filecenter.deltaww.comfilecenter.deltaww.com/IR/download/annual_report/2019annual.pdf · Received...

Received the Global Views Monthly Annual Corporate Social Responsibility

Awards─Annual Honorary Award

Delta received nine major awards in the 2019 Taiwan Corporate Sustainability

Awards held by the Taiwan Institute for Sustainable Energy

Listed on the Dow Jones Sustainability World Index for nine consecutive yearsReceived the Industry Leaders award for the Electronic Equipment, Instruments and Components Industry in the Dow Jones Sustainability Indices (DJSI) four timesListed in the Dow Jones Sustainability Emerging Markets Index for seven consecutive yearsAwarded the gold class rating in the Sustainability Yearbook published by RobecoSAM for the sixth time

CDP Climate Change Leadership Level, Supply Chain Leadership Level, and Water Security Management Level

Selected consecutively for the Morgan Stanley Capital International IndexesMSCI ACWI ESG Leaders IndexMSCI EM (EMERGING MARKETS) ESG Leaders IndexMSCI Taiwan ESG Leaders Index

Selected consecutively for the FTSE4Good IndexesFTSE4Good Emerging IndexFTSE4Good TIP Taiwan ESG Index

Awards and Honors

Honored the ENERGY STAR Sustained Excellence Award in the United States

for the second consecutive year and awarded the ENERGY STAR Partner of the Year

for four consecutive years

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Table of Content 1. Letter to the Shareholders 003

2.CompanyProfile 005

3. Corporate Governance Report 011

3.1 Organization 011 3.2 Directors and Management Team 014 3.3 Remunerationpaidduringthemostrecentfiscalyeartodirectors,thegeneralmanagers, 018

and vice general managers 3.4 Implementation of Corporate Governance 023 3.5 Information on CPA professional fees 057 3.6 Informationonreplacementofcertifiedpublicaccountant 058 3.7 WheretheCompany’schairperson,generalmanager,oranymanagerialofficerinchargeoffinance 058

oraccountingmattershasinthemostrecentyearheldapositionattheaccountingfirmofitscertified publicaccountantoratanaffiliatedenterpriseofsuchaccountingfirm,thenameandpositionofthe person,andtheperiodduringwhichthepositionwasheld,shallbedisclosed

3.8 Anytransferofequityinterestsand/orpledgeoforchangeinequityinterests(duringthemostrecent 059 fiscalyearorduringthecurrentfiscalyearuptothedateofpublicationoftheannualreport)bya director,managerialofficer,orshareholderwithastakeofmorethan10percentduringthemostrecent fiscalyearorduringthecurrentfiscalyearuptothedateofpublicationoftheannualreport

3.9 Relationshipinformation,ifamongtheCompany’s10largestshareholdersanyoneisarelatedparty 060 orarelativewithintheseconddegreeofkinshipofanother

3.10 Thetotalnumberofsharesandtotalequitystakeheldinanysingleenterprisebythecompany, 061 itsdirectorsandmanagers,andanycompaniescontrolledeitherdirectlyorindirectlybythecompany

4.CorporateSocialResponsibility 062

4.1 Balancedinterestsforallstakeholders 063 4.2 Devoted to the environment protection and energy savings 067 4.3 Expandingsocialparticipation 069 4.4 Others 070

5. Capital and Shares 073

5.1 Capital and shares 073 5.2 Issuanceofcorporatebonds 080 5.3 Preferredshares 080 5.4 Issuanceofglobaldepositaryshares 081 5.5 Statusofemployeestockoptionplan 081 5.6 Statusofemployeerestrictedstock 081 5.7 Statusofnewshareissuanceinconnectionwithmergersandacquisitions 081 5.8 Financingplansandimplementation 081

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6.OverviewofBusinessOperations 082

6.1 Adescriptionofthebusiness 082 6.2 Ananalysisofthemarketaswellastheproductionandmarketingsituation 085 6.3 Informationofemployeesemployedforthe2mostrecentfiscalyears,andduringthecurrentfiscal 090

yearuptothedateofpublicationoftheannualreport 6.4 Disbursementsforenvironmentalprotection 090 6.5 Laborrelations 092 6.6 ImportantContracts 098

7.FinancialHighlightsandAnalysis 099

7.1 Financialstatementforthemostrecentfiscalyear 099 7.2 Aparentcompanyonlyfinancialstatementforthemostrecentfiscalyear 247 7.3 Auditcommittee’sreportforthemostrecentyear’sfinancialstatement. 369 7.4 Condensedbalancesheetsandstatementsofcomprehensiveincomeforthepast5fiscalyears 370 7.5 Financialanalysesforthepast5fiscalyears 374 7.6 ThefinancialsituationoftheCompanyanditsaffiliates 376

8.ReviewandAnalysisofFinancialPositionandFinancialPerformance, 377 andRisksAssessment

8.1 Financialposition 377 8.2 Financialperformance 378 8.3 Cashflow 378 8.4 Theeffectuponfinancialoperationsofanymajorcapitalexpendituresduringthemostrecentfiscalyear 379 8.5 TheCompany’sreinvestmentpolicyforthemostrecentfiscalyear,themainreasonsfortheprofits/ 380

lossesgeneratedthereby,theplanforimprovingre-investmentprofitability,andinvestmentplansfor the coming year

8.6 Thesectiononrisksduringthemostrecentfiscalyearandastheystoodonthedateofpublicationof 380 the annual report

8.7 Otherimportantmatters 387

9.AffiliatesInformationandOtherSpecialItems 388

9.1 AffiliatesInformation 388 9.2 Privateplacementofsecuritiesduringthemostrecentfiscalyearorduringthecurrentfiscalyearup 414

tothedateofpublicationoftheannualreport 9.3 HoldingordisposalofsharesintheCompanybytheCompany’ssubsidiariesduringthemostrecentfiscal 414

yearorduringthecurrentfiscalyearuptothedateofpublicationoftheannualreport 9.4 Othermattersthatrequireadditionaldescription 414 9.5 IfanyofthesituationslistedinArticle36,paragraph3,subparagraph2oftheSecuritiesandExchange 415

Act,whichmightmateriallyaffectshareholders’equityorthepriceoftheCompany’ssecurities,has occurredduringthemostrecentfiscalyearorduringthecurrentfiscalyearuptothedateofpublication oftheannualreport,suchsituationsshallbelistedonebyone

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1. Letter to the Shareholders

Dear Shareholders:In2019,theworldeconomyremainedaffectedbytheUS-

China tradewarandoverallmarketdemanddeclined,whichcausedeconomicuncertaintiesandweakenedoverall investorconfidence.Despitedifficultiesandchallengesinthebusinessenvironment,Deltaachievedgrowthintermsofannualrevenueandgrossprofit, thanks to all ofDelta’s teammembers’collectiveefforts.Delta’sconsolidated revenue in2019wasNT$268.1billion,a13%increasefromthepreviousyear;grossprofitwasNT$74.5billion;andgrossprofitmarginwas27.8%,17%higherthanthepreviousyear.ThenetoperatingprofitwasNT$19.4billion,withanetoperatingprofitmarginof7.2%thatincreasedby7%comparedto thepreviousyear.Net incomeaftertaxwasNT$23.1billion,withanetafter-taxprofitmarginof8.6%,whichshowedan increaseof27%compared to thepreviousyear. In2019,Delta’searningspershare(EPS)wasNT$8.90,andreturnonequity(ROE)ratiowas17.10%.

In order to strengthen global production and salesdeployment,aswellas increase sales locations, improvemanufacturingandshippingflexibility,andreduceoperationalrisksdueto the international tradewar,Deltahasobtainedamajorityshareholdings inDeltaElectronics(Thailand)PublicCompanyLimited(DET),a listedcompany inThailand,sinceApril2019andhasadjusteditsproductionlines.Inlinewithitsbusinessgrowth,Delta plans to increase investments inThailandand India in the future tosupply localmarketsandimplementdespersionmanufacturing.These initiativeswouldhelpDeltabecomemoreflexibleincopingwithchangesintheinternationalmarket,getaheadstartonacompetitivebusinessenvironment,andfurtherexpanditsglobalbusinessfootprint.

Here is a summaryofDelta’s performance in variousbusinessfieldsin2019andfutureprospects:

Power ElectronicsDeltahasprosperedgreatlyfromtheresultsofitsbusiness

developmentinpowerelectronicsovertheyears.Notonlyisittheworld’s leader inpowersupplies,brushlessDCfans,andminiaturizedkeycomponents,but ithasalsobeenrecognizedas the “ENERGYSTARPartner of theYear” by theU.S.Environmental Protection Agency for four consecutive years. In addition,Deltahasreceivedthe“SustainedExcellenceAward”for two consecutive years.Tobenominatedby theU.S.Environmental ProtectionAgency is quite a feat since

companies must achieve ENERGY STAR Partner of the Year long-term.Thisawardrecognizestheexcellentenergy-savingfeaturesof theDelta’sBreezventilation fans.Moreover, itrecognizesDelta’s long-termcommitmentto improvingenergyefficiency..

Deltahasbeeninvolvedinautomobileelectronicsforoveradecade.DeltacollaboratedwiththeU.S.DepartmentofEnergytoexplorewide-bandgap-basedbi-directionalon-boardchargermodules in2017,whichenablevehicle-to-loadcapabilities.Delta’s performance in the electronic vehicle industry is also recognizedbytheworld’sleadingcarmanufacturer,FiatChryslerAutomobiles(FCA).Deltawaspresentedthe“2019PowertrainSupplieroftheYear”awardinDetroit,USA,whichhighlightsitsclosecollaborationwithFCA.”

ThepowerelectronicsbusinesshascontributedtoDelta’srevenueandprofitsformanyyears.Inthefuture,Deltaplanstocontinuously innovatebasedon itssolid foundation inpowerelectronicsandcontrol technology,aswellasprovidemoreenergy-savingand intelligent products,while fulfilling itscorporatemission“Toprovide innovative,cleanandenergy-efficientsolutionsforabettertomorrow.

AutomationDeltahasdevelopedits industrialautomationbusinessfor

more than20years.Fromprovidinghighqualityandhigh-efficiency automation equipment in the early stages todeveloping and manufacturing highly intelligent products such asindustrialrobots,roboticvisualsystems,PLCs,CNCmotioncontrol,andothers,Deltahasbeenhelpingcustomers in theautomotiveindustrywithavarietyofvisualizedcontrolplatformsand factorymanagementsystems, includingManufacturingExecutionSystems(MES).In2019,Deltaprovidedanintegratedsolutionforwirelesscommunicationapplications,control,anddrivesforCNCmachinetoolmanufacturersbyconnectingtheirwarehousesystemsandproductionlineequipment.Deltaalsoprovided machine industry customers a visualized system platformandmachinesolutionsbyconnectingallmachiningequipmentforimmediatecollection,monitoring,andanalysisofdata.

To ensure a high degree of competitiveness in intelligent manufacturingand to improveDelta’smanufacturingqualitywhilesatisfyingcustomers’variousneeds,Deltabeganaseriesof in-house intelligent transformationprojectsstartingwithproductresearchanddevelopmentdesign(firststage),followedby assessment and trial production (second stage), andproductionplanning(finalstage).Deltaintroducedaround1300intelligentautomationdevices toChina’sproductionbase in2019,whichreduceddirect laborby16%comparedtothatof2018.Intermsofitsoverallintelligenttransformation,Deltahasincluded80%of itsChinaproduction lines in theCompany’sintelligentmanufacturingplansasof2019.

BuildingautomationisoneofDelta’slong-termstrategiesforbusinessdevelopment. InadditiontoDeltaControls,Loytec,andVivotekInc., in2019DeltaacquiredAmerlux,ahigh-endcommercial lighting solutions provider in North America. With the

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saidacquisition,Delta is set toaccelerate theprocessofdeveloping smart buildings and providing solutions forsustainablecities,furtherexpandingitsglobalbusinessfootprintinbuildingautomation.

With the impactof theUS-China tradewar, theChineseautomationmarketremainedstagnantin2019.However,giventherigidmarketdemanddueto improving industrialstructureandintelligentmanufacturing,webelievethatDelta’sautomationbusinesswillcontinuetobeamainsourceofgrowth for theCompanyinthelong-term.

InfrastructureWiththerapiddevelopmentofglobal internetservicesand

cloudcomputing,therehasbeenanincreasingneedforbigdataapplications,whichdrivesdynamicinfrastructurerelatedtodatacenterconstruction.In2019,DeltacollaboratedwithAlibabatolauncha “PanamaPowerSolution”withahighvoltageDCpower supply.Comparedwith the traditionaldata center,panamapower subverts the traditional IDCpowersupplystructure. Delta creatively infuses the circuit and magnetic circuit,changingmediumvoltage10KVACdirectlyto240VDCwithoutthetraditionalmultiplerepeatersthatintroducemediumvoltagetodirectcurrent, thuscompletingthepowersupply inonestepwithhigherefficiencyandreliability.Deltasavesontheamountofequipmentandconstructionrequiredbyupto40%,improvespowersupplyefficiencyofthedatacenterby3%,andreducesthetotalinvestmentcostofpowersuppliesby20%.

Global telecommunicationoperatorsareactivelypreparingnetworksforthecomingof5Gmobilecommunication.Delta’scommunicationpowersystemsyield98%energyconversionefficiencyandreducethecostofenergyconsumptionby12%.Delta’slithiumbatteriesthatarechargedatnightanddischargedduringthedaycanbeusedtosaveelectricityorcutpeakpower.Delta’spowersupplyand lithiumbatteryproductswith IP65protection levelcanreduceconstructiontimeby70%,supportfastminiaturization for 5G, andmeet flexible expansionrequirementsinthefuture.

In termsof infrastructure, there isaconsistentgrowingdemandfordistributedenergyequipment.Deltaprovidesavarietyof infrastructure solutions using innovative technology that helps citiesandtransportationsystemsachievetheirlow-carbonenergytransformations. In2019,DeltaprovidedacompleteenergystoragesystemsolutionforMitsubishiHeavyIndustriesEngine&Turbocharger,Ltd.(MHIET),acompanyunderMitsubishiHeavyIndustries,Ltd.Thesystemiscurrentlyusedinthetriple-powerdemonstrationpowerstationofMHIET’sfactoryinSagamiharaCity,KanagawaPrefecture,Japan.Deltahasachievedalowercost for itsdistributionsystemthroughacombinationof threetypesofpower:renewableenergy,reciprocatinggenerators,andstoragebatteriesforstabilizingthevolatileoutputofrenewableenergy.

AtDelta,wecarenotonlyaboutdevelopingnewbusinessandnewtechnologies,butalsoaboutmanagingourcompanyinaccordancewithEnvironmental,Social,andGovernance(ESG)standards,andweappointedaChiefSustainabilityOfficer in

2019.Deltahasbeenlistedinthe“DowJonesSustainability™World Index” for nine consecutive years.Wewere alsorecognizedasanindustryleaderforthefourthtimein2019andacknowledgedbyCDPin2016,2017,and2019fortheClimateChangeProgram. Inaddition,Deltawas included inForbesMagazine’sGlobal2000,FTSE4GoodTIPTaiwanESGIndex,andMSCITaiwanESGLeaders Index in2019.Deltaalsoreceived the top “CSRCorporateCitizenAward” fromCommonwealthMagazine,earnedeightmajorrecognitions in2019TaiwanCorporateSustainabilityAwards,andtheworld-class2019GlobalCorporateSustainabilityaward.DeltahasbeenlistedasoneofTaiwan’stop20 internationalbrandsfornineconsecutiveyears.Delta’sbrandvalueincreasedby12%comparedtothatof2018,whichindicatesitsgrowingstrengthasamajorindustrialbrandamongothernominees.

Overtheyears,Deltahasmovedforwardwithaclearandstable long-termstrategicvision,backedby thehardworkingteamamidachangingandchallengingglobalenvironment.

Wethankallofourloyalclients,shareholdersandpartnersfor their continued support. Our management team continues to workalongsideourcolleagues towardsachievingourgoals.Whilepursuingitsoperationalperformanceobjectivesandprofitgoals,Delta isalso invested incorporatesocialresponsibility,makingitaninternationally-respectedcompanythatemployeescantrulybeproudof.

Sincerely,

Chairman

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2. Company Profile

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2.1 Date of Incorporation: August 20, 1975 (Refomed as Company Limited by Shares)

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2.2 Delta Electronics’ Timeline

1971 Apr. FoundedatMin-AnRoad,Sinjhuang,TaipeiCounty,Taiwan,DeltaElectronicsproducesTVcoilsand IntermediateFrequencyTransformers(IFT).

1975 Aug. RegisteredasDeltaElectronics,Inc.

1980 Apr. Startsproducingcomponentsforswitchingpowersupplies.

1981 Jul. StartsmassproductionofEMIFilters.

1983 Mar. Startsmassproductionofswitchingpowersupplies.

1984

Jan. WinsavendorawardfromZenith.

Jan. 5005AisthefirstmodelofPowerSupplytoapplyforULlisting.

Apr. WinsavendorawardfromDigital.

1986Feb. WinsvendorawardsfromRockwellInternational.

Apr. Startsusingsurface-mountingtechnologyinproducingpowersupplies.

1988

Jan. InvestsinDastek,andenterstheworld’smostadvancedthinfilmtechnologyfield

Jun. Starts mass production of DC fans.

Dec. ListedontheTaiwanStockExchange.

1989Mar. Invests inThailand,DeltaElectronics (Thailand)PublicCompanyLimited,manufacturingandsellingcomponents related tocomputersandelectronicequipment.

Aug. EstablishesanR&DLabwithVirginiaPolytechnicInstitute&StateUniversitytodeveloppowersupplieswithhighefficiencyandhighpowerdensity.

1990Apr. WinsvendorawardsfromIBM.

May NamedNo.2inpowersuppliessalesintheU.S.marketbyTrishAssociates.

1991 Nov. WinsavendorawardfromHP.

1992 Jan. StartsmassproductionofpowersuppliesforNotebooks.

1993Apr. WinsvendorawardfromIBM.

Dec. AccordingtoareportfromUSMicro-techConsultant,Delta’sswitchingpowersuppliesranked1stintheUSmarket,andranked5th in

theglobalmarket.

1994

Feb. WinsvendorawardfromNEC.

Jul. AwardedTCP(TotalCertificatedProgram)safetycertificationbyUL.

Sep. Launchescommunicationpowersystems.

1995May Launchesvariable-frequencydrives.

Aug. WinsvendorawardfromGELIGHTING.

1996

Mar. WinsvendorawardfromIntel.

Apr. NamedNo.1supplierofpowersuppliesinboththeglobalandtheU.S.marketsbyMicro-TechConsultant.

Jul. Launchesuninterruptiblepowersystems.

1997Jun. WinsavendorawardfromFujitsu.

Oct. WinsvendorawardsfromcompaniessuchasPanasonic,andMitsubishi.

1998Nov. JhongliPlantisawardedISO14001Certification.WinsvendorawardfromHP.

Dec. UPSsystemwinstheExcellenceAwardofTaiwan

1999Jan. EstablishesDeltaNetworks,Inc.(Taiwan)

Mar. WinsaDellPlatinumSupplierAward.

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2000May JoinstheMassachusettsInstituteofTechnology(MIT)OxygenProjectAlliance

Oct. DongguanPlantisawardedISO14001Certification.

2001

Mar. AwardedbyIntelforoutstandingtechnologyandquality.

May CyntecCo.,Ltd.,Delta’sinvestedcompany,listedontheTaiwanStockExchange.

Jun. WinsvendorawardfromFujitsu.

Dec. WujiangPlantopensinmainlandChinaandisawardedISO9000Certification.

2002

Jan. WujiangPlantpassesTL-9000certification.

Mar. AwardedbyIntelforoutstandingtechnologyandqualityforthesecondyearrunning.

Sep. ReceivesaPS2QualitySupplierAwardfromSony.

Dec. WinsanIntelPreferredQualitySupplierAward.

2003

Mar. WinsvendorawardsfromSamsungandBlack&Decker.

Dec. AwardedBestinCorporateGovernanceinAsiabyAssetmagazine.

Dec. NamedNo.1inglobalpowersuppliessalesbyMicro-TechConsultant.

2004

Jun. Delta’s56”16:9DLPinternalprojectionTVawardedtheGoldAwardofthe12thNationalAwardsforExcellencebythePresidentof

Taiwan.

Aug. WinsvendorawardsfromcompaniessuchasNECandBlack&Decker.

Nov. FoundsDelSolar,acompanydedicatedtotheR&Dandmanufacturingofsolarcells.

Dec. WinstheCiscoSystemsSupplieroftheYearAward.

2005

Jan. Receivesabest-partnerawardfromSony.

Jun. NamedthebestamongtechnologycompaniesintheFirstAnnualCorporateSocialResponsibilityAwardspresentedbyGlobalViewsMagazine.

Nov. Opens a green plant in Tainan.

Dec. WinstheSiemensCommunicationsSupplieroftheYearAward.

Dec. WinsthevendorawardfromBlack&Decker.

2006

Feb. WinstheMicrosoftVendoroftheYearAwardforthethirdyearrunning.

Apr. ReceivestheSonyMostValuableSupplierAward.

Apr. RecognizedwiththehighestratinggradeAforCorporateGovernancebytheTaiwanStockExchange.

Jul. RatedbyStandard&Poor’sasoneofTaiwan’stop50companiesintermsofcreditquality.

Aug. ThenewplantinTainanbecomesthefirstinTaiwantobeawardedaGold-RatedGreenBuildingCertificatefromtheMinistryofInterior.

Nov. WinsvendorawardsfromcompanieslikeFujitsu&Siemens.

Dec. Annualrevenueexceeds100billionwithaconsolidatedrevenueofNT$105.26billionin2006.

2007May Namedthebestamongtechnologycompanies in theAnnualCSRAwardspresentedbyGlobalViewsMagazinefor thethirdyearrunning.

May RatedasanA+companyintermsofInformationTransparencyandDisclosurebytheSecurities&FuturesInstitute.

Nov. RatedasanA+companyinthee-BusinessAssessmentSchemeforEnterpriseoftheMinistryofEconomicAffairs.

2008

Feb. BecomestheonlyChinesecompanytobenamedintheGlobalTop100LowCarbonPioneersofCNBCEuropeanBusinessmagazine.

Mar. ReceivedtheGreenProcurementExcellenceAwardof2007bytheEnvironmentalProtectionAdministrationExecutiveYuan.

Apr. ReceivesaCSRHonorAwardfromGlobalViewsMagazine.

May NamedinBusinessWeek’sInfoTech100.

Oct. WinstheExcellentInnovationAchievementAward,whichisthehighestawardofthe16thIndustrialTechnologyAdvancementAwards

sponsoredbytheMinistryofEconomicAffairs.

Dec. IncludedinForbesAsia’sFabulous50forthesecondyearrunning.

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2009

May Buildsthe1MWrooftopsolarpowersystemfortheMainStadiumoftheWorldGames2009inKaohsiung,Taiwan.

Jun. RankedA+intheInformationDisclosureandTransparencyRankingResults.

Jul. TainanPlant,formerlyGold-Rated,isawardedaDiamond-RatedGreenBuildingCertificate.

Oct. ReceivesanawardatthefirstAsiaPacificFrost&SullivanGreenExcellenceAwards.

Oct. Delta’sboardofdirectorsacquires100%stakeinCyntecthroughshareconversion.

2010

Feb. Winsthe2009GlobalChineseBusiness1000:Top20EnterpriseHonorAward(Taiwan)fromYazhouZhoukan.

May Rankedfirstamongthousandsofelectronicindustryenterprisesforafter-taxnetprofitin2009byCommonWealthMagazine.

Aug. ObtainstheTaiwan’sExcellentBrandAwardorganizedbytheBureauofForeignTrade,MOEA.

Aug. RatedasanA+CompanyforInformationTransparencyandDisclosurebytheSecurities&FuturesInstituteinTaiwan.

Dec. HonoredwithGlobalChineseBusiness1000-BestPerformanceAwardbyYazhouZhoukan.

2011

Jan. Taiwan’sfirstzerocarbonbuilding,Y.S.SunGreenBuildingResearchCenterinNCKU,iscompleted,whichwasdonatedbythefounderofDelta,BruceCheng.

May RudrapurPlantsinIndiawinLEEDGold-ratedGreenBuildingCertificate.

Jun. AwardedTop100AsiaandTaiwanTechnologyCompanybyBusinessNext.

Jul. RecognizedbyInstitutionalInvestorMagazineasBestCEO,BestInvestorRelations,andBestIRProfessionalsinits2011All-AsiaExecutiveTeamRankings.

Jul. AwardedElectricVehicleChargingStationproject fromARTC(AutomotiveResearch&TestingCenter) forbuilding the firstEVChargingstationforEVtestingandverificationinTaiwan.

Jul. DongguanPlant inChinabecomestheworld’sfirstpowerandcomponentselectronicenterprise toofficiallypasstheconformityevaluation for the Energy Management System of the International Organization for Standardization ISO50001.

Aug. RatedasanA+CompanyforInformationTransparencyandDisclosurebytheSecurities&FuturesInstitute.

Sep. SelectedfortheDowJonesSustainability™WorldIndex(DJSIWorld).

Sep. NamedasaTaiwanTop20GlobalBrand.

Sep. DeltaThailand,aDeltaassociatecompany, receives ISO50001:2011certification fromSGS (Thailand)Limited forenergymanagementsystems.ThefirstcompanyinThailandwiththisISOcertificate.

Nov. OpensShanghaiR&DandOperationsCenterBuilding.

Dec. OpensTaoyuanPlant3andR&DCenter.

2012

Feb. DeltaElectronicsFoundationcompletesreconstructionofeco-friendlyNamasiaElementarySchool.

May DeltaEMEAwinstheGoldAwardfromtheBritishGreenOrganization.

May GurgaonPlantinIndiaisrecognizedwithaLEED-IndiaPlatinumCertification.

Jun. RanksA++intheInformationDisclosureandTransparencyRankingResults.

Jun. Deltaannouncesnewmanagement teamwithYanceyHaiappointedasChairmanandPingChengasCEO.Delta’s founderandchairmanBruceChengcontinuestoserveontheboardashonorarychairman.

Aug. TaoyuanTechnologyCenterrecognizedwiththeU.S.A.LEEDGoldCertificationandTaiwanEEWHGoldCertification.

Sep. Selectedfor2012DowJonesSustainabilityIndexesandnamedasaglobalIndustryleaderintheITCElectronicEquipmentsector.

Oct. ReceivestheNationalIndustrialInnovationAwardagain.

Nov. NeoSolarPowerjoinshandswithDeltaGrouptocreatethelargestsolarcellcompanyinTaiwan.

Nov. RankedasoneofThe20MostInnovativeCompaniesinTaiwanfromtheIndustrialDevelopmentBureauoftheMinistryofEconomicAffairs(MOEA).

Nov. Tainanplantwinsthefirstgeneral industrycleanerproductioncertificationofGreenFactoryLabelfromtheIndustrialDevelopmentBureauoftheMinistryofEconomicAffairs(MOEA).

Dec. RanksNo.3forBestIRPracticesforIRMagazine’sGreaterChina2012AwardsandTaiwan’sBestCEOandBestIROfficer.

Dec. DeltaThailand,aDeltaassociatecompany,receivesthePrimeMinisterBESTIndustryAward.

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2013

Jul. RanksNo.4 forTaiwan’sBestCompanies fromInstitutional InvestorMagazineandreceivesTheMostPromisingCompanyfromCorporate Governance Asia Magazine.

Aug. DeltaThailand,aDeltaassociatecompany,winsthe2013ASEANBusinessAwardintheinnovationcategoryforlargecompany.

Oct. DeltaThailand,aDeltaassociatecompany,receivestheCSR-DIWContinuousAwardsandCSR-DIWAwards2013.

Nov. DeltaThailand,aDeltaassociatecompany,receivedtheThailandEnergyAward2013intheenergymanagementteamcategory.

Dec. RecognizedforitsInvestorRelationsandSustainabilityPracticesattheIRMagazine’sGreaterChina2013Awards.

Dec. DeltaShanghaioperationscenterreceivesLEEDGoldCertificationasDelta’s10thcertifiedgreenbuilding.

Dec. Delta’sTaoyuanR&DCenterandTainanPlantPhaseIIbothawardedExcellentGreenBuilding2013recognition.

2014

Jan. TaipeiheadquartersreceivesaTaiwanGreenBuildingCertificateforbuildingrenovation(EEWH-RNDiamond).

Apr. Deltas’Ultra-ShortThrowProjectorWins theTaiwanExcellenceSilverAward.A totalof11DeltaProductswin the2014TaiwanExcellenceAward.

Oct. OnlyGreaterChinacompanynamedtotheCDPClimatePerformanceLeadershipIndex(CPLI).

Oct. DeltaThailand,aDeltaassociatecompany,receivedthePrimeMinister’sBusinessEnterpriseAward2014inthebestexportercategory.

Oct. AwardedCommonwealthMagazine’sMostAdmiredCompanyawardforthe13th consecutive year.

2015

Jan. LaunchesSCARAindustrialrobots.

Jan. Delta-IBNLifeScienceandDiagnosticsLabopensatBiopolis.

Feb. TaoyuanIIFactoryreceivestheEnergyConservationandCarbonReductionActionMark&NorthDistrictEnergyConservationandCarbonReductionSpecialEnterpriseAward.

Mar. RecognizedwithChannelNewsAsia’s2015GreenLuminaryAward.

Apr. RanksA++intheInformationDisclosureandTransparencyRankingResultsforthe4th consecutive year.

Apr. AcquiresEltekASA,aleadingproviderintelecompower,industrialanddatacenterpowersolutions.

Jun. Rankstop5%ofalllistedcompanieswith"TheFirstCorporateGovernanceEvaluationAward"fromtheTaiwanStockExchange.

Aug. Winsthe2015RedDotAwardforProductDesignwithGoldenEagle.

Sep. FirstDeltaChinaCSRReportofficiallygoesonline.

Sep. InvestsinSwissrayGlobalHealthcareHolding,Ltd.with19.55%shareholdings.

Sep. Delta’sWuhanbuildingofficiallyopenswithbothR&DandSalesfunctions.

Oct. OpensDeltaSunshineJuniorHighSchoolinLongmen,Yaan(China).

Oct. DeltaAmericasopensnewheadquartersdesignedasLEEDPlatinumandnetzero.

Nov. VivitekQumiQ6LEDMobileProjectorwins2015JapanG-MarkDesignAward.

Nov. OptovueannouncesUSD30MillionprivateequityinvestmentagreementwithDeltatofuelcontinuedinnovation.

Dec. WinstheMAPECTTAIWANM&AAwardswiththeEltekacquisition.

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2016

Jan. InauguratesfirstproprietarysolarPVplantinAkoCity,Japan.

Mar. Delta’sBeijingofficebuildingrecognizedwithLEED-NCSilvercertification.

Mar. WinsiFDesignAward2016fortheGoldenEagleandNovoPRO&Launcher.

Mar. PresidentMaYing-JeouconfersDeltafounderMr.BruceChengwiththeOrderoftheBrilliantStarforhisoutstandingcontributionstothe country and society.

Apr. Delta’ssubsidiary,DeltaElectronics International (Singapore)Pte.Ltd.,acquiresshareholdings inLOYTEC,anAustrianbuildingautomation company.

Apr. Delta’ssubsidiaryDeltaElectronics(Netherlands)B.V.andDeltaControlsenterintoadefinitiveagreement.

Jun. Delta’sFounderandHonoraryChairmanBruceChengawardedwithanHonoraryDoctorateDegreefromTaipeiMedicalUniversity.

Jun. EstablishestheDelta-NTUCorporateLaboratoryforCyber-PhysicalSystemsinSingapore.

Jun. HonoredwiththeNationalExcellenceAwardfromtheIndianMinistryofNewandRenewableEnergy(MNRE).

Aug. Delta’sheadquartersgreenbuildinginTaipeireceivesLEEDPlatinumcertificationforoperationandmaintenanceofexistingbuildings.

Oct. Delta’ssubsidiaryEltekwinstheNHOInnovationAward2016inNorwayforitsingeniousRectiverterpowerconversionsystem.

Nov. Delta’sFounderandHonoraryChairmanMr.BruceChengreceivesthefirstOutstandingEntrepreneurawardat theGlobalViewsMagazine leaders’ forum.

Nov. Acquires100%shareholdingsinUnicomSystemEng.Corp.

2017

Feb. DeltaThailand,aDeltaassociatecompany,winstheOutstandingCEOAwardsandtheBestCompanyPerformanceAwardfromtheStockExchangeofThailand(SET).

Feb. DeltaArticulatedRobotwinsSilverAwardatthe25thTaiwanExcellenceAwards.

Apr. Announcesorganizationaladjustmenttoaccelerategrowththroughfocuson“PowerElectronics”,“Automation”and“Infrastructure”asmainbusinesscategories.

Apr. Delta’sFounderandHonoraryChairmanBruceChengawardedwithHonoraryDoctorateDegreefromNationalYang-MingUniversity.

Apr. Delta’sEMEAHeadquartersachievesannualenergysavingsupto45%andisawardedBREEAM.

Apr. Earns ENERGY STAR®PartneroftheYearAwardforthesecondconsecutiveyear.

May Winsthreemajorawardsatthe2017GlobalViewsMonthly’sCSRAwards.

Jun. DeltaThailand,aDeltaassociatecompany,receivesESG100Universeforthe3rd consecutive year.

Sep. DeltaAmericasHeadquartersrecognizedwithLivableBuildingsAwardHonorableMention.

Oct. Acquires49.2%stakeinVIVOTEKtostrengthenitsbuildingautomationsolutionsportfolio.

Nov. Delta recognizedwithCarbonDisclosureProject (CDP)ClimateChangeLeadershipA- level,&SupplyChainClimateChangeDisclosureA-grade.

Dec. Delta’ssubsidiaryDELBiowinstheTaiwanExcellenceGoldAwardfortheDELPet-μCT.

Dec. TakestheleadinsettingScienceBasedTargetsasthefirstcompanyinTaiwantopassSBTi.

Dec. SelectedfortheFTSE4GoodTIPTaiwanESGIndex.

010

2018

Mar. ArticulatedrobotDRVserieswinstheiFDesignAward.

Mar. Delta’sDetroitOfficeinauguratesexpandedfacilities.

Apr. ReceivestheR.O.C.(Taiwan)PresidentialInnovationAward.

May WinstheCorporateGovernanceEvaluationAwardfromtheTaiwanStockExchangeforthe4th consecutive year.

May BecomestheonlycompanytwicelistedintheCSRAnnualListofHonorsofGlobalViewsMagazine.

Aug. WinstheCSRAwardfromCommonWealthMagazineforthetwelfthconsecutiveyear,andwinsfirstprizeforthesixthtime.

Sep. BecomesamemberoftheEV100Initiativetopromotelow-carbontransportationworldwide.

Oct. RecognizedattheGreenbuildChina2018conferencewiththeIndustryLeadershipAwardandtheGreenLeadershipAward.

Nov. DeltaAkoEnergyPark’sgreenbuildingisLEED-GoldCertifiedwithenergysavingsupto33.8%.

Nov. WinsNationalTalentDevelopmentAwards.

Nov. InnergiePowerGear™60CwinstheTaiwanExcellenceSilverAward.

Dec. RecognizedwiththeIRMagazineESGCommunicationsAward.

Dec. Delta’sAutomaticNucleicAcidTestSystemwinsthe15thNationalInnovationAward.

Dec. PassesISO27001informationsecuritycertification,andalsoobtainsNPInewproductdevelopmentprocessandITcategory.

2019

Jan. ReceivestheNECPartneroftheYear2018Awardintheenvironmentalcategory.

Mar. SubsidiaryDeltaElectronics(Netherlands)B.V.acquiresa100%stakeinthelightingsolutionbrandAmerlux.

Apr. SubsidiaryDEISGacquiresa42.85%shareholdings inDeltaElectronics (Thailand)PublicCompanyLimited (DET).After theacquisition,Deltaanditssubsidiariesaggregatelyholdashareholdingof63.78%ofthetotalissuedsharesofDET.

May Deltaheadquarters’datacenterisrecognizedastheworld’sfirstLEEDv4ID+CPlatinum-certified.

Jul. Awarded2019PowertrainSupplieroftheYearbyFCAforsuperiorEV/PHEVautomotiveproductcapabilities.

Sep. ListedontheDJSIWorldIndexofDowJonesSustainability™Indicesfornineconsecutiveyears,andagainleadsintheElectronicEquipment,InstrumentsandComponentsIndustrycategoryfor2019.

Oct. HonoredasaTaiwanTop20GlobalBrandfortheninthconsecutiveyear.

Nov. Recognizedwithninemajorawardsatthe2019TaiwanCorporateSustainabilityAwards&GlobalCorporateSustainabilityAwards.

Nov. ZhongliPlantwinstheSilverAwardofthe1stNationalEnterpriseEnvironmentalProtectionAward.

2020

Jan. ReceivesLeadership-levelscoringfromCDPhighlightingDelta’seffortsonclimatechange.

Apr. HonoredwiththeENERGYSTAR®SustainedExcellenceAwardforthethirdconsecutiveyearandalsoawardedpartneroftheyearforthefifthyearinarow.

Apr. WinsfirstprizeintheHappyEnterpriseGroupforOutstandingProjectsatthe2020GlobalViewsMonthly'sCSRAwards.

Apr. Obtainshighestplatinumrating forzerowaste to landfill (UL2799)"100%Diversion,with8%ThermalProcessingwithEnergyRecovery"

011

3. Corporate Governance Report

▲

3.1 Organization

3.1.1 Organization chart as of 2020.04.29

Shareholders Meeting

CEO

Audit CommitteeAudit

Strategic Steering Committee

Function Units

Compensation Committee

President & COO

Global Operations

Asia Power Electronics

Automation

Infrastructure

Europe

Americas

Other Areas

Business Units

Board of Directors Chairman

Vice-Chairman

RD IT

BrandManagement

StrategicMarketing

CorporateInvestment

Facility

CorporateCommunications

OccupationalSafety and Health

Software Engineering Competence

CSR

TQM

GlobalManufacturing

Global Supply Chain

Management

Corporate Strategic Business

Development and Alliance

OccupationalSafety and Health

Finance

HR

Legal/IP

Energy Management

Management System

Smart Manufacturing

012

3.1.2 Tasks of principal divisions.April29,2020

Main Departments Business activities

PowerElectronics

“PowerElectronics” includescomponents,powersupplies,fan&thermalmanagement,automotiveelectronics.Deltaisaglobalproviderofpowerand thermalmanagementsolutions. Itproduceshigh-efficientproductssuchasswitchingpowersupplies,brushlessDCfans,andpassivecomponentsforworld-classcustomersinvarioussegmentsincludingICT,consumerelectronics,aswellasindustrialequipment.ByintegratingDelta’scorecompetenciesinpowerelectronicsandsystems,Deltaisabletosupplypowertrainsystemsandproductsforelectric/hybridvehicles.

Automation

“Automation”includesindustrialautomationandbuildingautomation.Asanindustrialautomationmanufacturer,Deltaoffersefficientandreliableproductsandsolutionstoserveglobalcustomersinvariousapplicationssuchasfood&beveragemanufacturing,textiles,cranesandelevators,plasticsandrubber,printingandpackaging,machinetools,aswellaselectronics.

DeltaprovidesdiverseBuildingAutomationSolutionsthat integratevariousIoT-enabledbuildingsystems,suchasHVAC,lighting,energygeneration,watersupplyanddrainage,elevators,managementsystems,surveillancecameras,andaccesscontroltocreateaflexible,scalableandhighlycompatiblebuildingautomationsolutionplan.

Infrastructure

“Infrastructure” includesICTinfrastructureandenergy infrastructure& industrialsolutions.Delta isamajorproviderof telecompowersystems,UPS&datacenter infrastructureandnetworkingsystemsforglobalcustomers toenableenergy-efficientandreliableICTinfrastructure.Togetherwithitspartners,Deltafacilitatesthedevelopmentofsmartcitesbyprovidingvariousenergyinfrastructure includingrenewableenergy,EVcharging,energystoragesystems,highpowermotordriveandmore.With itsinnovativedisplaytechnologies,Deltaalsoproducesprojectorsandvideowallsolutionsforhometheaters,controlrooms, largeeventvenues,outdoorprojection,exhibitionhallsandmore.Infrastructurealsoincludesindustrialpower,medicalpower,medicaldevices,etc.

RDTheRDdepartmentdoestechnologytrendanalysisandresearchanddevelopmentofnewproducts. Itdrawsupresearchanddevelopmentstrategies,leveloftechnologydevelopment,newproductdevelopmentanditsrelativeenvironmentalrequirementsand structural design.

Finance

Thefinancedepartmentestablishesahighlyefficientandqualityfinancialplatformtoprovidetransparentandreliablefinancialinformation,operationalanalysisand improvementplan.Throughstrictcontrolandaudit,bettercorporatemanagementcanbeachieved.Thisdepartmentprovidesassessmentson long-term investment, loanoptionsand taxplansbasedonrelativeregulations.Thefinancedepartmentdesignsmodulestocontrolcreditrisksandprojectsfinancialriskstoreducethepossibilityofcorporatecrisis. It isalsoresponsiblefor theplanningandestablishmentofsharesrelevantaffairs,arrangementofboardofdirectorsandshareholdersmeetings,assistinginprovidingrelevantinformationandcompliancesneededfordirectorstoperformdutiesandex-rightsprocessing.

Corporate Communications

ProvideDelta’sstakeholderswithcritical,concise, transparent,consistentandreal-time information;promoteourcorporatesocialresponsibilityachievements;andenhanceourcorporateprestige.Ourresponsibilities includenewsthemesmanagementandplanning,corporateexternal/internalwebsitemanagement,showroomplanning,multimediaandgraphicdesignplanning/execution.

HRTheHRdepartmentdesignsanddevelopsahumanresourcemanagementplan toconstructall-aroundcandidateselection,learningandprofessionaldevelopment,performancemanagement,salaryandbenefitsystemsinordertomotivateoutstandingemployees,improveorganizationalefficiency,andsecurehealthylaborrelations.

Legal/IP Thisdepartmentreviewsallcontracts,provides legalcounseling,managespatents, trademarksandother intellectualpropertyrightsanddealswiththehandlingoflegalaffairssuchaslawsuitsandregulationcompliance.

ITTheITdepartmentworksonplanningandestablishingthecompany’sinformationmanagementsystem.It isalsoresponsibleforcomputerizingoperationalproceduresandsystemforbusinessdevelopmentactivitiesandsafeguardingthecompany’sinformationcommunicationsystemtoensuresystemsecurityandefficientlyprovidemanagersrelativeinformationfordecision-making.

Brand Management

Thisdepartmentcarriesoutlong-termplanningandexecutionofbrandingstrategies,establishesthecorporatebrandmanagementplatformandconstructsstandardbrandapplicationsamples tocreateandupholdaconsistent imageofDelta.ThestrategicimprovementofDelta’sbrandvalueleadstodirectassistanceinbusinessgrowthanddevelopmentofthecompany.

Strategic Marketing

Thedepartmentassists thecompany’smarketingcapacityandstrategiesforbusinessdevelopment.Thedepartment integratesmarket informationprovidedthroughthinks tanksandmarketingplatformstocreateactual results frommarketingactivities. Itisalsoresponsiblefor theprovisionofstrategicrecommendationsandcross-sectionalresource integrationthroughsystematicmanagementmechanismsandprocedurestospeedupthebusinessdevelopmentpace.

CSR

CorporateSustainabilityDevelopment:To fulfillDelta'scompanymission"Toprovide innovative,clean,andenergy-efficientsolutionsforabettertomorrow”andtoenhanceourcompetitiveness,weanalyzeinternationaltrendsandbenchmarkpracticesinsustainabledevelopment,strengthenlinkagewithglobalsustainabilityissues,deploysustainabilitystrategiesandplanningviatheDeltaGroupCSRcommittee,andfacilitatecross-functionaloperationsandoverallprojectexecutions.

Occupational Safety and Health

Thedepartmentdevelops,plans,monitorsandpromotesworkplacesafetyandhealthmanagementstandards,aswellasprovidestraining on protocol execution to relative departments.

Corporate Investment

Thedepartment is responsible for relationestablishmentandmaintenancebetween thecompanyand the investorsandinstitutions.Itworksonintegratinginternalresourcestoseekpotentialtargetsforthecorporationandtheexecutionofmergersinaccordancewiththefuturedevelopmentofthecompany.

Audit Theauditdepartmentsupervisesallinternalcontrolandestablishesauditprocessestocompletetheannualaudit.

TQM Thequalitycontroldepartmentestablishesqualitystandards,designsqualityassurancestrategies for rawmaterialsandfinalproductsandmanagesqualityimprovementactivities.

013

Main Departments Business activities

GlobalSupply Chain Management

Thedepartmentisinchargeofplanningandoperationsmanagementofallbusinessunits,keyelectronicsandsupplierstrategies,purchaseprocessandsystembuilding,aswellasgloballogisticplanningandoperations.

GlobalManufacturing

Thedepartmentensuresproductionandresourceeffectivenessofglobalmanufacturingsupplychains,managesthedevelopmentofglobalsmartmanufacturingandtechnology,globalRBAorganizations,andoperationsaswellasrelatedprojectsthatpromoteglobalmanufacturingregions.

Corporate Strategy,Business

Development and Alliance

Thedepartmentmanagescorporatestrategies,customersandglobalcustomers,andestablishesoperationalpolicesforglobalsales and resource planning.

Energy Management

Thedepartmentprovidesenergyefficiencyimprovementservicestoincreasetheenergyefficiencyinpublicfacilities,informationcenters,buildingsandfactories.

KnowledgeManagement

Thedepartmentworkson thecollectionand integrationofpersonalexperienceandknowledge toconstructaknowledgemanagementplatforminordertoenableknowledgesharinganddisseminationofinformation.

Smart Manufacturing

Thedepartment isresponsiblefor thedesignofDelta’sfutureblueprintof intelligentfactoryandthedevelopmentof theworld’sleading intelligent manufacturing technology.

SoftwareEngineering Competence

Thedepartmentestablishesasoftwaredevelopmentprocessautomationplatformandcommonsoftwareelement library toimprovethequalityofsoftwaredevelopmentandincreasethereuseratioofsoftwareelementsinordertoavoidrepetitiveworksindevelopment.

Facility Thedepartmentmanagesandmaintainsthebuildingandthepublicfacilitiesinthefactorytoensureasafeworkingenvironmentandtoexecuteenergysavingmeasuresinordertoseekcontinuousrecognitionthroughgreenbuildingcertification.

014

▲

3.2

Dire

ctor

s an

d M

anag

emen

t Tea

m

3.2.

1 D

irect

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April12,2020

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--

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aiwan;

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MJune11

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3June8

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Ph.D.Strategic

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one

016

Professional qualifications and independence analysis of directorsApril29,2020

Criteria

Name

MeetOneoftheFollowingProfessionalQualificationRequirements,Togetherwithat

LeastFiveYearsWorkExperienceIndependenceCriteria(Note)

NumberofOtherPublicCompanies in Which the Individual is Concurrently Serving as an Independent

Director

An Instructor or HigherPositionin a Department ofCommerce,Law,Finance,Accounting,or

Other Academic Department Related to

the Business Needs of the Company in aPublicor

PrivateJuniorCollege,

College or University

AJudge,PublicProsecutor,Attorney,

CertifiedPublicAccountant,

or Other Professional or Technical

Specialist Who has Passed a National

Examination and beenAwardedaCertificateina Profession

Necessary for the Business of the Company

HaveWorkExperience

in the Areas of

Commerce,Law,

Finance,orAccounting,

or OtherwiseNecessary

for the Business

of the Company

1 2 3 4 5 6 7 8 9 10 11 12

YanceyHai V V V V V V V V V V 1

MarkKo V V V V V V V V V 0

BruceCHCheng V V V V V V V V 0

Ping Cheng V V V V V V V 0

Simon Chang V V V V V V V V V 0

AlbertChang V V V V V V V V V V V V 0

Victor Cheng V V V V V V V V 0

Yung-ChinChen V V V V V V V V V V V V V V V 1

George Chao V V V V V V V V V V V V V 0

Tsong-PyngPerng V V V V V V V V V V V V V V V 0

Ji-RenLee V V V V V V V V V V V V V V 3

Note:Pleasetickthecorrespondingboxesthatapplytothedirectorsorsupervisorsduringthetwoyearspriortobeingelectedorduringthetermofoffice. 1.NotanemployeeoftheCompanyoranyofitsaffiliates. 2.Notadirector,supervisoroftheCompanyoranyofitsaffiliates(doesnotapplywhenanindependentdirectoroftheCompanyhasservedasanindependentdirectorofthe

parentcompany,asubsidiary,oranyofitsaffiliatesinaccordancewiththeActorlocalregulations.) 3.Notanatural-personwhoholdsshares,togetherwiththoseheldbytheperson’sspouse,minorchildren,orheldbythepersonunderothers’names,inanaggregateamount

of1%ormoreofthetotalnumberofissuedsharesoftheCompanyorrankinginthetop10inholdings. 4.Notaspouse,relativewithintheseconddegreeofkinship,orlinealrelativewithinthethirddegreeofkinship,ofamanagerialofficerunder(1)oranyofthepersonsin(2)

and(3). 5.Notadirector,supervisor,oremployeeofacorporateshareholder thatdirectlyholdsfivepercentormoreof thetotalnumberof issuedsharesof theCompany,or that

ranksamongthetopfiveinshareholdings,orthatdesignatesitsrepresentativetoserveasadirectororsupervisoroftheCompanyunderArticle27,paragraph1or2oftheCompanyAct(doesnotapplywhenanindependentdirectoroftheCompanyhasservedasanindependentdirectoroftheparentcompany,asubsidiary,oranyofitsaffiliatesinaccordancewiththeActorlocalregulations).

6.NotthesamepersonwhocontrolsamajorityoftheCompany'sdirectorseatsorvotingsharesandthoseofanyothercompany:adirector,supervisor,oremployeeofthatothercompany(doesnotapplywhenanindependentdirectorof theCompanyhasservedasan independentdirectorof theparentcompany,asubsidiary,oranyof itsaffiliatesinaccordancewiththeActorlocalregulations).

7.Notthesamepersonoritsspouseasthechairperson,generalmanager,orpersonholdinganequivalentpositionintheCompanyandapersoninanyofthosepositionsatanothercompanyorinstitution:adirector(orgovernor),supervisor,oremployeeofthatothercompanyorinstitution(doesnotapplywhenanindependentdirectoroftheCompanyhasservedasanindependentdirectoroftheparentcompany,asubsidiary,oranyofitsaffiliatesinaccordancewiththeActorlocalregulations).

8.Notadirector,supervisor,officer,orshareholderholdingfivepercentormoreoftheshares,ofaspecifiedcompanyorinstitutionthathasafinancialorbusinessrelationshipwiththecompany(doesnotapplywhenaspecifiedcompanyorinstitutionthatholds20percentormoreandnomorethan50percentofthetotalnumberofissuedsharesoftheCompany,andwhenanindependentdirectoroftheCompanyhasservedasanindependentdirectoroftheparentcompany,asubsidiary,oranyofitsaffiliatesinaccordancewiththeActorlocalregulations).

9.Notaprofessional individualwho,oranowner,partner,director,supervisor,orofficerofasoleproprietorship,partnership,company,or institutionthat,providesauditingservicestotheCompanyoranyaffiliateoftheCompany,orthatprovidescommercial,legal,financial,accountingorrelatedservicestotheCompanyoranyaffiliateoftheCompanyforwhichtheproviderinthepast2yearshasreceivedcumulativecompensationunderNT$500,000,noraspousethereof;provided,thisrestrictiondoesnotapplytoamemberofthecompensationcommittee,publictenderofferreviewcommittee,orspecialcommitteeformerger/consolidationandacquisition,whoexercisespowerspursuanttotheSecuritiesandExchangeActortotheBusinessMergersandAcquisitionsAct.

10.Nothavingamaritalrelationship,orarelativewithintheseconddegreeofkinshiptoanyotherdirectoroftheCompany. 11.NotbeenapersonunderanyoftheconditionsdefinedinArticle30oftheCompanyAct. 12.Notagovernmental,juridicalpersonoritsrepresentativeasdefinedinArticle27oftheCompanyAct.

017

3.2.

2 M

anag

emen

t tea

mAp

ril29,2019

Title

Nat

iona

lity

Nam

eG

ende

rD

ate

Effective

(Note1)

Shar

ehol

ding

Spouse&Minor

Shar

ehol

ding

Shar

ehol

ding

byNom

inee

Arra

ngem

ent

Experience(Education)

Oth

er P

ositi

on

Managerswhoare

SpousesorW

ithinTwo

DegreesofKinship

Not

e

Shar

es%

Shar

es%

Shar

es%

Title

Nam

eR

elat

ion

Cha

irman

in S

trate

gic

Stee

ring

Com

mitt

ee

ofDeltaElectronics,

Inc.

TWYanceyHai

MAu

gust

16,2012

984,067

0.0379

00

00

MSGlobalM

anagem

ent,Universityof

Dallas,U.S.A./CountryManager,G

.E.

Capital,Vice-Chairm

anandCEO

,Delta

Electro

nics,Inc.

Director,C

TCI

Corporation;

IndependentD

irector,

USICorporation,

com

pens

atio

n committeemem

ber,

TaiwanSem

iconductor

Man

ufac

turin

g C

ompa

ny

Limited,etc.

--

--

Vice-Chairm

anin

Stra

tegi

c St

eerin

g C

omm

ittee

of D

elta

Electro

nics,Inc.,

TWMarkKo

MAu

gust

16,2012

837,630

0.03

220

00

0

Dep

artm

ent o

f Ele

ctric

al a

nd C

ontro

l En

gineering,NationalC

hiaoTung

University/P

residentandCOO,D

elta

Electro

nics,Inc.

Director,D

elta

Electro

nics(T

hailand)

PublicCom

panyLimited,

etc.

--

--

CEO

TWPi

ng C

heng

MJune

28,2012

55,640,093

2.14

200

00

0

DepartmentofB

usinessAd

ministra

tion,

CaliforniaStateUniversity,H

ayward

/SeniorV

ice-President,D

elta

Electro

nics,Inc.andPresidentin

GreaterChinaArea,DeltaElectronics,

Inc.

Director,D

elta

Electro

nics(T

hailand)

PublicCom

panyLimited,

etc.

--

--

Pres

iden

t and

CO

OTW

Sim

on

Cha

ngM

July3,

2017

903,811

0.0348

517

00

0EM

BA o

f Chu

ng Y

uan

Chr

istia

n University/S

eniorV

ice-Presidentand

President,DeltaElectronics,Inc.

Director,Be

taceraInc.,

etc.

--

--

Vice-President

Man

ager

TWSt

even

Liu

MJune28,

2012

250,027

0.0096

69,172

0.00

270

0

DepartmentofM

echanicalEngineering,

NationalKaohsiungUniversityofScie

nce

andTechnology/C

hairm

anandCEO

,CyntecCo.,Ltd.

Chairm

anCyntecCo.,

Ltd.,etc.

--

--

CorporateCFO

TWJudyW

ang

FAu

gust1,

2013

38,572

0.00

150

00

0

MSFinance,NationalTaiwanUniversity,

BachelorofA

ccounting,Soochow

University/V

ice-presidentandCFO

,DeltaElectronics,Inc.

Director,D

elta

Elec

troni

cs In

t’l

(Singapore)P

te.Ltd.,

etc.

--

--

Bran

ch M

anag

er

TWC

harle

s Ts

aiM

October

28,2005

00

00

00

Ph.D

.,DepartmentofE

lectrical

Engineering,NationalC

hengKung

University

--

--

-

Com

pany

Sec

reta

ryTW

Shal

in C

hen

FAp

ril29,

2019

3,105

00

00

0DepartmentofA

ccounting,C

hung

YuanChristianUniversity/D

irector,

Pricew

aterhouseC

oopers,Taiwan

Supervisor,CyntecCo.,

Ltd.,etc.

--

--

Note1:Mem

bersinmanagem

entteamhavetakenoffi

cefrom

dateofeffective

tonow

.

018

▲

3.3

Rem

uner

atio

n pa

id d

urin

g th

e m

ost r

ecen

t fisc

al y

ear t

o di

rect

ors,

the

gene

ral m

anag

ers,

and

vic

e ge

nera

l man

ager

s

3.3.

1 R

emun

erat

ion

paid

to d

irect

ors

and

inde

pend

ent d

irect

ors

Un

it:NT$

1,000

Title

Nam

e

Dire

ctors

Rem

uner

ation

RatiooftotalA,B,Can

dD

toNe

tIncome(No

te10)

Rem

uner

ation

Rec

eived

as E

mplo

yee

RatiooftotalA,B,C,D,E,

FandG

toNetInc

ome

(Note

10)

Rem

uner

ation

fro

m In

veste

d Co

mpa

nies

Othe

r Tha

n Subsidiaries

or P

aren

t Co

mpa

ny

(Note

11)

Remuneration(A)

(Note

2)Pension

(B)

RemunerationtoDirecto

rs(C)

(Note

3)Allow

ances(D)

(Note

4)

Salary,Bonusa

ndSpecial

Allow

ance

(E)(N

ote5)

Pens

ion(F)

Emplo

yeeB

onus(G

)(Note

6)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The

Com

pany

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)

The C

ompa

ny

All C

ompa

nies i

n Th

e Con

solio

dated

Fin

ancial

State

ments(Note

7)Th

e Co

mpa

ny

All C

ompa

nies

in Th

e Co

nsoli

odate

d Fin

ancial

State

men

ts (Note

7)Ca

sh

Stock

Cash

Stock

Chair

man

YanceyHai

00

00

16,40

017,11

00

00.0

7%0.0

7%39,51

939,51

9809

809

133,3

520

147,5

270

0,82%

0.89%

770

Vice

Ch

airm

anMarkK

o

Dire

ctor

BruceC

H Ch

eng

Dire

ctor

Ping

Che

ng

Dire

ctor

Sim

on C

hang

Dire

ctor

AlbertCh

ang

Dire

ctor

Victo

r Che

ng

Indep

ende

nt Di

recto

rGe

orge

Cha

o

00

00

13,00

014,00

00

240.0

6%0.0

6%0

00

00

00

00.0

6%0.0

6%0

Indep

ende

nt Di

recto

rYung-Chin

Ch

en

Indep

ende

nt Di

recto

rTsong-Pyng

Pe

rng

Indep

ende

nt Di

recto

rJi-Re

nLee

1.DirectorsandIndependentD

irectors’remunerationpolicies,procedures,standardsandstru

cture,aswe

llasthelinkagetore

sponsib

ilities,risksandtim

espent:

Accordingtoth

eCo

mpany’sArticlesofAssociation,ifth

eCo

mpanym

akesprofitsforthecurrentyear,theBo

ardofDirectorsshallresolveontheallocationofnomorethan1%asthecompensationford

irectors.Rem

unerationford

irectorsofth

eCo

mpanyshallbe

evaluatedbytheCo

mpensationCo

mmitteeaccordingtotheirrespective

participationinoperationandvalueofcontribution,andtheBo

ardofDirectorsisauthorize

dtodeterminetheirrem

unerationaccordingtotheevaluationmadebytheCo

mpensationCo

mmitteeand

generalstandardinth

esameindustries.Therem

aybeadifferenceinth

eremunerationofindependentd

irectorsandnon-independentd

irectorsduetodouble-dutyperformanceinth

eAu

ditC

ommitteeandCom

pensationCo

mmittee.T

here

munerationofindependent

directorswh

oserveasfunctionalcom

mitteechairpersonsmaybehigherthanthatofotherindependentdirectors.

2.Exceptasdisclosedintheabovetable,re

munerationtodirectorsreceive

dduetotheservice

provid

edtoallc

ompanieslis

tedintheconsolidatedfinancialstatement(suchasbeingindependentconsultants,etc.)inthemostrecentyear:No

ne.

019

TableofRemunerationRanges

Range of Remuneration Paid to Directors

Names of Directors

AggregateofFirstFourItemsofRemunerations(A+B+C+D)

AggregateofFirstSevenItemsofRemunerations(A+B+C+D+E+F+G)

The Company (Note8)

All Companies in The Consolidated

FinancialStatements (Note9)H

The Company (Note8)

All Companies in The Consolidated

FinancialStatements (Note9)I

BelowNT$1,000,000 PingCheng,SimonChang,VictorChengPingCheng,SimonChang,VictorCheng

NT$1,000,000(incl.)toNT$2,000,000(notincl.)

NT$2,000,000(incl.)toNT$3,500,000(notincl.)AlbertChang,Tsong-PyngPerng,Ji-RenLee

AlbertChang,Tsong-Pyng Perng

AlbertChang,Tsong-PyngPerng,Ji-RenLee

AlbertChang,Tsong-Pyng Perng


BruceCHCheng,YanceyHai,MarkKo,Yung-ChinChen,George Chao

BruceCHCheng,YanceyHai,MarkKo,Yung-ChinChen,GeorgeChao,Ji-RenLee

BruceCHCheng,Yung-ChinChen,George Chao

BruceCHCheng,Yung-ChinChen,GeorgeChao,Ji-RenLee



NT$15,000,000(incl.)toNT$30,000,000(notincl.) Victor Cheng Victor Cheng

NT$30,000,000(incl.)toNT$50,000,000(notincl.)YanceyHai,MarkKo,PingCheng,SimonChang

YanceyHai,MarkKo,PingCheng,SimonChang

NT$50,000,000 (incl.) toNT$100,000,000 (notincl.)

AboveNT$100,000,000

Total 11 persons 11 persons 11 persons 11 persons

Note1: Thenamesof thedirectorsshallbe listedseparately(the legalpersonshareholdershallbe listedwithboth itsnameandtherepresentative’sname),anddirectorsandindependentdirectorsshouldbelistedseparately.Theamountofeachpaymentshallbedisclosedinasummarymanner.

Note2: Theremunerationofdirectorsinthelatestyear(includingdirectors’remuneration,dutyallowances,pension,bonuses,rewards,etc.).Note3: Theamountofdirectors’remunerationapprovedbytheBoardofDirectorsinthemostrecentyear.Note4: Referstotheexpensesincurredbydirectorstoperformrelevantdutiesincludingtransportationallowances,specialallowances,otherallowances,accommodation,company

cars,andothersuppliesforthedirectorsinthemostrecentyear.Thekindandcostoftheassetsprovided,theactualpricesorfairmarketvaluesoftherent,oilandotherpaymentsshouldbedisclosediftheCompanyprovideshousing,automobilesandothermeansoftransportorexclusiveindividualexpenses.Ifthereisadriver,pleasenotethecompany’spaymentforthedriver,butnotincludedinremuneration.

Note5: Referstotheemoluments,dutyallowances,pensionpay,bonuses,rewards, transportationallowances,specialallowances,otherallowances,accommodation,companycars,andothersuppliesforthedirectorsactconcurrentlyasemployeesincludingpresident,vice-president,othermanagersandemployeesinthemostrecentyear.Thekindandcostoftheassetsprovided,theactualpricesorfairmarketvaluesoftherent,oilandotherpaymentsshouldbedisclosediftheCompanyprovideshousing,automobilesandothermeansof transportorexclusive individualexpenses. If there isadriver,pleasenotetheCompany’spayment for thedriver,butnot included inremuneration.ThesalaryexpensesarerecognizedinaccordancewithIFRS2“Share-basedpayment”,includingsharesacquiredunderemployeestockoption,restrictednewsharestoemployeesandsharesacquiredfromparticipationincashcapitalincreaseoptionandsoforth.Theyshallalsobeincludedintheremuneration.

Note6: Ifthedirectorsactconcurrentlyasemployees(includingpresident,vice-president,othermanagersandemployees)whoreceiveemployeeemolument(includingstockandcash),theamountofremunerationapprovedbytheBoardofDirectorsinthelatestyearshallbedisclosed.Ifitisunpredictable,theestimatedamountofthisyearwillbecalculatedbasedontheproportionoftheactualdistributionamountlastyear.Andtheattachedsheet1-3shallbefilledout.

Note7: Totalamountofremunerationforthedirectorspaidbyallcompanies(includingtheCompany)intheconsolidatedfinancialstatementsoftheCompanyshallbedisclosed.Note8: TotalamountofremunerationforeachdirectorpaidbytheCompanywithdisclosureofthedirectors’namesinthecorrespondingbrackets.Note9: ItshalldisclosetotalremunerationforeachdirectorsoftheCompanypaidbyallcompanies(includingtheCompany)intheconsolidatedfinancialstatements,anddisclose

thenamesofthedirectorsinthecorrespondingbrackets.Note10:NetIncomereferstotheprofitafterincometaxofparentcompanyonlyfinancialstatementsinthemostrecentyear.Note11:a.Thiscolumnshouldclearlybefilledoutwith theremunerationamountrelated to invstedcompaniesother thansubsidiariesorparentcompanyfordirectorsof the

Company.b.IfthedirectorsoftheCompanyreceivetheremunerationfromtheinvestedcompaniesotherthansubsidiariesorparentcompany,theremunerationshallbemergedwith

thecolumnIof theemolumentbracketsheet;andthenameofthecolumnshallbechangedto“RemunerationfromInvestedCompaniesOtherThanSubsidiariesorParent Company”.

c.Remunerationreferstotheemolument(includingemployees,directorsandsupervisorsemoluments)andbusinessoperationexpense,etc.,fordirectorsoftheCompanyastheyaredirectors,supervisorsormanagersofinvestedcompaniesotherthansubsidiariesorparentcompany.

＊ThecontentoftheremunerationdisclosedinthissheetisdifferentfromtheconceptoftheIncomeTaxAct.Therefore,thepurposeofthissheetisonlyforinformationdisclosurebutnotforwithholdongtax.

3.3.2 Remuneration paid to supervisors and remuneration range:Notapplicable.

020

3.3.

3 R

emun

erat

ion

paid

to g

ener

al m

anag

ers

and

vice

gen

eral

man

ager

sUn

it:NT$

1,000

Title

Nam

e

Rem

uneration(A)

(Note2)

Pension(B)

Bonu

s an

d Sp

ecia

l Allowances

(C)

(Note3)

Empl

oyee

Bon

us

(D)

(Note4)

Ratiooftotal(A

),(B),(C)a

nd

(D)toNetIncome(%

)(Note8)

Rem

uner

atio

n fro

m In

vest

ed

Com

pani

es o

ther

thanSubsidiaries

or P

aren

t C

ompa

ny

(Note9)

The

Com

pany

All C

ompa

nies

In

The

C

onso

lidat

ed

Financial

Stat

emen

ts

(Note5)

The

Com

pany

All

Com

pani

es

In T

he

Con

solid

ated

Financial

Stat

emen

ts

(Note5)

The

Com

pany

All

Com

pani

es

In T

he

Con

solid

ated

Financial

Stat

emen

ts

(Note5)

The

Com

pany

All C

ompa

nies

In

The

Con

solid

ated

Financial

Statem

ents(Note

5)

The

Com

pany

All C

ompa

nies

In

The

Con

solid

ated

Financial

Statem

ents(N

ote

5)C

ash

Stock

Cas

h Stock

Cha

irman

in

Stra

tegi

c St

eerin

g C

omm

ittee

of

Del

ta

Electronics,Inc.

YanceyHai

33,085

38,189

701

759

1,930

2,650

123,313

0157,847

00.69%

0.86%

60

Vice-Chairm

an

in S

trate

gic

Stee

ring

Com

mitt

ee

Com

mitt

ee

of D

elta

Electronics,Inc.,

MarkKo

CEO

Ping

Che

ng

Pres

iden

t and

C

OO

Sim

on C

hang

Vice-President

Stev

en L

iu

*Jobpositio

nsequiva

lenttogeneralmanagersandvic

egeneralm

anagers(ex:presid

ents,C

EO,executivepresidents,etc.)shouldbedisclosedwh

ateverthetitlesare.

TableofRem

unerationRanges

021

Range of Remuneration Paid to General ManagersandVice-GeneralManagers

NamesofGeneralManagersandVice-GeneralManagers

TheCompany(Note6) All companies in The Consolidated FinancialStatements(Note7)E

BelowNT$1,000,000 Steven Liu








YanceyHai,MarkKo,PingCheng,SimonChang

YanceyHai,MarkKo,PingCheng,SimonChang,StevenLiu


AboveNT$100,000,000

Total 5 persons 5 persons

Note1: Thenamesofthegeneralmanagersandthevice-generalmanagersshallbeseparatelylisted,andtheamountofeachpaymentshallbedisclosedinasummarymanner.Note2: Filledwithemoluments,dutyallowancesandpensionofgeneralmanagersandvice-generalmanagersinthemostrecentyear.Note3: Referstothebonuses,rewards,transportationallowances,specialallowances,otherallowances,accommodation,companycars,andothersuppliesforthegeneralmanagers

andvice-generalmanagersinthemostrecentyear.Thekindandcostoftheassetsprovided,theactualpricesorfairmarketvaluesoftherent,oilandotherpaymentsshouldbedisclosedif theCompanyprovideshousing,automobilesandothermeansoftransportorexclusiveindividualexpenses.If thereisadriver,pleasenotetheCompany’spaymentforthedriver,butnotincludedinremuneration.ThesalaryexpensesarerecognizedinaccordancewithIFRS2“Share-basedpayment”,includingobtainingemployeestockoptioncertificatesandrestrictedstockawards,andparticipatingincashcapitalincreaseandsubscriptionofshares.Theyshallalsobeincludedintheremuneration.

Note4: Theamountofremuneration(includingstockandcash)oftheemployeeswhohavebeenassignedasmanagersbytheboardofdirectors inthemostrecentyear. If it isunpredictable,theestimatedamountofthisyearwillbecalculatedbasedontheproportionoftheactualdistributionamountlastyear.Andtheattachedsheet1-3shallbefilledout.

Note5: Totalamountofremunerationforthegeneralmanagersandvice-generalmanagerspaidbyallcompanies(includingtheCompany)listedintheconsolidatedfinancialstatementsoftheCompanyshallbedisclosed.

Note6: Totalamountofremunerationforeachgeneralmanagerandvice-generalmanagerpaidbytheCompanywithdisclosureofthenamesofgeneralmanagersandvice-generalmanagersinthecorrespondingbrackets.

Note7: Itshalldisclosetotalremunerationforeachgeneralmanagersandvice-generalmanagersoftheCompanypaidbyallcompanies(includingtheCompany)intheconsolidatedfinancialstatements,anddisclosethenamesofthegeneralmanagersandthevice-generalmanagersinthecorrespondingbrackets.

Note8: Netincomereferstotheprofitafterincometaxofparentcompanyonlyfinancialstatementsinthemostrecentyear.Note9: a.Thiscolumnshouldclearlybefilledoutwiththeremunerationamountrelatedtoinvestedcompaniesotherthansubsidiariesforgeneralmanagersandvice-generalmanagers

of the Company. b.Ifthegeneralmanagersorvice-generalmanagersoftheCompanyreceivetheemolumentsfromtheinvestedcompaniesotherthensubsidiaries,theremunerationshallbe

mergedwiththecolumnEoftheremunerationbracketsheet;andthenameofthecolumnshallbechangedto“RemunerationfromInvestedcompaniesandparentcompany” c.Remunerationreferstotheemolument(includingemployee,directorandsupervisor’semoluments)andbusinessoperationexpense,etc.generalmanagersandvice-general

managersoftheCompanyastheyaredirectors,supervisorsormanagersofinvestedcompaniesotherthansubsidiaries.＊ThecontentoftheremunerationdisclosedinthissheetisdifferentfromtheconceptoftheIncomeTaxAct.Therefore,thepurposeofthissheetisonlyforinformationdisclosurebutnotforwithholdingtax.

3.3.4 Earnings distribution as empolyees' remuneration to management teamUnit:NT$1,000

Title (Note1)

Name (Note1) Stock Cash Total

Percentage of the Total to NetIncome(%)

Managers

Chairman in Strategic Steering Committee YanceyHai

0 185,029 185,029 0.80%

Vice-ChairmaninStrategicSteeringCommittee MarkKo

CEO Ping Cheng

President and COO Simon Chang

Vice-President Steven Liu

CorporateCFO JudyWang

Branch Manager Charles Tsai

Company Secretary Shalin Chen

Note1: Individualnamesandtitlesshouldbedisclosed,buttheprofitdistributioncanbedisclosedinasummarymanner.

022

Note2: Theamountof remuneration(includingstockandcash)of theemployeeswhohavebeenassignedasmanagersby theboardofdirectors in the latestyear. If it isunpredictable,theestimatedamountofthisyearwillbecalculatedbasedontheproportionoftheactualdistributionamountlastyear.Netincomereferstotheprofitafterincometaxinthelatestyear;iftheInternationalFinancialReportingStandardhasbeenadopted,thenetincomereferstotheprofitafterincometaxofparentcompanyonlyfinancialstatementsinthemostrecentyear.

Note3: Theapplicationscopeof“manager”inaccordancewiththeRegulationNo.0920001301announcedbytheFinancialSupervisonyCommissiom,R.O.C.(Taiwan)onMarch27,2003isasfollows:

(1)Generalmanagerandequivalent

(2)Vice-generalmanagerandequivalent

(3)Associategeneralmanagerandequivalent

(4)Headoffinancedepartment

(5)Headofaccountingdepartment

(6)Otherpersonwhohavetherightstomanageaffairsandsignforthecompany

3.3.5 Separately compare and describe total remuneration, as a percentage of net income stated in the parent company only financial statements or individual financial statements, as paid by the Company and by each other company included in the consolidated financial statements in the most recent two years to directors, supervisors, general managers, and vice general managers of the Company and analysis and description of remuneration policies, standards, packages and the procedure for determining remuneration, and their linkage to operating performance and future risk exposure.

3.3.5.1 Separatelycompareanddescribetotalremuneration,asapercentageofnetincomestatedintheparentcompanyonlyfinancialstatementsorindividualfinancialstatements,aspaidbytheCompanyandbyeachothercompanyincludedintheconsolidatedfinancialstatementsinthemostrecenttwoyearstodirectors,supervisors,generalmanagers,andvicegeneralmanagersoftheCompany

The CompanyUnit:NT$1,000

Year TotalRemunerationtoDirectors,GeneralManagersandVice-GeneralManagersTheProportionofTotalAmounttoProfitafterIncomeTax

(%)

2018 204,097 1.12%

2019 203,050 0.88%

All Consolidated CompaniesUnit:NT$1,000

Year TotalRemunerationtoDirectors,GeneralManagersandVice-GeneralManagersTheProportionofTotalAmounttoProfitafterIncomeTax

(%)

2018 246,040 1.35%

2019 249,955 1.08%

3.3.5.2.Analysisanddescriptionofremunerationpolicies,standards,packagesandtheprocedurefordeterminingremuneration,andtheirlinkagetooperatingperformanceandfutureriskexposure.

TheCompany’s remuneration todirectorsandmanagers isbasedon theCompany’s remunerationconcept. The Compensation Committee refers to the general level of the industry and considers reasonablenessand the correlationsbetween theCompany’s operatingperformance, personalperformanceandfuturerisksexposure.

TheBoardofDirectorscomprehensivelyconsiderstheamountofremuneration,paymentmethodandfu-tureriskexposureoftheCompanyandthensubmitstheproposaltotheshareholders’meetingforadop-tion.

023

▲

3.4 Implementation of Corporate Governance

3.4.1 Board of Directors

Atotalof8(A)meetingsoftheBoardofDirectorswereheldin2019and2020tillthedateofpublicationoftheannualreport.Theattendanceofdirectorswereasfollows:

Title Name AttendanceinPerson(B) By Proxy AttendanceRate(%)(B/A) Remarks

Chairman YanceyHai 8 0 100% -

Vice-Chairman MarkKo 8 0 100% -

Director BruceCHCheng 8 0 100% -

Director Ping Cheng 8 0 100% -

Director Simon Chang 8 0 100% -

Director AlbertChang 8 0 100% -

Director Victor Cheng 8 0 100% -

Independent director Yung-ChinChen 7 1 87.5% -

Independent director George Chao 7 1 87.5% -

Independent director Tsong-PyngPerng 8 0 100% -

Independent director Ji-RenLee 7 1 87.5% -

Independentdirectorsattendedeachmeetingsof theBoardofDirectors in2019and2020 till thedateofpublicationoftheannualreportasfollows:

Title Name

The18th term

4th 5th 6th 7th 8th 9th 10th 11th

2019.03.11 2019.4.17 2019.4.29 2019.6.10 2019.7.31 2019.10.30 2020.3.10 2020.4.29

Independent director Yung-ChinChen

Attendance in Person



Attendance in Person By Proxy




Independent director George Chao








Independent director

Tsong-PyngPerng









Independent director Ji-RenLee








Other mentionable items:

1.Ifanyof the followingcircumstancesoccur, thedatesof themeetings,sessions,contentsofmotion,allindependentdirectors’opinionsandthecompany’sresponseshouldbespecified:

(1) MattersreferredtoinArticle14-3oftheSecuritiesandExchangeAct. TheCompanyhasestablishedanauditcommittees,hencetheArticle14-3ofSecuritiesandExchangeAct

shallnotbeapplicable.PleaserefertothechapterofAuditCommitteeintheAnnualReport.

(2) Othermattersinvolvingobjectionsorexpressedreservationsbyindependentdirectorsthatwererecordedorstatedinwritingthatrequirearesolutionbytheboardofdirectors.

None.

2.If therearedirectors’avoidanceofmotions inconflictof interest, thedirectors’names,contentsofmotion,causesforavoidanceandvotingshouldbespecified:

(1) BoardofDirectors’meetingonApril29,2019

Proposal:Toapproverecommendationson2019managers'compensation Directors’avoidanceofmotionsinconflictofinterest:YanceyHai,MarkKo,PingChengandSimonChang Contentsofmotion,causesforavoidanceandvoting:BasedonArticle206oftheCompanyAct,exceptfor

thedirectors,Mr.YanceyHai,Mr.MarkKo,Mr.PingChengandMr.SimonChangwhoshallnotparticipateinvotingonmanagers'compensationandMr.VictorChengwho left temporarily, therestofdirectorsunanimously approved this motion.

024

Proposal:Toremovethenon-competitionrestrictionsonmanagers Directors’avoidanceofmotionsinconflictofinterest:PingCheng Contentsofmotion,causes foravoidanceandvoting:BasedonArticle206of theCompanyAct,all

directors,exceptMr.PingCheng,unanimouslyapproved thatwithoutprejudice to the interestsof theCompany,theremovalofnon-competitionrestrictionsonMr.PingChengasadirectorinDeltaGreentechSGP Pte. Ltd.

(2) BoardofDirectors’meetingonJuly31,2019

Proposal:Toremovethenon-competitionrestrictionsonmanagers Directors’avoidanceofmotionsinconflictofinterest:MarkKoandPingCheng Contentsofmotion,causesforavoidanceandvoting:BasedonArticle206oftheCompanyAct,exceptforMr.

MarkKoandMr.PingChengwhoshallnotparticipateinvotingonthismotion,therestofdirectorsunanimouslyapprovedthatwithoutprejudicetotheinterestsoftheCompany,theremovalofnon-competitionrestrictionsonMr.MarkKoactingasadirectorinDeltaElectronics(Thailand)PublicCompanyLimitedandMr.PingChengactingasadirectorinDeltaElectronics(Thailand)PublicCompanyLimited,BoomTreasureLimitedandDrakeInvestment(HK)Limited.

(3) BoardofDirectors’meetingonOctober30,2019

Proposal:Toremovethenon-competitionrestrictionsonmanagers Directors’avoidanceofmotionsinconflictofinterest:PingChengandSimonChang Contentsofmotion,causesforavoidanceandvoting:BasedonArticle206oftheCompanyAct,exceptfor

Mr.PingChengandMr.SimonChangwhoshallnotparticipate invotingon thismotion, the restofdirectorsunanimouslyapprovedthatwithoutprejudiceto the interestsof theCompany, theremovalofnon-competitionrestrictionsonMr.PingChengactingasadirector inGuangzhouAmerluxLightingCo.,Ltd.andMr.SimonChangandMs.JudyWangactingasdirectorsinDeltaGreentechSGPPte.Ltd.

Proposal:Toapproverecommendationson2019directors'compensation Directors’avoidanceofmotionsinconflictofinterest:Thedirectorswhoaretheinterestedpartyandshall

not participate in discussion or voting on respective directors’ compensation agenda item Contentsofmotion,causesforavoidanceandvoting:Exceptforthedirectorswhoaretheinterestedparty

andshallnotparticipate indiscussionorvotingonrespectivedirectors’compensationagenda item,therest of directors unanimously approved this motion.

(4) BoardofDirectors’meetingonApril29,2020

Proposal:Toapproverecommendationson2020managers'compensation Directors’avoidanceofmotionsinconflictofinterest:YanceyHai,MarkKo,PingChengandSimonChang Contentsofmotion,causesforavoidanceandvoting:BasedonArticle206oftheCompanyAct,exceptfor

thedirectors,Mr.YanceyHai,Mr.PingCheng,Mr.MarkKo,andMr.SimonChangwhoshallnotparticipate invotingonmanagers'compensationandMr.VictorChengwho left temporarily, therestofdirectors unanimously approved this motion.

025

3.Evaluationcycles,evaluationperiods,evaluationscopes,evaluationmethodsandevaluationprocedures,etc.forevaluating theperformanceof theCompany’sboardofdirectorsandboardmembersaredisclosedasbelow:

Evaluation Cycles Evaluation Periods Evaluation Scopes Evaluation Methods Evaluation Procedures

The Company shall conduct an internal boardperformanceevaluation at least once a year.TheCompany'sboardperformanceevaluationshallbeconductedbyanexternal independent professional institution or a panel of external experts and scholars at least once every three years.

FromJanuary1,2019toDecember31,2019

The scope of the Company'sboardevaluation may include the evaluation of the boardasawhole,individualdirectors,audit committee and compensation committee.

Methods of evaluations include the internal evaluation of theboard,self-evaluationbyeachboardmember,peerevaluation,andevaluationbyappointed external professional institutions,experts,orotherappropriate methods.

A. The criteria for evaluating the performance of the Company’sboardofdirectorsincludesthefollowingfiveaspects:1.ParticipationintheoperationoftheCompany;2.Improvementofthequalityoftheboardofdirectors'decisionmaking;

3.Compositionandstructureoftheboardofdirectors;

4.Electionandcontinuingeduc

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