Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 916

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 916
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582 |   |     |   653 |   |     |      7,720 |   |

____________ (*1)Depreciation expense and net investment in wholesalers have not been considered as the impact of income tax savings on pro forma cash flows is not material. Discount rate estimation results The company’s enterprise value is determined by discounting the present value of estimated future operating cash flows using the weighted average cost of capital (WACC). The discount rate is calculated to be 11.495%, which is derived from the weighted average of the cost of equity (Ke = 14.70%), calculated using the beta value of comparable publicly traded companies, and the cost of debt (Kd = 9.58%), reflecting the corporate tax savings on the yield of unsecured 5-year BBB- rated corporate bonds.

Annex I-33

Discount rate estimation contents WACC = Kd × (1-T) × D/(D+E) + Ke × E/(D+E) = 11.495%. (Kd: Cost of debt, Ke: Cost of equity, T: Tax rate, D: Debt, E: Equity) Ke = Rf + (Rm-Rf)×ß = 3.73% + 10.968%×0.7291 = 11.728% Rf: The risk-free rate of 3.73%, as published by Bloomberg on December 31, 2022. ß: The beta value of 0.7291, used because the client company and the target company operate in similar industries, indicating similar stock price fluctuations. Rm-Rf (market risk premium): The market risk premium of 10.97%, as published by Bloomberg at the end of December 2022.

| Category       |     | Amount |     | Note                                                                                                                 |
| Kd             |     | 12.29% |     | Corporate Bond (Unsecured 5 Year)BBB- 5 Year Corporate Bond Yields                                                   |
| Rf             |     |  3.73% |     | South Korea’s 10-year government bond yield courtesy of Bloomberg                                                    |
| Rm – Rf        
 (Risk Premium) |     | 10.97% |     | Korea Market Risk Premium powered by Bloomberg (averaged over the past year prior to the valuation date)             |
| ß              |     | 0.7291 |     | he beta value and target capital structure of the client company due to