Performance Evaluations of the Board and Functional Committees

Board and Functional Committees Performance Evaluation

type	evaluation periods	evaluation cycles	evaluation scope	method of evaluation	evaluation content
External	2022.01.01 - 2022.12.31	every three years	Board of Directors	An independent professional external team, taking into account each company’s stage of development, conducts a desk review of the Board of Directors’ operations and engages in on-site interviews and interactions with board members. The team assists the company in periodically examining the effectiveness of the Board’s functions and jointly identifying opportunities for enhancement that best reflect the company’s culture and distinctive characteristics while aligning with the company’s phased development objectives.	Board Composition and Division of Responsibilities Board Guidance and Oversight Delegation of Authority and Risk Management Board Communication and Collaboration Board Self-Discipline and Continuous Improvement
Internal	2025.01.01 - 2025.12.31	Once a year	Board of Directors	Board of Directors	Participation in the Company’s operations Improvement of the Board’s decision-making quality Composition and structure of the Board of Directors Election and continuing education of directors Internal control, supervision by the Board of Directors, and risk management The Company’s sustainable operation
	2025.01.01 - 2025.12.31	Once a year	Individual Board members	Mutual Evaluation by Directors	Alignment of the Company’s goals and missions Awareness toward Directors’ Duties and Fulfillment Participation in the Company’s operations Internal relationship management and communication Directors’ professionalism, self-discipline and continuing education Internal control
	2025.01.01 - 2025.12.31	Once a year	Audit Committee	Self-evaluation by independent directors	Participation in the Company’s operations Awareness toward functional committees’ duties Improvement of functional committees’ decision-making quality Composition of the functional committee, and election and continuing education of members Internal control
	2025.01.01 - 2025.12.31	Once a year	Remuneration Committee	Self-evaluation by members	Participation in the Company’s operations Awareness toward functional committees’ duties Improvement of functional committees’ decision-making quality Composition of the functional committee, and election and continuing education of members
	2025.01.01 - 2025.12.31	Once a year	Corporate Governance & Nominating Committee	Self-evaluation by members	Participation in the Company’s operations Awareness toward functional committees’ duties Improvement of functional committees’ decision-making quality Composition of the functional committee, and election and continuing education of members
	2025.01.01 - 2025.12.31	Once a year	Sustainability & ERM Committee	Self-evaluation by members	Participation in the Company’s operations Awareness toward functional committees’ duties Improvement of functional committees’ decision-making quality Composition of the functional committee, and election and continuing education of members

Results of the Performance Evaluation of the Board of Directors and Functional Committees

Self-evaluation

4.99

Board Performance Self-Evaluation (Maximum Score: 5)

4.99

Individual Director Performance Self-Evaluation (Maximum Score: 5)

100%

Committee Members’ Satisfaction by Evaluation Item

The Company has completed the Board’s 2024 performance self-evaluation, and the results were reported to the Board on February 21, 2025, to serve as the basis for review and improvement.

The overall average score for both the Board performance self-evaluation and the individual directors’ performance self-evaluation was 4.99 out of 5, indicating effective Board operations. The self-evaluation results of the Audit Committee, Compensation Committee, Corporate Sustainability and Risk Management Committee, and Corporate Governance and Nomination Committee showed 100% member satisfaction across all evaluation items.

The 2025 Board performance self-evaluation is scheduled to be completed by the end of January 2026 and reported to the Board in March 2026.

External evaluation

The Rules for Performance Evaluation of the Board of Directors and Functional Committees were approved and adopted by the Board on August 12, 2021; and in 2025, the Company engaged an independent professional external institution, the Corporate Governance Association, to conduct the external performance evaluation of the Company’s second-term Board of Directors.

evaluation periods	2024.07.01 - 2025.06.30
On-site Evaluation Date	2025.08.07
Name of the external professional institution conducting the evaluation	Taiwan Corporate Governance Association
Reasons for the independence of the external institution	The Taiwan Corporate Governance Association is not a related party of the Company, nor does it have a commercial relationship that affects independence. None of the participants and their relatives within the second degree of kinship has a direct or indirect financial interest relationship with or accepts gifts from the Company.
Evaluation methods (such as questionnaires or onsite visits)	An independent professional external team, taking into account each company’s stage of development, conducts a desk review of the Board of Directors’ operations and engages in on-site interviews and interactions with board members. The team assists the company in periodically examining the effectiveness of the Board’s functions and jointly identifying opportunities for enhancement that best reflect the company’s culture and distinctive characteristics while aligning with the company’s phased development objectives.
Criteria (content and items)	Board Composition and Division of Responsibilities Board Guidance and Oversight Delegation of Authority and Risk Management Board Communication and Collaboration Board Self-Discipline and Continuous Improvement
Estimated Date to Report Evaluation Results to the Board	2026.03.06

Recommendation	Improvement plan
Recommend establishing a channel for independent directors (or the Audit Committee) to concurrently receive material whistleblowing reports, to further strengthen the whistleblower mechanism.	Plan for the Chief Audit Executive to report regularly to the independent directors
Establish the New Director Orientation and Training Program	Plan to formulate the Guidelines for the New Director Induction Training Program to further enhance the completeness of the Company’s corporate governance framework.

Board and Functional Committees Performance Evaluation

Results of the Performance Evaluation of the Board of Directors and Functional Committees

Self-evaluation

External evaluation

Recommendations and improvement plans are as below:

Recommendation

Improvement plan