2023 FY CEO IR Newsletterceo ir newsletterdrven. for life.2024.01announcementdear vaued investors and sharedolders,this is john rim from samsung biologics.first of all, l would like to express my gratitude for your continuedinterest and support this year.key highlights2023 financial performancerecord-breaking consolidated operating profit of krw itconsolidated : rev. krw 3,695B(+23% YoY), op 1,114B(+13% YoY)(OPM:30.1%)separate:rev. krw 2,939B(+21% YoY), OP 1,204B(+24% YoY)(OPM:41.0%)cumulative:rev. krw 1,020b(+8% YoY), OP 205B(-11% Yoy)(OPM:20.1%)CDMOplant 4 commenced full operations(240KL)investment decision for plant 5(taget operation in 2025)USD 12B cumulatve contract volume, 14 top 20 big pharma clientsNew CDO service launch(s-chosient,s-glyn, cmc package)business expansionADC facility under construction(taget operation in 2024)US sales offices opened for increased accessibility to clients *new jersey & bostoncontinued investments thorugh lige science Fund: - Araris Biotech(apr.), AimedBio(Sep.)BiosimilarbSoliris(sb12):eu launch in july with direct marketingbhumira(sb5): expansion of formulary coverage in usbstelara(sb17): sandoz to commercialize in us, eu, canadablucentis(sb11):approved as interchangeable by fdaToday, samsung biologics released our annual and fourth-quarter financial results for 2023.2023 was a challenging year due to the volatile macroeconomic environment and soaring interest rates which led to fundingissues for biotech companies, prompting several CDMOs to lower their mid to long-term guidance. Among our CDMO peers, we wer the only one to raise guidance twice this year, delivering on our promise of more than 20% revenue growth. We are certainthat our robust CDMO business, proactive domestic/overseas investments, and steadily growing biosimilar business, all of which may be summed up as our core competency, operational Excellence, contributed significantly to our remarkable performance.Solid CMO business growth:Record high consolidated operating profit of KRW 1 trillion, cumuative contract volume exceeding usd 12 billionOur consolidated operating profit surpassed KRW 1 trillion for the first time since the company's founding in 2011, with a 23% YoY growth in revenue driven by improved production efficiency at fully utilized plants 1-3, and revenue contribution from plant 4 which became fully operational in June 2023. We are proud to be one of the fastest companies to reach the KRW 1 trillion mark in Korea after only 12 years of founding.Despite lingering market concerns over potential overcapacity, our 2023 cumulative contract volume has surpassed USD 12 billion(USD 2.5 billion in 2023 alone), and we have added two more global top 20 pharmaceutical companies as our clients, bringing the total to 14 our of 20. We believe that our top-notch service quality, as evidenced by an outstanding track record and strong client trust built over time, paid off in laying the groundwork for extending our client base.plant 4, which is now fully operational with an additional 180kl of capacity coming online in june 2023, is actively ramping up in accordance with a production schedule developed in close collaboration with clients.also, we broke ground for plant 5 in april 2023, the first plant in bio campus ll, with plans to begin operations in april 2025. we are working industriously to complete the facility within an unprecedented timeline of 24 months in order to meet market demand on time. furthermore, sales activities for plant 4 continue to take place, with the focus now shifting to presales for plant 5. we look forward to delivering exciting news to you by continuing our sales activities in full swing.technological expansion for cdo business:launch of new devlopment platforms(s-chosient, s-glyn)and customized CMC packageour CDO business has been making steadfast progress since its launch in 2018. not only did we upgrade s-dual(bi-specific antibody platform) and developick(developability assessment platform) fro