Yuanta Financial Holdings Group Intro 2012 元大金控 - 公關簡介by New York Design 紐約設計顧問

Milestones and History
2011 Merged with Polaris Securities.
2007 Merged with Fuhwa Financial Holdings in a reverse takeover.
2005 Yuanta acquired a majority stake in Fuhwa FHC and initiated structural changes.
2004 Acquired Asia Securities.
2002 Fuhwa Financial Holding Company (Fuhwa FHC) formed on February 4, 2002 through an equity
swap between Fuhwa Securities Finance and Fuhwa Securities.
2000 Merged with Core Pacific Securities.
1995 Became a publicly-listed company on the OTC exchange.
1994 Fuhwa Securities Finance became publicly-listed company.
1992 Yuanta grows through acquisition – M&A with seven local brokers.
1990 Began providing margin financing services to our own clients, the first firm to do so.
1980 Fuhwa Securities Finance founded.
1973 Ma family took over management control of the company.
1961 Yuanta Securities founded.
Fuhwa
Yuanta

Banking – Heartfelt Service and Client Focused
Yuanta Bank was founded in 1992. In 2003, we began to
expand our branch network by acquiring a number of credit
cooperatives. In 2010 we added 18 additional branches by
acquiring Chinfon Commercial Bank. Currently, we are a midsized
bank with 88 branch locations throughout Taiwan and
assets of over NT$ 500 billion. In order to remain competitive,
we actively seek opportunities to continue expanding our
banking operations and services.
In recent years, our management team has implemented new
systems while restructuring business operations by relocating
selected branches, which has served to use company resources
more efficiently. At the end of 2011, total deposits at the bank
were NT$ 443 billion and loans outstanding stood at NT$ 353
billion, an increase of 13% and 22%, respectively, over the
previous year. Cumulative earnings before tax was NT$ 2 billion,
growing 18% from the year prior.
In 2011, loan coverage, loan loss coverage, and NPL ratios were
1.3%, 674%, and 0.19%, respectively. This indicates that the
bank is able to maintain top asset quality within the industry.
At Yuanta Bank, we've adopted a conservative risk management
strategy from an operational standpoint, while also offering
innovative products and services to further diversify our business
and spur development. We exhibit our innovation in a variety of
areas, including depository services, institutional banking, retail
banking and financial trading services. In addition to enhancing
our client development capabilities, we act as an across-theboard
solutions provider for integrating financial services. This
creates synergies, enhancing profits and maximizing benefit to
shareholders.
In regards to client development, the bank's first line of focus is
providing tailor-made products and services to high contribution
clients. Our next priority is to expand the scale of our customer
base by cooperating with other subsidiaries within the Yuanta
umbrella. As an example, we have been able to increase our
deposit base by leveraging securities settlement deposits from
Yuanta Securities' clients in addition to our regular deposits.
This helps to broaden our customer base and boost growth of
our financial services. Furthermore, we make use of group
analytics, product marketing differentiation and developing
niche products, all of which focus on fulfillling client needs.
We're focused on the future and we aspire to be the premier
financial institution in the Greater China region by providing
unmatched financial services while continuing to cultivate the
domestic market.
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Corporate Social Responsibility
At Yuanta, we adopt a holistic approach to the way we run our business. Not only do we strive to deliver maximum
return to shareholders, but we also take seriously our responsibility to benefit society as a whole. We are committed to
operating and growing in such a way that is both environmentally sustainable and that uses the influence we have as a
corporate citizen to reach beyond the sphere of our business. By doing so we are able to positively impact shareholders,
employees, customers, the environment, and society at large.
Yuanta Cultural and Educational Foundation (Yuanta Foundation) was established in 2002 in order to more effectively
carry out our commitment to CSR beyond the sphere of our immediate business. Through the foundation, resources can
be consolidated and used more efficiently to promote arts and cultural programs, educational initiatives, and to help those
in society with special needs. Within the company, our commitment to CSR is carried out through established policies and
guidelines that make environmental sustainability an important part of our corporate culture and philosophy, and
encourage each employee to take personal responsibility.
Corporate Governance
At Yuanta, we believe transparency is necessary for genuine and
effective communication with all stakeholders and we apply this
principle to both our operations and governance structures.
Transparency in governance is reinforced by the company’s
Board of Directors and Audit Committee. A robust risk
management system, internal audit and control structure, and
thorough guidelines and policies ensure that all management
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and employees not only abide by all legal norms but build a
culture that abides by the highest ethical standards.
1. Audit Committee and Remuneration Committee:
The Board is comprised of eleven directors who are wellrespected
and have extensive professional backgrounds in the
financial industry. More than one-third of board members are
independent directors and both the Audit Committee and
Remuneration Committee are solely comprised of those

directors. The Audit Committee’s first priority is to monitor and
implement the internal control system of the company and guide
the company in compliance with all relevant regulations and
ensure financial information is disclosed in a transparent manner.
The Remuneration Committee’s role is to assist the Board in
establishing fair and clear procedures for setting compensation
standards and performance metrics for management, and
periodically review the compensation structure for directors.
This committee also maintains a channel for employees and
affiliated parties to express complaints, suggestions and
feedback that helps directors provide even better oversight.
2. Benefiting shareholders:
After becoming a financial holding company in 2007, Yuanta
FHC revised its dividend policy to emphasize a high payout of
earnings with an emphasis on cash. In fact, in the three years
following we paid out the maximum-allowed 90% of earnings,
all in cash, to shareholders. During the height of the global
financial crisis in 2008, Yuanta also benefited shareholders by
buying back and cancelling 3% of outstanding shares. These
and other timely actions worked to raise earnings per share and
increase return on equity.
3. Rigorous internal control system and risk management
structure:
Yuanta FHC’s audit department and risk management
department report directly to the Board of Directors, helping
the board monitor the entire company’s compliance with legal
policies and internal guidelines. Annual audits are performed
on the entire business and a special audit is performed semiannually
on its financial standing, risk management and legal
compliance. At Yuanta, we understand that sustainability and
profitability are contingent upon a business model that is built
around robust and well-designed risk management control.
4. Transparency in financial and operational information
disclosure:
At Yuanta, we strive to communicate with stakeholders in a way
that is both timely and transparent. For example, our completely
bilingual website provides investors with the latest information
about our corporate strategy, organizational structure, corporate
governance, and a whole range of financial data. We also
provide timely corporate news and provide the monthly earnings
data of Yuanta and its subsidiaries on the fifth day of each
month.
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Employee Care
A countless number of employees have accompanied Yuanta on
its path from a small brokerage firm to where it stands today as
one of Taiwan’s largest financial holding companies, (currently
ranked fifth by market capitalization). Without their contribution
of hard work throughout the years, Yuanta would not be in the
place it is today.
Yuanta understands that employees are its most valuable asset,
and strives to provide an excellent working environment that
attracts and retains outstanding and talented employees. To that
end, we provide employee training, and comprehensive benefits
which include a clear compensation and incentive scheme that
pays for performance and an employee stock ownership plan.
Employees are encouraged not only in their personal growth, but
also to actively participate in the company’s charitable efforts.
For example, in 2010, employees not only donated blood in the
annual blood drive but also used their vacation time to serve as
volunteers in our hepatitis and liver cancer screening program.
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Customer Care
At Yuanta, our success as a financial services institution comes
from the longstanding partnerships we’ve built with our clients.
Carefully listening to them and responding quickly to meet their
financial service needs is our starting point for maintaining our
competitiveness.
Safeguarding customers’ personal data is of paramount
importance and we take all necessary steps to ensure compliance
with national laws through our robust internal procedures, both
for Yuanta FHC and all subsidiaries. Customer data is securely
stored in our system, and any request to access that data is
subject to authorization management procedures with multiple
levels of built-in protection. Furthermore, we provide 24-hour
toll-free customer phone service in addition to an online function
for customer feedback so we can respond quickly to any
concerns.

Environmental protection
We carefully consider how we can operate our business in a way
that is sustainable and limits our impact on the environment. Our
headquarters located on Dun Hua South Road was designed as
an environmentally-friendly building. In addition to our building
design, we actively recycle everything we can, emphasize energy
savings, water conservation and green purchasing, all evidence
that we take our responsibility of being a good corporate citizen
seriously.
Paperless
Since 2009, Yuanta has used an electronic document
management system, effectively saving 285,000 official
documents from being produced in paper format. Also,
employees are encouraged to use email and e-bulletins rather
than paper documents, recycled paper for non-official
documents, and non-disposable cups to save paper.
Office building energy saving measures
The headquarters of both Yuanta FHC and Yuanta Securities
utilize video conference technology for meetings, cutting down
on the need for energy consuming travel. In an effort to save
electricity, the building temperature is set to not fall below 26˚C
in the summer months. The headquarters building has a rain
water collection and recycling system which is used for toilets
and watering plants in and around the building. The building
sewage and wastewater treatment are all in compliance with
environmental regulations requirements. In 2010, the average
monthly water usage per employee was reduced by 25% and
electricity usage by 10% compared to 2009. This translates to
a reduction of 434 kilograms of carbon emissions per person
each year.
Green purchasing
Our priority is to purchase energy-saving products that have
less impact on the environment. All air-conditioners in our
headquarters building use R410A, a refrigerant that does not
contribute to ozone depletion. For lighting fixtures, the
aluminum grid reflectors are computer-designed for better
output and electronic ballasts reduce the strike necessary to
turn lights on, prolonging the life of the lamps. All sinks have
water-saving faucets installed. For its active participation in
the field of green purchasing, Yuanta was honored with the
Green Purchase Field of Excellence Award by the Taipei City
Government on December 15, 2011.
Social care and contribution to the community
Yuanta FHC’s efforts to give back to the community are carried
out through Yuanta Foundation. Yuanta’s three largest
subsidiaries: securities, bank and securities finance, all regularly
contribute funds to the Foundation so it can arrange various
programs and efforts that benefit society.
Yuanta Foundation’s mission can be categorized into three
core components. The first is social welfare and educational
programs. Secondly, it seeks to encourage talent cultivation
through scholarships, and thirdly, promotes arts and cultural
education programs.
Of the more than 130 activities in which Yuanta Foundation
was involved in 2011, over half were focused on social welfare
and educational programs, around 30% on talent cultivation
and less than 20% on arts and cultural programs.
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Social welfare and educational programs
Through its “Wings of Hope, Dreams Come True” program,
Yuanta Foundation hosted 51 different social activities and 20
health promotions to help more than 10,000 children and
families.
Helping people is our goal, but education is the starting point.
We endeavor to help people from minority groups grow and
learn, building their confidence so they can pursue their own
dreams. We believe that education is the tool that gives minority
children a step up to a better life and helps them realize their
dreams.
1. Ministry of Education’s online tutoring program
The Foundation sponsors an online tutoring program that helps
elementary and junior high school students who live in rural
areas. The program has trained 1,500 university students to
assist 1,000 less advantaged children, using the internet as a
means of communication.
2. “Dreams, Taking Off” Program – summer and winter camps
This program arranges summer and winter camps for junior high
school students who live in rural areas. In 2011, twenty students
from Fu Jen Catholic University formed a volunteer team to tutor
75 students from Jie Shou Junior High School during their
summer and winter vacations. Ten of those students passed the
rigorous high school entrance exam in 2011.
3. “Dreams, Taking Off” program – tutoring program for city kids
We have also offered Saturday tutorial programs for 20 children
who come from less advantaged situations, providing nutritious
lunches and life training, not only helping them, but their
families as well.
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4. “Dreams, Taking Off” program – care services and learning
scholarships
We provided NT$10,000 scholarships per semester for 15
students. The recipients also received ongoing guidance from
Fu Jen Catholic University students, encouraging them to remain
in school and graduate.
5. Down syndrome work center
Down syndrome affects about one in every 800 babies, and
there are around 30,000 individuals in Taiwan with Down
syndrome. Yuanta Foundation helped the Taiwan Down
Syndrome Foundation set up a work center in Xin Zhuang and
also purchased moon cakes made by those employed at the
work center.
6. Support for Chung Yi Children’s Home
Yuanta Foundation funded the tuition cost for 34 children who
live at the Chung Yi Children’s Home, after learning that they
were unable to raise the necessary funds through other means.
We also assisted them by donating other items to the home,
including electrical fans and bicycles.
7. Liver disease prevention event
More publicity about liver disease and screenings result in those
affected receiving earlier treatment. Better publicity also teaches
people important steps to preventing liver disease. In 2011,
Yuanta sponsored three events with free hepatitis and liver
cancer screenings in Hsinchu County, Changhua County, and at
the Sun Yat-Sen Memorial Hall in Taipei. 150 Yuanta employees
volunteered for these charitable events, serving 12,000.