IR Notice

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2021 FY CEO IR Newsletter

 

Dear Investors, This is John Rim, CEO of Samsung Biologics. We sincerely appreciate your continued faith and trust in Samsung Biologics.

2021 Highlights

Record High Annual Earnings
Revenue: KW 1,568.0B (YOY +35%) Operating Profit: KRW 537.3B (YOY +84%)
CMO Business Execution
Cumulative 69 CMO contracts including mRNA DS, P4 Pre-sales
Portfolio Expansion
mRNA DS CGMP Ready in Q2 '22 Highlights mRNA COVID-19 Vaccine DP Supply Multi Modal Plant (Plant 5) Land Acquired
ESG(Environmental, Social, Governance
mRNA DS CGMP Ready in Q2 '22 | Highlights mRNA COVID-19 Vaccine DP Supply Multi Modal Plant (Plant 5) Land Acquired ESG Committee, KCGS* Rating "A" Added to ESG DJSI** index * Korea Corporate Governance Service ** Dow Jones Sustainability World Index

With the prolonged COVID-19 pandemic, a steep increase in demand for medicines resulted in a great interest in CDMO capabilities around the world to ensure a reliable supply of high quality biological products. Despite continued worldwide uncertainties, Samsung Biologics generated increased sales thanks to our stable operation of all three plants along with additional contracts, and achieved on an outstanding, record-high earnings of 1,568.0 billion won in revenue and 537.3 billion won in operating profit, reflecting an increase of 403.2 billion won and 244.5 billion won compared to the same period last year, respectively. In particular, with improved manufacturing efficiency, operating profit margin increased by +9%p year-on-year to 34%. Proactive Investments into Future Growth Engines for Sustainable Growth Taking the pandemic crisis as an opportunity for growth, Samsung Biologics made a bold investment decision last year to expand our business portfolio, while ensuring internal stability by improving manufacturing operation efficiency of all plants. As a result, the cumulative backlog reached $7.5 billion thanks to additional contracts with Merck, Roche, and other

multinational companies. Significantly, we signed five contracts as early lock-ins for Plant 4, our Super Plant with the world's largest capacity, which will be partially operational from October this year. Furthermore, we acquired land for Plant 5, a Multi Modal Plant for Cell and Gene Therapy, etc., and we will start its construction this year. In our CDO business, Samsung Biologics successfully launched a CDO development Platform 'S-Cellerate TM' to offer clients an integrated and seamless drug development solution resulting in accelerated timelines, improving both economics and convenience. We opened our U.S. R&D Lab in San Francisco in 2020, and are planning to add more labs covering the US East Coast and Europe, etc. We have accumulated 87 CDO contracts since 2018, and have been strengthening our seamless one-stop services to clients with high quality and end-to-end capabilities. Pursue Sustainable Growth to a Top-tier Global Bio Pharma CDMOs in the biopharmaceutical industry are projected to grow rapidly at 10% every year, between 2020 and 2026, as a result of increased outsourcing by global pharmaceutical companies, expanded indications and modalities for drugs, and an increase in the number of biotech companies. To seize the opportunity of increased demand for CDMOS, Samsung Biologics' upmost priority this year is to accelerate Plant 4 operation and lock-in pre-sales. Also, within the first of half of this year, we are planning to operate our mRNA drug substance (DS) manufacturing facility, start the construction of Plant 5 (multi modal services), and purchase additional land for Bio Campus II to prepare for Plant 6, open innovation and beyond. Enhancing ESG (Environmental, Social, Governance) Performance As a global biopharmaceutical company, we have enhanced our efforts on ESG management and made progress in various areas. We established an ESG committee within our Board of Directors, published our first Sustainability Report last June, and earned five ISO certificates in BCMS (Business Continuity Management Systems), Safety, Environment, Energy, and Quality. In recognition of our achievements, we received "A" ESG rating from the Korea Corporate Governance Services (KCGS) and were added to the Dow Jones Sustainability World Index, a first for a Korean pharmaceutical company. Last but not least, we have disclosed our mid-term dividend policy and are committed to continuously improve responsible management to enhance shareholder value. We greatly appreciate your continued support and interest in Samsung Biologics. Thank you

Sincerely, John Rim President and CEO, Samsung Biologics

 

Dear Investors, This is John Rim, CEO of Samsung Biologics. We sincerely appreciate your continued faith and trust in Samsung Biologics.

2021 Highlights

Record High Annual Earnings
Revenue: KW 1,568.0B (YOY +35%) Operating Profit: KRW 537.3B (YOY +84%)
CMO Business Execution
Cumulative 69 CMO contracts including mRNA DS, P4 Pre-sales
Portfolio Expansion
mRNA DS CGMP Ready in Q2 '22 Highlights mRNA COVID-19 Vaccine DP Supply Multi Modal Plant (Plant 5) Land Acquired
ESG(Environmental, Social, Governance
mRNA DS CGMP Ready in Q2 '22 | Highlights mRNA COVID-19 Vaccine DP Supply Multi Modal Plant (Plant 5) Land Acquired ESG Committee, KCGS* Rating "A" Added to ESG DJSI** index * Korea Corporate Governance Service ** Dow Jones Sustainability World Index

With the prolonged COVID-19 pandemic, a steep increase in demand for medicines resulted in a great interest in CDMO capabilities around the world to ensure a reliable supply of high quality biological products. Despite continued worldwide uncertainties, Samsung Biologics generated increased sales thanks to our stable operation of all three plants along with additional contracts, and achieved on an outstanding, record-high earnings of 1,568.0 billion won in revenue and 537.3 billion won in operating profit, reflecting an increase of 403.2 billion won and 244.5 billion won compared to the same period last year, respectively. In particular, with improved manufacturing efficiency, operating profit margin increased by +9%p year-on-year to 34%. Proactive Investments into Future Growth Engines for Sustainable Growth Taking the pandemic crisis as an opportunity for growth, Samsung Biologics made a bold investment decision last year to expand our business portfolio, while ensuring internal stability by improving manufacturing operation efficiency of all plants. As a result, the cumulative backlog reached $7.5 billion thanks to additional contracts with Merck, Roche, and other

multinational companies. Significantly, we signed five contracts as early lock-ins for Plant 4, our Super Plant with the world's largest capacity, which will be partially operational from October this year. Furthermore, we acquired land for Plant 5, a Multi Modal Plant for Cell and Gene Therapy, etc., and we will start its construction this year. In our CDO business, Samsung Biologics successfully launched a CDO development Platform 'S-Cellerate TM' to offer clients an integrated and seamless drug development solution resulting in accelerated timelines, improving both economics and convenience. We opened our U.S. R&D Lab in San Francisco in 2020, and are planning to add more labs covering the US East Coast and Europe, etc. We have accumulated 87 CDO contracts since 2018, and have been strengthening our seamless one-stop services to clients with high quality and end-to-end capabilities. Pursue Sustainable Growth to a Top-tier Global Bio Pharma CDMOs in the biopharmaceutical industry are projected to grow rapidly at 10% every year, between 2020 and 2026, as a result of increased outsourcing by global pharmaceutical companies, expanded indications and modalities for drugs, and an increase in the number of biotech companies. To seize the opportunity of increased demand for CDMOS, Samsung Biologics' upmost priority this year is to accelerate Plant 4 operation and lock-in pre-sales. Also, within the first of half of this year, we are planning to operate our mRNA drug substance (DS) manufacturing facility, start the construction of Plant 5 (multi modal services), and purchase additional land for Bio Campus II to prepare for Plant 6, open innovation and beyond. Enhancing ESG (Environmental, Social, Governance) Performance As a global biopharmaceutical company, we have enhanced our efforts on ESG management and made progress in various areas. We established an ESG committee within our Board of Directors, published our first Sustainability Report last June, and earned five ISO certificates in BCMS (Business Continuity Management Systems), Safety, Environment, Energy, and Quality. In recognition of our achievements, we received "A" ESG rating from the Korea Corporate Governance Services (KCGS) and were added to the Dow Jones Sustainability World Index, a first for a Korean pharmaceutical company. Last but not least, we have disclosed our mid-term dividend policy and are committed to continuously improve responsible management to enhance shareholder value. We greatly appreciate your continued support and interest in Samsung Biologics. Thank you

Sincerely, John Rim President and CEO, Samsung Biologics

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