About the CSR - Chroma ATE€¦ · holds the biggest share of the world market. Highly Integrated Measuring and Automated Production Line – Asia's No.1! We have outstanding technology

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About the CSR ReportThis is the first issue of Chroma ATE INC.'s Corporate Social Responsibility (CSR) report. The economic, environmental, and social aspects of our concept for sustainable development are presented in this report. Chroma discloses and reports all relevant data and also issues our CSR report every year.

Time of the Report

From January 1st, 2014 to December 31st, 2014. Scope and Composition of the Report

The scope of this CSR report only includes Chroma's headquarters in Taiwan and does not include our overseas subsidiaries or service points. The composition of this report includes our financial, environmental and social performances. Some of this information, such as the financial information, is disclosed through Chroma headquarters, subsidiaries and other service points.

Reference

This CSR report complies with the Global Reporting Initiative, Sustainability Reporting Guidelines Version 4.0 (GRI G4). The full content of GRI G4 is attached for reference. Contact information

If you have any further questions with regard to

the ‘Chroma 2014 CSR Report', please contact

us. This report is also available on Chroma's

company website.

Address: 66 Huaya 1st Road, Guishan, Taoyuan

33383, Taiwan

Website: www.chromaate.com

Contact: Paul Ying ( 應正 )

TEL: +886-3-327-9999#2001

Email: [email protected]

Message from the CEOIt's our honor to present Chroma ATE INC's 2014 CSR Report. This is our first non-financial performance report. 30 Years as a Profitable Corporation

It has been 30 years since Chroma ATE Inc. was first established on November 8, 1984. Chroma has been a profitable corporation since it was established 30 years ago and the company's EPS has been maintained at NT$2.5 for more than 10 years. Our outstanding financial performance is a feedback to our shareholders and investors. In order to celebrate the Chroma Group's 30th anniversary, we have held various of activities to commemorate the milestones in our company's development. We are preparing to build a 10,000 m² new headquarters at A7 special industrial zone. We believe that the Chroma Group's profits will increase significantly by increasing our investment in our headquarters. Moreover, we have published a new version of the 'Introduction of Chroma ATE Inc'. to give our domestic

and overseas stakeholders a better understanding about the achievement of Chroma's thirty-year-long management. We Value Our Customers' Feedback

As a leading company of global Turnkey Testing & Automation Solutions, we place a high value on our relationship with our customers. Beginning in 2010, we started sending ‘Customer Satisfaction Questionnaire' to interview customers aimed at customer's with a turnover of over NT$ 100,000. The survey is written in three languages, namely traditional Chinese, simplified Chinese and English. The questionnaires were divided into four categories, which were products, promotional activities, sales representatives, and after-sale services. According to the results, our customers speak highly of our services. Green Production Processes

In keeping with our production processing principle of green products for sustainable environmental protection, Chroma successfully completed 80 product changes in 2014 to meet with the requirements of the RoHS's Restriction of Hazardous Substances Directive 2002/95/EC (RoHS). Although RoHS is not a law that regulates our company, we still take it as the highest standard for inspection of the origin of our raw materials. Chroma's products are categorized as

category 9 and we expect to make all of our products RoHS compliant by July 22, 2017.

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Ethics and Integrity

In order to promote business conduct that complies with ethics and moral integrity, as well as to support the nation's regulations, Chroma carries out the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies. Our employees, managers and the Board of Directors are all expected to strictly regulate their behavior in accordance with workplace ethics. We not only ask our employees to follow our ethics and business code of conduct, but also ask our suppliers to work in accordance with this requirement. Our suppliers must sign up ‘Supplier Honesty Agreement' and are strictly prohibited from conducting acts that are against the interests of our stakeholders. Employee Care

Chroma is fully devoted to cultivating our employees. We not only hold professional training classes inside and outside the company, but also let our employees receive new concepts from outside the organization. Moreover, we have established a Cloud Learning System, which includes a Chroma Knowledge Management Platform

and I Learning Platform. In addition to fostering our employees' professional knowledge, we also value interaction between employees, and have therefore established 11 different clubs for our employees. Looking to the future, we hope to not only grow with our employees, but also to become a world-class enterprise that measures to the goal of sustainable management through innovated technology, internationalization and has its own brand name.

CEO of Chroma ATE Inc.Leo Huang

2014 CSR Report

About Chroma

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About Chroma 05

How We Prepared Our Report 11

Financial Performance 20

Corporate Governance 28

Green Production Processes 33

Occupational Safety Management 42

Employee Care 45

Social Participation and Charities 65

Appendix

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About Chroma

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2014 CSR Report | About Chroma | How We Prepared Our Report | Financial Performance | Corporate Governance | Green Production Processes | Occupational Safety Management | Employee Care | Social Participation and Charities | Appendix

Chroma Ranked No.1 in Power Electronic Test Solutions

Chroma is a world leading automatic test equipment (ATE) enterprise and a supplier with its self-owned brand as well. Now Chroma has nine test solution groups: video & color, power electronics, passive components/electrical safety, semiconductors/IC, solar energy, LED, battery, electric vehicles and optical components. For power electronics, Chroma holds the biggest share of the world market. Highly Integrated Measuring and Automated Production Line – Asia's No.1!

We have outstanding technology for Information and Communication Technology (ICT) hardware and software integration. We provide our customers plants with excellent functionality in areas such as the Internet of Things (IoT), Big Data, Artificial Intelligence (AI) and Cyber Physical Systems (CPS). With smart data collecting and smart computing, we are able to deliver DUTs to test stations through timely and well-suited routes. Our highly Integrated Measuring and Automated Production Line is ranked No.1 in Asia.

More than 600 patents obtained worldwideChroma continuously invests resources to develop more advanced and innovative technologies, including turnkey automation solutions. As of today, we have obtained over 100 core technologies and more than 600 worldwide patents, including 370 patents in Taiwan that have made Chroma the industry-leading patent owner in Taiwan's measurement and testing industry. Revenue gained in the first year of establishment. EPS of more than NT$ 2.5 for the past ten years

It has been 30 years since we first established the company, on November 8th, 1984. Chroma has been a profitable corporation since it was established 30 years ago, and the EPS has been maintained at NT$2.5 or more for the last 10 years.

Test & Measurement Technology

Automation Integration

Manufacturing Execution system

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Third Party Recognition

We have received numerous awards and recognition from other third parties, which is an acknowledgment of our hard work.

The following are some major awards received by Chroma in recent years: ˙ISO 9001Quality Management System

Certificate

˙ISO/TS 16949 Quality Management System Certificate for Vehicle Industry

˙Awarded the 1st Taiwan Mittelstand Award from Ministry of Economic Affairs in 2013

˙Industrial Technology Development Award given by Ministry of Economic Affairs

˙Received Taiwan Excellent Award / National Industrial Innovation Award / Taiwan Excellent PV Award

˙Named Best Managed Companies / Best Corporate Governance / Best Mid-Cap Company by FinanceAsia

˙Named one of ‘Asia's 200 Best Under a Billion’ companies by Forbes

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▲ Chroma Received the 1st Taiwan Mittelstand Award from Ministry of Economic Affairs in 2013

| About Chroma | How We Prepared Our Report | Financial Performance | Corporate Governance | Green Production Processes | Occupational Safety Management | Employee Care | Social Participation and Charities | Appendix

2014 CSR Report


Chroma and the Chroma GroupChroma has expanded globally with branch offices established in America, Europe and Asia. Moreover, we have dealers in major cities all around the world to provide timely and convenient services to our customers worldwide.

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CommitmentDeveloping Global Leading Products & Becoming World-Class Enterprise.

Working on Better Solutions

Customer Satisfaction with Quality First

Be Initiative, Accountable & Innovative for Superior Technology, Quality & Service

Caring, Sharing, Being responsible, Teamwork & Striving for Excellence

VISION

SPIRIT

CULTUREPOLICY

VALUE

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One Minute Chroma – Know Chroma in 60 SecondsDate of Establishment: November 8th, 1984

Paid-in Capital: NT$ 3.79 billion

Stock Code: 2360

Chairman: Mr. Leo Huang

General Manager: Mr. Leo Huang

Total Number of Employees: Worldwide: 1,850 Taiwan: 1,400

Headquarters: Taoyuan, Taiwan

Consolidated Revenue in 2014: NT$10,310,000,000

Main Products:Precision Electronics Measuring EquipmentAutomated Test SystemsManufacturing Execution SystemsTurnkey Test & Automation Solutions

▲ TTV's TV program, "In Depth Report," reported Chroma’s top testing technology.

https://youtu.be/bCq-Vpuv2J0

https://youtu.be/uRfibiGhnEA

https://www.youtube.com/watch%3Fv%3DbCq-Vpuv2J0

https://youtu.be/bCq-Vpuv2J0

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How We Prepared Our Report

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We drew up this report on the basis of the following three principles.

1.Establishing the principles for preparing this report

The core value of drawing up a CSR Report concentrates on identifying material aspect processes on the basis of major significant principles. ''Material aspects' refers to those aspects which can reflect an organization's significant economic, environmental and social impacts; or substantively influence the assessments and decisions of stakeholders. 2.Preparation of GRI G4 General Standard Disclosures

According to the GRI G4, General Standard Disclosures provide two different ‘ in accordance', that are:˙In accordance – Core˙In accordance – ComprehensiveThis Report is conducted under the ‘in accordance Core'.

3.Preparation of GRI G4 Specific Standard Disclosures

According to ‘GRIG4 Sustainability Reporting Guidelines', Specific Standard Disclosures can be divided into ˙Economic Category˙Environmental Category˙Social Category

The above-mentioned three categories (economic, environment and social) can be further divided into the following information:˙Disclosures on Management Approach (DMA)˙Aspects: Such as economic performance, raw

materials, and industrial relations.The aspects that are not identified as material aspects are not included in this report.

Economic

Environmental

Social

1.Establishing

2.Preparation

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4 Steps to Identifying Material Aspects and Boundaries

The four steps that we took to identify material aspects were identification, prioritization, validation and review. Step 1: Identification Related Issues

Through Chroma's internal meetings, we came up with a list that includes all the issues worth including in this report - the relevant topics. We followed the two general principles of the GRI G4 Sustainability Reporting Guidelines to choose the relevant topics, which are Aspects and Standard Disclosures. The following 53 topics are our relevant topics:

1. Employee welfare2. Labor standards2. Career development and future planning4. Industrial relations5. Customer satisfaction6. Manufacturing technologies7. RoHS / REACH / conf l ic t minera l

compliance8. Educational training9. Equipment operation training

10. Ethic and moral code of conduct11. Occupational safety12. Health and hygiene13. Waste disposal

14. Regulations for hazardous substances15. Energy management16. Product quality and time of delivery17. Factory introductions and tours18. Evaluation of production capabilities19. Confidentiality Agreement20. Implementation of regulations to be followed by

the company, suppliers and customers.21. Completeness and efficiency of the company's

internal control systems and their degree of adherence.

22. Qualified Suppliers have to sign a ‘Supplier Honesty Agreement'

23. Acts contrary to stakeholders' interest are strictly prohibited

24. Scrutinizing administration to ensure it meets internal and external regulations.

25. Inspecting and reviewing the appropriateness and effectiveness of internal control systems.

26. Ensuring implementation and improving the effectiveness of internal control systems.

27. Reviewing whether the company is in compliance with the law and relevant provisions. Also the appropriateness and efficiency of internal control systems and their degree of adherence.

28. Reviewing whether the company, suppliers and customers are in compliance with the law and relevant provisions.

29. The appropriateness and effectiveness of internal control systems and their degree of adherence.

30. Reviewing whether appropriate management of important risk subjects has been taken.

31. Occupational accidents and disease32. Compliance with environmental law33. Compliance with regulations34. Reduction of waste disposal; increase recycling

rate and reuse35. Plant management and maintenance36. Contractual compliance37. Sewage treatment plant38. Operational performance39. Performance of sustainability management40. Appropriateness of purchasing prices41. Reasonableness of order pricing42. Payment terms43. Financial status44. Sales performance (income from profit-seeking)45. R&D of new products46. Supplier performance review47. Financial transparency48. Income tax returns49. Reviewing whether the company's regulations are

reasonable.50. Company operations51. Anti-Corruption Commitment52. Protect ion of technical information and

transactional information53. Nature disasters, disruption, operation and

information security


Step 2: Prioritization

The relevant topics of this report are prioritized according to the GRI G4 Sustainability Reporting Guidelines.Stakeholder Inclusiveness:Defining the stakeholders and laying out in this report the actions that we will take to meet their expectations and interests.

Materiality:Identifying whether the topics that we have chosen have a significant impact on the environment, economy and society.

Sustainability Context:Disclosing the hard work that we have put in lowering or modifying impacts on the global or local economic, environmental and social developing trend which have been brought by our company. At the same time, in compliance with the GRI G4 Sustainability Reporting Guidelines, the relevant topics that we have defined in Step 1 are hereinafter called ‘aspects'.Our approach is to use surveys to collect topics that concern our stakeholders the most. We retrieved a total of 100. Through the statistics that we have collected, we obtained the following prioritization results.

Step 3: Validation

We validated the material aspects in accordance with the completeness principles of the GRI G4 Sustainability Reporting Guidelines, including:˙Scope: The aspects that ought to be included in this

report, such as Economic Performance, Emissions and Labor/Management Relations.

˙Aspect Boundaries: Defining the aspect boundaries of all significant material aspects.

˙Time: The completeness of the information reported on while making the report.

˙The list of identified material aspects has been verified by top decision makers.

Step 4: Review

After releasing this report, we expect to collect new information from our stakeholders to prepare for the new reporting cycle. We hope that the results will be helpful for the 'Identification' steps of the next reporting cycle.

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▼Prioritization list of material aspects and aspect boundaries

Relevant Topics Aspect Management Approach

Order

Boundaries

Inside Corporation

Inside Corporation

Employees

Managem

ent

Shareholders

Customers

Suppliers

Contractors

Government

External Third party Audit O

rganizations

Media

Material Aspects

Financial Performan

EconomicPerformance

˙Actively devoting ourselves into the development of turnkey test & automation solutions to create its broadness, deepness and completeness as well as bringing additional value and services to our products. Moreover, we provide one-step product measuring, automated production lines and manufacturing execution management systems to satisfy our customers' needs.

˙Launching Industry 4.0 automation solutions and manufacturing execution systems (MES)

˙Chroma built the world's first automated assembly and testing production line for LED bulbs.

˙We obtained more than 600 patents worldwide, including 0 patents owned in Taiwan.

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Customer Relations

Maketing communication

˙Carrying out‘Customer Satisfaction Surveys' every year by sending our questionnaire surveys via email once every year.

˙Juristic person seminars: We participated in juristic person seminars, such as those held by the Paris Bourse, Morgan Stanley, etc.

˙Domestic exhibitions: We participated the 2014 Taitronics exhibition.

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Order

Boundaries

Inside Corporation

Inside Corporation

Employees

Managem

ent

Shareholders

Customers

Suppliers

Contractors

Government


rganizations

Media

Material Aspects

Cultivating Employees'

Professional Skills

Training and Education

˙Providing internal and external training courses.˙We are open to enabling our employees to learn

new knowledge and receive new concepts from outside the company.

˙Providing customized training classes according to different grades of position.

˙We have built an Cloud E-Learning System for our employees, which includes items such as CKM Platform and I Learning Platform.

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Innovative Research and Development

Products and Services

˙We have started 14 new R&D Projects. Moreover, our expenditure for investment is estimated to reach NT$45,000,000.

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Occupational safetyOccupational

health and safety

˙Promoting occupational safety on an irregular basis.

˙We offer on-site plant visits by doctors.˙We organize health and safety seminars and

activities.˙We have formed a Digital Health Management

Database.

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Relevant Topics Aspect Management Measures

Order

Boundaries

Inside Corporation

Inside Corporation

Employees

Managem

ent

Shareholders

Customers

Suppliers

Contractors

Government


rganizations

Media

Secondary Aspects

Employment Benefits

Industrial Relations

˙In order to celebrate our 30th Anniversary, Chroma held a Family Day event at Linkou Stadium on November 8th, 2014. More than 2,500 employees and their family members participated in this event.

˙Providing year-end bonus and other bonuses.˙Establishing a Welfare Committee to offer welfare activities for our

employees.˙We offer a gym, swimming pool, aerobic classroom and fitness

equipment for employees.˙Setting up various aerobic courses.

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Hazardous Substances

Raw Materials

˙We completed 80 RoHS compliance changes.˙We established a printed circuit board assembly (PCBA) line.˙Holding regular meetings to review the completeness percentage of

green production processes.˙Standardizing processes for component approval.

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Customer Privacy

Customer Privacy

˙Modifying ‘Management Measures for Confidential Documents'˙Management of E-mail contents and FTP˙Access control for programs and data˙Strict control of research records and engineering documents.˙Specific internal control toward intellectual properties and parents.˙We signed unilateral or bilateral non-disclosure agreements with our

customers.

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Order

Boundaries

Inside Corporation

Inside Corporation

Employees

Managem

ent

Shareholders

Customers

Suppliers

Contractors

Government


rganizations

Media

Secondary Aspects

Legal Compliance

Regulatory Compliance

˙Establishing a Department of Law Affairs to follow national and international regulations. We also drew up internal regulations.

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General Aspects

Supplier Management

Supplier Evaluation

˙Holding regular meetings with our suppliers.˙According to Chroma's internal standard purchasing

procedures, we drew up Vendor Management Measures, Raw Materials and Products Purchase Management Measures, and International Purchase Management Measures.

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Waste Disposal Management

Sewage and Waste

˙Manage waste in accordance with the law.˙Standard recycling procedures in accordance with the

recycling code on packaging materials.˙Employees who filled in the questionnaires could take

part in lottery activities. We encouraged our employers to implement waste classification and reduce the amount of waste.

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Energy Saving and Carbon Reduction

Energy

˙Setting up Large power burn-in system, which saved 71% of energy composition.

˙Drawing up our CSR report to disclose energy emissions statistics.

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▲ Chroma's Prioritization of Material Aspects

Identification

Prioritization

Economic Performance

Marketing Communication

Training and Education

Products and Services

Occupational Health and Safety

Industrial Relations

Raw Materials

Customer Privacy

Regulatory Compliance

Supplier Evaluation

Sewage and Waste

Energy

Validation

Review

INFLU

ENC

E ON

STAKEH

OLD

ER A

SSESSMEN

TS AN

D D

ECISIO

NS

SIGNIFICANCE OF ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPACTS

STEP 1

STEP 2

STEP 3

STEP 4

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2014 CSR Report

Financial Performance

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Outstanding Financial Performance

Our integrated revenue in 2014 was NT$10.3 billion, an increase of one percent over 2013.Net income was 1.3 billion, which is a 9% growth over the 1.2 billion of 2013. The EPS of Chroma is NT$3.51. The dividend distribution: According to the ‘Corporate Protocol of Chroma ATE Inc.', the surplus can be divided into 1. Dividends for directors and supervisors, 2. Employee Bonuses (5~20%), and 3. Dividends for shareholders. Dividends for directors and supervisors was 8 million in 2014; and the employee bonus was NT$195 million.

▼Chroma's Significant Financial Performance

in 2014

2013 2014

Integrated

Revenue10.2 billion 10.3 billion

Net Income 1.2 billion 1.3 billion

EPS (NT$) 3.21 3.51

UNIT: NT$

Distribution of Chroma's Revenue by Product

The main services and products that Chroma provided in 2014 was test instruments & ATS which accounted for 57% of our annual revenue. Semiconductor test solutions comes next, accounting for 21% of annual revenue. The service that comes in the third place is turnkey solutions, which accounted for 18% of our annual revenue.

Other

Turnkey Solutions

SemiconductorTest Solutions

Test Instruments & ATS

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Risk Impacts and Opportunities brought by Climate Change – Industry 4.0 Smart Factory Solution

Under the global economic structure, climate change has brought risk and opportunities to the company and our stakeholders. We have ascertained that the physical risk of increasing amounts of CO² represents a significant revenue opportunity for our Industry 4.0 Automatic Solutions and Manufacturing Execution System (MES). Chroma assists our clients to update their manufacturing execution systems. The new system not only encompasses traditional MES functions, but also has CIM, EAP, device connections, integrated mechanical arms and so forth, and therefore facilitates the goal of establishing smart factories. The system enables the production line to obtain timely big data which can significantly raise the quality of products and improve efficiency. Chroma presents 5 key elements to customize smart factory solutions, including:

1.Advanced Analysis of Big Data

As an expert in integrated measurement equipment, Chroma offers customized turnkey test & automation solutions vis-a-vis power electronics, electrical safety, automated optics, LED/ lighting, photovoltaics, battery testing, thermoelectric testing, and temperature control. After collecting and integrating the testing data by SEM, we can use big data smart computing to

create professional an analysis model for each industry. By providing all measurement results collected from each testing machine, advanced intelligent decisions can be made to provide on-site managers with real time analysis statistics to further improve the production efficiency and product quality.

2.Virtual Factory Design and Integration of Automated Systems

Before building the actual production line and factory, we use virtual systems to design the production line and the factory, and to directly perform the integration of automatic system and production line. This can greatly lower capital, time, materials and other major costs needed for constructing a real factory, and allow the products to come onto market promptly. 3.Internet Devices and Systems

Chroma is equipped with the capability to carry out integrated plant export, we provide smart machine integrators and smart controllers to integrate all kinds of communication settings. This equipment allows the transmission of all the testing statistics and device parameters between each piece of equipment and provides our customers safe and real-time internet software and hardware devices.

4.Smart Devices and Systems

The machines can not only provide smart judgments and decisions, but also exchange information with other devices actively. Judging by actual circumstances, operating allocation can be made without the need for human intervention. This can

increase resource use efficiency in terms of materials, energy, human resources, time, and so on.

5.Robots and Robotic Arms

Chroma already has successful track record in automation integration, smart systems and robotic arms. We assist various world-class enterprises to build system integrated modular equipment, including smart factories, smart conveyors, smart MI, and robotic arms. Through smart collection and smart computing, we can deliver the to-be-tested products to the testing station through a timely and efficient route. Each production line is currently built with 5 testing groups and is composed of 16 testing points. Moreover, only one operator is needed to complete the work which used to need 20 operators to complete. When intelligent production lines are used, the quality of products is improved while further lowering the need for human resources and increasing production efficiency. Chroma has launched our Industry 4.0 Smart Factory Solution to help customers to optimize the energy efficiency of their factories and reduce CO² emissions.

1.Advanced

2.Virtual

3.Internet

4.Smart

5.Robots

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R&D Power-UP! Accumulating the Kinetic Energy for Future Revenue Growth

As the leading enterprise in the measurement industry, Chroma has launched a series of R&D projects. The total number of R&D projects is now 14; and the expenditure for R&D investment is estimated to reach NT$45,000,000.

The expenditure for R&D investment is about

NT$4,500

Programmable DC power supply with solar array

simulation

High bandwidth single-phase/3-phase AC source

New generation regenerative charge/

discharge Tester

New generation regenerative power lithium battery auto formation system

New generation high power bi-direction

tester

Research and development project for ultra-high power density bias current

generator

High power tracing simulation for electronic load

Research and development project of next generation dynamic leakage

current tester

Research and development project for ultra-high speed power grid switcher

High-speed auto AOI system for

critical dimension of mobile device metal

chassis

Super Hi-Vision 8Kx4K Video

Graphics Generator

User-defined waveform with

precision electronic load

Human-oriented operating machine and electronic load

development project

Super Hi-Vision 8Kx4K LCD panel

tester

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Item R&D Plan Plan Category ETCExtra R&D

ExpenditureBetter Energy Saving Efficiency Potential Customers

1

Programmable DC power supply with solar array

simulation

Full Specification Verification

2015 Q2

2 millionThe energy conversion efficiency increased from 87% to 94%; and the power factor has significantly increased, from 0.6 to 0.98, which can greatly lower our customers' power composition.

(1)HVDC: DC market requiring high voltage.

2High bandwidth single-phase/3-phase AC source

System Planning and

Design

2015 Q4 3 million

Adopts new generation high-frequency switch element and uses multi-loop control system to increase the system bandwidth by 2 times or more. Features of this project are: (1) High bandwidth with lower power harmonics, (2) Higher power density, (3) lower power consumption

(2)American AC market that requires high power factors.

3

New generation regenerative

charge/discharge tester

System Planning and

Design

2015 Q4

4 millionThe power regenerating design can bring the power gained from battery testing to the electronic grid. This not only increases the efficiency but also lowers air conditioning costs.

(3) PV Inverter: SAS power market that needs faster tracing speed of MPPT with smaller current ripple.

4

New generation regenerative power lithium battery auto formation system

Full Specification Verification

2015 Q1

0.5 million

Bidirectional power structure is used on both old and new formation system to achieve the power regeneration functionality. In addition to regenerating the released power and providing it to the system during formation, it also regenerates power that can be used by other devices. The following functions are to be expected: (1) power regenerated during discharging can be efficiently regenerated (both AC and DC) thus reducing energy waste (2) bidirectional synchronous rectification structure which not only simplifies the current circuit structure and cost, but also increases efficiency by 10% to 20%.

(4)The aviation information industry is taking off and has a huge demand for power supply. Both business and military class aircraft can have their working bandwidth increased to 400/800 HZ or above. This high bandwidth rate can reduce the complexity of machine operation and modify the high output voltage.

5New generation high power bi-direction tester

System Planning and

Design

2016 Q4

10 million

Instead of releasing heat during battery discharge, the energy of to-be-tested objects can be directed to the electronic grid. This can lower the utility rate of air conditioning and achieve the factory's goal of cutting CO² emissions. Besides, the modularized design can shorten the system's installation time and save energy by reducing the energy needed during production.

(5) Emerging green energy industry that seeks a lower carbon footprint, such as battery manufacturers.

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6

Research and development

project for ultra-high

power density bias current generator

System Planning and

Design

2015 Q4

2.5 million

Using Master-Slave power design and new generation build-in high power inductance line increases the bias current from 100A to 300A (+200%). This performance outshines the 125A standard set up of our competitors. The modularized design can be customized. While minimizing the cost and size of the equipment, the product quality can also be assured.

High Power inductance can be applied to high power products, such as solar energy inverters, electronic vehicle charger and the development of related components. This project provides full testing plan to ensure product reliability.

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project for next generation

dynamic leakage current tester

System Planning and

Design

2015 Q4 1.5 million

High accuracy testing and high speed scanning function can increase the testing efficiency and improve customer's production efficiency. At the same time, it can also reduce testing time and energy consumption.

Compliant with various regulations for dynamic leakage current, which makes it able to attract customers who need medical power supply and military scale power supply.

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project for ultra-high speed power grid switcher

System Planning and

Design

2015 Q4

1.5 million

Ultra-speed switch element is used for fast switching of AC, DC AC/DC current. This development can simulate the possible effect of current change on the products during actual operation. The switch element adopts an up-to-date generation switching function, which makes the speed twice as high as older generation techniques and includes the closest simulation of actual current change.

All manufacturers who produce power inverters and AC/DC power supply manufacturers. We provide all the essential equipment needed during R&D and production line testing.

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High-speed auto AOI system for key dimension

of metal chassis on mobile device

System Planning and

Design

2015 Q3

7 million

We use 2D+3D composite probes with rotating mechanism and patented scanning method (now applying for patent) to rapidly measure the size of metal cases. This testing system adopts an assembly line testing method and is able to test one metal case every three seconds. This development can be applied to more than 100 items (2D+3D). This is best suited for testing medium and small-sized mobile devices. Moreover, high speed comprehensive testing can greatly reduce the human resources required for supervising the mobile case yields.

This function is best suited for medium or small-sized components and satisf ies factories' needs for high speed testing. Targeting different sized key metal cases of all generations produced by different companies, the development can be applied to production line testing and quality control with appropriate editing.

▼List of R&D investment plan

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10Super Hi-Vision

8Kx4K LCD panel tester

System Planning and Design

2015 Q3

2 million

Adopting modularized multi-graphic design engine to process graphics from different area. It provides 8K real images and reaches high-speed image switching to cut the testing time on the production line. On the other hand, the power supply uses the newest generation technology which increases the speed by as much as over 90% and reduces the power wasted during the operation to save energy. We also improve power density by 62% compared to our competitors. Moreover, we have integrated module signal and power module into one machine to simplify production line use.

This technology can be applied to electronic white boards, medical displays, and electronic display boards. Some high-end consumers can also enjoy this development. The demand for ultra-large/ high resolution 8K has been soaring, and Taiwan, Japan and China's related LCM panel factories have all launched their own ‘Super-Hi-Vision 8Kx4K' testing equipment. The early stage market demand is taking off all products remain at a high-margin stage.

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Super Hi-Vision 8Kx4K

video graphics generator


2015 Q4

2.5 million

We use the System On Chip concept to integrate the CPU, graphic designing model engine and high definition multimedia interface into one high density chip. This method reduces the product's size by half and lowers overall machine power consumption by 40%. Moreover, the parallel processing structure increases the graphic display speed by 4 times and can significantly shorten the testing time on customers' production lines.

Japan is going to hold Olympic Games in 2020 and NHK will begin the test of high resolution 8K channels in 2016. Therefore, TV makers in Japan, Korea, China and Taiwan will begin to produce ‘Super Hi-Vision 8Kx4K graphic generators' and therefore raise the need for testing equipment.

12

User-defined waveform

with precision electronic load


2015 Q4

4.5 million

Simplified design! Comparing to the last generation, the modularized design can reduce the number of components by at least 30%. The high power tracing function can assist the yield of solar panel testing and contribute to the green industry.

Can further satisfy the first-line customers'high product testing demands.

27




13

High power tracing

simulation for electronic load


2015 Q2

1 million

We use 2D+3D composite probes with rotating mechanism and patented scanning method (now applying for patent) to rapidly measure the size of metal cases. This testing system adopts an assembly line testing method and is able to test one metal case every three seconds. This development can be applied to more than 100 items (2D+3D). This is best suited for testing medium and small-sized mobile devices. Moreover, high speed comprehensive testing can greatly reduce the human resources required for supervising the mobile case yields.

Solar panel plants, micro inverter plants.

14

Human-oriented operating

machine and electronic load development

project


2015 Q3

3 million

Human design provides a reliable time-saving solution for our customers. Starting from our customers' point of view, we have shortened the learning threshold for beginners. This can hugely reduce mistakes related to mal-operation and shorten production times and debugging times thus caused. In addition, we also make a little contribution to reduction of CO² emissions from human activities.

High power source plants, customers from various fields who haven't adopted this function could be potential new customers.

28

Corporate Governance

29


Board of Directors Improving Corporate Governance

Chroma selects its board members under the guidelines of the Company Act, with five directors and two supervisors in total. Six board meetings were held in 2014. Board directors are on average over fifty years old, and have abundant knowledge and management experience in the electronics industry. I n d e p e n d e n t d i r e c t o r s a r e c h o s e n independently in accordance with the Regulations Governing Appointment of

Independent Directors and Compliance Matters for Public Companies, which stipulate clearly the professional qualifications, independence, and limitations on concurrent serving. Under these regulations, Chroma achieves proper planning development strategies of corporate innovations, effective supervision, safeguarding stockholders' rights and interests, and moreover guides Chroma on sustainability issues, thus enhancing corporate governance. Chroma boasts a comprehensive organizational structure; in which staff members perform their

respective duties. In every unit, there is a management team spearheading the development of the unit and a corporate social responsibility unit promoting and implementing sustainable management policies.

▼ ▼The Board Members

˙Chairman of the Board: Leo Huang˙Independent director: Lin Kun-xi˙Independent director: Zhong Cong-ming˙Director: representative of Hui Mao

Investment Company, Zhang Zhong-ru˙Director: representative of Synpronic

Technology Investment Company, Zeng Yi-shi˙Supervisor: Zhou Ji-ren˙Supervisor: representative of Kai Sheng Investment Co.,

Ltd., Wang Zunyi

▼Organizational ChartAuditing Office

Chairman of the Board:

Leo Huang

Supervisors President's Office

President and CEO:

Leo Huang

Board of DirectorsShareholders

Technical Director

Semiconductor Test

Equipment BU

Test & Measurement

BU

Integrated System

Solution BU

Manufacturing Execution

System BU

Corporate Manufacturing

Advanced Technology Research

Center

Finance &

Administration Center

Operation Management

Center

30


opinions answer and ask questions, but they cannot participate in discussions and votes. When it is time for discussions and votes, they should avoid these activities and cannot vote on behalf of other directors.

Trade Secrets and Customer Privacy

In 2014, we enacted an amendment plan for Management Measures for Confidential Documents with the aim of completing more comprehensive standards and norms with which to educate the staff on how to protect Chroma's confidential information, including trade secrets and Chroma's intellectual properties, etc. Chroma safeguards the interests of the company, stockholders, clients, suppliers, and the staff. Regulations for confidential documents management are shown below: ˙Employees are required to keep trade secrets

and sign a Hiring and Confidentiality Agreement. Management Measures for Confidential Documents controls the management of confidential documents.

˙E-mails Management Measures, Information System Access Permission Management Measures, and Information System Accounts Management Measures safeguard information and manage access to information.

˙Work Record Management Measures and Project Information Release Management regulate R&D records and project documents, and ensure the information security of clients.

˙Patent Rights Management Measures includes processes on how to protect, manage and reward Chroma's intellectual property rights and patent rights.

Chroma has relevant educational training and materials for its staff, so that they can get a clear

grasp of the above Measures. For example, the managerial levels and employees must attend courses on Personal Data Protection Law and Trade Secrets Act, etc. Chroma's management team continues to pay close attention to foreign and domestic policies and regulations which could influence corporate finance and business. In 2014, Chroma did not receive any penalty or punishment on account of legal breaches. Additionally, Chroma has set up a rigorous entrance control and monitoring control system, continuously monitoring and controlling the entrance of people and vehicles. Ethics and Integrity

Chroma's Code of Ethics regulates the behavior of directors, supervisors and managers. Chroma follows Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies, promoting integrity in business operations. Chroma's employees, directors of all levels, and board members embody integrity in the working place. In addition to requiring our staff to work with ethics and integrity, Chroma also asks its suppliers to follow the same norms. Suppliers must sign a Supplier Honesty Agreement, which strictly prohibits suppliers and relative parties from having conflicts of interests. Chroma requires that suppliers do not to offer any improper interests to relative parties. Once suppliers are involved in any dishonest operations, Chroma may terminate any contract or agreement and ask for punitive damages. On the other hand, if suppliers discover any misconduct, they can report it to Chroma.

Develop internal regulations, fulfill business integrity

Chroma has formulated a management system which prevents insider trading, and serves as a guideline for disclosure mechanisms of significant events and information. Chroma carries out unscheduled scrutiny of its regulations to meet the government's laws. Any adjustment to company regulations is announced on Chroma's internal website for reference. Chroma's Board Meeting norms clearly dictate that if directors' personal interests or the interests of corporations which they represent in relevant meeting matters are likely to harm Chroma's interests, they can state their

31


Technology

ServiceQuality

extent Chroma's services are satisfactory to clients. Satisfaction Survey Results

In 2014, the overall satisfaction survey results were‘satisfactory'. Compared with the statistics of the previous year, the degree of clients'satisfaction for all kinds of services has risen. Of all these services, sales representatives provided the most satisfactory services to clients. Clients suggested that Chroma could offer regular visits, comprehensive explanation of products or educational trainings. Even though promotional activity statistics increased by 1.8% over the previous year, they were still lower than the averages. Many clients said they hoped to obtain more real time product information and attend more product experience activities. In the future, Chroma will hold more product activities and provide customers with more new product information. Regarding product quality, clients expect to acquire their orders in a shorter period of time. Clients' satisfaction with after-sale services improved the most over the last year even though few clients voiced opinions that product warranties were shorter than

expected. Over 74% of clients thought the functions of products were the main reason for purchase. 86% of firms have increasing demand for measuring equipment. All clients' feedback helps Chroma's project teams to develop new products. Chroma's Commitment to Clients‘ Self-motivation', 'Responsibility', and 'Innovation' have long been Chroma's core competencies. Under these guidelines, Chroma pursues better ‘techniques', ‘quality', and ‘services'. Chroma improves the global operational framework, collaborating with top-tier enterprises from around the world.

Looking Forward to Client's Feedback

Chroma looks forward to clients' feedback to see if they are satisfied with Chroma's services over the past year. Chroma will improve on its performance, competitiveness, and efficiency according to client feedback. Chroma has questionnaires written in three different languages, including traditional Chinese, simplified Chinese, and English. Chroma analyzes questionnaires from clients whose turnover with Chroma was over NT$100,000 in 2013. The questionnaires used are categorized into four subjects, namely products, promotional activities, sales representatives, and after-sale services. The aim of questionnaires is to see to what

32


Following International Standards to Select Suppliers

ISO 9001TS 16949

˙Level D—below 60 points: observed suppliers. Observed suppliers must improve on their performance within six months. If they do not reach standards within that timeframe, they are not eligible to be qualified suppliers.

Apart from this, new suppliers must also follow international quality assurance standards like the ISO 9001 quality management system and the ISO/TS 16949 quality management system for the automotive industry, which serve as standards by which we evaluate suppliers. During the process of cooperation with contractors, Chroma holds educational training classes and toolbox talks. In 2014, Chroma and contractors had twelve educational training events, which trained 106 people. In addition, Chroma held 1310 hazard notice & toolbox talks in 2014 to inform contractors of hazard events and the importance of safe working environments. Participation in Unions

Chroma actively participates in activities of industrial unions and associations. By joining unions and associations, Chroma and other companies share experience and reciprocation. Chroma hopes to contribute to the electronic test industry.

˙Taiwan Electrical and Electronic Manufacturers' Association

˙Taiwan Lighting Fixture Export Association

˙Photonics Technology & Industry Development Association

˙Taiwan Photovoltaic Industry Association

˙SEMI Taiwan

˙Taiwan Battery Association

˙SAE International Taipei Section

˙Taiwan Electric Bus Cross-Industry Cooperation Association

˙Taiwan Thermal Management Association

˙Taiwan Battery Association(Directors and Supervisors)

˙Automatic Optical Inspection Equipment Association

˙Electric Vehicle Operations and Energy Supplement Association

˙MIPI ALLIANCE

˙Taiwan LED Lighting Industry Association

˙Tze-Chiang Foundation of Science and Technology

Management of Suppliers and Contractors

Chroma has formulated documents such as the F i rm Management Measures , Raw Materials and Products Purchase Management Measures, and International Purchase Management Measures, and its purchase department follows these standardized purchase procedures. Chroma started a three-year supplier survey plan from 2013 to the first half of 2015, to examine suppliers performance. The criteria for this are as follows:˙Level A—over 80 points: priority suppliers.˙Level B—over 70 points: qualified suppliers.˙Level C—over 60 points: suppliers under

special conditions.

33

Green Production Processes

34

2014 CSR Report

With regards to the issue of sustainable env i ronment , we not on ly se t many environmental goals for environment, but also realize our vision of green production processes through expenditure and production planning. For example, we make leadless printed circuit board assemblies (PCBA), and build large power burn-in systems and have various measures for efficient control of power and water resources…etc.

34


2014 CSR Report

35


Building Green Production Processes- Chroma Built up Lead Free PCBA Process.

Minerals Declaration' and requires that its suppliers not use conflict metals. In 2014, we have started a large survey of supplier conflict minerals, of which 214 have been completed.

˙We comply with the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), a preventive management regulation for all chemicals entering the markets in the European Union. REACH was formally implemented worldwide

in June 1st, 2007. Chroma Electronics has now started the control of intensely focuses on polluting materials and survey of the supply chain.

˙Building Lead Free PCBA Process Lead free printed circuit board assembly (PCBA)

production processes includes entirely lead free processes like surface mount technology (SMT) and dual in-line packaging (DIP)…etc.

Building Green Production Processes

Beginning in 2005, we have started a series of policies and achieve the final goals of green production processes year by year. Here are the important milestones and performance implementation reports of our green production processes for Chroma's electronics production line over the past years.

˙RoHS Compliance Changes We completed 80 product changes in 2014

to meet with the requirements of the RoHS's Restriction of Hazardous Substances Di rect ive 2002/95/EC. RoHS is an environmental protection directive passed by the European Union in 2003. It mainly regulates the environmental materials used in electronic products. Although RoHS is not a law, we still regard it as the highest standards with which to examine our products.

˙No Conflict Minerals The‘Conflict Minerals Declaration' drawn up

by the U.S.A prohibits the use of minerals from the Democratic Republic of the Congo and the surrounding 9 countries, which includes Cassiterite, Wolframite, Coltan and Gold. Chroma Electronics abides by the ‘Conflict

˙Building the SOP of packaging materials recycling symbols The packaging materials Chroma Electronics uses all introduce international recycling symbols to elicit consumers' consensus and facilitate recycling.

˙In response to the Waste Electrical and

Electronic Equipment Directive 2002/96/EC (WEEE), Chroma Electronics made the 'WEEE declaration'. WEEE is an environmental protection directive passed by the European Union in February, 2003, which sets goals for the collection, recycling and regeneration of all disposable electronic electric machinery.

˙Building of environmental protection

components for X-ray fluorescence (XRF) analysis examination equipment.

˙Activating representative green product (GP)

changing operations and verification of GP production process capabilities. This includes building the standards for choosing lead free welding materials, parametric standards of lead free production processing and design standards of lead free printed circuit boards (PCBA).

2014 CSR Report

36


37


parallel burn-in.c. For 61511/12 and 61611/2 AC power parallel burn-

in.d. For 150kW & 300kW solar array simulator

verification and burn-in.e. For 61800 series 10kVA-300kVA regenerative

grid simulator power supply and verification environment.

2.Flexible Working Space

a. Space is divided into 12 positions which can be flexibly utilized for parallel burn-in.

b. Equipment isolation util izes rail-mounted warehouse version construction to keep flexibility for later maintenance and equipment expansion demands.

c. Facilities are located at the end of the factory, which is advantageous for arrangement and adjustment.

3.Lowering power energy consumption

a. Utilizes outdoor adapters and places them outside the factory, which can reduce the waste of space and decrease air conditioning wastage.

b. Heat generated loading room, not including burn-in loading, is designed using independent convection to expel dirty air by force. This way can decrease air conditioning waste and achieving power saving.

c. Taking the DC source H series for example, these

can achieve 71% saving efficiency. 4.Improving Workplace Safety

a. The extra addition of protection mechanisms and FM-200 automatic fire extinguishing design improves the safety of the workplace. Due to the product's complex serial/parallel mode and large power, there is no similar switch kit on the market so it is important for the safety of electrical use under human operation.

b. Burn-in wiring using AC/DC source separately increases safety and protection. Through systematized operation, we can avoid the industrial safety incidents caused by incorrect human operation.

Fee (Unit: NT$/day)

Before

construction10,165

After

construction2,955

Saving amount 7,210

Saving

efficiency71%

Reduce electricity consumption by

71%

Building Large Power Burn-in Systems to save 71% on Power Consumption

Chroma Electronics R&D department has built a 150KW-300KW large power burn-in system which integrates energy recycling concepts. Because of the increasingly high power of AC Source /DC Source, they all have the multiple parallel functions in product application, which can become complete systems to undergo relevant verification and burn-in system after introduction. Therefore, the energy saving, carbon reduction and other benefits brought by building large power burn-in systems would include: 1.Improvement of Product Quality

a. Beneficial to RD and QC departments carrying out large power product system verification, improving product reliability.

b. For 62000H series power (High voltage)

▲ Building a large power burn-in system, taking DC source H Series 150KW for example, can save 71% on energy consumption.

2.Flexible

3.Lowering

1.Improvement

38


Power Consumption Statistics

The statistics graphs can reveal the employment data of electrical energy in detail. Also, we calculate the CO² equivalent consumption from electricity use Concerning our electricity saving management, please see the fol lowing 5 eff iciency management measures.˙Use of LED lighting in public areas˙Eliminating heavy PCs in favor of small

desktop boxes˙Monitoring electrical use and managing

energy˙Rigorously managing the air conditioning

schedule˙Raising the temperature setting of air

conditioning

Water Resource Consumption Statistics: The statistics graphs reveal the employment data of water resources in detail. Also, we calculate the CO² consumption from water resource use.

Concerning our saving water management, please see the following 6 efficiency management measures.˙Installing water saving device on faucets˙Cutting down the water volume of toilet basins and

pasting water saving stickers˙Installing water saving devices on showerheads˙Tracking the kitchen water employment on a weekly

basis˙Raising the condensation rate of cooling tower

water emission˙Improving water leakage inspection Energy Density Disclosure

In accordance with the GRI G4-EN5 indicators, we choose the total revenue of the Chroma Group as the measurement standard of energy intensity and we choose the electrical energy type. The calculation result shows that the energy intensity of 2014 electrical consumption was 0.25% which is the same as that of the previous year.

39


Energy Density Disclosure

In accordance with the GRI G4-EN5 indicators, we choose the total revenue of the Chroma Group as the measurement standard of energy intensity and we choose the electrical energy type. The calculation result shows that the energy intensity of 2014 electrical consumption was 0.25% which is the same as that of the previous year.

Category Measurement Units 2013 2,014

Electricity Consumption

Amount of Electricity Used 8,555,093 9,154,867

Unit: kilowatt 4,457,203 4,769,686

The CO² produced is 0.521kg per kilowatt. 4457 4770

▲Statistic for Energy Consumption

【NOTE】1. According to the equivalent kilograms of CO² published by Taiwan Water Cooperation in 2014, the CO2 produced is 0.155 kilogram per 1000L.2. Following the GRI G4-EN16, CO² equivalent (metric ton) is taken as the measurement unit.

Category Measurement Units 2013 2,014

Water Consumption

Amount of Water Used 50,747 54,342

Unit: 1000L 7866 8423

The CO2 produced is 0.155 kilogram per 1000L. 8 8

▲Statistic for Water Consumption

【NOTE】1. According to the equivalent kilograms of CO² published by Taiwan Water Cooperation in 2014, the CO² produced is 0.155 kilogram per 1000L.2. Following the GRI G4-EN16, CO² equivalent (metric ton) is taken as the measurement unit.

40


Waste Management

Whether it is general waste or hazardous industrial waste, all waste needs to be adequately classified and disposed of, and the disposal plans are submitted to Environment Protection Units.We appoint profession and legitimate disposal companies to deal with waste from production so they can be adequately and safely disposed of. About waste recycling and reusing—we recycle and reuse the production waste and sell valuable resources or give them to qualified waste disposal companies for recycling and reuse. By doing so, we realize the concept of using resources effectively and have good waste management. The relevant waste management measures are: ˙Classifying waste by different categories

and characteristics˙Conducting on-site management and

properly marking disposal sites.˙Carrying out periodic management audits

for waste disposal sites.˙Arranging waste disposal companies to

audit in person˙Having a specially assigned person to

oversee waste removal procedures.

▲ Waste statistics of the plant of Linkou. Unit: tonne

Moreover, we continuously produce promotional material to instill in our employees the benefits of resource classification and recycling and the consequent benefits to the enterprise and employees. By doing so, we anticipate reinforcing the concept of recycling and reusing in employees so they spontaneously maintain and implement such actions.

amount of general waste

144.1amount of recycling

106.97

amount of hazardous industrial waste

62.86Waste statistics of the plant of Linkou. Unit: tonne

74.23%

41


填寫問卷好禮三重送

資源回收做環保地球環境會更好

環安中心

活動時間：2014年9月15日起至2014年9月26日止

參加對象：致茂及各關係企業(晶測、日茂、光遠、易維特、匯通)自由參加

活動辦法：

1. 參加者需於活動期間內，至企業資訊系統入口網站(EIP)公告下載問卷，

並填妥問卷資料後，採E-mail方式回傳至文婷(donna.chen)信箱，

始具抽獎資格，以信箱收件日期為準，逾期則視同自動放棄抽獎資格。

2. 為響應環保，請優先採E-mail回覆，

無電腦之同仁，可至A/B棟櫃台領取

紙本問卷，填寫完投入回收箱即可

3. 活動共有三波，詳情如下：

【填問卷好禮三重送Part 1】完整回答問卷就送精美禮品一份。

【填問卷好禮三重送Prat2】為鼓勵同仁踴躍參加填寫問卷活動，

有效問卷達200份將再從中抽出10名送7-11百元禮券1張。

【填問卷好禮三重送Part3】為感謝同仁熱情參與活動，

有效問卷達400份將再加碼10名送7-11百元禮券1張。

抽獎時間：2014年10月1日

領獎時間：2014年10月20日至2014年10月31日

注意事項：* 本活動實施中，如有未盡事宜，環安中心得保留其活動隨時修正之權利。

* 活動相關事宜與諮詢，請洽詢文婷(#8066)

Promoting Wastes Classification, Let's Recycle!

Chroma Electronics promotes sustainable development and waste classification. Through the continuation of this policy, we raise the environmental protection awareness of employees. Waste without classification will result in environment pollution, so we classify waste as ‘recyclable' and ‘non-recyclable'. Under this classification, we process our waste and carry out recycling. We also held a ‘Recycling Makes Our Environment Better' questionnaire activity in 2014. Employees who f i l led in the questionnaires could receive gifts including 7-11 gift coupons. We encourage our employers to implement wastes classification and reduce the amount of waste, in order to perform our corporate social responsibility.

🅐 Questionnaire activity, ‘Recycling Makes Our Environment Better,' in 2014. Employees who filled in the questionnaires could receive gifts. 🅑 Waste sorting and recycling 🅒 Propaganda poster for promoting recycling

🅐

🅑 🅒

42

Occupational Safety Management

43


2014 CSR Report

Occupational Safety and Risk ManagementImplementing Contractual Management

In accordance with the'Occupational Health and safety Act'and‘Regulations for Labor Health and safety Education and Training', Chroma ATE Inc. requires that laborers receive health and safety education before executing tasks. Furthermore, in order to increase safety consciousness, the Environmental Safety Center informs general contractors or supervisors of the potential hazards in construction. In 2014, we held 278 contractor meetings and 1310 toolbox talks.

Occupational Injury Statistics

In 2014, Chroma ATE Inc. had a total of 12 cases of traffic accidents and 5 cases of occupational injuries, which shows an upward trend comparing to the corresponding period of the previous year. So as to prevent injuries, we held several labor health and safety education and training sessions. By doing so, we expect to reduce the incidence of traffic and occupational injuries among our employees.

Health Management System

The‘Health Management System' was built in 2014 with the objective of arranging health examination results and medical care record of employees with a comprehensive and systematized management; in order to analyze diseases and risks for injury, and to develop health improvement strategies. For more information about our ‘Health Management System' please see the Chapter on Employee Care.

Setting up a Nursing Room

We set up a nursing room to provide immediate health and medical care. The services include doctor consultation, wound dressing, blood pressure measurement, blood sugar measurement and referrals. Employees can enjoy a convenient medical consultation service and have an understanding of their health conditions.

Occupational Safety Education Attendance Reached 91%

In order to improve the occupational safety awareness of our employees, occupational safety education and training sessions are held regularly. In 2014, 771 people presented in the aforementioned training which is a 93% attendance rate. We fully implement government regulations and control the maintenance of operation field safety of our employees.

Number of people present

Section Expected Attendance Actual Attendance Attendance %Section 1 2014/10/7 104 97 93%Section 2 2014/10/15 124 117 94%Section 3 2014/10/30 154 142 92%Section 4 2014/11/4 130 120 92%Section 5 2014/11/12 124 112 90%Section 6 2014/11/19 125 105 84%Section 7 2014/11/27 88 78 89%Total 849 771 91%

▲ Statistics for attendance of occupational safety education and training

　 2013 2014

Occupational Traffic Occupational TrafficNumber of cases 1 14 5 12Working hours lost 16 396 205 258Working days lost 2 50 26 32AR 20 486 235 296Total AR 506 532FR 8 9FR 31 28FSI 0.47 0.45

▲ 2014 Statistics for occupational injuries

44


Fire Accident Simulation Training

In accordance with regulations we regularly hold fire drills, which include evacuation drill, instructions to fire extinguisher and fire hose and practice of escape sling. Installation of Hardware Upgrades and Enhancing Safeguard Mechanisms

We maintain occupational safety by upgrading installations such as installation of large power burn in system and AC/DC source separated wiring to improve safety guard system. Moreover, systematized operation can prevent mis-operations that lead to industrial safety problems. For more information about the project please see the chapter on ‘Installation of Large-power Burn in Systems'.

45

Employee Care

46


Emphasis on Justice and Human RightsAbiding by the Principles of Human Rights and JusticeIn collective bargaining such as the company's monthly or annual meetings, Chroma's executives announce the minimum notice periods for significant operational changes, which shall be in accordance with the ‘Labor Standards Act'. In the case of major foreign investment contracts, we fully follow local human rights regulations of the relevant country. In 2014, we registered, handled and resolved 3 appeals in relation to labor practice and human right issues through the official appeals system. Among them, there was one complaint against sexual harassment and two against leadership and management; all of these have now been resolved.

46

We continuously improve our communication channels, including:˙Assigning a specialist in H&R Department to handle

employee relations issues˙Installation of employee appeal phone line: (03)327-

9580.

˙Instal lat ion of employee appeal mai lbox: [email protected]

˙Assigning a bilingual specialist to assist foreign employees in communication

mailto:[email protected]

47


Composition of EmployeesWe not only have friendly interaction with our external stakeholders, but also with our internal stakeholders – the employees.We disclose the company's management members and employees per category according to nationality; gender, age group, minority group membership, and a range of other indicators. This highlights the diversity

Main Category

Subcategory Subcategory IIMale Female Sum total

Number % Number % Number

AborigineYES 4 67% 2 33% 6

NO 1074 77% 314 23% 1388

Total 1078 77% 316 23% 1394

Nationality

R.O.C.(Taiwan)

950 79% 258 21% 1208

Philippines 111 96% 5 4% 116

Vietnam 0 0 49 100% 49

Indonesia 16 100% 0 0 16

Malaysia 1 100% 0 0 1

Thailand 0 0 4 100% 4

Total 1078 77% 316 23% 1394

▲Composition of employees of Chroma ATE Inc. and statistics for education training, 2014

of employees and the distribution of our human resources. We expect to be a leading enterprise in terms of diversified labor and management teams.With respect to gender equality, we implement equal remuneration for women and men. In accordance with gender equality principles, the minimum wage

doesn't vary by gender. We provide an equal labor force participation rate for female employees; women can also participate in elections for top management.

48


Percentage of Male Employees

77%

Percentage of Female Employees

23%

Main Category Subcategory Subcategory IIMale Female Sum total


employee Category : according to position

Management 288 86% 47 14% 335

R&D 347 90% 40 10% 387

Marketing 90 91% 9 9% 99

Technical 328 78% 95 22% 423

Administration 25 17% 125 83% 150

Total 1078 77% 316 23% 1394

Employee Category: permanent or otherwise

Permanent employees

912 78% 254 22% 1166

Non-permanent employees

Foreign laborers 128 69% 58 31% 186

R&D substitute service personnel

32 100% 0 32

contractors 6 60% 4 40% 10

Total 1078 77% 316 23% 1394

Age group

Under 30 316 74% 111 26% 427

31~50 724 80% 186 20% 910

51~ 38 67% 19 33% 57

Total 1078 77% 316 23% 1394

49


Main Category

Subcategory Subcategory IIMale Female Sum total


Education

Doctorate degree 12 100% 0 0% 12

Master degree 321 91% 30 9% 351

Bachelor degree 700 76% 218 24% 918

(Vocational) High school 45 40% 68 60% 113

Total 1078 77% 316 23% 1394

Newly recruited/ employment

Terminated Employees

New Employees

Under 30 184 79% 48 21% 232

31~50 99 81% 23 19% 122

51~ 1 100% 0 0 1

Terminated Employees

Under 30 97 75% 32 25% 129

31~50 81 80% 20 20% 101

51~ 0 0 0 0 0

Parental Leave

No. of people who enjoyed parental leave with pay, 2014 48 76% 15 24% 63

No. of people who applied for parental leave, 2014 2 25% 6 75% 8

No. of people who applied for parental leave and returned to work, 2014 1 17% 5 83% 6

No. of people who applied for parental leave and returned to work for more than 12 months, 2014 1 33% 2 67% 3

The percentage of employees from Chroma ATE Inc. who have received higher education is 92%, including univers i t y Bachelor degrees (918 people), Masters degrees (351 people) and Doctorate degrees (12 people).

Chroma ATE's new employees in 2014

Female

Male

50


Dedicated to Learning and Growing in ProsperityWe design specialized courses for employees according to di f ferent posit ions and specialties. Employees are able to acquire professional knowledge and new knowledge in the industry. In 2014, there were 906 employees who took educational training programs with 6 training hours per person. Furthermore, we not only organized internal training programs but also unreservedly utilized external training so as to provide our employees with new ways of thinking outside the company. On-line Learning Platform

In order to provide the best leaning environment for our employees, we built a diversified learning platform. Apart from traditional learning programs, we also established an on-line learning platform and developed an on-line learning and knowledge

management system with satisfaction survey. We have assigned a specialist who is in charge of the planning and promotion of learning and training programs and personal development projects, such as I LEARNING and CKM.

5

3

1

4

2

Training programsfor new employees

Management training programs Technical training programs

R&D training programsMarketing training programs

Administration training programs

Self-efficienttraining

01

03

0504

02

Foreign language training

Lifestyle seminars

51


Performance Management and Development

We have established our‘Employee Performance Assessment Measures'to increase individual and corporate performance. In 2014 there were 1,131 employees who received performance assessments. Beginning in 2010 we started our comprehensive performance assessment system by setting performance goal of KPI. That is, setting up a personal goal according to company /department annual object, and assessing individual performance through evaluating achievement level at the end of the year. Moreover, for positions with fixed routines such as operators, technicians, assistants, etc., we evaluate individual performance through assessment of listed functions factors.

Main Category

Subcategory Subcategory IIMale Female Sum

total


Disabled employees hired

5 100% 0 0 5

Difference in Minimum wage

In accordance with gender equality, Chroma ATE Inc. implements equal remuneration for women and men.

Annual average education and training hours

Management Under 30 217

people5 hr

31 people

3hr

248 people

5hr

R&D 31~50339

people6hr

40 people

5hr

355 people

6hr

Marketing Over 51 69

people13hr

6 people11hr

75 people13hr

Technical Under 30 101

people6hr

9 people

4hr

75 people

6hr

Administration 31~507

people1hr

87 people

2hr

94 people

2hr

Total 51 733

people6hr

N173

people3hr

N906

people6hr

▼ ▲ I-Learning Education Training Platform▲ Period: 2014/1~2014/12

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▲Learning and Growing! We hold classes periodically to improve our employees' professional skills.

53


In accordance with the law, Chroma provides national labor insurance, national health insurance and group insurance. We offer full group insurance coverage to employees, which includes life insurance, personal injury insurance, major burn benefit insurance, medical insurance, hospital surgical insurance, cancer insurance, occupational injury insurance and advanced benefits for critical illnesses.

Pensions in Accordance with Law

˙For regular employees who are subject to the Labor Standard Law, Chroma will deposit the pension fund, which is 2% of their monthly salary, into the Bank of Taiwan account for the Pension Supervision and Administration Commission to manage.

˙For regular employees who are subject to the Labor Pension Act., 6% of their monthly salary is contributed to employee's pension account in Council of Labor Affairs. Employee may also voluntarily contribute up to 6% of his/her monthly wages per month into his/her pension account.

Bonus and WelfareIn addition to monthly salaries, there are year-end bonuses, profit-sharing bonuses, and festival bonuses for the three major holidays, as well as gift certificates for Labor Day and employees' birthdays.

Outstanding Leave Policy

Beside the requirements of Taiwan Labor Standards Act, our employees can also enjoy: sick leave with payment for 5 days and birthday day-off with payment.

Family Support Subsidies

We offer a variety of support packages to our employees, such as subsidies in event of marriage, childbirth, funerals, hospitalization and emergencies.

Travel Allowance

˙Subsidies for domestic and overseas travel Travel allowance will be given in cash according

to the seniority of employees who wish to travel independently. For those who do not go traveling (either domestically or overseas) will be given coupons.

˙One-day domestic trips We provide various domestic trips. The followings are the

trips that we have organized in 2014: two-day camping trip nearby mountains and rivers, one-day trip to Shennong leisure farm, one-day trip to Zhuo Ye Cottage, one-day trip to The Great Roots Forestry Spa Resort, one-day trip to Ma Kao Ecological Park and a one-day trip to Xiao Liuqiu.

Sponsorship of Club Activities

We encourage our employees to develop their own interests and cultivate their minds in their leisure time to achieve a

healthy balance between life and work. In order to build stronger bonds and improve relations between employees, we have drawn up our Regulations and Subsidies for Club Activities, so that employees can form clubs in accordance with the regulations. As of 2014, 11 clubs have been formed, including a basketball club, a baseball club, a badminton club, a table tennis club, an extreme sports club, a dancing club, a hiking club, a fishing club, a flower arranging club, a movie club and a photo club.

Comprehensive Group Insurance

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▲Basketball match to celebrate Chroma's 30th Anniversary and build stronger bonds between employees.

▲Having dinner party with our R&D alternative service▲Let's celebrate Christmas with the Chroma Horse.

55


In order to allow our employees access to new information while they are fully committed to their work, we organized 20 lectures and activities in 2014. That means that we held more than one per month on average and the annual number of participants reached 659. The topics of these lectures related to employees' physical and mental health. For example, we invited ta traditional Chinese medicine physician to teach us how to massage our eyes so that the employees who need to spend long working hours in front of the computers can learn new information about how to take care of their eyes. We also invited Taoyuan Life Line to demonstrate the theory and practice of releasing psychological pressure. Thus, our staff were able to obtain knowledge of how to ease tension in this high-pressured working environment. In addition, since we pay great attention to the issues regarding parent-child life and gender equality; we have organized customized courses for our female employees or employees who have children. We provided health education courses on breast feeding and parenting tips. We also held a ‘Cherish Yourself – Aroma Therapy for Attractive Woman' lecture designed exclusively for our female employees, giving them the sense of being treasured while being immersing in a fragrant environment.

Over Type Event/Lecture

2014. Jan. - Dec. Event Gift for pregnant woman

2014/1/23 Lecture Eye care (massage)

2014/2/13 Lecture Easy parenting! Happy children

2014/2/21 Lecture Acupressure

2014/4/9 Lecture HPV virus and cancer prevention

2014/4/21 Lecture Benefit of breast milk

2014/5/5 Event Body check - 4 cancer screening

2014/5/15 Lecture Vitality office- Deal with your work pressure

2014/5/19 Lecture Health Care, take good care of your LIVER

2014/5/27 Lecture Vitality office- Right attitude tward your work

2014/6/19 Lecture Healthy eating, for motherhood maternity employees

2014/7/1 Event ‘I Fit‧I Win’ group weight loss program

2014/7/7 Lecture Exercise prescription and injuries

2014/7/14 Event Group exercise

2014/8/7 Lecture Healthy Eating, less salt

2014/8/20 Lecture Tips for breastfeeding and parenting

2014/8/27 Lecture Fat loss with right food and exercise.

2014/8/28 Lecture Read nutrition information correctly, avoid fat trap!

2014/9/10 Lecture Give me tempo ready go, let’s exercise

2014/9/25 Event Love ladies, aromatic therapy.

2014/10/16 Lecture Occupational health care

▲ We organized various lectures and activities about health and safety in 2014, providing knoledge of health care.。

56


Date 2013 2014

Competition Mode IndividualGroup

Follow the trend, let's exercise together!

Participants 29 people 32 people

Total weight lost 49.4 kg 81.5 kg

Average weight lost per person 1.7 kg 2.47 kg

▲Results of health promotion.

Average weight lost per person in 2013: 1.7 kg

1.7kgAverage weight lost per person in 2014: 2.47 kg

2.47kg▲ Health promotion presentation in 2014. Let's build a healthy workplace together.

57


58


Healthy Workplace Recognized by Government

Chroma is committed to building a safe and healthy workplace for our employees and our hard work has been recognized by the government. The following are the awards and certificates of appreciation awarded to us by the government. ˙Badge of Accredited Health Workplace

certification, issued by the Health Promotion Administration, Ministry of Health and Welfare.

˙Certificates of Appreciation issued by the Department of Public Health, Taoyuan for participating in the‘Shake a Healthy Taoyuan'event.

˙Received a medal of ‘Annual Model Example for Workplace Employee Health Care' issued by Department of Public Health, Taoyuan.

59


Providing Free Cancer Screening

In order to coordinate with the policies of the Health Promotion Administration, Ministry of Health and Welfare, Chroma launched free screening tests for four types of cancers, namely breast cancer, cervical cancer, oral cancer and colon cancer. By promoting cancer prevention and providing regular cancer screening, we anticipate achieving the goal of ‘Early Detection & Early Treatment'.

Plant Visits by Our On-site Doctors

We arrange on-site doctors to examine and evaluate potential occupational risk and dangers on the production line. Our doctors give us advice including whether the posture of our employees confirms with ergonomics, the appropriateness of ambient temperature and humidity or whether there are machines that endanger the safeness of operating.

60


Establishing a Health Management System

We built a Health Management System in 2012 which aims to use comprehensive system of health management functions and keeps track of our employees' treatment record and physical check-up data. This allows us to conduct disease and risk assessment through the collected data and draw up health promotion policies accordingly. For more information about our ‘Health Management System', please refer to the Employee Care section of the report. Employee Health Care

˙Building a comfortable, well-equipped breastfeeding room for our female employees.

˙We have established a professional infirmary at our headquarters which provides rich medical resources and values the privacy of our employees.

˙Al l new employees rece ive hea l th examinations. Chroma offers regular health examinations for employees to keep track of the employees with adverse outcomes of grade.

˙We provide at least 8 on-site medical services per month carr ied out by

doctors from the Division of Family Medicine of Chang Gung Medical Foundation, to give our employees professional medical assessments and consultation.

˙We hold a variety of diversified health promotion activities to encourage our employees to enjoy a healthy ‘light' life.

Digital Health Management Database – Taking Care of Employees' Health from ‘the Cloud'

We have established an employee health management cloud database. This not only overcomes the no-follow-up shortcoming of traditional physical check-ups, but also provides long-term tracking of employees' health conditions through the accumulated medical record and realizes the health management principle of ‘Prevention is better than cure.'. After we import and enter the data, we can analyze the data by group or individual and determine the relevant health problem. This system includes four major functions:

˙Function 1 - Group trends and analysis: The system analyzes statistics and lists the order of healthiness, so that we can get the big picture of the health trends of every group. After comparing the statistics of each group, we can have a look of the pros and cons of each group's health.

˙Function 2 – Individual analysis: includes physical check-up reports, detail information of physical check-ups, degree of special operation, audiogram and trend chart.

˙Function 3 – Medical records: includes injury description, basic description of accidents, description of medical treatment received and further treatment arranged.

˙Function 4 – Case Management: includes list of individual cases, case information and notes for case meetings.

▲Health Management System

61


Diverse Dining Facilities

Dining facilities are available at our Taoyuan headquarters and Kaohsiung branch. The cafeteria at our Taoyuan headquarters provides a variety of dining options in a comfortable environment, including buffet, noodles, healthy meals, vegetarian cuisine, fast food; as well as breakfast and dinner offered to our foreign employees. In order to give our employees nutritious, safe and hygienic meals, we have entrusted SGS Taiwan Limited to conduct periodic food sampling and introduce the HM Kitchen Scrutinizing System to perform periodic on-site environmental

check-ups every season and improvements to relevant problems. We are dedicated to providing health and safe food.

Easy Commuting

We offer our employees indoor and outdoor parking facilities for their cars and motorcycles. We provide free parking lots for motorcycles and low-cost parking lots for four-wheeled vehicles. Moreover, we have set up special parking spaces for pregnant females and disabled employees. The company also provides 5 Taipei-Taoyuan shuttle bus routes to meet our employees' commuting needs. This service not only solves employees' commuting problems, but also

improves their occupational safety while going to work and getting off from work. Moreover, it also makes a contribution to lower the carbon emissions that are caused by driving vehicles to work.

Comfortable and Safe Dormitory

We have built a dormitory which is for the exclusive use of our employees and offers foreign and nonlocal employees an outstanding living environment. The building encompasses 64 rooms in total. We have also organized floors which are specialized for female employees so that they can enjoy a safe and relaxing living space.

62


Luxurious Gym Center for A Better Workout Environment

In order to promote a healthy working environment, we have built a luxurious gym center which is equipped with a recreational center, weights room, multifunctional swimming pool, SPA, sauna, fitness center, dancing room and an area for entertainment and leisure. In addition, we organize periodic courses including boxing class, yoga class and a variety of competitions. Through the excellent equipment and outstanding courses, we hope to cultivate a culture of exercise at Chroma.

63


Superior Employee Activities

Chroma's Employee Welfare Committee (EWC) holds a variety of activities, such as planning employee travel programs and other activities. The most exceptional thing they carried out in the past year was organizing a series of activities to celebrate the 30th Anniversary of Chroma ETA INC. The EWC also came up with an excellent slogan‘Vibrant 30, Wonderful 100 and Energetic 1000!'. The act iv i t ies to ce lebrate our 30th Anniversary included: jackets and T-shirts for the 30th Anniversary, matches for basketball, badminton, table tennis and golf, photo competition and Family Day. Chroma's 30th Anniversary and Family Day

Vibrant 30, Wonderful 100 and Energetic 100!

In order to celebrate our 30th Anniversary, we rented Linkuo Stadium from National Taiwan Sport University to hold a series of celebration activities. All of our employees and their family members have participated this event.

▲ Our mascot for the 30th Anniversary – the ‘Chroma Horse'

▲Chroma's 30th Anniversary Video▼▼▼

https://www.youtube.com/watch%3Fv%3DuRfibiGhnEA

https://youtu.be/uRfibiGhnEA

64


▼We organized a full-day event to celebrate the 30th Anniversary of Chroma ETA Inc. on

November 8th, 2014. More than 2,500 people (employees and their family members) joined us to

celebrate this day. We held a variety of interesting activates to build stronger bonds between our

employees.

64

65

Social Participation and Charities

66


Exerting Empathy and Making Public ContributionWe use this enterprise social responsibility report to reveal that we are not only executing many sustainable development measures in the economic and environmental fields. What's of more importance is that we take the action in terms of social care, including providing the internship access, scholarships and donations for students. Through continuous benefaction we dedicate ourselves to society. Internship for Students

Chroma, as the leading manufacturer of measurement equipment, is an excellent enterprise which attracts lots of local students. For this reason, we take particular care of the nearby stakeholders, especially the schools. We have long maintained excellent interaction with Minghsin University of Science and Technology, for which we provide student internships. Minghsin University is just a 20 minute drive from our company, and doing this highlights the contribution we make to the community and that we take corporate social responsibility.

Moreover, we have picked schools as stakeholders in the community, which gives students a chance to experience the workplace and discuss technical and professional problems with our experienced staff. In this way, students could use the knowledge gained from textbooks in their internships. Scholarships

We provided scholarships to the Industrial Technology Graduate Program in Power Electronics of National Taiwan University of Science and Technology and National Chiao Tung University. The total amount of these scholarship is up to NT$1,000,000. At present, there are three scholarship winners serving in Chroma. Purchasing Merchandises f rom Non-prof i t OrganizationsChroma purchases presents to employees from disadvantaged groups. This not only provides employees with well-being but is also a concrete action to demonstrate a spirit of social concern to.˙In February, 2014, in the ‘Express Your Message

to Him/Her by Valentines Chocolate’ event, we purchased valentine chocolate from the New Taipei City Autism Association.

˙In February, 2014, in the ‘ 2014 Chroma Year-end Party’ event, we invited Disabled Performing Arts Group(混混混混混) for performance, which made our employees reflect on the meaning of life.

˙In October 2014, in the ‘30th Anniversary of Chroma – Family Day’ event, we invited the Taiko drum team

of Taoyuan City Da-Hu Elementary School to give a performance. We also provided NT$10,000 on scholarships, to support performance groups of the nearby community.

▼Certificate of Appreciation from Minghsin University of Science and Technology

▲We were honored to receive this award from the Ministry of the Interior for the R & D substitute service unit

67

Donation: Kaohsiung City Government 8/1 Explosion Relief

On July 31st, 2014, a petrochemical explosion occurred in Qianzhen Dist. and Lingya Dist. of Kaohsiung City. It caused the deaths of 32 people and 321 people were injured. We donated NT$3,000,000 to Kaohsiung City Government for reconstruction and we also helped the victims and their family to recover.

Donation: Taifong Ladies Open

We donated NT$1,200,000 to the 2014 Taifong Ladies Open held by TLPGA. Through the promotion of ladies golf we realized the ethos of golf. Donation: Taoyuan County Association of Friend of Policeman

We donated NT$1,000,000 to Taoyuan County's Association of Friends of the Police. As a NPO, it was organized as crime prevention, stimulating cooperation between the police and the public, security education and security maintaining. Chroma supported community security through this donation.

▲Donation to the construction of National Chiao Tung University's Yin Qi BioICT Building, to cultivate professional talent

Donation: Construction of National Chiao Tung University's Yin Qi BioICT Building

We donated NT$4,000,000 to National Chiao Tung University for the construction of the Yin Qi BioICT Building to help with the training of biomedical talent. National Chiao Tung University will build the Yin Qi BioICT Building on their Poh-Ai campus.

Donation Receiver

Sponsored Programs

Amount (NT$/Thousand)

National Chiao Tung University

Construction of Qixian Building

4,000

Kaohsiung City Government

8/1 Explosion Relief

3,000

TLPGA2014 Taifong Ladies Open

1,200

Taoyuan County Association of

Friends of the Police

Funding for NPO Operation

1,000


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Appendix

2014 CSR Report

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GRI G4 Index

Indicator Numbers

Indicator Description Disclosure Status Page(s) Explanatory Notes

General Standard Disclosures

Strategy and Analysis

G4-1*Provide a statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.

● 2

G4-2* Provide a description of key impacts, risks, and opportunities. ● 22

Organizational Profile

G4-3 Report the name of the organization. ● 5~10

G4-4 Report the primary brands, products, and services. ● 5~10

G4-5 Report the location of the organization’s headquarters. ● 5~10

G4-6Report the number of countries where the organization operates, and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.

● 5~10

G4-7 Report the nature of ownership and legal form. ● 5~10

G4-8 Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

● 5~10

G4-9* Report the scale of the organization. ● 5~10

REPORT THE TOTAL WORKFORCE CONTRACT AND GENDER ● 45

G4-11 Report the percentage of total employees covered by collective bargaining agreements.

● 44

● covered in the report ◒ partially covered in the report ◎ not covered in the report

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2014 CSR Report

GRI G4 Index

Indicator Numbers


G4-12 Describe the organization’s supply chain. ● 34

G4-13* Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.

● No significant change

G4-14 Report whether and how the precautionary approach or principle is addressed by the organization.

● 22

G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

● 34

G4-16* List memberships of associations (such as industry associations) and national or international advocacy organizations.

● 31

Identified Material Aspects and Boundaries

G4-17

List all entities included in the organization’s consolidated financial statements or equivalent documents. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.

● 1

G4-18Explain the process for defining the report content and the Aspect Boundaries. Explain how the organization has implemented the Reporting Principles for Defining Report Content.

● 11~19

G4-19 List all the material Aspects identified in the process for defining report content. ● 11~19

G4-20* For each material Aspect, report the Aspect Boundary within the organization. ● 11~19

G4-21* For each material Aspect, report the Aspect Boundary outside the organization. ● 11~19

G4-22Report the effect of any restatements of information provided in previous reports, and the reasons for suchrestatements.

● 11~19


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GRI G4 Index

Indicator Numbers


G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

● 11~19

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization. ● 15~18

G4-25 Report the basis for identification and selection of stakeholders with whom to engage. ● 15~18

G4-26Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

● 15~18

G4-27

Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

● 15~18

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided. ● 1 FY 2014

G4-29 Date of most recent previous report (if any). ● 1 Dec. 2013

G4-30 Reporting cycle (such as annual, biennial). ● 1 Annual

G4-31 Provide the contact point for questions regarding the report or its contents. ● 1

G4-32* Report the ‘in accordance’ option the organization has chosen. ● 1

G4-33* Report the organization’s policy and current practice with regard to seeking external assurance for the report.

● 1

Governance


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GRI G4 Index

Indicator Numbers


G4-34Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

● 28

Ethics and Integrity

G4-56 Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

● 29


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GRI G4 Index

Indicator Numbers


GRI G4 SPECIFIC STANDARD DISCLOSURES

CATEGORY: ECONOMIC

Aspect: Economic Performance

G4-EC1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED ● 20~26

G4-EC2 FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATION’S ACTIVITIES DUE TO CLIMATE CHANGE

● 20~26

G4-EC3 COVERAGE OF THE ORGANIZATION’S DEFINED BENEFIT PLAN OBLIGATIONS ● 51~62 Comprehensive remuneration system and welfare plan

Aspect: Indirect Economic Impacts

G4-EC7 DEVELOPMENT AND IMPACT OF INFRASTRUCTURE INVESTMENTS AND SERVICES SUPPORTED

● 20~26

G4-EC8 SIGNIFICANT INDIRECT ECONOMIC IMPACTS, INCLUDING THE EXTENT OF IMPACTS ● 20~26

CATEGORY: ENVIRONMENTAL

Aspect: Energy

G4-EN3 ENERGY CONSUMPTION WITHIN THE ORGANIZATION ● 37

G4-EN6 REDUCTION OF ENERGY CONSUMPTION ● 36

G4-EN7 REDUCTIONS IN ENERGY REQUIREMENTS OF PRODUCTS AND SERVICES ● 36


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GRI G4 Index

Indicator Numbers


Aspect: Emissions

G4-EN16 ENERGY INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2) ◒ 37

G4-EN19 REDUCTION OF GREENHOUSE GAS (GHG) EMISSIONS ● 36,39

Aspect: Effluents and Waste

G4-EN23 TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL METHOD ● 38

Aspect: Products and Services

G4-EN27 EXTENT OF IMPACT MITIGATION OF ENVIRONMENTAL IMPACTS OF PRODUCTS AND SERVICES

● 36

Aspect: Supplier Environmental Assessment

G4-EN32 PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING ENVIRONMENTAL CRITERIA

◒ 31

G4-EN33 SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE ENVIRONMENTAL IMPACTS IN THE SUPPLY CHAIN AND ACTIONS TAKEN

◒ 31

CATEGORY: SOCIAL

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK

Aspect: Employment

G4-LA1 TOTAL NUMBER AND RATES OF NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER BY AGE GROUP, GENDER AND REGION

● 45~47

G4-LA2BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES, BY SIGNIFICANT LOCATIONS OF OPERATION

● 45~47


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GRI G4 Index

Indicator Numbers


G4-LA3 RETURN TO WORK AND RETENTION RATES AFTER PARENTAL LEAVE, BY GENDER ● 45~47


2014 CSR Report

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GRI G4 Index

Indicator Numbers


Aspect: Occupational Health and Safety

G4-LA5PERCENTAGE OF TOTAL WORKFORCE REPRESENTED IN FORMAL JOINT MANAGEMENT–WORKER HEALTH AND SAFETY COMMITTEES THAT HELP MONITOR AND ADVISE ON OCCUPATIONAL HEALTH AND SAFETY PROGRAMS

● 41

G4-LA6TYPE OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND ABSENTEEISM, AND TOTAL NUMBER OF WORK-RELATED FATALITIES, BY REGION AND BY GENDER

● 41

Aspect: Training and Education

G4-LA9 AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE BY GENDER, AND BY EMPLOYEE CATEGORY

● 48~49

G4-LA10PROGRAMS FOR SKILLS MANAGEMENT AND LIFELONG LEARNING THAT SUPPORT THE CONTINUED EMPLOYABILITY OF EMPLOYEES AND ASSIST THEM IN MANAGING CAREER ENDINGS

● 48~49

G4-LA11 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS, BY GENDER AND BY EMPLOYEE CATEGORY

● 48~49

Aspect: Diversity and Equal Opportunity

G4-LA12COMPOSITION OF GOVERNANCE BODIES AND BREAKDOWN OF EMPLOYEES PER EMPLOYEE CATEGORY ACCORDING TO GENDER, AGE GROUP, MINORITY GROUP MEMBERSHIP, AND OTHER INDICATORS OF DIVERSITY

● 45~46

Aspect: Equal Remuneration for Women and Men

G4-LA13 RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN BY EMPLOYEE CATEGORY, BY SIGNIFICANT LOCATIONS OF OPERATION

● 45~46


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GRI G4 Index

Indicator Numbers


SUB-CATEGORY: SOCIETY

Aspect: Anti-corruption

G4-SO1 PERCENTAGE OF OPERATIONS WITH IMPLEMENTED LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS, AND DEVELOPMENT PROGRAMS

● 64~65

Aspect: Supplier Assessment for Impacts on Society

G4-SO9 PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING CRITERIA FOR IMPACTS ON SOCIETY

● 31

G4-SO10 SIGNIFICANT ACTUAL AND POTENTIAL NEGATIVE IMPACTS ON SOCIETY IN THE SUPPLY CHAIN AND ACTIONS TAKEN

● 31

SUB-CATEGORY: PRODUCT RESPONSIBILITY

Aspect: Customer Health and Safety

G4-PR3

TYPE OF PRODUCT AND SERVICE INFORMATION REQUIRED BY THE ORGANIZATION’S PROCEDURES FOR PRODUCT AND SERVICE INFORMATION AND LABELING, AND PERCENTAGE OF SIGNIFICANT PRODUCT AND SERVICE CATEGORIES SUBJECT TO SUCH INFORMATION REQUIREMENTS

● 35

G4-PR5 RESULTS OF SURVEYS MEASURING CUSTOMER SATISFACTION ● 30


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2014 CSR Report

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