LX International : LXI 2023 Shareholders Letter

70th Shareholder Meeting

(Agenda Items Reference)

• Date: March 23 (Thu), 2023 at 9AM
• Location: 58 Saemunan-ro,Jongno-gu, Seoul B2 Auditorium

Dear Shareholders,

I would like to take this opportunity to thank you for your continued support and confidence in our business activities under the leadership of the LX International's Board and executive members.

Our Company will hold its 70th regular shareholder meeting on March 23, 2023.

In order to assist investors in making an informed decision on each of the agenda items listed on the notice of convocation, reference materials are hereby provided.

If you have any additional questions concerning the items or the shareholder meeting, please contact our Company's finance team. (email: [e-mail], Tel: [phone])

We will continue to strive toward the advancement of the Company and enhancement of shareholder value and will always openly communicate with our shareholders.

March 6, 2023

Chun-sung Yoon,

Representative Director

Agenda Items for 70th Regular

Shareholder Meeting

Item 1: Approval of 70th Financial Statements and

Consolidated Financial Statements

Item 2: Partial Amendment to the Articles of Incorporation

Item 3: Appointment of Directors

Item 3-1: Appointment of Outside Director Soo-il Chai

Item 3-2: Appointment of Outside Director O-joon Kwon

Item 3-3: Appointment of Non-Executive Director Sung-kwan Choi Item 4: Appointment of Audit Committee Members

Item 4-1: Appointment of Audit Committee Member Soo-il Chai

Item 4-2: Appointment of Audit Committee Member O-joon Kwon Item 5 Agenda Item: Approval of Cap on Directors' Renumeration

Item1: Approval of 70th Financial Statements and

Consolidated Financial Statements

For the Company's financial statements and consolidated financial statements for Period 70, please refer to the notice of convocation of shareholder meeting, which has already been disclosed. The final draft of the audit report with external audit completed will be disclosed on March 15.

The current period's dividend is 3,000 won per share, increasing by 700 won from the previous period's dividend.

Despite 2022 having been a year marked by high levels of volatility in the global resources, raw materials and financial markets due to unforeseen variables such as the war between Russia and Ukraine, increasing exchange rates, etc., the Company was able to achieve the best operating performance ever because of its continued investments in productive assets and its accumulated trading capacities. Hence, the Company intends to pay a total dividend of 107.9 billion won this year (3,000 won per share; a 21% dividend payout ratio compared to a market dividend ratio of 7.3%).

The Company will retain a certain amount of funds in order to secure investment resources for new businesses and to enhance shareholder value in the long term by ensuring the safety of the financial structure, and will simultaneously strive to establish shareholder return policies and enhance shareholder value so that the shareholder right to receive a reasonable amount of dividend will be upheld.

• Dividend Payments (past 5 business years)

(Unit: billion won)

		Shareholder Return	Net Profit for
				Dividend	Market
			Treasury
Category	Dividend		Owner of
	Payout	Dividend
(Period)	per Share	Total	Share	Consolidated
Ratio	Rate
		Dividend	Purchase	Parents
			Amount
70	3,000 won	107.9	-	515.2	21%	7.3%
69	2,300 won	82.7	-	350.1	24%	8.6%
68	400 won	14.4	39.7	297.6	18%1)	1.6%
67	300 won	11.6	-	28.6	41%	2.0%
66	250 won	9.7	-	70.4	n/a	1.6%

1) Including Treasury Stock Purchase amount

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Item 2: Partial Amendment to the Articles of Incorporation

Since the formation of the LX Group in 2021, the Company has been active as the Group's core business element and continues to expand its areas of business. In order to smoothly respond to various changes in the business environment and to reflect the amendments to the Commercial Act, the Company's Articles of Incorporation have been re-examined from an overall perspective.

[Change in Number of Authorized Shares]

The examination has revealed that the Company's number of shares issuable (12 million shares, 15% of total authorized shares) is considerably lower than those of the Company's market-listed peers, suggesting that its means of procuring new funding for business expansion may be somewhat limited, and a need to amend the Articles of Incorporation with regard to the number of authorized shares.

As such, the present amendment to the Articles of Incorporation will increase the number of authorized shares from 80 million to 160 million, preemptively increasing the total number of shares that may be issued. Through this measure, means to procure funding will be diversified and a foundation for facilitating even more effective responses to changes in the business environment will be secured, enhancing long-term shareholder value.

Furthermore, having achieved its best-ever operating performance in 2022, the Company continues to actively pursue in-organic M&A's ever since the formation of the LX Group, focusing especially on investments in nickel and new regenerable power generation, etc., which implies a need to secure a reasonable amount of capital in proportion to the expansion of the business portfolio and its profit-generating potential. The Company will seek to achieve a balance between borrowed capital and equity capital to form a foundation for continued growth upon a sound financial structure.

• Other companies' authorized shares and issued shares

Category	Our Company*	Average**
LX Group	Industry
Issued Shares/Authorized	85%	27%	24%	32%
Shares

• Company's cumulative issued shares (68 million shares)/authorized shares (80 million shares)
• Average among listed LX Group companies (3 companies) and other industry peers (2 companies)

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