Creverse Reappoints CEO, Incinerates Shares to Boost Shareholder Value

Creverse is enhancing its shareholder return policy and strengthening its responsible management system. The company confirmed the reappointment of CEO Kim Hyung-jun and the incineration of an additional 500,000 treasury shares during a recent board meeting.

The share incineration, set to occur on June 29, is part of a broader strategy to structurally boost shareholder value by reducing the total number of outstanding shares. This follows two previous incinerations of 400,000 shares earlier this year. Upon completion, the cumulative share incineration by 2026 will reach 900,000 shares, approximately 8% of the company's total shares at the end of last year. Creverse estimates this will improve earnings per share by about 12% and provide an annual shareholder value enhancement of approximately 1,100 won per share at current prices.

This proactive shareholder return initiative is seen as a move to reinforce responsible management, coinciding with Kim Hyung-jun's reappointment as an internal director. Kim, an expert in STEM education with 20 years of experience in the math business division, has led the growth of the math business since his appointment in June 2023. The CMS Youngjaegwan and CMS Thinking Math divisions have shown growth, with a 11% increase in student numbers and over 15% revenue growth in the first quarter, despite a declining school-age population.

Kim stated his commitment to continuing the high growth and market share expansion of CMS Youngjaegwan, leveraging its unique college entrance exam preparation and content. He also plans to accelerate growth by expanding into the high school and early childhood markets and growing the franchise business. Alongside share incineration, Creverse is also proposing an interim dividend of over 500 won per share, with a semi-annual dividend yield of at least 5.3% based on the previous day's closing price. The company aims to clearly link the performance of its education business to shareholder returns through this multi-faceted approach.

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We will continue the high growth and market share expansion of CMS Youngjaegwan based on our unique college entrance exam preparation and content. We will further accelerate growth by expanding into the high school and early childhood markets and growing the franchise business.