Rights offering (paid-in capital increase) decision (subsidiary)

A later amendment corrects this filing, so the terms on this page may be out of date. See the latest version (2026-09-01) →

What happened

Report on a material management matter of the subsidiary The Avon Company: rights offering (paid-in capital increase) decision.

1. Type and number of new shares Common shares (shares): - Class shares (shares): -

2. Par value per share (KRW): -

3. Total shares issued before the capital increase Common shares (shares): 60,000,100 Class shares (shares): -

4. Purpose of the funding Facility funds (KRW): - Business acquisition funds (KRW): - Working capital (KRW): - Debt repayment funds (KRW): 286,271,639,396 Funds to acquire securities of another company (KRW): - Other funds (KRW): -

5. Method of capital increase: Rights offering to existing shareholders [For a rights offering to existing shareholders]

6. New share issue price Fixed issue price: Common shares (KRW): -; Class shares (KRW): - Expected issue price: Common shares (KRW): -, fixing date -; Class shares (KRW): -, fixing date -

7. Method of determining the issue price: -

8. Record date for new share allotment: -

9. Number of new shares allotted per existing share (shares): -

10. Preferential allotment ratio for employee stock ownership association members (%): -

11. Expected subscription date Employee stock ownership association: start date -, end date - Existing shareholders: start date -, end date -

12. Payment date: 2026-09-01

13. Plan for handling forfeited shares: -

14. Dividend record date for new shares: -

15. Expected date of delivery of new share certificates: -

16. Lead underwriter (if not a direct public offering): -

17. Whether the subscription rights are transferable: Not applicable

18. Board resolution date (decision date): 2026-08-23 Outside director attendance: present (persons) -, absent (persons) - Attendance of auditor (audit committee member who is not an outside director): -

19. Whether subject to securities registration statement filing: No

20. Reason for exemption from filing: As a rights offering to shareholders of an overseas unlisted company, it is not subject to securities registration statement filing.

21. Whether subject to Fair Trade Commission reporting: No

22. Other material matters relevant to investment decisions - This disclosure concerns the rights offering decision of The Avon Company, a subsidiary wholly (100%) owned by LG H&H USA, Inc., which is itself a subsidiary of the Company. - The USD 205,507,278.82 that The Avon Company borrowed from LG H&H USA, Inc. will be converted into paid-in capital (debt-to-equity swap); no separate cash payment will be made. - Regarding "1. Type and number of new shares" above, because this matter proceeds without issuing separate new shares, the number of shares is not stated in this disclosure. - The "debt repayment funds (KRW)" figure in "4. Purpose of the funding" above is USD 205,507,278.82, converted using the first-quoted base exchange rate of the Seoul Money Brokerage Services (1 USD = KRW 1,393.00) on the business day ('26.08.21) immediately preceding the board resolution date ('26.08.23); the amount may change depending on the settlement details and exchange rate at the actual time of the debt-to-equity conversion. - "18. Board resolution date (decision date)" above is the board resolution date of The Avon Company. - The above schedule and details may change depending on future progress. - The [Matters Concerning the Subsidiary] section below is as of the end of 2025.

Related disclosures: 2026-08-24 Decision to dispose of shares and equity securities of another company (voluntary disclosure) (material management matter of subsidiary) 2026-08-24 Decision to acquire shares and equity securities of another company (material management matter of subsidiary)

[Matters Concerning the Subsidiary] Subsidiary name: The Avon Company Representative: Mun Seon-hwa Main business: Sale of cosmetics and household goods Whether a major subsidiary: Not applicable Total assets of the subsidiary (KRW): 263,799,475,887 Total consolidated assets of the controlling company (KRW): 6,869,383,558,281 Ratio to the controlling company's total consolidated assets (%): 3.8