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Message from the President & CEO

YUJI ISHII

PRESIDENT DIRECTOR

STRATEGY IMPLEMENTATION TO ACHIEVE TARGETS IN A DIFFICULT ENVIRONMENT IN THE MIDST OF THE COVID-19 PANDEMIC

Even in 2021, the effects of the widespread spread of the COVID-19, had been a difficult year for the whole world including Indonesia, and also for the Company. We express our appreciation to all Stakeholders that have supported our activities.

Our Company strives to continue our business activity while giving full consideration to our employees and their families’ safety and health, and all parts of the Company continue to work to fulfill their responsibilities in supplying products that are indispensable for a hygienic life. In this case, the Company carried out activities such as maintaining the health of every employee, patrolling the entire factory to prevent the spread of the Corona virus, and at the same time we also give out Gotong Royong Vaccines and Vaccines provided by the government, so that almost 100% of employees have been vaccinated for the second time.

In 2021, the world crude oil prices and raw material prices soared, and logistics costs increased. From 2020 to the first semester of 2021, the Company’s sales ratio in General Trade (GT) decreased because of the decrease in operational hours that was caused by the PPKM. However, as a result from steps that was listed above to prevent COVID-19 infections and others, a stable growth can be achieved in all categories through an increase in sales in the rapidly growing minimarket channel, increase in productivity in the production section, launch of new products, and the continuous product innovation for new categories.

ACHIEVING SDGS GOALS BY SUGGESTING “ETHICAL LIVING FOR SDGS” WHICH IS THE CORPORATE SLOGAN

In 2021, the Company announced “Ethical Living for SDGs”, a new lifestyle concept, and started concrete actions to give comfort for many consumers even within the Company.

The goal of Ethical Living for SDGs was to make the Company into a modern and ethical Company that create an environment where everyone gets an environment with easy convenience, and we spread it to all actors of life in Indonesia.

In 2021, we conducted these activities:

Activities to create a prosperous and sustainable environment

  1. With the aim of contributing to the conservation of the Citarum River in West Java Province, the Company donated 1,500 bamboo trees through the Karawang Regency Environmental Service.
  2. To reduce the impact on the environment from the use of plastic bags which is also a global problem, in commemoration of World Environment Day, the Company launched a limitededition product, which uses paper packaging made from 100% recycled “Pulp” material. By launching a product with paper packaging on sanitary napkins "Charm" and "Mask Protect Pollution", it is hoped that it can contribute to reducing plastic waste which is also currently being pursued by the Indonesian government.
  3. In the garbage pile in Indonesia, in addition to mixed organic waste, disposable diapers are also mixed, and by referring to organic waste processing using Black Soldier (Maggot) larvae, the Company has proven that by adding Cellulase (enzyme) larvae to eat disposable diapers on the Pulp, can reduce the amount of waste.
  4. As a sustainable effort, each factory also carries out energy conservation and waste reduction activities to create a more sustainable environment.

Providing the right understanding to consumers

  1. The Company held a webinar in collaboration with the Indonesian National Nurses Association, to promote hygienic and economical "excretory treatment" for low-income people through recommendations and strengthen penetration of the Lifree Care Concept "2pcs Care".
  2. The Company cooperates with the Indonesian Breast Cancer Foundation (YKPI), supporting the "Pink Ribbon Activity" in socializing the importance of early detection of breast cancer through BSE, checking at PUSKESMAS and SADANIS which are also activities recommended by the Indonesian government. Some of the sales were donated to YKPI (Indonesian Breast Cancer Foundation) and used to support YKPI programs, especially the dissemination of screening and early detection of breast cancer as well as the BSE campaign.

Corporate activities that contributes to society

  1. Natural disasters such as landslides, floods, earthquakes and others occur in many parts of Indonesia. For areas affected by disasters such as landslides in Sumedang-West Java, earthquakes in West Sulawesi, floods in South Kalimantan, Subang, Karawang and DKI Jakarta, as well as the eruption of Mount Semeru in Lumajang-East Java, the Company provides donations in the form of products, as a form of Support. As an annual activity to commemorate the founding of the company, the Company visits orphanages and makes product donations to realize the Company's contribution to society through business activities.
  2. With the increasing spread of COVID 19, many hospitals are unable to accept infected patients, as a result the number of patients who have to self-isolate has increased. The Company which has two factories in Karawang Regency, as a form of responsibility to the surrounding area, the Company provides donations in the form of food products and ingredients to parties in need through the Covid 19 Handling Task Force in Karawang Regency.

REALIZING A SOCIETY THAT COEXIST WITH PARTNER ANIMAL (PET)

In Indonesia, the Covid-19 disaster has forced people to exercise restraint and self-limitation, and more and more people are spending time indoors. In the midst of the increasing number of domestic cats and dogs, as the 5th business category, in 2021 the Company entered the pet market. Aiming for owners together with pets to be happy every day by staying healthy and clean, the Company launched Deo-Toilet products for cats and Deo-Sheet for dogs where these products consider the environment in life.

By continuing to contribute to the 17 goals set out in the SDGs and activities tailored to each element in the Ethical Living for SDGs which is the Corporate Slogan, the Company will continue to strive to provide products and services that contribute in protecting the environment and can also solve social problems, so that the Company can contribute to the achievement of the SDGs.

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