Contents MOS CSR Report

1 About An-Shin’s CSR Report 3 4 Sustainable Governance 23 5.4 Sustainable Procurement 60 6.4 Cooperative Education 88 & Local Touch Management Programme for Youth 1.1 About An-Shin’s CSR Report 3 4.1 Sustainable Governance 26 5.5 Legal Compliances 64 6.5 Listen to Partners 90 1.2 About the Report 3 Personnel Training 4.2 Signature Product 5.6 Store Sanitary Checks 6.6 92 36 66 Management 1.3 Report Boundary and Scope 3 4.3 Product Development and 37 5.7 Climate Change and 67 6.7 MOS Burger Academy 100 1.4 Reporting Guidelines 3 Innovation Energy Mangement 6.8 Occupational Safety and 102 4.4 Customer Feedback & 1.5 Contact 40 Investment in Environmental 69 Health Management 3 Analysis 5.8 Protection and Energy Savings 6.9 Occupational Health & Safety 102 4.5 Customer Satisfaction Survey 41 5.9 Environmental Legal 69 checks Compliances 2 Our Commitments 4 4.6 Exemplary Service 42 6.10 Uplift Influence to the 110 5.10 Energy and Greenhouse Gas 70 Communities 2.1 A message from our Chairman 4 4.7 Innovative Ordering 43 Management 6.11 Influence on Society 112 4.8 Internal HDCS Audit 44 5.11 Paper Consumption 70 Special An-Shin Smart Workplace 114 Management Report 3 An-Shin’s Operation 5 4.9 Covert Customer Evaluation 45 5.12 Water Resources 70 3.1 Company Profile 5 4.10 Protection of Personal 46 Management Information 7 Appendix 117 3.2 Major Achievements 5 5.13 Waste Treatment 71 4.11 Information Security 47 Management 7.1 Limited Assurance Report by 117 3.3 Variable Store Types 6 5.14 Waste Reduction at the Source 71 Independent Accountants Special Environment Friendly and 3.4 Sustainable Organization 7 Report 49 Special UN Sustainable Development 118 New Diet First Fast Food Chain Store 75 7.2 Report with Smart Plant Factory Goals (SDGs) 3.5 Sustainable Business Model 8 Special Meal Delivery Robot Report 50 Special GHP Excellence Recognition 76 7.3 GRI Standards Index 119 3.6 Sustainable Strategy 10 Report 7.4 Rules Governing the Prepara- 123 3.7 Performance Highlights 11 5 Food Safety Responsibility 51 tion and Filing of Corporate and Environmental Social Responsibility Reports Contribute to Society & 3.8 Industry Overview 13 Sustainability 6 77 by Listed Companies Prosper Together (hereinafter referred to as 3.9 Market Analysis & Tactics 14 5.1 Food Safety Task Force and 54 the“Rules”) Article 4, Para- New Practices 6.1 Happy Workplace & 81 3.10 Integrity Management & Recusal 15 Employee Care graph 1 Emphasized Disclo- of Conflicts of Interest 5.2 The First and The Only Food 55 sures and Summary of Chain Store with TAF&TFDA 6.2 Employee Diversity 81 Subject Information Assured 3.11 Stakeholders Communication 16 Dully-certified Laboratory 6.3 Management Trainee 87 3.12 Materiality Analysis 18 5.3 Supplier Evaluation System 58 Program

2 MOS CSR Report 1 About An-Shin’s CSR Report 1 About An-Shin’s CSR Report

1.1 About the Report GRI GRI 102-1 GRI 102-5 1.3 Reporting Guidelines GRI 102-46 GRI 102-54 GRI 102-56

To elaborate on the Corporate Social Responsibility (CSR) progress of An-Shin The report states the sustainability progress from economic, environmental and social aspects. The Food Services Co., Ltd. (hereinafter referred to as our company, An-Shin Food, report also re-identifies stakeholders and major concerns, assesses materiality, and responds to the An-Shin, MOS Burger or us) to all stakeholders and evaluate the performance of 17 United Nations Sustainable Development Goals (SDGs), emphasizing the disclosure of manage- major concerns, we have published the annual CSR report. The CSR Report and ment approaches. The report follows “Taiwan Stock Exchange Corporation Rules Governing the the CSR website are two of the many ways we communicate with our stakehold- Preparation and Filing of Corporate Social Responsibility Reports by TWSE Listed Companies,” and ers, aiming to be accountable, transparent and objective. The goal of pursuing complies with the core option in the GRI Standards published by the Global Reporting Initiative sustainability with integrity makes An-Shin the practitioner of CSR and leader in (GRI). This report was also verified by PricewaterhouseCoopers (PwC) Taiwan to assure selected the food services industry. information, and issue a limited assurance report in accordance with the Statement of Assurance Standard No.1 "Assurance Engagements other than Audits or Reviews of Historical Financial 1.2 Report Boundary and Scope GRI Information" in the Republic of China for transparency. The Limited Assurance Report of Indepen- dent Accountants and Summary of Information Assured can be found at the end of the report. GRI 102-10 GRI 102-46 GRI 102-50 GRI 102-51 GRI 102-52 1.4 Information and Data The report encompasses An-Shin’s progress in 2019 (January 1, 2019- Decem- ber 31, 2019), including industry outlook and business initiatives. The boundary The data in this report were collected and verified by all departments before submitting for compiling of this report addresses An-Shin Food Services Co., Ltd. with a focus in Taiwan. and further review. The information includes operation statistics, training records, topical discus- There are no substantial changes in our scale, organization structure, and sions, and also refers to department interviews. The methods for collecting, measuring and calculat- ownership during the reporting period. ing the data and indicators are in compliance with local regulations. If there are no specific regulations, the international standards shall apply. If no international standards are applicable, then the industry standards or practices shall be adopted.

1.5 Contact GRI 102-3 GRI 102-53 Last issue date: August 2019 An-Shin Food Services Co.,Ltd. Latest issue date: June 2020 Address 8F., No.156-1, Songjiang Rd., Zhongshan Dist., Taipei City 104, Taiwan (R.O.C.) Tel +886-2-2567-5001 Contact Corporate Sustainability Task Force An-Shin’s CSR Website Website http://www.mos.com.tw/ Email [email protected]

English Editors Monica Lee, Justin Chen

2014 2015 2016 2017 2018

CSR Report CSR Report CSR Report CSR Report CSR Report

MOS CSR Report 933 2 Our Commitments 2 Our Commitments 2.1 A Message from Our Chairman GRI 102-14 GRI 102-26

Food Safety & Customer Centricity An-Shin(MOS Burger) is the first Japanese-Style Fast Food Chain Store in Taiwan. It Sustainable Business & Earth Right features delicious specialty rice burgers and has served Taiwan for more than 29 years. An-Shin is not only dedicated to providing a friendly and low-carbon dining environment MOS Burger is dedicated to food safety, exceptional service and high quality. As our but also to promote the spirit of our logo: “Mountain, Ocean, Sun.” Besides encouraging mission statement, “Contribution to Humanity, Contribution to Society” states everything employees to love the environment, we also invite customers to be environmentally we do at An-Shin reflects our commitment in taking precise procedures to fulfill and conscious. Our dedication to the earth was supported through the signing of the MOU as surpass our customer expectations. Adhering to the business philosophy of our mission we cooperated with the Construction and Planning Agency of the Ministry of the Interior statement, An-Shin Food is committed to food safety with integrity, solid procedures, (CPAMI) since 2018. To further support this partnership, information about activities in strict audit and responsible management procedures. National Parks are broadcasted through our own FB pages, websites, display-related Local Ingredients & Healthy and Delicious Eats brochures in our stores and blended into our interior design. These initiatives aim to recognize the intrinsic value of our beautiful earth and promote ecocentric conscious- we are consistently focusing on new initiatives and launching product offerings. To ness. We continually strengthened environmental education in 2019 and sponsored the ensure the health of our customers, An-Shin executes a “3-in-1 Green Purchasing issuance of the "Taiwan National Park Travel Passport" with CPAMI to promote national Policy” which integrates food traceability, local sourcing, and contract farming into our parks and environmental protection. supply chain. Each spring we plan “Lohas Morning Markets” to sell handpicked crops from “Origin Travel,” allowing customers to enjoy the same fresh materials used in all People Industry & Employee Care MOS Burger stores. An-Shin has long been partnered with local farmers to provide customers with many ingredients across Taiwan through our store channels. In 2019 Employees are the building blocks of enterprises, so we implemented a “Smart Healthy An-Shin also worked with the National Development Council of the Executive Yuan to City Project,” with the help of the Health Promotion Administration, Ministry of Health promote the "Regional Revitalization" project. and Welfare (MOHW), to build a comfortable and friendly workplace since 2017. In 2018 "Smart Mobile Office" used smart technology to provide more health promotion ser- Food safety is our top priority, reflected in our internationally certified food safety control vices such as exercise and diet information. In the future we aim to be the most pro- system as well as our TAF and TFDA certified inspection center. We check our products spective and sustainable company in the restaurant industry where each MOS Burger in every step of our supply chain, not only providing quality and delicious meals but also store is the subcenter for sustainable development built upon our relationships with ensuring food safety and green purchasing. nature, friends, and family. We embrace corporate social responsibility with business Intelligent Innovation & Technology Experience strategy, uphold customer-centric value, and offer customers “Really As eating habits are constantly changing, new food delivery systems and technology are Safe, Truly Delicious” products. also rapidly improving, impacting the way resturants operate. To accomodate changes in Everyone at An-Shin an earth-right the consumer enviornment, An-Shin introduces the “product quality, service quality, and participant and contributes to sus- environment quality” enhancement plan to shape new dietetic cultures. Each new initia- tainability. We foster customer loy- tive of An-Shin, (including robots and smart plant factory) are to better the customer’s alty, employee engagement, and experience and reflect their changing demands. environmental friendliness, which 董事長 leads to a virtuous cycle and make us a respectable enterprise with green credentials.

4 MOS CSR Report 3 Company Profile 3 An-Shin’s Operation

3.1 Company Proﬁle GRI 102-1 GRI 102-3 GRI 102-5 GRI 102-6 GRI 102-7 GRI 102-9

In 1990 TECO Group cooperated with MOS Food Services, Inc. from Japan and formed a joint venture to establish An-Shin Food Services Ltd., Co. An-Shin was the first fast food chain to be listed on Taiwan Stock Exchange on December 15th, 2011 (Ticker: 1259). An-Shin has dedicates to meet market needs and customers’expectations with steady business plans and leads the industry with product launches and local specilaties. Through diversified business strategies and efficient asset management, it will advance further to contribute to the Society, achieve greater success and maintain leading position in the restaurant industry.

Table 3-1. Company Background

Company An-Shin Food Services Co.,Ltd. Contribution to Employees 5,965 people Humanity,Contri bution to Date of Establishment 1990/11/23 We kindly serve Society people with agile Chair Chien-Yuan Lin Mission actions, give a clean and CEO Shun-Hsing Kao Core warm dining atmosphere, Services and strive to make 8F., No.156-1, Songjiang Rd., Zhongshan Initiatives Headquarter Appreciated customers feel happy Dist., Taipei City 104, Taiwan by Custom- Basic and and cozy. Capital $NT 323,895 thousands ers Principles Stores 275 Company Company （Note1）As of 2019/12/31. Background History 3.2 Major Achievement

Taiwan 1st MOS Burger: Increased 39 stores Issued the prepaid Telephone Ordering 449-2626 launched in Kaohsi- An-Shin ‘s 20 anni- Xinsheng Store, launched and reached the contactless value ung and Tainan. versary, launched the first-ever rice burgers in 100 stores plan. card "MOS Card". Expanded 24-hour service to over 40 stores and 2nd generation MOS Taiwan. The very first chain Total revenues The total revenues breakfast takeaways service to over 90 stores. Card with mobile 2019 store with faucet facility in exceeded NTD$1 exceeded NT$ 2 An-Shin Food Services (Singapore) Pte. Ltd., a joint payment and dining area. billion. billion. venture to invest in China and establish Xiamen An Shin upgraded MOS Order Food Management Co., Ltd. APP. Reached 275 Since stores and 1990 1991 1992 2004 2006 2007 2008 2009 2011 2012 2016 2018 worked towards 300 stores goal An-Shin Food Ser- Cash capital increase of Cash capital increase The capitalization MOS Burger Australia Pty. The capitalization of 15 meal service vices Ltd., a joint NTD$40 millions. of NTD$80 millions. of retained earn- Ltd., a joint venture to retained earnings of Total robots were venture with MOS ings of NTD$20 invest in Australia. NTD$29,445 thosands. revenues available Food Services, Inc. millions. An-Shin ‘s 20 anniversary exceeded An-Shin Smart from Japa, with a and reached 200 stores. NT$ 5 billion. Plant Factory was set up capital of NTD$80 An-Shin was listed on Taiwan millions. Stock Exchange on Decem- ber 15th, 2011 (Ticker: 1259).

MOS CSR Report 5 3

Company Profile Residential/Commercial Store Type Shops located in the metropolitan residential/commercial area, close to people lives, pro- 3.3 Variable Store Types GRI 102-4 vide consumers with a good place for afternoon tea. In 2019, Xizhi Dream Community Store, Heping Jianguo Store, Taishan Quanxing Store, Taoyuan Zhongping Store, Taoyuan Zhong- In February 1991, An-Shin established the first MOS Burger store on Xinsheng zheng Store, Zhubei Wenxing Store, and Taichung Xitun Store were opened. South Road in Taipei City. It is now the second largest fast food chain company in Taiwan. The number of stores has reached 275, across every county in Taiwan, including Kinmen and Penghu. An-Shin will work towards the goal of 300 stores and will commit to the "variety service and local specialty" to provide high-quality diet to consumers.

Xizhi Dream Community Store Taoyuan Zhongzheng Store Heping Jianguo Store Total Highway Service Area Type Highway service areas, the main 275Stores transportation hub and spoke, allow tired people to enjoy hot Taipei City 109 Keelung City 2 food quickly and easily. MOS Taoyuan City 26 Burger Taian Store, Zhongli Store, New Taipei City 51 Suao Store etc. are opened. Hsinchu City& County 11 Suao Service Area Taian North Service Area Miaoli County 3 Yilan County 4

Taichung City 26 Hospital Store type Kinmen County Changhua City 8 The food court of hospital is a high-quality space for medical 1 Changhua County 4 Nantou Hualien County1 staffs, patients and family members to relieve stress and enjoy County a healthy diet. In 2019, we set up MOS Burger in Xinguang Yunlin County 4 2 Hospital to provide healthy, delicious and nutritious meals. Chiayi City Penghu & County 4 County 1 Tainan City 8 Xinguang Hospital Taitung County 1 Shopping Center Type Store Kaohsiung City 15 The food court, where serve all kinds of food, is a good place to rest when shopping. Therefore, An-Shin Pingtung County 2 aggressively develops this kind of stores, so that customers who love MOS Burger can buy delicious food at any time, for example Jiafu Chongxing Store, Academia Sinica Academia Sinica Store Jiafu Chongxing Store Store, and Changxing Store. 6 MOS CSR Report 3 Company Profile

GRI 102-18 3.4 Sustainable Organization Table 3-2. Organization Chart A sound management organization is one of the necessary conditions for the company's sustainable Department Function and Scope development. An-Shin adheres to the concept of integrity management, establishes a transparent corpo- Auditor’s Internal control and audit plans rate governance structure and procedure principles, to ensure the stable operation and protect investors Office and stakeholders rights. Implement audits Promote projects and formulate innovative business Shareholders Chairman’s strategies Office Brand management and public relations Remuneration Board of Committee Business strategy planning, project execution and Directors Meeting new business development. President’s CSR Committee Auditors’s Office Office Contract review management and legal affairs. Chairman Consumer opinions and complaint handling. President’s Office Overseas (China and Australia) business support. Chairman’s Office Legal Affairs Group 3Q Innovation Promotion Group Business Planning Group Public Relations Information development, information security and Customer Service Group President Overseas Support Group system automation. E-commerce promotion. Procure- ment, Material purchase, supplier management and cost Quality control. Procurement, Quality Human Resource , Financial Management and Operation Management Assurance Assurance and Support Engineering,and Marketing Store Development Workplace Health and Safety. and Hygienic inspection, food safety monitoring, labora- Support tory management and maintenance of ISO/IEC17025 international certification. Safety and Health Engineering and First Division Financial Management Group Equipment Dept. Dept. Big data analysis Second Division Procurement Dept. Marketing Dept. Store Development Third Division Human resources planning, organizational regula- Dept. Electronic Commerce Product Development Human tions, employee welfare, and labor relations. Fourth Division Resource, Dept. Dept. Products planning and development, advertising and Engineer- Fifth Division marketing, inter-industry promotion, inter-industry Information Technology Human Resources ing and cooperation, and CIS management Marketing Dept. Dept. Education and Train- Store design and remodeling, hydropower engineering Dept. ing, fire safety, and maintenance management Quality Assurance Operation Manage- Dept. ment Dept. Operation Employee education, training and career develop- Manage- ment. Food Safety and ment Oversee daily store operations, store performance Inspection Center review, communication and support

Cost management, accounting and tax management Financial Manage- Financial planning, treasury, Investor relations ment and Asset management and investment Store General affairs of headquarters and stores Develop- Organization Business analysis and budget control Figure 3-1. Organization Chart ment Chart Store development and store cortracts management

MOS CSR Report 7 3 Company Profile

3.5 Sustainable Business Model GRI 102-9 Business Model An-Shin is a fast food chain with all direct stores in Taiwan, offering freshly made food and drinks for both dine-in and take-out. Since the opening of the first Xinsheng Store, MOS Burger has expanded and currently operates with a variety of stores in every city and county. An-Shin still select materials carefully and make to orders to practice our promise of product innovation and high-quality service to meet changing market needs.

Products and Services Value Chain:

Product Development Food Safety Product Experiments Product Testing and Store Training Selling and Design Specifications Market Research

Ordering Preparing and cooking Product Assembling Sanitation and Meal Service MOS System Mangement Safety Checks

8 MOS CSR Report 3 Company Profile

3.5.1 Internal Business and Project Meeting GRI 102-31 3.5.2 Risk management and emergency handling GRI 102-11

An-Shin has established a complete risk management system. In addition to reviewing An-Shin follows the relevant laws and regulations, actively strengthens internal schemes, business operations and tracking the progress of projects, we also manage the transfor- improves management performance, and maintains a harmonious labor relationship to mation of the enterprise and formulate the long-term development plan. Our internal and maintain a good corporate image. We also manage our relationships with our customers external meetings are held regularly to reduce operating risks, evaluate new opportuni- to increase their brand loyalty. Therefore in recent years, there have not been any major ties, and explore new business with highest governance to achieve sustainable opera- negative impact on our corporate image. In order to promote risk management, establish tion.。 an emergency handling mechanism, and enhance staffs' awareness and crisis handling ability, we set up "Risk Management Procedures" and "Crisis Handling and Business Continuity Plan.” The related business unit will be responsible for the assessment of various risks, develop precautionary measures, and implement internal control systems. Table 3-3. Periodical Meetings An-Shin holds board of directors meetings to review operation and ESG related issues. ESG Type Meetings Frequency Highest Ranking Professionals and consultants are invited to from various functional committees and they Attendee will help review risk assessment and decision-making in order to mitigate business risks. Economy、 Top Management Meeting Social、Environment Weekly Chairman Constitution and procedures of functional committees have also been approved by the board of directors. Economy、Environment Major Operations Meeting Bi-weekly President 、、 Table 3-4. Responsibility Units for Emergency Handling： Economy Social Project Efficiency Meeting Environment Weekly President 、、 Emergency Category Responsible Units Economy Social Business Review Meeting Environment Monthly Chairman 、、 Engineering and Equipment Dept. Economy Social Natural disasters (earthquake, Strategic Meeting Annual Chairman & Operation Management Dept. & Environment Periodical typhoon, flood) Operation Divisions Economy Operations Division Meeting Weekly Vice President Infrastructure Engineering and Equipment Dept. Social、Environment Other Divisions Meeting Monthly Division Head General Affairs Dept. and Environment Economy Operations Action Plan Meeting Monthly Vice President Maintenance Dept. Occupational Safety and Social Food Safety Review Meeting Annual Special Assistant to Occupational safety and health, the Chairman pandemic & epidemic (infectious) Health Group Environment Energy Review Meeting Annual President Product Quality Quality Assurance Dept.

Economy Food Delivery Meeting By progress President Stable Procurement Procurement Dept.

Economy、Environment Project Smart Plant Factory Meeting By progress Special Assistant to Employer and Employee Disputes Human Resources Dept. the Chairman Economy IT Project Meeting Special Assistant to Customer Service Customer Service Group By progress the Chairman 、、 Economy Social Internal Store Managers Meeting Monthly Media and PR Public Relations Group Environment Chairman Commu- 、、 Information Security Information Technology Dept. Economy Social Headquarters Meeting Monthly Chairman Environment nication Integrity issues Auditor’s Office （Note2）For other risk management measures not mentioned above, please refer to related chapters. Others Related units

MOS CSR Report 9 3 Company Profile

3.6 Sustainable Strategy An-Shin offers safe, healthy, and delicious food to our customers and are dedicated to quality customer experience within areas of service, product and environment. An-Shin thinks globally and works locally to develop sustainable strategy and cope with economic, social and environmental challenges. On August 26, 2019, An-Shin refined strategy of 2020 as "3Q Innovation × Smart Technology × Customer Experience". Through our 3Q’s (Service Quality, Product Quality, Environment Quality), we strive to improve customer experience, which will distinguish us further from competitors. We also enter new projects and form sustainable strategies to enhance shareholder value. Regarding overseas market operations, we flexibly use marketing to meet local needs of customers and accelerate the product development to meet local consumption habits. In addition to launching local products, we also train local employees to strengthen local operations . Figure3-2、Annual Strategic Meeting Table 3-5. Short, Medium & Long Term Bisiness Plans ESG SDGs Short Term Bisiness Plans Medium & Long Term Bisiness Plans

Provide high-quality product and service, serve fresh & healthy cuisine and deliver meals to the table, unlike other competitors, deeply bond existing consumers and win new consumers. Develop special high-quality products, enhance brand image, and Continue to open new stores, expand market share, emphasize the specialty of each store, and build delivery fleets and plant factory. deepen the interaction between the local community. To reduce the dependence of manpower, we continue to apply smart Eco- Strengthen the speed of meal delivery, launch MOS Order APP, build self-service kiosks and introduce technology and big data analysis to improve service efficiency and nomic KD (Kitchen Display) in different workstations to ensure correct orders, delicious products and shorter implement precision marketing. waiting time, and increase customer satisfaction. Continue to introduce international brands and special commodities, In response to the rising cost of personnel and rent, in line with the trend of the Internet of Things, we which assist to improve multilateral cooperation and new product increase the use of digital technology and expand e-commerce with the launch of MOS LIVING. development. Emphasize on corporate governance and promote to fulfill corporate social responsibilities, and foster Form an excellent management team to enhance our competitive- business development. ness and create added value. Develop China and Australia operations and quickly establish a solid foundation for greater growth.

Form Long-term partnership with like-minded suppliers. Strengthen safety inspections, strictly select environmentally friendly ingredients, and promote food traceability to ensure quality and safety. Continue to promote energy-saving action plans, waste reduction, and provide sustainable products to ensure food safety and high Effective use of water resources in stores, introduction of water-saving toilets and faucets and other quality to avoid negative impact on environment, and confirm suppli- Environ- equipment, to better consumers' space ers food safety-related compliance. mental Promote waste reduction at source, recycling and reuse. With the attention to climate change and global warming, we monitor Deploy power-saving LED lights to reduce power consumption and continue to implement the IS0 the energy use to implement continuous improvement of energy 50001 energy management system. management. Promote food conservation activities, reduce trash waste & waste water and air pollution and other To mitigate the risk of extreme climates, An-Shin has built smart plant preventive measures to reduce environmental impact. factory to ensure stable supply and safe vegetables.

To expand the human resources to meet the future needs of the company's growth, create a friendly and happy workplace, and offer smooth communication. Continue care for elderly people living alone, and those with physical Set up transparent and multiple communication channels, listen to employees, and establish a harmo- and mental limitations. nious workplace. Establish cooperative education and dual scholarship program to Social Continue to hire disadvantaged employees. encourage young students. Actively hold work experience camps, expand cooperative education, internship programs and other Establish industry profession courses with colleges and universities, activities to provide employment and continue to carry out various cooperation projects with the govern- Create a healthy and friendly workplace, provide employee sports and healthy diet information. ment and academia for the common good of the society. In addition to responding to Regional Revitalization Projects of National Development Council, An-Shin has long cared for local small farmers and provided customers with rich food ingredients across Taiwan through our store channels.

10 MOS CSR Report 3 Company Profile

3.7 Performance Highlights GRI 102-7 GRI 201-1 Business performance is the key to sustainable developments of companies, pursued through the growth of operating income and the continuous improvement of profitability. With the joint efforts of all colleagues, An-Shin has won the recognition and trust of consumers. The consolidated revenue and profit in the past three years have been stable. The consolidated revenue in 2019 exceeded NT$5.4 billion, post an increase of 4.42%. An-Shin has grown for 5 consecutive years. The after-tax earnings per share (EPS), return on shareholders' equity (ROE) and return on assets (ROA) are NTD$ 5.02, 8.06% and 4.33%, respectively, and the investors are rewarded with a long-term stable dividends.

Economic Environmental

Total Stores Attendance rate Consolidated Sales Consolidated Sales Electricity Sales Density Water Sales Density Category2 Greenhouse of BOD(%) (NT$ thousands) Gross Profit (kilowatts/sales revenue (tons/sales revenue Gas Emissions e (NT$ thousands) in thousands) in thousands) (tonnes CO2)

98.15 98.15 275 5,484,492 1,422,949 7.83 0.24 0.24 0.24 20,859 20,483 265 20,940 5,252,104 1,357,233 7.57 4,919,312 1,288,500 258 94.91 7.45

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

Consolidated Net Income EPS(NT$) Cash Dividend Per New Product Items Recycleable Waste Non-reuseable Oil Investment in Environmental (NT$ thousands) Share(NT$) (tonnes) (tonnes) Protection & Energy Savings (NT$ thousands) 1,792 168,633 5.23 5.02 3.5 91 1,613 529 72,203 161,947 60,345 3.2 72 64 1,256 58,104 140,649 4.36 3 482 485

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

MOS CSR Report 9311 3 Company Profile

Environmental Social

Tap Certified Purchase TAP Certified Vegetables Employees(people) Middle-aged Employees Disabled Employees Covert Customer # of Stable Suppliers (NT$ thousands) Purchase(Kg) Audit Scores Male Female Middle-aged Employees Disabled Employees % of total employees % of total employees 78,928 68,044 673,173 12 102 660,610 12 87.81 88.95 90.56 67,110 654,971 10 3 3 70 70 3 3,523 3,742 3,889 535 673 687 151 153 157 1,865 1,979 2,076

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

# of TAP Certified Eggs FSC Certified Purchase ISO 22000 Certified HACCP Certified 3rd-Party Inspection Pass Rate of Store Purchase (NT$ thousands) Purchase Purchase expense Sanitary Checks(%) (NT$ thousands) (NT$ thousands) (NT$ thousands) 1,458,375 1,339,668 57,490 2,274 9,889,800 1,337,166 1,314,144 1,596 99.2 8,684,880 53,851 1,192,985 97.7 50,177 1,078,175 1,482 96.6 8,581,920

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

Table 3-6. Total Direct Economic Value Created Year Direct Economic Value Creation Unit 2017 2018 2019

Revenues : Net sales, interest, dividends, and rent thousands 4,848,214 5,195,736 5,431,693 Direct Economic Value Allocation

Operation Cost thousands 3,083,309 3,352,385 3,470,172

Employee salary , bonus and compensation: including pension and insurance thousands 1,532,772 1,619,021 1,725.189

Payment to investors: interest expenses, dividends,and dividend forpreferred shares" thousands 96,818 112,954 116,324

Government expenses: fines, and taxes (notincluding deferred taxes) thousands 47,257 51,478 30,882

Community expenses: donations, sponsorships, and local investments thousands 141 2,187 1,876

Retained Economic Value thousands 87,917 57,711 87,250

12 MOS CSR Report 3 Company Profile

Industry Consumption Trends 3.8 Industry Overview GRI 102-15 Multiple Payments and Automation to Increase Eﬃciency In 2019, the restaurant industry was facing rising operating The restaurant industry is labor-intensive. Facing rising labor costs, restaurants turn to technology to try to costs in areas like employee salaries, food ingredients, and reduce labor and salary expenses as well as reduce the workload on employees. Technology can also provide rent. The popularity of food delivery and multiple payment diverse choices and conveniences for different consumer groups, and improve efficiency at the same time. methods have changed consumer habits. In 2020, enterprises Therefore, the restaurant industry is eager to deploy automation equipment and new technology. An-Shin has needed to continually transform and upgrade to meet rising entered e-commerce in 2015, launched the MOS Order App, improved online payment and installed self- consumers’ awareness of health, sustainability, propelling service kiosks in 2016. In 2018, Kitchen Display and meal delivery robots were added and in 2019 credit card development of smart technology, and social media. payments were available in MOS Burger stores. In order to strengthen the membership management, we keep improving the accessibility of the app and launch exclusive member benefits to increase customer lifetime value and loyalty, thereby increasing the customers’ visits and willingness to consume Table 3-7. Upstream, Midstream and Downstream of Intelligent Monitoring and Smart Agriculture the Fast Food Industry In order to further stabilize the supply of vegetables and improve the quality of ingredients, An-Shin Foods explore smart agriculture in 2019 and set up "An-Shin Smart Farm" with full environmental control of the tem- Upstream Materials, commodities, agricultural perature, humidity, light and moisture required for vegetable growth. With intelligent and programmed monitor- products, packaging. ing, our plant growth is not affected by the external environment and seasons, and achieve the goal of food self-sufficiency. Midstream Research and design for food and drink Food Traceability and Information Transparency Nowadays consumers attach importance to the sustainability of the earth. Consumer attitudes are affected by Downstream QSR chain stores and sales channels companies’ CSR images. From the purchase of food ingredients, reducing of food miles, rights and interests of employees, waste treatment and energy-saving planning, to the contribution to the community and society, consumers are demanding more for the restaurant industry. Corporate image and consumer perception have become the key elements for corporate success. Climate Change & Artiﬁcial Protein In response to the problems of climate change and food supply, the vegetable-based diet revolution has rallied. In 2019, burgers with plant-based meat were launched in USA. Plant-based protein is hypoallergenic and has non-genetically modified genes, which drew the market's attention to artificial protein. Since then, the fast food restaurants are experimenting different offerings with artificial meat products to provide consumers with more diverse, environmentally friendly, and new food options. Popular Food of Service With the popularization of smart mobile devices and the development of communication technology, people can not only communicate with people, search and browse information, enjoy audio-visual entertainment, make shopping & reservations, order meals, arrange travel, but also make investments, join in meetings, do business, and make friends online. Consumers are using mobile devices anytime, anywhere, and whenever. Under the changes of the social environment and the wave of smart technology, the dining experience has become delicious, attractive, and enjoyable lifestyles. Consumer behaviors also promote the booming of food delivery services.

MOS CSR Report 13 3 Company Profile

3.9 Market Analysis and Tactics GRI 102-15 The restaurant market will continue to grow along with economic development in the future. With new trends such as multiple payments, machine automation, smart agriculture, plant-based protein, and new delivery options, customers' expectations will continue to change. As a leader in the restaurant industry, An-Shin closely observes industry trends, actively explores opportunities, reduces risks, upholds actions and innovations, develops better products, updates services, and better dining environments. In another words, we analyze the opportunities and threats of our main business activities to form these strategies:

Table 3-8 An-Shin’s Tactics

ESGＥＳＧSDGs Industry Trend Opportunities Threats Tactics

Variety of payment options Prevailing mobile devices Trial of multiple payment methods and gradually increase Multiple Reduce paper invoice printing Transaction accuracy and security transaction options Payment Reduce manual receipts Cost input for system connection and Implementation of e-invoice and carrier development Options Promote online transactions Improve transaction efficiency and refine cash management Complex marketing feedback and and e-commerce Innovative marketing cooperation reward mechanism Eco- nomic Set up a delivery service task force to build a delivery fleet Adds new channels and new Intensified competition Develop products suitable for takeout and delivery services to cater for consumers' Dine-in demand may be reduced Development of new environmentally friendly packaging materials needs for instant convenience Waste of used packaging may increase Delivery Promote industry transformation and accelerate investment in Emphasis on visual packaging Increase of commission expenses for deliv- Service new technology Booming delivery platforms ery platforms Gradually replace fuel vehicles with electric vehicles Upgraded logistics system Traffic management and exhaust emissions Set up the company's own fleet and protection of employee The rise of the gig economy Delivery service and labor safety issues benefits

Accurate and consistent quality Machine development and construction costs Accelerate R&D with TECO Group’ electric & machinery expertise control Service process and field environment remodeling Automa- Promote new store types and store design Socail Smart service attracts attention Review of manpower allocation tion Improve staff efficiency and value added Reduce the burden on employees Customization and humanization to be Deploy big data and AI technology Innovative consumer services improved

Industry-academic collabora- Lack of talent in related fields tion and future agriculture Strategic alliance with NPUST Increased production and commercial applica- Fighting climate change and Smart tions Set up Agricultural Production Dept. to take charge of plant fac- solving the food crisis tory Agricul- Balance between technology innovation and Smart agricultural technology Use of environmental control technology and Internet of Things ture business model innovation monitoring Construction cost of safe and non-toxic culti- Environ- Reduce resource use and vating environment Recycling of circular economy mental carbon footprint

Environmental protection and Insufficient novel ingredients production and Plant- International sourcing to ensures quality and reduces costs health awareness expensive adoption based Use vegan ingredients and healthy vegetables Trysumers and easy adoption Consumer doubts about new ingredients Protein Expand the development and testing of other similar products Plant-based alternative protein Gradual acceptance and fewer item options

14 MOS CSR Report 3 Company Profile

3.10 Integrity Management and Recusal of Conﬂicts of Interest GRI 102-16 GRI 102-17

In order to reinforce the corporate culture and establish a good business operation, the Human Resources De- partment promotes integrity management. We specially formulated and promulgated the "Integrity Management Code,” "Integrity Management Operation Procedures and Conduct Guidelines,” "Work Rules,” and "Employee Code of Conduct.” "Integrity Management Operation Procedures and Conduct Guide" is aim to prevent dishon- est behavior, and specifically elaborate the matters that all employees should pay attention to when doing business. The "Work Rules" are specific and clear provisions on labor conditions and important matters in the Labor Standards Act, so that all employees can clearly understand their rights and obligations. The "Employee Code of Conduct" is a commitment to law compliance and ethics which guides all employees how to perform their duties, uphold a high degree of self-discipline with integrity, abide by ethical standards and avoid conflicts of interest. On August 14, 2019, the education and training course "Employee Ethics" was conducted through the National Store Managers Conference. Various meetings were also used to promote the concept of integrity management. We also established an effective accounting system and internal control system with regular checks by internal auditors. In addition, An-Shin Food specifically discloses our integrity management policy on the webpage of suppliers’ area, strictly require employees to abide by all relevant regulations about transaction and never request or accept improper benefits from interested parties. Every year, before important holidays, our Procurement Dept. Figure 3-3. Integrity Policy will send a "Notice of Integrity Principles" to all employees and suppliers to promote ethical business practices.

In 2019 An-Shin did not have any material violations, or large fines. There were also no issues with government policies or regulations. Within the workplace, any violations of employee Code of Conduct will also be actively investigated by auditors and reported to the board of directots. An-Shin Food established an independent audit process and whistleblowing channel ([email protected]) Integrity Integrity Employee Code through the Auditor’s Office. The identity Management Management of Conduct of the whistleblower and content will be Code Operation kept confidential to protect the whistle- Procedures and blower from potential retaliation or unfair Figure 3-4. Notice of Integrity Principles Conduct Guidelines treament.

MOS CSR Report 15 3 Company Profile

3.11 Stakeholders Communication GRI 102-43 An-Shin listens to stakeholders’ advices and takes it as important reference for decision-making. We place importance on proactive and variable communication with stakeholders through the CSR website, meetings, annual reports, e-news, MOS Life periodicals, surveys, social media, and customer feedback etc. to pinpoint major concerns of stakeholders and voluntarily disclose sustainability performances.

Table 3-9. An-Shin Stakeholders Communications Channels

Stakeholders Meanings Topics Concerned Communication Channels Frequency Communication Highlights in 2019

51.76% of the total Shareholder Meeting annual once a year shareholdings were Economic Financial Statements quarterly quarterly held by individuals, Performance& Annual Report annual once a year foreign institutions Corporate Gover- Share- and outsiders. nance Website update when needed disclose related information holders Shareholders are Product & Service Investors Conference & Roadshow planning planning most concerned Innovation about An-Shin's per- Public Health and TWSE Market Observation formance, corporate update when needed disclose related information Food Safety governance and sus- Post System tainable development Reply via phone or email reply at any time Reply 10 inquiries from investors and analysts Dept. of Quality Assurance checks in accordance with daily food safety related regulation Periodical regulation checks nonscheduled Dept. of Legal Affairs summarizes corporate regulation Compliance with and checks in accordance with related laws laws and regulations Economic Performance& Dept. of General Affairs propagandizes and copes with is the most basic nonscheduled Corporate Gover- updates of environmental regulation Govern- requirement of government agen- nance ment Compliance with nonscheduled In accordance with Personal Information Protection Act Agencies cies for enterprises, and disseminate irregularly and it is also the key Environmental Protection and In accordance with food safety regulation and latest to the company's Advocate related schemes prompt business perfor- Socioeconomic updates Regulations mance and sustain- In accordance with labor-management regulation revi- prompt able development. sion and disseminate internally

prompt In accordance with labor legislation and latest updates

As a model in the fast-food chain Public Health and industry and leader in Food Safety Clients or food safety. Feedback Marketing & Customers from the Labeling External communication monthly Periodically obtain customer feedback and analyze owners/customers is mailbox our driving force for Product & Service continuous improve- Innovation ment and growth.

16 MOS CSR Report 3 Company Profile

Stakeholders Meanings Topics Concerned Communication Channels Frequency Communication Highlights in 2019

An-Shin values food, Supplier Meeting nonscheduled Review the order status and negotiate with suppliers services and the qual- Traceability Suppli- ity provided by other Public Health and ers or partners, and treats quarterly Implement supplier evaluation and factory audit as planned Food Safety Con- partners in a fair and Materials tractors open manner to Council/Audit achieve the goal of Conduct factory audits for normal products, logistics benefit sharing and quarterly supplier, packaging labels in accordance with annual sustainable growth. plan

Deeply cultivate communication and Public Health and MOS Life monthly Published 11 issues in 2019 interaction with Food Safety Local community, under- Marketing & Residents stand the concerns Labeling CSR Report about An-Shin and Product & Service annual Audit and publish build harmonious Innovation relationship. Public Health and Pay attention to the Food Safety interaction with the Press Conference nonscheduled 4 press conference in 2019 Product & Service media, respond to Innovation Media the media in time, maintain and Economic Performance& enhance the com- Press Release non scheduled 42 press releases in 2019 pany's image. Corporate Gover- nance

NGOs focus on the Climate Change well-being and inter- Website ests of the general Emission non scheduled disclose related information public, which coincide Waste Water NGOs with our philosophy. Compliance with We listen and under- Environmental stand the expectations Protection Mailbox and Phone prompt reply and discussion of the public.

quarterly Forums for part-time employee We regard employees Periodical Labor-Management as the cornerstone of Product & Service Meeting quarterly Employees corporate growth, Innovation Labor-management meetings value the opinions of Public Health and Committee of Employees' employees and hope to Food Safety Welfare meeting quarterly 4 meetings a year provide a happy Traceability workplace. Employee Appeal Mailbox monthly Reply 43 appeals in 2019

MOS CSR Report 17 3 Company Profile

3.12 Materiality Analysis GRI 102-21 GRI 102-29 GRI 102-31 GRI 102-40 GRI 102-42 GRI 102-44 GRI 102-47 Our CSR report consolidates assessment scheme into a systematic analysis and identifies major concerns/topics for stakeholders as a basis for reporting, which allows for effective communication and continuous improvement in our sustainability performances. To address stakeholder inquiries, we enhance CSR disclosures and respond in a timely manner. An- Shin identifies key issues for stakeholder concerns through materiality analysis, including 5 steps: (a) stakeholder’ s identification, (b) major topics identification & induction, (c) survey on the degree of concern and impact of the major topics, (d) materiality assessment & priority, and (e) validation & discussion. Other relevant information is also disclosed in each chapter of this report.

Table 3-10. 5 Steps of Materiality Analysis

Stakeholder Concerns 4.70 Step 1 An-Shin Corporate Sustainability Task Force identifies major Customer Health and Safety stakeholders who interact with and/or might be impacted by Stakeholder’s An-Shin’ s operation after discussion and assessment. Major Identiﬁcation stakeholders include employees, shareholders, government Product and Service Innovation agencies, clients or customers, suppliers or contractors, local 8 Stakeholders residents, the media and NGOs. Traceability Materials Marketing and and Labelling Step 2 An-Shin Corporate Sustainability Task Force analyzes the GRI Packing guidelines, supplementary guidelines for the food industry, SDGs, Economic Major Topics Performance industry outlook, social dynamics, international sustainable 4.10 Environmental Regulations Identiﬁcation and Corporate trends, competitors, government concerns, and our 2019 strate- and Compliance Governance & Induction gies, based on its relevance and company characteristics, then Social and Economic Purchasing identified 38 key issues(economic, environmental and social) were Practices 38 Major Topics Compliances and Regulations summarized as the design guidelines for the questionnaire. Energy Supplier Environment Evaluation Climare Changes Step An-Shin Food online surveys the degree of concern (those that affect Emissions 3 Sewage and Waste Survey on the the evaluation and decision-making) of stakeholders and the degree of Degree of impact on sustainable management as a reference for the ranking of Occupational water Indirect Health and Safety Employee Concern and topics. A total of 255 surveys were collected. Among them, 246 Economic Diversity Impact of the 3.50 surveys about the degree of concern of stakeholders were collected, Anti-Corruption Impact Customer Privacy and Equity Major Topics and 9 surveys about the degree of impact (representative stakehold- Training Supplier Social Collected Surveys ers, CSR Task Force, and senior executives) were replied for analysis. Labor-management and 255 Biodiversity Evaluations Circular Economic Relations Education Human Rights Forced Labour Rights of Indigenous People Assessment Anti-Corruption Step 4 The scores of the degree of concern of each topic and the scores of Local Society impact on sustainable management are analyzed by matrix, and the Public Policy Market Prescence Employee Diversity and Equity Materiality topics with an average score of 5.47 or more are prioritized, and 5 Anti-Competition Non-Discrimination Assessment& major topics are identified (Figure 3-5). We then disclose strategies Freedom of Assciation and negotiation Priority & management approaches, including Public Health & Food Safety, Security Child Labour 2.90 Practices Economic Performance & Corporate Governance, Product & Major Topics 2.00 3.56 5.12 6.68 5 Service Innovation, Traceability, and Marketing and Labeling. Impactr for Company Step 5 Validation & After analyzing the major topics, the sustainable value chain is Figure 3-5. Major Topics Matrix Discussion used as the boundary analysis element. An-Shin Food will con- Survey on the Degree Take sustainable tinue to strengthen management and disclose relevant informa- value chain as as tion in the CSR report. of Concern and Impact the boundary of the Major Topics analysis element

18 MOS CSR Report 3 Company Profile

Table 3-11. Major Topics and GRI Standards Considerations Boundaries high level of impact low level of impac

Internal Boundaries Stakeholders Management GRI Standards Approaches Major Topics Meanings for an-Shin Share- Govern- Clients Suppliers Employ- Considerations H/Q Stores or or Local Media NGOs outlined in the holders ment Consumers Contractors Residents ees related chapters

Public Health and safety has always Social Health & been top concern for consum- Public Health Food ers. An-Shin has dedicated to & Food Safety Chapter 5 Safety offer safe and delicious food.

In line with brand development policies, An-Shin use seasonal select ingredients to launch prod- Product & ucts that meet consumer needs, Economic Service establish emotional connections Performance Chapter 4 Innovation with consumers, and conduct research and development for Eco- different products and services. nomic In addition to cultivating the existing market, An-Shin also explores Economic new investments, new business Perfor- opportunities, and new markets to mance / activate brand value, reduce - Chapter 4 Corporate costs, improve operating Gover- efficiency, and increase profits, nance which is the driving force for sustainable operation.

An-Shin executes a specific “3-in-1 Green Purchasing Policy” Envi- which consolidates “food trace- Traceability ability,” “local sourcing,” and ron- Public Health & Chapter 5 mental “contract farming” into our supply Food Safety chain, which distinguishes us from competitors and magnify customers' trust.

An-Shin conveys the correct product and service information, Marketing Marketing Social and actively communicates with Chapter 4 & Labeling & Labeling consumers to ensure correct way of eating.

MOS CSR Report 19 3 Company Profile

3.12.1 Sustainable Value Chain While creating sustainable value and implementing sustainable strategy, An-Shin Food increases the output and performance of the six major capitals in the economic, environmental and social aspects for different stakeholders.

Resources Input Sustainable Strategy Sustainable Value & Performance

Financial Capital Safe, healthy and Economic Energy-saving action plan had a total of 5,799, sustainable 946.64 tons of CO2e carbon reduction. Through efficient financial Consolidated Net income: NTD$161,947 thousands. The purchase of traceable vegetables amounts management, create Mission Earnings per share: NTD$5.02. to 673,137 kg. more economic value. Contribution to Cash dividend per share: NTD$3.2 Support small farmers and introduce traceable Humanity-contribue to small farmers with a total purchase amount of Intelligence Capital create happiness for Corporate governance evaluation, top 5% of the 111,591 kg of agricultural products, including customers TWSE listed companies. tomatoes, lemons and pomelos. Combine local food ingre- Contribution to Society- Covert customer evaluation, with an average Traceable sweet potato 178,290 kg. score of 82.64. dients to innovative contribue to create hap- The purchase of traceable eggs amounts to flavors and strengthen the ppiness for the ccomm- Development of 64 new products. 9,889,800 eggs. food safety profession. unity A total of 202 stores in Taiwan have obtained the GHP excellence Social Manufacturing Capital Total prodction: 103,601 thousands,including Vision No violation of the Food Safety and hygiene MOS is healthy, delicious main courses, snacks, soups etc. Improve equipment effi- management law. and energetic 42 stores introduced the new Kitchen Display, ciency and shops spe- The store sanitary checks, the second qualifica- and the meal delivery time was shortened to tion rate of re-examination reaches 100%. cialty to provide healthy Food Safety Policy 8~10 minutes. An-Shin dedicates to Recruited 450 people in 2019. and delicious meals. 49 stores introduced the multi-payment options The total number of employees is 5,965. food safety, provides and table ordering, which has greatly reduced Nature Capital the waiting time at cashiers. The number of returning employees, aged over healthy and delicious 50 and still working are 687 people, accounting Through source manage- food, which makes cus- 15 stores began to use Miss MOS Burger Robot for 12% of the total employees to deliver food to table, improve the overall ser- ment, reduce the con- tomers feel satisfied and 71 colleges and universities with industry- vice quality, and make customers have a pleas- university cooperation and 86 interns. sumption of natural trustworthy. ant dining experience." resources and maintain The total hours of education and training are Environmental 3,746 hours. Sustainable Tactics the best efficiency. As of 2019/12/31, 157 disabled employees. FSC certified packing materials purchase Social Capital An-Shin’ s strategy of Arranged food education activities, with a total of amounts to a total of 22,674 thousand fries 3,142 participants in 2019. 2020 is "3Q Innovation × bags, 4,571 thousand fried chicken bags, 1,587 Through social welfare par- In 2019, the "Invoice Donation Box" in MO Smart Technology × thousand hot dog burger boxes, 8,838 thousand ticipation, contribute to Burger stores, raised a total of NTD$ 1,793 thou- Customer Experience.” hot drink cups, 21,666 thousand cold drink cups society and gain social and 27,567 thousand carry bags. sands, " Coin Donation Box" raised NTD$ 15,134. trust. 23,125 thousand bioplastic pieces are used for All employees and customers are welcome to cold beverage cups, straws and salad boxes. Human Resource Capital participate in MOS Burger Community Clean-up "MOS Eco Cup and the We Love Earth Relay" activities. Looking for like-mind had a total of about 134,000 drinks were A total of 9,490 times of services are provided exchanged, reducing the use of more than annually, including after-school classes for dis- talents and build corner- 804,000 paper cups and lids. stones of the company. advantaged children, meal service, teenagers 1,792 tons of recyclable waste companion service.

Figure 3-6. An-Shin’s Sustainable Value Chain

20 MOS CSR Report 3 Company Profile 3.12.2 An-Shin’s response to SDGs & Action Plans Transparecy and information disclosure have been the main driving force for enterprises’ progress. All companies, regardless of scale, play an important role in the process of promoting sustainable development goals SDGs (sustainable development goals), which can promote the transparency and accountability of enterprises to assist all countries and all types of companies to solve the most urgent environmental and sustability issues. Enterprises face international challenges, turning identified risks into opportunities, which in turn improves the sustainability value of the enterprise. An-Shin Food is committed to the SDGs of the United Nations, combining them into the corporate strategy and social participation. In response to the UN SDGs, An-Shin Food refers to the five steps of the UN Sustainable Development Goals Guide (SDG Compass)-understanding the SDGs, defining priorities, setting goals, integrating, reporting and communicating. We identified and evaluated the 17 goals and 9 focuses, setting action plans and reviewing them in a timely manner to foster future sustainable business development. Table 3-12. An-Shin’s response to SDGs SDGs Link with SDGs Target Action Plans 2019Out & Impact Chapter

An-Shin integrates “food traceability,” “local sourcing,” and “contract farming,” in the supply chain and promotes the 2.c Adopt measures to ensure the proper functioning of “3-in-1 Green Purchasing Policy” . In addition, each spring food commodity markets and their derivatives and facili- we plan “Origin Travel” for employees to understand the tate timely access to market information, including on importance of traceability and foster recognition of environ- food reserves, in order to help limit extreme food price mental protection. As well, handpicked crops from “Origin 103,601 thousand products were volatility. Travel” are ready for sale in “Lohas Morning Markets” , made. which allows customers to enjoy the same fresh materials Awarded Top Buying Power of the we use in MOS Burger stores. New Product and Service of the Chapter 5 Social innovation Purchase Reward 2.3 by 2030 double the agricultural productivity and the Program for 3 consecutive years, An- incomes of small-scale food producers, particularly Procurement of 111,591 kilograms of agricultural products Shin helps to increase employment of small farms. women, indigenous peoples, family farmers, pastoralists from small farmers, 178,290 kilograms of traceable sweet and fishers, including through secure and equal access to potato traceable, and 2,084,880 traceable animal welfare land, other productive resources and inputs, knowledge, eggs. financial services, markets and opportunities for value addition and non-farm employment

3.d Strengthen the capacity of all countries, in particular Carry out various health promotion activities, such as prevention of tobacco hazards, prevention of metabolic syn- 32 courses wre held in 2019 with developing countries, for early warning, risk reduction and 2,200 attendances. Chapter 6 management of national and global health risks drome, stretch band rhythm, muscle relaxation art, physical therapy exercise.

An-Shin continuously promotes bilateral cooperation with In 2019, we had a total of 450 new universities and vocational schools to strengthen cooperative recruits joining our company. education. 4.4 By 2030, substantially increase the number of youth The purpose is to allow trainees to Signed a memorandum of cooperation with National Ping- better understand the work environ- and adults who have relevant skills, including technical tung University of Science and Technology and Chung Hua ment and company operations. Par- and vocational skills, for employment, decent jobs and University, established a profession course cooperation plan, ticipants can also slowly integrate to Chapter 6 entrepreneurship recommended suitable positions, and let young people use adopt company morals within their what they have learned work. We had a total of 398 atten- We hold a variety of workplace experience programs regu- dances participating in 9 work experi- larly. ence camp." An-Shin funds profound employee training programs, including vestibule training and on the job training, which lays the 4.5 by 2030, eliminate gender disparities in education and foundation for sustainable development. To offer quality ensure equal access to all levels of education and voca- learning for partners who work in shifts, Anshin has provided Partner with social welfare institutions tional training for the vulnerable, including persons with the digital learning scheme since 2013. We have advanced and offer local employment for 157 Chapter 6 placements, basic tests, service verification, online courses, disabled workers. disabilities, indigenous peoples, and children in vulnerable elective courses, online training for PT, common learnings, situations in-house training, invited lectures, external seminars, annual camp, projected courses, and training for staff personnel, etc.

MOS CSR Report 21 3 Company Profile SDGs Link with SDGs Target Action Plans 2019Out & Impact Chapter

5.5 Ensure women's full and effective participation and 2 female directors in the BOD (including equal opportunities for leadership at all levels of decision- 1 independent director) to promote making in political, economic and public life 6 board meetings in 2019. gender diversity. Chapter 4 2 personnel evaluation meetings in 2019. A total of 24 managers were promoted. Chapter 6 We had 224 women managers, com- posing 62% of total managers.

8.5 By 2030, achieve full and productive employment and Cooperate with the Senior Workforce Resource Center to The number of returning employees, decent work for all women and men, including for young broadcast recruiting on our website, and welcome senior aged over 50 and still working are 687 Chapter 6 people and persons with disabilities, and equal pay for citizens with managerial skills and passion for service. They people, accounting for 12% of the total work of equal value are experienced, harmonious, and help enhance goodwill. employees

Promote local culture and production, by opening branches Use Taiwan Penglai rice flour, rice grain in rural Taiwan. Using current seasonal produce and ingre- accounted for more than 51% of raw dients to introduce new products. This aligns with company 8.9 by 2030 devise and implement policies to promote sus- materials, launched rice mousse cake policies and can also be used to conduct product develop- Chapter 4 tainable tourism which creates jobs, promotes local culture ment. An-Shin joins the reward plan by the Rice Innovation By leveraging our stores, we boost rural and products Plan of Agriculture and Food Agency, Council of Agricul- tourism and support local employment. ture. We invent many new snacks to offer more product Launched 64 new products, and variety using native ingredients. 110,816 thousand products were sold.

11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air An-Shin’ s “MOS Eco Cup and the We Love Earth Relay” quality and municipal and other waste management has been promoted for more than 8 years. When customers bring their own cups for a drink, it can be rewarded for one point, and every 6 points we will give a prize reward of 12.5 by 2030, substantially reduce waste generation $NT 40~45 for drinks. through prevention, reduction, recycling, and reuse

12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, PLA, thermoplastic aliphatic polyester derived from renew- In 2019, a total of 134,000 cups were in accordance with agreed international frameworks, and able fermented corn starch, are used instead of plastic exchanged for 804,000 disposable significantly reduce their release to air, water and soil in cups and salad containers. paper cups and lids saved. Chapter 5 order to minimize their adverse impacts on human health Recycle a total of 1,792 tons of resourceful waste. An-Shin supports packaging with Forest Stewardship 15.2 By 2020, promote the implementation of sustainable Council certification (Note 3). The FSC certification ensures management of all types of forests, halt deforestation, that products come from responsibly managed forests that restore degraded forests and substantially increase affores- provide environmental, social and economic benefits. tation and reforestation globally An-Shin contributes to sustainable development with green 15.c. Enhance global support for efforts to combat poach- consumption. Ah-Shin headquarters uses PEFC-certified ing and trafficking of protected species, including by (Note 4) copy paper to help protect our forests by promot- increasing the capacity of local communities to pursue sus- ing sustainable forest management, and achieves relevant tainable livelihood opportunities" ecological, economic and social balance.

16.1 Significantly reduce all forms of violence and related Comply with the laws and regulations, the Safety and death rates everywhere Health Team keeps the record and implements mental health seminars, including suicide prevention, pressure 32 courses wre held in 2019 with 2,200 Chapter 6 16.b. promote and enforce non-discriminatory laws and awareness lectures, increases safety and health notifica- attendances. policies for sustainable development" tion, and holds mental health promotion activities.

(Note 3) The Forest Stewardship Council (FSC) is an international non-profit, multi-stakeholder organization established in 1993 to promote responsible management of the world’ s forests. The FSC does this by setting standards on forest products, along with certifying and labeling them as eco-friendly. It is a platform for forest owners, timber industries, social groups and environmental organizations to come together to find solutions to improve forest management practices. It is governed by its members from 25 countries, who join either as individuals or as representatives of organizations coming from diverse backgrounds including environmental NGOs, the timber trade, community forest groups and forest certification organizations. FSC has the world's most widely recognized forest certification scheme. (Note 4) PEFC, the Program for the Endorsement of Forest Certification, is a leading global alliance of national forest certification systems. As an international non-profit, non-governmental organization, PEFC is dedicated to promoting sustainable forest management through independent third-party certification. 22 MOS CSR Report Sustainable Governance 4 & Local Touch

275 stores in Taiwan, with a consolidated revenue of more than 49 stores introduced the Table Ordering System, and HDC $NT5.4 billion, growth for 5 consecutive years scores increased by an average of 0.7 points compared with last year Top 5% of the Corporate Governance Evaluation among the TWSE listed companies for 5 consecutive years A total of 333 customer compliments cases were received in 2019 TCSA Top 50 Corporate Sustainability Award, Best Perfor- mance Award of Supply Chain Management, and Corporate Cooperation with TECO affiliates to set up delivery fleet to pro- Sustainability Report Gold Award for 2 consecutive years vide food delivery services Advance to the Medium-sized Enterprises Competition for the No complaints related to personal information first time , ranked 12th and the only award-winning catering protection were received in 2019 service company in the group, awarded by the Excellence in An-Shin and Taiwan Art and Business Interdisplinary Founda- Corporate Social Responsibility of Commonwealth Magazine tion co-organized the 2nd MOS Burger Micro Film Competition Group R&D expenses of NTD$ 6.22 million invested in 1st fast food chain store in Taiwan to launch the "Magic Veg- 2019 etable Burger" and "Magic Natsumi Burger" made from vegetable meat A total of 353 attendances in the new product introduction courses in 2019 An-Shin and TECO Group work together to develop the first meal 42 stores introduced the new Kitchen Displays, reducing the delivery service robot overall meal service time by 1/3

Stakeholders

Shareholders Government Agencies Clients & Customers Local Residents Media Employees

MOS CSR Report 23 4 Sustainable Governance & Local Touch

Strategy & Management Approach GRI 103-1 GRI 103-2 GRI 103-3

Material Topics Meanings for An-Shin Policy & Commitment Mangement Approaches and Eﬀectiveness Evaluation Mechanism

In addition to maintaining our cur- In order to reinforce the corporate The performance evaluation of the board of directors will be carried out rent market, An-Shin also culture and establish a good busi- at least once every three years by an external professional independent explores new investments, new ness operation, we specially for- institution or a team of external experts and scholars. business opportunities, and new mulated and promulgated the "In- In addition to the Remuneration Committee, the board of directors also markets to activate brand value, tegrity Management Code" , "In- set up functional committees , including Human Resources Develop- reduce costs, improve operating tegrity Management Operation ment, New Store Development, Purchasing Committee, Management efficiency, and increase profits, Procedures and Conduct Guide- Committee, Finance Committee, CSR Committee, and Smart Technol- Economic which is the driving force for sus- lines ", "Work Rules", and "Em- ogy Committee. tainable operation. ployee Code of Conduct", which Performance The directors join different committees based on their expertise and pro- are aim to increase performance & Corporate fessional background. Except for the monthly Store Development Com- and strengthen sustainable devel- mittee, other committee meetings are held at least twice a year. Governance opment. Communication meetings between accountants and corporate governance units cover internal control system recommendations and information on recent legal changes. Internal reviews and various project meetings are to review various goals and action plans, and check the progress, so that the top management can monitor overall performance. Promote various project work through the CSR Task Force, and regularly report relevant CSR issues and progress to the CSR Committee.

In line with brand development Food is the best medicine. An-Shin An-Shin drafts the annual product schedule according to strategic posi- policies, An-Shin use seasonal develops a "New Product Develop- tions, seasonal selections and industry trends to offer food with variety, select ingredients to launch prod- ment Process" to offer healthy & diversity and freshness. Product & ucts that meet consumer needs, delicious food; blending quality Service establish emotional connections materials and exotic cuisine with Innovation with consumers, and conduct seasonal produce to create fusion- research and development for style gourmet dishes. different products and services.

24 MOS CSR Report 4 Major Topics Performace 2019 Goal 2019Action Plans 2019 Performance Mid- to Long Term Goal Indicators Information of changes in the Investors’ management team and members Maintain website sections for investors’ relation & Replied to 10 inquiries from investors and Continue to maintain good com- of the board of directors and Relation stakeholders, reply inquiries of institutional inves- analysts(via telephone calls or emails) munication with investors. supervisors shall be updated tors and road shows. within 2 days of the change. Continue to strengthen corporate Enhance Top 5% of the Corporate Gover- Completion of self-assessment of corporate The 5th Top 5% of the Corporate Governance governance, participate in corpo- Corporate nance Evaluation among the governance evaluation, review of unscored ques- Evaluation among the TSE listed companies rate governance-related evalua- Governance TWSE listed companies tions for improvement. tions, and strengthen corporate governance systems. Reinforce Hold 6 Board of Directors Meet- Hold 6 Board of Directors Meetings throughout In 2019, a total of 6 board meetings were held and Schemes ings throughout the year and Continue to implement the the year and one annual Shareholders Meeting in passed 34 resolutions. of Board of one Shareholders Meeting in schemes of the board of directors Economic Directors and June every year. One shareholders meeting of was held in 2019 and and shareholders' meetings. Perfor- Shareholders June every year. passed 7 resolutions. mance Amplify One average, Store Development and Purchasing In 2019 there were 39 meetings by 8 functional & Scheme of Continue to amplify scheme of 36 meetings by the 8 functional Committee will be held monthly. The remaining committees and passed 96 resolutions (excluding Functional Functional Committees. Corpo- committees six committees are usually twice a year. reporting agendas). rate Committees Gover- Continue to nance expand new stores North of Hsinchu and Taichung City areas are the As of December 31, 2019 the total number of Continue to expand stores network and renew existing A total of 290 stores target location (the metropolitan and traffic flow stores is 275 and market coverage. lease, expand as the main factors). market share

Plan at least one member-only New Product Appraisal /Members’ Testing/Course event every quarter. Continue to uplift member manage- Membership Priority Experience The number of members in 2019 exceeded 850 Member exclusive gift development and maintain good interaction Management Member rewards activities/Specials discounts for thousands. Eco- ment, at least one item per with members. Affiliates/In-depth cultural tour nomic season." Single store promotion plan (low season gathering The number of loss-making stores decreased by 2 Increase Sales Increase the sales of each kind activities/regional media communication, and the amount of losses decreased by NTD$ Continue to increase the sales of of Each Store of stores. specialty product development and local event 2.18 million. each store. planning, seasonal goods/event proposals) Quickly develop new products to New Product Development Develop 56 new products Implement according to the annual product planning In 2019, 63 new products were launched. respond to market demand based on market analysis and trends. Develop Regional Develop products according to taste, portion size, Develop functional products and Develop 3~4 products In 2019, 15 regional products were launched. Specialty Product eating habits, regional or special regions products corresponding to different target groups. In 2019, a total of 3 items of vegetable products Continue to update the usual prod- Renew Usual Develop new burger bread, new Implement according to the annual product were developed, including Magic Burger, Natsumi ucts, adjust the packaging specifi- Products rice bread, vegetable products. cations of some ingredients, adjust planning Magic Burger, and Colorful Vegetable Salad. the amount of mayonnaise and egg 1 new burger bread (Italian baguette) luanched in Q2. Product salad to make meal more healthy. & Useof 5 to 6 kinds of local Strengthen product marketing, including advertising Local Use seasonal materials according to the annual and promotion etc. Service Ingredients vegetables, fruits, cereals and Continue to use local ingredients meat. product planning Promote local ingredients and assist small farmers Innovation in marketing. Through collection of paper surveys, sorted feed- Customer In 2019, the goal was reached, with an average Continue to improve customer Customer Satisfcation Scores backs, analyzed suggestions, and reported to Satisfcation ＞87.5 score of 87.25 points. satisfaction. relevant units for reference

Customer feedback contact and track. In 2019, the target was achieved, with an average Customer Customer Complaint Rate Continue to reduce customer com- Consolidate customer opinions on cloud system timely complaint rate of 0.0003%. Complaint <0.008% Report to relevant units for research. plaint rate.

Covert Customer Covert Customer Evaluation Undertake Covert Customer Evaluation In 2019, the goal is reached, with an average score Continue the covert Customer Evaluation Scores ＞90 points of 90.56 points. Evaluation Plan. Improve thermal storage and reflective strips of Food Delivery Increase food delivery revenue Cooperation across different industries to estab- delivery bags to ensure the safety of personnel and Expand the delivery area. Service lish delivery fleet 3rd patrty delivery service is also available.

MOS CSR Report 25 4 Sustainable Governance & Local Touch

4.1 Sustain Governance Because of the ever-changing business environment, whether because of natural disasters, climate change, trade barriers, or other factors, problems in any phase may have a major impact on our operations. An-Shin Food emphasizes transparency and honest corporate governance while paying attention to shareholders' rights and interests, knowing that a sound and efficient board of directors is the foundation of good corporate governance. In the company's overall strategy of promoting sustainable development, the board of directors play a role of supervision and guidance. The convener of the annual corporate social responsibility committee reports to the board of directors on the results of the year's implementation. Only by continuously strengthening the effectiveness and resilience of sustainable governance can an enterprise be prepared to face any challenges in the future.

4.1.1 Board of Directors GRI 102-18 GRI 102-19 GRI 102-20 GRI 102-22 GRI 102-23 GRI 102-24 GRI 102-25 GRI 102-26 GRI 102-27 GRI 102-28 GRI 102-32 GRI 102-33 GRI 102-34 GRI 102-38 GRI 102-39 GRI 405-1

The Board of Directors is the highest decision-making body in the company's operation. Industry with a background in IT. Finally, Independent Director Lai, was the former Head The Board of Directors Meeting is held at least once a quarter and at least six times a of Bureau of Tourism Taipei, and highly knowledgeable on the topic of tourism. This brief year. In accordance with the "Regulations Governing Procedure for Board of Directors introduction demonstrates that our BOD comes from a variety of professional fields and Meetings of Public Companies," the "Rules of Procedure for Board of Directors Meet- can use their experiences to advise our company and enhance our performance. The ings" was established as the guiding principle of the board's discussion procedures with economic, environmental, and social issues related to corporate governance are super- a principle of directors' interest avoidance. The board of directors is formulated accord- vised by senior executives or directly delegated to the relevant units. The overall ing to the "Corporate Governance Best Practice Principles for TWSE Listed Compa- economic performance is the responsibility of the CEO and regularly report to the board nies," which elaborates on basic conditions, professional knowledge, and necessary of directors. skills for its own operation, operation type and development needs. Among the members of the 10th Board of Directors, we have 2 female directors and 4 Japanese directors. Chairman Lin, President Kao, and Director Shirley Huang hold professions in risk management, business operation and planning. Director Takifuka, Director Fukumitsu, and Director Maehara are all professionals in international business. Director Lee has an extensive background in finance and banking as the former president of the Bank of Taiwan. Independent Director Gong is the former vice CEO of the Institute for Information

Table 4-1. Frequency and Attendance Rate of Board of Directors Meeting

Year 2017 2018 2019

BOD Meetings Frequency (times) 7 6 6

Overall Attendance Rate directors(%) 94.91 98.15 98.15

Indepenent Directors Attendance Rate 100 94.44 94.44 directors(%) Corporate Governance Best Practice Principles

Figure4-1. 2019 Board of Directors Meeting

26 MOS CSR Report 4 Sustainable Governance & Local Touch

Directors with Tenure of Independent Tenure of Directors General 22％ employee Directors Directors, 5 23％ status,

2 Categorization 3 of Directors 1 1 Female 33％ Directors 22％ (including independent Below Below Above 60-69 Below director), Independent 3 years 9 years 70 60 Directors, Figure 4-3. Tenure of Independent Director Figure 4-4. Age of Directors Figure 4-2. Categorization of Directors

Company Mastering During 2019, An-Shin amended the "Corporate Governance Participation the company's for the goals and Best Practice Principles ", "Company Articles of Associa- BOD tasks tion", " Management Measures of Loan to Other Parties ", Director Internal "Endorsement Guarantee Operation Procedures", " Share BOD Responsi- Repurchase and Transfer to Employees Procedures," Internal Decision Control bilities Control Making Individual "Standard Operations for Dealing with Directors' Require- BOD Quality Directors ments," and other regulatory procedures. An-Shin is to Evaluations "practice corporate governance" and enhance the efficiency Evaluations of the Board. The board of directors has approved the "BOD Profession Company performance evaluation", which apply to not only the BOD, & Continuous Participation BOD Director for the & functional committees (including Remuneration Commit- BOD Election Constitution Training BOD tee), but also to individual directors as well. After evalua- and nternal and Relations Continuous Structure tions, in February of 2020, a report will be submitted by the Training and Communi- Remuneration Committee to the BOD.The report gave our cations BOD a evaluation of significantly better than standard. Figure 4-5. BOD Evaluations Figure 4-6. Individual Directors Evaluations

Procedures for Self-Evaluation or 2019 Rules of Procedures Company Regulations Regulations Regulations Election of Peer Evaluation of Resolutions Procedure for for Handling Articles of Governing the Governing Loaning Governing Making Directors and the Board of of BOD Shareholders Material Inside Association Acquisition of Funds of Endorsements/ Supervisors Directors Meetings Information and Disposal Guarantees of Assets MOS CSR Report 27 4 Sustainable Governance & Local Touch

Table 4-2. Board of Directors

Nationality Job Title Name Gender Major Experience and Education

Lin, PhD., Civil Engineering, University of Washington Chairman Chien-Yuan Male Professor, Graduate Institute of Building and Planning, National Taiwan University

Kao, Master’s Degree, Graduate Institute of Technology Management, Kaohsiung Polytechnic Institute Male Bachelor, Department of Industrial Engineering, Tunghai University Director Shun-Hsing Executive Vice President, Royal Host Taiwan Co., Ltd

Huang, Bachelor, Department of Psychology, International Christian University Director Female Shirley Chairman, ABC Cooking Studio Taiwan Co., Ltd.

Hironobu Tsubasa Sōgō High School Director Male Maehara 株式会社モスフードサービス国際行銷部長兼国際營業GL

Fukumitsu Bachelor of Economics, Soka University Director Male Akio 株式会社モスフードサービス国際営業部長

Bachelor of Food Business, Department of Agriculture and Veterinary Medicine, Nihon University Takifuka Director Male 株式会社モスフードサービス執行役員 Jun 国際本部長兼国際営業部長

PhD., Department of Economics, University of Pittsburgh President, Bank of Taiwan Lee, Independent Male Consultant, Taishin Financial Holding Co., Ltd. Director General of Department of Economic Research, Director Sheng-Yan Chairman and President, The Export-Import Bank of the Republic of China Central Bank of the Republic of China(Taiwan)

Gong, PhD. of Business Administration, Macau University of Science and Technology Administrator, Foreseeing Innovative New Digiservices Independent Male Reng-Weng College of Business, Stanford University Expert at Institute for Information Industry Director Deputy Chief Executive, Institute for Information Industry

Master Degree, Department of Management Science, National Chiao Tung University President, Taiwan Visitors Association Independent Lai, Female Director-General, Tourism Bureau Director Seh-Jen Chairman, China Pacific Catering Services

Huang, Honorary Doctorate, Chang Jung Christian University Department of Economics, Keio University Male Supervisor Mao-Hsiung Master’s Degree, University of Pennsylvania Chairman, TECO Electric and Machinery Co., Ltd.

Jang, Enterprise Economic Research, University of Cologne Consultant, Chief Secretary of the Board of Directors, Male Department of German Language and Culture, Chinese Culture University Supervisor Fritz J. C. TECO Electric and Machinery Co., Ltd. Secretary General, Chinese National Association of Industry and Commerce, Taiwan Consultant, Frankfurt office, Bank of Taiwan

Yue, Supervisor Chao-Tang Male Master’s Degree, Department of Accounting, National Chengchi University Chairman, Ernst & Young (EY)

28 MOS CSR Report 4 Sustainable Governance & Local Touch

Internal Audit Management An-Shin has a profound BOD system, including corporate governance, internal audits, and independent directors. Independent directors, internal auditors and third-party accountants have direct communication (through telephone, E-mail, instant messaging etc.) with our management, allowing for efficient audits and monitoring. Independent directors receive monthly audit reports, and provide feedback for management. They also hold their own private meetings when necessary. There were 4 Audit Meetings in 2019 to discuss and understand company operations and audits. Our company auditors also form reports at every BOD Meeting (including pre-board meetings ). As seen in An-Shin’s detailed BOD system, which allows efficient communication, our independent directors are constantly updated and can provide viable feedback. In 2019 An-Shin’s third-party accountants hold 2 meetings with corporate governance unit to discuss audit result, updates or regulations change. Organization and Operation of Internal Audit Compensation for Directors and Supervisors Director and Supervisor Training Compensation for directors and supervisors are listed in Table 4-3. Compensations are decided based Although An-Shin has a diverse Board of Directors and Supervisors, on position, responsibilities, contributions with reference to industry averages. Other company training is still required by law to allow these officials to remain compensations were also taken into consideration when developing An-Shin’ s compensation rates. competent and updated on industry advancements and new Article #20 states that when there is profit, 5% must be reserved for compensation. The relevant changes to regulations. In 2019, a total of 12 officials attended the performance evaluation and the rationality of remuneration are reviewed by the Remuneration Com- training with a total of 92 hours, and an average of 7.7 hours per mittee and the BOD, and is reviewed at any time according to the actual operating conditions to person. In order to improve corporate governance, An-Shin will set achieve a balance between sustainable operation and risk control. The proportion of An-Shin's direc- up Audit Committee to replace the supervisors in 2020. tors and supervisors' emoluments of net profit after tax in 2019 is slightly lower than that in 2018, mainly due to a slight increase in net income after tax in 2019.

Table 4-3. Director Compensation Categories

Position Names Item units 2017 2018 2019

Chairman Lin, Chien-Yuan remuneration(A) thousands 8,882 8,758 8,736 Table 4-5. Training Hour Breakdown pension(B) thousands - - - Independent Gong, Reng-Weng 2017 2018 2019 Director Compensation Director compensation(C) thousands 8,353 7,139 7,175 Position Names Training Training Training Independent Lai, Seh-Jen Director package Business expenses(D) thousands 1,049 961 973 hours hours hours Independent Lee, Sheng-Yan 、、 Director A B C and D total percentage of net income(%) % 10.84 11.99 10.43 Chairman Lin Chien-Yuan 6 9 6 Hironobu Maehara Director thousands Independent Gong Reng-Weng 15 12 13 (Note 1) Salary and Bonuses, and special fees (E) 4,262 5,182 5,007 Director Director Fukumitsu Akio Independent Lai Seh-Jen 12 6 9 Company Pension(F) thousands 108 108 108 Director Director Takifuka Jun Employee Independent Li Sheng-Yan 6 12 7 Director Salary (*) 346 366 366 Director Huang, Shirley Employee compensation (G) thousands Director Ando Yoshinori - 12 Resigned A, B, C, D, E, F and G total percentage of Director Hironobu Maehara - - 12 Director Kao, Shun-Hsing % 13.64 16.01 13.81 (Note 1) net income (%)（%） Director Fukumitsu Akio 6 6 6 (Note 1) Effective April 2st,2019: Mr. Maehara has replaced Mr. Ando as the Japanese Director representative. Director Takifuka Jun 6 6 6

Table 4-4. Supervisor Compensation Categories Director Huang Shirley 6 6 6 Director Kao Shun-Hsing 6 6 6 Position Name Item units 2017 2018 2019 Supervisor Huang Mao-Hsiung 9 9 6 Supervisor Huang Mao-Hsiung remuneration(A) thousands 2,598 2,436 2,436 Supervisor Yao Chao-Tang 7 10 9 Supervisor Jang J.C. Fritz compensation(B) thousands 821 1,020 1,025 Supervisor Jang J.C. Fitz 6 6 6 Supervisor Yue Chao-Tang Business expenses(C) thousands 371 407 437 A, B and C total percentage of net income (%) thousands 2.25 2.75 2.41

MOS CSR Report 29 4 Sustainable Governance & Local Touch

4.1.2 Functional Committee GRI 102-11 GRI 102-18 GRI 102-22 GRI 102-27 GRI 102-30 GRI 102-32 GRI 102-34 GRI 102-35 GRI 102-36 GRI 102-37 In 2019 all 53 indicators within the functional committee achieved highly satisfactory performances in evaluations. As the industry evolves, these committees monitor our strategy in alignment to new trends, while analyzing risk management, and evaluating performance. The relevant risk types, risk control methods and responsible units are as follows:

Table 4-6. Functional Committee 2017 2018 2019 ESG Responsible Unit Risk Type Risk Management Meeting Attenrad- Meeting Attenrad- Meeting Attenrad- times taence Rate times taence Rate times taence Rate

New Store Develop- New Store Operations Risk-Store New store plan evaluations, or approve Location and Operations Manage- discontinuing store operations 11 75 11 96 10 87 ment Committee ment

Operations and Management Management Assist management, operations and 5 100 5 94 6 94 Risk (Operation Performance audits Committee and System Improvement)

Economic Investment risks on financial Finance Help to build financial plans and evaluate 3 92 3 100 2 100 instruments, real estate, and costs and benefits for investment Committee cash management

Smart Assist to face changes in the development Unable to keep up with techno- Technology of the virtual market such as Internet, 2 88 3 91 4 92 logical advancements mobile communications, and technology Committee

Assist to review and evaluate the com- Remuneration Salary and Benefit Policy pany's overall compensation and related 5 100 3 100 5 100 Committee welfare policies Social Human Resources Cope with future operation growth by Lack of Labor including automations and machine 4 100 3 89 3 100 Development equipment, systematic training and career Committee planning

CSR Sustainable Operation and Risk Assist in operation risk evaluations and 3 92 3 94 3 94 Committee Management propose strategies to cope with future risk Environ- mental Climate change, market fluctua- Purchasing ( Pre-evaluate suppliers and material price tions efficient and high-quality 10 93 6 94 6 100 Committee purchasing of materials with low quotations costs)

30 MOS CSR Report 4 Sustainable Governance & Local Touch

Besides the functional committee and Auditor’s Office to manage and control risks, Remuneration Committee An-Shin internally set up "Risk Management Procedures" and "Crisis Management An-Shin has a salary bonus system with incentives and work rules that clearly standard- Procedures and BCP " to increase crisis awareness and enhance risk management izes reward and punishment guidelines. Each employee's performance is the basis for scheme. We also push business units to be responsible for pre-prevention, emergency promotions, department transfers, remunerations, bonus distributions, and training handling after the incident, follow-up review and development of preventive measures, session assignments. The remuneration and promotion system will be reviewed regularly strengthen internal control system and related business implementation. through the Remuneration Committee and an objective review will be conducted in conjunction with the People's Appraisal Committee. Article 20 of An-Shin Articles of Association also states that “if there is profit in the company's annual year, 1~2% should be reserved for employees”. In 2019, the Remuneration Committee elected the independent director Lai She-Jen as the convener, and directors Gong Reng-Weng and Li Sheng-Yan as independent members. In 2019, the committee held 5 meetings, with Source management of raw materials, average personal attendance rates of 100%, and a total of 10 proposals on salary and enhancement of product processes, and compensation were discussed. strengthening of supplier evaluation

CSR Committee Prevention In response to CSR regulations issued by the government legislation, An-Shin formed Management the CSR Committee in 2014. In 2018, Director Gong was elected as the head and Huang Mao-Hsiung, Yao Chao-Tang, and Jang J.C. Fitz made up of the rest of the committee. They supervise An-Shin’s sustainable performance and review future prospects for the company. In 2019 there were 3 CSR committee meetings, with high attendance rates of 94%. The CSR Task Force executes CSR strategy and submits periodical reports to the BOD, and is combrised of: supplier management, corporate governance, brand marketing, environmental protection, employee wellness, and social welfare. There is a page on An-Shin’s website dedicated to the CSR to communicate related information to our Emergency stakeholders. In addition to our internal audit system, our drafted CSR report is Post Review approved by the committee, and further audited by third party accountants. In 2019, Problem- An-Shin advanced to the Medium-sized Enterprises Competition for the first time, Meeting solving ranked 12th and the only award-winning catering service company in the group awarded by the Excellence in Corporate Social Responsibility of Commonwealth Magazine Group. Also, the TCSA recognized An-Shin with 3 awards including: Top 50 companies in CSR performance, a gold prize for the CSR report, and an outstanding supply chain achievement for 2 consecutive years. Our corporate governance is within the top 5% of Record and Report the Urgent meeting and the TWSE Listed Companies for 4 consecutive years. It is obvious that An-Shins’ incident to the BOD Response to incident sustainable management has won recognition by the society.

MOS CSR Report 31 4 Sustainable Governance & Local Touch

Evolution of Sustainanle Strategy

An-Shin Food’s sustainability strategy has transformed from “corporate social responsi- Table 4-7. Subgroups and Functions of the CSR Task Force bility” into “corporate sustainability management”, to hopes to amplify competitive advantages in all target markets and promote healthy diets to create long-term brand Subgroups Function value. On July 29, 2019, the Corporate Social Responsibility Committee formally Supplier decided that the sustainable strategy is "Safe, Healthy and Sustainable". It aims to Management All issues concerning food safety and supply chain manage- make consumers feel happy, safe, and most importantly satisfied when consuming our ment including planning and operations products. "MOS" stands for the Mountain, Ocean, and Sun and we uphold this by our Corporate initiative to use natural and healthy ingredients to satisfy our consumer’s needs while Governance All issues concerning corporate governance protecting the environment at the same time. Brand Management Company branding and marketing

Mountain Employee Wellness Employee benefits and human rights, training, work place health Ocean and safety.

Sun Environmental Sustainability Sustainable environment, saving energy and reducing carbon footprint.

Social Welfare Social welfare projects (donations, food education, etc.) Board of Directors Dire

An-Shin CSR Committee External Training (hours) Chairman: Gong Reng-Weng Independent Director 63

38 CSR Task Force Head: President Kao General 20 Manager 8 Secretary

2017 2018 2019

Figure 4-8. External Training Hours of CSR Task Force Supplier Corporate Brand Environmental Employee Social Management Governance Management Sustainability Wellness Welfare Group Groupe Group Group Group Group

Corporate Social Figure 4-7. CSR Committee Organization Chart Responsibility Best Practice Principles

32 MOS CSR Report 4 Sustainable Governance & Local Touch

Published the first CSR report Important Excellence in CSR Little Giant No. 7 awarded by CW Group Published the 5th CSR report TCSA CSR Report Bronze Award Published the 1st CSR report in English Milestone CSR Committee established Advance to the Medium-sized Enterprises Competition for the 1st Amended Corporate Social Responsibility Best Practice first time, awarded by CW Group, ranked 12th and the only Principles award-winning catering service company in the group Formulated the CSRCommittee’s organization and rules TCSA Top 50 Corporate Sustainability Award, Best Perfor- mance Award of Supply Chain Management, and Corporate Published the 3rd CSR report Sustainability Report Gold Award Excellence in CSR Little Giant No. 5 awarded by CW Group TCSA CSR Report Silver Award

Since 2014 2015 2016 2017 2018 2019

Published the 2nd CSR report Published the 4th CSR report TCSA CSR Report Bronze Award 2018 CSR Exemplary Practices 2nd Amended Corporate Social awarded by Kenting National Park Preparation for CSR Committee Responsibility Best Practice Excellence in CSR Little Giant No. 4 Formulated Corporate Social Principles awarded by CW Group Responsibility Best Practice TCSA Top 50 Corporate Sustainability Principles Award, Best Performance Award of Supply Chain Management, and Corporate Sustainability Report Gold Award

Learning from Benchmark Excellence Column Safety, Health and Sustainability Column Practice-Brand and Sustainability An-Shin Lecture Series is one of the multi-learning channels for supervi- In addition to pursuing excellence, An-Shin also learns from benchmark sors and mangers. On August 28, 2019, we specially arranged the theme excellence practice in other industries. We invited the lecturer of Cathay of "Safety, Health and Sustainability", with 71 participants. President Kao Financial Holdings to share their experience. Cathay Financial has won elaborated the sustainability policy and our performance in the economic, the Top 10 CSR Award in the large enterprises group by CW Group for 6 consecutive years. Cathay follows its corporate value of “Happiness social and environmental aspects to encourage all partners to dedicate to Rediscovery” and is enthusiastic to share how they continue to create sustainable development. long-term value in the environment and society.

Figure 4-9. Safety, Health Figure 4-10. Safety, Health and Figure 4-11. Brand and Figure 4-12. Lecturer Liao and and Sustainability Lecture Sustainability Lecture Sustainability Chairman Lin

MOS CSR Report 33 4 Sustainable Governance & Local Touch

Award An-Shin actively participates in the competition of sustainable development awards. Not only does it hope to and share sustainable performance with stakeholders, but also looks forward to receiving feedback from the contest Recognition 2019 evaluation and improve internal scheme. In 2019, An-Shin won recognitions as follows: TCSA Top 50 Corporate Sustainability Award, Best Performance Award of Supply Chain Man- 1111 "Top 10 Employee Top 5% of Cor porate Gov- MOS Burger and Chiayi Yilan County GHP agement, and the CSR Happiness Vote Survey "of ernance Evaluation among County work towards the Excellence on page 76 Report Gold Award for 2 restaurant Industry TWSE listed companies for environmental protection consecutive years 4 consecutive years and reduce usage of For seven consecutive years, Green Recycle plastic straws Store Award by New Taipei City Environmental Protection Bureau on page 73 The Food Waste Reduction Award by the Minis- try of Health and Welfare on page 71

Love Earth: Local Street Sweeping, please refer to p.110

March April May June July August September November December

Recognized 6th TCFA Best Staff 2019 Gold Award, The Best Ser- Advance to the Top Buying Power of the TCFA Outstanding Popular Breakfast Supplier vice in Taiwan by China Times Medium-sized New Product and Service of Store Manger Award by the Food Power Group Enterprises Com- the Social Innovation Pur- Award and meet petition for the first chase Reward Program for 3 with President Tsai time, awarded by consecutive years CW Group, ranked 12th and the only award-winning 3rd Taipei Employ- catering service ment Service company in the Award group October Hsinchu County Government Food GHP Excellence in Kaohsiung City, Changhua County, Yunlin County, Sanitation & Safety Mark, see Chiayi County, etc. see page 76 page 76

34 MOS CSR Report 4 Sustainable Governance & Local Touch

4.1.3 External Associations List GRI 102-13 4.1.4 Government Subsidies GRI 201-4 An-Shin also participates in various external associations to promote industry development An-Shin promotes employment, recruiting young, middle-age and returning workers, showing our integrity in corporate responsibilities. (Note: An-Shin only participates actively participating in innovation and talent development program, and supporting local in these associations with membership fees, and does not act as a sponsor.) produce. The subsidy amount encompassing the Work force Development Agency- Ministry of Labor, Employment Service Office, Agriculture and Food Agency Council of Table 4-8. 2019 Participation in External Associations Agriculture, combined to a total subsidy amount of: $NT 2,544 thousands. Number In Com- Strategic Association articles、regulations of Mem- mittee Member- bers: (Yes/No) ship Table 4-9. Government Subsidies

Upholding the philosophy that "Peers Items Programs Unit 2017 2018 2019 TCFA (Taiwan aren’ t your enemies, and you can learn Chain Stores from different industries," regardless of and Franchise 2 No No your industry, if you have the same Innovation Innovation, R&d, and new NTD$ Association) - - 96 mindset you can join TCFA. Service service thousands

Promote academic research in internal Dual-track training pro- The Institute of audits and strengthen connections with gram, youth employment Talent NTD$ Internal Auditors- international internal audit associations. 1 No No pilot program, corporate 1,816 650 353 Development thousands Chinese Taiwan Assist enterprises to improve business training subsidies, employ- management. ment awards

Supply Man- Promoting the professionalism of pur- Local Specialty Rice Product NTD$ 1,714 1,905 2,095 agement Insti- chasing practices, assisting is and Produce Competition thousands tute, Taiwan establishing the standard operations 1 No No procedures for public/private sectors NTD$ 3,530 2,555 2,544 and fostering academic research within Total thousands global purchasing/supply disciplines. Assist Taiwan's industrial and commer- Chinese East cial organizations and corporate members to establish a platform for coop- 1 Chairman Asia Economic (Chairman) Yes Huang Association eration and enhance relations between Taiwan and Japan and other East Asian countries.

Taiwan-India To expand economic and trade devel- 1 Chairman Business opment between Taiwan and India, and Yes (Chairman) Huang Association constructing the most effective platform for trade relations. Taiwan-Turkey To enhance trade relations between Business 1 Chairman Taiwan and Turkey Yes Association (Chairman) Huang Through the joint efforts of industry, Taiwan Smart 1 government, and research, we assist (Chairman Chairman City Associa- Yes cities in proposing smart city planning and Group Lin tion and sustainability. Membership)

1. Promote sanitary experience. 2. Improve the quality of living environ- Taiwan Toilet ment. 4 No No Association 3. Discuss bathroom equipment technology.

MOS CSR Report 35 4 Sustainable Governance & Local Touch 4.2 Signature Product GRI 102-2 2019 An-Shin combines our competitive advantages-specialty of local produce with the variety of foods and drinks we offer. In 2019, we continued to use local ingredients, launch new breakfast breads, develop more special offers, and expand home prepared meal options, while further increasing vegetable food products.

Mass Adoption of Taiwanese Ingredients New Breakfast Bread We used local Taiwanese ingredients such as rice, red The "Italian Bread" has a new taste and quinoa, sweet potato, and Alishan coffee beans to flavor. At the same time, we also launched develop products. At the same time, we also joined the a series of "Exotic Cuisine Fusion" to meet reward plan by the Rice Innovation Plan of Agriculture consumers' expectations of "delicious, and Food Agency, Council of Agriculture to help rice diverse, and fresh" diet. consumption.

Upgrades of Spcial Products Home Prepared Meal Vegetable Food An-Shin provides customers with With the evolution of the With the advancement of more flavor and fun choices, economy, easy-to-access and food technology and the such as international MOS easy-to-cook foods have increasing vegetarians’ Burger products in overseas become popular in e-commerce needs, An-Shin had great market and specialty products in and gift sales. Our best-selling progress on development of the Taiwan market. rice burgers are processed by plant-based products. We special techniques to froze and launched the nutritious and allow customers to easily enjoy delicious plant-based pat- at home. ties and oat milk in order to expand vegetable food products choice.

36 MOS CSR Report 4 Sustainable Governance & Local Touch

4.3 Product Development and Innovation To meet the changing needs of customers, we formulate plans and schedules for In 2019, we developed various products based fusion of international cuisines and local product development based on the timing, seasons and market trends, and offer food produce. Our goal for 2020 will be the renovation of breakfast offers, the use of special with healthy and safe, fresh and delicious, high-quality ingredients. With inspiration of ingredients, producing items for special diets, and updating product designs to fit with seasonal produce, traceability and local fusion, we make food to attract different target changing customer needs and market trends. To maintain An-Shin Food's differentiated groups. market position and ensure competitive advantage, we allocate a different percentage of our budget to R&D, depending on the projected growth of the funded projects. In 2019, NTD$ 6.22 million is invested in R&D, and in 2020, it is expected to invest about NTD$ We sold 38,454thousand main courses, 6.36 million.

26,248 thousand snack dishes, Table 4-10. Input for research and development 34,324 thousand drinks and soups, Year Unit 2017 2018 2019

and 11,790 thousands of other prod- Research and development NTD$ 5,765 6,024 6,216 (Note 2) thousands ucts in 2019. NTD$ 4,919,312 5,252,104 5,484,492 Consolidated sales thousands As a % of consolidated sales % 0.12 0.11 0.11

(Note 2) R&D expenses including Taiwan (making up 99% of total) and other areas.

4.3.1Develop Healthy and Safe Products

An-Shin offers meal ser- Main Courses Snack Drinks & Soups Others vices listed below: Burgers, rice burgers, Chicken nuggets, chips, Soft drinks, juice, milk, Gift set, souvenirs and hot dogs, sandwiches salads, konnyaku (jello), soup, coffee etc. MOS Card etc. etc. desserts etc.

4.3.2 Initiatives for New Products Process of New product Development: An-shin offers hearty service and delicious meals, and is dedicated to healthy food; blend- Proposal Product Confirm Training ing quality materials and exotic cuisine with sea- Draft Material Finalize Records and Testing Product and sonal produce to create fusion-style gourmet Annual Safety Purchasing cost and of devel- Materials and Specifi- terms Introduction Plan Check proposal opment dishes. Surveyr Revisions cation to Stores

MOS CSR Report 37 4 Sustainable Governance & Local Touch

4.3.3 New Product Sale In 2019, the new product development plan still uses sea- New Product Introduction & Training sonal ingredients but to use them different and innovative Before the new product is officially introduced every ways. Since the breakfast market is fiercely competitive, month, the district supervisors will attend a new product new Italian-style bread was introduced. To cater for con- introduction course. In 2019, a total of 353 people were sumers who love sides and snacks, An-Shin introduced new trained in the new product introduction course. At the seafood snacks, fried chicken, sweet pie. We also worked same time, Dept. of Operation Training also uploaded with government’ s rice specialty plans to launch Italian Beef the new product manual on E-Learning platform to allow Rice Noodle Buns, Curry Croquette Rice Noodle Buns, for download and learning. Purple Potato & Sweet Taro Rice Pie, and Rice Mousse Cake. At MOS Burger 312 Birthday Celebration, An-Shin launched the products "Sunrise Yakiniku Rice Burger" and "Fried Shrimp Rice Burger", to bring the delicacy of the Japanese gourmet to our Taiwan customers.

Figure 4-13. New Product Introduction Figure 4-14. New Product Training Figure 4-15. New Product Practice

Table 4-11. New Product Sale

2017 2018 2019

Sales Sales Sales Sales Sales Sales revenue revenue revenue New item volume ％％ item volume ％％ item volume ％％ ($NT ($NT ($NT Product (thousands) (thousands) (thousands) thousands) thousands) thousands)

Main course 29 8,426 7.82 593,177 12.06 23 3,328 2.92 247,279 4.71 22 3,044 2.75 254,839 4.65

Snack 24 521 0.48 33,400 0.68 15 615 0.54 32,757 0.62 17 424 0.38 23,561 0.43

Drink & Soup 25 1,194 1.11 71,136 1.45 22 2,361 2.07 126,388 2.41 17 1,005 0.91 65,687 1.20

others 13 62 0.06 7,179 0.15 13 37 0.03 8,345 0.16 8 31 0.03 4,689 0.09

total 91 10,203 9.47 704,892 14.33 72 6,341 5.57 414,769 7.90 64 4,504 4.07 348,776 6.37

38 MOS CSR Report 4 Sustainable Governance & Local Touch

Partners of An-shin were trained frequently to learn industry trends, update cooking techniques, refresh their service mindsets, adopt new technology and undertake market research to gain insight of customer preference. In addition, MOS Burger Japan will occasionally visit and exchange opinions.

Column Membership Management-In-depth Column Service Quality Toilet Experience at Taitung Courtesy MOS Burger sponsored a 3-day tour of Taitung and invited 22 MOS The restroom is a part of the dining environ- members to experience the beauty of the East Taiwan. MOS Burger ment, and also an important indicator of the supports the local economy by using local ingredients of Taitung- management status of a store. The layout of Red Quinoa and Roselle Flower to develop burger bread, drinks and the restroom can show the degree of inti- gift merchandises. At the Taimali Café, members can experience DIY macy of the store, and the its cleanliness Figure 4-17. Figure 4-19. coffee making, including pounding, shelling, picking, roasting and Indigenous Life level can show the attitude of a store and Toilet Courtesy Course tasting beans. At Chihshang Farmers' Association members experi- Experience their employees. Figure enced the process of rice milling, which allows visitors to have a In 2019, Chairman Huang of the Taiwan deeper understanding of Taiwan's local specialty agricultural prod- Toilet Association was invited to share the ucts. During the journey, you can experi- "Toilet Culture and Property Management" ence the indigenous dance performance, with us to promote international sanitation pound the mochi, enjoy the local flavor standards and create a comfortable toilet meal and personally weave the indigenous environment. Participants are taught how to bag, and learn about the local aboriginal properly clean the toilet and share the life. The activity are only one of many cleaning method with staffs, and provide demonstrations of An-Shin’ s support for 4-18. better environment to customers. Figure 4-20. local community and link with nature. Figure 4-16. Indigenous Life Lecturer Huang and Chairman Lin Tour Group Photo Experience

Column Service Upgrade Project-Kitchen Display Column Service Upgrade Project-Multiple Payments & Table Ordering

To accelerate the speed of meal service, improve consumption satisfaction, An-Shin Food is constantly pursuing good ser- and prevent missing orders, 16 stores introduced the kitchen's new of KD vice quality. Therefore, we began to build a (Kitchen Display) in 2018. In 2019, a total of 42 stores have been installed, and table ordering system to accelerate the speed the overall meal delivery time, has changed from 12~15 minutes or more to of serving and improve consumer services. At 8~10 minutes. Meanwhile HDC scores of imported stores is increased by an present, 49 stores had this new service, which average of 1.31 points over the same period. has greatly reduced the waiting time at cashiers. The HDC scores of installed stores have increased by an average of 0.7 points over the same period.

Figure 4-23. Multiple Payment Options Figure 4-21. 4-22. Figure 4-24. Table Ordering Kitchen Display in Control Area Kitchen Display in Kitchen Area Figure

MOS CSR Report 39 4 Sustainable Governance & Local Touch

4.4 Customer Feedback and Analysis Customer Aside from offering products, we also offer quality service and listen to customer feedback (complaint/inquiry/compliment/feedback etc.) to constantly improve. We have various feedback channels, such as email, MOS ORDER APP, 0800 telephone hotline, customer survey forms, and our call center (Figure 4-26), Phone Number E-mail More customers prefering to use mobile APPs or web pages instead the phone to make 0800 inquiries (Figure 4-27). An-Shin has established a consumer complaint handling mechanism (Figure 4-25), properly identify the problems and request relevant departments to improve or change their operation. We desgined our platform to allow easy management Feedback record of cutomer’s submissions and timely replies in an efficient maner. The number of stores in 2019 has accumulated to 275, an increase of 13 from that of 2018. In 2019, a total of 15,241 customer comments were received, an increase of 893 Feedback Timely response Response plan (store number/gift/promotion etc.) from that of 2018. Customer comments are divided into five categories (Figure 4-28). Among them, "service process/attitude", "production quality", and "waiting for a long time" are the most common ones (Figure 4-29). For each feedback, the store that received Situational judgement it analyzes the complaint, proposes preventive measures, and finalized the case after confirming by the unit supervisor. In order to continuously improve the service quality, we also Significant events share and discuss the actual cases with store partners to improve our services and Store Manager Division (assistance from Public Relations/Quality increase customer satisfaction. response Head/SV Assurance/Legal Compliance Dept)

Final report given to store and case closed

Figure 4-25. Customer Feedback Flow

Survey Product Quality, Survey, call center, Form Feedback, Compliant, 11.67% 0.14% 0.04% 6,141 3,938 Website FB and Service maibox Toll-free number Process, Various 12.62% 0800 , Others Others, platforms 31.40% (in-person/ 53.07% in-store), Toll-free In-person 0.1% Long 0800- Wait-time, 208-128 9.96% Call Center Compliment, 02-449 333 Service 2626 E-mail 68.32% Suggestion, Attitude, 796 Inquiry, Environmental 10.70% 4,033 Sanitation, 1.98%

Figure 4-26. Customer Feedback Platforms Figure 4-27. Feedback Sources in 2019 Figure 4-28. Categorized Feedback in 2019 Figure 4-29. Categorized Complaints in 2019

40 MOS CSR Report 4 Sustainable Governance & Local Touch

4.5 Customer Satisfaction Survey An-Shin puts a big emphasis on customer service and works to ensure all customers are satisfied. Other than the website, we have customer surveys and feedback Very Satisfied Satisfied forms that our clerk can distribute to our customerr. A minimum of 30 forms shall be collected every month from each chain store. In 2019, a total of 89,938 survey 100% forms (increase 3529 surveys compared with that of 90% last year) were collected and analyzed. In the case that 80% a store does not meet standards for three consecutive 70%

36.91% 37.45% months, a major specialized form will be filled out for 60% 39.32% 36.71% 37.51% 37.87% 35.19% 35.22% 40.86% 40.60% improvement planning. No such forms were issued in 50% 2019 and all goals were met (Table 4-12) with an aver- 40% age score of 84.5. We are planning to transfer the cus- 45.46% 30% tomer feedback system online to reduce paper and 58.69% 59.22% 56.03% 55.58% 56.08% 56.86% 61.34% 50.76% 52.91% 50.82% increase efficiency. The new survey system will be 20% testing in 2020. 10% 25.86% 0% Breakfast Burger Side Dessert Soup Drink Clerk Overall Dinning Restroom Meal Dish Service Service Environ- Cleanlines Service ment Time

Figure 4-30. Customer Feedback Survey Results in 2019

Table 4-12、Scores of Customer Feedback Surveys 0 specialized Year 2017 2018 2019 form were issued in 2019 Scores of Customer Feedback Surveys 87.42 87.42 87.25 The new survey system will be testing in 2020

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4.6 2019 Service Exemplars 2019 Service 2019 Exemplar Service Exemplar

We hope our employees can provide warm and helpful services towards all of our customers, going above and beyond the standard SOPs. Every month, customer compliments are selected and individual employees are recognized as service exemplars. Such events are shared and broadcasted through MOS Life and cel- ebrated. In 2019, there were a total of 333 customer compliments. Greetings with Passion Hearty Service and Warm up Customers

[Jingzhan 2nd Store] Su Zhexian

[Changhua Store] Zhang Xiaojuan

2019 Service 2019 2019 Exemplar Service Service Exemplar Exemplar

100% Smile Honest and Return Care for Customer Needs Lost Money to Customer

[Xizhitaiwu Store] Xu Jiayu [Hsinchu Zhongzheng Store] Tan Jianyou [Beitou Store] Huang Xiuying

42 MOS CSR Report 4 Sustainable Governance & Local Touch 4.7 Innovative Ordering-Multiple Odering GRI 102-2

With the rapid improvements in technology, people's lives are becoming increasingly 1St Taiwan Fast Food Offline/online credit card pay- convenient. In recent years, the number of APP-MOS Order ment offers customers more MOS Order App users has continued to convenient options. increase (Figure 4-31, Figure 4-32) which shows that today's consumers' consump- Kiosks tion habits have changed. Self-service installed in We continue the upgrades and kiosks were also introduced to shorten lines stores tests of food delivery robots. In the future, MOS Burger will con- at the cashier, reduce the ordering time and tinue to actively invest in inno- allow the staff to focus on meal preparation vation to provide better services and other aspects of customer service. Since to our customers. 1998 2016 2017 2019 Cooperate with affiliates to provide food delivery services. In Telephone Plan the the future, we will gradually ordering development expand the scope of delivery 449-2626 & Web of kiosks and the size of the fleet to serve Ordering more customers.

2017 Transaction 2018 Transaction 2019 Transaction 2017 sale 2018 sale 2019zzz sale (Millions) (Millions) (Millions) Counts(Thousands) Counts(Thousands) Counts(Thousands) 4,957 962.20

3,444 3,905 735.47 3,260 668.83 3,139 607.01 606.28 2,676 502.51

1,319 241.68

212 204 413 67.54 96 28 19 174 155 25.38 8.95 6.89 54.40 51.97 44.80 24 449 Web APP Kiosk Total 449 Web APP Kiosk Total Phone Ordering Ordering Ordering Phone Ordering Ordering Ordering Figure 4-31. Order Transaction Count from Multiple Ordering Platforms Figure 4-32. Sales Revenue from Multiple Ordering Platforms

Column Innovative meal delivery service

With the advancement of technology and the transformation of modern diet, the market scale of delivery services has expanded continuously in recent years. Delivery service providers of various platforms have risen, and traditional restaurants also have tried delivery service to expand market base and revenues. An-Shin Food has delivered to take care of customers who are not convenient to go out. We built the delivery fleet with affiliates and tested in Daan, Songshan, Zhongshan Figure 4-33. Figure 4-34. Figure 4-34. Districts of Taipei City. In the future, we will gradually expand the scope of delivery and the scale Deliver to Your Home Cooperation with Logis- App usage teaching of the fleet to serve more customers. tics and Build the Fleet

MOS CSR Report 43 4 Sustainable Governance & Local Touch

4.8 Internal HDCS Audit Table 4-14. Store Types and HDCS Scores HDCS (Hospitality, Delicious, Cleanliness, and Speed) has always been our core value of servicing cus- Level tomers. The Business Audit Department helps to ensure every partner follows the SOPs, with evaluations ABCD E every 2 months. We give immediate feedback during in-store evaluations and changes are implemented as Aspects issues are found. After the evaluation, a formal report is submitted to the manager, supervisor, and division H-Hospitality 34.33 38.28 38.83 39.60 44.10 head. Progress has to be announced within the span of a week and records are kept until the next upcom- D-Delicious 20.60 22.97 23.30 23.76 24.62 ing evaluations for review. In 2019, a total of 1,569 visits were carried out. The overall store average was C-Cleanliness 20.60 11.48 10.19 8.91 9.23 74.63 points, an increase of 0.62 points from 2018. The Operation Management Dept. will also provide HDCS weekly reports to help stores know their rating, track store improvements, and issue reminders to S-Speed 5.15 5.74 5.83 17.82 - prevent abnormal conditions (food safety, quality). For C-level stores that recieve a score of less than 70 Food Hygience 15.45 17.22 17.48 17.82 18.46 points twice in a six-month period, the Business Audit Dept will visit the store manager with the district ISO Management 3.86 4.31 4.37 5.94 3.59 manager to guide the store manager, track the progress and problems that need assistance every month. （Note3）Type A: general stores, T Type B: Department stores (without seating area), Type C: Department stores (without recycling station, with seating area), Table 4-13. HDCS Audits Type D: Department store stores (without recycling station, without seating area) Store HDCS Audit Audit Aspects Frequency

Evaluate HDCS, food safety and Store Visit H D C Cleanliness S ISO Periodical hygiene status of the store, and Every 1,569 80 Visits 2 months 2.91 2.9 3.27 improve the existing problems, and 70 encourage good performance. 2.93 2.62 2.71 1,487 60 11.86 12.03 11.63 1,461 50 14.01 14.16 13.55 HDCS Weekly Report： 40 15.43 15.29 15.61 Timely Improvement 30 Reminders Rankings Tracking 20 2017 2018 2019 27.9 27.4 27.88 Weekly visits and Track the progress Immediate remind- 10 ranking to make of the improve- ers of important Figure 4-36. Periodical Store Visit(Note4) 0 the shop more ment every week, matters to prevent 2017 2018 2019 aware of its current and make sure to abnormal condi- (Note 4) The above statistics excludes the status. complete the tions (food safety, number of in-store counseling Figure 4-37. Periodical Store Visit Scores improvement. quality).

Tbale 4-15. Major Communication Meetings The Business Audit Department reports the quality and status of new product launches, the Meeting Topic Frequency store's progress of counseling, equipment and maintenance issues on the weekly Operation the quality and status of new product launches Division Meetings. The Business Audit Department will also remind on monthly Store Mangers Operation Division the store's counseling progress Weekly Meeting Meetings and other Division Meetings to strengthen learning and discuss how to improve the equipment and maintenance issues stores below 75 points. In 2019, the Business Audit Department started to assist stores to Store Managers better communicate with the headquarters about maintenance and equipment issues and use Seasonal reminder, food safety education, Monthly Meeting excellent store cases sharing. the effective counseling cases as examples to further help different stores and their managers. Other Division discuss how to improve the stores below 75 Monthly Meeting points.

44 MOS CSR Report 4 Sustainable Governance & Local Touch

4.9 Covert Customer Evaluation Since 2015, An-Shin has employed the ‘undercover customer evaluation’ as a way to check store operations from a customer points-of-view. Some undercover customers are staffs from our company, the Operations Department, and affiliate.They evaluate aspects including: speed, friendliness, order processes, product quality, cleanliness, and feedback recep- tion. The evaluators must physically enter stores and order meals for inspection. To ensure consistent evaluations and professionalism across all stores, training sessions are held yearly, where feedback can shared. In addition, we are constantly recruiting new undercover customers to join current evaluators in rotating store locations. The purpose is to analyze our customer’ s experience and understand areas of satisfaction or improvement. Ultimately, we want to enhance service quality, and push stores to continuously improve. Monthly evaluations will be compiled into a report, and evaluations are related to store KPI (key performance indicators).

Compared with the result of 2018, the results in each quarter of 2019 have slightly improved (Figure 4-40). In addition to the Covert Customer Store inspection items of the routine checklist, we have also added Selection Audit specific topics in each quarter (Table 4-16), covert customers Customer Meal Feedback and ordering Chosen from staffs, Occurs at least once are invited to give feedback on the relevant situation and opin- Suggestions and delivery the Operations per annual quarter, ions. This third party audit can allow us to better understand speed Department, with an evaluator our store conditions. and affiliate checklist employees. for scoring. Covert PD Table 4-16. Covert Customer Special Evaluation Product Customer Quality Audit Customer Special Evaluation Greeting 2019 System Feedback C A Additional and Im- Specialized The implementation of the environmental Q1 provement Evaluations protection cup policy Store Environment Customers Service Based on new Group analyzes and services/projects, Q2 Toilet cleanliness maintenance and Ordering Cleanliness Process compiles feedback there may be into a store report. additional Q3 Status of store air conditioners in summer evaluations.

Q4 Order /Prepare Meal / Waiting time confirmation Figure 4-38. Figure 4-39. Aspects of Covert Customer Evaluation Process of Covert Customer Evaluation

2017 2018 2019 2017 2018 2019 Friendliness Operations Cleanliness Product Quality Speed 263 262 91.52 259 258 83.56 257 90.32 81.88 82.35 82.76 90.22 90.19 258 255 89.82 257 251 88.38 250 88.21 89.39 33.49 32.84 33.47 34.27 245 88.67 244 36.50 36.63 35.81 36.51 87.68 87.91 86.99 17.60 17.54 17.52 17.61 0.54 0.65 0.55 0.58 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FFigure 4-41. Figure 4-42. Figure 4-40. Number of Stores Visited Average Scores Covert Customer Evaluation Scores in different aspects MOS CSR Report 45 4 Sustainable Governance & Local Touch

4.10 Personal Information Protection and Survey Form Disposal GRI 418-1 An-Shin has enacted the "Personal Data File Security Maintenance Implementation Measures" in 2013. According to An-Shin’ s privacy policy, customers need to be informed when their personal information Table 4-17. Complaints on Personal Information is collected or used. For example, customer surveys need to be disposed of by outside companies who 項目 2017 2018 2019 sign non-disclosure agreements and each disposal made is kept in records. We received no complaints regarding this topic in 2019. Complaints on Personal Information 0 0 0

Figure 4-43. Privacy Policy Figure 4-44. Non-Disclosure Agreement

46 MOS CSR Report 4 Sustainable Governance & Local Touch

4.11 Information Security Management Information Security Policy To protect customers' personal information and corporate information assets from unbearable To maintain the sustainability of the company’ s operations, compliance risks, An-Shin actively establishes an information security management system, set up a with the relevant laws and regulations, protection of the company’ s infor- "Smart Technology Committee" to help make decision of information management and technol- mation assets from external threats, or improper use resulting in the risk of ogy development. We follow the "Information Security Organization, Responsibility and Proce- tampering, An-shin established an information security management dures" to supervise information security policies, review processes and SOPs, promotes the system and information security management standards to effectively and correct concept of information security, implement risk prevention, and protect customer reasonably reduce the company's operational risks and formulate informa- privacy. tion security policies. To achieve the above-mentioned information security objectives, the goals 4.11.1 Information Security Task Force are set as follows: According to ISO27001/CNS27001 and related laws and regulations, we stated operational procedures related to information security management, established an information security man- (1) To ensure that relevant information security measures or rules comply agement system to promote information security to ensure the confidentiality and reliability of with the requirements of information security policies and existing laws our security systems. An-Shin gradually strengthen the investment of various information and regulations, we conduct annual information security audits. assets, such as the construction of HA hyper-converged equipment, IDC equipment room (2) Conduct annual test and inspection of the BCP (Business Continuity Plan). investment etc. In response to the security threats in recent years, such as ransomware, DDos (3) Ensure that information assets are properly protected after risk assess- Attacks, APT advanced continuous attacks, we build defensive firewalls, VPNs and other secu- ment to prevent damage to assets caused by unauthorized or negligent rity management to strengthen daily management. The annual security inspections and security operations. incident drills were conducted to reduce the cost of operational shock caused by security risks. (4) Ensure that all information security incidents or suspicious security vul- Since November 2018, the representatives of the Security Management Sub-Groups regularly nerabilities are responded to in accordance with appropriate notification held a "management review meetings" every year. We analyze issues found regarding informa- procedures, and properly investigated and dealt with. tion security and set up the "Information Security Management Sub-Groups", which is respon- (5) Ensure that the company's information security management system sible for conducting information security management review meetings and reaching resolu- continues to operate normally. tions to improve our security base. In addition, the Information Security Management Sub- Groups also perform management reviews to ensure the continuity and effective operation of (6) Regularly implement information security education and training, and the management system. In 2019, 2 seminars were held with a total of 67 attendance to receive occasionally implement irregular education and training. information security education (Figure 4-46, Figure 4-47). An-Shin passed the international (7) All personnel of the company who violate any of this policy will be pun- ISO/IEC27001:2013 and CNS27001:2014 information security certification in December 2018. ished in accordance with the relevant regulations of the company, and In order to ensure the continuous improvement and effective implementation of the ISO 27001 related civil, criminal and administrative responsibilities will be investi- information security management system, we carried out various improvements, and passed gated according to the seriousness of the circumstances. the re-assurance certification on December 16, 2019.

Figure 4-45. Figure 4-46. Figure 4-47. TCIC Certificate Information Security Training Information Security Training

MOS CSR Report 47 4 Sustainable Governance & Local Touch

Column 2019 Food Taipei-Food Delivery Robot Column Kaohsiung Food Show-the ﬁrst time to participate Unveils "An-Shin Smart Farm" in the Kaohsiung International Food Show

The 2019 Food Taipei grandly exhibited at the Nangang Exhibition Center from It’s An-Shin first time to participate in the Kaohsiung June 19 to June 22. An-Shin Food employs smart technology in various fields, International Food Exhibition during October including launch of service robots, new commercial refrigerators, and a smart plant 24~27. On the opening press, TECO service robots factory. TECO Catering Affiliates is the largest exhibitor at the 2019 Food Taipei, delivered vegetables from A-Shinin Smart Farm to with the slogan of "Dine in TECO Catering Affiliates, Really safe" as the main axis, the guests. TECO Catering Affiliates are devoted to and joined effort of brands from Japan, India, Australia, South Korea and other develop market of Southern Taiwan, introduce pro- countries to offer Taiwanese & exotic cuisines and the most valuable experience. duce of small farmers in Tainan and Taitung. We TECO Catering Affiliates best display international brand power and marketing initi- also signed a memorandum of cooperation with Figure 4-50. Group Photo ates. National Pingtung University of Science and Tech- nology (NPUST) to develop talents and provide excellent catering in the future. An-Shin continued the success of Food Taipei and showcased TECO’s brand philosophy of “Dine in TECO Catering Affili- ates, Really Safe” and smart technology in restaurants, so that customers in Southern Taiwan can meet food delivery robots (Miss MOS Burger) in 15 Figure 4-51. Fiure 4-48. Figure 4-49. Miss MOS Buger delivered the stores across Taiwan and enjoy vegetables of An- Magic Burger and vegetables An-Shin and Brands from Japan, Food Delivery Robots and Plant Shin Smart Farm in MOS Burger. India, Australia, South Korea Factory from Smart Farm

Column 2019 2nd MOS Burger Micro Film Competition Champion Silver Prize

To encourage the creativity and the learning of young generations, An-Shin Food and Taiwan Art and Busi- Mico Film Evaluation ness Interdisplinary Foundation co-organized the 2nd MOS Burger Micro Film Competition and broadcasted on social media platform. An-Shin sponsored Technique 20% Topic Figure 4-53. Champion-" Figure 4-54. more than NTD$300,000 reward to encourage young Grandpa Can Speak English" Silver Prize-"Safe, Delicious and 30% artists for film creation. This time, "MOS Burger" was Healthy MOS Power" used as the main theme and attracted 258 students Bronze Prize from Taiwan's high school and colleges (including Story graduate school) to form a team to participate in the 20% contest. A special award of online voting winner was Creativity added, and the fan group of the entries touched 30% more than 200,000 people, receiving 9,350 likes, 399 Figure 4-52. comments, and 1,667 sharing. Poster of Micro Film Competition Figure 4-55. Champion-"Old Place"

48 MOS CSR Report 4 Sustainable Governance & Local Touch

Special Environment Friendly, Promotion Report of New Diet

With the fact that growing population and limited resources on the earth, more and more people are paying attention to environmental protection and sustainable development. In the annual global trends report published by The Economist, the population of vegetarians continues to increase, making up around 5% of the current population. In recent years, the catering industry has begun to promote the use of veg- Available Stores etables, vegetarianism, and food science, such as Figure 4-56. Figure 4-57. Figure 4-58. Beyond Meat Patty MOS Magic Burger MOS Natsumi Magic Burger transgenic plants, milk substitutes, and plant-based proteins. When "Beyond Meat” was launched and created hot sale in advanced countries, the manufacturer also won the "Earth Guardian Award" issued by the United Nations. An-Shin’s operation also attached great Before the official debut, importance on environment friendliness and quality An-Shin trained the store ingredients. In addition to our signature vegetarian managers to ensure them Mushroom rice burger, we are also the first fast food understand the characteris- chain store to offer the "Beyond Meat Magic Burger" in Taiwan. The main ingredients of Beyond Meat patty are tics and how to maintain from pea, beetroot and coconut oil. It is 100% plant- quality of the product. On based and contains protein, fat, trace minerals and July 3, 2019, a total of 42 water. This new product was popular among custo- store managers attended the mers because its likeliness to real meat Fiure 4-59. Figure 4-60. introduction training. MOS Natsumi Magic Burger Training MOS Natsumi Magic Burger Practice

The "MOS Magic Burger" and "MOS Natsumi Magic Burger," both made from the plant-meat suitable are for vegetarians, were popular. To cope with the health trend, An-Shin deploys oat milk and debuted "Ice Magic Latte Coffee" and " Ice Magic Milk Tea". Oat milk is rich in high-quality protein, hypoallergenic and non-genetically modified (Note 5), providing vegans and lactose intolerant people with more choices of drinks. In the future, more vegetarian options will be introduced (for example: mushrooms, soy-based products, etc.) to satisfy that growing need. Figure 4-61. Figure 4-62. Figure 4-62. Poster of Ice Magic Latte Coffee and Ice Magic Milk Tea Ice Magic Milk Tea Ice Magic Latte Coffee

(Note 5) Non-GMO is the selection of genes through the survival of the fittest in the natural world, which eliminates the potential harm of genetically modified food to the human body.

MOS CSR Report 49 4 Sustainable Governance & Local Touch

Special Report Service Delivery Robots

The service delivery robot, Miss MOS Burger, is the first service robot that we jointly developed with TECO Group. It is lightweight, effcient, and reliable with obstacle censoring and speed adjustments.

Figure 4-64. Service Delivery Robot

Miss MOS Burger has started serving at 15 MOS Burger stores across Taiwan and is very popular with customers, especially children. Miss MOS Burger has a smart mobile platform built with TECO DC servo drives and motors. It has multiple features Figure 4-66. Our staff gives the meal to Miss MOS Burger such as automatic spatial positioning, accurate crossing, dynamicobstacle avoidance, map editing, and car control interface. Miss MOS Burger's arm will automatically extend when it reaches the location and a sensor on the tray to determine whether or not the guest has picked up his or her meal. In order to allow Miss MOS Burger to have interactions with guests in a noisy dining environment, it is also equipped with a 50W audio system to have a clear sound transmission, and a LED text screen to precise covey information.

Figure 4-65. Miss MOS Burger Fifure 4-67. Miss MOS Burger delivers meals to guests

50 MOS CSR Report Food Safety Responsibility and 5 Environmental Sustainability

In December 2019, An-Shin obtained the new version of ISO 30 new water-saving toilets installed in new stores in 2019, 17025 laboratory accreditation which will save 50-67% of water per flush An-Shin supports small farmers, purchasing an amount of In November 2019, An-Shin officially passed the new version of 111,591 kg of produce from local businesses ISO 50001 for energy management system Grand Award of Top Buying Power of the New Product and Systematic statistics have been used since 2015. The Reusable Service of the Social innovation Purchase Reward Program for Cup Program has accumulated 556,210 exchanged cups and 3 consecutive years reduced a total of 2,890,248 cups and lids waste 100% audit of relevant certificates of origin containing foreign A total of 27 Mos Burger Stores was awarded the 2019 Green raw materials Store Evaluation No violations of the“Act Governing Food Safety and Sanitation” Cooperate with the Construction and Planning Agency Ministry of the Interior to issue the "Taiwan National Park Travel Pass- A total of 419 participants participated in 10 food safety train- port" to promote understanding of Taiwan's beauty. ing courses and regulations updates in 2019 First time participating in the "Food and Beverage Industry Combating climate change, An-Shin pioneered the fast food in- Waste Reduction & Effective Use of Food Ingredients Competi- dustry and established An-Shin Smart Farm tion", the only one fast food chain awarded by the Food and 202 GHP Excellence Recognition stores, with a forensic rate of Drug Administration of the Ministry of Health and Welfare 100%

Stakeholders

Shareholders Clients & Customers Suppliers & Contractors Local Residents Media Employees

MOS CSR Report 51 5 Food Safety Responsibility and Environmental Sustainability

Strategy & Management Approach GRI 103-1 GRI 103-2 GRI 103-3

Material Topics Meanings for An-Shin Policy & Commitment Mangement Approaches and Eﬀectiveness Evaluation Mechanism

Health and safety has always Implement the "Food Safety Policy" with a system- Undertake monthly regular store sampling inspections, counseling on been top concern for consumers. atic food safety management system, insist on strict Public Health store hygiene, and supplier audits on production lines. An-Shin has dedicated to offer internal training and high hygiene, follow and and Food safe and delicious food. exceed government regulations, and ensure contin- Strictly implement source management and proactive scheme, combined with third-party inspection to ensure the safety of food ingredi- Safety uous improvement and effectiveness of the food safety system. ents and meals.

An-Shin takes food safety as first An-Shin executes a specific “3-in-1 Green Purchas- Monthly proactive disclosure to allow consumers to clearly understand priority and dedictates to trace- ing Policy” which consolidates “food traceability,” the food ingredients and the origin of the food. Traceability ability, which distinguishes us “local sourcing,” and “contract farming” into our from competitors and magnify supply chain, whichs let us check every detail from customers' trust. the source. An-Shin conveys the correct Within one part of the internal control system, Marketing and DMs must be reviewed by relevant units before they can product and service information, An-Shin formulates "Marketing Activity Cycle-Mar- be formally printed and publicly announced. Marketing & and actively communicates with keting Activity Planning Operation" and "Rules for Labeling consumers to ensure correct way Information Release by Self-owned Media " to of eating. ensure consumers receive correct information.

Major Topics Performace Indicators 2019 Goal 2019 Action Plans 2019 Performance Mid- to Long Term Goal Positive list-mandatory inspection: A total of 158 outsourced hazardous materials inspec- Rotational inspection of all items/menus tions(Note 1), with 155 qualified cases, followed by coun- twice a year. seling and tracking for three consecutive months, and the pass rate of re-inspection reached 100%. 100% proactive self-managed rate Food Safety 100% proactive self-managed Outsourcing inspection and monitoring of hazardous materials once a year. Carried out a total of 300 proactive sanitary random of ingredients. Monitoring Plan rate of ingredients inspections for food ingredients in 2019, and the pass rate 100% control rate of risk and Non-positive list-risk management: moni- after re-inspection was 100%. hazardous substances in food items. toring EU risk substances to update MOS Regularly obtain the proactive inspection report of the banned product database. normal food ingredient supplier. As of the reporting date, a total of 198 reports have been obtained. Improvement of counseling for unsafe or 100% effectiveness of counsel- unapproved items in random inspection by 100% effectiveness of counseling on ing on compliance with food the Health Bureau. No fines for violation of the "Act Governing Food Safety Public Legal Compliance and Sanitation" compliance with food safety regula- safety regulations Preventive measures- 3rd verification of the tions. Health store education and training courses. Social and 100% second pass rate of Food re-inspection of water quality, In 2019, achieved 100% second pass rate of re-inspection 100% second pass rate of re-inspec- Random inspection of ice/water quality of tion of water quality, products and Safety Store sanitary products and beverages of water quality, products and beverages After counseling, A & B Level drinks and counseling. After counseling, A & B Level stores accounted for beverages checks and stores shall account for 85% of GHP audits and counseling. 85.54% of total stores After counseling, A & B Level stores counseling total stores Case studies and information sharing in 5 on-site seminars were held for operation district training shall account for 85% of total stores. At least one on-site seminar for various districts" in 2019 Continual on-site seminars for opera- operation districts every quarter. tion districts. Pass rate of store sanitation checks Pass rate of store sanitation Strengthen multiple layers of safety inspec- checks in official training The average pass rate of Q1~Q3 is 100% (no inspection Pass rate of store sanitation checks in in official training ＞ tions. is conducted in Q4) official training stores＞80% stores(Note 2) stores 80% In 2019, the average number of training hours per store Store manager Annual average food safety Offer various courses on food safety, safety manager is 16.11 hours, which include 6.26 average train- food safety training hours for store man- and health, workplace health, occupational Annual average food safety training ＞ ing hours of occupational safety education, such as safety hours for store managers＞15 hour training agers 15 hours safety regulations, disaster prevention, etc. and sanitation, occupational safety regulation, promotion of awareness on prevention of accidents and harms, etc.

(Note 1) Risk-hazardous substances refer to the inspections in accordance with the hygiene standards items in the products announced by the Food and Drug Administration of the Ministry of Health and Welfare. (Note 2) Official training stores are stores responsible for training newcomers and assisting in regional education and training. 52 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5 Major Topics Performace Indicators 2019 Goal 2019 Action Plans 2019 Performance Mid- to Long Term Goal Effectiveness of ISO 22000 Operation and maintenance of ISO 22000 and Passed the re-assessment for renewal The ISO 22000 food safety management & HACCP accreditation HACCP. on February 18, 2019. system continues to be effective. Operation and maintenance of effectiveness of ISO Passed the supervision evaluation on Operation and maintenance of effectiveness of ISO March 28, 2019. 17025 laboratory quality management system. 17025 laboratory quality management system. Newly added certification of the inspection methods Effectiveness of ISO Passed the new version of ISO17025:2017 (CNS Obtained the new ISO 17025 certification 17025 accreditation for Enterobacteriaceae and Listeria monocytogenes. 17025:2018) laboratory quality management on December 6, 2019. Passed the extended evaluation of TAF accredited system. laboratory certification. Maintain the system Introduced Enterobacteriaceae inspection method The Food Inspection Center introduced Effectiveness of TFDA and scheme according to the time frame announced by regulations. the Enterobacteriaceae inspection method Maintain certification validity. accreditation Passed TFDA performance evaluation. in April 2019.

Maintain operation of Maintain the effectiveness of the laboratory biologi- No biosafety related accidents occurred in 2019. Laboratory Biological cal risk management system. Maintain the effectiveness of the laboratory 100% control rate of infectious biological 。 Risk Management Quarterly reports of infectious biological materials materials biological risk management system. System (CWA15793). control to the CDC. Completed the annual drill on July 31, 2019. Conduct annual drill Maintain and post the registration number of health personnel/store managers. Maintenance of An-Shin information platform Managed 100% items Inspection reports available at the company's An-Shin Information of proactive control or official websit Managed 100% items of proactive control Maintenance of An-Shin Information Plat- or required by regulations froms Platform required by regula- Maintenance of Food Tracer System, Dept. of tions. Health, Taipei City Maintenance of Campus Ingredients Registration System, Ministry of Education Customer Customer complaint The target was reached every month Customer complaint rate (Hygiene-related complaint rate rate (Hygiene-related throughout the year, with a cumulative Call Center +080 + Email)＜0.001% Public (Hygiene-related Customer complaint contact/handling and tracking. Call Center +080 + average of 0.0004%. Pass rate of store sanitation checks＞70, all Health Call Center +080 + Email)＜0.001%。 Report to relevant units for improvement Email) Except for the first quarter water quality pre-in- products comply with the provisions of the Social and Pass rate of store sani- Strengthen multiple safety inspections spection, The goals were reached from April to Food Safety and Health Act, and continue to Pass rate of store ＞ Food sanitation checks tation checks 70% December 2019, with an average of 76.93%. offer safe products. Safety As of December, 31st, 2019, we had a total Aside from extreme of 275 stores, aside from special conditions Effectively (due to coordination with the lessor to situations (including adjust the schedule or due to natural disas- conduct monthly weather, re-furnishing, ters), there is a monthly pesticide inspec- pesticide controls etc.), monthly pesti- Conducted monthly pesticide controls tion conducted, with a total of 2,871 times, Conducted monthly pesticide controls cide controls are conducted by vector control service com- conducted. panies licensed by the Environmental Protection Agency of the Executive Yuan, which was in cooperation with An-Shin (Note 3) . In Q2, the pesticide effectiveness was Pesticide Pesticide Effective- Conduct evaluations for pesticide controls contrac- unsatisfactory, and the contractors were Effectiveness ness Satisfaction＞ tor to strengthen their effectiveness. required to improve. Q1 & Q3 & Q 4 had Pesticide Effectiveness Satisfaction＞85%。 Survey 85% satisfactory pesticide effectiveness results, with an average of 83% satisfactory rate.

Zero food safety Conduct a review of the formula and recipe. Food/Products Legal review of regulatory information, product traceability hazards Continuing management of Food/Products 100% qualification labeling, safety documents, inspection reports. management Qualification review of supplier's production line No food safety hazards throughout the year. traceability, and achieve zero food safety rate of ingredi- evaluation. hazards ents/products after Provide various monitoring statistical reports. traceability review Establish a database for current product formula review ＜＜。 Abnormal rate 0.005% The quarterly pass rate was 100% with a Abnormal rate 0.005% Pass rate of supplier Pass rate of supplier evaluation＞80%。 Supplier ＞ Undertake regular supplier evaluation total of 20 suppliers have been evaluated. 。 Mangement evaluation 80% Develop new suppliers as planned Develop 6 new suppli- Develop new suppliers as planned ers every year Inventory Safety stock management Regularly provide information of production and After gaining of the authorized pricing quotes sales database. Regularly provide information of production Management for schedule product at the and sales database. and terms for products, purchase according manufacturer's end to actual needs and shorten the lead time Marketing Marketing and DMs must be reviewed by relevant Marketing and Zero consumer related and units before they can be formally printed and public- Zero consumer related food safety hazards Zero consumer related food safety hazards Labeling promotion food safety hazards ly announced.

Environ- Trace- Promote Add new source of traceability of chopped onion. Executes 3-in-1 Green Purchasing Policy” which Purchase traceable Introduce agricultural products from social enterprises traceability products Purchased traceable vegetables of 673,173 kg consolidates “food traceability,” “local sourcing,” mental ability and “contract farming” to boost local production

(Note 3) Pesticide counts are based on effectiveness. If pesticide inspection is done more than once a month, it is only counted as one time. MOS CSR Report 53 5 Food Safety Responsibility and Environmental Sustainability

5.1 Food Safety Task Force and New Practices FP5 To ensure safety management, we have the Food Safety Task Force, with 27 members. This group is comprised of employees from a variety of fields. They have developed the food safety management system with relevant practical experience and complemented the Quality Assurance Department to ensure food safety. To ensure the continuous improvement and effective implementation of the ISO 22000 related food safety management system, we passed the reassessment on Feb. 18, 2019. The goal of ISO 22000 & HACCP certification for Songjiang Store is to become a demonstration store for implementing ISO 22000 food safety management system. In 2019, the amount of goods sold by Songjiang Store accounted for 0.65% of the net revenue of the company's standalone statements. The rest of the stores are also based on the Songjiang store as a model standard, and follow ISO 22000 food safety management system and HACCP for management and product quality control. The revenue of the Songjiang Store has continued to increase with the growth of An-Shin. Although Revenue of Songjiang Store accounted for the toal company's revenue has decreased year by year, it does not affect the management and product quality control of all stores in compliance with our management systems and safety standards. A new version of the ISO 22000 Food Safety Management System was announced on June 19, 2018 and we started to prepare for conversion. During December of the same year, 8 conversion workshops were held for related units and 36 internal auditors were trained with a total training time of 450 hours, including our chairman, CEO, and other executives (Figure 5-3). A total of 44 SOPs and forms were formulated and revised in 2019. After operating Figure 5-1. ISO 22000 Certificate Figure 5-2. HACCP Certificate the new version of the food safety management system for one year, we expect to complete the conversion and obtain the verification in April 2020. An-Shin takes all preventive measures to realize our promise to food safety. We identified 26 internal External Training (hours) and external environmental issues, conducted a risk assessment, listed 2 issues as the topic of 2019 food safety action plan, and tracked the progress of improve- 226 ment. In addition, An-Shin sponsored personnel to external professional training (Figure 5-4). Through training and real-time internal communication of laws and 140 regulations, we ensure that food safety managers can understand and use relevant 122 technology and regulatory information. In 2019, the total cost of external professional trainingwas NTD$ 138 thousand. The total external professional training hours are 226 hours, with 108 employees trained. 2017 2018 2019 Table 5-1. Revenue of ISO 22000 and HACCP certified store accounted for the proportion of the company's individual statements net revenue Figure 5-3. Figure 5-4. New version training for internal auditors External professional training hours Year 2017 2018 2019

Revenue of ISO 22000 and HACCP certified store accounted for the proportion of the 0.73% 0.68% 0.65% company's individual statements net revenu

54 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

5.2 The First and The Only Food Chain Store with 5.2.1 Inspection Ability is in line with TAF&TFDA Dully-certified Laboratory international standards The food inspection center was established in 2010, and we ensure the last stage Reliable and accurate inspection technology is one of of food safety, to protect customer health. The dual certification was granted after the important management of Food Inspection Center. the 2011 TAF-certification (No. 2473), and 2018 TFDA certification (No.F106). In order to follow the "Quality Policy" formulated by An-Shin is the only food chain store with dully-certified laboratory. Our Food Inspection Center actively participates in professional proficiency tests of domestic and interna- In December 2019, An-Shin officially obtained the new tional institutions every year, including the UK Central version of the international laboratory certification Science Laboratory-FAPAS and Super Laboratory Co. specification ISO 17025 certification. Ltd. in Taiwan. In 2019, we had a total of 15 test items for the common hygienic indicator bacteria in food and drinking water, and continued to improve inspection TAF is the only institution in Taiwan that has been accredited by an international capabilities. In 2019, we also participated in the competence test for Listeria monocytogenes and Entero- Figure 5-7. organization. TAF built a fair, independent, and transparent evaluation system that FAPAS-total microorganisms meets international standards. Our Food Inspection Center obtained the Taiwan bacteriaceae for the first time, and each obtained a testing in food products Accreditation Foundation (TAF) certification in 2011 and continued to meet the "satisfactory" score, indicating our inspection capabili- international standard ISO/IEC 17025 under rigorous certification, supervision and ty is in line with international standards, and has credi- management mechanism. ISO 17025:2017; CNS 17025:2018 “General Require- bility and professionalism. ments for Testing and Calibration Laboratory Capabilities” was officially announced in November 2018. The Food Inspection Center has invested 162 hours in education and training, 560 hours of on- job- training, and formulated and revised a total of 80 Sops and forms to comply with the new standard. With the efforts of the professional team, we submitted the application for verification to TAF in July 2019, and completed the on-site evaluation in September 2019. After an expert group review, we officially obtained the new version of certification in December 2019, and fully complied with international norms. "Professional and accurate inspection technology, strict quality requirements, service to meet customers’ expectations, and adherence to the principle of fairness and confidentiality" are the mission of our Food Inspection Center. In the future, they will continue to comply with interna- Figure 5-8. Figure 5-9. Figure 5-10. Figure 5-11. FAPAS-E.Coli FAPAS-E.Coli FAPAS- microorganisms FAPAS-E.Coli tional and government regulations, monitor the quality system and technology to group in food products in food products testing in drinking water testing in drinking water meet the international standard, and work as the goalkeeper for MOS Burger.

Figure 5-12. Figure 5-13. Figure 5-14. Figure 5-15. FAPAS- Listeria FAPAS- Super Laboratory’s Super Laboratory’s Figure 5-5. TFDA Certification Figure 5-6. TAF ISO 17025 Certificate monocytogenes Enterobacteriaceae proficiency test certificate proficiency test certificate for 2019 H1 for 2019 H2

MOS CSR Report 55 5 Food Safety Responsibility and Environmental Sustainability

5.2.2 An-Shin Food Inspection Items

In 2019, the total inspections testing by the laboratory included products, drinks, Table 5-2. Inspection Service by An-Shin Food Inspection Center ice, water, and materials (Note 4) was 3,042 total, with 2,732 satisfactory results and 89.8% satisfactory rate. These testings include microorganisms (Note 5) and Category Inspection Items vegetable and fruit pesticide residues and rapid testing of animal drugs. In addition to the existing inspection items, our additional inspection followed the AOAC meth- Method Certified by TFDA ods for Staphylococcus aureus and Salmonella also received the TAF's approval in Food: Microorganisms, E.coli Groups, E.coli 2019. In order to meet customer expectations, we have successively introduced Method Certified by TAF TFDA announced Staphylococcus aureus inspection methods and recommended Food: Microorganisms, E.coli groups, E.coli, Staphylococcus aureus Enterobacteriaceae inspection methods to enhance our capability and provide (recently added in 2019), Salmonella (recently added in 2019) mored inspection services. The inspection items are as follows: Water: Total # of colonies, E.coli groups

Microor- Method refer to TFDA announced and recommended (recently (Note 4) Samples are from our Quality Assurance Department, suppliers, An-Shin Smart plant Factory, added in 2019) and synchronous samples of the government agency, and shopping centres. ganisms Food: Staphylococcus aureus, Enterobacteriaceae (Note 5) The regulations are based on the hygiene standards for cooked foods, ready-to-eat foods, food hygiene standards, frozen food hygiene standards, drinking water quality standards, general Method in Accordance to AOAC food hygiene standards, and ice hygiene standards. Food: Microorganisms, E.coli groups, E.coli, Listeria monocytogenes, E. coli O157:H7, Enterobacteriaceae(recently added in 2019)

Environmental smear total bacterial count and E. coli group test method Dry Test: with reference to Tokyo’s Department of Health Wet Test: 3M e.Swab (BPW) Test

Rapid Bioassay for Pesticide Residues certified by the Council of Agriculture Pesticide residues: organophosphorus & aminoformate series pesticides

Figure 5-16. Figure 5-17. Antibiotic and Clenbuterol Inspection Methods for Fresh Meat, Chemicals Salmonella AOAC test method Announced Inspection Method for Eggs, Seafood Staphylococcus aureus Antibiotic rapid screening reagent kit Premi® Test The total Lexopamine rapid test kit expenses in 2019 Clenbuterol Hydrochloride Rapid Test Reagent Kit at the food inspec- Clenbuterol 3-in-1 (CB clenbuterol/RAC ractopamine/SB salbu- tion centre were NT$ tamol) rapid test reagent (Note 7) 7,060 thousand (Note 6), including third-party (Note 7) From January to May 2019, ractopamine and clenbuterol hydrochloride rapid test kits were inspection fees NT$1,596 used; after June, the 3-in-1 clenbuterol rapid test reagent was used. thousand . The total expenses made up 3.52% of operating Figure 5-18. proﬁt, and 0.13% of Recommended Test Method for sales revenue. Enterobacteriaceae

(Note 6) The Food Inspection Centre expenses include: third-party inspection fees (including equipment adjustment), laboratory one-time-use test kits, equipment purchase, salary, rent, proficiency tests, training and maintenance of equipment, etc.

56 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

Pesticide Residues(cases) Animal Drugs(cases) Microorganism Testing Concerning potential risks in our food such as 480 513 In 2019, total inspections including product, water, ice and preservatives, heavy metals, drugs residues, 444 materials in 2019 were 2,370 times. Of which, 2,060 tests were antibodies, pesticides, and plasticizers, we satisfactory. An-Shin Food made corrections and formulated also use third-party inspectors along with our improvement measures. Each store made improvements own tests to ensure there are no risks. In the 118 135 159 according to the improvement proposals issued by the Quality monthly checks, number of bacteria, Esche- Assurance Division. richia coli, Escherichia coli, Staphylococcus aureus, Salmonella are all checked for. 2017 2018 2019 Rapid Bioassay for Pesticide Residues Figure 5-19. Adopt rapid detection methods of pesticide residues in vegeta- Number of pesticide residues and animal drug inspections bles and fruits announced by the Council of Agriculture of the Executive Yuan, and conduct proactive inspections on organophosphorus agents and carbamates to strictly control food safety. We added a certified pesticide residue testing personnel who obtained the qualification in December 2019 and will be valid until 2021. Rapid Bioassay for Pesticide Residues totaling 513 tests, with 100% satisfaction rate Figure 5-20. Figure 5-21. Figure 5-22. Rapid Testing of Animal Drugs Rapid detection of pesticide residues Animal Drug (antibiotic) rapid testing Animal drug (clenbuterol) rapid detection In order to raise our testing ability and increase the monitoring 5.2.3 Food Information Trans- frequency of fresh meat, eggs, and seafood ingredients, the Food parency -An-Shin Infor- Inspection Center has been using Clenbuterol rapid testing and antibiotic testing kits to monitor a total of 159 samples per month mation Platform since 2016, with a pass rate of 100%. To further promote food safety and customer Rapid testing of food and animal drugs (antibiotic, satisfaction, the Food Inspection Center pro- Clenbuterol), a total of 159 inspections, with a pass moted the importance of food inspection to consumers at the "2019 Food Taipei" for the rate of 100% first time and regularly updated results of food ingredient inspection on An-Shin Information Figure 5-23. Food Inspection Center Promotion Platform ( lab.mos.com.tw) publicly disclose at Food Taipei 2019 Clenbuterol Knowledge and update the results of the inspection of the Ractopamine (RAC), Clenbuterol (CLE/CB), Salbu- ingredients and raw materials used. tamol (SAL/SB), are the three most commonly used An-Shin has always adhered to food safety Clenbuterol drugs. The use of such chemicals by and has managed every process from the Figure 5-25. farmers can reduce fat and increase the proportion suppliers and intermediaries to table to pro- An-Shin Information Platform of lean meat. It is recognized as a growth hormone in vide customers with safe and healthy meals. the EU and other countries, and it is prohibited to Adhering to the business philosophy of "Con- import if residues foundin meat. If you eat meat with tribute to Humanity, Contribute to Society", residues of these drugs, you will have heart palpita- our Food Inspection Center expanded its ser- tions, muscle tremors or dizziness and vomiting, or vices in 2019 and started to accept external commissioned cases to provide professional Figure 5-24. even die in severe cases. Food Inspection Center Promotion inspection services. Food Inspection Q&A Activity at Food Taipei 2019 Center LINE@ MOS CSR Report 57 5 Food Safety Responsibility and Environmental Sustainability

5.3 Supplier Evaluation System To effectively manage the suppliers’ quality, delivery and cost, care about envi- Figure 5-26. New Suppliers and New Product Process Evaluation ronmental issues, compliance with laws and regulations, and improvement on bilateral competitiveness, An-Shin conducts new supplier evaluation, new prod- Personnel Material Hygiene Equipment uct process evaluation and current supplier evaluation every year. Management Management 7% 11% 12%

5.3.1 New Suppliers and New Product GRI 102-9 GRI 308-1 Process Evaluation GRI 308-2 GRI 414-1 Document review: Confirmation of registration certificate and other relevant verification certificates. On-site qualification review: Before a new supplier or new product is launched, we conduct evaluations according to the GHP through factory visits, including workplace, equipment, material management, quality control and staff management. Only suppliers with a B grade (possible grades of: A, B, C, or D grade), and above can produce our products. C level suppliers must undergo improvement plans and consulting in order for us to conduct business with them. B grade sup- Quality Manufacturing Others pliers refer to companies with a score of 70% or higher. If you receive a D grade Control Site 20% rating, offers will be rejected. In 2019, we undergo 20 on-site inspections, 51 fac- 23% 27% Human tory production lines evaluated, which made up 23% of our total suppliers, with Rights 100% satisfaction. In addition, 6 manufacturers, new non-direct trading suppliers

and a total of 7 factory production lines were evaluated with 100% satisfactory Develo- Sewege ment & results. In 2020, the Department of Quality Assurance will continuously evaluate Potential Waste new suppliers and grade them. We not only grade our suppliers, but also the inter- Other mediaries and their suppliers (we follow the supply chain and evaluate up to third tier suppliers). The inspection items include personnel hygiene management, man-

ufacturing environment, machinery and equipment, raw material management, and Emgency Environ- Response ment even the quality control of upstream suppliers who provide documents for relevant Potential review.

Table 5-3. New Suppliers Evaluation Grade: Score Intervals Table 5-4. New Suppliers and New Product Process Evaluation Onsite Audits Grade A B C D Onsite Qualification Items A B 85% and 70~84% 60~69% Needs-Im- 59% and audits Rate satisfaction above Acceptable provement Supplier below New Suppliers and Excellent Supplier Rejected New Product Score 58 suppliers 6 suppliers 52 suppliers 100% Supplier Supplier Process Evaluation

58 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

5.3.2 Supplier Evaluation for GRI 102-9 GRI 414-2

Current Suppliers Table 5-5. Suppliers with Food Safety Certification An-Shin carry out a joint evaluation of the Product Development Dept., Quality Assurance Dept. and Purchase Dept."Annual Supplier Evaluate Plan" is scheduled in accordance with "Suppliers Year 2017 2018 2019 Management Procedures". Procurement Dept. has statistics on each supplier on transaction Category Number of suppliers amount, cooperation, and conducts evaluations every year. Evaluation includes management ability, product quality, services and delivery time. In 2019, there were 38 suppliers with 48 inspections Suppliers with FSSC 0 0 2 on agricultural and livestock products, which made up 44% of our suppliers, with 100% satisfac- Suppliers with ISO 22000 tory results. Other suppliers made up of 9 suppliers had a total of 12 inspections, 12 indirect sup- 35 35 35 pliers underwent 12 evaluations, also with 100% satisfactory results. Suppliers with HACCP 27 27 27 Currently, there are three levels of our evaluations. The three levels of evaluation are: A (70% and above, with priority for increased purchasing), B (60-70%, with acceptable purchasing), C (need- Total current suppliers 70 70 104 ing improvement, or cancel contracts.)

Table 5-6. Current Suppliers Evaluation Statistics

Year 2017 2018 2019

As the As the As the Suppliers Frequency propotion of Pass rate Suppliers Frequency propotion of Pass rate Suppliers Frequency propotion of Pass rate Catrgory (#) （times） total materials （%） (#) （times） total materials （%） (#) （times） total materials （%）（%）（%）（%） Food and agricultural products 37 48 62% 100% 37 47 47% 100% 38 48 44% 100%

Other transaction 9 11 0% 100% 9 12 0% 100% 9 12 0% 100%

Non-direct Transaction 11 11 0% 100% 12 12 0% 100% 12 12 0% 100%

Total 57 70 62% 100% 58 71 47% 100% 59 72 55% 100%

Current Suppliers and New Product Process Evaluation

Department of Product Development Department of Quality Assurance Department of Procurement Management Product Quality Service and Table 5-7. Current Suppliers Evaluation Grade: Score Intervals 20% Ability 30% (quality control) 50% delivery time (technique and (on-schedule) Grade A B C innovation) Above 70% 60%-70% Under 60% Prefered and maintain same Needs Satisfaction Increased level of improvement Score purchasing purchasing or reject and cancel purchasing

MOS CSR Report 59 5 Food Safety Responsibility and Environmental Sustainability

5.4 Sustainable Procurement Management FP1 FP2 An-Shin’ s sustainable purchasing’ s goal is to offer products and services while mini- tion, planting/seedling propagation, field management, fertilization, pest control, har- mize negative impact on the environment. An-Shin focuses on promoting traceability, vesting etc. A MOS Burger store has a board displaying updated information regarding sourcing local ingredients from cooperative farms, and actively promoting the Green the ingredients. The TAP badge will always have relevant information such as certified Purchasing Policy. An-Shin actively explores and evaluates domestic farmers who items, certification agencies and their traceability numbers. Detailed production infor- respect food and cherish the land. We promote local agricultural products, establish mation can also be found on the agricultural information network (http://taft.coa.gov.tw good supply chain partnerships with those farmers, and preferred to purchase vegeta- ), or by entering the tracking number with two-dimensional bar code to understand all bles with TAP marks. "Traceability" refers to the "production process of agricultural the information of production process. In 2019, the purchase for TAP traceability-certi- products, in accordance with the standardized operating procedures and models stipu- fied agricultural and livestock products was NT$ 78,928 thousand, making up 69% of lated by the authority, to effectively eliminate risk, reduce environmental impact, and total purchasing for agricultural and livestock products.Due to the seasonal factors and ensure the safety and quality of agricultural products. Traceability emphasizes risk output adjustment, we occasionally use import vegetables. To ensure food safety, we assessment, countermeasures for the causes of important risks, and early prevention analyze and evaluate the source, safety and quality of ingredients. Source confirmation of risks in the production process. includes origin certification, the initial quality of import, pesticide tests. We also monitor We arrange contract farming according to seasonality and vegetable use. Contracted the quality of imports with local agents every week and checked the origin information representatives confirm water and soil quality, with all relevant production and planting to ensure the quality without any risk. records managed using the same standards. Only products complying with health and safety standards and clearly tracing all the information in the production process can be used to serve consumers. On the traceability page of the our CSR website, you can query the production process of vegetables used in the season, such as land cultiva-

Traceability Transparency in planting processes

Green Purchasing Policy Contract Local Sourcing Farming Support local farmers Guarantee revenue and and reduce carbon product quality & footprint stability Traceability

Figure 5-26. The 3-in-1 Green Purchasing Policy Figure 5-27. Traceability Website Page

60 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

To supplement the income of small farmers and increase their sales channels, a portion of An-Shin’ s procurement is allocated to them every year, which brings a close connection with local communities and promotes their economies. For example, in 2019, we purchased 178,290 kg of sweet potatoes and added several products such as sweet potato fries and egg rolls which allowed the local farms to branch into a new market and gain access to new revenue streams. We also made tomato, lemon, and pomello purchases totalling 111,591 kg. Because these partnerships and support we give to small farmers, we were rewarded the Grand Award of Top Buying Power of the New Product and Service of the Social Innovation Purchase Reward Program for 3 consecutive years.�

Traceable Taiwan Sweet Potatoes Traceable Produce from smaller farms TAP certified Vegetables Non-traceable agricultural products or primary processed products Traceable Taiwan Sweet Potatoes(%) Traceable Produce from smaller farms(%) TAP certified Vegetables(%) Figure 5-29. Non-traceable agricultural products or primary processed products(%) Grand Award of Top Buying Power of the New Product and Service of (Note 8) (Note 9) the Social innovation Purchase Reward Program

120% 100% of An-Shin’ s egg usage is TAP certified, including traceable eggs and animal 16% 178,290 9% 100% 12% 111,591 welfare eggs. Eggs are fully cooked, allowing customers to taste the safe and delicious 5% 9% 6% meals. An-Shin also made it a goal to only use free-range eggs in line with international 51% 36% 80% 232,083 673,173 sustainability trends. Animals, like humans, have a complete nervous system, pain sen- 152,932 47% 60,821 130,214 60% sation and instinctive reactions to avoid pain, and should not be subjected to unneces- 49% sary pain. Free-range eggs is not widely produced in Taiwan and the supply is usually 40% 654,971 660,610 not enough. Therefore, since 2015, part of the egg purchase was allocated to support 33% 930,952 free-range farmers, and a total of 8,299 thousand of these eggs have been used so far. 28% 20% 424,455 390,147 0% 22 24 17 2017 2018 2019 2,084,880 Traceable Cage-fres Eggs 2,403,840 2,649,360 Figure 5-28. Usage of Traceable Ingredients and the Proportion of Total Produce TAP certified Eggs 78 76 83

Traceable Cage-fres Eggs(%) 8,684,880 8,581,920 9,889,800 TAP certified Eggs(%) (Note 8) Processed (cutting or pickling) traceable agricultural products are considered as primary processed products, not included in traceable agricultural products. 2017 2018 2019 (Note 9) Due to unresistible factors such as supply of production or natural disasters, we sometimes have to use imports or purchased produce in the vegetable and fruit market, which makes it Figure 5-30. Egg Usage difficult to trace all the materials.

MOS CSR Report 61 5 Food Safety Responsibility and Environmental Sustainability

To ensures the normal function of the commercial market of ISO 22000 certified ISO 22000 certified Purchase(NT$ Thousand) Purchase(%) food and related derivatives, obtains timely market informa- Produce,Meat and Poultry Produce,Meat and Poultry tion, and reduce extreme food price fluctuations, An-shin Suppliers (Stores) Suppliers (%) HACCP certified HACCP certified Purchase(NT$ Thousand) Purchase(%) undertook several measures to counter these impacts, Packaging Suppliers(Stores) Packaging Suppliers (%) including grain storage and promoting responsible con- FSSC certified FSSC certified Materials Suppliers(Stores) Materials Suppliers (%) Purchase(NT$ Thousand) Purchase(%) sumption. These measures ensure food safety, boosts the entire catering industry, and creates a healthy supply chain. 82 81 An-Shin Food have been seeking supplier with similar con- 76 cepts and correct food safety perception. Through close cooperation, rigorous supplier evaluation and auditing sys- 14 12 18 tems, An-Shin further strengthen the food safety. In 2019, 10 18 14 1,192,985 1,337,166 1,458,375 we had 102 reliable suppliers (Note 10), of which 86.27% 13 11 78 74 75 74 were suppliers of materials, meat and poultry. An-Shin pre- 72 9 14 10 69 fers to buy products that are certified (TAP, CAS, GMP, GHP, 9 ISO22000 & HACCP). We continuously explore the market 1,078,175 1,314,144 1,339,668 for new suppliers to increase stability and diversify material. 50 70 70 76,037 In 2019, we purchased a total of NT$1,339,668 thousand 4 HACCP certified food material products, making up 74% of 2017 2018 2019 our total food material purchases. A total of NT$1,458,375 2017 2018 2019 thousand of ISO 22000 certifiedl food material products Figure 5-31. Suppliers and Categories Figure 5-32. Purchase of Certified Materials were purchased, making up 81% of our totall food material purchase. (Note 10) Empassing 2019 suppliers which have transactions with An-Shin. FSC certified FSC certified Purchase(Thousand) Purchase(%) In recent years, the earth has been constantly threatened by climate change. Experts are concerned PEFC certified PEFC certified about climate change and circular economy issues and trying to find methods to reduce the impact Purchase(Thousand) Purchase(%) on the environment. We supported sustainable forest, treasure ecological environment and help biodi- 100% versity conservation through green consumption. Through changing consumption behavior, An-Shin is workings towards increasing sustainability. An-Shin supports The Forest Stewardship Council by 80% purchasing FSC-certified products (Note 11). As of 2019, the total purchase amount of of FSC certified paper packaging, such as hot drinks cups, french fries and fried chicken bags, hot dog and 69 60% 74 74 burger boxes, and take-out bags, have accumulated to a total amount of NTD$ 393,019 thousands, with NTD$ 50,177 thousands in 2019, accounting for 69% of the total paper packaging material pur- 53,851 57,490 50,177 40% chase. In 2019, 22,674 thousand fries bags, 4,571 thousand fried chicken bags, 1,587 thousand hot dog and burger boxes, 8,838 thousand hot drink cups, 21,666 thousand cold drink cups, and 27,567 20% 10 thousand carry bags were used. There were also some purchases made in 2019 using the PEFC(Pro- 0 0 7,619 gram for the Endorsement of Forest Certification, Note 12) certified products of NTD$7,619 thou- 0% 2017 2018 2019 sands, accounting for about 10% of the total purchase expenditure of paper packaging materials for the year, including 1,587 thousand hot dog burger boxes and 4,951 thousand cold drink cups. We Figure 5-33. Purchase of FSC & PEFC certified paper packaging also used 23,126 thousand cold drink cups, straws and salad boxes made of biomass plastics.

(Note 11) FSC was established in 1993, and has members from 25 countries including the Environmental Protection Association, Local Resident Certification Association, and Lumber Association (Note 12) PEFC, the Program for the Endorsement of Forest Certification, is a leading global alliance of national forest certification systems. As an international non-profit, non-governmental organization, PEFC is dedicated to promoting sustainable forest management through independent third-party certification.

62 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

Zhuzihu Ponlai Rice Foundation Column Origin Travel Column Seed Field Story House Rice is a major crop in Taiwan. Currently, Taiwan’ s rice In January 2006, An-Shin was the first to promote the food traceability system in Taiwan and production has reached 1,949,796 metric tons. Taiwan- joined the Council of Agriculture, Executive Yuan’s "Establishment of a demonstration model for ese rice is the key ingredient in the MOS Burger rice the traceability and production and sales processes of agricultural products." An-Shin com- patty. We used more than 1 million kilograms of rice bined traceability with local sourcing and contract farming to form a 3-in-1 Green Purchasing every year. On March 8, 2019, our chairman led 34 em- Policy to maintain high-quality safety management. We also had the Origin Travel in March of ployees on a visit to the Zhuzihu Ponlai Roce Founda- 2019 where our vice president Fukumitsu traveled with almost 100 staff members to YunLin, tion Seed Field Story House in Yangmingshan National MaiLiao’ s Taiwan Lettuce Village and experienced the planting and harvest process of MOS’ Park to learn about the history and procedures of lettuce. So far, more than 460 shop partners have join Origin Travel and understood the planting Ponlai Rice as well as rice farming in Taiwan. The histo- and harvest processes as well as the hard work of farmers. ry of development allows us to appreciate the hard work of planting rice. In addition to rice burgers, we During the first quarter of each year, we share our fresh produce from farms to our customers have also develop many products made from rice flour through Lohas Market, which we started in 2007, and it allows customers enjoy the same ingre- and have actually taken action to reduce food miles dients as MOS Burger at home. We encourage our customers to enjoy local specialty produce, and support local agriculture. help farmers increase sales, and reduce our carbon footprint. Tthe vegetables sold in the Lohas Market are all grown in An-Shin contracted farms and information was announced and published in our MOS Life Magazines and MOS Order APP notifications. In the past, lettuce, cab- bage, tomato, lemon, and egg were sold. In 2019, we also sold Taiwanese special high-quality produce such as red quinoa and organic rice. We not only emphasized traceability to check food safety and utilized contract farming to guarantee farmers’ income and reasonable profits, but also adopted local ingredients to reduce food print and achieve carbon reduction goals. An-Shin Food supported local agriculture with actual action, with all food ingredients 104 70 100 are recorded in detail through different processes, tracked 人人人 from the very beginning, demonstrating transparent disclo- Figure 5-34. Ponlai Rice Tour sure and multiple-layer control system. Figure 5-36. Origin Travel Participants

2017 2018 2019

Figure 5-37. Figure 5-38. Figure 5-39. Figure 5-35. Origin Travel Group Photo Figure Fresh Vegetables and Origin Travel Lohas Market Visit Zhuzihu Ponlai Rice Foundation Seed Field Story House

MOS CSR Report 63 5 Food Safety Responsibility and Environmental Sustainability

5.5 Legal Compliances 5.5.1 Proactive Compliance GRI 416-1 GRI 416-2 GRI 417-1 FP8 Facing with ever-changing domestic & foreign laws and regulations, companies are An-Shin’s Quality Assurance Department regularly announces updates and publicizes exposed to risks such as government fines, reputation loss, and even criminal prosecu- related information. In 2019, the government had 125 updates and related information tion that jeopardize operations. If there are major changes to the regulations and was passed on immediately to our staff (noted in their internal records). In 2019, we amendments, the Quality Assurance Dept. will immediately conduct internal communi- complied with “Act Governing Food Safety and Sanitation” , “The Regulations on Good cation and inspections to update or change our food safety ensurance procedures. Hygiene Practice for Food, GHP ” , “Enforcement Rules of the Act Governing Food Safety and Sanitation” , “Standards for Pesticide Residue Limits in Foods” , and related food safety regulations and therefore had no violations or fines (Note13)

(Note 13) Food Safety Regulations can be referenced in the following website: https://www.f- da.gov.tw/TC/law.aspx?cid=62&pn=2

【Proactive Disclosure of Inspec- 【Active Cooperation with the tion Reports】Food Safety Government】GHP Excellence through Disclosure Transparency Recognition In 2019, An-Shin participated in the evalua- In order to provide customers with safe and tion of food and beverage hygiene organized delicious products, An-Shin is committed to by the Department of Health of Taipei City, the traceability and safety of raw materials Taichung City, Yilan County, Miaoli County, and ingredients. In addition to ingredients Changhua City, Yunlin County, Chiayi County inspection by third-party verification units, and all of them achieved excellent results: the relevant inspection results are in compli- Depart of Health of Taipei City, Taichung City, ance with the Food and Drug Administration Yilan County, Hsinchu County, Miaoli County, regulations. An-Shin also cooperates with Changhua City, Yunlin County, Chiayi the private inspection unit-SGS to set up an County, Kaohsiung City undertook onsite exclusive platform for inspection reports. All inspected food and beverage stores within inspection reports of ingredients will immedi- its jurisdiction. All An-Shin’s stores were ately be disclosed, and customers can verify awarded with the “Excellent” grade, the food sourcing via QR code link at anytime, to certification rate is 100%. As of this year, of ensure food safety. the 275 stores nationwide, 202 have Figure 5-40. Figure 5-41. obtained the GHP Excellence Recognition Bulletin Board in MOS burger QR Code Link for Food inspection (Note 14)." stores Reports

(Note 14) The data is mainly based on the number of An-Shin’s stores in each county and city registered for revaluation in 2019.

64 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

According to Article 9 of the Food Safety and Health Management Law, the mandatory disclosure of the traceability system should be established. An-Shin has been committed to maintaining the food safety of customers and improving the management of food hygiene. Although not mandatory, An-Shin proactively includes traceability within our product management. There is also a product quality management database, through which the food sources are safely managed to ensure that the source of the goods and raw materials is clear. In the future, we will continue to strengthen the traceability management of ingredients and provide safer products to our customers. Table 5-8. Strengthen Traceability Management and Implementation Progress

Item Focus Implementation

Proactively cooperate with regulations to revise food allergen labeling, voluntary labeling, and require suppliers to disclose- Although An-Shin is not required to tracks the traceability system as complete allergen information on the product packaging. defined in Article 9 of the Food Safety and Health Administration Product Speciﬁcation Law, we voluntarily check the self-developed new ingredients (Note Content Checks Investigate the logistics industry's on-site inspection project for t he packag ing label of imported goods. 15) (Note 16). In 2019, a total of 49 of food quality specifications was Supplier traceability is analyzed and disclosed until third-tier reviewed. According to its food quality specifications, 48 materials suppliers(Note 15). were traceable to third-tier suppliers, with a rate of 98% (Note 16).

Certificate of Origin (Import License/Customs Declaration Of the 49 self-developed new ingredients in the 2019 new review, 47 Imported Form) (Note 17). items contained foreign raw materials (Note 17), and 47 inspections Materials Check Proof of radiation inspection (specific foods in a specific of certificate of origin related to the raw materials have been com- area) (certified by a radiation inspection agency officially pleted, accounting for 100% of the items containing foreign raw ma- published or certified by Japan). terials.

Bulk materials, flour products, oil products, mandatory inspection targets. Aquatic heavy metal, volatile salt ground state nitrogen test. Pesticide residues of agricultural products and test indicators for mycotoxins. For the 2019 annual risk-hazard substancesoutsourcing test (Note Animal drug residues and antibiotic test labels for processed 18) a total of 158, the number of qualified pieces 155(Note 19), with meat products. a pass rate of 100% after tracking and counselling. Ingredients Monitoring The plasticizer for the dessert and beverage products is inspected. The standard for the testing of glycogen alkaloids in frozen French fries.

For the 2019 food ingredients, a total of 300 self-administration General/frozen food hygiene standards: total bacterial inspections were carried out, and the product qualification rate after count, E. coli population, E. coli. re-inspection was 100%.

Implementation of compulsory inspection andself-management requires independent testing by aquatic products, dairy A total of 198 self-inspection reports for 2019 annual regular food products, meat processing, edible oils and fats, and regularly suppliers were obtained. provides safety independent inspection reports (Note 20).

（Note 15）The self-developed new food inspection department will review the first use of the cooperative development of the supplier, the re-sale of the old raw materials (food ingredients), the formula change, and the provision of the product quality specification, excluding the limited store sales, Non-MOS brand sold and used in stores, as well as ingredients for fruits and vegetables. （Note 16）At present, the traceability of raw materials is graded according to the ingredients. Each ingredient has a quality specification. Each specification is aimed at exposing third-tier information. For example, An-Shin's ingredients include tomatoes, meat, bread, etc. (first tier), which will be traced back to the suppliers of meat (second tier) and upstream of suppliers (third tier). Some agricultural raw materials (such as rice and carrots) are difficult to trace back to the third tier because the suppliers purchased them from the fruit and vegetable collection market. （Note 17）The relevant certificate of origin may include an import declaration, import permit, additive license or an inspection certificate/report. （Note 18）Risk-hazardous substances refer to the inspections in accordance with the hygiene standards items in the products announced by the Food and Drug Administration of the Ministry of Health and Welfare. （Note 19）Refers to the supplier’s products that pass the Sn-Shin’s checks and meet the sanitation standards announced by the Food and Drug Administration of the Ministry of Health and Welfare. The pass rate is 98.1%. （Note 20）Edible oils and fats, meat processing, dairy processing, and aquaculture processing industries are required to be carried out quarterly or semi-annually or batch inspection of raw materials according to law.

MOS CSR Report 65 5 Food Safety Responsibility and Environmental Sustainability

5.6 Store Sanitary Checks The An-Shin Quality Assurance Division continues to conduct sampling inspections for MOS stores Enter Material throughout the year (Note21), and to inspect the hygiene quality, water quality, conditioning equipment, Manage- stores ment surface application, temperature and each of the foods sold by each store. The methods of sampling

inspection follow the Food Safety and Health Management Law and the Good Food Hygiene Standards, to Environ- Equipment Personal mental and Sanitation carry out the sampling inspection of sanitary operations with reference to the food safety management Water and product quality inspection Sanitation Instrument (must meet satisfactory standards) system and the important control point procedures for hazard analysis. within 72 hours Reinspection Equipment Except for the first quarter water quality inspection (including ice, filtered water, tap water), the total and RReply with improvement Instrument number of shops in the second quarter to the fourth quarter that were above level "Good" (Note 22) was

97.7%. The second qualification rate of re-examination of the "to be improved" shops reached 100%. If within 2 weeks Unsatis- the store does not reach satisfactory levels (Note 23), the Quality Assurance Dept. will immediately ask the factory Stores

store to perform the nessacary improvements, improve cleaning and disinfection operations, and notify the Quality Assurance Dept.

operation supervisor to confirm the changes. The Quality Assurance Dept. will then enter the store for Reply within 2 weeks

re-inspection within 72 hours, and will issue a special visit report with improvement suggestions and con- Food Inspection Center on progress Report to tinue to track progress until the store passes inspection. In response to the inspection results, in addition Evaluation and to regularly tracking the improvement progress of the store, we will also conduct small seminars, and high- Unsatisfactory proposals light the key points of food safety and hygiene. It will also provide auxiliary tools through the cloud system product for improvement and drinks to provide understanding for shop partners and review standard operating procedures (SOP) to improve Notice food preservation and product process safety. Through the course discussion and the cloud system assistance, the effectiveness of the annual health sampling inspection can be improved. Pathogens Improve- Improve- (Note 21) Including the first quarter water quality sanitation inspection and the second to fourth quarter comprehensive sanitation sampling, ment ment except for some shops to arrange operations due to suspension of business, withdrawal or new store opening. improvement notice within The results of the random inspection are divided into 4 levels: perfect, excellent, good, and to be improved. The shop to be (Note 22) 24 hours improved will also open a special visit report and strengthen the counseling until the re-examination. (Note 23) Shops that have not reached the level of good quality shall not prepare a large number of orders before the re-examination, in Figure 5-42. Store Inspection Process order to maintain food hygiene and safety.

Column Food Safety & Legal Compliance Seminar - Guidelines for Good Food Hygiene

Through courses and professional lectures, store managers can better understand the focuses of food production, such as food preparation, appliance cleaning, personnel health management, and environmental sanitation requirements, leading store managers to extend this spirit to the store’ s employees and operations. In 2019, An-Shin held 5 internal training sessions with a total of 143 attendees. We also implemented training seminars approved by the health authorities to conduct special lectures on food safety, and hygiene management regulations and food safety standards, where a total of 276 people participated in 5 seminars. We firmly believe that through third-party certified professional teachers and teaching materials, the employees of Figure 5-43. Figure 5-44. Figure 5-45. An-Shin can truly grasp the latest food regulations, deepen the food risk management Group Dicussion Invited Lecture Internal Taining ability of the management of the store, and improve the knowledge of food hygiene and safety, thus effectively manage food safety risks.

66 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

5.7 Climate Change and Energy Management GRI 201-2 In response to the potential crisis of climate change and energy supply, An-Shin analyzed economic, social, and environmental aspects and actively implements and updates projects related to energy saving, carbon reduction and water saving. These projects mitigate climate change risk and develop low-carbon vegetable food products and services. To strengthen climate resilience and establish a culture of sustainable development, the World Economic Forum (WEF) announced “The Global Risk Report 2019” and stated that extreme climate and natural disasters as the primary risks. In response to the impact of climate change on business operations and the disclosure of specific information on climate change, An-Shin also began to conduct business review, risk identifications and assess financial impacts by climate change in order to better reduce risks and seize opportunities.

Table 5-9. Identify Risks of Climate Change Table 5-10. Identify Opportunities of Climate Change

Type Identify Risks of Potential Financial Related Management Identify Potential Finan- Climate Change Impact for An-shin Measures Type Opportunities of cial Impact for Related Management Review relevant laws and regulations on Climate Change An-shin Policy Exposure to Increased costs due to food safety, labor, environmental protec- and litigation fines and judgments. tion, etc. to reduce the possibility of Regularlon-site store services Legal accidental breach (refer to page 69, 91) Improve work envi- and HDCS inspections to improve the safety and health of The rise of the delivery ronment safety, Resource Use of more employee satisfac- the working environment, and Changing platform and changes in Self-built delivery team, provide food improve production process. customer consumer habits have led delivery service, increase customer Efficiency efficient modes tion, reduce costs, of production increase produc- The Product Development Dept. behavior to a drop in the dine-in- consumption (refer to page 43) regularly updates the usual prod- revenue. tion capacity, and increase revenue. ucts and develops simple prepa- Tran- Market ration methods to improve the Establish environmental control plant efficiency of product production. sition Increase Increasing production factory to produce red oak lettuce cost of costs due to more and butter lettuce to reduce the pos- expensive raw materials Cooperate with Participate in government incen- raw sibile harm of rising raw material government subsidy tive programs to develop new materials and the rising expense of costs due to abnormal climate (refer waste disposal. policies, promote rice products and help increase to page 75) Make good use local agricultural the use of rice outputs. of public sector products and Continue to renovate existing Respond to the media immediately subsidies and replace ifficient stores and replace old equip- once important events related to the incentives. equipments, and ment. Unable to meet the company occurred to reduce the Markets apply for subsidies Gradually replace old equipment Impact on negative image impact. Reputation expectations of stake- for agricultural with efficient ones to achieve the company holders, causing reputa- Actively provide media with new image products and energy purpose of energy saving and tion damage. product launches and important conservation. carbon reduction.(refer to page 68) activities to enhance the company's image. Increased cost of Promote the waste disposal, Increase damage to the Strengthen climate resilience, reduce concept of Promote the concept of cherish- store infrastructure or the probability of business interrup- resulting in higher ing food.(refer to page 71) cherishing food. Natural headquarters system has tion and possible losses, and avoid production costs disasters increased, resulting in the open stores in low-lying areas. New- such as store's tempoary closure comers all take statutory courses of We promoted the three-in-one Acute earth- or suspension, thus disaster prevention, and when natural Changed market green policy, including local Physi- quakes, reduced revenue; difficul- disasters occur such as earthquakes, Products Shift in positioning has ingredients, traceability, and con- typhoons, ty in logistics and distri- typhoons, and floods, we immediate- tracted farming to shorten food cal and floods & reflected changes bution, and interruption of ly set up emergency response cen- consumer in consumer pref- miles. Introduce innovative vege- the supply chain. ters to deal with. Services preferences erences and tables products, such as MOS increased income. Magic Burger and MOS Natsuimi Rainfalls Areas with frequent rain- Magic Burger.(refer to page 49) and fall and low terrain are Avoid store site in low-lying areas Chronic changing prone to flooding, result- and examine the climate change over weather ing in difficulties in store the years. patterns operations.

MOS CSR Report 67 5 Food Safety Responsibility and Environmental Sustainability

5.7.1 Energy Task Force and New Practice 5.7.2 Energy Saving Action GRI 302-4 GRI 305-5 An-Shin established a systematic Energy Management System and set up an "Energy An-Shin Food hopes to enhance the improvement of energy efficiency in stores and Task Force" to review the planning and improvement of the management plan based on headquarters. We aim to achieve the goals set by the company's policies, quantify the energy goals and scope of responsibility as well as ensure scheduled progress and the requirements of performance as much as possible, and achieve the desired goals operation is in line with Energy Management System requirements. In response to the through the improvement of the program. By the end of 2019, An-Shin has a total of official announcement of the new version of the ISO 50001 energy management system 275 stores, and the energy consumption of lighting and air-conditioning equipment on August 21, 2018, our internal conversion was started in July 2019. 6 conversion accounted for more than 50% of the electricity usage of total company. An-Shin workshops and 1 internal auditor conversion course were held, with a total of 198 train- replaced the LED lamps from indoor lighting to outdoor signboards, used environmen- ing hours. Senior executives such as the chairman and CEO also participated in the tally-friendly building materials, as well as energy-saving lighting, air conditioning, training and a total of 33 people obtained the new version of internal auditor qualifica- kitchen and other equipment to make its stores more environmentally friendly. Every tions (Figure 5-49). We prepared and revised 19 SOPs and forms, completed the con- year, through existing shop modifications, air-conditioning machines are replaced. Up version and passed the certification in November 2019. An-Shin took preventative mea- to now, 290 air-conditioned indoor and outdoor machine units have been replaced. By sures and identified 20 internal and external environmental issues. After risk assess- gradually replacing the equipment with poor energy efficiency, our company’ s efficien- ment, issues with a potentially large impact were addressed in the 2019 energy-saving cy is continuously improved, and the purpose of energy saving and carbon reduction action plan. Once the case is closed, we will continue to track and fullow up on the is achieved. implementation status and effectiveness. To ensure the continuous improvement and effective implementation of the energy management system, we passed the new Table 5-11. Energy-saving performance first-phase document review on October 28, 2019, and passed the second-stage formal audit of the SGS on November 11, 2019. The purpose of the Minsheng store to Item Unit 2018 2019 obtain ISO 50001 certification is to become a model store for the implementation of the Air-conditioning 273 290 energy management system. All other stores also follow the same standard to efficient- (including indoor andoutdoor equipment) Pieces ly manage energy use and reduce greenhouse gas emissions to acheive the goal of Estimated electricty savings (kilowatts) kilowatts 1,024,132 1,088,080 energy saving and carbon reduction. Estimated secondary energy savings million joules 3,686,875 3,917,088

e Carbon emission reduction (tons of CO2 ) tons of CO2e 546 554

(Note 24) 2018 coefficients of 0.533kgCO2/kWh. 2019 coefficients of 0.509kgCO2/kWh.

5.7.3 Energy Savings, Reduced Emissions, and Energy Savings, the Automation Pro- Reduced Emissions, gram and the Automation Program In 2019, An-Shin invested in energy 2017 2018 2019 savings, reduced emissions, and Figure 5-47. implemented an automation pro- 16,884 17,635 13,699 Figure 5-46. ISO 5001 Internal Auditor Training gram with a total of $NT13,699 NTD$ NTD$ NTD$ ISO 50001 Certificate thousand number formatting thousands thousands thousands including kitchen display (KD), MOS APP, table ordering, and Table 5-48. Investment in Energy Savings, Reduced robots. Emissions, and the Automation

68 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

5.8 Investments in Environmental Protection and Energy Savings 5.9 Environmental Legal Compliance GRI 307-1 With green environmental protection and the ecological economy gaining popularity, it has a consider- We abide by all relevant environmental protection laws and regulations. able degree of influence on the business philosophy and model of An-Shin. We pay special attention to As of 2019, we had a total of 275 stores in Taiwan. In 2019, a total of 4 environmental issues, advocating for green operation of stores, establishing a green business concept, minor breaches with a total fine of NTD$120 thousands. We investigat- and adopting a green business model. For An-Shin, green operations are no longer just expenditures ed the reasons behind those breaches throughly and implemented and investments but a new source of wealth. Measuring environmental expenditures can track and ana- countermeasures to prevent similar errors from recurring. lyze the costs of environmental protection or environmental impact reduction. In addition to assessing the efficiency of environmental protection measures, it also provides useful analytical information for internal cost-effectiveness. For example, the drainage unit of the oil tank separates the oil and other Table 5-13. Cases that violate environmental laws insoluble substances in the discharged water to prevent the kitchen waste and oil from polluting the ditch. We also use water-washing and electrostatic exhaust devices to filter emitted air, reducing soot Violation Deseription Improvement and odor. In 2020, An-Shin will continue to strengthen the use of oil filters, cleanliness of oil fume equip- Taichung Daye Store ment, and increase the purchase and usage of electrostatic smoke extraction equipment. was fined NTD$ 16,000 for failing to update the Failed to update the After receiving the information of the fire fire protection manager notification, An-Shin protection manager information wthin the completed the Table 5-12. Investments in environmental protection and energy savings deadline due to the application and sub- within the prescribed Amount of investment change of store man- mitted on time in Item (thousands) period due to the ager. 2019. Description Item Description change of the manager. 2017 2018 2019 Materials and Non-reusable testing kits, and third-party inspection 2,506 3,646 3,044 Product Due to the public's Inspection Inspection expenses, including staff salaries and hardware 6,762 7,027 8,082 report, and was inspect- Pingtung Zhongzheng ed by the Environmental Immediately ask PLA certified packaging 9,470 11,593 17,853 Store's air detection Protection Agency and contractor to add additional fume Environmental exceeded the control sent for inspection by Photocopy paper：using FSCTM certified paper and soybean-based ink 98 96 87 means of functional test- treatment equip- purchases standard and was ment (electrostatic fined NTD$ 100,000. ing, which was judged to Office Paper：using PEFC certified paper - 67 81 exceed the standard machine, UV ozone value. system). Waste disposal 15,171 16,996 19,428 Oil filter equipment cleaning 585 406 586 Cleaning Sewage from Banqiao The kitchen floor oil and Waste Smoke extraction equipment cleaning 255 416 681 Guanqian Store was interception trough Completed floor Management discharged from the sinks, causing the oil repair by filling, oil Environmental decorations (plants) 1,304 1,441 1,616 road, and the Environ- interception trough intercepting groove mental Protection waste water pipeline to re-application, and 980 1,222 1,445 Waste and recycleables Bureau had filed a fine be damaged, causing the pipeline connec- sewage to leak out of of NTD$ 2,400. tion. Cleaning Smoke extraction (static motor and UV systems) 9,907 1,701 4,098 the ground. and Waste Waste disposal station 594 297 320 Adjust the pickup Energy Saving 5,273 9,098 7,765 Energy-saving equipment Nanjing Guangfu Store On July 31, 2018, the time of the waste waste was placed at removal contractor Prolong asset garbage waste of Nan- the door, and the jing Guangfu Store was to 11 pm since and Reusable equipment 4,401 1,123 4,211 August 2018, and equipment life Environmental placed in front of the store and caused the the removal conn- Protection Bureau had tractor will directly Green product filed a fine of NT$ sewage leakage. Resi- Electronic invoice 3,039 2,975 2,906 dents report the case. carry it away and purchases 1,200. elimite the problem of garbage landing. Total 60,345 58,104 72,203

MOS CSR Report 69 5 Food Safety Responsibility and Environmental Sustainability

5.10 Energy and Greenhouse Gas Management GRI 302-1 GRI 302-3 GRI 305-2 GRI 305-4 We use 100% PEFC In 2019, our total electricity usage was 40,242 thousand kilowatts, and our sales revenue photocopy papers in the Figure 5-50. office and use 100% Figure 5-49. was $NT 5,404,205 thousand. Therefore, our sales density was 7.45 kilowatts/thousand PEFC Certified Logo Carbon Footprint NT in sales revenue, which demonstrates that we have increased our electricity efficiency light-weight product EPA certified Label by 1.6% comparing with last year. carbon footprint label Table 5-15. Paper Usage Table 5-14. Electricity usage and greenhouse gas emissions photocopy papers in Item Unit 2018 2019 Item Unit stores, and the green- General photocopying 2017 2018 2019 sheets 900,000 0 house gas emission is paper usage Electricty 37,797,246 39,134,926 40,242,150 kilowatts e 5.76 tons of CO2 . PEFC certified Paper sheets 400,000 472,500 Secondary energy million joules 136,070,086 140,885,734 144,871,740 Carbon Footprint Product density million joules/production quantity 1.38 1.37 1.42 0 800,000 EPA certified Papers sheets Service density million Joules/service quantity 4.01 3.98 4.06 Sales density kilowatts/sales revenue in thousands 7.83 7.57 7.45 Electricity density kilowatts/number of stores 146,501 147,679 146,335 5.12 Water Resources Management GRI 303-1 Electricity density kilowatts/square meters 753 749 781 To convey the concept of health and hygiene, we have promoted washing hands Category 2 greenhouse gases emissions tonnes CO2e 20,940 20,859 20,483 before and after meals, which is also convenient for parents to teach children clean Greenhouse gases tonnes CO2e/sales 0.0043 0.0040 0.0038 and healthy habits. An-Shin was the first chain store in Taiwan to set up sinks in dining emission density revenue in thousands area. All the water resources we use will go through a high-standard filtered water (Note 25) Secondary energy is purchased electricity, and all statistics include headquarters and all stores. system to clean the utensils and wash the food, reducing any possible pollution fac- Greenhouse gas emissions only emcompass category 2 gas emissions. tors. An-Shin uses fresh ingredients which were directly delivered to the store from (Note 26) The carbon emission coefficient of electricity is calculated by 0.554 kgCO2/kWh in 2017 and 0.533 kgCO2/k- Wh in 2018 and 0.509 kgCO2/kWh in 2019. farms which causes us to use more water to clean the ingredients than our competitors. In order to reduce the waste of water resources, we will reinforce the management and replacement of water-saving facilities in stores and adjust the flow of faucets 37,797,246 39,134,926 40,242,150 for guest sinks. The newer resturants also use toilets with water-saving systems. In 2017 kilowatts 2018 kilowatts 2019 kilowatts 2019, a total of 30 toilets with a water-saving function were installed, where each flush Elec- Total greenhouse gas Elec- Total greenhouse gas Elec- Total greenhouse gas can save up to 50-67% of water than a normal toilet. tricity tricity tricity usage emissions usage of usage emissions usage of usage emissions usage of 2017 2018 2019 20,940 tons of CO2e 20,859 tons of CO2e 20,483 tons of CO2e General General General WaterSense WaterSense WaterSense 5.11 Paper Consumption Management Labeled Toilets Labeled Toilets Labeled Toilets Numbers13 Numbers 8 Numbers30 To compensate for the large amounts of paper, energy, and water the office uses, we actively promote office smart technology and paperless systems. In 2019, An-Shin Foods Table 5-16. Water Density and Managemen used a total of 472,500 copies of PEFC Certificatied paper. (The PEFC Forest Validation Item Unit 2017 2018 2019 Accreditation Program is an international non-profit, non-governmental organization Water usage tons 1,163,640 1,248,343 1,290,691 established in 1999. It is a third-party independent agency that promotes the management Product density 0.012 0.012 0.013 of sustainable forests and is the world's largest forestry certification system.) An-Shin aims tons/production quantity to solve problems facing the global forest, promote sustainable development of forests, Service density tons/service quantity 0.034 0.035 0.036 and reduce the environmental impact of operations to support sustainable forest practic- Sales density tons/sales revenue in thousands 0.24 0.24 0.24 es. The carbon footprint of a product is the amount of greenhouse gas emissions directly Water usage tons/stores 4,510 4,711 4,693 and indirectly generated during the entire life cycle of the product. Therefore, An-Shin took Water density tons/number 23 24 25 a step further to use 70 lb. paper instead of 80 lb. for printing in stores, with a total of 800,000 Carbon Footprint EPA (Environmental Protection Administration) certified sheets. (Note 27) Water usage is estimated in reference to our water bill and unit price. 70 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5 5.13 Waste Treatment In order to reduce the negative impact of business practices on the environment, An-Shin Food actively promotes sustainable waste management. The waste disposal policy focuses on “original source waste reduction,” and promotes green operation and recycling to effectively handle resources.

Use non-fluorescent whitening agent Obtain the "Carbon Delivery Electric Won the Model Award newsprint for table paper, and the store’s Footprint Label Product Car Program was for the promotion of publicity printed materials are all printed Certificate" issued by recognized by electric locomotives by with soybean ink, reducing the impact on the EPA, and is the first "Carbon Reduc- the Industrial Develop- ment Bureau, Ministry of environmental protection. fast food company with tion and Environ- a carbon footprint certi- mental Protec- Economic Affairs fication. tion" by EPA. Since 2000 2005 2007 2011 2013 2014 2016 2017 2019 Introduce porcelain dine-in The plastic packaging container is The Minquan West Store and The FSC certified paper is Won the "Food Cherishing and Contri- hot cups and soup cups to completely replaced with PLA prod- the Neihu Gangqian Store won used in the annual reports, bution Award "by the FDA ucts made of corn, which can be effectively reduce the use the first and third places shareholder meetings and Cooperating with the EPA to of paper products and naturally decomposed without pro- respectively in the "Taipei City board meeting manuals, ducing toxic substances, and promote the"Plastics Limita- plastics. Catering Industry Air Pollution to support responsible tion Policy", 69 stores intro- reduce the generation of toxic gases Prevention Equipment Combi- sourcing and sustainabili- during combustion. duced the new cold drink cup nation Award. ty. cover to replace the disposable plastic straws.

First time to participate in the "Food Cherishing and 5.14 Waste Reduction at the Source Column Contribution Award" and recognized by the FDA An-Shin’s "MOS Eco Cup and the We Love Earth Relay" has been promoted for more than 7 years. When cus- An-Shin makes flexible purchases, uses ingredients based on the quality grade, tomers bring their own cups for a drink, they will be sets storage conditions, establishes storage management, and properly process- rewarded with one point and a customer with six points es and prepares food. We efficiently use food materials and avoid waste, and can redeem a drink worth 40-45 NTD (coffee, black tea, evaluated the amount before cooking. We cherish food without overselling and hot cocoa, Cola, Sprite etc). A total of about 134,000 record and control food waste. For the first time in 2019, An-Shin was invited to drinks were exchanged, reducing the use of more than participate in the "Food Cherishing and Contribution Award" organized by the 804,000 paper cups and lids. Figure 5-51. MOS Eco Cup Poster FDA, demonstrating the effective use of food ingredients and the performance of reducing waste. An-Shin is the only fast food chain in the industry to win this recognition.

Drinks Drinks Drinks Rewarded Rewarded Rewarded Waste Reduction Reduction 122,000 cups 101,000 cups 134,000 cups of Waste Manage- ment Paper cups and Paper cups and Paper cups and lids Reduced lids Reduced lids Reduced 610,000 505,000 804,000 Special Acts

2017 2018 2019 Figure 5-54. Figure 5-53. Evaluation Criterias 2019 Food Cherishing and Contribution Award Figure 5-52. MOS Eco Cup Rewards Card MOS CSR Report 71 5 Food Safety Responsibility and Environmental Sustainability

GRI 306-2 5.14.1 Reduction and Recycling Performance Table 5-17. Recycleable Waste An-Shin follows the “Fast-Food Chain Recycling and Disposal Regulations” and “Business Waste and Clean-up Management Regulation” in which records on the Item Unit 2017 2018 2019 amount of general waste, resource waste, and waste oil generated by the store every day are kept. It must be recorded regularly and reported to headquarters on a Recycleable waste tons 1,613 1,256 1,792 monthly basis. In addition, our dining areas are equipped with various signs for recy- tons/ Product density cling instructions. In 2019, An-Shin’ s general waste was 4,302 tons, the amount of production quantity 0.000016 0.000012 0.000018 recycleable waste was 1,792 tons, and the amount of waste oil was 529 tons. All tons/ Service density 0.000048 0.000035 0.000050 waste was disposed by EPA–approved contractors. service quantity Sales density tons/sales revenue in thousands 0.00033 0.00024 0.00033 tons/ Recycleable waste density number of stores 6.25 4.74 6.52

Recycleable waste density tons/ square meters 0.032 0.024 0.035

Table 5-18. General Non-reusable Oil

Item Unit 2017 2018 2019

Non-reusable oil tons 482 485 529

Product density tons/ 0.0000049 0.0000047 0.0000052 production quantity Service density tons/ 0.000014 0.000014 0.000015 service quantity Figure 5-55. Figure 5-56. Figure 5-57. Sales density tons/sales revenue 0.000100 0.000094 0.000098 Recycling bin and paper Signs for Recycling Instructions Records of General Waste in thousands cup recycling area Non-reusable oil density tons/ 1.87 1.83 2.83 number of stores Non-reusable oil density tons/ 0.010 0.009 0.010 square meters To ensure the quality and hygiene of the fry oil, each store removes oil residue and filters oil during off-peak hours and after business hour with the oil tester (Note 28) (Note 29) Our waste statistics are based on monthly averages to determine store estimates to confirm the quality of the oil. Once reach the exchange standard, the used oil will be replaced and properly kept. All of An-Shin’ s waste oil is handled by EPA-approved disposal companies to avoid reuse.

2017 2018 2019 (Note 28) An-Shin will replace the oil once any one of following criteria was met: the total we had we had we had polar compounds is more than 21%, the color of the oil is too dark, the oil has a total of a total of a total of sticky stains, the oil smears odor, or the oil temperature is lower than 170 ℃ 6,208 6,157 4,302 tons of waste tons of waste tons of waste

72 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

5.14.2 Green Store Evaluation 5.15 Green Environment The Green Store Award is the project of EPA New Taipei City to evaluate the chain fast In addition to providing customers with delicious meals, An-Shin hopes to pro- food industry, retail sales, supermarkets and catering industry on source reduction, food vide a comfortable environment by using green decorations. Planting flowers deeds, resource recycling, clean surrounding environment, promotion of environmental and trees can not only improve the environment by absorbing CO2 gases, but awareness and energy saving. An-Shin actively participates in this event every year to also help customers to feel happy and alleviate stress. We regularly ask florists enhance the environmental awareness and encourage consumers to practice environmen- to help maintain the greenery around our stores. tal protection in daily life. We are well aware of the greater the ability, the greater the responsibility, and hope to reduce waste and save energy through our influence.

Number of Stores with Green Store Awards 27

Source reduction 9 8

2017 2018 2019 Promotion of Action environmental of Cherish protection Speciﬁc Figure 5-59. and energy food Number of Stores with Green Store Awards saving measures for environmental Figure 5-61. protection Decoration combined with arts and greening maintenance

Clean surrounding Recycle environment

Figure 5-58. Specific measures for environmental protection Figure 5-60. Group Photo of Green Store Awards We participated in the Green Store Evaluation in 2019 and a total of 27 MOS Burgers were selected for recognition. We proudly showcase 9 five-star stores (Sanchong Zhengyi Store, Figure 5-62. Xinzhuang Zhongping Store, Banqiao Xinpu Store, Shuangshi Store, Banqiao Guanqian Dining area combined with holiday-themed decoration Store, Shulin Xuecheng Store, Zhulin Store, Zhiguang Store, Yonghe Yongan Store), 8 four-star shops (Taishan Mingzhi Store, Xinzhuang Longan Store, Sanchong Xuhui Store, Xinzhuang Fuda Store, Tucheng Yumin Store, Beixin Store, Zhonghe Century Store, Luzhou Changrong Store), and 10 three-star stores (Sanchong Chongxin, Sanchong-Chongyang shop, Xinzhuang Zhonggang shop, Xinzhuang Xintai shop, Xindian Zhongzheng shop, Nanshijiao shop, Danshui Zhuwei shop, Linkou Renai shop, Linkou Zhulin shop, Xinzhuang Figure 5-63. Festive Green- Wuquan shop). Through our own supply-origin resource reduction, energy-saving facilities ing of the office and green consumption strategies, we have achieved the goal of reducing resources and waste for the betterment of our society.

MOS CSR Report 73 5 Food Safety Responsibility and Environmental Sustainability

Column Column Taijiang National Park and Environmental Invite You to Visit the National Park Education Activities

MOS stands for mountain (mountain), ocean (sea), and sun (day). We The Headquarters and visitor center of the Taijiang realized the mission of "Contributing to Humanity and Contributing to National Park covers an area of 6.6 hectares. It is the Society", integrate corporate social responsibility with our strategies first visitor center in Taiwan to be constructed in a and encourage employees and consumers to care for the earth. "tall house" on the fish farm. It is also the 8th national In 2019, we cooperated with the Construction and Planning park in Taiwan and the only wetland. To advocate the awareness and actions of wetland conservation, "Tai- Agency (hereinafter referred to as "the CPA"), Ministry of the jiang Wetland School" was established. Nearby Sicao Figure 5-65. Interior to issue the "Taiwan National Park Travel Passport", is the hometown of mangroves and the species and Group Photo of Taijiang which introduces the beauty attractions and trail information National Park Visit the amount of trees are the highest in Taiwan, which and encourages people to enjoy their travels in national is known as the Taiwan version of the Amazon River. parks. During November 8th~30th, 2019, people showed It has a beautiful landscape and rich ecology. You with "Limited Edition Taiwan National Park Travel Passport" can also found the remains of military fort and and limited stamps can enjoy special discounts in designat- custom. On May 19, 2019, our chairman and CEO ed stores. led the employees to visit Taijiang and received envi- More discount on MOS coffee are also available for pass- ronmental education. port holders during January 1st~ December 31th in 2020. Figure 5-66. We continue to exert our corporate influence and encour- Figure 5-64. Environmental education in age people to appreciate the nature together. Limited Edition Taiwan Taijiang National Park National Park Travel Passport

Column World Ocean Day-Beach Activities Column Respond to Plastic Limitation Policy

Every year on June 8th is the "World Ocean Day". An-Shin The EPA promotes the "plastic restriction policy". also conveys the spirit of MOS (Mountain, Ocean, Sun) From July 1, 2019, the public sector, public and through practical actions in response to the United Nations’ private schools, shopping malls, department stores prevention of plastics from polluting the ocean. On June 2, and fast-food chains are all prohibited from providing 2019, our mountaineering club members were gathered to "disposable plastic straws" for internal users. Since participate in the "Sea Fun, Energy Saving and Carbon Re- Figure 5-67. 2000, all of the MOS Burger stores have introduced duction Neat Beach Activity” organized by the EPA at Clean-up and Line up in the internal porcelain hot cups, soup cups, etc., which Dingliao Beach, Linkou District, New Taipei City. A total of turtle formation effectively reduces the use of paper products and 248 people participated in the clean-up of 1,134 kg of gen- plastics. However, in response to the plastic limit eral waste, and 51 kg of recyclable resources. The car- policy, An-Shin replaced the plastic straws with PLA bon-reduction transportation, simplified ceremony and straws made of corn starch. PLA straws can be natu- reduced disposable items were also deployed during this rally decomposed and will not produce toxic sub- event. At the same time, to reduce the interference of activi- stances, reducing the generation of toxic gases ties on the coastal ecology, the participants manually during combustion. Starting from November 2019, Figure 5-69. removed the garbage to avoid the water bird brooding area. Figure 5-68. cold drink lids are also introduced to 69 MOS Burger Strawless Lids for cold drink Group photo of beach stores to promote environmental protection and plas- clean-up tic usage reduction.

74 MOS CSR Report 5 Food Safety Responsibility and Environmental Sustainability5

Special Process of An-Shin Smart Farm： Report First Fast Food Chain with Smart Plant Factory temporary permanent nursery planting planting harvesting inspection Increasingly frequent occurrences of extreme climates and the continuing increase in the global population, pests, and diseases have brought great challenges to the world’ s agriculture, accompanied by problems of food shortages and pesticide residues. "Plant factory" is one of the few solutions at present. In order to ensure the stable supply of ingredients and solve the problems of pesticide residues of soil farming, we pioneered the establish- Nursery Temporary planting Permanent planting ment of the "An-Shin Smart Farm" in July 2019. To avoid the disturbance on Seeds, cotton for seedlings To improve the survival rate After the seedlings have current contracted farmers, An-Shin plans and uses butter lettuce and red oak and water are used for nurs- of seedlings, the seedlings grown to a certain degree, lettuce instead of imports to reduce food miles. Butter lettuce, also known as ery operations. After the are temporarily concentrat- the plants will be colonized seeds have successfully ed in this area under the to a fixed place, and contin- Boston lettuce, and Italian lettuce, is native to Europe and has no bitter taste, germinated into seedlings, conditions of environmental ue to provide environmental suitable for lettuce. Red oak lettuce is native to the United States and is rich in they will be concentrated in control and supply of nutri- control and nutrient solution the temporary planting area ent solution to monitor the and other growth conditions vitamin C and dietary fiber and tastes slightly bitter and very delicate. After for further care. growth situation. until they can be harvested. three months of adjusting the planting environment conditions and the designed quality and taste, the ingredients were used in the MOS Magic Nat- sumi Burger since October 2019. It is expected that the An-Shin Smart Farm will continue to produce more vegetables as new ingredients. An-Shin Smart Farm adopts fully artificial light source and implements environmental condition control, including temperature, humidity, light, wind speed, nutrient solution, and carbon dioxide. We gathered the opinions of professionals and cooperated with Agricultural Production Department of NPUST ( National Pingtung University of Science and Technology) to ensure the plant's health Harvesting Inspection and formulate best field and equipment arrangements. From nursery, tempo- After the plants reach the optimal level In accordance with the An-Shin’ s hygiene and meet the harvesting specifications, standard and the pesticide residue toxicity rary planting, permanent planting, to harvesting, each plant is carefully taken harvesting operations will be carried out. standard of the Council of Agriculture of the care of by staff. An-shin keeps driving industrial innovation, hoping to become Executive Yuan, the inspection is conducted to ensure the safety of food ingredients. the leader of the fast-food chain farm. In addition, a third-party inspection were commissioned every six months to check 380 pesticide residues to strictly controls every quality.

MOS CSR Report 75 5 Food Safety Responsibility and Environmental Sustainability

Special Report GHP Excellence Recognition

The government's credible "Catering Industry GHP Assessment" has become an Taipei City 107 stores important dietary index for consumers. An-Shin Food is committed to food safety and New Taipei City 47 stores implementing proactive management of food hygiene. Besides regularly sending products to the food inspection center, An-Shin also actively participates in the "Catering Hsinchu County 3 stores Industry GHP Assessment” organized by the Department of Health in different counties 3 and cities. 2019 GHP Assessment by Taipei City aimed to enhance information com- Miaoli County stores Yilan County 3 stores pleteness of the registration, the source of food ingredients, the hygiene practice, the 25 sign hanging of health personnel, waste management, strengthen the prevention of food Taichung City stores poisoning, and raw material management, and require registration on ingredients on the Changhua City 2 stores specified website. 6 aspects of An-Shin’ s proactive management, including ingredients hygiene management, personal hygiene management, equipment management, environmental sanita- Yunlin County 4 stores tion maintenance, process and quality control, and food safety information disclosure, Chiayi County/City all are in line with Good Hygiene Practice (GHP). An-Shin actively participated in the 4 stores assessment, and the results are as follows: 2 On November 8th, 2019, Taichung City ‘s FDA announced that 97 restaurants received Penghu County Tainan City stores 1 GHP Excellence recognition, and among them were An-Shin’ s total 25 restaurants that store received this standing, with 100% certification rate (Figure 4-2.). The certification infor- Kaohsiung City 1 stores mation was published on the website of Food and Drug Safety Department of Taichung City (https://www.fds.taichung.gov.tw/) at the same time. On December 16, 2019, the Department of Health of Taipei City released the results of a total of 133 evaluations fast food chain operators in its jurisdiction. Among them, An-Shin's 107 stores in Taipei City were awarded "Excellent" certification accounted for 80.45% of excellent restaurants. We won the most awards in this assessment, with a Table 5-22. Six Aspects of Proactive Food Sanitation Management certification rate of 100%. This certification information is also published in the Taipei 6 Aspects Proactive Food Sanitation Management City website (https://www.gov.taipei/Default.aspx). ingredients hygiene Strictly control the storage of incoming goods, the preservation of As of this year, among the 275 stores nationwide, 202 of An-Shin’ s store have obtained management ingredients and the management of the use of ingredients. the certification. Our performance has been recognized as excellent practice in Taipei personal hygiene Review employee's clothing appearance, hand washing process, City, New Taipei City, Yilan County, Hsinchu County, Miaoli County, Taichung City, Chan- management disinfection management, strengthen food poisoning concept ghua City, Yunlin County, Chiayi City, Chiayi County, Tainan City, Kaohsiung City, and regular health check every year. equipment Focus on the sanitary management of cooking appliances, equip- Penghu County (Note 30), with a 100% certificate rate(Note 31). management ment sanitation, rags and temperature management. environmental (Note 30) The data is based on the number of stores at the time of the registration for the assessment in 2019. sanitation maintenance Clean and maintain toilets, manage waste and waste oil treatment. (Note 31) In 2019, An-Shin joined the "Catering Industry GHP Assessment" organized by the Dept. of Health in different counties/cities, and all participating stores obtained the recognition. Due to different assess- process and Regularly check the stores and confirm compliance with safety ment intervals or no available assessment programs, An-Shin didn’ t obtained recognition in Keelung quality control and health standards. City, Taoyuan City, Hsinchu City, Nantou County, Changhua County, Hualien County, Taitung County, food safety Pingtung County, Kinmen County as of December 31, 2019. Completeness of registration information of food business opera- information disclosure tors, source of food ingredients, hygeine management and health (Note 32) The food safety information disclosure is the additional requirement of Dept. of Health of Taipei City (Note32) personnel signs hanging. for the "2019 Catering Industry GHP Assessment ".

76 MOS CSR Report Contribue to Society 6 & Prosper Together

"Top 10 Happy Enterprises of Catering Industry - Employee 224 female managers to advocate gender equal- Vote Survey " by 1111 Manpower Recruitment Website ity, accounting for 62% of the total management 5,965 employees, with 450 new employees in 2019 positions 3th Taipei Employment Service Award by Taipei City Employ- More than NTD$ 14.01 million in subsidies for ment Service Office employee activities in 2019, an increase of 43% from 2018 Employees of 11 different nationalities to actively promote diversity Number of employees participated in various staff activities in 2019, an increase of 634 attendees compared to 2018 Hired 157 disabled employees, which is 2.6 times higher than the legal requirements The total cost of employee education and training in 2019 is NTD$ 4.63 millions 687 employees are returning workers or over 50 years old, accounting for 12% of the total employees 408 attendees to join newcomer orientation in 2019 Organized 6 "Workplace Experience Camps" with a total of 398 27 basic coffee courses with a total of 559 train- participants, an increase of 3 from 2018 and a 32% increase in ees attendees Systematic statistics have been available since 2015. The accu- Actively cooperate with universities and colleges to stimulate mulated total number of food education participants has An-Shin Lecture Series reached 20,952 Since the "Love Mommy Painting Activity" was held in 2017, more than 5,154 children have participated in this activity Stakeholders

Shareholders Government Agencies Media NGOs Employees

MOS CSR Report 77 6 Contribue Society & Prosper Together

Strategy & Management Approach

Material Topics Meanings for An-Shin Policy & Commitment Mangement Approaches and Eﬀectiveness Evaluation Mechanism 中度/一般主題績效衡量指標 2019年目標 An-Shin formulated and promulgated "Work Employ- We attach great importance to Rules" and "Employee Code of Conduct", com- ee-Employ- employees and hope them to work plied with relevant labor laws and regulations, There are internal SOPs, such as work rules, human resource planning, recruitment needs, er with dignity and happiness, which ensured employees to have reasonable working employee interview and selection, employment notice and probation, etc. Relations promotes employee morale and hours and income, and hope to create a healthy teamwork cohesion. workplace environment.

An-Shin has good relations with all of our employees and suggestions can be placed in the Chair- An-Shin is open to employees of all ages and An-Shin provides a variety of trans- man’ s mailox outside his door, or on An-Shin’s website and facebook. An-Shin also encourages educational backgrounds, and has a "human Employ- parent communication platforms, employees to join clubs and meet each other. rights policy". As long as they are willing to work ee-Man- listens to employee feedback, and and grow with the company, An-Shin is willing to Each partner of An-Shin has regular performance evaluations. Store staffs are evaluated accord- agement promotes a healthy and friendly provide a warm and friendly workplace environ- ing to the "Store Operation and Performance Evaluation Rules", and others are reviewed with the Relations workplace environment to achieve ment. We will understand and deal with any opin- "Employee Performance Evaluation Principles". All employees are assessed and then decide sustainable development goals. ions and ideas reflected by employees timely. promotions, transfers, job remunerations, profit sharies, bonus distributions, extra education and training if necessary, and career path planning.

Social and Compliance with social and Economic economic laws and regulations is An-Shin complied with social and economic laws We set up "Communication Procedures" and each unit will review the socio-economic laws and Compli- the foundation for the steady and regulations, and regularly reviewed the regulations according to its function and responsibility, and then communicate related information ance and growth and sustainable operation relevant requirements of laws and regulations. through internal communication. Regulation of enterprises.

To eliminate inequality in education, we have established a complete education and training system, which is divided into pre-employment training and on-the-job training. Through internal and external training, we foster the development of the company's sustainable operation. We believe that employees are the An-Shin Food has diversified and professional In addition to regular courses in accordance with needs of different positions, we also provides Education most important asset to the com- "Employee Education and Training" to help man- special courses in accordance with corporate vision and strategic goals, including related exter- Social and pany, and provide education and agers and staffs to lead and provide the highest nal training to intensify leadership and competency. Training training to allow them grow with the quality service in a rapidly changing business company. environment. Through the Remuneration Committee and Human Resources Development Committee, An-Shin regularly reviews the salary and promotion system, forms talent development strategies, and combines with performance evaluation to plan the compensation package and career path.

In accordance with the relevant provisions of the Occupational Safety and Health Law, An-Shin submits statistical analysis of occupational accidents every month. Establish a complete report network. Partners who are injured during work, commute to or from The right to life is far more import- work, and other occupational injuries, can report directly to the Safety and Health Group, which Occupatio- ant than the right to work, and labor As an employer, An-shin follows the provisions of triggers the accident investigation and improvement measures, and following recovery tracking al Health safety is the most important labor labor laws, fulfill our corporate responsibilities, and rework assessments. and Safety condition that An-shin and employ- care and protect employees, and states "Safety Compliance with the related regulations, establish information booklets, hold disaster prevention ees shall work together to maintain. and Health policy”. courses for newcomers, provide on-site labor health consultation, upgrade prevention of workplace violence (illegal violations) and workplace psychological injury. According to occupational safety and health regulations and guidelines, implement workplace environmental risk assessment and hazard identification, and include necessary protection measures as routine work items."

Invoice donation boxes are placed in all MOS Burger stores in Taiwan. After redeeming the prizes, Many stores of An-Shin are located all cash are donated to the disadvantaged groups. in the local communities, and we We aim to prosper with the Society, and invite partners of An-Shin to support the charitable dedicate to promote local prosperi- events, such as blood donation. Loacl ty and interact with neighborhoods. Society Participate in community maintenance and clean the space on the left and on the right every day. Over the years, An-Shin it has been Carry out our mission of "Contribution to Humani- ty, and Contribution to Society". Every year on March 12th, Morse Burger celebrates its birthday, inviting all partners and custom- continuously joining social welfare ers to carry out community sweeping activities together. activities, spreading kindness to every corner of Taiwan, and striving Every month, the stores actively initiate food education activities, inviting adults and children to to become a friendly and good learn about food safety, health diet, and practice preparing burgers. neighbor of the community. Each MOS Burger store is the base for community and family, and local organizations can use the space for activities.

78 MOS CSR Report 6 Contribue Society & Prosper Together

Performace Major Topics Indicators 2019 Goal 2019Action Plans 2019 Performance Mid- to Long Term Goal

According to the monthly recruitment Continue to recruit relevant Talents The annual recruitment target is 550. goals, we regularly update job post- In 2019, we recruited 450 people. manpower and provide Recruitment ings. employment opportunities.

Continue to participate in Employee- Campus recruitment activities on cam- The annual recruitment of Participate in various campus recruit- 41 participants to join the campus Employer Recruitment management trainee puses and provide employ- Reations ment events. recruiting activity, with 8 on board Road Show target is 15. ment opportunities to young people.

We held the 4th New Employee Ceremo- Hold the new employee and provide We will continue to hold the Orientation ny and Newcomer Forum In 2019, with a 75 participants are expect- transparent communication channels Orientation Ceremony and Ceremony total of 91 new partners became a family ed in the ceremony. for new recruits. newcomer seminars. member of An-Shin.

HR Evaluation Hold the HR evaluation meeting and In 2019, two HR evaluation meetings were Continue to hold HR Evalu- Social Meeting Semi-annual meeting draft the list of promotion personnel. held and 24 people were promoted. ation Meeting at least twice a year.

Employee- Labor- Continue to hold labor Management Discuss and resolve labor issues and In 2019, 4 labor-management meetings Management –management meetings, at Relations Quarterly review the content of work rules were held and 6 proposals were passed. Conference least once every quarter.

In 2019, 5 remuneration committees Continue to hold Remunera- Remuneration Propose and report salary and bene- At least twice a year were held and 9 proposals were tion Committee at least twice Committee fits measures. passed. a year.

Social and Continue to conduct internal Economic promotion in store manag- Promote compliance with Conduct internal promotion and In 2019, a total of 11 internal announce- Compliance er’ s monthly meeting. Legal compliance labor regulations. labor-related training in monthly ments of labor laws were implemented to and Information sharing semi- Regulation store manager meeting reduce the risk of breach. nars in various districts

In 2019, 560 people completed the new recruit training, 677 people completed the Education Cultivate personnel for Arrange operations traing and H/Q professional training, 890 people complet- Continuously cultivate talents and Cultivate talents domestic and overseas staff education ed the supervisor training, and 677 people for domestic and overseas Training development. completed the general training. The total operation and management. number of hours for the general training is 4,638 hours.

MOS CSR Report 79 6 Contribue Society & Prosper Together

Performace Major Topics Indicators 2019 Goal 2019Action Plans 2019 Performance Mid- to Long Term Goal

Every two months, we promote maternal health in the store Maintenance of nursing room. Promote the protection plan and manager’ s meeting. In 2019, the total number of protected Maternal health Carry out health status classifi- case tracking. Health care and assessment of cases is 23, and 90% of the risk assess- Continue maternal protection cation management. ments have been completed. health protection. Complete 80% of the maternal maternal colleagues. health risk assessment for Physician assists in consultation expecting employees and evaluation.

Continue to track and implement relevant prevention Developed an overwork prevention After the load assessment survey, 2,821 Occupational methods to individual cases. plan, implemented a physical exam- did not need to be interviewed, 11 people Continue prevention of cerebrovascular 80% completion of the ination overage scale assessment, needed to be interviewed, and 385 people occupational cerebro- and heart full-time work assessment and conducted overwork analysis. suggested to be interviewed and arranged vascular and heart disease scale. Job allocation review and improve- to conduct interviews at the monthly disease prevention Hold 1 stress relief semi- ment plan. on-site service. nar/course every six months. Arrange relevant lectures. Occupatioal Social Health and Safety Conduct 1 seminar on preven- Prevention of Implement workplace violence pre- tion of unlawful infringement Workplace vention There are a total of 6 general reports, and Prevention of Workplace every 6 months. Harrassment Conduct internal and external viola- the internal and external risk assessments Harrassment (unlawful Conduct an evaluation survey (unlawful tions assessment of unlawful infringement are continually infringement) during on-site service and give infringement) Arrange related lectures carried out. feedback to the store.

After the survey, there were 3,125 cases with musculoskeletal-related symptoms, Musculoskeletal Disorder question- and a total of 79 cases need more analy- naire for annual medical examina- sis. tion. Prevention of In the second stage, we inquired about 80% completion of of disor- Conduct regular Musculoskeletal Prevention of Musculo- Musculoskeletal the uncomfortable body parts, degree of der confirmation. Disorder questionnaire and provide skeletal hazard hazard disorder symptoms and detailed explana- on-site analysis and suggest tions. A total of 3 cases were investigated improvements. further. After evaluation, we judged the cases are non-work-related hazards.

Improvement Case sharing of occupational Continue to track cases. In 2019, the total follow-up and injury every 2 weeks. Tracking work-related injuried number of accident notifications was 357, Continue to track the investigation of Complete 90% Follow-up employees and improve employ- and 95% of cases have completed the follow-up and investi- accidents tracking and resume-work ees' awareness of occupational follow-up care, job assignment, and gate accidents. assessment injuries rework assessments.

80 MOS CSR Report 6 Contribue Society & Prosper Together

6.1 Happy Workplace & Employee Care

An-Shin posts the latest job openings on the recruitment webpage (Figure 6-2) and wel- Table 6-1. An-Shin employee nationalites comes prospects of all ages and educational backgrounds to join our team. We also formulate human rights policy (Figure 6-1) and invite like-mind people. As long as you have Year 2017 2018 2019 Number proportion Number proportion Number proportion the enthusiasm and creativity, positive attitude and love for service, and is willing to Item （people）（%）（people）（%）（people）（%） work together and grow with the company, An-Shin provides a warm and friendly work- Taiwanese 5,329 98.90 5,658 98.90 5,877 98.52 place environment for you regardless of background or experience. Foreigner 59 1.10 63 1.10 88 1.48 Total 5,388 100 5,721 100 5,965 100

Table 6-2. Employees statistics (Gender and Category)

2017 2018 2019 ITEM Male Female Male Female Male Female

Managers 29 56 36 65 37 64 Staffs 23 53 22 44 21 51 Employees Store managers 93 147 92 151 98 160 Figure 6-1. Human Rights Policy Figure 6-2. Recruitment Webspage （by positions） Store clerks 226 369 230 420 269 363 Part time 1,494 2,898 1,599 3,062 1,651 3,251 6.2 Employee Diversity GRI 102-7 GRI 102-8 GRI 202-2 GRI 401-1 Total 1,865 3,523 1,979 3,742 2,076 3,889 An-Shin helps develop talents, promotes diversity, and welcome partners from different Ordinary (Note3) 1,865 3,523 1,979 3,742 2,076 3,889 countries. Through the profound internal organization structure and personnel system, Employees Temporary (Note4) 0 0 0 0 0 0 we provide internal staff training and overseas rotation opportunities. As of December （by contracts） 31, 2019, An-Shin’ s total number of employees was 5,965, of which 88 were foreign em- Total 1,865 3,523 1,979 3,742 2,076 3,889 ployees, hailing from Japan, Canada, China, Hong Kong, Malaysia, Indonesia, Vietnam, （Note 1）Data collection covers employees in Taiwan. Myanmar, Macau, South Africa, and Philippines. There were no major changes or sea- （Note 2）Full-time and part-time employees as of 2019/12/31. sonal differences from 2018. It is expected that approximately 450 newcomers will be （Note 3）Employees include full-time and part-time employees who sign non-scheduled contracts. recruited in 2020. （Note 4）Temporary employees are employees who sign a fixed contract. In 2019, there were 224 female managers (including administrative positions and operations management positions), an increase of 8 from 2018. At present, female managers # of Female Manager % of Female Manager account for 62% of the total management positions. 80% of our top management team are Taiwanese, with one Japanese executive. Please refer to following figure: # of Male Manager % of Male Manager

400 62 63 62 120% 100% Special 300 Chief Financial Chief 80% President Vice President Assistant to 203 216 224 Officer Auditor 200 60% the Chairman 38 37 38 40% 100 122 128 135 20% 0 0% 2017 2018 2019

Figure 6-3. Nationality of top management team Figure 6-4. Managers Statistics (by genger)

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Table 6-3. Age distribution of employees 2017 2018 2019 Category Below 30 Age 31-50 Above 50 Total Below 30 Age 31-50 Above 50 Total Below 30 Age 31-50 Above 50 Total Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Managers - 6 22 48 7 2 85 2 8 27 54 7 3 101 1 5 30 56 6 3 101 Staﬀs 5 25 17 27 1 1 76 8 17 12 25 2 2 66 5 22 15 26 1 3 72 Store managers 32 68 61 74 0 5 240 34 65 58 83 - 3 243 40 69 58 87 0 4 258 Store clerks 194 265 32 91 0 13 595 184 315 45 86 1 19 650 214 257 52 86 3 20 632 Part time 1,259 1,653 202 773 33 472 4,392 1,317 1,707 231 825 51 530 4,661 1,327 1,745 263 920 61 586 4,902 Total 1,490 2,017 334 1,013 41 493 5,388 1,545 2,112 373 1,073 61 557 5,721 1,587 2,098 418 1,175 71 616 5,965

Table 6-4. New Employees Statistics Table 6-5. Resigned Employees Statistics

Year 2017 2018 2019 Year 2017 2018 2019 Age Male Female Male Female Male Female Age Male Female Male Female Male Female Below 30 178 232 153 242 172 179 Below 30 132 170 142 185 125 204 Age 31-50 36 68 32 51 44 46 Age 31-50 52 74 34 57 45 61 Above 50 2 5 3 9 3 6 Above 50 4 5 3 5 4 8 Su-total 521 490 450 Su-total 437 426 447 Total Employees 5,388 5,721 5,965 Total Employees 5,388 5,721 5,965 Newcomers(%) 10 9 8 Newcomers(%) 8 7 8

(Note 5) FT statistics only. (Note 7) FT statistics only. (Note 6) 2019/1/1~2019/12/31 (Note 8) 2019/1/1~2019/12/31

Table 6-6. An-Shin employee nationalites

Taiwan China Japan Canada Indonesia Hong Kong Malaysia Philippines Vietnam Myanmar South Africa Category Total Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Managers 35 64 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 101 Staﬀs 21 51 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 72 Store managers 98 159 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 258 Store clerks 265 351 1 1 0 0 0 0 0 0 0 0 2 3 0 0 1 7 0 1 0 0 632 Part time 1,630 3,203 0 20 0 0 0 1 0 1 3 1 5 7 0 1 12 15 0 2 1 0 4,902

Total 2,049 3,828 1 22 2 0 0 1 0 1 3 1 7 10 0 1 13 22 0 3 1 0 5,965

82 MOS CSR Report 6 Contribue Society & Prosper Together

6.2.1 Remuneration System and Employee GRI 102-35 GRI 102-38 GRI 201-3 NTD$ thousands Average annual salary of non-managers Welfare Protection GRI 401-2 GRI 404-3 GRI 405-1 2017 2018 2019 529 519 526 An-Shin offers a competitive salary and welfare every year. An-Shin offers employees various compensation NTD$ thousands and benefits, regardless of gender, age, nationality, physical and mental disabilities, ethnicity or other condi- Median annual salary for non-managers

tions, and actively hires returning workers and minorities. Our salary and overtime pay follows the “Labor 2017 2018 2019 Standard Law” and related regulations. An-Shin evaluates employee performance and compensates part- 468 466 473 ners with salaries and bonuses. We offer a variety of benefits, including travel subsidies, language certification grants, maternity benefits, children education grants, annual medical examinations, group medical people Total non-manager employees（Note 8） insurance, and overseas training. Refer to Table 6-7 and Table 6-8 for details. 2017 2018 2019 1,015 1,023 1,072

Table 6-5. Annual salary of non-managers statistics

Table 6-7. Benefits for part-time employees ：： Subsidies and bonuses Night shift (23 00~06 00) subsidy (+NT$ 45/hour besides basic hour wage)/work in holidays : double hour rate/specific level staffs who work over 120 hours/ month will have additional bonuses

Beneﬁt Group insurance accidental injury/accidental medical insurance / travel subsidy (subsidy varies with service years and hours) / staff food and beverage discounts / special offers for home appliances by TECO group / occasional dinner and recreational activities / friends recommendation coupons / refer bonus

Retirement Profound employee benefit system (labor insurance, health insurance, pension fund)

Employee welfare committee Birthdays / Dragon Boat Festival gifts / Mid-Autumn Festival gifts

Lifetime learning Certification subsidy

Table 6-8. Benefits for Full-time employees Subsidies and bonuses Employee Dividends and Stock Warrants of Capital Increases / Employee Stock Ownership Trust/Performance Bonuses and Achievements Bonus / Partici- pation in Remuneration Distribution / Year-end Bonus Employee annual health check subsidy / group accident insurance / shop staff work meal subsidy / employee networking dinner / employee friend sharing Beneﬁt coupon / wedding & funeral subsidy / maternity bonus / foreign county staff dormitory / physician visit to the store & consultation / special Employee Dis- count by contracted 3rd parties / Special Promotion Activities / Remote Area Subsidy / Employee Rent Allowance Subsidy/Referee & Transfer bonus / Club Subsidy In accordance with the “Labor Standard Act” and the “Labor Pensions Act” , An-shin established an employee retirement scheme, which was monitored by the “Labor Retirement Reserves Supervision Committee” , which monitors pension plan operations. Employees who chose the new pension scheme, 6% of Retirement their monthly salaries will be withheld to a personal retired account of the Labor Insurance Bureau. Employees who chose to select the old pension scheme, whose seniority will be retained, and appropriate amounts withheld to personal account of the Bank of Taiwan. At present, employees who chose the old pension scheme accounts for about 0.14% of total employees, all others follow the new scheme.

Employee welfare committee NT$. 2,000~6, 000 annual travel allowance / New Year gifts and Spring party / Dragon Boat Festival and Mid-Autumn Festival bonus / birthday gifts / Staff Relief funds Employee education and training/internal newsletters/supervisors’ reading sessions/outstanding staff selection of foreign training/provided external courses Lifetime learning and lecture information/foreign language bonus, as long as the subsidy conditions are passed, one-time incentives of NTD$ 5,000~10,000, and another monthly incentives of NTD$1,500~2,000.

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Table 6-9. Subsidy Statistics

2017 2018 2019 Item Rules & Purpose Number of Grants Number of Grants Number of Grants subsidies (NT$) subsidies (NT$) subsidies (NT$) According to the club assessment and the number of members, Club subsidies different subsidies are granted. The annual maximum amount of - - 106 39 202 114 subsidies applied by each club is NT$ 20,000. Special project subsidies of NT$ 15,000 will be granted after review.

ESOP Enhance employee welfare, improve employee recognization, 189 7,611 172 7,827 190 9,131 and share business performances. Employees’ children who don’ t fail any subjects at school, may Children education subsidy apply for education subsidies. 27 41 32 49 47 66

Subject to seniority limitations, employees Travel subsidy may apply for annual travel subsidies of 601 3,044 332 1,160 799 3,764 NT$2,000~6,000.

Wedding subsidy Employees may apply for a marriage subsidy. 29 559 12 237 22 417

Birth subsidy Employees may apply for a birth benefit. 1 12 10 189 9 114

Funeral subsidy When the employee's parents, adoptive parents, step-parents, 63 328 68 278 72 340 spouse, or children pass, they may apply for a funeral subsidy.

Employee advance foresight Employees who meet the qualifications can apply for - - - - 25 66 cross-ﬁeld learning plan participation.

Employee advance cross-disciplinary Column learning plan-Tainan

Cross-disciplinary learning expands knowledge and advances our thinking. On May 19, 2019, our chairman and CEO led employees to visit the Tainan Chimei Museum, located in Southern Taiwan. The Chimei Museum has more than 4,000 items of Western art, musical instruments, weapons, animal specimens, and fossils. The interior design and displays give people the experience of traveling to different countries. Appreciating artwork can inspire aes- Figure 6-6. Group Photo at Chimei Museum thetic thinking and enrich our capacity. In addition, learning from different industries and cultures can broaden our understanding of the world around us. Figure 6-7. Guided tour by volunteer

84 MOS CSR Report 6 Contribue Society & Prosper Together

An-Shin promotes balance between work and life and encourages employees grow with the company. An-Shin has established 4 corporate clubs, a basketball club, a badminton club, a yoga club, and a mountaineering club, to allow employees to have more leisure sports and make friends with same interests. The maximum subsidy for each club is NTD$ 20,000 a year. We are planning to add more clubs and activities for employees to participate in in the future.

Badminton Club 1 & Club 2 Badminton Club was proposed by staffs who want to engage in less intense exercise, but still achieve a work-out effect. It is aimed to enhance the relationship between the stores and headquarters. At a fixed time each week, members will play badminton in nearby Jilin Elementary School Gym, and participants can get rid of stress after work. You can join at any time, spare rackets and birdies can be used for begin- ners or temporary partners. After many exercises, new participants also learned a lot about techniques. With the support of everyone, they have expanded from Club 1 to Club 2.Our CEO and Japanese vice president also enjoy badminton and often join the staff. Like other sports, badminton requires concentration and agility. Same with what we face in every day Figure 6-8. Figure 6-9. Group photo of Badminton Club Badminton Practice work, badminton helps to train our concertation, alertness and reaction to cope with challenges.

Yoga Club Mountaineering Club The company’ s headquarters is dominated by Mountaineering club initiates regular monthly outdoor leisure activities to develop women, and professional women often have the pres- regular exercise habits, improve health and enhance mutual communication and sure of work and family. They often rush to go home friendship. In 2019, a total of 15 events and 134 attendees. Not only did the mem- after work immediately to take care of their family. bers have the opportunity to exercise together, but also were able to establish good Yoga can achieve mind and body relaxation through interpersonal relationships between headquarters and store staff, and participate in proper limb stretching, body posture and thus environmental and ecological education activities. increase muscle endurance. In 2019, Yoga Club held weekly classes with a total of 131 attendees. Table 6-11. 2019 Mountaineering activities Figure 6-10. Yoga Club Practice Date Activity & Route Participants Tbale 6-10. 2019 Yoga Club Classes January 27 Danlan Road 11 March 23 Sanzhi Sansheng Trail - Cherry Blossom Watching Event 5 Month Topic Participants April 20 ELLE Charity Road Running 10 With the warm-up and the use of health stick, participants relaxed Departure at 8:00 Jiantan -> 9:30 2 hours stop at Bitoujiao -> 12:00 lunch -> seven major joint, ease the wrist caused by using the computer or 1 1/2 hour stop at Elephant Trunk Rock -> Chaojing Park -> Badouzi Station 8 Jan.~Mar. phone for a long time. This exercise can help to extend stiff elbow 33 April 27 (Shen'ao Railway Bicycle) ->15:00 Stay at Heping Island Park for 1 hour joint, shoulder, neck and the back. Jingbin Fishing Port Painted Fairytale Cabin->17:00 Go Home May 30 Lin Mei Shi Pan Trail 7 Warm up from a sitting position to a lying position, extending the June 2 Linkou Dingliao beach cleaning activities 13 muscles of waist and the lower back, which increases the strength June 15 Members' Dinner 11 Apr. ~Jun. of the training core muscle group. 31 Meet at the bus stop sign at Exit 1 of Jiantan Station, MRT (departure at 9:00, It extends to the basic exercises of kneeling and standing positions, 7/13-5 training the strength of the front of the thighs, pulling the heels July 13, first-come-first-boarded) -> Take the Bus No. 15 to the mountain climbing entrance of Silk Falls Station -> Silk Waterfall (1.1 km, about 30 minutes) -> 7/27-6 apart, and reducing the chance of plantar fasciitis during prolonged July 27 Cold Water Pit (2 km, 1.5 hours) -> Cold Water Pit Picnic (please bring your standing. own lunch)7/13-5 7/27-6 August 17 Picnic 8 Savasana resting, and meditating to relax each muscle of the body 4 Jul.~Sep. again after deep stretching, awakening gratitude and tolerance to 38 September 15 Shimen Laomei Beach Activities others, and experiencing the connection of people and our won September 28 Wulai Easy Half-Day Tour 5 spirit October 13 The 15th Samsung Charity Run 15 11 Surya namaskara introduction, experience the traditional yoga pos- 29 November 9 Pink Bird Forest Secret Experience Tour Oct.~Dec. ture method with inhalation, exhalation, and Indian rhythm, to 15 achieve the balance of body and mind. December 21 Club Feast

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6.2.2 Headquarter Christmas Get-together At the end of each year, An-Shin will hold a Christmas get-together. Executives will thank staffs for their hard work over the past year and encourage better performance for the coming year. Head- Workplace Experience Camp quarter colleagues can also be grateful to each other and enhance friendship across various departments. 2017 2018 2019 4 6 9

Workplace Experience Camp Participants(people)

2017 2018 2019 115 302 398

Figure 6-13. Workplace Experience Camp Statistics

Figure 6-11. Figure 6-12. Gratitude Message from CEO Headquarter Christmas get-together

6.2.3 Workplace Experience Camp Middle-aged workers are generally more reliable and experienced, hence our decision to recruit people of that demographic to join or rejoin our team. In 2019, we had 687 returning workers above the age of 50, making up 12% of our total employees. We committed to our CRS and strive to integrate people with different backgrounds, ages, and genders promoting diversity within the workplace. In 2019, there were 9 workplace experience camps and a total of 398 participants which was an increase from 2018. Participants are led into a mock kitchen for training in preparation of food products. The purpose is to allow trainees to better understand the work Figure 6-14. Workplace Experience Camp Practice environment and company operations. In 2019, we cooperated with the Taipei Employment Ser- vice Office to hold middle-aged and age friendly visits and held an experience tour at the Tamsui Education and Training Center-"An-Shin College". Through this method, we hope to recruit returning or middle-aged workers with service work experience. Not only do they have valuable experience working in hospitality and customer service, they also enhance the image of corporate friendliness. An-Shin offers a good package of benefits. In 2019, we provided transfer bonus of NTD$ 492 thousands for 76 staffs, and introduction bonus of NTD$ 47 thousands for 55 staffs.

Figure 6-16. Group photo at An-Shin Academy

Figure 6-15. Middle-aged participants of Workplace Experience Camp

86 MOS CSR Report 6 Contribue Society & Prosper Together

6.3 Management Trainee Program 6.3.1Management Trainee Seminar The Management Trainee Program started in 2010, and trainees go through the pro- After joining the head office, management trainees will join monthly seminars. The semi- gram to prepare for management positions within the company. To help the compa- nar is divided into two parts: training courses and assignment reports. The purpose of ny's future development, An-Shin has these programs in both international and do- the seminar and courses are to evaluate monthly performance through the study of mestic environments. Those who long for overseas experiences, posses interest in the specified topics and the cross-function experience sharing. The monthly training cours- catering industry, and have strong English or Japanese skills can join this the overseas es include discussion, sharing of store operation issues and improvement proposals, program. After trainees finish the program and are selected to join the company, a consumers’ consumption surveys, workplace etiquette, communication and conflict series of pre-employment education and on-the-job training sessions will be arranged. skills, among other activities. The scheduled courses cover professional and manage- There are also position rotations every six months match the right talent with the right ment related topics to lift innovative thinking, communication skills, and analytical skills. place and follow-up advice is given to help the trainees improve. In 2019, the MA In addition, the "Mentor and Senior System" is used during these courses, where exec- interviews were held on April 27 and May 5 and during these two days, job seekers utives serve as mentors and senior trainees also help junior trainees to accelerate the fully demonstrated their advantages and language expertise. learning and growth and help them integrate into MOS culture.

Figure 6-17. Executives and prospects Figure 6-18. Group photo of prospects

2019 Management Trainee Program

Figure 6-20. MA Seminar phase Operation Headquarters

Other Dept.(mar- Basic 1.5 Newcomer Training Ordinary Operation-realted keting, finance, training Store Store Dept. (6 months) purchasing etc.) years (4 days) (6 weeks) (18 weeks) (6 months) StoreX1, Operation Dept. X1, Other Dept. X1 , every rotation with evaluation

Career paths Advance 1.5 years Operation Headquarters Overseas

Profession Operation Headquarters Affiliates match Managers Managers Managers Figure 6-21. MA series classes

Figure 6-19. Management Trainee Program

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6.4 Cooperative Education Programme for Youth An-Shin spares no effort to cultivate young talents and cooperates with many schools every year. We also welcome internal partners to continue study and hope them grow with the company. Various internship programs are as follows:

Table 6-12. Internship programs Item Duration Compensation Beneﬁts

Cooperative Education Programme 1~2 years Monthly salary Full-time employee benefits are applicable (refer to Table 6-8). Provide complete training courses, intern seminars and intern competitions. Annual Internship (1) From February of this year to January of programs next year Monthly salary Scholarships will be granted after the internship period. (2) From July of this year to June of next year If interns stay to work for An-Shin after graduation, they can enjoy recognition of seniority and training qualification, and get extra retention bonus. Semester Internship (1) From September to January of next year Monthly salary programs (2) From February to June of the same year Enjoy priority selection opportunities for overseas work.

Shoer-term Internship According to school plans (undertaken Monthly salary Flexible internship working hours, participation in internship seminars, and programs during the semester) internship competitions. Dual Scholarship Enjoy priority selection opportunities for overseas work. Program 4 years Monthly salary

6.4.1 An-Shin Lecture Series （Chung Hua University, and National Pingtung University of Science and Technology） An-Shin Lecture Series are formulated to mainly develop talents for catering operation In 2019, we launched 15 of these courses with the College of Tourism of Chung Hua and management. By integrating work experience with learning, we can reduce prob- University, with a total of 16 An-Shin lecturers and 25 students participating. In addition, lems of inabilities to adapt to workplace. Since 2019, we have cooperated numerous we launched 4 " An-Shin Lecture Series " with the National Pingtung University of Sci- universities to present the "An-Shin Lecture Series " to their students. The "An-Shin Lec- ence and Technology professional program, with a total of 8 An-Shin lecturers and 24 ture Series " has school teachers students (including students of Meihe University of Technology). Through customized and business professionals jointly cooperation program, combined with the professional strength of TECO Catering Group, plan a course outline and inte- we hope to train excellent first-line managers to boost our company’s future prospects. grate industry experience into the learning material. After completing the courses and passing the company certification, students can work as full-time employees and secure jobs at An-Shin after graduation.

Figure 6-22. Outline of An-Shin Lecture Series Figure 6-23. Figure 6-24. An-Shin Lecturer Completion Ceremony of An-Shin Lecture Series 88 MOS CSR Report 6 Contribue Society & Prosper Together

6.4.2 Cooperative Education 【Coop Student Feedback】Growth at MOS To help develop professional abilities as early as possible, An-Shin has continued to Store: Beitou Store expand cooperation projects with universities and colleges. We were increase partici- School: Department of Marketing and Logistics Management, pating schools by 12 in 2019. In order to retain excellent talents and develop them for Jingwen University of Science and Technology Intern: Lian Yuyu growth, An-Shin has launched benefit packages to attract postgraduates to stay with An-Shin with numerous bonuses, salary increases after qualification review, and rewards depending on rank and work hours in addition to all the benefits our regular employees receive. While at school, it is easier to reach a consensus with classmates due to close relationship and similar points of view. When I enter the workplace, there will be differences in age, personality, and flexibility of movement Table 6-13. Statistics of Cooperative Education between my partners. Because of their different career experiences, they Item 2017 2018 2019 have different ideas. When facing with problems, everyone’ s response methods also varied. However, I think our ultimate goal is to provide the best ser- Schools with An-Shin vice to customers. After getting along for a long time and communication Cooperative Education 42 59 71 with others, I have a better understanding of everyone's attitude, ability, stability and possible emotional responses for things. I still remember when I Interns 165 100 86 was a greenhorn and learned to handle at different workstations. At the beginning, I was not skilled to prepare the hot rice burgers and took more time to finish the job. Long waiting time causes bad dining experience and possible compliant. At that time, I was very frustrated and deeply felt sorry. I 6.4.3 Dual Scholarship Program once asked a senior partner for advice: "Why can you do so fast? Don’ t you hesitate to touch burgers? Aren’t you afraid of hot things?" He only respond- The dual scholarship program is a collaboration between An-Shin, local schools, and ed to me: "Practice makes perfect. You just need more practice." the Ministry of Labor, allowing students to simultaneously go to school and also gain work experience. At the end of the semester, participating students can receive a schol- And it did work. After a period of time, my speed really accelerated. When- arship if their grades and weekly reports meet set standards. In 2019, there were 10 ever the meal was successfully presented to the customer, I felt that the hard recepients of this scholarship and total of NT$ 51 thousands granted. work was worth it! When working with people, I learned to respond appropri- ately. I am no longer self-centered and become a good team member. When the team work together to accomplish the same thing, not only the whole Grants of Dual Scholarship Program team, but also I feel happy to complete the mission. Looking back along the 2017 2018 2019 way, I am very grateful to the store manager and partners for correcting me and teaching me how to solve it when I make a mistake, so that I can contin- 72 60 51 thousands thousands thousands ue to improve. I also learned to express my emotion properly and paid attention to others’ feelings. Fortunately, my partners can really express their thoughts and tolerate each other's shortcomings, which makes the working Number of beneﬁciaries atmosphere more enjoyable. A good working atmosphere is really important. 2017 2018 2019 This is what I wish to achieve after working. I hope to create a warm and 12 10 10 friendly working and dining environment, so that all of us are happy. I look people people people forward to the future and hope to grow and improve in all aspects, contribute to the team and society, and spread the positive energy to warm everyone's heart! Table 6-25. Statistics of Dual Scholarship Program

MOS CSR Report 89 6 Contribue Society & Prosper Together

6.4.4Handicapped Employee Support 6.4.5 Labor-Management Relationship-4th New Employee Ceremony Our store also serves as a learning place for our handicapped and Seminar employees and in 2018 we had 153 workers and 157 in 2019, This ceremony was introduced in 2016 and has became a tradition with an accumulated total of 302 attend- making up 2.6% of our employee population. We strive to ees so far. In 2019, a total of 91 employees joined the ceremony. Through the ceremony, we help to induct eliminate discrimination against these employees and work to newcomers into our company, tour TECO Catering Affiliates, as well as invite senior employees to share their offer equal opportunities in the work place. We believe that experiences. Representatives of new partners are also invited to share views with others and promote these employees can do tasks just as well if correctly taught two-way communication. by our staff. We have a long-term collaboration with several non-profit organizations to create a learning place for these workers. 91

Table 6-14. Disabled Employee Statistics 81 Year 2017年 2018年 2019年 76 Management 1 1 2

Staﬀ 0 0 0 2017 2018 2019 Store Manager 0 0 0 Figure 6-27. Figure 6-28. Figure 6-29. Store Clerk 6 7 6 Participants of New Employee 4th New Employee Ceremony New Employee Seminar Ceremony and Seminar Part-Time 144 145 149

Total 151 153 157 Percentage of Total 6.5 Listen to Partners Employees 2.8% 2.7% 2.6% An-Shin pays attention to employee feedback and their wellbeing. Employees are able to give comments and feedback through various channels, including Facebook, our chairman’s mailbox, and an online form. In 2019, An-Shin received 43 employee feedback forms of which the majority were communication issues and bene- Total Disabled Disabled Employees % as fits inquiries. All cases were resovled quickly and without further conflict. Employees(peoples) of total employees

2.8 158 2.7 2.6 3.0%

156 2.5%

2.0% 154 Figure 6-30. Employee Feedback 1.5% 157 152 1.0% Employee Feedbacks 153 150 0.5% 151 2017 2018 2019

148 0% 2017 2018 2019 15 25 43 Figure 6-31. Figure 6-32. Chairman’s mailox Employee Feedback Page on Website Figure 6-26. Disabled Employee Recruitment

90 MOS CSR Report 6 Contribue Society & Prosper Together

6.5.1 Recognition of Partners 6.5.2 Labor Legal Compliance GRI 419-1 An-Shin publicly recognizes and rewards the departments or partners that perform well. An-Shin complied with International Bill of Human Rights and other relevant laws and Recognition is granted according to nomination by managers and satisfaction survey regulations, such as gender equality, the right to work and the prohibition of discrimina- results. The Operation Management Dept. surveys stores for the satisfaction of support tion. In addition, in order to protect the rights and obligations of both employers and from the headquarters quarterly. Top performers are praised at the monthly headquar- employees, we have work standards that are stated in accordance with the provisions ters meeting. In 2019, 14 units and partners received the recognition. of the Labor Standards Act. All employees are required to follow the relevant rules. In 2019, only 1 violation with a fine of NTD$ 5,496 occurred, with immediate analysis and countermeasures imposed to avoid similar errors. . Table 6-15. Recognition of Partners and Departments Table 6-16. Labor-related Breach Item Unit 2017 2018 2019 Breach A fine of NTD$ 5,496 for insured salary has not been verified and Top Performer - 13 14 declared.

Employees Chen misunderstood that the company's has not veri- Cash Grant Thousands 10 22 24 fied and declared correct salary figure. The actual salary range of Chen's was NTD$ 26,400. Due to personal delay of document sub- Causes mission, the previous month's salary plus the current month's salary exceeds NTD$ 30,000. Therefore, the HR contractor mistake to raise the insured salary of the employee to NTD$ 31,800, causing the discrepancy and the violation.

1. Review the insured salary range every three months, and check if Counter- any delay in document submission and salary payment. measures 2. Regular internal education. 3. A monthly reminder of document submission.

6.5.3 Minimal Notice for Employee Dismissal due to Oper- Figure 6-33. ational Changes Recogniotion of Food Inspection Center If An-Shin Food terminates the labor contract in accordance with Article 11 or Article 13 of the Labor Law, the notice period shall be handled in accordance with the following provisions:

Employees working between 3 months-1 year, minimum notice is 10 days Employees working between 1 year-3 years, minimum notice is 20 days Employees working over 3 years, minimum notice is 30 days When an employee receives a dismal notice, they have a maximum of 2 days per week with pay to find new work if needed Figure 6-34. Recognition of Finance Dept. and Accounting Dept.

MOS CSR Report 91 6 Contribue Society & Prosper Together

6.6 Personnel Training Management 6.6.1 Annual Company Training Camp An-Shin’ s education and management training system is “Smart Technology” designed to align with our visions and training needs. The main focus of 2019 is smart technology, and An-Shin An-Shin will offer different types of training depending on encourages partners to use technology smart. On January 15th an employee’ s position and needs. For example, we edu- of 2019, the annual company training camp was held with a total cate store staff about strategy, food sanitation, product attendance of 329 staff which included store managers, depart- preparation, and product sales, as well as how to spot ment heads and top management. Through the training, we hope customer needs. We also provide trainings on how to ana- to enhance product, service and environment quality to better lyze store financials and operations. In addition, our Store customer experience. Through different activities, participants Training Department will also increase special courses to realized the importance of quality and creative & logical thinking. enhance experience in areas such as periodical operation An-Shin encouraged participants to learn the importance of infor- 278 329 329 checks and store manager tests depending on need. In mation collection, data analysis and countermeasures. Partici- (人) (人) (人) 2019, there were 984 employees who passed the store pants were deeply inspired by the activities, felt the importance manager tests. of practicing, and ultimately reached the goal of the training (I The training is organized and systematic, and in order to Care, We Share, Growing Together). increase the quality of our training, we keep increasing the 2017 2018 2019 number of our qualified teachers and follow the TTQS (Tai- wan TrainQuali System) continuously reviewing our com- Figure 6-37. Participants of Annual Company pany needs and strategy, confirming performance of every Training Camp detail. Therefore we received the TTQS Copper Award in 2010, 2014, 2016, 2018 and 2019. Neutral Neutral Neutral Neutral

Satisfied 3% Satisfied 3% 3% Satisfied 1% 22% 18% Satisfied 24% Very Very 25% Very Very Satisfied Satisfied Satisfied Satisfied 75% 78% 72% 75%

Figure 6-38. Figure 6-39. Figure 6-40. Figure 6-41. Satisfaction of Program Satisfaction of Program Learning is useful for Learning is useful to Design of Annual Facilitator of Annual work enhance efficiency Company Training Camp Company Training Camp

Figure 6-35. Figure 6-36. TTQS Awatd TTQSTTQS Certificate Figure 6-42. Figure 6-43. Figure 6-44. Figure6-45. Group Photo Validation Notice Opening of Annual Company Outdoor Activity of Annual Indoor Activity of Annual Training Camp Company Training Camp Company Training Camp 92 MOS CSR Report 6 Contribue Society & Prosper Together

6.6.2 Variety of Systematic Training GRI 404-1 An-Shin continually provides diversified education and training to headquarters and store partners. Through these professional management courses, An-Shin can lead and continue to provide good service to customers in a rapidly changing business environment. In order to eliminate the inequality in education, An-Shin has a complete employee education and training system which is divided into pre-employment training and on-the-job training. The internal and external training methods are both deployed to strengthen the foundation of the company's sustainable development. External courses are planned according to specific needs to further enhance staff professional competence and core competitiveness. Besides regular internal training courses, various types of special courses are also provided according to the annual Figure 6-47. Figure 6-48. strategic goals. External lectures and seminars are also held to enhance professional Introduction to Project Management How to teach while at work competence and enrich the personal vision. The total cost of employee training and training in 2019 was NTD$ 4.63 millions.

Management Training 13% New Recruit 26% Training

HQ Training General Figure 6-49. Figure 6-50. 11% Training Data Analysis and Power BI Practices Google Application Professional 50% Training' Professional and cross-disciplinary functional courses account for 50% of the overall training. The overall management training courses Figure 6-46. Headquarters staff training components emphasizes leadership development which account for 13% of the total training and includes reading clubs, lectures from invited In order to allow our headquarter staff to understand in-store jobs, everyone must experts on smart technology, happy enter- first undergo two weeks in-store training and also pass the service exam. General prise, leadership and management. In 2019, education makes up 11% of the program and includes crisis management and pro- the number of management courses was 537 posal drafting, power point presentation, and time management and subordinate hours. In addition to the internal lecturer's development. In order to update this training periodically, we have a quarterly news- courses, the management course also invites letter which includes software tips and new skills for everyone to learn. In 2019, two lecturers to conduct relevant management special elective courses were launched: "Data Analysis and Power BI Practices" and training. The senior executives participate in "Google Application", so that partners can use related technology and tools to external management and professional relat- Figure 6-51. An-Shin Quarterly Newsletter improve work efficiency. ed training, continuously absorbing new knowledge on enterprise management, ensuring the implementation of internal management mechanisms.

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In addition to internal training, external training were also provided, such as Google Ads In addition to management related training courses, two An-Shin Lecture Series were certification classes, laboratory certification standards ISO/IEC17025, ISO 9001 gauge arranged in the year, with a total of 165 participants (including staffs of affiliates). calibration and management practices, food safety hygiene management and regula- Experts, scholars and managers were invited to share ideas and experiences of smart tions, instrument calibration and quality management workshops, Python business anal- technology, happy enterprise, and leadership & management. Lectures can cover broad- ysis, coach THOC workshop, food industry digital transformation and Al artificial intelli- er and cross-border innovative thinking, including property management, smart stores gence application. In addition, cross-industry learning is also provided to offer opportu- and new retail, creation of a happy company, technology-driven member economy, and nities for diversified career planning, such as basic barista courses for partners. brand image and corporate sustainable development. For internal lecturers, the digital learning workshop is specially arranged to promote micro-learning and teaching design concepts to formulate digital presentation with Power Point 2019 and record as mp4 video files to make internal teaching more diverse & interesting and make experience-sharing easier.

Figure 6-54. Smart Stores and New Retail

Figure 6-52. Micro-learning & Digital Presentation Workshop

Figure 6-55. Toilet Maintenance and Property Management

Figure 6-53. Micro-learning & Digital Presentation Workshop

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Column Basics and Advanced Coﬀee Courses

Through the Training of coffee knowledge, the Basic Advanced Obtained Barista coures coures Exam Practice check Oral test MOS Barista competition store manager could know how to explain and certification recommend suitable coffee to customers and Target: Target: Coffee Cup test/ MOS Promoting future, international share it with other partners in the store. In All store Outstanding expertise Coffee Coffee MOS coffee managers performers actual Promotion in stores certification addition, trained staff can be able to differenti- and affiliates in advanced practice /oral courses for baristas ate problems of machine equipment cleaning personnel courses certification presentat test ion Visit or study or setting from coffee bean preservation at the UCC Museum in immediately, thus the quality of coffee can be Japan preliminarily screened and maintain. These Promote MOS promising trainees can be upgraded to coffee in the store become future MOS Café professional baristas. From September 2016 to November 2019, a total of 27 basic courses were held, and the total number of trainees was 559 (including 16 affiliate staffs). In 2019, a total of 5 basic courses were held, and a total of 111 Figure 6-56. Figure 6-57. 6-58. people were trained. Basic coffee courses Basic coffee courses- Basic coffee courses- -Taipei Taichung Kaohsiung Figure Table 6-17. Certified Barista Training

Year 2018 2019 EmployCourses Average training EmployCourses Average training Category Courses (hours) Courses (hours) (hours) hours/person (hours) hours/person Gender Male Female Male Female Male Female Male Female Male 女 Male Female

Managers 0 0 0 0 0 0 8 0 2 0 4 0

Staff 91 117 34 44 2.68 2.66 37 36 12 9 3.08 4

Store Manager 89 176 30 62 2.97 2.84 40.5 70.5 12 20 3.38 3.53

Store Clerk 128 198 41 59 3.12 3.36 36 84 9 21 4 4

Part-time 28 164 7 41 4 4 28 120 7 30 4 4

Total 336 655 112 206 3 3.18 149.5 310.5 42 80 3.56 3.88

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The 1st MOS Coﬀee Ambassador Professional function competency Column Column Certiﬁcation workshop-Find Corporate DNA

In January 2019, An-Shin held the first MOS Coffee Ambassador An-Shin also handles related management courses to enhance the Certification Exam. In addition to the coffee courses, partners partici- management ability of supervisors. A 3-day "Find Corporate DNA ~ pating also need to pass the written and oral exams to be eligible for professional function inventory workshop" was established, starting the "MOS Burger Coffee Ambassador". In addition to professional from understanding the functions of each unit, analyzing systematic experts, coffee merchants, top management and internal managers process, to completion of key professional function competency of of An-Shin are also invited to review. Partners who enter the each position. The invited consultant guides and assists participating advanced exams need to demonstrate their knowledge of coffee manager to collect relevant information on the development of func- basics, present MOS coffee spirit and practice hand drip coffee. tions, and cultivates professional learning maps with corporate DNA, After multilateral selections, a total of 8 partners won the honor of which facilitates training plans and goals, completes the blueprint for "1st MOS Burger Coffee Ambassador". In the future, An-Shin will key talent training plans. After the class, managers have expressed continue to cultivate more prospect coffee ambassadors, so that that they have learned a lot about how to make the organization ben- customers can enjoy MOS coffee and desserts. efit more through better competency development. In the future, Among them, one staff of Product Development Dept. also partici- there will be a standard and unified operating process for recruiting pated and successfully obtained the Q-Grader certification of the and cultivating new people with clear goal and consistent learning. Coffee Quality Institute (CQI).

Figure 6-59. MOS Coffee Ambassador Certification

Figure 6-61. Find Corporate DNA and Group Discussion

Figure 6-60. MOS Burger Coffee Ambassador Figure 6-62. Charter Ceremony Find Corporate DNA and Analysis

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專欄 Store manager value-added cours- Column Reading Club Column es-foresee a better self

An-Shin Food has always attached great importance to the educa- In addition to functional training courses, An-Shin Food also tion and training of employees. We have adopted a diversified invites well-known lecturers to enrich mind of store managers, approach to help managers continue to receive new knowledge and and help lead store teams to create better service experiences. A learning, including 3~4 reading clubs per year. After finishing total of 144 store managers above grade B participate in this lec- assigned reading, managers get together and discuss theoretic ture. This time, experts in talent cultivation and service innovation methods recommended in the book, start brainstorming, and prac- are specially invited to share different methods and perspectives. tice in daily work. Through the stimulation of the course, partners can continue to Reading clubs allow managers to read the same books, establish a maintain work motivation and enthusiasm, find new life goals, and common language within the company, and enhance everyone’ s reduce the turnover rate. ability to express ideas and analyze problems during the discussion. Since 2014, the directors of An-Shin Food have read more than 15 books, and the books discussed cover various fields. In addition to books, films and movies are also deployed to learn more management skills. Since 2019, we also invite external lecturers to share the method of quick reading and find the keywords. Through continuous reading and learning, managers can enhance their knowledge and the breadth of thinking, share their knowledge to others, and lead their partners to provide better services and products to customers.

Figure 6-59. MOS Coffee Ambassador Figure 6-65. Value-added courses Figure 6-66. Group Discussion Certification

Figure 6-63. Reading Club

Figure 6-64. Group Discussion at Reading Club Figure 6-67. Store manager value-added courses-foresee a better self

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The store training course is mainly for store staff. For new recruits, the course content focuses on company philosophy, food safety and hygiene, operation standards, customer service concepts, etc., so that newcomers can think about how to improve customer satisfaction and apply concepts at work. After completing the newcomer training, recruits will be assigned to the training store to experience on-site operations and apply off-job concepts of the new training. New recruit training accounts for 40% of the overall training. For the store manager trainings, the management ability of the store managers and district managers account for 30% of the total training. Professional training focuses on the knowledge and skills required for basic store operations management, such as customer service, inventory, duty, and OJT guidance skills, accounting for 14% of the overall training. The general training includes the customer service skills and sharing ideas, accounting for 16% of the total.

Table 6-18. Average hours of education training for attendees Year 2018 2019

Employee Courses Participants Average training Courses (hours) Participants Average training (hours) (people) hours/person (people) hours/person Gender Male Female Male Female Male Female Male Female Male Female Male Female

H/O managers 2,485.5 4,441 36 65 69.04 68.32 1,092 2,694.50 37 64 29.51 42.10

Staﬀ 746 2,346.5 22 44 33.91 53.33 2,179 3,802 21 51 103.76 74.55

Store Manager 2,976 4,841 92 151 32.35 32.06 2,916.50 5,473.50 98 160 29.76 34.21

Store Clerk 9,410 16,552 230 420 40.91 39.41 9,730 11,246 269 363 36.17 30.98

Part-time (Note 10) ------28 120 1651 3,251 0.02 0.04

Total 15617.5 28,180.5 380 680 41.10 41.44 15,945.50 23,336 2,076 3,889 7.68 6.00

(Note 10) Part-time staff training takes place online (e-learning sites) since 2015 (Note 11) 2019 coffee lectures are also available for part-time staffs.

Table 6-19. External Training

Year 2017 2018 2019

Category Courses Participants Average training Courses Participants Average training Courses Participants Average training (hours) (people) hours/person (hours) (people) hours/person (hours) (people) hours/person Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female

Class C staﬀ 42 33 2 2 21 16.5 138 294 23 44 6 6.68 63 69 3 4 21 17.25

Fire prevention 42 78 4 7 10.5 11.14 0 60 0 7 0 8.57 66 90 6 8 11 11.25 staﬀ First-Aid staﬀ 78 150 16 25 4.88 6 0 36 0 2 0 18 72 93 4 6 18 15.5

Total 162 261 22 34 7.36 7.68 138 390 23 53 6 7.36 201 252 13 18 15.46 14

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6.6.3 TCFA Outstanding Store Manager Selection The store manager is the commander of the operation site, and is also the executor of the implementation of the corporate philosophy. Not only should the store manager lead the store to offer the most best products and services to customers, but also lead the partners to contribute to the community. Therefore, an excellent store manager requires not only leadership skills, communication skills, education and training capabilities, digital analysis skills, but also creative business thinking. An-Shin also recommended 8 store managers to participate at this year’ s TCFA Outstanding Store Manager Selection. After written reviews, oral examinations, mysterious visitors and other tests, Chang Yupei of Tainan Jiankang Store won the honor of excellent store manager. Chang Yupei won the excellent oral presentation award in 2018 and won the Excellent Manager in 2019. In addition, Lu Ruiqi, the youngest manager of An-Shin, who used the creative thinking of the young generation, led the store in the Second Airline Control Zone to achieve sales new highs, won the best innovation award. An-Shin develops the professional talents of stores. The annual selection of outstanding store managers is not only a recognition, but also a learning process for store managers. After 7 months of training courses, including writing guidance, management guidance, oral expression, and cross-industry visit. In addition to the preparation for the competition, through the process of the competition, the store manager learned and expanded his/her capacities.

7 2

2017 people people

2 1 11 Figure 6-69. Figure 6-70. 2018 people people people Internal traing for outstanding managers Closing ceremony of internal traing

8 1

2019 people people

Outstanding Excellent Excellent Oral Figure 6-71. Fogure 6-72. Manager Manager Presentation TCFA Outstanding Store Manager Winners of TCFA Outstanding Store Recognition Manager Recognition Figure 6-68. Outstanding Store Manager Recognition

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6.7 MOS Burger Academy Not only do we hope to enhance the skills of each partner through training courses, but also help every partner become a vibrant, enthusiastic, and honest person. In order to allow all partners to participate in various courses, An-Shin Food established a training center "An-Shin Academy" in Danshui in 2012. The spacious "An-Shin Academy", has numerous classrooms fitted for a plethora of activities, a lecture hall that can accommodate up to 100 people, and comfortable dormitories. The academy also has a Honest Snack Store which has a small wishing box for attendees to write down their hopes Figure 6-73. and dreams. "An-Shin Academy" is also a platform for resource sharing and mobile phone charging stations available for outside organizations for meeting venues.

Figure 6-75、cashier box

Table 6-20. Venues for Outside parties and visitors

2017 2018 2019 Item Activity Venue visitors visitors visitors

Comfortable and quiet Leisure An-Shin Academy is avail- space able for external groups and 1,241 1,640 2,076 rental a great venue for teaching and staff accommodation with reasonable prices.

Figure 6-74. Figure 6-76. QR code of An-Shin Honest snack store Wishing box Academy

6.7.1 Employee Dormitory In order to allow employees outside Taipei City to come to the headquarters for training without worrying about housing, the Danshui An-Shin Academy and the Jilin Academy have staff dormitories that provide free accommodation during the company’ s training. There are currently a total of 108 beds with internal 1,285 occupancies and 791 outside occupancies in 2019. In addition, after becoming full-time employees, regional dormitories such as Tianmu, Shidong, Beiyi Wuxing, Bei'an, Linkou Zhulin, Sanchong, and Taichung Zhonggang Chengqing are also available for employees to rents. There are 67 beds with 44 occupied, with 66% occupancy rate. In 2020, we will increase to set up dormitories, so that employees can feel at ease in employment. Figure 6-77. Figure 6-78. Employee Dormitory Corridor in Employee Dormitory

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6.7.2 New Recruit Training Talent is the most important asset cherished by An-Shin. After accepting the four- day new recruit training of each colleague, they then proceed to the training store to complete the in-store service training ranging from two weeks to two months. Since 2015, an accumulated total of 2,110 people have received new recruit training. In 2019, a total of 408 people participated in the newcomers training. Through the company's business philosophy, food safety standards and service processes, we ensure that the participants fully understand the content of the course, with tests conducted every day. In order to enable each new employee to fully understand service attitude and become a catering talent, all colleagues in the trial period need to fill their work experience into the “New Recruit Log”, and managers will review weekly to coach them through the learning processes.

Figure 6-79. Clothing and appearance courtesy

476 469 408 people people people

2017 2018 2019

Figure 6-80. New Recruit Training

Figure 6-81. Figure 6-82. Recruiting and HR scheme Seminar for Personnel System

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6.8 Occupational Safety and Health Management 6.9.1 Accidents Report Scheme GRI 403-2 The right to life is far more important than the right to work: labor According to the relevant provisions of the Occupational Safety and Health Law, An-Shin reports safety is the most important labor condition that An-Shin and employ- online statistics of occupational hazards monthly. In the event of a work safety accident, in addition to ees must work together to maintain. We follow the provisions of labor notifying the relevant supervisors, the health and safety team will initiate an accident investigation, and laws, fulfill our corporate responsibilities, care and protect employees, conduct analysis, treatment, tracking, and follow-up assessment of the incident. We will also publicize and formulate safety and health policies. Employees themselves relevant health and safety matters to prevent similar problems from reoccuring. In order to facilitate should also be aware of the safety and health regulations related to incident reporting, an online accident notification is provided so that the health and safety team can their own personal lives, and have an obligation to comply, so as to assess accident situations. ensure their safety and happiness.

Explanation of calculation formula Abide by laws and regulations, undertake education and training. Disability injury frequency (FR) = number of persons with disability injury throughout the Safety and health policy Prevent harm and continue to improve. year ÷ total working hours × 1,000,000 Severity rate of disability injury (SR) Full participation in health promotion. = total days of disability for the whole year ÷ total working hours × 1,000,000 Occupational Disease Rate = (Number of Occupational Diseases Occurred/Total Working Hours) x 1,000,000 Absence rate 6.8.1 Safety and Store Inspection = (absence days ÷ total working days) × 100% Average number of days of disability injury In order to facilitate the planning, sampling, analysis the exposure of Figure 6-83. Online Accident Notification = total days of disability / total number of casualties employees and formulate appropriate strategies to ensure occupational safety and health, An-Shin asks third-party inspectors to examine our stores every 6 months to check CO2 concentration levels in Table 6-21. Injury and Disability statistics (excluding transportation incident data)： the dining area and kitchen to ensure the safety of our employees and customers. In 2019, all levels were below the 5,000 ppm standard. Year 2017 2018 2019 Gender Male Female Male Female Male Female 6.9 Occupational Health & Safety Checks Disability injury frequency (FR) 0.54 3.06 0.15 2.22 1.73 3.46 Severity rate of disability injury (SR) 14.04 92.54 1.03 68.42 36.52 141.47 Due to the large number of kitchen equipment in the store and frequent human-machine interaction, the implementation of safety Occupational Disease Rate 0 0 0 0 0 0 inspections to prevent machine failures and human negligence has Number of death due to work accidents 0 0 0 0 0 0 always been an important issue in work safety. In order to eliminate Absence rate 0.09 0.19 0.06 0.23 0.09 0.20 workplace hazards, the Occupational Health and Safety Team of An-Shin Food conducts monthly safety and sanitation inspections in Average number of days of disability injury 26 30.24 7 30.8 21.08 42.83 each branch. The occupational safety ad health management personnel of An-Shin conducted monthly inspections at various stores to (Note 12) Jixiangdian Store, Lin scald incident, 199 consecutive days off conduct pre-hazard identification which will be analyzed and assessed Zhongli Huanzhong Store, Lin slipping incident occurred, 106 days off Hsinchu Zhongzheng Store, Du has slipped and has 96 consecutive days off to ensure the safety of employees. Changhua Store, Lin scald incident, 77 consecutive days offP101

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6.9.2 Workplace Accident Prevention An-Shin Foods has established a complete reporting system to analyze the types of work accidents and track the recovery status of injured employees to estimate return-to-work dates. Cut injuries, burns and falls are the most common work accidents for An-Shin. Therefore, education training lectures and conferences are specially organized for these injury preventions. An-Shin has also cooperated with the government's four regulations of occupational safety to eliminate unlawful infringement, promote workplace mental health, musculoskeletal workplace injury prevention, and a maternal protection program. We have also established a record-tracking system for all injury cases and harassment cases.

Newcomer Disaster In-store health checks Workplace Harrassment (unlawful infringement) Prevention Course and consulting and mental health issues

Safety and health education and training was Since the establishment of the safety and At the headquarters meeting in September conducted for newcomers. In 2019, a total of 5 health team in 2015, a total of 573 sessions 2018, prevention of workplace harassment training were undertaken. Combining with the have been performed by the end of 2019 to were announced by Chairman Lin to enhance resources of the Neihu Disaster Prevention Sci- check the health of partners. the cohesiveness of employees and allow all ence Education Museum and the explanation of The member include workplace safety person- employees to feel happy and safe at work. In professional guides, we can improve the ability nel and nurses, and employs 4 physicians in December 2019, we promoted workplace of new partners to respond to emergencies at North, Central and Southern Taiwan for evalua- harassment prevention (Figure 6-83) at monthly work. tion items such as maternal, infringement law operation meeting, and provided a special noti- issues, work overload, ergonomic issues, work- fication platform for alert. An-Shin has plat- place mental health, rehabilitation, and assign- forms that allow for employees to notify human ment evaluation, follow-up care for work-relat- resources if there are any workplace infringe- ed accidents, store first-aid kit configurations, ments. employee health consultations, and suggestions for work environment improvement measures. Table 6-23. Workplace Harassment Prevention Seminar There were 108 store visits in 2019 to serve 120 Year 2017 2018 2019 stores and 168 staffs.。 workplace harassment prevention(times) 2 2 2 Figure 6-84. Fight Fire practice Table 6-22. Store Visits & Counsulting attendees 230 240 250 Year 2017 2018 2019 Store visits Counsulting 108 108 108 staﬀs 60 105 168

Figure 6-85. CPR training Figure 6-87. Figure 6-82. Unlawful Infringement Announcement Materials In-store health checksand consulting

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6.9.3 Back to work Assessment 6.9.4 Prevention of Unlawful Infringement and HandlingScheme Occupational disasters might cause economic loss, disability or loss of life, and loss In order to prevent employees from being harmed physically or mentally during work, of confidence to return to the workplace. In severe cases, there will be a certain An-Shin plan and take necessary measures according to occupational safety and degree of psychological status such as post-traumatic stress syndrome. Since 2016, health regulations and guidelines, and include them in routine occupational safety with the mission of assisting employees to resume work, the safety and health team work items, such as on-site health services, risk identification and hazard assess- has set up a resumption plan and implemented measures for post-injury employees' ment, and maternity protection to meet gender equality. An-Shin worked to reduce reassignment, appropriate assignments for pregnant employees and employees who female employees' doubts about the safety during pregnancy and post-natal return to have suffered unlawful infringement. work, and strengthen the friendliness of the workplace. In addition, we also regularly From 2016 to 2020, the resumption plan assisted a total of 62 employees to resume carried out preventive actions against unlawful violations to identify early and reduce work. At the end of 2019, we adjusted and updated the record form to streamline the related risks through engineering or administrative improvements. process of the evaluation and record keeping. In addition, we cooperated with hospitals all around Taiwan and connected with the work strengthening and rehabilitation treatments in local hospitals or medical centers to care employees after injury. Before returning to the workplace, the job strengthening center will conduct a job function evaluation. Through the function evaluation report, the labor health service physician and the functional rehabilitation engineer will jointly evaluate the workplace environment, and timely adjust the employees' most needed help and assistance.

Miltiple notification methods(LINE platform, Case Recorded Google online notification, e-mail, phone)

Figure 6-88. In-store health checks Nurse(personnel status),human resources(in- Injury & disease and consulting surance) Tracking

Provide appropriate health education and advice work enhancement, functional rehabili- Medical advice Figure 6-90. Unlawful Infringement prevention tation by phone or email and incident handling process

Frequency of re-work interview (before re-work, Interview first month and third month after re-work). The Figure 6-89. Knowledge education and training appointment frequency of re-work tracking depends on the employee's recovery status In order to ensure the protection of employees' rights from being infringed, we had set up a notification and incident handling process (Figure 6-83). We also per- According to the doctor's diagnosis and formed frequent announcements through organized meetings, internal mailings, advice, combined with recommendations, Resumption regular training (Figure6-84), and manager self-assessment (Figure 6-85). Our restrictions, prohibition by doctors to conduct chairman stated and led to swear "zero tolerance" for unlawful infringement and rework arrangements established a company culture against workplace violations.

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6.9.5 Employee Health Check An-Shin Foods provides employees with health check services every year, including specialized checks for food staff and general medical examinations. In addition, all current employees of An-Shin are subsidized for health checks each year. After the medical examination, according to the health grading management guidelines of the Labor Health Protection Rules, the health inspection reports are graded and analyzed. In accordance with the occupational safety law "Overwork Prevention Clause" , employers who work in shifts, night work and long hours of work should plan and take necessary safety measures to prevent employees from overworking.our proactive health program operates through questionnaires, surveys, Framingham's 10-year cardiovascular disease risk prediction, and reference to personal health reports, our reports are divided into 0 to 4 levels). Levels 1 to 4 results are used by the nurses to provide monthly advice on health education, follow-up visits, as well as to arrange on-site services and labor health service physicians for consultations.

Figure 6-91. Figure 6-92. Electronic health check questionnaire Overburden work evaluation Table6-24. Abnormalities in health report (Level 3) 2017 2018 2019 Item Evaluation and Interview for Preventing Abnormal Overload and Cerebral and Cardio- people people people vascular Diseases Male≧110； 88 105 183 Waist (cm) female≧100 After collecting the data in the questionnaire survey, the scoring process is carried out. After the file is created, a personalized overwork form is built and then evaluated by BMI (kg/m*m) ≧35 34 138 159 the doctor, and interviews are conducted at the on-site service site. If necessary, an SBP≧160； 12 68 164 assignment assessment is performed. Blood Pressure (mm-Hg) DBP≧100 ≧300 0 32 24 Cholesterol (mg/dL) 2500 2,253 Overburden Counseling (people) ≧500 0 8 10 Triglyceride (mg/dL) 2000 Low Density LipoProtein ≧193 1 34 42 (mg/dL) 1500

Glutamic Acid ≧200 1 4 10 1000 Transaminase ALT (IU/L) 568 Creatinine (mg/dL) ≧2.5 0 3 3 500 373 ≦7.5 0 8 7 8 4 5 4 2 HBA1C (g/dL) 0

Each employee can use the QR Code provided on site to complete the electronic version of the health check questionnaire. The system background can display the statistical analysis of the questionnaire to further track and understand the employee's health promotion needs. Screening the employees who need to be interviewed (low burden, low risk) (low burden, (high burden, low risk) (high burden, high risk) (low burden, (high burden, high risk) (high burden, No need for counseling No need for counseling through questionnaires, including people due to hazard prevention assessment, No need for counseling (medium burden, low risk) (medium burden, medium risk) (low burden, (medium burden, medium) (medium burden, Counseling recommended Counseling recommended Counseling recommended Counseling recommended Counseling recommended over-assessment scale, mood thermometer, daily health cognition, four cancer medium risk) (high burden, screening needs, and the use of tobacco, betel, alcohol, etc. Figure 6-93. Overburden Classification and Counseling Recommendation

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6.9.6 Healthy Workplace Seal by Health Promotion Administration, Ministry Tobacco harm prevention of Health and Welfare promotion

In January, tobacco harm prevention were held at monthly meeting of store managers for 5 major operating division in the northern, central and southern Taiwa.

Figure 6-96. Tobacco harm prevention

Lectures on Mental Health -Suicide Prevention and Awareness of Stress Figure 6-94. Figure 6-95. Health Initiation Seal Health Promotion Seal Lectures at the National Store Managers Conference in March, recognizing emotional stress, using various aspects to identify your own situation, when you need An-Shin promotes health knowledge and implements health promotions for to seek psychological professional assistance, and all partners. Since 2017, we have collaborated with QiXin Clinic to host lec- consulting for related resources. Store managers can tures covering personal weight management, nutrition knowledge, and clearly identify their mental state through self-aware- exercise classes, with professional health management instructors, dieti- ness under the pressure of the workplace, and be alert tians and exercise instructors, and smart pedometers to encourage em- and seek medical treatment early. ployees to practice physical health. Employees also have access to exer- Figure 6-97. Lectures on Mental Health cise equipment in the workplace. They hope to promote that the workplace is not just synonymous with fatigue, but a healthy place caing for employee well-being. We were rewarded the Health Initiation Seal in 2017 and 2018. Safety and health notification In 2018, we extended the health promotion to all stores in Taiwan, so that scheme all employees can move together and have a healthy workplace. With the joint efforts of all partners, we obtained the Healthy Workplace Promotion In April, the Occupational Health and Safety Team Seal and the chain store certification. explained the safety and health related notification scheme at monthly store manager meeting to improve efficiency of the notification process mechanism. The 2200 participants for 32 lectures held in 2019 categories of notification include occupational accident notification, general injury and illness notification, special emergency notification, maternal protection notification, illegal violation reports, etc., to ensure that Through various health promotion activities, from the headquarters staff to Figure 6-98. Explaination of notification schem all store partners will continue to promote health. every employee can work safely and safely in the workplace.

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Activities of health Prevention of metabolic promotion syndrome

From June to August, weight control In July, a health education seminar on classes and band exercise classes were prevention of metabolic syndrome was held to for store partners in various dis- held. The face-to-face lecture model was tricts, so that each partner has the op- used to allow store managers to under- portunity to participate in activities. stand metabolic syndrome and implemented prevention

Figure 6-100. Figure 6-99. Exercise classes Prevention of metabolic syndrome

Mental health promotion Stretch band exercise course lesson

In September, an external psychologist At the store manager’ s monthly meeting was invited to give lessons and teach in September, the store manager learned store managers in south districs to relax to stretch with elastic bands. They can skills and understand their mental state. use this little instrument to exercise and relax the muscles and bones any time.

Figure 6-101. Mental health promotion Figure6-102. Stretch band exercis

The art of muscle Physical therapy relaxation exercise

In October, a functional therapist was In October, the store manager of the invited to introduce the muscle relax- Central District joined a physical therapy. ation, fascia relaxation and other skills to The functional therapist personally let the manager experience the benefits demonstrated and led the store manag- of muscle relaxation. ers to move the bones together to drive away the annoying pain.

Figure 6-103. muscle relaxation Figure6-104. Physical therapy exercise

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6.9.7 Maternity Protection Plan GRI 401-3 An-Shin complies with the “Gender Work Equality Law” and internal “Implemen- tation for Childcare Retention without Pay” and provides employees with relevant rights. Employees who have worked for one year can apply for childcare leave before their children reach the age of 3, without pay, no longer than two years. See the table below for details of childcare retention and retention over the years. Table 6-26. 2016~2017 Statics of Reinstatement and Retention after Parental Leave

Item Male Female Total Applicants for childcare leave in 2017 6 17 23 Table 6-25. Reinstatement and Retention after Parental Leave Expected reinstated in 2017 1 4 5 Year 2017 2018 2019 Actual reinstated in 2017 2 0 2 Reinstatement 40% 100% 85% Rate(Note 13) Actual reinstated in 2016 0 6 6 Retention rate (Note 14) 100% 50% 59% Still work after 12 months of reinstatement in 2016 0 6 6

(Note 13) Reinstatement rate: actual number of reinstated employees left in childcare/expected number of reinstated employees left in childcare (Note 14) Retention rate: Number of employees still in service for 12 months after reinstatement in the previous period/Number of actual reinstated employees left in the previous period Table 6-27. 2017~2018 Statics of Reinstatement and Retention after Parental Leave Item Male Female Total Applicants for childcare leave in 2018 0 22 22 Expected reinstated in 2018 0 8 8 Actual reinstated in 2018 0 8 8 Actual reinstated in 2017 2 0 2 Still work after 12 months of reinstatement in 2017 1 0 1

Table 6-28. 2018~2019 Statics of Reinstatement and Retention after Parental Leave

Item Male Female Total Applicants for childcare leave in 2019 6 25 31 Expected reinstated in 2019 4 9 13 Actual reinstated in 2019 3 8 11 Actual reinstated in 2018 0 22 22 Still work after 12 months of reinstatement in 2018 1 12 13

108 MOS CSR Report 6 Contribue Society & Prosper Together

An-Shin has built an online notification system. Protection measures, such as work 6.9.8 Maternity Notiﬁcation Scheme environment hazard identification, risk assessment, regular follow-up assistance, and Since 2016, we have followed the instruction of the Occupational Safety and Health breastfeeding education and infant care courses are provided. Relevant consultations Administration, Ministry of Labor and implemented workplace maternity protection also help enhance the chance of successful breastfeeding and indirectly strengthen measures. Through a convenient online notification system, it provides a convenient the care of the healthy next generation. The store also adjusted the suitable assign- method for all partners. Once notified by store manager, the safety and health team ment or location according to the wishes of the mother employees. will immediately send an email and asked the case to complete the first stage of preg- According to the Guidelines for the Protection of Women’ s Maternal Workplaces, the nancy self-assessment form, and the protected case will receive a good pregnancy Gender Work Equality Act and the Measures for the Establishment of Breastfeeding badge. Follow-up evaluation, interview consultation, on-site service, and if necessary, Rooms in Public Places, a breastfeeding room was set up at the headquarters since appropriate re-assignment will also be undertaken. 2015. In 2016, we applied for a subsidy from the government to make the equipment more complete and passed the Outstanding Breastfeeding Room Evaluation in 2017 by the Taipei City Government Health Bureau. In 2019, we continued to upgrade, and expected to improve the maternal health protection measures in 2020.

Figure 6-108. Self-assessment form for pregnancy and after delivery within 1 year

Maternity Cases (people) Figur 6-105. Face-to-face counseling

9 (people) 6 Figure 6-107. 4 (people) 2017~2020 Outstanding (people) Breastfeeding Room Certification 2017 2018 2019

Figure 6-109. Protected Maternity Cases

Figure 6-106. E-counseling

MOS CSR Report 109 6 Contribue Society & Prosper Together

6.10 Uplift Inﬂuence to the Communities GRI 413-1 An-Shin takes itself as a member of the community, and interacts with the local residents to offer a clean, warm and beautiful social place. On birthday of MOS Burger every March, An-Shin invites store partners and customers to carry out community cleaning activities, so that contribute to the community we live in. Take Anhe Store for example, partners of the store actively took actions to paint the walls and improved the quality of the community, instead of leaving graffiti on the walls. In addition, our lounge space in stores is available for community or family activities, which helps people networking with each other. Figure 6-110. Headquarters sweeping activity Figure 6-111. Community clean-up

6.10.1Invite Customers to Community Clean-Up GRI 413-1 On March, 12th, 1972, the first MOS Burger store was opened in Japan. Since establishment, the founder himself used to sweep the streets every day to welcome customers with a clean environment. Through this inspiring story, MOS Burger celebrates every March 12th, to recognize the founder and birthday of this fast food chain. Every year, our Chairman Lin personally led the partners to love Earth and invite customers to participate in the community cleaning activities on this day. We promoted environmental education through our own influence and inspire more people to join together. Figure 6-112. Community clean-up Figure 6-113. Community clean-up

110 MOS CSR Report 6 Contribue Society & Prosper Together

6.10.2 Anhe Store and Community Landscaping GRI 413-1 6.10.3 Family Classrooms GRI 413-1 The Anhe Store, opened on October 24, 1996, is located next to Ren-Ai Primary MOS Jiaoxi Store is located in Yilan local attraction area and planting the community School, with a history of 23 years. MOS Burger upholds the corporate belief of by using the lounge space to enhance the cohesion of the community. MOS Burger "making people happy through food, taking root in the community, and contributing to cooperated with local organization such as the Jade Bird Forest Art Class, to offer society", providing various types of customer services, including delivery to activities family activities like storytelling and origami games. The store manager also held festi- of Ren-Ai Primary School, Cathay Hospital and local residents. At the end of October val activities, such as making the rice balls. 2018, the side walls of Anhe Store were randomly painted with graffiti. The partners took two months to re-paint the walls and improve the surrounding atmosphere. The wall painting achievements are loved by the community residents, and they all express their thanks to Anhe Store partners. MOS Burger upholds the belief deeply and creates a clean, warm and beautiful community environment.

Figure 6-114. An-he Store community painting Figure 6-117. Social place for neighbors

Figure 6-115. An-he Store community painting化

Figure 6-116. An-he Store community painting Figure 6-118. Family Classroom

MOS CSR Report 111 6 Contribue Society & Prosper Together

6.11 Inﬂuence on Society GRI 413-1 6.11.2 Invoice Donation GRI 413-1 Enterprises can effectively exert their social influence to achieve greater sustainable An-Shin has cooperated with the Good Friend Mission for more than 7 years and set benefit. An-Shin Food has a total of 285 stores, which penetrates into various towns up invoice boxes within stores for donation collections, raising a total of $NT 1,793 and communities. In 2019, we expanded the cooperation with other enterprises or thousands in donations in 2019. The coin box also raised a total of $NT 15,134. The industries to magnify social influence, such as blood donation and "invoice donation raised funds are used in the 787 high-risk and vulnerable children and 1,408 commu- box" at all MOS Burger shops in Taiwan, calling on people to contribute together. nity youth services. Among them, Daqiao and Xinxing Children’ s After School Base People can donate invoices or small change freely to help those in need. Partners in provide 2,044 person-times for primary and middle school students, 3,483 per- various stores also delivered meals to elderly people, and invite community members son-times for meal service, and 185 person-times for children and children. Zhong- to conduct a charity sale to help the disadvantaged. Children have always been one shan Datong Youth Service Center served a total of 3,778 people. An-Shin uses a of the important groups that MOS Burger is concerned about. Therefore, we continue variety of methods to support these children and provide aid. An-Shin hopes that by to organize dietary education to help children to learn the correct concept of cherish- helping these children through MOS Burger stores acting as child-care centers, when ing food. In addition, we also contribute to family relations. "Love Mommy Painting" is the children grow up, they will give back to the community and help those who need it held on every Mother's Day to help children express their gratitude to their mothers. as well. This demonstrates our constant objective in contributing to our society-one child at a time.

6.11.1Blood Donation GRI 413-1 MOS Burger holds blood donation activities with local residents. Some of our colleagues are first-time donors and therefore our nurses will accompany them throughout the process. In May 2019, we cooperated with the local banks to run the blood donation program in Taipei and Taichung, and encourage more people to help those in need. We also hope community members can be more aware of their own personal ＄ health and contribute to other’s health needs. ＄

Figure 6-119. Figure 6-124. Dinner Service for Children Cooperation with local bank for 6.11.1. Blood Donation

Figure 6-122. Figure 6-123. Blood Donation and Invoice Donation Box our partner

Figure 6-120. Figure 6-121. Figure 6-125. Hand-made Activities Blood Donation by store partners Blood Donation by store partners

112 MOS CSR Report 6 Contribue Society & Prosper Together

6.11.3 Meal Sercvice to the Living Alone Elderly GRI 413-1 6.11.5 Gratitude and Charity Sale GRI 413-1 On August 20, 2019, the district managers and store managers of MOS Burger Taoyu- The biggest meaning of Mother's Day is to hope people don't an and Zhongli District, together with the volunteers of St. Paul's Hospital of Taoyuan forget to express their gratitude to their mothers. Many Taiwan- City, delivered meals to care for the elderly. Some elders are unwell or have poor ese often take their mothers to the restaurant to celebrate on physical strength and sometimes have difficulty in dining out and buying food. After that day. They will also prepare cakes, various gifts, gifts, or pre- receiving the message, MOS’ s partners joined the loving food delivery service. The pare a bunch of carnations to give to the mother. Songjiang nutritionist in the hospital prepares meals suitable for the elders, and MOS also pro- Store is located in the metropolitan commercial district. The vides vegetarian burgers to make the elders’ diet more healthy and nutritious. With consumer groups are mostly working people and local resi- the meal delivery service, partners visited the physical and mental conditions of the dents. The partners hope to expand the same love to thank elders, and assisting the needs of the elders in time. The smiles on the faces of the others and do charity sales in May. Therefore, on Saturdays and elders are best recognition for us. Sundays in May, people are invited to contribute and bring har- Figure 6-131. mony between people. Charity Sale Poster 6.11.6 Love Mommy Painting GRI 413-1

Figure 6-127. To spread the positive influence and love for family, An-Shin organized the "Love Photo of MOS Mommy Painting" activity every May. Since 2017, more than 5,154 children have Figure 6-126. partners and participated in the painting activity and the cumulative prize amount is NTD$ 211 Visit the elderly volunteers of thousands. After the painting is completed, you can redeem for a free small fries St. Paul's Hospital (value NTD$35) or enjoy the Mammy special combo. In 2019, the total number of redeemed and enjoyable activities is 2,024, which is an increase of 710 people than that of in 2018, a increase of 54%. After completing the works, you can par- 6.11.4 Food Education for Children GRI 413-1 FP4 ticipate in the balloting campaign. After voting, 11 winners were selected, and MOS gift cards was granted (value of NTD$ 500~3,000). All artwork submissions Since 2006, "food education activities" have been held in MOS Burger. It has been are also shown on our website and facebook page. more than 10 years since the promotion of healthy diet. The main purpose is to edu- cate children not to be picky about food and to cherish what they have. They learned the importance of food, the nutrition value of food and how to make healthy burgers. Participants (people) Grants(NT$) There are about 20 people per session, and there will be 4 shop partners taking 2 81,935 1,816 2,024 73,560 Figure 6-119. hours of pre-preparation teaching, 2 hours of course explanation and implementation 1,314 55,990 Cooperation process, and the overall course is about 4 hours. It has exceeded 20,952 participants with local bank since 2015. In 2019, more than 157 food education activities were held, with 628 for 6.11.1. hours and a total of 3,142 participants. Blood Donation 2017 2018 2019 2017 2018 2019

Figure 6-132. Figure 6-133. Participants of Food Educatio Participants of Love Mommy Painting Grants of Love Mommy Painting Unit: people

3,827 2,876 3,142

2017 2018 2019

Figure 6-128. Figure 6-129. Figure 6-130. Figure6-134. Figure 6-135. Participants of Food Education Burger Preparation Correct Hand Washing Painting Exhibit at srores Painting Exhibit at headquarters MOS CSR Report 113 6 Contribue Society & Prosper Together

An-Shin Smart Workplace-4-Year Column Smart Health Awareness Health Promotion Plan Health Expert Health Dashboard Health life Circle Map: My overview: Provides an overview of health status On August 15, 2017, An-Shin cooperated with the Health including weight management, nutrition management, Integrate information on 9,022 Bureau of Taipei City, the national Ministry of Health and Wel- exercise capacity and blood pressure. health-related points such as medi- fare, and the Taipei City University to implement the Smart cine, food, exercise, and sports. Health Station: Build a Bluetooth blood pressure monitor and Bluetooth body weight meter. Workplace-Health Promotion program. Using information and Health scale: provide 6 major evalua- communication technology (ICT) to introduce a health man- tion scales and give advice. agement platform, with healthy weight management as a Health education video and audio: guide, construct a supportive environment for workplace covers information such as the plan's management platform and the health, develop actions, and form smart and healthy life circle "Health Education video and audio programs in real time. Through integration from all aspects to platform" of the Dept. of Health. Figure 6-137. APP interface build a personalized intelligent health management platform, a smart life circle was set up to connect the health industry and government. Smart Diet Choice Figure 6-138. APP interface Figure 6-139. Health Station

Smart Diet Selection Drinking Water Fun Nutrition management: Pro- Drinking water record: recommended and actual vide energy intake manage- drinking water volume. ment and record function. Drinking water reminder: Set drinking water remind- Figure for healthy eating: You er according to demand. can search for information about the catering service providers. Diet QR code identification: provide nutritional information for the recorded 50 catering Figure 6-140. APP interface service providers.

Smart Health Exercise Figure 6-141. Smart drinking cup

Anytime Exercise Bar Sitting is not better than standing Sports planning/records: Provide 6 major sports planning Sedentary reminder: regularly remind users to get and teaching, sports calorie consumption query, 36 health up and move around. trail information and step counting function. Environment construction: Sedentary detection Environment construction: interactive floor mats, interac- seat cushion set, electric lifting table, adjustable tive bicycles, intelligent treadmills, intelligent plane walking screen rack, lifting computer rack. machines, Bluetooth under-table game exercise bikes, BEACON positioning. Figure 6-136. Personalized intelligent health management platform In 2019, three modules of smart health platform: smart health awareness (health expert, health dashboard), smart health diet (smart diet choice, drinking water fun), and smart health exercise (anytime exercise bar, sitting is not better than standing), were debuted as a management platform. Figure 6-142. Figure 6-143. Figure 6-144. Figure 6-145. Stair BEACON Interactive Mat Electric Lifting Table Sedentary Reminder

114 MOS CSR Report 6 Contribue Society & Prosper Together

The competition was held for demonstration workplaces in 6 different indus- Table 6-30. Pre- and post-test analysis results tries, and test the app's practicability and effectiveness. The health promotion program will conduct pre- and post-test analysis, and produce individual data Item Explanation Pre Post analysis reports, including the tester's age, waist-to-hip ratio, BMI, blood pres- Measure weight more than 3 times a week 32% 69% sure value, body fat rate, and overall value. The healthy habits questionnaire Health measurement before and after the test covers the health measurement frequency, health frequency Measure blood pressure every day 0% 7.69% awareness, drinking water, sedentary time, exercise frequency and recommen- Health knowledge The average correct answer rate 77.42% 81.43% dations, etc. as follows: Drinking water Rate of drinking water every hour 58.6% 76.92% Sedentary time Leave after 30-minute sitting 3.23% 8.01% 50-64 years old Average weekly exercise time (minutes) 84.66 121.54 6% Movement Take the stairs more than once a day 35.48% 41.67% Female frequency Below 29 64% Maintain at least 3 physical activities per week, 16.67% 18.18% 33% Male and reach a total of 150 minutes per week Age Gender 36% Absence rate Absence leave rate in the past month 19% 8% Average consumption of vegetables per day 1.55 1.58 61% Ratio of eating fruits and vegetables 1.18 1.54 30-49 years old Average consumption of fruit per day The degree to which regular exercise can be Figure 6-146. Figure 6-147. sustained when there is a lack of sports partners, 12.10% 17.77% Health fitness check age distribution Health fitness check gender distribution Self-motivated to Exercise feels stressed at work, lacks time, lacks physical strength, poor outdoor environment and lacks Table 6-29. The healthy habits questionnaire before and after sports facilities Service content - 92% Health 1. Waist and hip ratio: about 80% of total participants are normal satisfaction 2. BMI: About half of total participants are standard (48.57%) 1. The body fat rate: 67.65% of total participants belong to obesity Through the assistance of the Healthy and Smart City Program, An-Shin held the sports and level (68.42% in 2018) health courses. From 2017 to 2019, a total of 38 sports and nutrition lectures, including Problems 2. Blood pressure: 38.89% of total participants are higher than upper muscle fascia relaxation, full body roller relaxation, and full body stretching. Massage Anytime Exercise Bar Sitting is not better than standing 120/80mmHg (49.15% in 2018), 11.11% of total participants are is a way to recover from fatigue. Roller massage can provide a deeper massage to relax Sports planning/records: Provide 6 major sports planning Sedentary reminder: regularly remind users to get higher than 140/90mmHg (16.95% in 2018). muscles, promote blood circulation, improve muscle extensibility, and reduce the occurrence and teaching, sports calorie consumption query, 36 health up and move around. Suggestion More than half of total participants’ body fat rate is too high, they can of chronic pain. We encourage employees to exercise and increase their chances of getting trail information and step counting function. Environment construction: Sedentary detection use workplace smart devices to record body weight and body fat. healthy in the workplace, so that the workplace is no longer synonymous with fatigue, but a Environment construction: interactive floor mats, interac- seat cushion set, electric lifting table, adjustable health playground. tive bicycles, intelligent treadmills, intelligent plane walking screen rack, lifting computer rack. machines, Bluetooth under-table game exercise bikes, BEACON positioning.

Figure 6-148. Figure 6-149. Figure 6-150. Figure 6-151. Figure 6-152. Chairman measuring blood pressure Chairman measurong In-Body Moduley Full body roller relaxation course Step aerobic course Lower Limb Stretching Course

MOS CSR Report 115 6 Contribue Society & Prosper Together

On October 30, 2019, the Smart Health Workplace Ser- To emphasize "fun" and "interaction" and encourage employees' health awareness, vice Program Platform and Program Briefing Session An-Shin Walk Competition was specially held. The team with the most steps in the (Figure6-128) was held to explain the use method (Fig- walking competition is the winner, and the winning team members can choose one of ure6-129), including user registration, program measure- four sports equipments as prize . The total number of participating teams is 10, with a ment, and group competition. An operation manual (Fig- total of 45 participants. The smart APP shows latest results of each team and inspires ure6-130) is also availbale for users’ reference. the sports awareness of all participants. From November 1st to November 30th of 2019, a accumulated total of 8,646 thousand steps were generated by this activity. Figure 6-154. Platform and Program Briefing

Figure 6-159. Figure 6-160. Figure 6-161. Figure 6-162. Healthy Smart Walk Competition Walk Competition Walk Competition City APP Winning Team Winning Team Winning Team

Figure 6-155. On December 14, 2018, An-Shin and the Health Promotion Administration jointly pro- Figure 6-153. Specialist assists in moted the smart city healthy workplace 4+1 program, and held a joint press conference Smart Health Workplace Service Solution Platform Operation Manual operation teaching to show the company's determination. An-Shin completed the construction of smart and healthy office. The media also reported this on February 10, 2019 during the Chi- In order to promote the daily habit of health measurement, create a healthy nese New Year to encourage people to build a healthy workplace. office environment, An-Shin deployed Smart Health Management Platform and held a competition. From July to August of 2019 (43 days), as long as blood pressure, weight, and body fat are measured for 15 days, participants can get event prizes. During the promotion period, 37% of colleagues used the Smart Healthy City APP to record health measurements.

Figure 6-163. Figure 6-164. Figure 6-165. Share Experience of Healthy Joint Press Conference Coverage of smart and healthy office Workplace Figure 6-157. Reach Standard Award On December 11, 2019, the Health Promotion Administration has cooperated with Taipei City University for nearly three years. The senior officials and scholars visited the An-Shin (Figure6-141), and interacted with the participants (Figure6-142) to understand the pilot experiments.

Figure 6-167. Figure 6-158. Figure 6-156. Figure 6-166. Group photo of An-Shin, Reach standard Health measurement month event poster On-site visit and Health Promotion Administra- Award consulting tion and Taipei City University

116 MOS CSR Report 7Appendix 7.1 Limited Assurance Report by Independent Accountants

MOS CSR Report 117 7 Appendix

7.2 UN Sustainable Development Goals (SDGs)

SDGs Pages /comments Organizational profile Goal 1 End poverty in all its forms everywhere - 102-1 Name of the organization 3、5

Goal 2 Zero Hunger 4、10、13、14、21、60 102-2 Activities, brands, products, and services 36、43

102-3 Location of headquarters 3、5 Goal 3 Ensure healthy lives and promote well-being for all at all ages 21、106、108 102-4 Location of operations 6 10、21、86、87、88、89、90、92、93、 Ensure inclusive and quality education for all and promote lifelong learning 3、5 Goal 4 95、96、97、100、101 102-5 Ownership and legal form 102-6 Markets served 5 Goal 5 Achieve gender equality and empower all women and girls 21、81 102-7 Scale of the organization 5、11、81

Goal 6 Ensure access to water and sanitation for all 10 102-8 Information on employees and other workers 81 102-9 Supply chain 5、8、58、59 Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all 10、13、14 102-10 Significant changes to the organization and its supply chain 3

Goal 8 Promote inclusive and sustainable economic growth, employment and decent work for all 4、10、13、14、21、81 102-11 Precautionary Principle or approach 9、30 102-12 External initiatives N/A Goal 9 Build resilient infrastructure, promote sustainable industrialization and foster innovation 37 102-13 Membership of associations 35

Goal 10 Reduce inequality within and among countries 81 Strategy 102-14 Statement from senior decision-maker 4 Goal 11 Make cities inclusive, safe, resilient and sustainable 10、13、14、21、71、74 102-15 Key impacts, risks, and opportunities 13、14

Goal 12 Ensure sustainable consumption and production patterns 4、13、14、21、71、73、74 Ethics and integrity 102-16 Values, principles, standards, and norms of behavior 15 Goal 13 Take urgent action to combat climate change and its impacts 10、13、14、67、75 102-17 Mechanisms for advice and concerns about ethics 15

Goal 14 Conserve and sustainably use the oceans, seas and marine resources 74 Governance 102-18 Governance structure 7、26、30 Goal 15 102-19 Delegating authority 26 Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss 4、21、60、71 102-20 Executive-level responsibility for economic,environmental, and social topics 26

102-21 Consulting stakeholders on economic,environmental, and social topics 18

Goal 16 102-22 Composition of the highest governance body and its committees 26、30 Promote just, peaceful and inclusive societies 21、103 102-23 Chair of the highest governance body 26

102-24 Nominating and selecting the highest governance body 26 Goal 17 Revitalize the global partnership for sustainable development 10 102-25 Conflicts of interest 26

102-26 Role of highest governance body in setting purpose, values, and strategy 4、26

118 MOS CSR Report

26、30 26 18 30 9、18 26、30 26 26、30 30、83 30 30 26、83 26

18 N/A 18 16 18 7 Appendix

7.3 GRI Standards Index GRI 102-55

GRI 100 Universal Standards GRI Standards Disclosure Pages /comments GRI 102:General Disclosures 2016 Organizational profile

102-1 Name of the organization 3、5

102-2 Activities, brands, products, and services 36、43

102-3 Location of headquarters 3、5

102-4 Location of operations 6

102-5 Ownership and legal form 3、5

102-6 Markets served 5

102-7 Scale of the organization 5、11、81

102-8 Information on employees and other workers 81

102-9 Supply chain 5、8、58、59

102-10 Significant changes to the organization and its supply chain 3

102-11 Precautionary Principle or approach 9、30

102-12 External initiatives N/A

102-13 Membership of associations 35 Strategy

102-14 Statement from senior decision-maker 4

102-15 Key impacts, risks, and opportunities 13、14 Ethics and integrity

102-16 Values, principles, standards, and norms of behavior 15

102-17 Mechanisms for advice and concerns about ethics 15 Governance

102-18 Governance structure 7、26、30

102-19 Delegating authority 26

102-20 Executive-level responsibility for economic,environmental, and social topics 26

102-21 Consulting stakeholders on economic,environmental, and social topics 18

102-22 Composition of the highest governance body and its committees 26、30

102-23 Chair of the highest governance body 26

102-24 Nominating and selecting the highest governance body 26

102-25 Conflicts of interest 26

102-26 Role of highest governance body in setting purpose, values, and strategy 4、26

MOS CSR Report 119

26、30 26 18 30 9、18 26、30 26 26、30 30、83 30 30 26、83 26

18 N/A 18 16 18 Organizational profile

102-1 Name of the organization 3、5

102-2 Activities, brands, products, and services 36、43

102-3 Location of headquarters 3、5

102-4 Location of operations 6

102-5 Ownership and legal form 3、5

102-6 Markets served 5

102-7 Scale of the organization 5、11、81

102-8 Information on employees and other workers 81

102-9 Supply chain 5、8、58、59

102-10 Significant changes to the organization and its supply chain 3

102-11 Precautionary Principle or approach 9、30

102-12 External initiatives N/A

102-13 Membership of associations 35 Strategy

102-14 Statement from senior decision-maker 4

102-15 Key impacts, risks, and opportunities 13、14 Ethics and integrity

102-16 Values, principles, standards, and norms of behavior 15

102-17 Mechanisms for advice and concerns about ethics 15 Governance

102-18 Governance structure 7、26、30

102-19 Delegating authority 26

102-20 Executive-level responsibility for economic,environmental, and social topics 26

102-21 Consulting stakeholders on economic,environmental, and social topics 18

102-22 Composition of the highest governance body and its committees 26、30

102-23 Chair of the highest governance body 26

102-24 Nominating and selecting the highest governance body 26

102-25 Conflicts of interest 26

102-26 Role of highest governance body in setting purpose, values, and strategy 4、26

7 Appendix GRI 100 Universal Standards GRI Standards Disclosure Pages /comments GRI 102:General Disclosures 2016 102-27 Collective knowledge of highest governance body 26、30 102-28 Evaluating the highest governance body’s performance 26 102-29 Identifying and managing economic, environmental, and social impacts 18

102-30 Effectiveness of risk management processes 30

102-31 Review of economic, environmental, and social topics 9、18

102-32 Highest governance body’s role in sustainability reporting 26、30

102-33 Communicating critical concerns 26

102-34 Nature and total number of critical concerns 26、30

102-35 Remuneration policies 30、83

102-36 Process for determining remuneration 30

102-37 Stakeholders’ involvement in remuneration 30

102-38 Annual total compensation ratio 26、83

102-39 Percentage increase in annual total compensation ratio 26 Stakeholder engagement 102-40 List of stakeholder groups 18 102-41 Collective bargaining agreements N/A 102-42 Identifying and selecting stakeholders 18 102-43 Approach to stakeholder engagement 16 102-44 Key topics and concerns raised 18 Reporting practice 102-45 Entities included in the consolidated financial statements Our Consolidated Subsidiaries: 1.An-shin Food Services (Singapore) Pte. Ltd. 2.XiaMen An-Shin Food Management Co., Ltd. According to the consolidated financial statement, the report focus on Taiwan. 102-46 Defining report content and topic boundaries 3 102-47 List of material topics 18 102-48 Restatements of information N/A 102-49 Changes in reporting N/A 102-50 Reporting period 3 102-51 Date of most recent report 3 102-52 Reporting cycle 3 102-53 Contact point for questions regarding the report 3 102-54 Claims of reporting in accordance with the GRI Standards 3 102-55 GRI content index 119 102-56 External assurance 3、117

120 MOS CSR Report Organizational profile

102-1 Name of the organization 3、5

102-2 Activities, brands, products, and services 36、43

102-3 Location of headquarters 3、5

102-4 Location of operations 6

102-5 Ownership and legal form 3、5

102-6 Markets served 5

102-7 Scale of the organization 5、11、81

102-8 Information on employees and other workers 81

102-9 Supply chain 5、8、58、59

102-10 Significant changes to the organization and its supply chain 3

102-11 Precautionary Principle or approach 9、30

102-12 External initiatives N/A

102-13 Membership of associations 35 Strategy

102-14 Statement from senior decision-maker 4

102-15 Key impacts, risks, and opportunities 13、14 Ethics and integrity

102-16 Values, principles, standards, and norms of behavior 15

102-17 Mechanisms for advice and concerns about ethics 15 Governance

102-18 Governance structure 7、26、30

102-19 Delegating authority 26

102-20 Executive-level responsibility for economic,environmental, and social topics 26

102-21 Consulting stakeholders on economic,environmental, and social topics 18

102-22 Composition of the highest governance body and its committees 26、30

102-23 Chair of the highest governance body 26

102-24 Nominating and selecting the highest governance body 26

102-25 Conflicts of interest 26

102-26 Role of highest governance body in setting purpose, values, and strategy 4、26

7 GRI 200 Topic-specific Standards Appendix

GRI Standards Disclosure Pages /comments 26、30 Economic Performance

26 GRI 103:Management Approach 2016 103-1 Explanation of the material topic and its Boundary 24

18 103-2 The management approach and its components 24

30 103-3 Evaluation of the management approach 24

9、18 GRI 201:Economic Performance 2016 201-1 Direct economic value generated and distributed 11

26、30 201-2 Financial implications and other risks and opportunities due to climate change 67

26 201-3 Defined benefit plan obligations and other retirement lans 83

26、30 201-4 Financial assistance received from government 35 30、83 Product and Service Innovation

30 GRI 103:Management Approach 2016 103-1 Explanation of the material topic and its Boundary 24

30 103-2 The management approach and its components 24 26、83 103-3 Evaluation of the management approach 24 26 Non-GRI Disclosure, not applicable Product R&D and Innovation 36-50 Customer Health and Safety 18 GRI 103:Management Approach 2016 103-1 Explanation of the material topic and its Boundary 52 N/A 103-2 The management approach and its components 52 18 103-3 Evaluation of the management approach 52 16 GRI 416:Customer Health and Safety 2016 416-1 Assessment of the health and safety impacts of product and service categories 64 18 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 64 Traceable Agricultural Products GRI 103:Management Approach 2016 103-1 Explanation of the material topic and its Boundary 52

103-2 The management approach and its components 52

103-3 Evaluation of the management approach 52 Non-GRI Disclosure, not applicable Traceable agricultural products 60-63 Marketing and Labeling GRI 103:Management Approach 2016 103-1 Explanation of the material topic and its Boundary 52 103-2 The management approach and its components 52

103-3 Evaluation of the management approach 52 GRI 417:Marketing and Labeling 2016 417-1 Requirements for product and service information and labeling 64 417-2 Incidents of non-compliance concerning product and service information and labeling 0 non-compliance incident

417-3 Incidents of non-compliance concerning marketing communications 0 non-compliance incident GRI 202:Market Presence 2016 202-2 Proportion of senior management hired from the local community 81 GRI 302:Energy 2016 302-1 Energy consumption within the organization 70 302-3 Energy intensity 70

302-4 Reduction of energy consumption 68 MOS CSR Report 121 7 Appendix GRI 200 Topic-specific Standards

GRI Standards Disclosure Pages /comments

GRI 303:Water 2016 303-1 Water withdrawal by source 70 303-2 Water sources significantly affected by withdrawal of water 頁碼/補充說明No usage of natural running water GRI 305:Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions 70 305-4 GHG emissions intensity 70

305-5 Reduction of GHG emissions 68

GRI 306:Effluents and Waste2016 306-2 Waste by type and disposal method 72 GRI 307:Environmental Compliance 2016 307-1 Non-compliance with environmental laws and rergulations 69 GRI 308:Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using environmental criteria 58 308-2 Negative environmental impacts in the supply chain and actions taken 58

GRI 401:Employment 2016 401-1 New employee hires and employee turnover 81 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 83

401-3 Parental leave 108

GRI 403:Occupational Health and Safety 2016 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, 102 and number of work-related fatalities

403-3 Workers with high incidence or high risk of diseases related to their occupation N/A

GRI 404:Training and Education 2016 404-1 Average hours of training per year per employee 93 404-3 Percentage of employees receiving regular performance and career development reviews 83

GRI 405:Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees 26、83 GRI 413:Local Communities 2016 413-1 Operations with local community engagement, impact assessments, and development programs 110-113 GRI 414:Supplier Social Assessment 2016 414-1 New suppliers that were screened using social criteria 58 414-2 Negative social impacts in the supply chain and actions taken 59

GRI 418:Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 46 GRI 419:Socioeconomic Compliance 2016 91, In 2019, we had 1 tax fine totaling $NT 419-1 Non-compliance with laws and regulations in the social and economic area 1,500, we will strengthen management to prevent these cases in the future

FP1 Percentage of purchased volume from suppliers compliant with company’s sourcing policy. 60 FP2 Percentage of purchased volume which is verified as being in accordance with credible internationally 60 recognized responsible production standards, broken down by standard. FP4 Nature, scope and effectiveness of any programs and practices that promote access to healthy lifestyles; the prevention of chronic disease; access to healthy, nutritious and affordable food; and 113 improved welfare for communities in need.

FP5 Percentage of production volume manufactured in sites certified by an independent third party accord- 54 ing to internationally recognized food safety management system standards. Policies and practices on communication to consumers about ingredients and nutritional information 64 FP8 beyond legal requirements.

122 MOS CSR Report 7 Appendix 7.4 Rules Governing the Preparation and Filing of Corporate Social Responsibility Reports by Listed Companies (hereinafter referred to as the“Rules”) Article 4, Paragraph 1 Emphasized Disclosures and Summary of Subject Information Assured No. Subject Matter Information Applicable Criteria Rules Pages

The An-Shin Quality Assurance Division continues to conduct sampling inspections for MOS stores throughout the year (Note21), and to inspect the Following the Food Safety and Health Management Law and the 1 hygiene quality, water quality, conditioning equipment, surface application, temperature and each of the foods sold by each store. The methods of Good Food Hygiene Standards, to carry out the sampling sampling inspection follow the Food Safety and Health Management Law and the Good Food Hygiene Standards, to carry out the sampling inspection inspection of sanitary operations with reference to the food of sanitary operations with reference to the food safety management system and the important control point procedures for hazard analysis. safety management system and the important control point Subparagraph procedures for hazard analysis. Percentage of Inspection Rate, 66 Except for the first quarter water quality inspection (including ice, filtered water, tap water), the total number of shops in the second quarter to the fourth 1, quarter that were above level "Good" (Note 22) was 97.7%. The second qualification rate of re-examination of the "to be improved" shops reached 100%. and Reinspection Satisfaction Rate were calcaulated from Q2-Q4. Item 1 (Note 21) Including the first season water quality sanitation inspection and the second to fourth season comprehensive sanitation sampling, except for some shops to arrange operations due to suspension of business, withdrawal or new store opening. (Note 22) The results of the random inspection are divided into 4 levels: perfect, excellent, good, and to be improved. The shop to be improved will also open a special visit report and strengthen the counseling until the re-examination.

Subparagraph 2 In 2019, we purchased a total of NT$1,339,668 thousand HACCP certified food material products, making up 74% of our total food material purchases. In 2019, ISO 22000 or HACCP certified purchase amount 1, 62 A total of NT$1,458,375 thousand of ISO 22000 food material certified products were purchased, making up 81% of our total food material purchase. divided by total food purchases gave the percentage. item 1

In 2019, we complied with "Act Governing Food Safety and Sanitation", "The Regulations on Good Hygiene Practice for Food, GHP", "Enforcement 3 In 2019 fines due to violations of " Act Governing Food Safety Subparagraph Rules of the Act Governing Food Safety and Sanitation", "Standards for Pesticide Residue Limits in Foods", and related food safety regulations and 64 therefore had no violations or fines (Note 13). and Sanitationand" and related enforcement rules and regula- 1, (Note 13) Food Safety Regulations can be referenced in the following website: https://www.fda.gov.tw/TC/law.aspx?cid=62&pn=2 tions. item 2

Subparagraph In 2019, FSC certified paper purchasing divided by total paper 4 In 2019, NT$ 50,177 thousand of FSC certified packaging, cups, paper bags, and product cases were purchased, making up 69% of our packaging 1, 62 costs. purchase packaging gave the percentage.. item 3 5 To ensure the continuous improvement and effective implementation of the ISO 22000 related food safety management system, we passed the reassessment on Feb. 18, 2019. The goal of ISO 22000 & HACCP certification for Songjiang Store is to become a demonstration store for implementing In 2019 ISO22000 and HACCP certified store’ssales revenues Subparagraph ISO 22000 food safety management system. In 2019, the amount of goods sold by Songjiang Store accounted for 0.65% of the net revenue of the divided by total company sales revenues gave the percentage. 1, 54 company's standalone statements. item 4

6 New Supplier and Product Development Evaluation Process Document review: Confirmation of registration certificate and other relevant verification certificates. On-site qualification review: Before a new supplier or new product is launched, we conduct evaluations according to the GHP through factory visits, In 2019 according to GHP regulations, we evaluate new including workplace, equipment, material management, quality control and staff management. Only suppliers with a B grade (possible grades of: A, B, Subparagraph suppliers by: number of new suppliers, total purchases, and 58 C, or D grade), and above can produce our products. C level suppliers must undergo improvement plans and consulting in order for us to conduct satisfactory percentage. Same evaluations apply to both direct 1, business with them. B grade suppliers refer to companies with a score of 70% or higher. If you receive a D grade rating, offers will be rejected. In 2019, and indirect suppliers. item 5 we undergo 20 on-site inspections, 51 factory production lines evaluated, which made up 23% of our total suppliers, with 100% satisfaction. In addition, 6 manufacturers, new non-direct trading suppliers and a total of 7 factory production lines were evaluated with 100% satisfactory results.

7 Supplier Evaluation for Current Suppliers "Annual Supplier Evaluate Plan" is scheduled in accordance with "Suppliers Management Procedures". Procurement Dept. has statistics on each In 2019 aspects assessed through current supplier evaluation, supplier on transaction amount, cooperation, and conducts evaluations every year. Evaluation includes management ability, product quality, services number of suppliers, frequency of evaluation, the percentage of Subparagraph and delivery time. In 2019, there were 38 suppliers with 48 inspections on agricultural and livestock products, which made up 44% of our suppliers, with purchase of food materials, produce, meat & poultry, the 59 100% satisfactory results. Other suppliers made up of 9 suppliers had a total of 12 inspections, 12 indirect suppliers underwent 12 evaluations, also with qualification rate, and the evaluation of other and indirect 1, 100% satisfactory results. suppliers, number of suppliers, frequency of evaluation, and the item 5 Currently, there are three levels of our evaluations. The three levels of evaluation are: A (70% and above, with priority for increased purchasing), B qualification rate. (60-70%, with acceptable purchasing), C (needing improvement, or cancel contracts.)

8 Although An-Shin is not required to tracks the traceability system as defined in Article 9 of the Food Safety and Health Administration Law, we voluntarily check the self-developed new ingredients (Note 15) (Note 16). In 2019, a total of 49 of food quality specifications was reviewed. According to its food quality specifications, 48 materials were traceable to third-tier suppliers, with a rate of 98%. (Note 16) (Note 15) The self-developed new food inspection department will review the first use of the cooperative development of the supplier, the re-sale of the In 2019, the total number and proportion of new ingredients that obtained quality specifications based on the "Commodity Subparagraph old raw materials (food ingredients), the formula change, and the provision of the product quality specification, excluding the limited store sales, 65 Non-MOS brand sold and used in stores, as well as ingredients for fruits and vegetables. Supply Contract"and could be traced back to third-tier suppli- 1, (Note 16) At present, the traceability of raw materials is graded according to the ingredients. Each ingredient has a quality specification. Each specifica- ers. item 6 tion is aimed at exposing third-tier information. For example, An-Shin's ingredients include tomatoes, meat, bread, etc. (first tier), which will be traced back to the suppliers of meat (second tier) and upstream of suppliers (third tier). Some agricultural raw materials (such as rice and carrots) are difficult to trace back to the third tier because the suppliers purchased them from the fruit and vegetable collection market.

MOS CSR Report 123 7 Appendix

No. Subject Matter Information Applicable Criteria Rules Pages

Of the 49 self-developed new ingredients in the 2019 new review, 47 items contained foreign raw materials (Note 17), and 47 inspections of 9 In 2019, the total number of new ingredients containing foreign raw materials and the Subparagraph certificates of origin related to the raw materials have been completed, accounting for 100% of the items containing foreign raw materials. 65 (Note 17) The relevant certificate of origin may include an import declaration, an import permit, an additive license or an inspection total number and proportion of new ingredients with inspections of certificates of 1, certificate/report. origin. item 6

10 In 2019, the purchase for TAP traceability-certified agricultural and livestock products was NT$ 78,928 thousand, making up 69% of total In 2019, the total TAP certified purchase complied with Council of Agriculture Trace- Subparagraph purchasing for agricultural and livestock products. ability System as a percentage of the total purchase amount of agricultural and 1, 60 livestock products. item 6 Microorganisms ● Environmental smear total bacterial count and E. coli group test method 11 ● Dry Test: with reference to Tokyo’s Department of Health Method Certified by TFDA （） Food: Microorganisms, E.Coli Groups, E.Coli Wet Test: 3M e.Swab BPW Test ● Method Certified by TAF Chemicals Food: Microorganisms, E.Coli Groups, E.Coli, Staphylo- ● Rapid Bioassay for Pesticide Residues certified by the Council of Agriculture coccus aureus ( recently added in 2019 ) , Pesticide residues: organophosphorus & aminoformate series pesticides ● Subparagraph Salmonella(recently added in 2019) Antibiotic and Clenbuterol Inspection Methods for Fresh Meat, Eggs, Seafood In 2019, food inspection followed TFDA & TAF certified and internationally Water: Total # of colonies, E.Coli Groups Antibiotic rapid screening reagent kit Premi® Test recognized inspection methods (for example: AOAC) to test food products and 1, 56 ● Method refer to TFDA announced and Lexopamine rapid test kit other proactive inspection items. item 7 recommended(recently added in 2019) Clenbuterol Hydrochloride Rapid Test Reagent Kit Food: Staphylococcus aureus, Enterobacteriaceae Clenbuterol 3-in-1 (CB clenbuterol/RAC ractopamine/SB salbutamol) ● Method in Accordance to (AOAC) Method rapid test reagent (Note 7) Food: Microorganisms, E.Coli Groups, E.Coli, Listeria (Note 7) From January to May of 2019, ractopamine and clenbuterol hydro- monocytogenes, E. coli O157: H7, Enterobacteriaceae chloride rapid test kits were used; after June, the three-in-one clenbuterol (recently added in 2019) rapid test reagent kits were used. 12 In 2019, the total inspections testing by the laboratory included products, drinks, ice, water, and materials (Note 4) was 3,042 total, with In 2019, the number of proactive tests for microorganisms and chemicals, were 2,732 satisfactory results and 89.8% satisfactory rate. These testings include microorganisms (Note 5) and vegetable and fruit pesticide conducted with reference to "Sanitary Standards for Raw and Cooked Mixed Foods", residues and rapid testing of animal drugs. "Beverage Hygiene Standards", "Frozen Food Hygiene Standards, The allowable Subparagraph (Note 4) Samples are from the Business Inspection Department, suppliers, An-Shin Smart Plant Factory, and synchronous sampling with quantities of "Drinking Water Quality Standards", "General Food Hygiene Standards", 1, 56 the government agency, and shopping centres. "Ice Hygiene Standards", and the number of qualified and total qualified rates item 7 (Note 5) The regulations are based on the hygiene standards for cooked foods, ready-to-eat foods, food hygiene standards, frozen food determined by the company's internal rapid detection method for pesticides and hygiene standards, drinking water quality standards, general food hygiene standards, and ice hygiene standards. residues of fruits and vegetables, and animal drugs. The total expenses in 2019 at the food inspection centre were NT$ 7,060 thousand (Note 6), including third-party inspection fees In 2019 the food inspection centre expenditure divided by total company operating Subparagraph 13 NT$1,596 thousand. The total expenses made up 3.52% of operating profit, and 0.13% of sales revenue. profit gives the percentage. Also, the food inspection centre expenditure divided by 56 (Note 6) The Food Inspection Centre expenses include: third-party inspection fees (including equipment adjustment), laboratory one- 1, total company sales revenue gives the other percentage. time-use test kits, equipment purchase, salary, rent, proficiency tests, training and maintenance of equipment, etc. item 7 In 2019, the number of the training hours of food safety and health for store managers (Note 1) divided by the average number of store managers in 2019 (Note 2, Note 3). Note 1: The food safety and health related courses of the store manager in 2019 include: (1) Food safety and hygiene education training course, (2) Hygiene training course, (3) Store manager monthly meeting food safety and hygiene related hours, (4) Store manager license training. All stores must send staff to participate in store manager monthly meetings. If the store manager is unable to attend for some Voluntary In 2019, the average number of training hours per store manager is 16.11 hours, which include 6.26 average training hours of occupational 14 reason, other staffs who are not the store manager may participate in the store man- assurance 52 safety education, such as safety and sanitation, occupational safety regulation, promotion of awareness on prevention of accidents and ager monthly meeting instead, and each store is counted as once. items harms, etc. Note 2: The definition of An-Shin store manager includes: (1) acting store manager (2) new store manager (3) A-level store manager (4) B-level store manager (5) senior store manager. Some stores are managed by district managers (including department manager, assistant department manager and supervisor) as store manager. Note 3: The calculation method of the average number of store managers in 2019 is as follows: (the number of store managers in December 2018 + the number of store managers in December 2019)/2. 15 A total of risk-hazard substances outsourcing test (Note 18) was 158 in 2019, and the number of qualified was 155 (Note 19). The second qualification rate after counseling and tracking reached 100%. Voluntary (Note 18) Risk-hazardous substances refer to the inspections in accordance with the hygiene standards items in the products announced In 2019, the total number of third party inspections, qualified inspections, and assurance 65 by the Food and Drug Administration of the Ministry of Health and Welfare. pass rate. items (Note 19) The qualified rate of the products supplied by suppliers after being inspected by An-Shin in accordance with the hygiene standards items in the products announced by the Food and Drug Administration of the Ministry of Health and Welfare. As of December, 31st, 2019, we had a total of 275 stores, aside from special conditions (due to coordination with the lessor to adjust the In 2019 the monthly pesticide control sanitation conducted in stores (note: including Voluntary 16 schedule or due to natural disasters), there is a monthly pesticide inspection conducted, with a total of 2,871 times, conducted by vector control independent stores and stores located in department stores, shopping centres, and assurance 53 service companies licensed by the Environmental Protection Agency of the Executive Yuan, which was in cooperation with An-Shin(Note3) . schools). (Note 3) Pesticide counts are based on effectiveness. If pesticide inspection is done more than once a month, it is only counted as one time. items Voluntary 17 A total of 198 self-inspection reports for 2019 annual regular food suppliers were obtained. The total number of 2019 self-inspection reports obtained from regular food suppliers. 65 (Note) Some of the 2019 self-inspection reports were obtained in 2020. assurance items

124 MOS CSR Report