Letter From Chairman

Words from the Chairman

Looking back at 2019, although the trade war had negatively affected the general environment, Nuvoton Technology’s main fields are personal computers, servers, and game consoles where the impact was relatively limited. Instead, the adjusted supply chain driven by the general environment actually generated new market opportunities for our company. In this environment full of challenges and opportunities, Nuvoton continues to develop new applications, launching new technologies, products, and services, while also optimizing the combination of products and customers to showcase the company's solid business power. The development of architectures such as artificial intelligence, 5G networks, and the Internet of Things (IoT) serves to promote the realization of related application products in the fields of smart cities, smart home appliances, smart healthcare, and smart cars. The demand for related technologies will inevitably drive the vigorous development of the technology industry, thereby thrusting the semiconductor industry to the next peak. In the face of future trends, Nuvoton will seize the opportunity to create a strategic competitive position that is conducive to the company's growth by expanding its semiconductor business scale, expanding global sales channels, enriching human capital, and acquiring stronger research and development capabilities. In the future, Nuvoton will continue to strengthen its own capabilities with active innovation and sustainable operations, expanding its influence in the global semiconductor industry to create maximum value for shareholders, customers, and employees.
Nuvoton continues to promote the corporate culture of “sustainable contribution”, deepening various policies for sustainable development in three major aspects: economic, environmental, and social. We actively focus on and invest in "corporate governance", "customer service and supplier management", "environment-friendly", "best workplace" and "philanthropy" and other topics to build influence from out company.

Corporate Governance

We value corporate governance, sustaining the principle of “integrity management” in establishing a robust corporate governance framework, while also continuing to strengthen management functions. In addition, through a robust internal control mechanism, we supervise the internal company operations to ensure financial information transparency while instantly revealing important information to decrease the risks related to corporate management. In terms of overall financial performance, Nuvoton’s 2019 consolidated revenue amounted to NTD 10.367 billion, up 3.26% from 2018; net income after taxes amounted to NTD 558 million, down 21.41% from 2018, the main reason of which is due to the increased research and development expenses. Earnings per share (EPS) amounted to NTD 2.53. In the forth corporate governance evaluation in 2017, Nuvoton ranked in the top 20% in all publically traded companies, affirming our efforts in corporate governance.

Customer Service and Supplier Management

Nuvoton regards customers and suppliers as important partners and is committed to providing excellent quality to enhance the competitiveness of its customer products. We also implement a series of quality control mechanisms and customer satisfaction surveys to ensure the quality and reliability of our products. The 2019 customer satisfaction survey shows average satisfaction at above 4 points, and 60% of indicators exceeded that of 2018.

Environment-Friendly

Complying with environmental laws, regulations, and international standards, Nuvoton is committed to becoming a green enterprise with sustainable development. We are committed to continuous improvement and we strive to reduce the impact of production on the environment and eliminate any foreseeable environmental pollution risks through source reduction and company-wide participation to protect the natural environment. In our production operations and activities, we will continue striving to achieve a level of development that balances economic, social, and ecological factors. We implemented a total of 3 energy conservation measures in 2019. By using the before and after difference and multiplying it to the estimated running hours, an estimated 450,000 kWh were saved in electricity consumption, demonstrating our commitment to corporate social responsibility. We are also committed to protecting the natural environment. In 2019, the inventory results for greenhouse gas emissions was 69,997 tons, while greenhouse gas emissions per unit of product was 0.780 kilograms carbon dioxide equivalent/square centimeters - wafer mask, a decrease of 9.0% from 2018 and a decrease of 37This demonstrates that we are committed to pursuing the balanced development of economic, social, and ecological factors in our business activities..9% from the base year 2009.

Best Workplace

Employees are the cornerstone of corporate development, and Nuvoton places great importance on talent recruitment. With a comprehensive management system, competitive salary and benefits, as well as an excellent working environment, we attract new talent to join Nuvoton. Through diversified education and training, employees can continue to improve with the company with corporate sustainable development. In 2019, employees at Nuvoton received a total of 13,624 hours of training, with a total number of 11,706 attendees. The average training hours are 9.72 hours. In order to create a "work happily, live seriously" LOHAS workplace culture, we promote friendly workplace events, such as celebrity lectures, sports days, social clubs, and company trips to enhance the physical and mental health and workplace happiness of our employees.

Philanthropy

In 2019, we have continued various public welfare projects, calling up our employees to participate in beach cleaning events for environment protection, as well as continuing to help the disadvantaged groups in society by organizing year-end donation events and used goods donations. The funds raised are mainly used to help Hsinchu City Renai Home, poor students from the Municipal Yuandongguomin Junior High School, disabled patients in Shih Guang Educational and Nursing Institution, etc.
Looking to the incoming future of emerging technology, such as artificial intelligence, big data, Internet of Things (IoT), and cloud computing, Nuvoton continues to improve its research and development energy while developing various product applications and services. We actively participate in the events of industrial unions and technology alliances to obtain the latest technology in the industry. We believe that we will be able to open up more business opportunities in the future and create long-term stable returns for shareholders, customers, and employees. We also aim to be the best indispensable partner to our customers. Combining our core capabilities and sustainable development strategies, we continuously improve our operational performance in the aspects of corporate governance, environmental protection, and social participation to honor our commitment to corporate sustainability.

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