Stock Code: 5880 COOPERATIVE FINANCIAL HOLDING CO.,LTD. TAIWAN COOPERATIVE FINANCIAL HOLDING CO.,LTD.

ANNUAL REPORT 2017

Proactive．Agile．Innovative ANNUAL REPORT 2017 Proactive．Agile．Innovative

TAIWAN COOPERATIVE FINANCIAL HOLDING CO.,LTD.

No.225, Section 2, Chang’an East Road, City, 105, Taiwan R.O.C.

Tel : +886-2-2173-8888

Fax : +886-2-2731-3677

This annual report is available at our website: http://www.tcfhc.com.tw Printed on April 24, 2018 Spokesperson Taiwan Cooperative Securities Investment Trust Co., Ltd. Name: Mei-Tsu Chen Address: 13th Floor, No.85&87, Section 2, Nanjing East Road, Zhongshan Position: Executive Vice President District, Taipei City, 104, Taiwan R.O.C. Tel: +886-2-2173-8888 Tel: +886-2-2181-5999 Email: [email protected] Website: http://www.tcb-am.com.tw Taiwan Cooperative Venture Capital Co., Ltd. Deputy Spokesman Address: 13th Floor, No.325, Section 4, Zhongxiao East Road, Da’an Name: Chun-Lung Chou District, Taipei City, 106, Taiwan R.O.C. Position: Executive Vice President Tel: +886-2-8772-6718 Tel: +886-2-2173-8888 Email: [email protected] BNP Paribas Cardif TCB Life Insurance Co., Ltd. Address: 10th Floor, No.325, Section 4, Zhongxiao East Road, Da’an TCFHC Group Contact Information District, Taipei City, 106, Taiwan R.O.C. Tel: +886-2-2772-6772 Taiwan Cooperative Financial Holding Co., Ltd. Website: http://www.tcb-life.com.tw Address: 17th & 19th Floors, No.225, Section 2, Chang’an East Road, Songshan District, Taipei City, Stock Transfer Agent 105, Taiwan R.O.C. Yuanta Securities Co., Ltd. Tel: +886-2-2173-8888 (switchboard) Address: B1 Floor, No.210, Section 3, Chengde Road, Datong District, Website: http://www.tcfhc.com.tw Taipei City, 103, Taiwan R.O.C. Taiwan Cooperative Bank, Ltd. Tel: +886-2-2586-5859 Address: No.225, Section 2, Chang’an East Road, Website: http://www.yuanta.com.tw Songshan District, Taipei City, 105, Taiwan R.O.C. Tel: +886-2-2173-8888 (switchboard) Credit Rating Agency Website: http://www.tcb-bank.com.tw Taiwan Ratings Corporation Taiwan Cooperative Securities Co., Ltd. Address : 49th Floor, ( Tower), No.7, Xinyi Road, Section 5, Address: 6th Floor, No.325, Section 4, Zhongxiao East Taipei City, 110, Taiwan R.O.C. Road, Da’an District, Taipei City, 106, Taiwan, R.O.C. Tel: +886-2-8722-5800 Tel:+886-2-2731-9987 ’ Website: http://www.tcfhc-sec.com.tw Standard & Poor s Ratings Services Address : Unit 1, Level 69, International Commerce Centre, 1 Austin Road Taiwan Cooperative Bills Finance Corporation Ltd. West, Kowloon, Hong Kong Address: 14th Floor, No.85&87, Section 2, Nanjing Tel: +852-2533-3500 East Road, Zhongshan District, Taipei City, 104, Taiwan R.O.C. Auditors Tel: +886-2-2522-1656 Deloitte & Touche Website: http://www.tcb-bills.com.tw Address: 12th Floor, No.156, Section 3, Minsheng East Road, Songshan Co-operative Assets Management Co., Ltd. District, Taipei City, 105, Taiwan R.O.C. Address: 7th Floor, No.325, Section 4, Zhongxiao East Tel: +886-2-2545-9988 Road, Da’an District, Taipei City, 106, Taiwan R.O.C. Website: http://www.deloitte.com.tw Tel: +886-2-8772-0868 Website: http://www.coamc.com.tw Notice to readers This English version annual report is a summary translation of the Chinese version and is not an official document of the shareholders’ meeting. If there is any discrepancy between the English version and Chinese version, the Chinese version shall prevail. CONTENTS

02 1. Letter to Shareholders

14 2. About TCFHC Group

16 3. Corporate Governance Report

24 4. Capital Overview

30 5. Operating Overview

37 6. Financial Information

170 7. Financial Status Review and Risk Management Discussion 2 Letter to Shareholders

1. Letter to Shareholders

03 1.1 TCFHC Group’s Performance in 2017

09 1.2 Overview of Operating Plans for 2018

11 1.3 Future Development Strategies

11