samsung Electronics Co., Ltd. Samsung Electronics (M) Sdn. Bhd. 100.0
Samsung Electronics Co., Ltd. Samsung Vina Electronics Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung India Electronics Private Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung R&D Institute India-Bangalore Private Limited 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Australia Pty. Ltd. 100.0
Samsung Electronics Co., Ltd. Thai Samsung Electronics Co., Ltd. 91.8
Samsung Electronics Co., Ltd. Samsung Malaysia Electronics (SME) Sdn. Bhd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Hong Kong Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Suzhou Samsung Electronics Co., Ltd. 69.1
Samsung Electronics Co., Ltd. Samsung (CHINA) Investment Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Suzhou Semiconductor Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Tianjin Samsung Electronics Co., Ltd. 48.2
Samsung Electronics Co., Ltd. Samsung Electronics Taiwan Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Tianjin Samsung Telecom Technology Co., Ltd. 90.0
Samsung Electronics Co., Ltd. Shanghai Samsung Semiconductor Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Suzhou Computer Co., Ltd. 73.7
Samsung Electronics Co., Ltd. Shenzhen Samsung Electronics Telecommunication Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Semiconductor (China) R&D Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung (China) Semiconductor Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung SemiConductor Xian Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Gulf Electronics Co., Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics South Africa(Pty) Ltd. 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Rus Company LLC 100.0
Samsung Electronics Co., Ltd. Samsung Electronics Rus Kaluga LLC 100.0
Samsung Electronics Co., Ltd. Tianjin Samsung LED Co., Ltd. 100.0
Samsung Bioepis Co., Ltd. Samsung Bioepis United States Inc. 100.0
Samsung Display Co., Ltd. Samsung Display Vietnam Co., Ltd. 100.0
Samsung Display Co., Ltd. Samsung Display Noida Private Limited 100.0
Samsung Display Co., Ltd. Samsung Display Dongguan Co., Ltd. 100.0
Samsung Display Co., Ltd. Samsung Display Tianjin Co., Ltd. 95.0
Samsung Electronics America, Inc. Samsung Electronics Home Appliances America, LLC 100.0
Samsung Electronics Mexico S.A. De C.V. Samsung Electronics Digital Appliance Mexico, SA de CV 100.0
Harman International Industries, Inc. Harman International Japan Co., Ltd. 100.0
Harman International Industries, Inc. Harman International Industries Canada Ltd. 100.0
Harman International Industries, Inc. Harman Becker Automotive Systems, Inc. 100.0
Harman International Industries, Inc. Harman Becker Automotive Systems Italy S.R.L. 100.0
Harman International Industries, Inc. Harman Industries Holdings Mauritius Ltd. 100.0
Harman International Industries, Inc. Harman International Mexico, S. de R.L. de C.V. 99.9
Harman Professional, Inc. Harman da Amazonia Industria Eletronica e Participacoes Ltda. 0.0
Harman Professional, Inc. Harman do Brasil Industria Eletronica e Participacoes Ltda. 0.0
Harman Connected Services, Inc. Harman Connected Services Engineering Corp. 100.0
Harman Connected Services, Inc. Harman Connected Services Corp. India Pvt. Ltd. 1.6
Harman Connected Services, Inc. Global Symphony Technology Group Private Ltd. 100.0
Harman Financial Group LLC Harman International (India) Private Limited 0.0
Harman Financial Group LLC Harman International Mexico, S. de R.L. de C.V. 0.1
Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Czech and Slovak s.r.o. 31.4
Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Slovakia s.r.o 44.3
Samsung Electronics Benelux B.V. Samsung Electronics Mexico S.A. De C.V. 36.4
Samsung Electronics Benelux B.V. Samsung Electronics West Africa Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Electronics East Africa Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Electronics Saudi Arabia Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Electronics South Africa Production (pty) Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Electronics Industry and Commerce Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Semiconductor Israel R&D Center, Ltd. 100.0
Samsung Electronics Benelux B.V. Samsung Electronics Ukraine Company LLC 100.0
Samsung Electronics Benelux B.V. Samsung Electronics Central Eurasia LLP 100.0
Samsung Electronics Benelux B.V. Samsung Electronics Caucasus Co. Ltd 100.0
Harman Becker Automotive Systems GmbH Harman International Romania SRL 0.0
Harman Holding Gmbh & Co. KG Harman Becker Automotive Systems GmbH 100.0
Harman Holding Gmbh & Co. KG Harman Becker Automotive Systems Manufacturing Kft 100.0
Harman Holding Gmbh & Co. KG Harman RUS CIS LLC 100.0
Harman Inc. & Co. KG Harman Holding Gmbh & Co. KG 100.0
Harman Becker Automotive Systems Manufacturing Kft Harman Professional Kft 100.0
Harman Becker Automotive Systems Manufacturing Kft Harman Consumer Nederland B.V. 100.0
Harman Becker Automotive Systems Manufacturing Kft Harman International Romania SRL 100.0
Harman Becker Automotive Systems Manufacturing Kft Red Bend Ltd. 100.0
Harman Becker Automotive Systems Manufacturing Kft Harman do Brasil Industria Eletronica e Participacoes Ltda. 100.0
Harman Consumer Nederland B.V. Harman Audio Iberia Espana Sociedad Limitada 100.0
Harman Audio Iberia Espana Sociedad Limitada Harman France SNC 0.0
Harman Connected Services AB. Harman Connected Services Poland Sp.zoo 100.0
Harman Connected Services AB. Harman Connected Services Solutions (Chengdu) Co., Ltd. 100.0
Harman International Industries Limited Harman International Industries PTY Ltd. 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Czech and Slovak s.r.o. 68.6
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Romania LLC 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Porta Nuova Varesine Building 2 S.r.l. 49.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Poland Manufacturing SP.Zo.o 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Greece S.M.S.A 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Air Conditioner Europe B.V. 100.0
Share
Investor Investee
Ratio(%)
Samsung Electronics Europe Holding Cooperatief U.A. FOODIENT LTD. 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Denmark Research Center ApS 100.0
Samsung Electronics Europe Holding Cooperatief U.A. Samsung Cambridge Solution Centre Limited 100.0
Samsung Electronics Singapore Pte. Ltd. Samsung Electronics Display (M) Sdn. Bhd. 25.0
Samsung Electronics Singapore Pte. Ltd. iMarket Asia Co., Ltd. 11.4
Samsung Asia Private Ltd. Samsung Electronics Japan Co., Ltd. 100.0
Samsung Asia Private Ltd. Samsung Electronics Singapore Pte. Ltd. 100.0
Samsung Asia Private Ltd. Samsung Electronics New Zealand Limited 100.0
Samsung Asia Private Ltd. Samsung R&D Institute BanglaDesh Limited 100.0
Samsung Asia Private Ltd. Samsung Electronics Vietnam Co., Ltd. 100.0
Samsung Asia Private Ltd. Samsung Electronics Vietnam THAINGUYEN Co., Ltd. 100.0
Samsung Asia Private Ltd. Samsung Electronics HCMC CE Complex Co., Ltd. 100.0
Samsung India Electronics Private Ltd. Samsung Nepal Services Pvt, Ltd 100.0
Samsung India Electronics Private Ltd. Red Brick Lane Marketing Solutions Pvt. Ltd. 100.0
Thai Samsung Electronics Co., Ltd. Laos Samsung Electronics Sole Co., Ltd 100.0
Samsung Electronics Hong Kong Co., Ltd. iMarket Asia Co., Ltd. 11.3
Suzhou Samsung Electronics Co., Ltd. Samsung Suzhou Electronics Export Co., Ltd. 100.0
Samsung (CHINA) Investment Co., Ltd. Suzhou Samsung Electronics Co., Ltd. 19.2
Samsung (CHINA) Investment Co., Ltd. Samsung Mobile R&D Center China-Guangzhou 100.0
Samsung (CHINA) Investment Co., Ltd. Samsung R&D Institute China-Shenzhen 100.0
Samsung (CHINA) Investment Co., Ltd. Tianjin Samsung Electronics Co., Ltd. 43.1
Samsung (CHINA) Investment Co., Ltd. Beijing Samsung Telecom R&D Center 100.0
Samsung (CHINA) Investment Co., Ltd. Samsung Electronics Suzhou Computer Co., Ltd. 26.3
Samsung (CHINA) Investment Co., Ltd. Samsung Electronics China R&D Center 100.0
Harman International (China) Holdings Co., Ltd. Harman (Suzhou) Audio and Infotainment Systems Co., Ltd. 100.0
Harman International (China) Holdings Co., Ltd. Harman Technology (Shenzhen) Co., Ltd. 100.0
Harman International (China) Holdings Co., Ltd. Harman (China) Technologies Co., Ltd. 100.0
Harman Holding Limited Harman International (China) Holdings Co., Ltd. 100.0
Harman Holding Limited Harman Automotive Electronic Systems (Suzhou) Co., Ltd. 100.0
Samsung Gulf Electronics Co., Ltd. Samsung Electronics Egypt S.A.E 0.1
Harman Industries Holdings Mauritius Ltd. Harman International (India) Private Limited 100.0
Global Symphony Technology Group Private Ltd. Harman Connected Services Corp. India Pvt. Ltd. 98.4
Samsung Electronics Latinoamerica(Zona Libre), S. A. Samsung Electronics Latinoamerica Miami, Inc. 100.0
Samsung Electronics Central Eurasia LLP Samsung Electronics Caucasus Co. Ltd 0.0
Samsung SDI Co., Ltd. Samsung SDI Japan Co., Ltd. 89.2
Samsung SDI Co., Ltd. Samsung SDI Battery Systems GmbH 100.0
Share
Investor Investee
Ratio(%)
Samsung SDI Co., Ltd. Samsung SDI Vietnam Co., Ltd. 100.0
Samsung SDI Co., Ltd. Samsung SDI Energy Malaysia Sdn, Bhd. 100.0
Samsung SDI Co., Ltd. Samsung SDI India Private Limited 100.0
Samsung SDI Co., Ltd. Samsung SDI China Co., Ltd. 100.0
Samsung SDI Co., Ltd. Samsung SDI-ARN (Xi'An) Power Battery Co., Ltd. 65.0
Samsung SDI(Hong Kong) Ltd. Samsung SDI India Private Limited 0.0
Samsung SDI(Hong Kong) Ltd. Tianjin Samsung SDI Co., Ltd. 80.0
Samsung Electro-Mechanics Co., Ltd. Samsung Electro-Machanics Japan Co., Ltd. 100.0
Samsung Electro-Mechanics Co., Ltd. Samsung Electro-Mechanics Vietnam Co., Ltd. 100.0
Samsung Electro-Mechanics Software India Bangalore Private
Samsung Electro-Mechanics Co., Ltd. 99.9
Limited
Samsung Electro-Mechanics Co., Ltd. Dongguan Samsung Electro-Mechanics Co., Ltd. 100.0
Samsung Electro-Mechanics Co., Ltd. Tianjin Samsung Electro-Mechanics Co., Ltd. 81.8
Samsung Electro-Mechanics Co., Ltd. Samsung High-Tech Electro-Mechanics(Tianjin) Co., Ltd. 95.0
Samsung Electro-Mechanics Co., Ltd. Samsung Electro-Mechanics (Shenzhen) Co., Ltd. 100.0
Samsung Electro-Mechanics Co., Ltd. Kunshan Samsung Electro-Mechanics Co., Ltd. 100.0
Samsung Fire & Marine Insurance Co., Ltd. SAMSUNG VINA INSURANCE COMPANY LIMITED 75.0
Samsung Fire & Marine Insurance Co., Ltd. Samsung Reinsurance Pte. Ltd. 100.0
Samsung Fire & Marine Insurance Co., Ltd. Samsung Property & Casualty Insurance Company(China), Ltd 100.0
Samsung Fire & Marine Insurance Management Middle East
Samsung Fire & Marine Insurance Co., Ltd. 100.0
Limited
Samsung Heavy Industries Co., Ltd Camellia Consulting Corporation 100.0
Samsung Heavy Industries Co., Ltd Samsung Heavy Industries India Pvt.Ltd. 100.0
Samsung Heavy Industries Co., Ltd SAMSUNG HEAVY INDUSTRIES (M) SDN.BHD 100.0
Samsung Heavy Industries Co., Ltd Samsung Heavy Industries(Ningbo) Co., Ltd 100.0
Samsung Heavy Industries Co., Ltd Samsung Heavy Industries(Rongcheng) Co., Ltd 100.0
Samsung Heavy Industries Co., Ltd SAMSUNG HEAVY INDUSTRIES NIGERIA LIMITED 100.0
Samsung Heavy Industries Co., Ltd Samsung Heavy Industries Mozambique LDA 100.0
Samsung Heavy Industries Co., Ltd Samsung Heavy Industries Rus LLC 100.0
Samsung Life Insurance Co., Ltd. Porta Nuova Varesine Building 2 S.r.l. 51.0
Samsung Life Insurance Co., Ltd. THAI SAMSUNG LIFE INSURANCE CO., LTD. 48.9
Samsung Life Insurance Co., Ltd. Beijing Samsung Real Estate Co., Ltd 90.0
Samsung Asset Management Co., Ltd. Samsung Asset Management (New York), Inc. 100.0
Samsung Asset Management Co., Ltd. Samsung Global SME Private Equity Manager Fund Co., Ltd. 100.0
Share
Investor Investee
Ratio(%)
Samsung Asset Management Co., Ltd. Samsung Asset Management U.S. Holdings, Inc 100.0
Samsung Asset Management Co., Ltd. Samsung Private Equity Fund 2022 GP, Ltd. 100.0
Samsung Asset Management Co., Ltd. Samsung Co-investment 2021 GP, Ltd 100.0
Samsung Asset Management Co., Ltd. Samsung Asset Management(London) Ltd. 100.0
Samsung Asset Management Co., Ltd. Samsung Private Equity Manager I Co., Ltd. 100.0
Samsung Asset Management Co., Ltd. Samsung Asset Management (Hong Kong) Ltd. 100.0
Samsung Asset Management (Hong Kong) Ltd. Samsung Asset Management (Beijing) Ltd. 100.0
Samsung C&T Corporation Samsung C&T Oil & Gas Parallel Corp. 100.0
Samsung C&T Corporation Samsung C&T Corporation India Private Limited 100.0
Samsung C&T Corporation VSSC STEEL CENTER LIMITED LIABILITY COMPANY 85.0
Samsung C&T Corporation Vista Contracting and Investment Global Pte. Ltd. 100.0
Samsung C&T Corporation WARIS GIGIH ENGINEERING AND TECHNOLOGY SDN. BHD. 30.0
Samsung C&T Corporation Beijing Samsung Real Estate Co.. Ltd 10.0
Samsung C&T Corporation SAMSUNG C&T CORPORATION VIETNAM CO., LTD 100.0
Samsung C&T Corporation Samsung C&T Corporation UEM Construction JV Sdn Bhd 60.0
Samsung Welstory Co., Ltd. Shanghai Ever-Hongjun Business Mgt Service Co.,LTD 85.0
Samsung Welstory Co., Ltd. Shanghai Welstory Food Company Limited 81.6
Pengtai Greater China Company Limited PengTai Taiwan Co., Ltd. 100.0
PENGTAI INTERACTIVE ADVERTISING CO.,LTD Beijing Pengtai Baozun E-commerce Co., Ltd. 51.0
Samsung SDS Co., Ltd. SAMSUNG SDS GSCL Canada., Ltd. 100.0
Samsung SDS Co., Ltd. Neo EXpress Transportation (NEXT), Inc. 51.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Hungary, Kft. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Slovakia, S.R.O. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Poland Sp. Z.o.o. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL France SAS 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Greece Societe Anonyme 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Italy S.R.L. A Socio Unico 100.0
Samsung SDS Co., Ltd. Samsung SDS Global Supply Chain Logistics Spain S.L.U 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Netherlands Cooperatief U.A. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Germany GmbH 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Romania S.R.L 100.0
Samsung SDS Co., Ltd. Samsung SDS Asia Pacific Pte, Ltd. 100.0
Samsung SDS Co., Ltd. Samsung Data Systems India Private Limited 100.0
Samsung SDS Co., Ltd. Samsung SDS Vietnam Co., Ltd. 100.0
Samsung SDS Co., Ltd. PT. Samsung SDS Global SCL Indonesia 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Philippines Co., Ltd.Inc. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Thailand Co.,Ltd 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Malaysia SDN.BHD. 100.0
Samsung SDS Co., Ltd. SAMSUNG SDS Global SCL Austraila Pty.,Ltd. 100.0
Samsung SDS Co., Ltd. ALS SDS Joint Stock Company 51.0
Samsung SDS Co., Ltd. SDS-MP Logistics Joint Stock Company 51.0
Share
Investor Investee
Ratio(%)
Samsung SDS Co., Ltd. Samsung SDS China Co., Ltd. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Hong Kong Co., Ltd. 100.0
Samsung SDS Co., Ltd. SAMSUNG SDS Global SCL Egypt 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL South Africa (PTY) Ltd. 100.0
Samsung SDS Co., Ltd. Samsung SDS Global SCL Nakliyat ve Lojistik Anonim Sirketi 100.0
Samsung SDS Global Supply Chain Logistics Middle East DWC-
Samsung SDS Co., Ltd. 100.0
LLC
Samsung SDS Co., Ltd. Samsung SDS Latin America Solucoes Em Tecnologia Ltda. 99.7
Samsung SDS Co., Ltd. Samsung SDS Global SCL Rus Limited Liability Company 100.0
Miracom Inc Co., Ltd. MIRACOM INC ASIA PACIFIC LIMITED 100.0
Samsung SDS Global SCL America, Inc. Samsung SDS Mexico, S.A. DE C.V. 99.0
Samsung SDS Global SCL America, Inc. Samsung SDS Global SCL Panama S. A. 100.0
Samsung SDS Global SCL America, Inc. Samsung SDS Global SCL Chile Limitada 100.0
Samsung SDS Global SCL America, Inc. Samsung SDS Global SCL Peru S.A.C. 100.0
Samsung SDS Global SCL America, Inc. Samsung SDS Global SCL Colombia S.A.S. 100.0
Samsung SDS Global SCL America, Inc. Samsung SDS Latin America Logistica Ltda 0.3
Samsung SDS Europe, Ltd. Samsung SDS Global SCL Netherlands Cooperatief U.A. 0.0
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Poland Sp. Z.o.o. 0.0
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Greece Societe Anonyme 0.0
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Romania S.R.L 0.0
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Rus Limited Liability Company 0.0
Samsung IT Services (Beijing) Co., Ltd. Samsung SDS Global Development Center Xi'an 100.0
Samsung SDS China Co., Ltd. Samsung SDS Global SCL Beijing Co., Ltd 100.0
Samsung Engineering Co., Ltd. Samsung Engineering (Malaysia) SDN. BHD. 100.0
Samsung Engineering Co., Ltd. PT Samsung Engineering Indonesia Co., Ltd. 100.0
Samsung Engineering Co., Ltd. Samsung Engineering (Thailand) Co., Ltd. 81.0
Samsung Engineering Co., Ltd. Samsung Engineering India Private Limited 100.0
Samsung Engineering Co., Ltd. Samsung Engineering Vietnam Co., Ltd. 100.0
Samsung Engineering Co., Ltd. Samsung Engineering Construction(Shanghai) Co., Ltd 100.0
Samsung Engineering Co., Ltd. Samsung Engineering Construction Xi' an Co., Ltd. 100.0
Samsung Engineering Co., Ltd. Samsung Saudi Arabia Co., Ltd. 100.0
Samsung Engineering Co., Ltd. Muharraq Wastewater Services Company W.L.L. 99.8
Samsung Engineering Co., Ltd. Samsung Ingenieria Manzanillo, S.A. De C.V. 99.9
Samsung Engineering Co., Ltd. Grupo Samsung Ingenieria Mexico, S.A. De C.V. 100.0
Samsung Engineering Co., Ltd. Samsung Ingenieria Energia S.A. De C.V. 100.0
Samsung Engineering Co., Ltd. Samsung Ingenieria DUBA S.A. de C.V. 100.0
Samsung Engineering (Malaysia) SDN. BHD. Muharraq Wastewater Services Company W.L.L. 0.3
Samsung Engineering India Private Limited Samsung Saudi Arabia Co., Ltd. 0.0
Share
Investor Investee
Ratio(%)
Samsung Saudi Arabia Co., Ltd. Samsung EPC Company Ltd. 75.0
Samsung Ingenieria Manzanillo, S.A. De C.V. Asociados Constructores DBNR, S.A. de C.V. 49.0
Cheil Worldwide Inc. Caishu (Shanghai) Business Consulting Co., Ltd 100.0
Hotel Shilla Co., Ltd. Shilla Travel Retail Pte. Ltd. 100.0
Hotel Shilla Co., Ltd. Samsung Shilla Business Service Beijing Co., Ltd. 100.0
Hotel Shilla Co., Ltd. Shilla Travel Retail Hong Kong Limited 100.0
Hotel Shilla Co., Ltd. Shilla Travel Retail Taiwan Limited 64.0
HDC Shilla Duty Free Ltd. HDC SHILLA (SHANGHAI) CO., LTD 100.0
Iris Latin America, Inc. Irisnation Latina No.2, S. de R.L. de C.V. 0.0
Iris Nation Worldwide Limited Irisnation Latina No.2, S. de R.L. de C.V. 100.0
Iris Nation Worldwide Limited Iris Services Limited Dooel Skopje 100.0
Iris Nation Worldwide Limited Iris Worldwide Integrated Marketing Private Limited 100.0
Cheil India Private Limited Experience Commerce Software Private Limited 100.0
Cheil Singapore Pte. Ltd. Pengtai Greater China Company Limited 95.7
Cheil Hong Kong Ltd. Pengtai Greater China Company Limited 3.1
Samsung Shilla Business Service Beijing Co., Ltd. Tianjin Samsung International Travel Service Co., Ltd 100.0
Shilla Travel Retail Hong Kong Limited Shilla Retail Limited 100.0
Shilla Travel Retail Hong Kong Limited Shilla Travel Retail Duty Free HK Limited 100.0
Cheil South Africa (Pty) Ltd Cheil Communications Nigeria Ltd. 1.0
One Agency FZ-LLC One Agency South Africa (Pty) Ltd 100.0
B. Collateral provided
- Not applicable
C. Debt guarantee
- Not applicable
The confirmed issuance price is KRW 639,000, and the details of participation in capital increase,
including major shareholders, are as follows :
(Unit: KRW mil)
Contract
Name Relationship Number of share Amount Remarks
date
Shareholder
Samsung C&T
Largest shareholder 2022.04.16 1,904,239 1,216,808,721 Preferred
Corporation
Subscription
Shareholder
Samsung
Related 2022.04.16 1,380,477 882,124,803 Preferred
Electronics
Subscription
Shareholder
Kim Taehan Internal director 2022.04.16 1,272 812,808 Preferred
Subscription
Shareholder
Kim Dongjoong Internal director 2022.04.16 332 212,148 Preferred
Subscription
Employee stock Priority allocation of
ownership Employees 2022.04.16 624,414 399,000,546 12.5% of total
association issued stocks
※ The above transaction date, April 15, 2022, is the day after the share purchase date.
◦ Overview
Entering into - Contract name : Outsourced drug manufacturing
‘18.02.22 Single Sales or - Contract amount : USD 50,313,000 In progress
Supply Contract - Counterpart : Pharmaceutical company in US
- Contract period : 2018. 2. 21 ~ 2026. 12. 31
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 449,425,200
‘18.04.30 Single Sales or - Counterpart : Pharmaceutical company in Swiss In progress
Supply Contract - Contract period : 2018. 4. 30 ~ 2025. 12. 31
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 15,097,201
‘18.06.01 Single Sales or - Counterpart : Ichnos Sciences In progress
Supply Contract - Contract period : 2017. 9. 5 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 127,555,800
‘18.08.14 Single Sales or - Counterpart : Pharmaceutical company in Asia In progress
Supply Contract - Contract period : 2018. 8. 14 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
Entering into - Contract name : Outsourced drug manufacturing
‘18.09.12 Single Sales or - Contract amount : USD 266,454,000 In progress
Supply Contract - Counterpart : Gilead Sciences, Inc.
- Contract period : 2018. 9. 11 ~ 2025. 12. 31
◦ Overview
Entering into - Contract name : Outsourced drug manufacturing
‘19.04.01 Single Sales or - Contract amount : USD 50,224,225 In progress
Supply Contract - Counterpart : Cytodyn Inc.
- Contract period: 2019. 4. 1 ~ 2027.12.31
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 31,985,200
‘19.04.26 Single Sales or - Counterpart : Pharmaceutical company in Asia In progress
Supply Contract - Contract period : 2019. 4. 26 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 17,142,200
‘19.04.26 Single Sales or - Counterpart : Pharmaceutical company in Asia In progress
Supply Contract - Contract period : 2019. 4. 26 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 29,769,800
‘19.05.14 Single Sales or - Counterpart : Pharmaceutical company in Asia In progress
Supply Contract - Contract period : 2019. 5. 14 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name: Outsourced drug manufacturing
Entering into - Contract amount : USD 33,829,763
‘19.05.17 Single Sales or - Counterpart : UCB In progress
Supply Contract - Contract period : 2019. 5. 17 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
Entering into
- Contract name : Outsourced drug manufacturing
‘19.11.28 Single Sales or In progress
- Contract amount : USD 19,129,700
Supply Contract
- Counterpart : Pharmaceutical company in Asia
- Contract period : 2019. 11. 28 ~ Contract end date
※ The disclosure of the confidential details of contract end
date is reserved.
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 58,198,800
‘19.12.03 Single Sales or - Counterpart : Pharmaceutical company in US In progress
Supply Contract - Contract period : 2019. 12. 3 ~ Contract end date
※ The disclosure of the confidential details of contract
end date is reserved.
◦ Overview
Entering into - Contract name : Outsourced drug manufacturing
‘20.05.22 Single Sales or - Contract amount : USD 505,198,800 In progress
Supply Contract - Counterpart : GlaxoSmithKline Trading Services Limited
- Contract period : 2020. 5. 21 ~ 2028. 12 31
◦ Overview
- Contract name : Outsourced drug manufacturing
Entering into - Contract amount : USD 27,870,586
‘20.07.20 Single Sales or - Counterpart : H. Lundbeck A/S In progress
Supply Contract - Contract period : 2019. 9. 27 ~ Contract end date
※ The disclosure of the confidential details of counterpart &
contract end date is reserved.
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.07.28 Single Sales or - Contract amount: USD 268,349,994 In progress
Supply Contract - Counterpart: Eli Lilly and Company
- Contract period: 2020. 7. 21 ~ 2026.08.30
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.08.04 Single Sales or - Contract amount: USD 43,497,915 In progress
Supply Contract - Counterpart: Immunovant Sciences GmbH
- Contract period: 2018. 12. 18 ~ 2029. 12. 31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.08.05 Single Sales or - Contract amount: USD 226,866,568 In progress
Supply Contract - Counterpart: GlaxoSmithKline Trading Services Limited
- Contract period: 2020. 4. 9 ~ 2023. 12. 31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.09.22 Single Sales or - Contract amount: USD 377,542,300 In progress
Supply Contract - Counterpart: AstraZeneca AB
- Contract period: 2020. 6. 23 ~ 2028.12.31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.09.22 Single Sales or - Contract amount: USD 16,018,000 In progress
Supply Contract - Counterpart: AstraZeneca UK Ltd.,
- Contract period: 2020. 9. 21 ~ 2023.12.31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.10.06 Single Sales or - Contract amount: USD 19,713,000 In progress
Supply Contract - Counterpart: Checkpoint Therapeutics, Inc.,
- Contract period: 2020. 10. 02 ~ 2030. 10. 02
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.11.03 Single Sales or - Contract amount: USD 16,110,700 In progress
Supply Contract - Counterpart: Pharmaceutical company in US
- Contract period: 2020. 10. 28 ~ 2030.12.31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘20.11.09 Single Sales or - Contract amount: USD 51,458,000 In progress
Supply Contract - Counterpart: FibroGen, Inc.
- Contract period: 2020. 9. 18 ~ 2022.12.31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘21.01.15 Single Sales or - Contract amount: USD 202,261,032 In progress
Supply Contract - Counterpart: F.Hoffmann-La Roche Ltd
- Contract period: 2020. 6. 1 ~ 2024.12.31
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
‘21.01.15 Single Sales or - Contract amount: USD 550,150,000 In progress
Supply Contract - Counterpart: F.Hoffmann-La Roche Ltd
- Contract period: 2020. 6. 1 ~ 2024.12.31
◦ Overview
Important - Contract name: Outsourced drug manufacturing LOI
‘21.09.29 management - Contract amount: USD 41,510,000 In progress
matters - Counterpart: MSD International Business GmbH
- Contract period: 2021. 9.29 ~ Contract date
◦ Overview
- Contract name: Outsourced drug manufacturing LOI
Important - Contract amount: USD 56,581,000
‘21.12.23 management - Counterpart: Pharmaceutical company in Europe In progress
matters - Contract period: 2021.09.29 ~ 2022. 06.30
※ The disclosure of the confidential details of counterpart &
contract end date is reserved.
◦ Overview
Entering into - Contract name: Outsourced drug manufacturing
'22.03.28 Single Sales or - Contract amount: USD 92,041,300 In progress
Supply Contract - Counterpart: Eli Lilly Kinsale Limited
- Contract period: 2019.12.20 ~ 2029.12.31
◦ Overview
- Contract name: Outsourced drug manufacturing LOI
Important - Contract amount: USD 124,099,000
'22.04.25 management - Counterpart: Pharmaceutical company in Europe In progress
matters - Contract period: 2022.04.25 ~ 2022.08.31
※ The disclosure of the confidential details of counterpart &
contract end date is reserved.
◦ Overview
Important - Contract name: Outsourced drug manufacturing LOI
'22.06.07 management - Contract amount: USD 81,000,000 In progress
matters - Counterpart: Novartis Pharma AG
- Contract period: 2022.06.04 ~ Contract date
2. Contingent Liability
A. Litigations
The Company’s litigations in progress are as follows :
[Samsung Biologics]
Loan commitments signed with financial institutions as of the end of 1H 2022 are as follows:
(Unit: KRW Thousand, USD Thousand)
Limits Execution amount
Bank Type
Currency Amount Currency Amount
Bank overdraft KRW 10,000,000 KRW -
B2B Plus KRW 5,760,000 KRW -
Loans for equipment KRW 70,000,000 KRW 70,000,000
Loans for equipment KRW 50,000,000 KRW 50,000,000
Loans for equipment KRW 50,000,000 KRW 50,000,000
Woori Bank
General loan in foreign
USD 30,000 USD 30,000
currency
Corporate operation
KRW 59,900,000 KRW -
general fund loan
Corporate operation
KRW 100,000,000 KRW 100,000,000
general fund loan
B2B + Main contract KRW 50,000 KRW -
Bank overdraft KRW 10,000,000 KRW -
Loans for equipment KRW 50,000,000 KRW 50,000,000
Loans for equipment KRW 100,000,000 KRW 30,000,000
Comprehensive limit KRW 40,000,000 KRW -
General loan in foreign
KEB USD 30,000 USD 30,000
currency
Hana Bank Corporate operation
KRW 20,000,000 KRW 20,000,000
general fund loan
Corporate operation
KRW 30,000,000 KRW 30,000,000
general fund loan
Corporate operation
KRW 75,000,000 KRW 75,000,000
general fund loan
Corporate operation
USD 30,000 USD 30,000
general fund loan
General loan KRW 17,000,000 KRW -
General loan KRW 45,000,000 KRW 45,000,000
Bank overdraft KRW 10,000,000 KRW -
Shinhan Bank Loans for equipment KRW 70,000,000 KRW 70,000,000
Loans for equipment KRW 100,000,000 KRW 10,000,000
General loan KRW 25,000,000 KRW 25,000,000
General loan KRW 55,000,000 KRW 55,000,000
Loans for equipment KRW 100,000,000 KRW 50,000,000
Corporate general facility
KB Bank KRW 13,125,000 KRW 13,125,000
loan
Corporate general facility KRW 11,250,000 KRW 11,250,000
loan
Corporate general facility
KRW 9,375,000 KRW 9,375,000
loan
Corporate general facility
KRW 6,750,000 KRW 6,750,000
loan
Corporate operation
KRW 51,750,000 KRW 51,750,000
general fund loan
Loans for equipment KRW 100,000,000 KRW 20,000,000
NH Bank
General loan KRW 50,000,000 KRW 50,000,000
Export Growth Loan KRW 110,000,000 KRW 55,000,000
The Export-
Import Bank of Overseas business loan KRW 45,000,000 KRW 45,000,000
Korea
Overseas business loan KRW 50,000,000 KRW 50,000,000
Loans for equipment KRW 70,000,000 KRW 70,000,000
Loans for equipment KRW 28,000,000 KRW 28,000,000
As of June 30, 2022, details of guarantees provided by financial institutions are summarized as follows:
(Unit: KRW Thousand)
If the Company does not comply with the commitments below, financial institutions may require an early
redemption of long-term borrowings.
Sumitomo Mitsui Bank Shareholder The Samsung Group shall maintain its ownership of Samsung Bioepis
composition ratio in excess of 50%
BNP Paribas Shareholder Maintaining as Samsung Group affiliates and the Samsung Group's
composition ratio ownership of the Samsung Bioepis shall be over 50%,
Kookmin Bank Shareholder Maintaining as Samsung Group affiliates and the Samsung Group's
composition ratio ownership of the Samsung Bioepis shall be over 50%,
Period
Lease terms are for a total of 50 years. The initial lease period is for 20 years from the land lease
contract date of April 28, 2011, and the Company can extend the contract by 10 years.
Exemption requirement
The Company whose foreign investment amounts to more than USD 20 million for 5 years since the
land lease contract date is subject to the exemption from Article 32 of Common Property Management
Ordinance of Incheon. Afterwards, the Company, including foreign invested enterprises that meet the
average daily employee count of above 300, is subject to exemption.
A. Sanctions
Securities &
- External auditor designation by the
2018.11.14 Futures -.
regulator for three years
Commission Act on External
- Recommendation to dismiss the Inappropriate
Samsung Audit of Stock
CEO and director in charge consolidation
Biologics Companies
- Correction of financial statements accounting
Financial Article 13
- Prosecution charges KRW
2018.11.21 Services
(Company and CEO) 8 billion
Commission
- On July 12, 2018, the Securities & Futures Commission(“SFC”) imposed the first administrative
measures in accordance with the Act on External Audit of Stock Companies against the Company for
alleged failure to disclose sufficient information in the Company’s Financial Statement from 2012 to
2015 regarding the Company’s joint venture agreement with Biogen Therapeutics Inc. The measures
(“First measures”) included external auditor designation by the regulator, recommendation of
dismissal of the Company’s directors in charge, and referral of the case against the Company and its
representative director (CEO) to the Prosecutors’ Office. On October 10, 2018, in order to prove
unfairness of the decisions and actions taken by the SFC, the company filed a lawsuit for cancellation
of aforementioned measures. (Seoul Administrative Court)
On September 24, 2020, the Court ruled to cancel the First measures imposed to the Company by
SFC and decided to suspend the First measures until the decision of the appeal trail is made. The
SFC appealed the Court’s first trial and the litigation is in progress at the Seoul High Court.
- On November 14, 2018, SFC determined a second measure, in accordance with the Act on External
Audit of Stock Companies against the Company for violation of accounting standards by
inappropriately applying separate method regarding investments in Samsung Bioepis from 2012 to
2018. The measures (“Second measures”) included imposition of administrative fine of KRW 8 billion,
external auditor designation by the regulator, recommendation of dismissal of the Company’s
representative director (CEO) and directors in charge, retrospective restatement of financial
statements, and referral of the case against the Company and its representative director (CEO) to the
Prosecutors’ Office. On November 21, 2018, following the procedure, the Financial Service
Commission(“FSC”) imposed a penalty of KRW 8 billion on the Company. On November 27, 2018, to
prove justification of the accounting treatment, the Company filed a lawsuit for cancellation of the
measures by the SFC and the FSC. (Seoul Administrative Court)
4. Subsequent Events
(1) The Board of Directors resolved to purchase the land for the 2nd Bio Campus at an acquisition
price of approximately KRW 426 billion. The Company has been selected as a preferred bidder by
the Incheon Free Economic Zone Authority (IFEZ) and the contract has been concluded as of July
18th 2022.
(2) On August 12, 2022, the Company made an additional investment of KRW 12,375 million in
accordance with the initial investment payment method for the SVIC54 New Technology Business
Investment Association, which was established for equity investment in startups in the bio sector.
(2) Comparison of forecasts and performance related to the major financial matters before and after the
stock acquisition
As monthly forecasts for the company's financial matters during the external evaluation related to the
acquisition of stocks were not calculated, the Company did not prepare forecasts until the end of the
first half of the year after the acquisition of stocks. Annual forecasts and performance comparison will
be included in the Annual Report at the end of the current year.
C. Green management
The Company is making efforts to meet the government’s green growth policy through greenhouse-
gas/energy reduction activities, water reuse, waste resource circulation, environmental performance
evaluation, and management to establish a green management system and take full responsibility as
an eco-friendly company. The Company is also doing its best to preserve the environment through
continued management of environmental management indicators and disclose relevant information to
its stakeholders in a transparent manner.
The Company’s management indicators by each environmental area for the last 3 years are listed below.
※ The current management indicators may change depending on the results of the performance report
[Waste Management]
[Contaminant Management]
[Samsung Biologics]
□ AEO (Export Division of Excellent Import and Export Safety Management Company)
- Related laws: Article 255-2 of the「Customs Act」, Article 259-2 and Article 259-3 of the Enforcement
Decree of the Customs Act
- Related laws: Article 56 of the Framework Act on Environmental Policy (Environmental management
[Samsung Bioepis]
□ AEO (Export/Import Division of Excellent Import and Export Safety Management Company)
- Related laws: Article 255-2 of the「Customs Act」, Article 259-2 and Article 259-3 of the Enforcement
Decree of the Customs Act
1. Consolidated Subsidiaries(Details)
(Unit : KRW mil)
Majority
ownership
Songdo-dong, Biologics R&D
SAMSUNG of voting
2012.02 Yeonsu-gu, and 2,783,971 O
BIOEPIS rights
Incheon commercialization
(K-IFRS
1110)
Majority
ownership
SAMSUNG
of voting
BIOEPIS UK 2014.01 Brentford, UK Other service 1,474 X
rights
LIMITED(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
of voting
BIOEPIS CH 2015.06 Luzern, Swiss Other service 107 X
rights
GMBH(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
Sydney, of voting
BIOEPIS AU PTY 2016.06 Other service 26 X
Australia rights
LTD(*1)
(K-IFRS
1110)
Majority
SAMSUNG ownership
BIOEPIS BR San Paulo, of voting
2016.05 Other service 291 X
PHARMACEUTICAL Brazil rights
LTDA(*1) (K-IFRS
1110)
Majority
ownership
SAMSUNG
Auckland, of voting
BIOEPIS NZ 2018.01 Other service 21 X
New Zealand rights
LIMITED(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG Ramat-Gan, of voting
2018.03 Other service 74 X
BIOEPIS IL LTD(*1) Islael rights
(K-IFRS
1110)
Majority
ownership
SAMSUNG
Delft, of voting
BIOEPIS NL 2018.06 Other service 25,767 X
Netherland rights
B.V.(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
of voting
BIOEPIS TW 2020.03 Taipei, Taiwan Other service 49 X
rights
Limited(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
Warsaw, of voting
BIOEPIS PL Sp z 2020.06 Other service 214 X
Poland rights
o.o(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
Tsim Sha Tsui, of voting
BIOEPIS 2020.06 Other service 7 X
HK rights
HK Limited(*1)
(K-IFRS
1110)
Majority
ownership
SAMSUNG
Delaware of voting
BIOEPIS United 2021.08 Other service 1,116 X
U.S.A rights
States Inc.(*1)
(K-IFRS
1110)
Majority
SVIC36 New ownership
Technology Seocho-gu, Investment of voting
2017.08 4,604 X
Investment Seoul association rights
Association (*1) (K-IFRS
1110)
(*1) On April 20, 2022, Samsung Bioepis Co., Ltd. was converted from a joint venture to a subsidiary as the Company acquired
100% of the shares as of the end of 1H 2022 by obtaining 10,341,852 shares of Samsung Bioepis Co., Ltd.
2. Affiliates(details)
(As of June 30, 2022)
No. of
Category Name of company Business registration no.
companies
Samsung C&T Corporation 1101110015762
Samsung Biologics Co., Ltd. 1201110566317
Samsung Life Insurance Co., Ltd. 1101110005953
Samsung SDI Co., Ltd. 1101110394174
Listed 16 Samsung SDS Co., Ltd. 1101110398556
Samsung Engineering Co., Ltd. 1101110240509
Samsung Electro-Mechanics Co., Ltd. 1301110001626
Samsung Electronics Co., Ltd. 1301110006246
Samsung Heavy Industries Co., Ltd. 1101110168595
No. of
Category Name of company Business registration no.
companies
Samsung Securities Co., Ltd. 1101110335649
Samsung Card Co., Ltd. 1101110346901
Samsung Fire & Marine Insurance Co., Ltd. 1101110005078
Multicampus Corporation 1101111960792
S-1 Corporation 1101110221939
Cheil Worldwide Inc. 1101110139017
Hotel Shilla Co., Ltd. 1101110145519
Samsung Display Co., Ltd. 1345110187812
Samsung Medison Co., Ltd. 1346110001036
Samsung Bioepis Co., Ltd. 1201110601501
Samsung Venture Investment Corporation 1101111785538
Samsung Life Service Claim Adjustment Co., Ltd. 1101111855414
Samsung Futures Inc. 1101110894520
Samsung Active Asset Management Co., Ltd. 1101116277382
Samsung SRA Asset Management Co., Ltd. 1101115004322
Samsung Welstory Co., Ltd. 1101115282077
Samsung Asset Management Co., Ltd. 1701110139833
Samsung Electronics Logitech Corporation 1301110046797
Samsung Electronics Service Co., Ltd. 1301110049139
Samsung Electronics Service CS Co., Ltd 1358110352541
Samsung Electronics Sales Co., Ltd. 1801110210300
Samsung Card Customer Service Co., Ltd. 1101115291656
Unlisted 45 Samsung Corning Advanced Glass LLC. 1648140003466
Samsung Hedge Asset Management Co., Ltd. 1101116277390
Samsung Fire Service Co., Ltd. 1101111237703
Samsung Claim Adjustment Service Co., Ltd. 1101111595680
SKKU Techno Holdings 1358110215426
SEMES Co., Ltd. 1615110011795
Suwon Samsung Football Club Co., Ltd. 1358110160126
Steel Structure Technologies Co., Ltd. (STECO) 1647110003490
Shilla Stay Co., Ltd. 1101115433927
SD Flex Co., Ltd. 1760110039005
SBTM Co., Ltd. 1101116536556
S1CRM Corporation 1358110190199
SUMaterials Co., Ltd. 1648110061337
S-Core Co., Ltd. 1101113681031
STM Co., Ltd. 2301110176840
HDC Shilla Duty Free Ltd. 1101115722916
No. of
Category Name of company Business registration no.
companies
Open Hands Co., Ltd. 1311110266146
Cheil Fashion Retail Co., Ltd. 1101114736934
Miracom Inc Co., Ltd. 1101111617533
Samsung Economic Research Institute (SERI) 1101110766670
Samsung Lions Co., Ltd. 1701110015786
Samsung Life Financial Service Co., Ltd. 1101115714533
Samsung Fire & Marine Financial Service Co., Ltd. 1101116002424
Samwoo Architects & Engineers Co., Ltd. 1101115494151
Seoul Lake Side Co., Ltd. 1101110504070
SECUI Co., Ltd. 1101111912503
CVnet Corporation 1101111931686
SHP Corporation 1101118151310
Harman International Korea 1101113145673
Human TSS Co., Ltd. 1101114272706
3. Investments in Other Companies
(As of June 30, 2022) (Unit: KRW Mil, Thousand shares, %)
Financial status in
Beginning balance Increase(decrease) Ending balance
recent business year
Name of Listing Purpose of Acquisition Acquisition (disposal)
Acquisition date Gain
company status Investment cost Share Book Share Book Total Net profit
Volume (loss) on Volume
ratio value Volume Amount ratio value assets (loss)
valuation
Samsung
Management
Bioepis Co., Unlisted 2012.02.28 139,995 10,342 50.00 517,100 10,342 2,739,388 - 20,684 100.00 3,256,488 2,783,971 151,992
Participation
Ltd.
Samsung
Biologics Management
Unlisted 2020.03.09 11,914 10 100.00 11,914 - - - 10 100.00 11,914 16,129 404
America, Participation
Inc.
Archigen Management
Unlisted 2014.06.23 71,372 131,000 50.00 - - - 3,813 131,000 50.00 3,813 4,227 2,584
Biotech Ltd. Participation
SVIC 54
New
Management
Technology Unlisted 2021.08.13 12,375 - 33.00 12,375 - 3,135 - - 33.00 15,510 37,136 -1,313
Participation
Investment
Association
[Samsung Bioepis]
(1) Product : SB2
③ Mechanism of Inhibition of the action of TNF (tumor necrosis factor) that causes
action inflammation
④ Product
Second infliximab (Remicade) biosimilar approved to be sold in EU and US
specifications
Since the initial launched in Korea in 2015, it is sold in Europe, US, Canada,
and Australia.
⑤ Progress
Sales distribution agreement signed with Biogen (Europe), Organon
(Canada, USA, Australia) and Yuhan Corporation (Korea)
⑥ Future plan -
- J&J : Remicade
⑦ Competitive - Celltrion : Remsima
product - Sandoz : Zessly
- Amgen : Avsola
⑧ Related -
⑨ Market size USD 5.5 billion in 2021 (Evaluate pharma)
⑩ Others -
⑧ Related Thesis -
⑨ Market size Global revenue of Prolia (Denosumab) in 2021 : USD 3,248 million
⑩ Others -
1. Confirmation by Expert
- Not applicable
2. Expert’s Relations
- Not applicable