The morning of the new year became. In the new year of 2021, I wish for employee's health, family happiness, and new challenges and developments in the LCC. Also, the customers and partners who support our dream that expanding the dream of a centennial company, and overseas buyers who lead us as an export company, I wish you all the best for success in the new year.

In particular, I wish health and happiness to President Hina and Pieras employees who brought about a surge in exports of Propolinse Mouthwash and Hand Sanitizer to Japan during Covid-19 pandemic situation. I would also like to express my deep gratitude to the Unilever staff for leading Lip Care to jump to second place in the U.S. market share in the middle of the chaos of hundreds of thousands of confirmed diagnoses and tens of thousands of deaths per day.

Reviewing the Last year, despite the difficulties faced to many small and medium-sized companies in the Covid-19 crisis, We exceeded total sales target and the export record is increase about 30% than last year.($16.5 million) It was led by Mouthwash and Lip Care in overseas markets. With the bold decision of "build the 5th factory" to prepare for the future, Lip Care operates the world's largest factory with a capacity of 70 million pieces per year (Based on 24 hours: 200 million pieces per year), and Propolinse mouthwash's production capacity increase 600,000 pieces to 1.2 million pieces per month. The TheraBreath Oral Rinse production capacity increase 300,000 pieces to 1.5 million pieces per month as well. So we can match the demand of China, Japan, US market.

I would like to express my gratitude to all of our LCC employees for their cooperation and Synergy with each department. Particularly, thanks to Byeong-ho Park, who is Factory Manager, completed the 5th factory establishment in a short period of time during managing the production.

Vaccine development and vaccination are active in developed countries. The global economy is expected to recover after the second half of next year. In spite of the domestic and world-wide economy is not transparent, for secure the domestic demand base of ORIOX and ODM and realizing our vision 'Be a one hundred year company with an export' We must concentrate to several parts.

First of all, I should achieve the $20 million export record. It took me 10 years to get the $10 million record in 2019, but I want to show the potential of the LCC, which can achieve in just two years, to reach $20 million.

We should do our best to expand exports to the Japan, U.S. and Europe market, Centrally with Lip Care, mouthwash, and Body Lotion, which secure global quality and price competitiveness. The 2027year is the 30th anniversary of our founding. we must continue to achieve the $30, 40 million records to challenge our goal of $50 million export record in 2027.

Secondly, We will do our best to export the Lip Care to the U.S Market. With 70 million capacity pieces per year, We would like to achieve the miracle of becoming the 1st place in Lip Care Market Share in U.S. We should provide a stylish array of packaging styles, including 2-3 packs, RRP packaging, and labeling, to supply to diverse distribution channels.

We will expand to Europe, the Middle East, and Asia market, developing natural prescription suitable for the region, and developing high quality designed container and cap with transparent and translucent type. If necessary, by increasing the number of charging and packing capacities by 30-40%, it is possible to increase the production capacity up to 100 million units per year.

Thirdly, we will actively support various markets and promotional activities to expand sales of mouthwash in Japan so that it can spread from the center of big cities to small cities in rural areas. Along with the 150ml mouthwash that started at Family Mart, 60ml Hand Sanitizer and Lip Care products will offer new opportunities to enter the Japanese market. If necessary, we will ask the dental college to conduct clinical experiments to prove the outstanding efficacy and effectiveness of antibacterial and anti-inflammatory infections on periodontitis and use them for mail order sales.

Fourthly, It is established as a famous Korean brand with new products and standards from Therabreath Oral Rinse, which have gained tremendous popularity in its first year.

In addition to 'Mild, Icy,' new 'Forest' and 'Healthy Smile' products, as well as 1,000ml and small sizes, will penetrate the younger consumer base more deeply. After consulting with the U.S. headquarters, we will transform it into a production base in China, Japan, and Southeast Asia, and increase the utilization rate of our new fifth plant

Fifthly, We will rekindle Dispenser Mouthwash's U.S. market strategy, which has been suspended due to the corona crisis. With newly developed automation and Slim Dispenser, we will actively support the development and market penetration of agents (agencies) centered in the U.S. metropolitan areas, developing new markets such as Fast Food stores. We have already developed ORIOX Mouthwash to suit American consumers' tastes, and We will also produce promotional videos to put all our energy into D-Mouthwash's public relations and marketing. The new idea concept, Dispenser Mouthwash, will create another miracle in the U.S., just like our success in Korea, in the U.S. in a huge Mouthwash market that is more than 30 times larger than ours.

Sixthly, We will also make efforts to develop ORIOX as a famous brand on the Niche Market. In order to become a 100-year-old company, it is essential to expand our brand along with our exports. At the Dispenser Mouthwash, sauna cosmetics, and Daiso stores, ORIOX exceeds 100 annual sales, and continues to push our quality and price competitiveness forward in new niche markets such as No Brand Shop and convenience stores. Seventhly, domestic sales must be increased through the development and supply of ODM for finger disinfectants and hand washes. The hard-working emulsification process includes a dedicated line of hand wash and finger disinfectants, which greatly contribute to maintaining product quality and improving productivity. In addition, we have introduced a new line of increasing refills that can quickly respond to customer needs.

As a result of our continuous efforts to provide quality and price competitiveness for over 20 years, we have come to be proud that Mouthwash, Lip Care, Body Lotion, and Hand Sanitizer are now equipped with global competitiveness. Therefore, the domestic demand part must respond positively to the development and supply of ODM by large and mid-sized enterprises, and exports by Japan and the U.S. should also be promoted centering on these. Since we LCC are not 'Sales and service' but 'Manufacturing-centric' companies, We must make constant changes and improvements in our factory innovation and manufacturing sector, which must result in global competitiveness in quality and price. More effort must be put into stabilizing the operation of the fifth factory, which has been heavily invested, and it must be applied to improving the quality and productivity of existing factories so as to become our 'model factory'. The simple flow and layout of the manufacturing sector must change the operations of existing plants, and the fast charging lines will certainly help increase the productivity of existing charging lines.

A 'Picture-like and clean factory' plays a critical role in winning new customers and maintaining trust, and by providing employees with a comfortable working environment, it greatly contributes to a fun and rewarding work life. Our warehouse and office 5S activities, which we have been promoting since last year, have produced significant results, and we have to change them to the best level in Japan. Raw and secondary materials must be 'planned in' at a fixed time, and non-delivery and supply to production must also take place at an agreed time. 'The shipment of products' must also be 'planned shipping' for cars, loading, and shipping, and export controller work must also be carried out in accordance with the 'plan'. Warehouse rules and layout must be maintained, idle long-term inventory must be separately loaded and properly processed, and most of the pallet management and collection boxes and holding and empty drums can be handled by warehouse personnel.

The reason why Korea's LCC achieved outstanding business results in the severe domestic and international economic environment is because it has implemented fair, ethical, and transparent management, as well as computer and standard system management. We believe that this is the result of our efforts to establish a company that is as beautiful and clean as a painting, while strictly adhering to the basics and principles without illegal or evading laws. In order to take a long road to becoming a 'hundred-year-old company through exports', We will make great efforts this year to establish the basis of the manufacturing industry: 5S (organization, tidying, cleaning, cleanliness, habituation) practice from the office to the production site.

CEO BAIK, SUNGCHUN