Fast spreading COVID-19 and increasingly severe effects of climate change in 2021 drove TCFHC to advance faster in cross-industry integration of financial services and technologies. TCFHC actively deployed innovative thinking to counter risks and take opportunities in order to make the company more resilient and achieve sustainability. Internally, we focused on fintech innovations, and continued to host the annual "Innovation Brainstorming Camp" to invite proposals. The CoLAB was created to organize workshops and courses to encourage CoLABers to think outside the box. Furthermore, given the rapid development of digital applications, trends in information security will demand closer attention. TCFHC has appointed a chief information security officer to take a top-down approach to strengthening information security and protection in the group. Externally, we provided preferred rate financing and supported the government's policy by providing assistance for relief and stimulus, supporting industry transition and returning overseas Taiwanese business owners. Hence, TCFHC managed to achieve excellent profits in spite of the pandemic. The consolidated net profit after tax in 2021 was NT$21.212 billion or a YOY growth of 23.79%. The amount exceeded the NT$20 billion threshold for the first time and reached a historic high. The EPS was NT$1.51, the ROE 8.83%, and the ROA 0.49%.

TCFHC understands resilience and sustainability are two sides of the same coin. A resilient company will develop its environmental, social and governance (ESG) practices, and turn them into a foundation for sustainability. In anticipation of future challenges, with strong support of the Board of Directors, TCFHC created the first sustainability office among state-owned financial holding companies in 2021. The sustainability office is responsible for designing the sustainable strategy and blueprint for the group. Furthermore, in response to climate change related challenges, the sustainable finance task force was created to handle sustainable finance products, responsible finance and climate strategies. It is one of the six task forces, along with the corporate governance, customer commitment, employee care, environmental sustainability, and social inclusion task forces. These task forces devise the short-mid-and-long-term goals of sustainability aimed to reach the UN Sustainable Development Goals (SDGs).

To expand more quickly in sustainable finance, TCFHC voluntarily complies with the Principles of Responsible Banking and Responsible Investing, and includes ESG in the decision making process for investing and financing. In addition, TCFHC seeks to align itself with sustainability trends and supports international initiatives. We signed to support the Task Force on Climate-related Financial Disclosures (TCFD) in 2020, and identified the risks and opportunities in climate change. The Board of Directors passed the Sustainability Policy and the Sustainable Financial Policy in 2021 to provide the principles and directions of sustainability. In addition, we signed the Equator Principles in March 2022 and became the first financial holding company in Taiwan to do so. We extend the scope of applicability of the Equator Principles to all of our subsidiaries so that they can implement the principles in their loan evaluation process and deploy their capital influence to protect the environment and care for the community.

Meanwhile, we provide strong support for investments in which the government or industry tries to raise funds for social or environmental benefits. A green bond and a sustainability bond were issued in 2019 and May 2021, respectively. The funds were used to invest in green and social efficiency projects. We were also the first state-owned bank in Taiwan to issue a social responsibility debenture in October 2021 to help first-time homebuyers without a residential property to purchase homes. Meanwhile, in support of net zero, a total of NT$60.9 billion had been raised in green financing for renewable energies, green technologies, and offshore wind power as of the end of December 2021.

TCFHC understands that digital innovation plays a crucial role on the path to sustainability. In 2017, we started hiring a large number of students and young people with backgrounds in IT, business process management, and fintech in order to bring fresh ideas into the organization.

In addition to hiring talents from various backgrounds, we continued to convert data into fuel for business growth. Taiwan Cooperative Bank has implemented 18 robotic process automation (RPA) lines since 2020. The lines completed more than 100 data analysis cases and improved sales performance, such as increasing the amount of mortgage add-ons by 30% and raising the promotion success rate of wealth management products. In 2021, an in-house customer insight platform was created to combine customer information and external data from more than 30 public data sources in order to enable instant access to market information and provide faster and friendlier digital services.

Furthermore, we have been hosting "Innovation Brainstorming Camp" to encourage innovative thinking since 2018. In 2019, we created the CoLAB, which works on inspiring innovative thinking in fintech through close interdepartmental collaboration. We work tirelessly to find ways to transform our service and to increase the volume of patent applications and application scenarios. We currently have 63 patent applications for implementation. All the hard work for innovation has placed Taiwan Cooperative Bank among the Top 100 domestic institutional patent applicants for 4 years in a row. Taiwan Cooperative Bank delivered an impressive performance when it rose to the 18th place in 2021. Meanwhile, Taiwan Cooperative Bank is also the first state-owned bank to pass Class A onsite review under the Taiwan Intellectual Property Management System (TIPS). Taiwan Cooperative Bank was also the first state-owned bank in Taiwan to pass TIPS Class A certification in 2021. The successes demonstrated our attention and commitment to intellectual property management.

As the ultimate decision making unit at TCFHC, the Board of Directors reviews fair customer treatment regularly, strengthens the knowledge and skills of employees through training, and organizes executive seminars for directors, supervisors, and executive officers. Making the ideas of fair customer treatment and consumer protection an integral part of the corporate culture and routine operations.

Taiwan Cooperative Bank, Taiwan Cooperative Securities, and BNP TCB Life perform customer satisfaction evaluations every year, and handle customer complaints according to the Customer Complaint Resolution Guidelines. Customer satisfaction was 90% or higher for all 3 subsidiaries in 2021. Taiwan Cooperative Bank and Taiwan Cooperative Securities both ranked in the top 20 percentile in the FSC Treating Customers Fairly Principles Assessment Program. TCFHC was the only financial holding company which has 2 subsidiaries on the list.

Talent is the most important asset of an enterprise. TCFHC provides a well-established remuneration system for developing and retaining talent. In addition to making employee pay raises in 2018 and 2019 and launching the employee stock ownership trust in 2020, TCFHC made a 4% raise since January 2022, which, when combined with the annual performance-based pay increase, made for an average pay raise of 6.6% or higher. Meanwhile, TCFHC provided paid parental care leave, MRA and LDCT health check subsidies for employees with higher risk as well as a range of benefits better than the regulatory requirements or industry average. In 2021, TCFHC took the initiative to purchase COVID-19 vaccination insurance for employees in Taiwan in 2021. TCFHC also implemented quarantine care leave, vaccination leave, and vaccination and screening test subsidies.

TCFHC also extends the scope of employee care to include their families. In 2021, TCFHC started organizing dating events for single employees which the company would play the matchmaker. In addition, the maternity benefit was raised to NT$100,000 ~ NT$150,000 from NT$60,000 ~ NT$100,000 for the first child to third child in order to encourage employees to have children.

TCFHC invests sufficient funds to sponsor badminton, table tennis, and baseball teams to support sports in the country. The company also promotes sports to encourage the population to live a healthier lifestyle. Tai Tzu-ying, 2021 Olympic women's singles badminton silver medalist, and Lin Yun-Ju and Cheng I-ching, mixed doubles table tennis bronze medalists, are all outstanding athletes that TCFHC has helped to cultivate over the years.

Furthermore, in response to an aging population, TCFHC combines mortgage life insurance products and charity donations to provide Respite Coffee for home caregivers. The Guardian Alliance has been created to help the population become better carers. Following the first-of-its-kind "Seed Staff of Long-term Care" program in 2020, TCFHC invested in training Eldercare Financial Planning Consultants. The 122 Eldercare Financial Planning Consultants at Taiwan Cooperative Bank accounted for 20% of the candidates who passed the first certification exam in 2022. Taiwan Cooperative Bank is the first bank to have more than 100 Eldercare Financial Planning Consultants dedicated to helping customers with trust planning and elderly care advice.

With humanity and pursuing social wellbeing as the core value, Taiwan Cooperative Bank has rolled out a variety of financial products and services. TCB has offered different project loans for small and medium size enterprises, key innovative industries, local creative industry, agricultural and fishery industries, and youth and long-term care institutions. Unemployed under insurance start-up loans and micro startup phoenix loans received recognition from the Ministry of Labor for their outstanding performance, with an industry leading market share of 27.79% at the end of 2021.

In fulfillment of environmental sustainability, TCFHC and its subsidiaries all passed the certifications ISO 14064-1 Greenhouse Gas Emissions Inspection, ISO 50001 Energy Management System, and ISO 14001 Environment Management System in 2020. The management units of TCB and head offices of the other subsidiaries, 23 units in total, obtained these three certifications in 2021. We promise to complete the greenhouse gas inventories and certification for all offices by 2022.

A group-wide lights-out campaign was launched for June to September 2021. The campaign urged consumers to save energy and reduce carbon emissions. It was estimated that the campaign achieved 483,162 kWh in electricity savings, which was the equivalent of 246 tCO2e. Furthermore, starting in March 2022, horizontal and vertical signs at the offices and non-essential lights were turned off as part of a more proactive way of saving the planet. Meanwhile, TCFHC is assessing the use of solar panels and renewable energies at the offices and the construction of bank branches designed to receive green building labels.

TCFHC's efforts have been widely recognized in different forms, including TCSA Taiwan Corporate Sustainability Report Award, Platinum Award, Social Inclusion Leadership Award, and Innovation and Growth Leadership Award of the Taiwan Corporate Sustainability Awards; the BSI Resilience Award of Excellence for the 2nd consecutive year; inclusion as one of the 2021 Common Wealth Top 100 Citizens of Sustainability for the first time; the Best Corporate Social Responsibility Award of the Excellence Awards for the 5th consecutive year and the Best Innovation Award for the first time; the Best Charity Campaign Award of the Global Views Monthly CSR Awards for the first time; ranking in the top 5 percentile of the 8th Corporate Governance Evaluation in 2021; the gold award of the 2021 Happiest Places to Work as voted by users of 1111.com.tw; and the excellence award of the Most Desired Financial Holding Company of the Insurance Dragon and Phoenix Award. Meanwhile, TCFHC has been included in the FTSE4Good Emerging Index, FTSE4Good TIP Taiwan ESG Index, TWSE Corporate Governance 100 Index, TWSE RAFI Taiwan High Compensation 100 Index, and TWSE RA Taiwan Employment Creation 99 Index for consecutive years.

Looking forward, TCFHC will continue to adopt international initiatives, fulfill SDGs, and take forward-looking action to achieve sustainability. TCFHC will also extend its financial influence to encourage its borrowers, investees, and suppliers to strengthen ESG efforts and create value in sustainability.