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Message from the Chairman

In 2020, due to the global outbreak of COVID-19, the volatile international political and economic situation, and the ups and downs of the financial markets, the Company adopted a sound and prudent management principle and adjusted its execution direction in response to external changes in a timely manner. In spite of the impact of the pandemic, the Company's profit grew by 18% against the trend, with an after-tax profit of NT$24.105 billion, EPS of NT$1.99, and ROE of 9.93%, a new record high.

In the face of the COVID-19 pandemic, the Group has adopted the three main principles of “advance deployment", “strict control", and “minimizing impact" as it prioritized the health and rights of all employees and customers and took the initiative to care for customers and implement relief actions. The Company has spared no effort in promoting corporate social responsibility. In order to support disadvantaged groups in fighting the pandemic, in 2020, the Company and its subsidiaries, together with the Taiwan Fund for Children and Families, planned the “Yuanta Supports Happiness" project and issued the “Economy Revitalization Love Card", with a total amount of $100,002,000, which was donated to seven social welfare organizations, helping more than 30,000 disadvantaged families and nearly 50,000 children, benefiting more than 100,000 people, and helping the disadvantaged through the difficult times.

In May 2021, the COVID-19 pandemic in the country became increasingly serious, resulting in a strain on medical resources and a severe physical and mental strain on healthcare workers. As a nationwide financial institution, the Company and its subsidiaries donated NT$160 million to the first-line healthcare for the emergency purchase of medical equipment, such as negative pressure isolation chambers, and for the care of first-line healthcare workers. One island, one life, one heart. We are doing our part in the battle against COVID-19. Employees are the most important assets of a company. In line with the government's policy of “uninterrupted financial services," the Yuanta Group's front-line employees at each of its subsidiaries remain at their posts. In order to ensure that employees and customers are properly protected, we have reduced the manpower of our sales offices to a minimum, installed transparent partitions at our sales counters, and provided transparent masks and protective clothing to our front-line employees. We also give front-line employees an epidemic prevention allowance of NT$10,000 per person. We would like to thank our employees for supporting the Company and continuing to protect our customers during the long fight against the pandemic.

In 2020, the Company achieved outstanding results in the areas of E (environmental sustainability), S (social engagement) and G (corporate governance) in sustainable management. In addition, it received high recognition from many domestic and international professional organizations, including being listed in both the Dow Jones Sustainability Index (DJSI) World Index and the Emerging Markets Index for two consecutive years, receiving an A rating from MSCI for ESG, and being listed in the Bloomberg Gender Equality Index (GEI), being named to the FTSE4Good Emerging Indexes for four consecutive years, being awarded the “ESG Corporate Awards- Platinum" by The Asset Magazine, being awarded the CSR Corporate Citizenship Award by CommonWealth Magazine, and receiving the Financial Holdings CSR Award by Wealth Magazine.

In terms of corporate governance, Yuanta follows the Corporate Governance 3.0 Sustainable Development Roadmap and continues to strengthen its board of directors' functions and diversity policies. The Company's board of directors has an average attendance rate of 99% and attaches importance to information security issues as evidenced by its establishment of an Information Security Department and a Chief Information Security Officer. We are aware of the business issues brought about by climate change, conduct climate risk identification, identify the risks and opportunities of climate change, and propose countermeasures. For this reason, the Company was awarded the “CG6012(2019) Corporate Governance Framework Assessment Certificate with High Distinction" by the Taiwan Corporate Governance Association.

We have been awarded a “Leadership level score of A" in the CDP Carbon Disclosure Project, the best result in the domestic financial industry, and “Best Environmental Stewardship in Taiwan" by FinanceAsia Magazine. The Group has implemented systematic management of environmental and energy-related ISOs, and has actively responded to the government's renewable energy policy by purchasing green electricity for 5 consecutive years, totaling 2.51 million kWh, effectively reducing the impact of its operations on the environment. In addition, we work together with suppliers to emphasize ESG, not only to promote sustainable procurement, but also to hold regular supplier meetings every year to promote the concept and support green procurement. For 10 consecutive years, we have been awarded the “Benchmark Enterprise in Green Procurement" by the Taipei City Government. For 9 consecutive years, we have been recognized by the Environmental Protection Administration of the Executive Yuan for our outstanding performance in green procurement.

In terms of social engagement, the Company is committed to the prosperity of the enterprise, employees, and society, providing a friendly and excellent workplace environment for employees, adopting the ISO 45001 occupational safety and health management system, and emphasizing talent development programs, offering more than 3,000 professional certification and life-related courses. In addition, the Group is committed to promoting community integration. The Group has organized over 600 public welfare activities and devoted more than 9,000 volunteer hours, benefi-ting more than 710,000 participants throughout Taiwan. Yuanta is committed to protecting the rights and interests of our customers. Yuanta Financial Holdings and its five subsidiaries have all passed ISO 27001 certification to strengthen information security and effectively control customer information security risks. The overall customer satisfaction rate of the five subsidiaries has reached 98% and through the establishment of a fair treatment authority, the implementation of fair treatment is monitored by the board of directors.

The Bank's subsidiaries are actively promoting sustainable finance by performing their core -financial functions. Yuanta Bank has joined the Equator Principles Association and signed the “Equator Principles". In the future, Yuanta Bank will review credit cases according to the highest international standards and work together with customers towards sustainable management. Yuanta Securities launched the Account Opening App, which won the “The National Brand Yushan Awards" in the category of “Best Product", and also provides regular fixed amount stock purchase service to help the small investors manage their finances easily and without burden. Yuanta Funds' “Yuanta Taiwan High Dividend Quality Leader Fund" was awarded the highest rating (5 Earths) by Morningstar Sustainability Rating, providing customers with the option to invest in a sustainable future.

Yuanta has long held the service spirit of “fulfilling your biggest dreams". It has adopted the English word “DREAM" to represent the goal of sustainable development and has embarked on sustainable actions in five major areas: corporate governance, customer rights, employee care, environmental sustainability, and social welfare. In 2016, the Company launched the “Group Sustainable Development Strategy Blueprint". In the second five-year plan, launched in 2021, we will integrate ESG concepts into our operational strategy, carry out Yuanta's sustainability DNA, continue to pursue the Company's maximum value, take responsibility as a corporate citizen, work together with stakeholders for the good of the Company, and exert positive influence to strive for sustainable corporate development.

Chairman Tony Shen
Yuanta Financial Holdings