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DISCLAIMER THIS ENGLISH VERSION OF THE ANNUAL REPORT IS A SUMMARIZED TRANSLATION OF THE CHINESE VERSION OF WISTRON NEWEB CORPORATION’S ANNUAL REPORT. THIS DOCUMENT IS CREATED FOR THE SOLE PURPOSE OF THE CONVENIENCE OF READERS AND IS NOT AN OFFICIAL DOCUMENT REPRESENTING THE FINANCIAL POSITION OF THE COMPANY PER TAIWAN LAWS. WISTRON NEWEB CORPORATION DOES NOT GUARANTEE THE ACCURACY OF THIS TRANSLATED DOCUMENT. READERS WISHING TO VIEW THE OFFICIAL AUDITED VERSION OF WISTRON NEWEB CORPORATION’S FINANCIAL REPORTS MAY OBTAIN A COPY OF THE WISTRON NEWEB CORPORATION ANNUAL REPORT (CHINESE VERSION) ON THE WISTRON NEWEB CORPORATION WEBSITE (WWW.WNC.COM.TW). 1. Name, Title, and Contact Information for the Company Spokespersons Spokesperson: Jona Song Acting Spokesperson: Molly Lin Title: Chief Financial Officer Title: Associate Vice President E-mail: [email protected] E-mail: [email protected] Tel.: +886-3-666-7799 Tel.: +886-3-666-7799 2. Address and Telephone Number of the Company’s Registered Office and Headquarters Headquarters: 20 Park Avenue II, Hsinchu Science Park, Hsinchu 308, Taiwan Factory: 5 Lihsin Rd. VI, Hsinchu Science Park, Hsinchu 300, Taiwan Tel.: +886-3-666-7799 3. Address and Contact Information for Wistron NeWeb Corporation Shareholders Services Office Address: No. 158, Singshan Rd., Neihu Dist., Taipei, 11469, Taiwan Tel.: +886-2-6600-7998 Website: www.wnc.com.tw 4. Most-recent Address and Contact Information of the Auditing CPA Name: Hai-Ning Huang and Sing-Hai Wei Website: www.kpmg.com.tw Auditing CPA: KPMG Tel.: +886-2-8101-6666 Address: 68F, Taipei 101 Tower, No.7, Sec.5, Xinyi Road, Taipei 110, Taiwan 5. For more information about Wistron NeWeb Corporation GDRs: N/A 6. For more information about Wistron NeWeb Corporation, visit: www.wnc.com.tw Index 1. LETTER TO SHAREHOLDERS ............................................................................................... 1 2. COMPANY INTRODUCTION .................................................................................................. 3 2.1 DATE OF ESTABLISHMENT ............................................................................................................................. 3 2.2 MILESTONES .................................................................................................................................................. 3 3. OPERATIONAL HIGHLIGHTS ............................................................................................... 6 3.1 ORGANIZATION STRUCTURE .......................................................................................................................... 6 3.2 BOARD OF DIRECTORS, SUPERVISORS, AND KEY MANAGERS BACKGROUND INFORMATION ........................ 8 3.3 CORPORATE GOVERNANCE ......................................................................................................................... 14 4. CAPITAL OVERVIEW ............................................................................................................. 33 4.1 CAPITAL AND SHARES ................................................................................................................................. 33 5. OVERVIEW OF BUSINESS OPERATIONS ......................................................................... 36 5.1 BUSINESS CONTENT .................................................................................................................................... 36 5.2 MARKET AND SALES OVERVIEW ................................................................................................................. 43 5.3 EMPLOYEE DATA DURING THE MOST RECENT TWO YEARS AND THE CURRENT FISCAL YEAR UP TO THE DATE OF PRINTING OF THE ANNUAL REPORT .............................................................................................. 50 5.4 ENVIRONMENTAL PROTECTION MEASURES ................................................................................................. 50 6. FINANCIAL STANDING.......................................................................................................... 51 6.1 MOST RECENT FIVE-YEAR CONCISE FINANCIAL INFORMATION.................................................................. 51 6.2 MOST RECENT FIVE-YEAR FINANCIAL ANALYSIS ....................................................................................... 59 6.3 2015 AUDIT COMMITTEE’S REVIEW REPORT .............................................................................................. 63 6.4 FINANCIAL REPORTS ................................................................................................................................... 64 7. FINANCIAL ANALYSIS, FINANCIAL PERFORMANCE ANALYSIS, AND RISK MANAGEMENT ...................................................................................................................... 134 7.1 FINANCIAL ANALYSIS (CONSOLIDATED) ................................................................................................... 134 7.2 FINANCIAL PERFORMANCE ANALYSIS (CONSOLIDATED) .......................................................................... 135 7.3 CASH FLOW ANALYSIS .............................................................................................................................. 136 7.4 EFFECTS OF SIGNIFICANT CAPITAL EXPENDITURES ON FINANCIAL OPERATIONS: ..................................... 136 7.5 POLICY FOR REINVESTMENT ...................................................................................................................... 136 7.6 RISK MANAGEMENT .................................................................................................................................. 137 7.7 OTHER IMPORTANT MATTERS ................................................................................................................... 139 1. Letter to Shareholders Dear Shareholders, Looking back on the past year, developments and applications in the area of the Internet of Things, Internet of Vehicles, Industry 4.0, and the Smart Home were in the limelight of the communications industry across the globe. These developments are generally in line with WNC’s technology roadmaps and development plans over the past; as a result, we have been able to sustain respectable growth momentum over the past years. Looking into the future, we are confident that favorable factors such as market demand and customer trust will help us generate sustainable and stable profits and growth. Financial and Operational Results In 2015, WNC’s consolidated revenue was NT$52.18 billion with an annual growth rate of 29%. Consolidated gross profit was NT$6.93 billion, and consolidated profit after tax was NT$1.97 billion. Basic earnings per share were NT$5.97. Research and Development Status The age of the IoE (Internet of Everything) has accelerated the evolution of communications technologies and increased the needs for cross-industry and cross-technology integration, as well as the integration of software and hardware. It has also, however, deepened the difficulty of integration between different systems. WNC’s products and applications encompass various short-distance, mid-distance, and long-distance communications products. With our expertise in antenna and RF design, software and hardware development, user interface design, and extensive experience in integration across different product lines, we expect to integrate IoT solutions in the new age and continue to launch communications products that fulfill market demand and lead industry trends. In 2015, WNC won the CES Innovation Award with its “24GHz Radar System” and “RFID Smart Shelf System”; concurrently, we were also honored with the “Hsinchu Science Park R&D Accomplishment Award”. This is the sixth time WNC has won this prestigious award, showing that our research efforts have been recognized both at home and abroad. Furthermore, as of the end of 2015, WNC has over 1,800 approved patents and patents pending. Operation and Management In response to a need for business development and capacity expansion, the second plant of the Wistron NeWeb (Kunshan) Corporation was completed during the third quarter of 2015 and became operational in the fourth quarter. Also in the fourth quarter, we purchased the S1 property, a new plant on Lihsin Rd. VI, Hsinchu Science Park, to serve as WNC’s main production site in Taiwan. S1 is projected to commence operation in the second quarter of 2016 to meet capacity requirements in the future. In recent years, world economies have experienced slow growth, and markets still appear to be fickle and ever-changing. This has led to challenges such as rapidly changing business environments and product life cycles and constantly fluctuating exchange rates of the world’s major currencies. In order to remain highly competitive in such an environment and secure a place in the ever-changing ICT market, we have optimized our existing value chain and developed new products and technologies through a holistic perspective that is more in-tune with international developments. We have implemented ongoing internal improvement projects to enhance our problem-solving capabilities and flexibilities and have also improved our responsiveness to the diverse and pressing demands of customers and from the markets. -1- In 2015, we participated in the first Corporate Governance Evaluation organized by the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx), and we were rated among the top 20% of all publicly traded companies. We were also included as a component of the “TWSE Corporate

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