P:CELL Internal Venture Program

① Program Overview

Pulmuone operates P:CELL, an internal venture program designed to transform employees' innovative capabilities into new growth drivers amid an increasingly uncertain business environment. The program aims to embed an execution-oriented organizational culture by promoting the entrepreneurial behaviors defined in Pulmuone's New Management Declaration—including challenge, creativity, ownership, and collaboration—across the organization.

Rather than serving as idea contributors, employees participate as Product Owners (POs), leading the entire innovation process from problem identification and business model development to commercialization. Through this approach, P:CELL functions as both a talent development platform and a long-term incentive program that supports employees' professional growth while contributing to the Company's sustainable growth.

P:CELL is open annually to employees across Pulmuone's domestic business units. In 2025, a total of 112 business ideas were submitted through the June–July application period, with 10 ideas ultimately selected based on their innovativeness and feasibility. Beginning in November, the selected participants refined their business concepts through mentoring and advisory sessions with external experts, focusing on commercial viability, market potential, and execution strategies. The program concluded with a final presentation and evaluation session held at Pulmuone's headquarters in Suseo, Seoul, on December 17, where each team presented its business model in a 10-minute presentation followed by a Q&A session.

② Key Business Themes

The ideas selected through the 2025 P:CELL program primarily focus on new business opportunities aligned with Pulmuone's four strategic priorities—Plant-forward, Animal Welfare, Healthy Experience, and Eco-friendly Care—as well as digital transformation (DX) and lifestyle innovation. These initiatives are being further developed to create sustainable value in food and lifestyle businesses. Regardless of award status, ideas demonstrating commercial potential receive structured incubation support to facilitate their progression toward commercialization.

③  Future Expansion

Beginning in 2026, Pulmuone will launch SustainHUB, an AI Transformation (AX)-based open innovation platform that connects external innovation with internally generated ideas. Together with P:CELL, SustainHUB will serve as one of the Company's two core innovation platforms for accelerating new business creation.

P:CELL Long-term Incentive Program

Pulmuone operates a long-term incentive program linked to the P:CELL initiative. Business ideas selected through the 2025 and 2026 P:CELL competitions undergo an incubation period of approximately one to two years before entering the growth stage after approximately three years. Once the business enters the growth stage, the employee¹⁾ responsible for the idea may receive a long-term incentive in Pulmuone shares or an equivalent cash amount. The award is calculated based on a number of shares linked to the equity value of the business. The program is designed to recognize not only financial performance but also non-financial objectives that contribute to sustainable growth, thereby encouraging the balanced creation of economic, social, and environmental value.

1) Refers to employees below the Senior Management level.