Material Topics

• A list of 22 sustainability issues was compiled through the channels below to provide the scope of material topics identification in the report.

• List sustainability issues that would be of interest to different stakeholders based on the experience of employees from everyday business activities and previous assignments.

• Material topics for leading competitors around the world and international trends in sustainability were examined.

• To maintain the objectivity, integrity, and inclusiveness of material topics, the company also looked back on the material topic matrix in the previous report.

The process of sustainability topic prioritization by materiality is described as follows.

• Based on various ESG issues, we used "the impact of the activities and business relationships of LITEON on the economic, environmental, and social population during the process of providing products or services" as the main evaluation criteria and ranked them accordingly. An impact level of 4.55 or above is considered a material impact.

• We referenced the EU's double materiality evaluation framework and evaluated "financial materiality," i.e., evaluating the impact of environmental, economic, and social issues on the Company's internal financial and accounting reports. Topics with an impact of 4.3 and above are included in the scope of material topics.

• In 2022 , a total of 691 valid results were received in an internal and external questionnaire. The opinions of key stakeholders were studied through external communication meetings with key customers, suppliers and experts as well as internal subcommittee meetings to make the assessment results more representative.

• The degree of influence and impact of individual issues were measured and quantified to create a preliminary material issue matrix.

• To ensure compliance with the GRI and stakeholder inclusiveness principles, and to strengthen the link between material topics of the year and core competencies, results of the preliminary identification of material topics are reviewed by the LITEON CS Committee and nine sub-committees. The committee also raises the degree of materiality for two topics, "Circular economy" and "Financialization of ESG information" based on results of international benchmarking analysis, trends in sustainability, and LITEON's business development strategies. In 2022, material topic of "Talent training and education labor relations and friendly workplace" was deleted and "Innovation development and application" was added.
• A total of 15 sustainability topics were selected from the "Significant Impact" and "Financially Significant" to be the scope of material disclosure in this report. We also identified and responded to the GRI topics corresponding to the material topics in the report.

Corporate governance and operations, Integrity and compliance, Climate change and energy resource management, Product quality and safety, Occupational health and safety, Risk management, Information security and personal information protection, Supply chain management, Customer relations management, Circular economy, Green product design, Human rights,  Talent recruitment and retention, Innovation development and application, Financialization of ESG information.

Corporate image, Raw materials management, Community involvement, Talent training and education, Labor relations and friendly workplace, Waste management, Water management.

In the next report, we will continue to review the material topic matrix and engage stakeholders in further communication to determine if the material topic matrix for the coming year is reasonable or in need of adjustment.