First, I would like to express my deepest gratitude for your unfailing support to Saracom.

For a long time, the shipbuilding market's business conditions in both at home and abroad are endangered in the brunt of the prolonged recession as well as the worldwide economic depression. And because the anxious factors in international economy are unsolved and remained as before, it is expected that distress will go on. But, we run to secure a foundation of our growth and to make an enormous jump contrary to market's expectations,

Most of all, we have continued to improve the efficiency of our business management in all areas and actively reflect the voices of our clients, shareholders. partners as well as to enhance our international competitiveness.

Especially, we have exerted our utmost efforts to establish a sustainable system of our growth, to ensure both clearness and laws in business management and to build a platform of R&D as the control point in our business,

And we will make the foundation of the business through the production maintenance and manufacturing competitiveness about whistle, magnetic compass and GMDSS equipment etc, and look for new strategic partners and plan the quality improvement. Also we will do our best for the discovery of new partners in response to competitor's policy in both technique and price.

As our efforts are visible gradually both to extend sales volume through the upturn readjustment of credit rating and to discover a new item as instruments for our perpetual growth, it is expected that we make an apparent extension for our sale and can settle favorably a composition of a virtuous circle in management for the investment in a new growth engine of fierce future's. As mentioned above, we have responded skillfully in our way about economic slump in shipbuilding market and fierce competition to rival company, it is prospected that the shipbuilding market's environments will be more slowdown and fierce increasingly from now on.

In other to respond in advance to conversion in this environment, we need to change as a market-leading company that is based on the incessant innovation.

For this purpose, Saracom pledges to pursue the following principles in order to overcome the market changes and business difficulties.

First, we will build a creative and innovative corporate culture wherein the staff voluntarily participates through a fundamental improvement of the inefficient factors, as well as the pursuit of ceaseless changes.

Second, we will expedite technological and product innovation. Moreover, we will practice market-based and systemic business management

Third, we will create a stable sales base through transactions with leading domestic shipbuilders and diversification of customers in overseas markets, and build a foundation for the highest profitability in the industry through productivity and quality innovation.

We will maximize our strengths based on our strong will to change and fierce innovation activities, and we will challenge the global market by collectively combining customer discovery and core competencies to create a stable business foundation and establish ourselves as a market leader.

We will set our management policy as ‘change’, ‘innovation’, and ‘challenge’ and unite all employees to transform Saracom into a company with stronger competitiveness, and leap forward to become a technology-based company that changes the market by discovering new growth business engines.

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