AJU Steel Decides to Issue KRW 2.9 Billion Exchangeable Bonds Backed by Treasury Shares

Corrected filing on Feb 3, 2026 regarding the initial EB issuance disclosure on Jan 26
EB issuance amount: KRW 2,892 million (approx. KRW 2.9 billion), 0% coupon and 0% yield (interest-free)
Exchange underlying: 877,820 treasury shares (2.27% of total shares)
Use of proceeds: Working capital for raw material (F/H) purchases due to CGCL line expansion (part of annual KRW 121.2 billion purchase needs)
Exchange price: Premium over base price, no refixing
Chosen as optimal after reviewing alternatives (insufficient internal funds, fully utilized bank loans, equity dilution concerns, etc.)
Full exchange: largest shareholder stake drops from 59.65% to 58.29% (1.35%p decrease), limited dilution for existing shareholders
If exchanged, debt ratio improves from 410.9% to 402.7% (8.2%p reduction)
9M 2025 separate net loss: KRW 19.6 billion, debt ratio 410.9%, negative operating cash flow
Lead arranger: Shinhan Investment Corp.

Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Exchangeable Bonds)
Company: AJUSTEEL (139990)
Submission: AJUSTEEL Co., Ltd.
Receipt: 02-03-2026