Investor Relations

Governance

Board of Directors

Board Performance Evaluation

Implementation and results of 2022 self-assessment for board performance review

In order to implement corporate governance, enhance the board functions and set the performance targets to strengthen the operational efficiency of the board, the "Self-Evaluation or Peer Evaluation of the Board of Directors" was established pursuant to the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and approved by the board of directors on December 18, 2020.

1. Evaluation frequency and period

The board shall conduct internal performance reviews annually in accordance with the evaluation procedures and indicators set out in the rules.

The performance evaluation of the board may be conducted by an external independent agency or a team of external experts and scholars when necessary.

The performance evaluation results shall be completed by the end of the first quarter of the following year.

2. Evaluation scope and method

Evaluation scope: the board as a whole, individual board members and functional committees.

Evaluation method: internal self-assessment of the board, self-assessment of board members, and internal self-assessment of the functional committees.

3. Evaluation process

The evaluation is conducted internally in the form of questionnaires, including the "self-assessment questionnaire for board performance", "self-assessment questionnaire for board member performance", and "self-assessment questionnaire for functional committee performance".

4. Self-assessment indicator and grade

(1) Self-assessment for board performance review

Aspect	No. of Indicators	Weight	Score	Converted into Points
A. Level of participation in the Company's operation	12	26.70%	4.75	25.37
B. Enhancement on the quality of board decisions	12	26.70%	5.00	26.70
C. Board composition and structure	7	15.60%	5.00	15.60
D. Election and continuing education of directors	7	15.60%	5.00	15.60
E. Internal control	7	15.60%	5.00	15.60
Evaluation result	45	100.00%	4.94	98.87

Evaluation result: The evaluation covered 45 indicators in five aspects. The overall score was 4.94/5, or 98.87/100 when converted into points, indicating an excellent operation and receiving positive reviews.

(2) Self-assessment for board member performance review

Aspect	No. of Indicators	Weight	Score	Converted into Points
A. Understanding of the Company's goals and missions	3	13.64%	4.67	12.73
B. Understanding of director's duties	3	13.64%	4.76	12.99
C. Level of participation in the Company's operation	7	31.82%	4.76	30.26
D. Internal relationship management and communication	3	13.64%	4.81	13.11
E. Professionalism and continuing education of directors	3	13.64%	4.81	13.11
F. Internal control	3	13.64%	4.90	13.38
Evaluation result	22	100.00%	4.78	95.58

Evaluation result: The evaluation covered 22 indicators in six aspects. The overall score was 4.78/5, or 95.58/100 when converted into points, indicating an excellent operation and receiving positive reviews.

(3) Self-assessment for functional committee performance review

Aspect	No. of Indicators	Weight	Score	Converted into Points
A. Level of participation in the Company's operation	4	16.66%	5.00	16.66
B. Understanding of the functional committee's duties	7	29.17%	5.00	29.17
C. Enhancement on the quality of functional committee's decisions	7	29.17%	5.00	29.17
D. Composition of the functional committee and election of members	3	12.50%	5.00	12.50
E. Internal control	3	12.50%	5.00	12.50
Evaluation result	24	100.00%	4.78	100.00

Evaluation result: The evaluation covered 24 indicators in five aspects. The overall score was 5/5, or 100/100 when converted into points, indicating an excellent operation and receiving positive reviews.

(4) Conclusion

In 2022, the score in every aspect was 4.7 or above. The board, individual board members and functional committees scored 4.94, 4.78 and 5.00 for the performance review, respectively. The results of self-assessments were between 4 (agree) and 5 (strongly agree), indicating excellent operations of the board and functional committees, which conformed to the corporate governance standards and effectively enhanced board functions and protected shareholders' rights and interests.

5. Improvement plan

Results of the 2022 board performance evaluation were reported to the board of directors on March 16, 2023. Improvement plans for areas with low self-assessment scores are set out below:

Item	Indicator with Low Self-assessment Score	Improvement Measure
1	Attendance of directors at the shareholders' meeting	As a result of Covid-19, the attendance rate at the 2022 shareholders' meeting was 55%. The Company will invite its directors to attend the shareholders' meetings in the future and the attendance rate is expected to increase in 2023.