New Risk • May 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (43% net debt to equity). Large one-off items impacting financial results. Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: ₩1,757 (vs ₩1,637 in FY 2024) Full year 2025 results: EPS: ₩1,757 (up from ₩1,637 in FY 2024). Revenue: ₩3.59t (up 12% from FY 2024). Net income: ₩91.2b (up 6.2% from FY 2024). Profit margin: 2.5% (down from 2.7% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 24
Upcoming dividend of ₩175 per share Eligible shareholders must have bought the stock before 31 March 2026. Payment date: 24 April 2026. Payout ratio is a comfortable 7.3% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of South Korean dividend payers (3.7%). In line with average of industry peers (2.2%). Valuation Update With 7 Day Price Move • Mar 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩6,660, the stock trades at a trailing P/E ratio of 4.1x. Average trailing P/E is 8x in the Auto Components industry in South Korea. Total returns to shareholders of 71% over the past three years. Announcement • Feb 27
Nexen Corporation, Annual General Meeting, Mar 26, 2026 Nexen Corporation, Annual General Meeting, Mar 26, 2026, at 11:00 Tokyo Standard Time. Location: auditorium, 2595, gimhae-daero, gyeongsangnam-do, gimhae South Korea Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩6,800, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 7x in the Auto Components industry in South Korea. Total returns to shareholders of 80% over the past three years. Buy Or Sell Opportunity • Nov 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 3.1% to ₩5,940. The fair value is estimated to be ₩4,923, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 63%. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩5,900, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 7x in the Auto Components industry in South Korea. Total returns to shareholders of 56% over the past three years. Announcement • Sep 23
Nexen Corporation announced that it expects to receive KRW 23.5429866 billion in funding Nexen Corporation announced a private placement to issue Series 1 Unregistered unsecured private exchangeable bonds for the proceeds of KRW 23,542,986,600 on September 22, 2025. The transaction involves participation of NH-IBKC Value New Technology Fund for KRW 21,542,986,600, NH-Fine Value No. 1 Mezzanine New Technology Fund for KRW 1,000,000,000 and NH-Suseong No. 2 Mezzanine New Technology Fund for KRW 1,000,000,000 as an investor. The bonds bear 0% interest and yield to maturity rate. Bonds matures on September 30, 2030. Conversion price is KRW 7,686. Transaction is approved by board of directors and expected to close by September 30, 2025. Securities have hold period of 1 year. New Risk • Aug 30
New minor risk - Financial data availability Less than 3 years of financial data is available. This is considered a minor risk. If the company has been trading for less than 3 years, then it has not had the opportunity to establish a long-term track record. This makes it difficult for investors to assess the true growth potential, sustainability and resilience of the business under different economic conditions. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risk Less than 3 years of financial data is available. Buy Or Sell Opportunity • Aug 28
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 1.7% to ₩5,920. The fair value is estimated to be ₩4,925, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 64%. New Risk • Aug 21
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.8% Last year net profit margin: 2.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risk Profit margins are more than 30% lower than last year (1.8% net profit margin). Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: ₩1,637 (vs ₩778 in FY 2023) Full year 2024 results: EPS: ₩1,637 (up from ₩778 in FY 2023). Revenue: ₩3.21t (up 5.9% from FY 2023). Net income: ₩85.9b (up 106% from FY 2023). Profit margin: 2.7% (up from 1.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 27
Nexen Corporation, Annual General Meeting, Mar 26, 2025 Nexen Corporation, Annual General Meeting, Mar 26, 2025, at 11:00 Tokyo Standard Time. Location: auditorium, 2595, gimhae-daero, gyeongsangnam-do, gimhae South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩125 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 April 2025. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of South Korean dividend payers (3.9%). In line with average of industry peers (2.6%). New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. New Risk • Nov 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Announcement • May 24
Nexen Corporation (KOSE:A005720) announces an Equity Buyback for KRW 5,000 million worth of its shares. Nexen Corporation (KOSE:A005720) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares according to the contract with Shinyoung Securities Co.,LTD. The purpose of the program is stock price stability and shareholder value enhancement. The program will expire on November 22, 2024. As of May 22, 2024, the company had 4,054,839 and 180,000 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. New Risk • Mar 28
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 90% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Earnings have declined by 29% per year over the past 5 years. Shareholders have been substantially diluted in the past year (90% increase in shares outstanding). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Mar 23
Full year 2023 earnings released: EPS: ₩778 (vs ₩317 in FY 2022) Full year 2023 results: EPS: ₩778 (up from ₩317 in FY 2022). Revenue: ₩3.04t (up 1.1% from FY 2022). Net income: ₩41.6b (up 138% from FY 2022). Profit margin: 1.4% (up from 0.6% in FY 2022). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩110 per share at 2.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 29 April 2024. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.0%). Announcement • Jun 01
Nexen Corporation (KOSE:A005720) announces an Equity Buyback for KRW 5,000 million worth of its shares. Nexen Corporation (KOSE:A005720) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares according to the contract with Shinyoung Securities Co.,LTD. The purpose of the program is stock price stability and shareholder value enhancement. The program will expire on November 30, 2023. As of May 30, 2023, the company had 2,940,839 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Reported Earnings • May 20
First quarter 2023 earnings released: ₩211 loss per share (vs ₩68.00 loss in 1Q 2022) First quarter 2023 results: ₩211 loss per share (further deteriorated from ₩68.00 loss in 1Q 2022). Revenue: ₩722.1b (up 16% from 1Q 2022). Net loss: ₩11.4b (loss widened 205% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩317 (vs ₩521 in FY 2021) Full year 2022 results: EPS: ₩317 (down from ₩521 in FY 2021). Revenue: ₩3.00t (up 25% from FY 2021). Net income: ₩17.5b (down 39% from FY 2021). Profit margin: 0.6% (down from 1.2% in FY 2021). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 28 April 2023. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of South Korean dividend payers (3.3%). In line with average of industry peers (2.3%). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. 1 independent director (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. 1 independent director (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩85.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 April 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (1.8%). Reported Earnings • Mar 28
Full year 2020 earnings released: EPS ₩194 (vs ₩1,055 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩1.97t (down 14% from FY 2019). Net income: ₩10.9b (down 82% from FY 2019). Profit margin: 0.6% (down from 2.6% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Jan 25
New 90-day high: ₩4,860 The company is up 21% from its price of ₩4,025 on 27 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 47% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩80.00 Per Share Will be paid on the 24th of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.6% is below the top quartile of South Korean dividend payers (2.6%), but is in line with industry peers (1.7%). Is New 90 Day High Low • Dec 18
New 90-day high: ₩4,735 The company is up 16% from its price of ₩4,085 on 18 September 2020. The South Korean market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 10.0% over the same period. Reported Earnings • Nov 22
Third quarter 2020 earnings released: EPS ₩46.00 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₩536.9b (down 11% from 3Q 2019). Net income: ₩2.60b (down 84% from 3Q 2019). Profit margin: 0.5% (down from 2.7% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Nov 11
New 90-day high: ₩4,220 The company is up 2.0% from its price of ₩4,150 on 13 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Auto Components industry, which is up 6.0% over the same period. 
