At the end of 2010, the Delta Group employed more than 80,000 people around the world. By business cluster, 69% of global employees are working in Power Electronics. Geographically speaking, more than 72% are located in Mainland China. For 2011, the distribution of employees in main business clusters is shown below.

The recruitment, employment and development of employees at Delta is based on merit. All employees are treated equally regardless of race, religion, color, nationality, age, gender, sexuality and disability. Female employees account for 63.4% of all Delta employees at major sites in Taiwan, China and Thailand. Direct labors account for 62.5% of all employees as well. 64.4% of supervisors over the grade of assistant manager are local nationals and 16.2% are female.

As a world enterprise and a responsible corporate citizen, Delta Group (the Company) is committed to offering our employees an environment to develop their capabilities. To fulfill this commitment, Delta Group constantly strives to comply with local regulations and to meet international labor and human rights standards, including the Electronic Industry Code of Conduct (EICC), Universal Declaration of Human Rights, International Labor Office Tripartite Declaration of Principles, OECD Guidelines for Multinational Enterprises, and more. To accomplish this objective, the Company has implemented the Delta Group Employment Policy.

Law Compliance:
　　To comply with applicable labor or employment laws and international standards wherever it
　　operates.

Freely Chosen Employment:
　　To prohibit hiring forced labor or child labor. All jobs shall be taken voluntarily and
　　employees can voluntarily leave the company with a reasonable period after giving notice.

Humane Treatment:
　　To prohibit any form of harassment and inhumane treatment, including any sexual harassment,
　　abuse, slavery, corporal punishment, threatening, exploitative, mental or physical coercion or
　　verbal abuse of employees.

Non-Discrimination:
　　To hire employees based on capabilities, and to not discriminate based on race, religion,
　　color, nationality, age, gender, sexual orientation, disability, or other reason which is protected
　　by law in recruitment, training, awards, promotion, termination, retirement, or other
　　employment condition.

Working Hours:
　　To establish a management mechanism for working hours in line with labor laws and
　　regulations. Unless for special operating conditions, employees shall be allowed at least one
　　day off for each seven working days.

Compensation and Benefits:
　　To provide employee compensation and benefits to meet the applicable laws, including
　　minimum wages, holidays with pay and welfare provided in the law.

Freedom of Association:
　　To respect the rights of employees to associate freely on a voluntary basis and to
　　organize labor unions, and to establish employee communication channels according to local
　　regulations.

Training Opportunity:
　　To ensure equal opportunity for employee development and provide job-related training to
　　enhance employee capabilities and skills

Health and Safety:
　　To provide a safe and healthy working environment in accordancewith applicable safety and
　　health regulations, and to establish and maintain an occupational safety and health and safety
　　management system that defines operational procedures and monitors the implementation of
　　continuous improvements in safety and health performance.

Through relevant procedures and management processes we have implemented the aforementioned employee policy. At our China plants, we have taken the following procedures and measures to confirm proper age requirements :

Our employee policy recognizes employees' right to freedom of association and unionization. We have also established channels of communication with our employees in accordance with local law. In Taiwan for example, the quarterly labor-management meetings as well as the regional welfare committee enable employee representatives to provide feedback and suggestions on certain issues. The issues are discussed during the meetings so a consensus can be established with the company. In China, communication consists of talk panels as well as employee-management meeting led by human resources. The meetings are organized independently by each plant and held once per quarter. Employees can raise any issues they have regarding work or lifestyle for the relevant departments and managers to answer and propose improvements.

Apart from our basic employee policy, Delta also offers a variety of channels for communications for cultivating positive labor relations. For example, employees can use written letters, e-mails or the 24-hour service hotline to make suggestions to the company. Our sites also have documented processes such as the "Internal and External Communications Procedure", "Employee Rights Protection Procedure" and "Employee Complaints Management Procedure" to ensure that each channel of communication remains open.

Employee feedback on their work environment as well as the various services and facilities provided by the company is also taken seriously by Delta and used as a reference for future improvements. Employee opinion surveys are conducted by each region based on their local requirements to learn how employees feel about their overall work environment. At the Taipei head office for example, the September 2011 survey showed that employees were generally satisfied with their overall environment and 31% of responses also included suggestions. In the future, Delta will use these suggestions as a basis for making improvements to the software and hardware of the work environment.

We also intermittently adjust the compensation structure and benefits based on local laws and markets. We have designed incentive schemes to attract and retain talented personnel to maintain our competitiveness in the job market and show employees that Delta values talent.

The overall remuneration strategy at Delta is formulated at the company level by the compensation committee based on the competitive environment, company performance and benchmark markets. Recommendations for management salaries are then based on team performance, personal potential and actual performance. The recommendations are submitted to the Board of Directors for confirmation in order to attract, retain and encourage outstanding employees. Remuneration is not influenced by personal factors such as gender, race, nationality or age.

As for employee per formance reviews, Delta has adopted the Per formance Management and Development (PMD) system to link the company's strategy targets, personal performance targets, company values and abilities as well as individual career development. The system effectively reflects individual responsibilities in their performance review and all Delta employees are governed by this scheme. The performance of managers in plant management, labor safety, factory administration and human resources, for example, are all closely linked to labor safety, environmental protection and labor indicators. The salaries also fully reflect the link with performance. In principle, the higher a manager is in the hierarchy the more closely their remuneration is linked to performance.

Besides the above, Delta not only provides insurance, benefits and pension contributions in accordance with local laws or practice, but also provides group insurance that exceeds legally mandated levels to protect the safety of employees at work and at home.

Delta considers our employees to be our most important asset and has always placed a strong emphasis on personnel cultivation and development. Training courses are provided to meet the needs of employees in different countries and regions.

We also provide a range of learning environments to improve the effectiveness of learning, including

In 2011, the total training hours at Delta's major plants in Taiwan and mainland China and Thailand exceeded 2.16 million hours. On average, each person receives 35 hours of training. We are training "internal experts and instructors" in Taiwan and China for subjects such as sales, course planning and project management. By providing a better match for the requirements of the company organization and processes, we can help employees settle more quickly into their work and make a difference.

Leadership Development

Outstanding high-level talent is critical to the globalization process at Delta. With the guidance and assistance of a consulting company (DDI), we have made the cultivation of high-level talent a strategic part of Delta Group's operations as we build up a systematic training and development framework. Starting in 2009 a complete system has been implemented with the support of the Delta Leadership Committee that is targeted at outstanding employees with great potential. The system ensures that the quality and ability of high-level talent (BU/BG and MFG managers) will meet the needs of Delta's future development.

Leadership development aims to develop a common management language and personnel development scheme that will enable all Delta executives to demonstrate the abilities and behaviors expected of of "Leadership@Delta". To establish a Leadership Pipeline, in addition to performance reviews objective evaluation tools uch as the 360-degree survey and Leadership Inventory Index (LII) are also used to identify individual differences in management competencies. The information is used for developing the Individual Development Plan (IDP) and blueprint for learning & development. After the "Delta Phase 1" talent development plan was held in 2010, the 360-degree survey was conducted for each talent so they can identify the gaps in their own abilities. Under the guidance of consultants and mentors, they completed their Phase 1 IDP. Due to adjustments to some of the core competencies in 2011, Delta conducted a 360-degree survey again to review the results of each IDP over the past year and modify their directions as necessary.

Apart from the development of high-level executives, Delta will progressively introduce a training framework for the competencies required in individual functions (e.g., R&D engineering, marketing and support).

Employees are Delta's most important assets. Delta provides a variety of employee communications channels, competitive salaries and benefits, comprehensive training framework and a comfortable, safe work environment to encourage employees to stay with the company. If an employee submits their resignation, Delta immediately organizes a separation interview with the applicant in order to understand their reasons for leaving. We then do our best to offer our support and persuade them to stay. In 2011, the turnover rate for indirect labor employees in Taiwan was 11%.