Dear shareholders and customers

Guided by our corporate mission of ‘Promoting human health, from prevention to cure’, SK bioscience strives to achieve both economic value(EV) and social value(SV) in the field of public health.

As the three-year pandemic comes to an end, we find ourselves stepping into a new phase. The importance of securing vaccine sovereignty has escalated among nations, leading us to realize that the vaccine industry holds significance in achieving not only social value but also economic value. Consequently, global collaboration and the expansion of our supply chain network have become indispensable in preparing for the next pandemic. We wholeheartedly acknowledge that achieving SK bioscience’s mission holds greater value than ever before.

Drawing from our pandemic experience, SK bioscience is now poised to earnestly implement SKBS 3.0, a significant new leap forward, while further advancing our ESG management.

The core of SKBS 3.0 is achieving growth-based EV and practicing SV, which represents the company’s calling.
To realize this, SK bioscience will first continue to develop blockbuster vaccines with global competitiveness. Our focus lies in developing new premium vaccines, including the next-generation pneumococcal vaccine, which is being developed in collaboration with Sanofi Pasteur. To achieve this, we are investing in world-class production infrastructure, exemplified by the new Songdo Global R&PD Center and the pursuit of cGMP(Current Good Manufacturing Practice) at Andong L HOUSE. We are making continuous efforts to secure new technologies, such as developing an mRNA platform in partnership with CEPI.

Secondly, we will actively pursue a strategy of glocalization, a combination of global and localization, for our vaccine business. Our experience with global vaccine inequality during the COVID-19 pandemic inspired us to develop a business model called SKYShield. This model addresses global vaccine supply imbalance by transferring our manufacturing capabilities, process development platforms, technological prowess, and expertise to overseas governments and partners, enabling them to gain their own competitive edge in vaccine production. Our initial target regions include Middle East, Africa, Asia, South America, etc.

Lastly, SK bioscience aims to expand its business beyond vaccines into new areas of biotechnology. We plan to secure new growth engines by entering the Cell & Gene Therapy(CGT) C(D)MO business, leveraging the capabilities accumulated through our successful vaccine development process. To achieve this, we are developing a multi-faceted strategy for the CGT CDMO business in the U.S., including the establishment of SK bioscience USA in Boston.

In 2022, we started our journey into ESG management by establishing a company-wide ESG strategy and an ESG Management Implementation Structure under the supervision of the ESG Committee under the Board of Directors. We have made significant performances in each ESG area, including the formulation of a mid to long-term climate change response strategy. This year, as part of our ongoing efforts to enhance ESG management, we conducted a company-wide human rights impact assessment in alignment with global trends. Moving forward, we plan to expand this assessment to include our partners and local communities to fulfill our social responsibility. We will also extend our support to our partners, assisting them in strengthening their own ESG management capabilities, to promote and establish ESG management throughout the supply chain. By contributing to the vitalization of the bio-ecosystem, we will actively realize our ESG vision of ‘Healthier Life, Sustainable Future’.

SK bioscience is committed to promoting global public health with a sense of social responsibility for people and society and strives to grow together with local communities and all stakeholders. We humbly request your enduring interest and support on our journey towards a healthier future for humanity.

Thank you.