Hyundai Department Store (069960) Investor presentation summary

Merger overview and objectives

• Absorption-type merger of a wholly owned subsidiary to enhance management efficiency and meet regulatory requirements.

• Post-merger, the surviving entity will hold 54.8% of Hanmoo Shopping, satisfying the legal threshold for non-listed companies.

• The merger involves no capital outlay and will not issue new shares.

• The merger simplifies the group structure and improves compliance with fair trade regulations.

Shareholding changes and timeline

• Pre-merger, the parent holds 46.3% of Hanmoo Shopping; post-merger, this increases to 54.8%.

• Key dates: merger contract board approval on June 19, contract signing on June 21, merger effective September 1.

• The merger is classified as a small-scale merger, replacing the need for a general shareholders' meeting.

Financial highlights of the absorbed subsidiary

• Assets grew from ₩294.3 billion in 2021 to ₩319.5 billion in 2023.

• Equity increased from ₩258.7 billion in 2021 to ₩281.5 billion in 2023.

• Annual revenue remained steady at ₩1.85 billion over the past three years.

• Operating profit was stable, around ₩1.55 billion annually.

• Net income declined from ₩15.8 billion in 2021 to ₩10.1 billion in 2023.