As we entered the post-pandemic period in 2023, tourism, travel and leisure activities started to perk up, the labor market gradually improved, applications and opportunities relating to emerging technologies such as AI expanded, and businesses continued to invest in R&D and process improvement in response to the trends of digitalization and the transition to net zero, which fueled consumption and investment momentum. Based on a solid operating foundation, the Group stayed on top of business opportunities to reboot the economy, as it continued to enhance the integration of its core operations with ESG factors internally, and concentrated on innovation in FinTech as well as talent cultivation and transformation. Externally, it actively engaged in negotiations with potential financing and investment targets, and urged them to make the transition to carbon reduction and sustainable development. Thanks to concerted efforts, the Group turned in impressive growth and operating results in 2023, as our assets increased to NT$4.43 trillion. Its consolidated net income totaled NT$67.255 billion. Its after-tax net profit reached NT$22.461 billion, up 9.06% from the previous year while setting a new profit record again. The Group's consolidated after-tax ROE and ROA amounted to 9.51% and 0.52%, respectively, and its after-tax earnings per share was NT$1.65.

In light of the importance of sustainable development to business operation. FFHC established the "CSR Committee" in 2011, which was renamed "ESG Committee" in 2022. In keeping with the business management philosophy of "Building Ethical Governance for a Sustainable Future," it internalized environment, society and governance (referred to as ESG hereafter) as its corporate culture. The ESG Committee has six trans-company groups working under it, namely, "Corporate Governance", "Responsible Finance", "Sustainable Financial Products and Services", "Employee Care", "Environmental Sustainability", and "Community Engagement". ESG performance indicators were incorporated into the annual performance evaluation of subsidiaries to continue our progress in promoting sustainable development.

To respond to the risks climate change poses to the operation of the financial industry, FFHC took stock of and identified the risks and opportunities associated with climate change for the Group's operations based on the "Climate-Related Financial Disclosures Recommendations" published by the Task Force on Climate-Related Financial Disclosures (TCFD), in addition to formulating mitigating measures as well as short-, mid-, and long-term goals. The Group followed up on KPI results, conducted scenario analysis on climate risk cases, quantized the resulting financial impact, and published TCFD reports between 2021 and 2023. The Group further received a Level-5+ audit statement - the highest grade - from the British Standards Institution (BSI), and presented a report pertaining to the results of climate change risk assessment, mitigation measures, and state of implementation to the Group's highest management level - the Financial Holding Board of Directors. The Group has incorporated climate risk management into its business operation flows through controlling and managing related risk indicators. It also incessantly adjusts its business strategies to continue to enhance climate governance.

As a member of the Financial Supervisory Commission's Coalition of Movers and Shakers on Sustainable Finance, FFHC strives to introduce Partnership for Carbon Accounting Financials' (PCAF) financial carbon inventories and SBTi's (Science Based Target initiative) carbon reduction pathways. First Financial Holding and its subsidiaries have completed greenhouse gas inventories of all business locations in Taiwan and abroad, and since 2023 has complied with the Science Based Targets (SBT) for carbon reduction, which seek to control warming to under 1.5°C. Annual reduction targets of 4.2% of emissions during the baseline year (2022) have been set for the Group's Scope 1 and Scope 2 emissions, and it has joined the "Partnership for Carbon Accounting and Financials" (PCAF) and SBTi. Carbon emissions inventories employing the PCAF's methodology have been conducted on the investment financing positions, and short-, mid-, and long-term carbon reduction targets for major investment financing business have been set on the basis of inventory results. The Group submitted its SBT short-term carbon reduction goals, which had been approved by the FFHC Board of Directors, to SBTi for review in late 2023. It also established a decarbonization mechanism for investment/financing operations. Targeting corporate financing relating to coal mining, project financing relating to building coal-fired power plants (excluding those qualified for transition to decarbonization), as well as corporate financing cases where the share of revenues from atypical oil and gas exceeds a certain threshold, the Bank pledged not to undertake any such new cases or approve more funds for existing loans. Related positions are expected to return to zero by 2030. First Commercial Bank also publicly pledged not to invest in "high carbon-producing corporations with no transition plans to decarbonization", "companies where coal operations account for more than 25% of revenue," and "companies where atypical oil and gas operations account for more than 10% of revenue". The existing positions in such companies are expected to be completely eliminated by 2025.

In addition, the Group continues to push forward multiple green financing projects to support industries in their transition to low carbon emissions. As of the end of 2023, approved domestic and foreign green financing projects had reached NT$227.93 billion cumulatively. In particular, the Group has granted loans to a cumulative total of 215 clients for the "Sustainability Linked Loan", in which companies whose ESG performance indicators have improved are prioritized. A cumulative total of NT$346.3 billion has been approved. We also provide funds needed for programs to improve the environmental benefits of pollution control, green transportation, green buildings/green factories, and energy and resource conservation. Moreover, FSITC raised and issued the "First Financial Holding Global Sustainable Impact Investing Multiple Asset Fund", the first ESG fund for impact investing in Taiwan. It also issued financial bonds focusing on sustainable development, and rolled out a time deposit program for sustainable development. The funds are used to help companies develop renewable energy programs such as solar and wind generation installations, as well as credit cases for social housing. In doing so, we hope to guide companies, investors and deposit account customers to invest in clean energy industries and march towards the 2050 net-zero emissions goal. On the other hand, First Financial Management Consulting has successfully raised and managed three green energy funds totaling NT$780 million. Meanwhile, First Venture Capital also invested NT$333 million in the construction of solar power plants with a capacity of approximately 47 MW. Once the power plants are completed, they are expected to reduce 47,000 metric tons of CO2e every year, comparable to the annual carbon absorption by around 121 Da'an Forest Parks. FFHC also led by example by establishing a "Green Building Label Certification Program" team in 2010. As of the end of 2023, we had refurbished 33 existing buildings, which have all received the Green Building Label from the Ministry of the Interior (including Diamond class for 29 buildings, Silver class for one building, Bronze class for one building, and Certified for two buildings). Two newly constructed buildings have obtained the Gold-class Green Building Label. Our London branch office building has also obtained the "PASS" green building rating from the Building Research Establishment in the UK. All of these green buildings contributed to an annual reduction of 2,927 metric tons of CO2e in 2023.

In response to the government's goal of building environment-friendly and low-carbon cities, FFHC had constructed 23 solar-powered branches as of 2023, contributing to an annual reduction of 122.04 metric tons of CO2e. Between 2015 and 2023, we purchased green electricity, carbon credits and renewable energy certificates totaling 8,608,000 kWh. We also set a target of generating and using 220 MWh of renewable energy in 2024, as we continue to increase the share of renewable energy that we use. We installed "green roofs featuring solar power generation, rainwater harvesting and ecological hydroponic function" on our Wanhua, Huashan, and Chang'an branch buildings, which help create zero carbon aquaponic farms that generate solar power, harvest rainwater, and grow fishes and vegetables. Our Wanhua Branch has been certified by the Environmental Protection Administration as an "Environmental Education Facility." The branch has rolled out environmental education courses incorporating core financial competencies, including "energy conservation and carbon reduction with green buildings", "climate change risk management", "green loans and financing review", and "green consumer finance". We held 33 environmental education sessions for enterprises, government agencies, and schools in 2023, with a total of 1,290 people participating. We also promote the renewal and reconstruction of dangerous and old buildings by offering preferential loans aimed at "accelerating the reconstruction of dangerous and old urban buildings". We had completed a cumulative total of 231 urban renewal financing cases as of the end of 2023, and the total approved amount reached NT$180.198 billion. In particular, 133 of these projects have been awarded Silver-class Green Building Label certification or above, and 3,921 households have benefited as a result.

We have responded to the United Nations' sustainable development goals by providing financial services to vulnerable demographic groups and remote areas. FFHC actively promotes inclusive finance and has expanded financing services for domestic small and medium enterprises. As of the end of 2023, outstanding loans to SMEs had reached NT$925.8 billion, and our market share has topped all domestic banks for 14 consecutive years. We continue to support loans for "small and micro enterprises", "Loans for Young Entrepreneurs and Start-ups", "Loans for Micro Entrepreneurs", and "Micro Loans for Female Entrepreneurs", and have undertaken a total of 14,921 such accounts; We also launched the "Micro Enterprise e-Services" online loan application platform, enabling small and micro enterprises to quickly obtain start-up loans and operating capital. 5,981 applications were accepted in total in 2023. To provide care to our aging society, we offered the "e-First Smart Money Management" retirement financial management service. On top of that, the cumulative trust assets of elderly customers and persons with disabilities had reached NT$25.349 billion by 2023. We had provided a cumulative total of 233 "Comfort Loan" reverse mortgage loans up to the end of 2023, with an approximate approved amount totaling NT$1.624 billion.

In terms of financial innovation, we rolled out the "Consumer Carbon Footprint Inquiry" service in 2023. Consumers can inquire about the carbon emissions of their transactions made with their credit cards each month via the iLeo app. We have also developed the "ESG Sustainable Application Map Inquiry Tool", so that the general public can inquire about environmental observations relating to their local areas by inputting their addresses at one go, as well as about areas susceptible to disasters triggered by climate change. In addition, the "iLEO Digital Account" developed in-house by First Commercial Bank is the first financial service that simultaneously provides comprehensive online account initiation to adults, minors and sole proprietors. Users of the iLEO Digital Account had exceeded 1.56 million by the end of 2023, making it the fifth largest digital account in Taiwan. The iLEO app has been downloaded 1.1 million times cumulatively, with an annual growth rate of 46.1%. To improve the service quality of our branches, we have also integrated AI technology to introduce the full-function virtual bank teller "e". As of the end of 2023, this "smart teller service" had been used 1,115,589 times, with a response accuracy rate of 98%. We also completed the addition of multiple languages, including Japanese, Vietnamese, Indonesian and Thai, to our existing ATMs, as we strive to enhance the inclusiveness of our financial services.

FFHC has been actively building a gender-equal and gender-friendly work system and workplace environment. The share of our female employees and the average compensation of female executives have outpaced those of their male counterparts. Furthermore, as part of our efforts to create a workplace environment conducive to mothers' health, we provide maternity (prenatal checkup) leave and paternity (prenatal checkup) leave that exceed the minimum benchmark set by labor laws, in addition to increasing employee childbirth subsidies. With effect from 2023, female employees who undergo intrusive artificial insemination procedures are eligible for two days' paid leave, as we strive to realize our management vision of a "happy workplace". We have been awarded the "OHS SDGs" by the Occupational Safety and Health Administration, Ministry of Labor, in addition to receiving the "Happy Enterprise Gold Award" from the 1111 Job Bank.

FFHC has combined group resources and its employees to actively engage in public welfare events. In 2023, it invested more than NT$110 million to subsidize disadvantaged schoolchildren and groups, fund the cultivation of talented athletes, and support food banks and exhibition/performance platforms for the art and cultural communities. We rolled out diverse inclusive finance products targeting the elderly, youths, women, disadvantaged people and SMEs, and issued various green and charity credit cards, including the World Card, Leezen Co-branded Credit Card, Living Green Card, YiLan Affinity Card, and Taoyuan Affinity Card. A fixed percentage of the amount of transactions made with these credit cards would be donated to benefit environmental conservation and social welfare events, as part of our efforts to encourage our credit card holders to engage in sustainable consumption. We have thereby donated NT$782 million cumulatively. We have amassed many important domestic and foreign ESG awards for our stellar ESG efforts and performance, including continued inclusion as a constituent stock of the world's top 3 ESG indexes - DJSI, FTSE and MSCI. We were also rated as a "top 5% listed company" in the Corporate Governance Evaluation of the Taiwan Stock Exchange Corporation for the ninth consecutive time. We have also received the "Taiwan Top 10 Sustainable Paradigm Company Award" from the Taiwan Corporate Sustainability Awards (TCSA). We also won the top honor as a winner of the Ministry of Environment's fifth "National Enterprise Environmental Protection Award", becoming the only Taiwanese enterprise to have won five straight times. Aside from being ranked in the top 20% of all banks in the "First Sustainable Finance Evaluation" by the Financial Supervisory Commission, First Commercial Bank was also "ranked in the top 25% for fair customer treatment" for two straight years by the Financial Supervisory Commission. First Securities and First Life Insurance were also "ranked in the top 50% for fair customer treatment", as the Group continues to deepen its culture for fair customer treatment and integrity.

Looking ahead to 2024, the Group will continue to enhance its digital developments as well as the interdisciplinary integration of various business units and channels. We will incorporate our core management values into ESG implementations through strengthening the sustainable finance DNA of all of the Group's employees. We seek to stay on top of green business opportunities, realize inclusive finance, guide our supply chains, customers and shareholders towards low-carbon transformation. We will work with stakeholders to plan for a mutually beneficial net-zero ecosphere where we can all thrive together, as we endeavor to improve the long-term value for the "FIRST brand in sustainable finance".