Special ReportWorking hand in hand for a win-win situationDiscussing Delta’s distributor partnership management

Brand PeopleThinking globally, footing locally in ChinaDaryl Liao, Executive VP & General Manager of Delta China, talks on Delta's development in China

Brand CircleDelta showcases industrial energy-saving solutions at 2013 CIIF

CONTENTS DECEMBER 2013

Brand News

1 From the Editor

Special Report02 Working hand in hand for a win-win situation - Discussing Delta’s distributor partnership management

Brand Circle07 Delta brand wins international recognition09 Delta showcases industrial energy-saving solutions at 2013 CIIF12 Delta presents green automation for a changing world at SPS IPC Drives13 Innergie LifeHub™ be powered and comfortable all at once at 2013 IFA Show13 Delta display solutions shine over SIDRS 2013 and CPSE 201314 Delta presented the concept of green building in the 12th China International Expo

of Housing Industry15 Delta IA solution for food packaging adds yet another highlight to the industry15 Americas region implements MGPP process16 Delta Designs a "360○ Sky Ring" for Fayaque16 Taipei 48 Hour Film Project ends well17 Delta's UPS protects the critical applications for clients around the world18 Delta launches InfraSuite Manager for DCIM18 Best for all industries: Delta AH500 medium-sized PLC19 2013 Delta Environmental Law Forum at Zhengzhou University19 Delta Electronics Foundation sponsors Xubai Zeng Journalism Awards20 DGC participates in CSICF20 Delta opens advanced R&D Centre in Singapore that will focus on sustainable technologies

Brand People21 Thinking globally, footing locally in China - Daryl Liao, Executive VP & General Manager of Delta China, talks on Delta's development in China

Brand Academy24 The IPCC 5th Assessment Report - Introduced by the Delta Electronics Foundation

News Station27 News Station

Delta Green Life28 Unusual border crossing tour to the lion city: low carbon travel30 Delta and Kevin Lin to explore the world31 "Thank you, Delta," spoken by director Po-Lin Chi

Delta Brand News Bi-Monthly December 1, 2011 founded

Publisher: Ping Cheng Editor in Chief: Shan-Shan GuoEditorial Board: Andy Liu, CS Chang, Charlie Pai, Jack Lin, Jesse Chou, May Wu, Sonia Wang, Wim Chang, Yiching Chang, Yi-Wen WangEditor: Maggie Hsia, Milo Tseng, Sandy Chien, Shalom Hung, Thomas Chang

All rights reserved. For further information, please contact Brand Management Office: bmo@delta.com.tw

27

21242728

01Brand News

From the Editor

"Welcome home!" Delta Founder Mr. Cheng greeted fellow Delta colleagues from Japan and Korea with a smiling face and booming voice at the company's Sunshine Building in Taipei. Just like our kids working abroad returning home at year end, our colleagues around the world came to Taiwan and visit Delta HQ during their annual group incentive tour. They also visited many green buildings built or sponsored by Delta, such as Taoyuan Technology Center, Namaxia Minchuang Elementary School, among others. They experience in person Delta's state of the art technology and active participation in Taiwan society. This is great opportunity for us to connect with Delta's expatriates and overseas colleagues and build their identification as members of the Delta family, sharing the recognitions and pride as a Delta employee. In November, EMEA team also held a large partner event and invited their most important distributors to visit Delta HQ, an occasion for us to show our appreciation and also to showcase the scale and capability of Delta group. As Delta is expanding its branded business through distribution network, channel partners play an important role between Delta and the end users. In short, they are the most critical joint representing Delta's brand in our customer's overall brand experience. Therefore, a well-managed distribution network would help in brand communication. In this issue's special report, taking EMEA partner event as an example, we will introduce the concept and practice of distributor management.

"Brand People" in this issue features Mr. Daryl Liao, employee number 36. Through the interview, Mr. Liao shares how he leads our colleagues in China in changing their mindset and thinking for business transformation and continues to enhance the competitiveness of the corporate with organization adjustment and talent exchange. He constantly emphasizes that Delta overcame challenges through the perseverance and teamwork of its employees. Isn't it the best demonstration of the key word "Together" in Delta's brand promise?

Before the publishing this issue, we were awarded the honor of "Best Taiwan Global Brands" for the third time in a row. Delta is now the only large electronic company to win the award for its industrial brand for three consecutive years. This means that the strategy and efforts of Delta's brand communications are recognized by the organizing organization. The Delta Group has won several important awards, which are recognitions for the investments Delta has made on its journey to become a stronger brand as well as the encouragement for all Delta employees.

Do you remember "Delta's Ring of Celestial Bliss," the largest outdoor ring-shaped projection and installation of art, by Delta at Taiwan Lantern Festival in late February? With our own projection devices, lighting solutions and fascinating video, Delta articulated its own brand story. Recently, Delta's display system integration team successfully designed a 360-degree system named "Sky Ring" that is eight meters in diameter for Fayaque, a famous culture and technology product channel. It's another example in which Delta's brand promotion activities are bringing in actual business opportunities. A complete report is in "Brand Circle".

Shan-Shan Guo,Brand Management Office

02Brand News

Special Report

Group photo of 2013 EMEA Partner Event at Delta HQ, Taipei

Working hand in hand for a win-win situationDiscussing Delta’s distributor partnership managementIn November of this year, Delta organized three partner events in Taipei and Shanghai: the EMEA Partners Event, the DGC System Integration Partners Conference and the DGC Industrial Automation VIP Distributors Conference. In addition to showcasing Delta's capabilities and development to partners, our aim was to build consensus through face-to-face communication to achieve future growth together. The events were a testimonial to one of Delta's brand commitment - "Together", an important element of Delta brand. In this issue's special report we'd like to talk about "Distributor Management".

Annual distributor conference demonstrates Delta's capability and brand commitment

The Delta EMEA Partners Event was held at Delta headquarters in Taiwan for the first time in its history from November 11 to 13. More than one hundred distributors and partners from 66 corporations and 33 countries, including Russia and Europe and the Middle East, learned about Delta's corporate mission and branding initiatives as well as business strategies firsthand.

The exciting three-day event was inaugurated by Delta Group founder and honorary chairman Mr. Bruce Cheng. Next, Chairman Yancey Hai delivered the keynote speech, which introduced Delta Group's progress in global development and expansion. Jackie Chang, president and general manager of EMEA and Ms. Shan Shan Guo, Delta's chief brand officer each gave a 30-minute briefing. The topics included a retrospective and the outlook of Delta EMEA, Delta's brand strategy, and implementation of corporate social responsibility initiatives.

03Brand News

Special Report

At the conclusion of the three-day event, distributors had gained a deeper understanding of Delta's brand positioning and the future direction of the company. The tour of the Delta Technology Center in Taoyuan also helped participants gain an overall picture of the company's industrial automation and automotive electronics research and technology development. A tour of the building - which has been awarded LEED Gold certification - and an overview of energy-saving products manufactured by Delta complemented the visit, and participants felt they had learned a great deal during the event.

During the China International Industry Fair - one of the most important event of China's industry sector, held in Shanghai from November 5 to9 - DGC invited VIP system integrators and industrial automation distributors based in China to jointly visit the Delta booth. This year, Delta adopted the theme of "Smart Factories" to showcase the company's comprehensive solutions for industrial automation, power supply and power quality, electrical energy conservation, power environment monitoring and management, and renewable energy solutions, all of which help customers achieve high-efficiency energy savings and reduced carbon emissions.

What is distribution?

Simply put, there are several different modes of delivering the finished product from the "Manufacturer" all the way into the hands of the "End users". An example is B2B: 1. Manufacturer → End users 2. Manufacturer → System integrators → End users 3. Manufacturer → Distributors → System integrators → End users 4. Manufacturer → Distributors → Retailers → End users

Distributors, system integrators and retailers are all parts of distribution network and these four operating modes can be applied to B2B and/or B2C products, depending on actual market conditions. For manufacturers that produce both industrial and consumer products, such as Delta, distribution network they must manage may include distributors, system integrators and retailers.

An example is the ODM/OEM business model. The sales team of each Delta business unit is responsible for taking orders directly from major customers. Customers that have placed orders may sell or deliver Delta's products, such as AC adaptors for laptops, to end users. Some major customers may require Delta's parts and components to complete products of a larger scale. Such a business model is quite simple. Delta simply fulfills customers' requirements, while ensuring the quality and on-time delivery of the products. For Delta, product delivery represents the point in time for achieving the required KPI, and there are no post-sale issues to concern the company.

On the other hand, the branded business is considerably more complex to operate. Apart from quality, which Delta values the most, it is also necessary to implement "distributor management" in the company's Go-to-Market strategy. It is even essential to deliver information regarding changes in the market and end user comments to the BG/BU through meticulous distributor management. The purpose is to facilitate Delta's business units in analyzing and forecasting market demand more accurately during the initial innovation and R&D stage, while taking control of the manufacturing life cycle of products.

Jackie Chang, Delta EMEA's president and general manager, pointed out: "We do market forecast analysis every other week, while compiling and reviewing customer feedback at the same time. We then provide a comprehensive picture to the BG/BU."

1 I Channel partners witnessed the energy-saving performance in Taoyuan R&D center

2 I Delta management and channel partners’ close communications

04Brand News

Special Report

Diverse product line vs. multiple distribution network management

Establishing a comprehensive distribution network requires time and considerable experience. Once the network is completed and the targets are reached, brand recognition will increase many times over. Many people believe that a distribution network is merely a medium by which products or services are delivered into the hands of end users. However, even with exceptional products, strong marketing campaigns, advertising and competitive pricing, the lack of a sound distribution strategy may spell doom for the manufacturer.

Delta's brand is built on the solid foundation of the B2B model, with B2C playing a supplementary role. To an enterprise based mainly on the B2B model, issues that face the sales of its products include not only the products' quality, but also the establishment and management of distribution and sales channels. Questions and factors that need to be considered are: "Who are selling on your behalf?", "How do you help them sell your products?", "Pricing strategy planning", "Inventory management" and "Market forecast" - these are all part of distribution channel management.

In the process of an OEM/ODM enterprise's transformation to an OBM, where its own brand is less recognized, it is particularly necessary to rely on distributors that have existing customers. However, distributors often sell products from more than one manufacturer, and there are vast differences between various brands, not to mention the variety of products available. To distributors, products that meet a particular set of specifications may come from several brands. What is it that Delta needs to do for dealers to favor its products and recommend them to their customers? This is a complex issue with no simple answers.

"Generally speaking, apart from continuing to maintain seamless communication with our distributors and carrying out aggressive marketing campaigns, it is especially important to allow distributors to make reasonable profits so they can continue to provide comprehensive services to customers. Only with this virtuous cycle is it possible to create win-win scenarios for both the manufacturer and its distributors," said Mr. Jack Lin, sales and marketing manager of Delta's MCIS division.

"It is common practice within the industry to grade distributors based on their levels of contribution to sales revenues and our company's overall development strategy. Faced with different markets around the world and a large variety of cultures, it is necessary for EMEA team to manage distribution network more carefully, so that the resources that we put in will bring us higher returns on investment," said Jackie Chang.

In managing distribution network, inventory management is one of the critical factors that directly affect the volume of sales. Inadequate inventory management hurts both Delta and distributors alike. Inventory shortages affect sales on the dealers' end, in which case they attempt to seize opportunities for sales by recommending competing products of similar specifications from other manufacturers. Excessive inventory levels, on the other hand, have a negative impact on warehousing and cash flow. An example is EMEA where Delta has both B2B and B2C products and each distributor has a different set of strengths. Delta needs to consider a product's market position, company strategy and allocating competing products, and whether sales models with "sales final" and "returns permissible" should coexist.

When mentioning about inventory management, Andy Liu, vice president of IABG sales and marketing, said, "In 2009, IABG launched a major project - CPFR - to promote collaboration of manufacturing and sales. Through a connected information system, we have enhanced our partnerships with customers, distributors, branch offices, and business groups. We have achieved shortened delivery times, reduced the number of days for inventory turnover, improved shipment fulfillment rates and enhanced production efficiency."

On the channel management aspect, Delta looks forward to the creation of "strategic alliance" with distributors, rather

Maximize the synergy of Delta brand

05Brand News

Special Report

An elaborate activity to learn Chinese culture

than simply maintaining a buyer-seller relationship with them. Delta hopes to take advantage of each distribution channel's characteristics and incorporate product marketing to gradually enable dealers to develop recognition of Delta's brand and also loyalty. This has become one of the competitive advantages Delta has established.

Delta's transformation: working hand in hand with distributors

In response to the rise of the "globalized brand" over the past few years, a new concept has emerged: "glocalization". It emphasizes that globalization must be closely integrated with localization. Enterprises must develop appropriate strategies to adapt to the local markets under the global market framework. They must also develop an understanding of each market’s special culture to be accepted by local customers. A global brand needs to build a distribution network based on local thinking and strategies, and strong partnerships will facilitate the brand's promotion and positioning in such a way that it better fits the needs of the channel partners and the demands of the market.

Take Delta's brand promotion strategy in China as an example. Two years ago, Delta's Shanghai Operations Center and R&D Building was completed and officially inaugurated. This year, a new branch office was set up in Beijing to establish the capital city as a hub for expanding Delta's own brand name products in China through new distribution channels. To be closer to customers, understand their needs, and provide localized services, Delta has created a network of 500 distributors in China.

Through meticulously planned distributor conferences, distributors can appreciate Delta better and experience the essence of Delta's corporate brand. This helps to cultivate a deeper understanding of cooperation. For example, at the EMEA Partners Event held in Wujiang two years ago, distributors were invited to tour the manufacturing facilities to experience Delta's advanced technology, equipment and production scale firsthand. Several participating partners expressed their sentiments, "Although we have been partners with Delta for so many years, we had no idea Delta was such a huge corporation, and we are honored to be partners with Delta. We will do our best to promote Delta's IA products going forward." Chairman Yancey Hai said at a recent EMEA partner event, "The market and technology are changing all the time, therefore, so the way Delta operate its business must react accordingly. For the OEM/ODM business, on time delivery is all. For branded business, Delta must provide customized service to clients and work with them in the long run"

Delta's efforts in developing a distribution network in China have been ongoing for over a decade. Although the size of the network is 500 strong, the reality is that this is nowhere sufficient. In 2012, DGC underwent organizational changes and consolidated their existing system power and energy and video solutions into the System Integration business unit. Distributors around China also went through corresponding integration efforts to provide customers with a larger variety of better integrated solutions. A major key account project task force was established, and each business unit created its own major account department. A new Solution Manager role was added onto the 3M (Region/Application/Product Manager) foundation. The purpose is to expand to new markets and develop major customers with enhanced solutions as the core strategy. Mr. Donald Yu, General Manager of DGC, stressed,

06Brand News

Special Report

"Only by focusing on customers and growing with them as well as providing distributors with more quality products and solutions will we be able to create competitive advantages and forge long-term strategic partnerships."

Mr. Jackie Chang pointed out, "the starting point of each region is differnet, and the product lines are not mature to the same extent. However, our objective is to move from a key component supplier towards a provider of systems integration and solutions. Although the direct is correct, it is still a long way to go. We have just taken the plunge with consensus"

In addition, the advertising employed by Delta at major exhibitions and in the mass media is influential to distributors, customers and end users in a subtle and effective manner. As Andy Liu explained, "Compared with advertising of consumer brands, industrial products require a longer period of time to gather momentum and take effect. But these investments are necessary, because we can gradually build up Delta's brand image among our TA (target audience)."

Customer service

Customer service is a very important component of the brand business. DGC, having had 20 years of experience in developing the China market, now has a network of 48 branch organizations, 64 technical service locations and 12 repair and maintenance outlets. Technical service, engineering teams, control engineering divisions, repair and maintenance centers and 24-hour hotlines throughout China are capable of responding to customer needs within 2 hours and providing timely and efficient services.

The IABG is the first among all Delta business units to adopt the CRM system. The purpose is to effectively identify and respond to business opportunities using Pipeline, while also allowing more accurate sales forecasts at the same time. Andy Liu said, "Upon the completion of the CPFR + CRM + Global Warehouse system, IABG hopes to implement a Call Center platform to improve and enhance our customer service, which we will achieve in the next 3 to 5 years in continued growth stages. We hope to become the leader in the field of industrial automation."

Distributors to represent Delta's brand

"We endeavor to achieve a consistent brand image and essence for Delta through special website sections, education and training programs, advertising, support for marketing activities, and newsletters we create specifically for our distributors," said Vivien Feng, director of DGC’s marketing communication department.

There are too many factors when considering "distributor management." No single SOP applies to any one company or even business unit when it comes to distributor management. One SOP that is applicable to a Taiwanese UPS distributor would not necessarily apply in Germany, but a set of IA distributor management guidelines applicable in Japan may be used in South Korea, and so on. Everything depends on the market, customers and products, and different approaches must be adopted.

Delta's brand promise is "Smarter. Greener. Together." Here, the concept of "Together" refers to the cooperative spirit between Delta and its partners. Through a variety of flexible "distributor management" approaches, Delta invests and succeeds in the global market together with its partners.

A tour of Delta production line

07Brand News

Brand Circle

Delta brand wins international recognition< Text by Colleen Ho / Corporate Communication; KK Chong/ DET > Delta Group has been awarded several significant awards recently include "Taiwan Top 20 Global Brand”, "2013 Most Admired Company" in the electronics industry by CommonWealth Magazine. Chairman Yancey Hai won the Asia Talent Management Award at CNBC's 12th Asia Business Leaders Awards (ABLA) 2013, DET received the CSR-DIW continuous awards and CSR-DIW awards 2013, and "Thailand Energy Award 2013 for Outstanding Personnel in Energy". The close succession of awards confirms Delta's determination in building an outstanding brand and is like a praising ovation to all members of the Delta family. Third time recipient of Best Taiwan Global Brands 2013

Delta has been nominated as one of the Best Taiwan Global Brands 2013 for the third consecutive year. "Interbrand" was invited by the Industrial Development Bureau of the Ministry of Economic Affairs to assess various Taiwanese brands. This will be the 11th year of the government-sponsored assessment. Since the Inauguration Year of Delta Brand in 2010, Delta has received recognition for two years running in 2011 and 2012. It is the only large scale industrial brand to win such honors. Since 2010, Delta has been a benchmark provider of energy efficient solutions. Its strategic corporate transformation and business operations reorganization have also been gradually implemented. In the 2013 assessment, Delta once again earned recognition for its excellent business performance, brand strategies, and CSR. The "2013 Most Admired Company" awards

Delta has been awarded the "Most Admired Company" in the electronics industry for the 12th consecutive year by CommonWealth Magazine. Delta's Founder and Honorary Chairman Mr. Bruce Cheng was also named "Most Admired Entrepreneur" for the 7th consecutive year. The awards continue the major recognition for Delta's comprehensive performance following a top CSR Award presented by CommonWealth Magazine this August. The "2013 Most Admired Company" awards evaluated 249 companies from Taiwan's Top 25 industries. In addition to being selected as the most admired company in the electronics industry, Delta was ranked 4th place for "best benchmark company," a two-place advance in comparison to the 2012 ranking.Chairman Yancey Hai received the award from Mr. Hsiao, the formar Vice

President

08Brand News

Brand Circle

The Asia Talent Management Award at CNBC's 12th ABLA 2013

Delta Electronics Chairman Yancey Hai won the Asia Talent Management Award at CNBC's 12th Asia Business Leaders Awards (ABLA) 2013. Mr. Hai was chosen from among 62 outstanding Asia business leaders based on his exceptional achievements in talent development, attraction, and retention, which have enabled Delta to develop into an internationally recognized sustainable enterprise. With this award Mr. Hai is the first business leader of a Taiwan-based company to win ABLA honors twice since the ABLA began in 2001, having received "Asia Innovator of the Year" in 2010. The CNBC Asia Business Leaders Awards distinguishes remarkable business leaders throughout Asia. Winners of the awards are outstanding leaders with strength, innovation, ingenuity, knowledge and foresight - values that are essential for building powerful businesses in the global economy. DET received the CSR-DIW Continuous Awards and CSR-DIW Awards 2013

DET has been unrelenting in its CSR (Corporate Social Responsibilities) efforts within the company and working with its partners to implement the good practices within the CSR framework. Such commitment has won Delta not only the CSR-DIW award but also the CSR-DIW Continuous Award which recognizes a company's continuous effort over the years. Delta has won this award for three consecutive years. The CSR-DIW award is presented by the Department of Industrial Works, Ministry of Industry, in recognition of Thailand based companies' CSR activities including the companies' collaboration with its partners to embrace responsibility for a company's actions and encourage positive impact to the society and environment. The Thailand Energy Award 2013 for Outstanding Personnel in Energy

Thailand's Department of Alternative Energy, Ministry of Energy, presented DET with the Thailand Energy Award 2013 for Outstanding Personnel in Energy for its significant contribution to energy conservation and alternative energy development. Mr. Vichai Saksuriya, Operations Vice President of Delta Electronics (Thailand) PLC., received the Thailand Energy Award 2013 for Outstanding Personnel in Energy. Prime Minister of Thailand, H.E. Yingluck Shinawatra presided over the award ceremony at the Government House. A total of 263 nominations had entered the 2013 competition whereby 72 were selected for the award within its five categories: Alternative Energy, Energy Conservation, Outstanding Personnel in Energy, Creative Energy and Supporters of Alternative Energy.

Yancey Hai and the award

and CSR-DIW awards 2013

Mr. Vichai Saksuriya(left), Operations Vice President of DET received the award from Prime Minister of Thailand

09Brand News

Brand Circle

Delta showcases industrial energy-saving solutions at 2013 CIIF

<Text by Marketing Communication Department/ DGC>

Delta showcased its integrated solutions in industrial automation, power supply and distribution, machine energy-saving, and green energy at the 2013 China International Industry Fair (CIIF) held in Shanghai from November 5th to 9th. Delta's impressive blue and white exhibit occupied over 300 square meters of floor space. With the theme "smart factory energy savings" Delta's solutions help customers achieve energy savings and carbon reduction. With the exhibition, Delta continues to expand its brand campaign and promote its leading industry position across the globe.

Multi-channel promotion of the Delta brand and spirit

Delta's integrated marketing for the show included print, online ads and airport advertisements centered around CIIF. The aim was to maximize brand exposure and showcase the combined capabilities of Delta. Show attendees were exposed to different types of Delta advertising from the moment they stepped through the entrance. The promotion included flags, large outdoor panels and advertisements of Delta and other international brands expressing Delta's brand promise of "Smarter. Greener. Together."

Press announcement with nearly 100 media attendees

Nearly 100 news and media companies showed up for Delta's press conference. The media enjoyed good interaction with Delta's top management, which helped promote the brand within the media.

Quality always comes first at Delta, Mr. Liao (1st from right) attended a workshop on “How to win Deming Award” in 1992

10Brand News

Brand Circle

4 I Simon Chang, senior vice president and general manager of Delta IA, was selected as one of the Top Ten Personalities of Chinese Industrial Automation

5 I Deputy Chairperson of the Shanghai Commission of Economy and Informatization Jing Ma (first from right) personally presented awards at the Delta booth. DGC General Manager Donald Yu (second from left) received the awards

4

5

1-3 I Advertising promoting CIIF and Delta were shown at Shanghai Airport, and placed in The Economist, Economic Journal Monthly, CBNweekly, ifeng.com, baidu.com, and at CIIF itself

1 2 3

Chairman Yancey Hai expressed, "For over 40 years since its founding, Delta has used power electronics technologies to develop highly efficient products and solutions to realize our corporate mission. Our products have saved about 9.3 billion kilowatt hours in the three years between 2010 and 2013, which is equivalent to a carbon dioxide emission reduction of 5 million tons. Our Shanghai R&D center has received LEED gold class certification and fully incorporates Delta industrial automation and energy management solutions. Compared to other buildings with similar floor space and climate conditions, our R&D center achieves energy savings of up to 35% and water savings of 46%."

Winner of multiple awards such as the CIIF Silver Award and Brand of Excellence

Delta's new Ultron HPH Series UPS introduced in 2013 was awarded the CIIF Silver Award, and designated by the organizers as a new technology and breakthrough product in the global high tech industry.

Four of Delta's industrial automation (IA) products won awards at CIIF, and Delta also received awards for Brand of Excellence in Automation Products and Best Employer of the Year. Simon Chang, senior vice president and general manager of Delta Industrial Automation, also received recognition as one of the Top Ten Personalities in Chinese Industrial Automation.

The DVS series Ethernet exchanger won the Creative Product Award in the 2013 Industrial Automation Show Annual Industrial Survey. The modular programmable design controller AH500 series received the Most Competitive Product. The DT3 temperature controller and B series 10.4-inch high color and high resolution human machine interface also received the Best Product Award.

Creating a common vision with sales and distributors

DGC invited system integrators and electronics dealers to visit the Delta booth, and held the following events:

11Brand News

Brand Circle

Forging a common vision and win-win outcomes-DGC VIP partner autumn gathering

The industrial automation business group (IABU) of DGC invited dealers with the best performance to attend the Forging a Common Vision and Win-Win Outcomes-DGC VIP Partner Autumn Gathering hosted at DGC headquarters. In addition to arranging partner visits to the Delta booth at CIIF and helping to promote the technological innovations achieved by Delta, the company also invited everyone to visit its operational headquarters in Shanghai to gain personal experience of the company's capabilities and corporate culture.

The general manager of Delta's IABG Simon Chang, general manager of the DGC IABU Brenna Lu, and Wujiang Plant 3 site manager Xi-ru Wei were specifically tasked to discuss and form a common vision, and share their successes with our partners. A total of 25 partners attended the event, and all expressed appreciation for being invited by the top management of Delta and DGC, and their commitment to our partnership and achieving great things together.

Summit meeting with system integrators

A summit meeting with system integrators with the theme Opportunities and Challenges in the Information Era was hosted by DGC at the Shanghai business headquarters on November 6th. Over 40 system integrators were invited to this event. CIIF provided the opportunity and forum to showcase Delta's leading products, technologies, and manufacturing of basic data center infrastructure and solutions as well as visual display products to system integrators. The exhibit provided actual demonstrations of DGC system integration capabilities across multiple operations and business fields.

Delta Electronics Chairman Yancey Hai and DGC General Manager of Brenna Yu addressed the event, and expressed that system integrators play an indispensable role in the rapid development and expansion of DGC. They hoped that the summit meeting will act as a platform for interactive exchange between suppliers and system integrators to complement both parties and achieve competitive advantages in products, technology and market resources. The summit meeting will help system integrators promote market competitiveness and achieve growth for both parties.

System integrators reflected that the summit meeting provided an all-new experience and opportunity to understand the capabilities of Delta Electronics and DGC. Through assessment of product introductions, machine room tours, exhibition showcase, and a visit to the actual production base, the system integrators gained an understanding of the Delta Electronics brand beyond that of the general product level. For the system integrators the summit meeting was the opportunity to personally witness Delta as a global company supported by powerful R&D, design, production, and system integration capabilities.

Distributors visit Delta’s green data center

DGC VIP partner autumn gathering

12Brand News

Brand Circle

Delta presents green automation for a changing world at SPS IPC Drives< Text by Claire Ou/ IABG >　

Delta just attended SPS IPC Drives ( S P S ) , o n e o f t h e w o r l d ' s m o s t prestigious industrial automation events. The grand exhibition took place from November 26 to 28 in Nuremberg, Germany, and Delta showcased a diversified portfolio of thirteen solutions targeting field applications and energy savings with outstanding products and compelling live demonstrations.

Delta's thirteen high performance solutions featured factory energy saving automation, machine automation, high-end industrial machines, motion drives, water treatment processing, HVAC, elevator energy-saving, crane energy-saving, power quality, and gantry, plus products such as industrial Ethernet switches, human machine interfaces, and industrial power supplies.

With integrated functions that deliver exceptional performance and energy-saving results, Delta's solutions satisfy multiple needs, significantly saving time, costs, and resources, providing the technical entry needed for field applications, and delivering optimum client benefits. Of all the displays, Delta's power quality solution was among the most discussed. Delta Industrial Automation has been promoting its high - efficient power quality solutions in recent years. This solution includes the SVG2000 Series static var generator, the APF2000 Series active power filter, and the AFE2000 Series active front end. It is able to realize reactive power compensation and raise the power factor up to 0.99 while effectively suppressing harmonics. Delta's power quality solution can greatly improve power quality and efficiency and also regenerate power.

SPS is a world-class professional event that gathers the leading brands, professionals and media of the automation industry from around the world every November in Nuremberg. With power efficient products and solutions, Delta's display satisfied customer demands for cost-effectiveness and advanced technologies, and became one of the most popular exhibitors during the event.

1 I IABG's Sales & Marketing VP Mr. Andy Liu(8 from the right) and IA team 2 I The booth design presents Delta brand

1 2

13Brand News

Brand Circle

Delta display solutions shine over SIDRS 2013 and CPSE 2013< Text by Marketing Communication Department/ DGC >

In October the DGC demonstrated Delta display solutions at two major trade shows: the 5th Shanghai International Disaster Reduction and Security Show (SIDRS 2013) and 11th China Public Security Expo (CPSE 2013). For the DRS (disaster reduction and security) surveillance display application, the DGC displayed Delta's the third generation LED light source DLP Video Wall, 55inch motorized front access LCD Video Wall and DVCS Distributive Vision Control System, and DVS-CSU Control and Supervisory Unit independently developed by Delta. These world - leading technologies have attracted more than ten thousand visitors.

The DGC has made brilliant achievements in China's DRS market, as witnessed by the success of the high reliability surveillance display system in the DRS projects of South West Water, Tonghua Meteorological Station, Chongqing Water Conservancy, and Yengcheng Flood Control. At SIDRS 2013, the DGC brought brand-new and intuitive experience through DRS case system and scenario demonstration based on the characteristics of DRS applications in China.

Innergie LifeHub™ be powered and comfortable all at once at 2013 IFA Show< Text by Melissa Wang/ MPBG >

Innergie, the consumer brand of Delta, had attended IFA show as an exhibitor in Berlin, Germany. This is the fifth time that Innergie joined the show. This year, Innergie announced the launch of the new LifeHub™ at IFA 2013.

The Innergie LifeHub™ is a unique and versatile mobile USB power hub that allows you the freedom to be powered anytime and anywhere you want in your home. No more sitting cramped and uncomfortable next to a power socket when you're low on power! With three high power 2.1 Amp ultra - fast charging USB ports and 4.5 meters extended reach, LifeHub lets you to use and charge any combination of tablets, smartphones, or mobile devices at the same time when and where you want to sit.

Innergie LifeHub

Innergie team took a photo at the booth.

Onsite simulation of the DRS command center

14Brand News

Brand Circle

1 I Visitors inquired about related information of Delta Group during the 12th CIEHI2 I Delta Group was honored one of those companies joining the construction of the Home of Tomorrow 20133 I China Marketing Director Peter JJ Lin was interviewed by the CCTV during the 12th CIEHI

1 2 3

Delta presented the concept of green building in the 12th China International Expo of Housing Industry< Text by Peter Lin/ China Sales and Marketing Div. >

Hosted by the Ministry of Housing and Urban-Rural Development, P.R. China, the 12th China International Expo of Housing Industry has grandly opened at National Convention Center in Beijing between Oct. 23 and 25, 2013. Delta Group promoted the concept of green building and presented green and energy-saving solutions during the exhibition.

In this governmental exhibition, corporate mission, social responsibility and green and energy-saving solutions were cleverly organized. First of all, we introduced those green buildings inside Delta Group to visitors. Secondly, in the fulfillment of our obligation to social responsibility, we introduced those donated elementary schools adopting green building design, for instance, we donated the Delta Sunshine Elementary School in Yangjia Town after the 2008 Sichuan Earthquake and the Namasha Minquan Elementary School in Kaohsiung after Taiwan's August 8 floods, as well as the Yaan Green Elementary School in Sichuan, which still under construction.

Thirdly, for solutions presented, we delivered the application scenario of green residential area which integrated solar, LED street light and charging solutions for electric vehicle. We also showcased smart, energy-saving ventilation fans for improving indoor air quality and hot wind blower for heating. In addition, we displayed building energy management system (BEMS) and factory energy-saving solutions applied to all Delta's factories worldwide.

During the 12th CIEHI, in addition to giving officials and professional customers warm reception, we participated in the video recording of "Forum for Real Estate" hosted by SouFun (www.soufun.com) to introduce Delta's solutions for smart green building and energy-saving, interviewed by CCTV, SouFun and China Real Estate Business, joined the top manager dialogue on "Housing industry modernization and new trends of housing". Furthermore, Delta Group was honored one of those companies joining the construction of "the Home of Tomorrow 2013" and our smart and energy-saving ventilation fan and BEMS were also honored the award of "Recommended Top 10 Tech of Housing Industry". All activities and honors mentioned above certainly will raise the visibility and awareness of Delta Group in architecture and housing industries in China.

The CIEHI is hosted and organized by the Ministry of Housing and Urban-Rural Development. It's an official, government policy-oriented exhibition and the "wind vane" or benchmark of China architecture and housing industries. Based on those achievements last year, we kept proactively and aggressively participating in the construction of "the Home of Tomorrow 2013" this year. Our ventilation fan and LED bulbs were integrated into the demonstrated house of low carbon. In addition, our ventilation fan, hot wind blower, LED lighting and BEMS were also listed in the brochure of the demonstrated house of low carbon and distributed to all visitors for heavy promotion. It made Delta's related products or solutions to be listed as cutting-edge, high technology, intelligent, low carbon and environment-friendly techniques and products.

15Brand News

Brand Circle

Delta IA solution for food packaging adds yet another highlight to the industry< Text by Industry Automation/ DGC > The 3rd Asia Food Machinery Forum was jointly held in Beijing with the China Food and Packaging Machinery Industry Association and Technology Food Machinery Association of the China Institute of Food Science. The Forum was made more exciting through the extensive participation of Delta's IA solutions. Delta also gained the opportunity to initiate extensive collaboration with the food packaging industry. The Asia Food Machinery Forum has always been a major annual event in the food packaging machinery industry. Over 90% of leading industries in China send delegates to attend this event. Delta IA solutions have been expanding and extending their involvement in the food packaging industry, and the company is one of the most important partners in this Forum. Over 60 leading experts of the food packaging industry also visited Delta display booth in Beijing in order to understand the course of development and philosophy behind the Delta brand as well as its newest R&D and innovation results. Participating experts have expressed great admiration and identified with the capabilities and vision of the Delta Electronics group.

Leading experts in food packaging visiting the Delta’s showroom in Beijing

Americas region implements MGPP process

< Text by Joseph Oberle/ DPC >

Members of the IABG's leadership team along with Simon Chang, M.S. Huang, Mark Ko, and M.S. Tsu, recently met with the America's IA management team, led by Mike Carson, to participate in a regional multi-generation product planning (MGPP) overview meeting in Raleigh N. Carolina. The MGPP process is a tool to build strong business strategies and new product planning through better market, customer, and competitive understanding. Cross regional and corporate team consensus is built in multiple team breakout sessions to discuss, Delta core competencies, market and competitive trends. This information is then used to develop both short and long range business and new product planning strategies, which include both organic and inorganic growth opportunities. Joe Oberle, VP Corporate Development Americas, has worked closely with the Americas IA team to pilot the MGPP process for the Americas region as a tool to help improve branded product growth. The MGPP process will be adopted by all branded product teams in the Americas region to gain better customer and market insight helping to develop winning growth strategies for Delta.

Simon Chang, M.S. Huang, Mark Ko, and M.S. Tsu discuss the merits of MGPP with the team

16Brand News

Brand Circle

Taipei 48 Hour Film Project ends well< Text by Ray Shen/ DSBU >

The Taipei 48 Hour Film Project with Vivitek Qumi of Delta as the title sponsor wrapped up on October 26.

With Share Microcinema with Qumi Micro Projection as the brand appeal of this event, apart from a live demonstration of the Vivitek Qumi Q5 pocket projector, the documentary of how Kevin Lin conquered the Gobi Desert and the commercial film of Qumi were broadcast to link different parts of the event. By sponsoring the Taipei 48 Hour Film Project and with related marketing campaigns, we hoped to communicate to consumers Qumi's product unique sell ing points: mobil i ty, convenience and real-time sharing.

A total of 13 prizes were presented at the ceremony, including the Best Screenplay Award, the Best Director Award, the Best 48-Hour Film, and so on. The top work, Express girl , will join the 2013 48 Hour Film Project in the USA to compete for the Best Picture Award with 120 cities. The ten finalist films will be broadcast at the Cannes Film Festival.

Delta Designs a "360○ Sky Ring" for Fayaque< Text by Ray Shen/ DSBU >

Delta Taiwan's DSI team designed and installed a "360○ sky ring" projection in Fayaque's newly redesigned flagship store in the eastern section of Taipei city.

Besides building the Ring of Celestial Bliss, the largest outdoor projection system in Taiwan, at the 2013 Taiwan Lantern Festival during Lunar New Year, Delta produced a film integrating its brand promise and operational philosophy for the first time and premiered it at the 10m by 70m Ring of Celestial Bliss with its video and lighting integration solutions.

As Fayaque wanted to develop a brand new retail concept store, Delta's team assisted them in planning and executing the "360○ sky ring" edge-blending project. Located directly at the center of the retail store, this eye-catching edge-blending installation encompasses an 8m (in circumference) circular screen and utilizes eight (8) high-brightness Vivitek D5180HD projectors to create an inspiring and beautiful "360○ sky ring" projection.

Sky Ring utilized eight vivitek projectors

Marketing Director Charlie Pai of DSBU spoke at the ceremony

17Brand News

Brand Circle

Delta's UPS protects the critical applications for clients around the world< Text by Judy Wu/ MCISBU >

Russia's S7 Training Center

Delta, together with its strategic partner Landata, participated in an upgrade project to modernize the basic infrastructure Russia's S7 Training and Education Center. The project required developing a stable power supply for precision instruments used in aircraft take-off training. As the biggest aviation training organization in Eastern Europe, the S7 training center requires high quality and stable power supply solutions to prevent training interruptions and damage to equipment and flight simulators caused by power outages.

Delta collaborated with Landata and provided the client with the Ultron NT 160 kVA three-phase UPS, which supplies the facility with a stable power supply and can be expanded without requiring additional equipment. The director of the center commented, "The stable operation of complex equipment and instruments are at the core of flight simulation and training programs. A UPS that has the ability to maintain a stable power supply and provide full protection measures is the primary objective of this infrastructure upgrade. We have opted for world leading UPS manufacturer Delta's Ultron NT Series UPS through Landata to meet our needs."

The 12th National Games of China

China's 12th National Games are the country's biggest sports event. The basic infrastructure of the event required an uninterruptible power supply (UPS) solution to supply stable power to multiple venues without interruption and provide backup at key moments.

As a leading worldwide power supply manufacturer, as well as the UPS provider of other prestigious events, such as the Beijing Olympics Games, Guangzhou Universidad, and Shanghai World Expo, Delta won the bid to become the UPS solutions provider for China's 12th National Games. The venues will include the opening and closing ceremonies, men and women's basketball, men's Greco-Roman wrestling, men and women's freestyle wrestling, Wushu, and Judo.

Renowned Flash Memory Manufacturer in Thailand

After its merger and acquisition of a world-leading company's microcontroller and analog departments, the leading flash memory manufacturer in the embedded system market in Thailand urgently needed a stable, superior power backup solution to protect its production line, which is under a constant heavy load.

The previous UPS system solution adopted by the company proved to be inadequate to meet the requirements of a backup system for production line loads. The key objective of this upgrade was to keep the risk of production line interruptions to a minimum. Among all bids, the Modulon NH+ modular UPS by Delta was the only UPS and supplier that fulfilled the technical requirements of its production line's electrical backup. Delta triumphed over other world-leading UPS suppliers and won the opportunity to collaborate with this world-leading manufacturer.

18Brand News

Brand Circle

Delta launches InfraSuite Manager for DCIM< Text by Judy Wu/ MCISBU >

An enterpr ise needs to upgrade i ts IT infrastructure as it expands its business. As c loud comput ing, v i r tual izat ion, and centralization have become major trends for massive data management, operating and maintaining a datacenter has become increasingly challenging. The MCIS BU o f De l ta in t roduced the InfraSuite Manager, a DCIM system, to cope with these market trends. The InfraSuite Manager integrates key infrastructure and IT equipment on the same platform to completely enhance DCIM transparency and traceability. The InfraSuite Manager is a total solution designed in accordance with MIS needs to fully realize hardware and software system integration. From large-space cross-area data center management to rack-level or server-level internal monitoring, data analysis, and decision support, the InfraSuite Manager helps customers capture key operations of data centers to ensure uninterrupted business operation. The InfraSuite Manager provides for the management of seven major fields: energy, power systems, air-conditioning systems, environment, security, property, and servers and IT equipment. With the InfraSuite Manager, users can plan full-scale data center management and future maintenance and operation strategies. Overall, besides managing individual functions, the InfraSuite Manager's integrated data center management platform reduces cost and enhances IT efficiency, provides historical and real-time analysis, and extends the data center's lifespan.

Best for all industries: Delta AH500 medium-sized PLC< Text by Marketing Communication Department/ DGC > The AH500 is a medium-sized programmable logic controller (PLC) developed with Delta’s PLC know-how accumulated over the years. The AH500 integrated solutions, including the wastewater treatment control system, building HAVC system, and factory automation system, were also displayed. These integrated solutions have become the masterpieces for Delta to enter the high-end industrial automation market.

Since the AH500 and the AH500 integrated solutions were launched last year, they have received critical acclaim for easy operability, low cost, and high performance in real situations. As their scope of application has been expanding and innovating, examples of success include tufting machines, food packaging lines, gantry cranes, winding machines, 12-axle horizontal rotary screen printing machines, leather sorting machines, silicon wafer cleaners, lithium coating machines, water processing, heat exchange station, and so on. This shows the unlimited potential of the AH500.

Delta AH500 PLC

19Brand News

Brand Circle

Delta Electronics Foundation sponsors Xubai Zeng Journalism Awards

< Text by Michael Hsieh/ DEF >

Delta Electronics Foundation (DEF) sponsored the Xubai Zheng Journalism Awards for the first time by adding the Delta Energy and Climate Special Award. This award aims to encourage the media to get involved in the in-depth reporting of issues of green energy, energy saving and carbon reduction, so as to draw public attention to the importance of a sustainable environment. As both the old and new awards focus on public affairs, Delta hopes this can create a synergic effect.

As the oldest journalism award in Taiwan, the Xubai Zeng Public Service Awards reward outstanding reporting on public issues every year and is considered the Pulitzer Prize of Taiwan. The Xubai Zheng Awards thus enables the public to access great reports of public value, humanitarian concerns and policy supervision and enables the media to continue in its role as the "fourth estate".

Showing concern for energy and climate issues for a long time, DEF has encouraged the media to report more on related issues through different channels in recent years. The Rhythm Monthly won the newspaper and magazine category of the Delta Energy and Climate Special Award with its Civilization Code serial report. In this report, the Rhythm Monthly analyzed transportation, building and society aging issues from a social point of view to review environmental issues in a humanistic perspective.

2013 Delta Environmental Law Forum at Zhengzhou University< Text by Linda Li/ Public Affairs Dept., Delta Shanghai >

The 2013 Delta Environmental Law Forum, was organized by Delta Environment and Education Foundation (DEEF), and was held by the School of Law of Zhengzhou University (ZZU) at Zhengzhou University on October 19. "Eco-Civilization Construction and Environmental Resource Law Development" was the theme of this forum. More than 100 environmental law experts from nearly 20 colleges and universities from Taiwan and China Mainland discussed the matter at the forum.

According to Yancey Hai, promoting the sustainable development of eco-civilization construction is not only an important focus on the present environmental development but also the Delta's long-term endeavor and its mission : To provide innovative, clean, and energy-efficient solutions for a better tomorrow.. According to ZZU Vice President DanyingGao, resource-based industries featuring high energy consumption, high pollution and high emissions share a high percentage of Henan's economy, and Delta's business development in the field of energy - saving and environmental protection has set a good example for enterprises in Henan to learn.

At the forum, environmental law experts including DEEF Director Nigel N.T. Li, an attorney-at-law, and Professor Xiangcong Ma of Chinese Academy of Social Sciences (CASS) presented prizes to 38 master and doctoral research students.

Delta Chairman Yancey Hai (right first), ZZU Vice President DanyingGao (left first), and award winners

The winners took a group photo

20Brand News

Brand Circle

Delta opens advanced R&D Centre in Singapore that will focus on sustainable technologies< Text by Colleen Ho/ Corporate Communications >

Delta unveiled the Research and Development (R&D) Centre in Singapore in September. The new centre will focus on sustainable technologies such as energy management, bio-medical, networking and Internet of Things (IOT). The Singapore R&D Centre is the latest innovative research base in Delta Group. The Centre is located in Science Park II and currently employs highly-skilled staff members, including software, hardware, bio-medical and process engineers. Over 50% of our current professional staff hold master's degrees or doctorates.

In his opening remarks, Mr. Bruce Cheng, Founder and Honorary Chairman of the Delta Group said, "On behalf of the Delta Group, I extend our gratitude to the EDB for their support of our R&D initiatives. We have selected Singapore as the location for our R&D centre given Singapore's focus on sustainability, which complements Delta's mission to provide innovative, clean, and energy - efficient solutions capable of facing the issue of climate change. The Singapore government is strongly committed to developing innovative technologies, and the nat ion's pol i t ical and financial stability is exceptional. In addition, there is unparalleled access to a highly qualified local and international workforce".

DGC participates in CSICF< Text by Marketing Communication Department/ DGC >

In mid-October, DGC Director and General Manager Dr. Ronald Yu was invited to deliver a keynote speech on "Intelligent Building Development and Realization" by the Cross Strait Intelligent City Forum (CSICF) organized by the Suzhou City Government (SZCG) and the Taipei Computer Association (TCA).

At the ICF, participants including experts, scholars, and business representatives from Taiwan and China investigated and discussed the future of the intelligent city across the strait in terms of industry, academia, and research. In the speech, Dr. Yu introduced the international green building standards and the Delta's leading technology and rich experience in intelligent building. Dr. Yu also shared the Delta's know-how in intelligent green building (IGB), the Delta Taoyuan R&D Center. Compared to traditional office buildings of similar scale, the Delta Taoyuan R&D Center saves up to 53% on energy and up to 75% on water a year, and the building waste recycling rate is up to 95%.

Dr. Yu won heated feedback from the guests for his lively speech with rich content integrating theories with practice. Many expressed strong interest in Delta's energy saving technology and desires for further exchange.

Dr. Yu delivered a speech on intelligent city at the ICF to demonstrate the new charm of Delta

1 I Delta's founder and Honorary Chairman, Mr. Bruce Cheng (right), Mr Yeoh Keat Chuan, Managing Director of the EDB (middle) and Delta's Vice-Chairman Mark Ko (left) initiate the ceremony

2 I Top management and Delta Singapore team

1 2

21Brand News

Brand People

Thinking globally, footing locally in ChinaDaryl Liao, Executive VP & General Manager of Delta China, talks on Delta's development in China< Text by Vera Chen/Delta China > A population of 1.385 billion people, an area of 9.6 million km2, and 13 cities each with more than 10 million people - with these three figures alone, no one can overlook the vastness and potential of China. In 1978, China initiated economic reforms (Reform and Opening Up), to free the country from ideology, change its economic structure, bring in foreign investment, and turn a more centralized economy into a market driven economy that started long term economic evolution. That same year, young Daryl Liao was ready to start an extraordinary career, joining the Delta Group as the 36th employee. Looking back on 1978, it was an exceptional year. Strating from scratch

In the early 90s, China's social attention on economic reforms continued, which gave rise to the Pearl River Delta (PRD). Foreseeing business opportunities in the economic development trends of China, Delta began investing in China in 1992. Liao was a leader of Delta's pilot team into the China market, and knew the importance of his mission. "At the time, Mr. Ping Cheng led us march into China. From Dongguan, Wujiang and Wuhu to Chenzhou, we setup factories in areas of different cultures and living standards. For each chapter of this long story, there were episodes of rolling up our sleeves and creating something from scratch while facing every kind of challenges," says Liao.

"I could still recall each scene when I went there to open a factory. With past experience in setting up factories in Taiwan, TS Chen of the Construction Department and I needed to establish a factory on a piece of wasteland. With joint efforts, we finally erected factory buildings one after another into the horizon. We started the Wujiang Plant Project in 1999, at that time, I still remember the streets of Wujing were like abandoned after sunset. There was no one on the road and nothing to eat then. We use to make a joke of each other that if we lay down in the middle of the road on a hot summer's night, we wouldn't even be hit by a car!" Liao smiles as he recalls the memories of that

Quality always comes first at Delta, Mr. Liao (1st from right) attended a workshop on “How to win Deming Award” in 1992

22Brand News

Brand People

time. Behind his smile, we see his "united we stand" and "achieve or nothing" determination, and the persistence and perseverance for building something from nothing.

After working diligently and overcoming challenges for over two decades, we have turned Delta China, the manufacturing base supporting Delta's global operations, into an organization with more than 56,000 employees and a compound annual growth rate (CAGR) of 59.1% since 1995. "These are the best results of the concerted efforts of all Delta China employees who never give up. And they have our heartfelt gratitude!" says Liao.

People first: care for employees

The Development of Delta Group in China was never easy. Our team overcame waves of challenges not only by disciplined production lines and quality products but, most importantly, a seamless team with consistent support and friendship.

"Through it all these senior employees have been growing and working with us. Without them, Delta China would not be able to achieve so much. We need to take care of them with a thankful heart." Liao added, “Many people asked why Delta employees could leave their hometown and follow and recognize Delta so thoroughly. I said "stable and solid business operation and 'the devotion of each employee' were how we earned praise from others at the beginning. As a pioneering team, we needed to bring the Delta way to China and set an example for all Delta China employees. More importantly, it was our responsibility to pass down Delta’s mission and working pattern and implant the Delta DNA into each and every Delta employee, without distortion!”

Delta China has established a five-dimensional employee actualization and care policy integrating career planning, everyday life care, spiritual care, character education, and social concerns. "Education is a lifelong plan. When the sense of mission and recognition of employees grows and their professional competency improves, the sustainable development of Delta China will be a reality!" says Liao.

The business environment of the manufacturing industry has varied along with technological advancements. Enterprises focused in originated in electronic manufacturing services are now seeking expansion toward areas with higher added value. As a member of the China pilot team, Liao understands the most important thing for the sustainable development of Delta is to put "people" first.

Mindset Change, organization follows

As the world leader of power management and thermal management solutions, Delta is also transforming from an electronic manufacturing service provider into a system integration service provider to cope with changes in the dynamic business environment and market trends. As the group's manufacturing base, Delta China plays the leading role in Delta's upgrade and transformation.

Liao pointed out, within Delta, change points will be on business process and management model. In the past, Delta served leading brands in Americas and Europe and for one order, we would produce millions and even tens of millions of single model with exact the same process. After becoming system integration service provider, we need

Mr. Liao with colleagues at Wuhu

23Brand News

Brand People

to identify the need and target customers for each solution. As solutions can be customized, from development, sales, production, to the entire process, entire business flow is evolving. Externally, we need to raise the awareness of Delta brand. Although Delta China has abundant experiences in manufacturing, still, we need to enhance brand communication and efforts and improve our brand influence when moving towards branded business.

Liao admits, it actually requires us to change our mindset. We need to step out from the factories to the first line facing customers. With the establishment of a service platform, we could meet customers' expectations right from the production line. This will be the key of Delta's business transformation. He later elaborated: "Bruce kept reminding us that the most important mission of manufacturing team is to provide the best quality products, more than customer's expectation, with reasonable cost. Still, there’s a long way to go, but we will keep do our best to achieve."

Talent exchange program

After more than two decades of operations, Delta China has formed a strong manufacturing team. After a series of internal organizational adjustment, we have established a network with 42 branches and 64 technical support centers. We also continuously expand our distribution network for various types of products and solutions. Besides China, Delta has started its global deployment by setting up sales and service outposts in North America, Europe, Southeast Asia, and Northeast Asia.

According to Liao, with Delta's overall development strategy and dedication to developing business in China, we should think globally and team up with overseas teams. "This year, we have started a staff exchange program for DET. The first patch was sent in November for of one quarter. We will continue the program every year." This is a very good start when moving towards a global operation.

Liao says, "The powerful manufacturing production team of Delta China is like a power house. By connecting a pipe to Delta China, an overseas team can establish business processes, systems, and other supporting policies based on the local needs. With Delta China as the backup and regional team as sentinels, Delta China can open up the global market and build a solid foundation for these overseas locations."

Better performance with Delta experience

As one of Delta's most important bases, Delta China is responsible for how to maintain continuous competitiveness, integrate products for energy saving and innovation, assist in global branding, promote the sustainable operations of Delta, and more. In fact, these are what Liao is thinking about and implementing step by step.

From the Taoyuan, Zhongli, Liudu, and Yunlin plants in Taiwan to the Dongguan, Tianjin, Wujiang, Wuhu, and Chenzhou plants in China, it has been 36 years now. Liao smiles and says, "Honestly, the sense of mission is what has tied me to Delta for so many years." It is what drives Liao to keep moving forwards. Through the years with Delta, the China mission was the turning point that allowed Liao to shine the brightest.

1 I Event held at Wujiang site in 20062 I Opening Ceremony of Nanking site in 2009

1

2

24Brand News

Brand Academy

The IPCC 5th Assessment ReportIntroduced by the Delta Electronics Foundation< Text by Wim Chang/ Delta Electronics Foundation >

Delta Electronics Foundation (DEF) has maintained a long-term interest in energy and climate issues. Delta received an early copy of the 5th Assessment Report (AR5) by the Intergovernmental Panel on Climate Change (IPCC) through an associated scientific research society before the official release this September. The Foundation hosted a press forum at the Delta Sunshine Energy Education Base to analyze the AR5 report, and made use of direct web-based translations of the IPCC press conference to help more people understand the latest advances in climate science.

The Delta brand is built upon environmental and social accountability. Mr. Bruce Cheng established Delta in the 1970s, a period when the entire world was facing a difficult choice between energy exploitation and environmental conservation. Mr. Cheng believes that effective use of electrical power can reduce the consumption of natural resources, and dedicated Delta to producing highly efficient switching power supplies. Mr. Cheng did not simply found a company; he has also contributed to providing a better future for next generations. Forty years have passed and people throughout the world are now facing extreme climate change. Energy saving and carbon reduction have been identified as the most effective means of mitigating the impact of climate change, which has proven the accuracy and value Mr. Cheng's original vision.

The global climate system has always been dynamic. We have continued to make use of scientific methods to discover the secrets of the climate system. This helps us understand both historical and future climate trends and changes, predict future scenarios that people may have to face, and it provides us with the knowledge to protect ourselves.

During the mid-20th century, climatologists began discovering anomalous climatic trends. The global climate, which should have been heading towards the next Ice Age, was showing signs of significant warming. After intensive debate in scientific circles and despite uncertainties, most climatologists today believe the main reason behind current global warming trends is the large scale combustion of fossil fuels by the human race since the Industrial Revolution.

This is the reason the United Nations established the IPCC in 1988. Since then, the IPCC has released a climate Assessment Report every 6 to 7 years. The Fifth Assessment Report (AR5) released at the end of September points out that climatologists have 95% confidence that global warming trends experienced since the 1950s have been ultimately caused by human activities.

The full title of the latest 5th Assessment Report is Climate Change 2013: The Physical Science Basis . However, the AR5 is one of many chapters in a more comprehensive report, and it focuses specifically on the scientific basis of global warming. The AR5 chiefly compiles what we currently know about the Earth's climate in addition to relevant data and factors, and uses computer models to predict future climate trends. Another special report will be released on the impact, adaptation, and mitigation of climate change in March and April 2014.

Dean Bao-guan Wang of the Academia Sinica Research Center for Environmental Change (right), Director Dr. Qi-ming Peng of Delta Electronics IPCC AR5 Program, and Dr. Mei-ling Xu in Delta’s coverage of the IPCC 5th Assessment Report

25Brand News

Brand Academy

Human activity is the main culprit of global warming

According to IPCC analysis, greenhouse gases released by human activities have resulted in a radiation force (RF) of 2.29 W per square meter. This is currently the main contributor to global warming. The IPCC has obtained a precise calculation through a better understanding of aerosols. When compared to the 4th Assessment Report released by the IPCC 6 years ago, AR5 has increased the RF caused by greenhouse gases by 43%.

Some scholars have voiced doubts - is global warming caused by natural changes instead of carbon released by human activities? This is also addressed in this report. According to recent scientific research, ground surface temperature changes caused by cosmic rays or solar illumination cycles are far lower than that caused by greenhouse gases released by human activities. Between 1978 and 2011, solar activity data was collected using satellites. The RF was shown to be -0.04 W per square meter. Solar activity has actually decreased slightly during this period despite rapid increases in global temperatures.

The IPCC has compiled over 9,200 scientific papers and research articles, and found that the last 30 years have been the hottest period of the last millennium. Since 1880, the world’s temperature has increased by 0.85℃ as a result of greenhouse gases released through human combustion of fossil fuels and land development. If human production of greenhouse gases remains uncontrolled, the most advanced climate simulator (CMIP5) has predicted a worst case scenario where the average temperature by the end of this (21st) century will be 4.8℃ higher than that of the end of the 20th century.

Oceans, which cover most of the Earth's surface, have also experienced significant warming. Surface water to a depth of 75 meters has been warming by 0.11℃every 10 years for the last 30 years, storing 90% of the heat added to the entire globe. The heat content of surface ocean waters has increased by 17x1022 Joules from 1971 to 2010.

Warming oceans lose more water through evaporation, which increases water salinity in several regions. At the same time, there's the issue of rising sea levels. Since the 1970s, thermal expansion of heated oceans has accounted for nearly half of rising sea levels while the remainder is caused by melt water from ice sheets and glaciers. Sea levels have increased by 19 cm since the 20th century to the early 21st century. In a worst case scenario we would expect sea levels to rise by another 98 cm by the end of the 21st century compared with the end of the 20th.

The ocean has absorbed 30% of the carbon dioxide as well. Of the total greenhouse gases produced, about 155 billion tons of carbon has been sequestered by oceans. Oceans become more acidic after absorbing carbon dioxide. Since the era of industrialization, ocean pH has dropped by 0.1, and hydrogen ion concentration in seawater has increased by 26%. This is another effect of increased carbon dioxide.

Carbon budgets depend on global cooperation

As ground surface temperatures continue to rise, the area of land covered by permafrost in high latitudes of the northern hemisphere may shrink by 81% at the end of the 21st century compared to that at the end of the 20th. The melting of permafrost may release large amounts of methane buried under the ground. This will ultimately add another 25 billion tons of carbon into the atmosphere, leading to a chain reaction that none of us would want to see.

Other climatic elements such as the strength of typhoons, frequency of heat waves, and occurrence of extreme precipitation will also increase as a result of global warming. The second part of the Assessment Report will be released in March next year (2014). The report will list the vulnerabilities of various regions that could result from global warming.

26Brand News

Brand Academy

Scientists have again proposed the concept of a Carbon Budget at the conclusion of the AR5. In other words, every 1 trillion tons of carbon accumulated in the atmosphere will result in a global temperature increase of 0.8℃~2.5℃. Considering the interaction between various types of greenhouse gases and the fact that they could stay in the atmosphere for extended durations of time, we must limit our total production to below 800 billion tons of carbon. This would give us at least a 66% chance of keeping the global temperature increase by the end of the 21st century to less than 2℃ compared to the last 200 years.

We have already produced about 500 billion tons of carbon, with the year 2012 reaching a historical record high of 34.5 billion tons. If we refuse to commit ourselves to fixing the problem of global warming, there is no way we can avoid hitting the 2℃ threshold. And once we are there, we will start heading towards a future of a 4.8℃ increase in global temperatures.

Extensive energy savings

Rising global temperatures and increasing greenhouse gas emissions are scientific truths observed by numerous research stations across the world. From the perspective of scientific dialectics, everyone should continue to doubt and assess the reliability of observed data or prediction models used in climatology, and check whether these are suitable references for our policy-making processes.

If such doubt is founded upon distrust for human sciences and a complete repudiation of global warming, then the risk we face may not simply affect our generation. It could threaten the survival of the entire human civilization. While admitting the limitations and uncertainties of science, policy makers at every level must think things through and implement suitable measures to avoid the worst. Governments, corporations and individuals alike must take immediate action to mitigate or counter the threat posed by global warming.

Many international think tanks such as the International Energy Agency (IEA) have pointed out that energy saving is the best means to reduce the rate of global warming. Over 70% of carbon emission reductions by humanity can be realized through improving energy use efficiency. This is the mission that Mr. Bruce Cheng is committed to. The DEF is dedicated to promoting public awareness of the threat posed by climate change as well as energy saving and green building concepts. We hope that our efforts in reducing carbon emissions can be applied to where it matters most.

Live StreamDelta Electronics Foundation began participating in the UN Climate Change Conference of Parties (COP) in 2007 to gain information and news directly from the front lines of the international climate change plenum, and to provide Taiwan's journalists and public with the rare opportunity of accessing international discussions about climate issues. In 2012, the Foundation acquired one of the four observer seats available to Taiwan in the United Nations Framework Convention on Climate Change (UNFCCC).

The 12-day long 19th COP was held in Warsaw, Poland, from November 11th, 2013. Representatives from Delta Electronics Foundation arrived at the front line of this international coalition against global warming to provide Taiwan with the most up-to-date progress of international discussions via live streaming.

27Brand News

Delta Group officially launched its Shanghai Operations Center and R&D Building in November, 2011. It is a significant milestone in greater China region. The new building serves as a hub to integrate Delta’s marketing and services networks, to rapidly respond to market demand and to further

News Station

< Text by Sammy Sun/ Corporate Marketing Office >

Policies speed up the development of Taiwan smart green Building Industry

Worldwide waves on environment protection and energy saving have driven people's attention in recent years. Building sector has made up of 40% to 50% total energy consumption, which makes Smart Green Building a trendy solution for the issue. Taiwan has gone through 20 years of developing its smart building industry, and Taiwan's Green Building Evaluation system "EEWH" is the 4th Green Building Standard all over the world. Taiwan stands at advantage to compete in the global market.

Taiwan Architecture and Building Research Institute report that Taiwan smart green building industry has estimated revenues of US $12.3 billion in 2010, with a steady growth trend. What drives future prosperity of the industry is alliance and cooperation of players. Government should assist in funding domestic system integration vendors or representative enterprises, in order to build up success cases, which in the long run could be exported as total solutions.

Ministry of Interior, along with Ministry of Economic Affairs, R.O.C has planned forward "Smart Green Building Promotion Proposal" and been authorized by Executive Yuan, R.O.C. Since 1st July 2013, Taiwan government has enforced that public buildings with construction costs over NTD $50 million require to hold candidate green building certificate and the Green Building Mark; public buildings with construction costs over NTD $0.2 billion need to acquire candidate smart building certificate and the Smart Building Mark. It is generally expected that with the policy facilitation, Taiwan smart green building will speed up developing, which offer wide space for domestic companies to leverage.

You also can reach more information by connecting DeltaINSIGHT for "2013台灣智慧綠建築產業研究報告" http://deltainsight/Report.aspx?id=4512&cid=42

Entry Automotive Electrification Market - Segmentation and Product Strategy are Priority

What is driving growth today and what will sustain it in the future? Electrification will be a major driver of growth

in the automotive industry, but barriers to entry are very strong. According to Automotive World study, the Tier 1 suppliers take 99.7% market of Worldwide Powertrain, and the traditional OEMs also take 98.5% market share in the world. Automotive World analyst thinks more consolidation is expected across all levels of the value chain in the next few years. Many Automotive OEMs have a diverse electrification strategy offering varying levels of electrification using similar product platforms. There's multiple segments and key OEM clients of the hybrid/EV market can be targeted by suppliers designing modularity into the product allowing substantial cost reductions. Today's Alternative Powertrain challenges require technology advancement or changes in the market, but strategic planning can mitigate them to a huge extent. A structured approach to defining the product portfolio and target markets will minimize risk in a volatile and fragmented market.

You also can reach more information by connecting DeltaINSIGHT for "Electric Powertrains-Where we are today and the Challenges Ahead?" http://deltainsight/Report.aspx?id=4535&cid=8

Next education solution, MOOC

MOOC has been the new trend in education industry and it provides interactive user forums that help build a community for the students, professors, and teaching assistants. It will affect traditional education ecosystem. MOOC (Massive Open Online Course) refers to the massive open online course platform, the U.S. New York Times called 2012 as "The Year of the MOOC" .The major platform is Coursera, Udacity and edX. Unlike traditional courses, MOOC require additional skills, provided by videographers, instructional designers, IT specialists and platform specialists. The platforms have availability requirements similar to media/content sharing websites, due to the large number of enrollees. Also, MOOC typically uses cloud computing and will facilitate relevant market to growth.

You also can reach more information by connecting DeltaINSIGHT for " [ Market Analysis] Education Technology Industry, 2013 Q3 Update" http://deltainsight/Report.aspx?id=4454&cid=11

Delta Green Life

28Brand News

Unusual border crossing tour to the lion city: low carbon travelSpeaking of transits on long trips, how to spend time between flights is always a headache, as transit time may last five to six hours. Therefore, large international airports usually plan leisure and recreational facilities for transit passengers. Take Singapore's Changi Airport, one of the world's very best airports, for example. There are comfortable resting places, cinemas, foot massage and free internet service everywhere. Yet, many may not notice this extra-value "free service" from Changi Airport: a 2-hour guided city tour! Passengers with a transit time of longer than five hours can register at the Free Singapore Tour (FST) counter in terminals 2 and 3. There are two tours: Heritage Tour and City Lights Tour.

Heritage Tour: The Heritage Tour with English guides is available at 9:00, 11:30, 14:30, and 16:00 daily. In the tour, visitors can experience the history, culture and lifestyle of multi-racial Singapore from different local landmarks, including Merlion Park, Singapore Flyer, Gardens by the Bay, and Chinatown or Little India.

City Lights Tour: The City Lights Tour is available only once a day, at 18:30, also with English guides. In the tour, passengers can enjoy a panoramic view of Singapore's famous icons along the Marina Bay Waterfront Promenade: the Singapore Flyer, Marina Bay Sands and Esplanade. Other highlights along the tour are Bugis Village and Raffles Hotel.

Free city tours for city promotion

I took the Heritage Tour, the 9:00 am one. When I was lining up in front of the FST counter, staff asked what I wanted and confirmed by status (making sure I was a transit passenger and wouldn’t miss my flight). When registering on the tour, passengers must show their passport, flight ticket, and boarding card and fill out an application form. Passengers must hand over the application form and their documents for inspection before they can collect a tour sticker and instructions. Staff there patiently explains, again and again, everything to passengers, including the meeting time and meeting place, the required documents, points for attention, and so on.

From these small things, I could feel how much effort Singapore has spent on the planning and design of these free city tours. Of course, there is no free lunch! Besides demonstrating the friendly and thoughtful image of Singapore, these tours are planned to attract huge amounts of transit passengers each day to stay in and travel Singapore.

Applicants are requested to report to the meeting place 35 minutes in advance. At the same time, they must affix the sticker to their chests to identify themselves. The guide started the roll call with the registration data. When

Need a plan for transits in advance

There are only 40 vacancies in each free city tour for transit passengers

Merlion: the landmark and icon of Singapore

Delta Green Life

29Brand News

Specific sticker ID for FST passengers

1 I Singapore city tour in comfortable coach

2 I Colorful and splendid Little India1 2

everybody was present, we were taken to the immigration counter downstairs to complete the entry process. Without the need of a visa, the tour guide took all the passports into his custody before taking this tour with members who did not know one another to the exit and climb aboard the comfortable coach standing by there.

On the way to the city, the guide explained to us the history, characteristics, and views, and urban development of Singapore. The most avant-garde landscapes and the oldest cultural heritage sites are both a focus. The history of the colonial period and urban development were the main contents of the tour.

Our guide was a cute little lady. She faithfully played her role as a goodwill ambassador, as she wittingly or unwittingly told us that it was a pity to travel Singapore for just a short time, and there were many more fine foods and great views she was unable to show us as time was limited. She also suggested that we could plan a few days in Singapore during our next transit. One recommendation method impressed me most: Singapore preserves Asian traditions while adopting modern architecture, Western transit passengers heading for neighboring countries like Malaysia and Indonesia can stay in Singapore to adapt and reduce culture shock.

Low carbon and low expenses

This city tour cost me nothing, nor were there any sales or commercial activity. When we returned to the airport, local staff even gave each of us a bottle of mineral water. Locker service was the only thing I spent money on, because I did not want to take my luggage with me on the tour. After returning to the airport, the guide made a roll call again. When we heard our names, we took back our documents and took our flight to our destination. The entire process took just two hours.

Although it did not cost me a penny, this free tour for transit passengers is very popular. Even qualified passengers (transit time longer than 5 hours) may not be able to make an appointment, as there are only 40 vacancies in each tour. A tour is full when just a few families join it. Anyway, qualified passengers should try it without specific arrangement, and leave it up to chance.

Besides Changi Airport in Singapore, many international airports have teamed up with local agents to arrange short city tours for transit passengers. However, most of them are charged. However short the transit may be, by arranging more travel opportunities for transit passengers can make low-carbon travel a reality. Besides reducing time and energy, this will not need extra resource consumption.

Delta Green Life

30Brand News

Delta and Kevin Lin to explore the world< Text by Tali Wu/ Delta Electronics Foundation >

The Sahara Desert, the Silk Road, and the Gobi Desert are the three regions in the world with the severest water scarcity. There are only less than ten people who have successfully run across these three severe regions that also feature great diurnal variations in temperature. Ultra marathon runner Kevin Lin from Taiwan is one of them.

In mid-October, Delta Electronics Foundation (DEF) invited Kevin Lin to the Sunshine Energy Education Base to share his experiences in exploring the world with his feet and how he was inspired to develop a concern for the environment.

Show concern for water resources by running

Lin spent more than 20 years to develop the strength to surpass himself. He finally erected Taiwan's national flag in the desert, fluttering over the world. He points out that water is the power that keeps one going in all kinds of sports. Therefore, a stabile and hygienic water supply along the route is what enables an athlete to finish an ultra-marathon. In recent years, he has combined running with charity, hoping to attract more people to pay attention to environmental protection, particularly water resources in desert areas.

According to Lin, it was heart breaking to see children die from water scarcity or water pollution in the Sahara. If he could arouse the public to show concern with environmental protection and help people living in these areas with his favorite sport, he would love to do so. In 2007, Lin and ultramarathoners from the USA and Canada ran 7,500 km in 111 days across the Sahara to remind the public of the crisis of water scarcity. It was the first time humans had run across this location with the severest water scarcity in the world. Later on, in 2011, he finished ran 10,000 km along the Silk Road in 150 days.

This year, Lin eyed the Gobi desert to express his concern for water resources. As the title sponsor, Delta aided Lin to make a documentary and join international film festivals to share Lin's adventures with the world, so as to put Lin's story on the big screen and let everyone see the severity of water scarcity and medical service shortages that nomadic peoples living in the Gobi desert, one of the world's most marginal places, are facing. Lin set out on his mission from Inner Mongolia in July, the hottest month in the Gobi. In 40 days, he finished the entire journey of 2,400 km. Lin encourages everybody to be persistent and achieve all targets with strong determination and faith. Most importantly, we should never forget the mission of these targets.

At the end of his sharing, Lin foreshadowed the publication of his Gobi documentary next year. In fact, he wants to share more stories at international film festivals for more people to develop concern for water resources.

Kevin observed the water resources at Gobi dessert

Delta Green Life

31Brand News

1 I “Best Documentary” for Golden Horse Awards

1 I To promote Vivitek Qumi via the film activitities

1

2

"Thank you, Delta," spoken by director Po-Lin Chi, having just won the Best Documentary Award at the 50th Golden Horse Awards. Sponsored by Mr. Bruce Cheng from the Delta Electronics Foundation(DEF), "Beyond Beauty–Taiwan from above" is Taiwan's first aerial photography documentary. Exposing environmental problems through aerial photography, the film has aroused heated discussions from different areas and brought the number up to US$ 3.3 million in one month after its opening, breaking the Taiwan box office records for a documentary. Meanwhile, it also won the Best Documentary Award at the 50th Golden Horse Awards. When presented with the award, the director, Po-Lin Chi specially thanked Delta for "offering the greatest help when lacked resources". For increasing the exposure of "Beyond Beauty" to the public, the DEF not only held a charity premiere on October 5, but also arranged the screenings in Taoyuan, Hsinchu, Tainan and other locations. Nearly 2,000 audiences in total including faculty, students, partners in charity program and Delta's colleagues had watched this film. During two-week after the premiere, DEF promoted the film by holding a lucky draw of Vivitek Qumi at Vie Show Cinema in Taiwan. The two-week event was estimated to attract more than 400,000 audiences to watch this film and know more about the Delta. Next year, the Low Carbon 3D Movie Tour bus sponsored by the foundation will stop by townships to screen the film, making more people to see the beauty and sadness of Taiwan through the Delta's display solutions. Problems revealed in this film such as land development, impacts and pollution caused by economic development have aroused in depth analyses, which have been written by experts, environmental groups and the media. DEF continues to inspire Delta employees to practice the low-carbon actions or join the environment protection group to cultivate social citizen's concepts and furthermore influence the government policy.