From the desk of Tae Han Kim, CEO of Samsung Biologics Dear Shareholders,

Since the initial outbreak of the COVID-19 pandemic, our overriding priority at Samsung Biologics has been to ensure a safe working environment for our employees by implementing appropriate countermeasures, and maintaining operational resilience for a sustainable supply of biomedicines for our clients and patients.

Despite the difficult business conditions our economies and markets continue to experience, I am pleased to share that we've achieved a high consolidated sales revenue of 307.7 billion Korean won and an operating profit of 81.1 billion Korean won in the second quarter of 2020. With a 49% increase of 100.5 billion korean won from Q1 revenue and a 294% increase of 229.6 billion korean won from Q2 2019 revenue, these critical figures reflect our strength to meet client demands as operating utilization grew at all plants. A consistent performance in operating profits captured an increase of 18.5 billion Korean won from the previous quarter and 96.5 billion korean won increase compared to year-over-year.

In April this year, we entered into our largest contract manufacturing agreement with Vir Biotechnology -valued at 440 billion korean won-for a potential COVID-19 treatment. We also signed a 280 billion Korean won CMO contract with GSK in May to expand their innovative biopharmaceutical portfolio. This year to date, we have signed eight manufacturing contracts with clients, valued approximately at 1.8 trillion korean won. These achievements further articulate our continued commitment to continuous top line growth and client satisfaction through outstanding ution and innovation.

As competition intensifies, several big pharmaceutical and CMO companies are increasing their manufacturing capacities as the demand for novel biologics continues to rise. Meanwhile, the number of pharma companies without in-house facilities is multiplying, and SCM strategies are moving towards increased dependence on CMOs amid COVID-19. Considering these dynamics in the supply and demand of biotherapeutics, we recognize an opportunity for expansion as our outstanding quality, cost competitiveness, and client satisfaction have laid the foundation for a more robust, long-term strategy. As a result, we are looking at expanding our manufacturing facilities to fulfill the needs of the growing biopharmaceutical market.

We have also adjusted to operating in a more virtual environment due to COVID-19 and the profound changes it has introduced. Videoconferencing, webinars, and virtual tours are investments in technology that allow us to communicate and serve our clients while also keeping their safety in mind. Our Virtual Exhibition Hall introduced the Samsung Biologics business portfolio to a global audience during BIO Digital 2020, and our Live Virtual Tour solution established a platform where through high definition virtual connectivity, our experts are having richer conversations with potential clients and regulatory authorities than ever before. This level of engagement in a rapidly changing business environment showcased our unique strengths, ultimately allowing us to sign numerous contracts in first half of this year.

During this unprecedented crisis, our conviction in our purpose-to achieve a better life for humanity through biomedicines-is stronger than ever. We understand this comes with a great responsibility to support our clients and communities as they navigate the challenges they face. Communication with clients and shareholders on key business environment changes is top of mind in order to maintain trust and cooperation. At Samsung Biologics, we will be innovative in strengthening our cost competitiveness and agility for maximum client satisfaction to grow into a "Super Value Company" that is relentless in its pursuit of innovation.

On behalf of Samsung Biologics, I ask for your continued trust and support as we move forward with resilience and fortitude in these uncertain times, and focus on the well-being, health, and safety of all our stakeholders-our clients, shareholders, employees, and communities.

Thank you,