2

CEO's Commitment 3

About this report 4

1. Company Profile 5

1.1 Introduction 5

1.2 Financial Overview 6

Financial Performance 6

Shareholder Structure 7

Financial Assistance Received From Government 2015 7

Employee Welfare Expense 7

Major Product (Service) Sales Volume 7

The expense of public welfare 2015 7

1.3 Products and Marketing 8

Digital Creativity 8

Green Marketing 8

Brand Marketing 8

Awards and Honors 9

1.4 Corporate Governance 9

Corporate Social Responsibility Policy 9

Corporate Social Responsibility Management 9

Corporate Social Responsibility Goals 9

Governance Structure 10

Board Responsibilities 10

Supervisor Responsibilities 10

Remuneration Committee Responsibilities 10

2015 Executive Performance of the Board of

Directors and Supervisors 10

Compensation structure of senior management 11

Information transparency 11

The business honestly 11

Transparent communication 12

Handling of reports procedure 12

Accountability 12

1.5 Organizational Structure 12

1.6 System Certification 13

1.7 Risk Management 13

1.8 Relations with Trade Associations 15

1.9 Sustainable Development 15

Communications with Stakeholders 15

Stakeholder Identification 16

Stakeholder Communication and Response 16

Materiality Topic Classification 16

Materiality Topic Survey 16

Materiality Topic Concern 17

Materiality Topic Identification 17

20

2.1 Green Policy 20

MSI's short-, mid- and long-term green policy planning 20

2.2 Green Product 20

The Short/Middle/Long term goals of green product 20

The Short/Middle/Long term goals of product recycle 21

The Short/Middle/Long term goals of product

energy saving 21

ISO 14006 Product Eco-design 21

The assessment of environmental impacts 21

Product energy saving 22

Green Honors 22

Product Responsibility 22

Packaging Materials 23

Waste Electrical and Electronic Equipment

Management 23

2.3 Green Management 24

Green Product Management Structure 24

Green Management Performance 24

2.4 Environmental Performance 25

Environmental Testing 25

Water 26

Power Consumption 26

Non-renewable energy consumption 26

Waste Management 27

Waste Reduction 27

Environmental Expenditure 27

ISO 14072 Organizational Life Cycle Assessments 27

2.5 Water Footprint 28

2.6 Greenhouse Gas 28

3. Employees 29

3.1 Recruitment 29

Professional Recruitment 29

Stable human resource 29

Employment 30

3.2 Employee rights 31

Human Rights 31

Wage Management 31

Employee Associations and Group Negotiations 31

Child Labor Policy 32

Labor agreement 32

Minimum Notice Periods of Operational Changes 32

3.3 Employee Development 32

Newcomer general education 32

MSI University 32

Differential Talent Management 33

MSI Daily News 33

Employees Training 33

Performance Management and Career Development 34

3.4 Employee Welfare 35

LOHAS at MSI 35

Welfare facilities 37

3.5 Healthy Workplace 37

Employee Health Planning 37

Employee Assistance Program (EAP) 39

Friendly Breastfeeding Room 39

3.6 Safety and Health 39

Risk Assessment and Prevention 39

Education and training 39

Fire Exercise 40

Communication and participation 40

Introduction to High-Risk Operations 40

Work-related injuries and absences 40

4. Supplier 41

4.1 Supplier Policy 41

4.2 Supplier Management 41

Green Product Management Platform 42

Industry supply chain 42

Conflict Minerals 43

EICC Code of Conducts 43

Supplier Social Responsibility Management 43

4.3 Contractor Management 45

5. Customers 45

5.1 Service Management System 46

General customer’s satisfaction 46

Personal Information Management 46

5.2 Post-Delivery Service 46

Customer Satisfaction 46

Quality services 47

6. Public Welfare 47

6.1 Public Welfare Policy 47

6.2 Public Welfare Service 48

Social Reward-School Lunch 48

Education Assistance-Love from MSI, Benefits

for Students 48

Education Assistance-Dream Fulfillment Fund 49

Caring for the disadvantaged - Family Day for

Special Ed Students 50

Caring for the disadvantaged - Mentally-challenged

cheerleaders in North and East regions 50

Caring for the disadvantaged - Art Cup Mentally

Challenged Sports Day 50

Corporate Volunteer - Cycling Around the Island

with Love, Riding for the Elderly at Mennonite 50

Corporate Volunteer - Gardening Club Charity Sale 50

6.2 Donation with Love 51

Emergency Relief - Ba-Li Dust Explosion Relief 51

Computer donations - Pilot Café 51

Computer donation - Community Development

Plan from Social Welfare Department, New Taipei City

Government 51

Computer Donations - TAO Foundation 52

Fraternity Grows in MSI: Blood Donation 52

Annex 1. Corrigenda 53

2015 Corporate Social Responsibility Report Corrigenda 53

Annex 2. GRI G4 Content Index 53

General Standard Disclosures

(The following information has been disclosure and report assurance) 53

Specific Standard Disclosures

(The following information has been disclosure and report assurance) 54

Annex 3. Independent Verification Statement 56

3

CEO's CommitmentInnovation with Style Besides continuously researching and applying innovative technologies to realize our plans of cultivating a human-friendly living environment through technological products, MSI also strives to fulfill our responsibilities and missions for societal well-being, environmental protection, employee caring, promises for our shareholders, and building a trustworthy brand for our clients.

We lead the trends via high-performing products with innovative designs. Our overall visual and applications of products are aesthetically-pleasing. In terms of organizational management, our reforms and innovations demonstrate our proactive and pragmatic style; moreover, we emphasize and participate in environmental protection and social welfare issues to implement our commitment toward caring and giving back to the society. We are dedicated to improving our work environment and employee benefits to show our care of the employees. Furthermore, when faced with challenges from the external environment, we embrace these challenges willingly, showing our determination to pursue honor and our responsibility.

Sustainable Development & Balanced ProfitabilityMSI will grasp market opportunities with our core skills while controlling various financial risks with solid and delicate management skills to meet the challenges posed by the rapidly changing and intensely competitive IT industry. We offer quality products and excellent after-sale services to satisfy our clients. Internally, we will proactively invest in information technology and workforce; externally, we will grasp the changes in clients, products, technologies, laws and regulations, society and the environment. In order to maintain continued growth in overall revenue, we will continuously inspect our strategies and operational risks and adjust our resources accordingly in pursuit of growing profits.

In terms of our management targets, in the short-term, we will strive to become the leader in mid- to high-end products as well as the most trusted leading brand in gaming, in addition to building long-term steady relations with clients who have potential and are financially sound. In the mid-term, we will establish a comprehensive application service chain and enhance our service quality, while proactively enhancing the market share of various products and our overall profitability. In the long-term, we will undertake diversified management through innovations in information and telecommunications. Besides specializing in boards, laptop PCs, servers and barebone computers, we will also gradually pursue for the growth in various products such as All-in-One PCs, industrial PCs, and automobile electronics, in order to become the leading firm in profitability in various industries.

In terms of implementations of corporate social responsibility (CSR) in practice, in the short-term we will continue to devote resources toward education and caring for the underprivileged groups, emergency relief, community assistance, and medical relief. Our mid-term goal is to focus on trends regarding global environment and human rights issues; in the long-term, we will offer comprehensive solutions to energy conservation and reducing carbon emissions through self-inspection and our design and innovation capabilities, in order to largely facilitate various industries in terms of lowering carbon emissions and constructing a convenient lifestyle with low levels of pollution.

4

About this reportReport ScopeThe reporting period of the MSI Corporate Social Responsibility Report 2016 is from 1 January 2015 to 31 December 2015.The boundary of this report covers Micro-Star INT'L Co., Ltd. ,MSI Computer (Shenzhen) Co., Ltd. , and MSI Electronics (Kunshan) Co., Ltd.. The analysis on the numbers of employee will be primarily based on what was disclosed by Micro-Star INT'L Co., Ltd. In order for stakeholders to better understand the overall operational conditions of the Company, the scope of disclosure includes our performances in perspectives including corporate governance, communications with stakeholders, environment, and social welfare, so that stakeholders may provide more support and suggestions.

Report StructureThe structure of the contents found in this Report was written in compliance with the core options and structure of the G4 version of Global Reporting Initiative (GRI), and the planning, strategies, and management performance during the reporting period have been disclosed in reference to the key points of Organization for Economic Co-operation and Development (OECD), UN Global Compact (UNGC), and ISO 26000. As a reference, Appendix 2 of the Report offers a table of GRI G4 core options.

Compiling PrinciplesThe following section offers an explanation on the ways in which MSI has undertaken information compilation and writing of the report through relevant organizations and procedures:

(1) CSR Reporting Team: members include Human Resource Division, Internal Audit Office, Public Service Division, Global Customer Service Division, Customer Service Team、Department of Marketing, Legal Affairs Office, Accounting Department, Finance Department, Medical Room, Corporate Sustainability Office, Occupational Safety Office. Subsequently, the Sustainable Development Office is in charge of coordination, information compilation, internal communication, and editing of the contents.

(2) Report Auditing: after the Sustainable Development Office has compiled a first draft, the content will be passed to the CSR Reporting Team for confirmation and revisions, after which the draft will be reviewed by the departmental supervisors of each member of the CSR Team. Subsequent revisions will be made in accordance with suggestions from the review process. The revised draft will be submitted for the Chairman for approval. After which the draft will be finalized and published.

Report PublicationSince publishing our first CSR Report in 2008, to this date, MSI has continued to publish CSR Report on an annual basis. The last Report was published in May 2015, and all of the past Reports are publicly available for viewing for all stakeholders around the world on the MSI Sustainability website with both English and Traditional Chinese versions available

Report assuranceThe Report is in compliance with the core options in the GRI G4 version, and has attained assurance from third-party independent institution as part of Moderate Assurance Level in AA1000AS-2008 Type 1. The assurance certification has been included in Appendix 3 of the Report.

NoteThe scope of this Report remains unchanged from the last Report; however, to correspond with different topics, we have added in contents for disclosure under general standards and specific standards to this report. Hence, parts of the scope for performance is different, and will be explained in further details in this report.

Contact InformationWe sincerely hope that the publication of this report will give external parties further insights to our hard work, and if you should have any comments to the report, we wholeheartedly welcome you to express your valuable ideas to us so that we could use them as objectives for further effort and improvements.

Contact Information as below:Micro-Star INT'L Co., LTD.Address: No.69, Lide St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)Email: csr@msi.com

VisionsInnovation of Smart TechnologyInnovation has been the most powerful competitiveness in our company. In light of continuously focusing on the development of smart technology, we maximize flexibility while seeking competitive models and optimal channels.

Fulfillment of Corporate Social ResponsibilityIn addition to the commitment as a good enterprise for customers, employees, shareholders, and society, we focus on the R&D of energy saving technology and concern about the one and only earth in collaboration with partners.

Win-Win GrowthWe are proud to be the best partner of customers, aiming at sustainable operation to achieve win-win situation.

5

AMERICA Europe, Middle East and Africa Asia and PacificUSACanadaMexicoBrazilNicaraguaPeruArgentine ChileVenezuela

GermanyNetherlandsFrance Russia PolandUnited Kingdom SpainItalyTurkeyCzech Republic

South & North AfricaCISIsrael EgyptGCCIranLevantSerbiaUkraineBalkan

China TaiwanJapanMalaysiaKoreaPhilippines ThailandVietnam

AustraliaIndonesiaMyanmarIndiaHong KongSingapore BangladeshNepal

1. Company Profile

1.1 IntroductionEstabl ished on 4 August 1986, MSI is headquartered in Zhonghe District, New Taipei City, Taiwan , one of the world's largest information technology manufacturers.MSI started from the motherboard and graphics card industries and extended into consumer and commercial electronics including notebooks, All-in-One PCs, servers, workstations, industrial PCs, household appliances, car infotainment products, barebone systems, multimedia, communication devices, and others. Apart from the production bases in Shenzhen (MSI Computer) and Kunshan (MSI Electronics) in China, we have subsidiaries and service centers in different parts of the world, including Europe, Asia, America, and Oceania, to provide worldwide customers with the timeliest services.

Micro-Star INT'L Co., Ltd. (Headquarters) / New Taipei City, TaiwanDate of establishment: August, 1986Functions: Management, R&D, transaction, and marketing

MSI Global Sales and Services

MSI Computer (Shenzhen) Co., Ltd. / Shenzhen, Guangdong, ChinaDate of establishment: April, 2000Functions: Mainboard and graphics cards, manufacture, system assembly, and others

MSI Electronics (Kunshan) Co., Ltd./ Kunshan, Jiangsu, ChinaDate of establishment: December, 2001Functions: PC production, R&D, and others

6

0

2,000,000

4,000,000

2011 2012 2013 2014 2015

稅後淨利(新台幣仟元)

0

10,000,000

20,000,000

30,000,000

2011 2012 2013 2014 2015

非流動負債總額-分配前

(新台幣仟元)

0

200,000

400,000

600,000

800,000

2011 2012 2013 2014 2015

所得稅(新台幣仟元)

0

1

2

3

4

5

2011 2012 2013 2014 2015

每股盈餘(新台幣元)

0.00

5.00

10.00

2011 2012 2013 2014 2015

資產報酬率(%)

0

200,000

400,000

2011 2012 2013 2014 2015

退休金費用(新台幣仟元)

Financial Performance

1.2 Financial OverviewThe overall economic condition had undergone drastic changes in 2015, and factors such as the interest hike in the US, economic downturn in China, an 11-year historic low in crude oil prices, and continued quantitative easing (QE) in Europe had all affected the preferences and willingness of purchasing consumer goods, which led to the decrease of demand in emerging markets. Industry-wise, since cell phones and tablets have increased the market competition with PCs and in turn, use in PCs had decreased and their life span had increased; moreover, factors such as Windows 10 are unable to increase market demand in new PCs; consequently, the demand in global PC market had slowed and was unable to grow. Nevertheless, the market for high-performance products was relatively unaffected and had grown in spite of these negative conditions. The Company is focused on high-end products such as gaming products, which meet the needs of high-end consumers and is able to grow along with the market. In particular, our gaming laptop is now ranked among the top 3 worldwide, demonstrating exceptional managerial performances and stable profitability. Looking forward to 2016, we anticipate that positive factors such as the stable growth in markets such as the US and oil prices gradually increasing will cause the overall market to grow and to continue to bring forth demand for high-end products. To seek for continuous momentum and competitive advantage and to reach our goal of maximizing operational performance, the Company will continue to enhance our product R&D skills and to move even closer to consumer needs, as well as to continuously adjust our operational strategy to correspond with market changes.

The following information is in accordance with Financial Reporting International Financial Reporting Standards (IFRS) summary and verified by the accountant. The data sources for the financial statements each year, details of the information available through the following channels:Market Observation Post System http://mops.twse.com.tw (Company Code: 2377)MSI Investor Information: https://www.msi.com/about/investor/

Operating Income (NTD1,000) Operating costs (NTD1,000)

Profit for the year (NTD1,000)

Income Tax Expense (%)

Return on assets (%)

Basic earnings per share (NTD)

Return on equity (%)

Total non-current liabilities-Before Dist.

(NTD1,000)

7

Shareholder Structure Employee Welfare Expense

Major Product (Service) Sales Volume

The expense of public welfare 2015

Financial Assistance Received From Government 2015

0.00

20.00

40.00

60.00

80.00

100.00

2011 2012 2013 2014 2015

2011年至2015年股東結構佔比 (%)*

政府機構** 金融機構 其他法人 外資 個人* The based statistics is according to 2016.04.18 to stop the transfer date of the shareholders' register.

** Government organization share in ownership structure: 0%

Unit: NTD

0.00 5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00

2011 2012 2013 2014 2015

2011年至2015年員工福利金支出比例 (%)

慶生會支出 年節禮金 婚喪喜慶補助 急難救助費 休閒活動費

旅遊活動費 生育補助 聚餐費 雜費

0

5,000,000

10,000,000

2011 2012 2013 2014 2015

薪資費用(新台幣仟元)

0

200,000

400,000

2011 2012 2013 2014 2015

退休金費用(新台幣仟元)

15,000

20,000

25,000

2011 2012 2013 2014 2015

電腦零組件及系統(仟片)

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

2015

2015年公益活動費用

社區投資(新台幣元) 急難救助(新台幣元)

Manufacturer / Location

MSI Taiwan MSI Shenzhen MSI Kunshan New Taipei City, Taiwan Guangdong , China Jiangsu , China Tax relief and tax credits

0 19,174,554 8,345,689

0 20,452,987 2,253,279 0 6,849,060 0 0 0 0

0 0 0 0 0 0

0 0 0

The MSI Taiwan is applicable to apply R&D expenditures tax credits for the Statute for Industrial Innovation (SII).

The MSI Shenzhen and MSI Kunshan in accordance with the provisions of the Enterprise Income Tax Law People's Republic of China have the tax incentives.

Shareholder Structure 2011-2015 (%)*The Employee benefits expenditure proportion (%) 2011-2015

Salary and Wages (NTD1,000)

Computer spare parts and system (Unit : One thousand)

Pension costs (NTD1,000)

The expense of public welfare 2015

Government organization**

Birthday party expenditure

Leisure activities allowance

Holidays bonus

Travel allowance

Emergency assistanceWeddings and funerals subsidy

Maternity benifit Dinner party allowance

Community Investment (NTD)

Miscellaneous expenses

Emergency assistance (NTD)

Financial Institutions Other Juristic Persons Foreign Investors Individual

SubsidiesInvestment grants, research and development grants, and other

relevant types of grantsAwards

Royalty holidays

Financial assistance from Export Credit Agencies (ECAs)

Financial incentivesOther financial benefits received or receivable from any government for

any operation

8

1.3 Products and MarketingMSI was founded on the manufacturing and selling of motherboards and display cards, and since then we have extended our core capabilities into making gaming series, consumer electronics, industrial PC and AI. With our continuous improvements in products, technology and service along with our persistence in quality enhancement, we have attracted immense popularity and achieved significant market share. In addition, we continue to strive toward diversified operations and lean management, besides maintaining steady profits, we also continually cultivate new client base and markets to stabilize company profits and increase our operational performance.

Green MarketingMSI offers green, eco-friendly marketing design and sees minimizing paper and lowering environmental impacts as factors for important considerations. Currently, our motherboards and laptops have already adopted QR Code and Youtube-based instructional user manual videos to replace paper-based manuals; moreover, we have adjusted the paper size (from 954 X 340 mm down to 132.5 x 127.5 mm), changed the paper type (from gloss coated art paper to simili paper), and decreased the quantity of ink usage (from color to black) in the manuals and user guides for laptop PCs, as well as adopting environmentally-friendly soybean-based ink in the printing for all product lines, in order to lower the utilization of papers and printing ink. This shows our contribution toward lowering carbon emissions and decreasing impacts on the environment, as well as our effort toward building an eco-friendly brand image.

Brand MarketingTo enhance the effectiveness of our marketing efforts, MSI has collaborated with large-scale exhibitions (US CES, CeBit, Taiwan Computex), public service institutions and the media and allied with various institutions and firms from the industry, government, and academia. We host MOA and MSI MGA (formerly named Beat It) on an annual basis and sponsor top-tier professional gamer teams to facilitate the promotions of gaming consoles. Additionally, we have also utilized social media and established the fan page of MSI Fan Club and forums to increase our brand exposure (please see link below for more details) and information exchange. In 2015, we have also partnered with the famed American game-maker Blizzard Entertainment Co., Ltd. to launch a gaming laptop in collaboration with one of their games. Not only did we fully exert our marketing costs, we have also created mutual win with our partner firms.Please see the link below for MSI's social media: https://tw.msi.com/page/social-mediaPlease see the link below for MSI's officially sponsored professional gaming teams: https://gaming.msi.com/tw/about/gaming-teamsDigital Creativity

In designing marketing events, MSI focuses on both quality service and eco-friendly strategies. Our operational models have massively adopted social media , which is not only low-cost and very effective, but also decreases the amount of paper and other materials consumed in traditional marketing events. Moreover, social media events allow intimate and real-time interactions with consumers and help us understand consumer needs so that we may offer the most suitable service. Due to the popularization of smart mobile devices, MSI has further extended the reach of our product services and established multiple smartphone applications that customer could download from Google Play, App Store, or using QC Code. Besides the latest updates from MSI, these apps also enable customers to easily pick out products that best suit their demands, among a vast array of product displays. Moreover, we use social media interactions to elicit customer experiences in real-time. This is a brand new marketing tool that breaks away from our traditional focus on hardware R&D, and emphasizes user experience in serving the public.

Short & Medium term Development Plan :*Brand Marketing: The main direction of the development in the sale and marketing at the present stage focuses on the Ordnance Bench Mark (OBM) for pursuing the overall steady growth ofthe products such as mainboards and graphics cards.*Original Equipment Manufacturer(OEM): MSI has continuously had close cooperation with international corporations to increase the overall profit by reducing costs with economy of scale. *R&D, Manufacture and Service: From product R8LD to manufacture in mass production, we offer customers high quality products and after-sales services.

Long-term Development Plan :We are engaged in the lean management on our core products and continue to reinforce operation diversification. In addition to the products, we are specialized in such as mainboards, graphics cards, notebooks, servers and barebones. We will involve in the development of products such as AIOs, industrial PC and automobile electronics, aiming to gradually become a profit-leading company.

Gaming series products All-in-One PC Motherboard Graphics Card

Notebooks/Laptops IPC (Industrial Personal Computer) Server A.I. (Artificial Intelligence) Product

9

Awards and Honors

2015 MSI won the fourth place of Laptop Magazine of Best Laptop Brands.

The GT72 Dominator Pro, GS30 Shadow ; AG240 4K Edition ; X99 GAMING 9 ACK 4 products award「CES Innovations 2015 Design and Engineering Awards Honoree」

The X99A GAMING 9 ACK Streaming & GAMING Motherboard win the golden award of Best Choice Award.The X99A XPOWER AC Overclocking Motherboard win the computer & system award of Best Choice Award.

MSI won the Taiwan Excellence Award for 17 consecutive years.2015 award product including GT72 Dominator Pro, X99S GAMING 9 ACK, Z97 GAMING 9 ACK, GTX 980 GAMING 4G, R9 270X GAMING 2G, AG220 2PE, AG270 2PE and AG240 2PE.

Taiwan Global Brands Value Survey collaborated with the world's leading brand consultancy Interbrand. They introduced an important index combining quantitative financial analysis with qualitative dimensional analysis for measuring the positions of Taiwan brands in international market.MSI was shortlisted to top 35 in 2015.

1.4 Corporate GovernanceCorporate Social Responsibility PolicyMicro-Star was established with the business concept of "Excellent Product, Superior Quality, Perfect Service, and Customer Satisfaction" in the fields of motherboard, multimedia, server, and computer peripherals products as well as consumption electronic products. Our business goal is not only to create customers' confidence and bring in high profits from innovating, developing, designing, manufacturing and selling the products, but also to work hard on the labor, ethics, environmental protection and occupational safety and health activities to demonstrate our social responsibilities.

Corporate Social Responsibility ManagementTo implement corporate social responsibility initiatives, the MSI shall follow the principles below:

1. Exercise corporate governance.2. Foster a sustainable environment.3. Preserve public welfare.4. Enhance disclosure of corporate social responsibility information.

Corporate Social Responsibility GoalsShort term Plan

Continue to implement MSI's environmental, safety, and health and CSR policies in

practice

Continue to manage and supervise the CSR needs

from our suppliers

Continue to devote resources in charitable event.

Medium term Plan

Improve the performance of feasible CSR indicators

Understand trends in social issues and ensure that they do not affect the benefits of

stakeholders

Evaluate feasibility of the organization level for decreases of greenhouse

emissions

Long term PlanUtilize our R&D, design and

innovative capabilities to assist improvements from

various industries pertaining to carbon emissions

Provide non-toxic products and services

Develop the economy, caring for the society and the environment, and to construct

operational conditions conducive to sustainability

Age / Gender Distribution

10

Governance Structure(1) According to Article 14 in our Articles of Association: the company will appoint 7 to 11

individuals to form the board of directors, and 2 to 3 individuals to serve as supervisors. These individuals will be elected by legally competent persons in the shareholder's meeting for a term of 3 years. They can be reelected to serve in the same positions. In the aforementioned number of personnel in the board, 2 to 3 members are independent directors, and the election of directors and supervisors will be through nomination. During the election of directors, independent and non-independent directors are elected in the same time, but votes and nominees will be counted separately. Those who have won more votes represent that they have won more voting rights, and will serve as non-Independent directors and directors respectively. The qualification of directors (including independent directors) and supervisors is regulated by the company Act, the Securities and Exchange Act and other related regulations.

(2) This is the 10th Board of Directors (terms of appointment: June 12, 2015 to June 11, 2018).

(3) Distribution of age and sex of Directors and Supervisors is listed below:

Board ResponsibilitiesThe company has set up two seats for independent directors and established the "Corporate Governance Principles," "Guidelines on Board Meetings," "Scope of Responsibility of Independent Directors," "Integrity and Management Code, "Corporate Governance Code of Conduct" according to the "Principles of Corporate Governance for Listed Companies." In addition, we have also established the "Corporate Social Responsibility Code" in accordance with the "Principles of Corporate Social Responsibility for Listed Companies," in order to enhance the operational effectiveness, decision-making skills, and moral standards of the board of directors. We have incorporated the routine evaluation of the independence of CPA into the responsibilities of the board, and we arrange directors, supervisors, and senior managers to attend seminars or educational training which include topics in corporate governance from time to time; the hours and content of these training courses comply with the requirement for training and advanced studies in directors and supervisors for listed companies. These studies have been disclosed on the MOPS (http://mops.twse.com.tw) (company code: 2377) pursuant to regulations. In addition, we have insured our directors and supervisors for appropriate liability insurance.

Male Female Male Female Male Female under 30 years old 0 0 0 0 0 0 30-50 years old 0 0 0 0 0 0 over 50 years old 7 0 2 0 2 1

The board members The independent directors members

The independent supervisor members

Remuneration Committee ResponsibilitiesThe committee has established the "Organizational Standards of the Remuneration Committee," and the functionality of the committee is:

(1) Establish and routinely review the annual and long-term performance evaluation and policies, system, standards, and structures on compensations of the Directors, Supervisors, and managers.

(2) Routinely evaluate the effectiveness of the directors, supervisors, and managers in achieving their objectives, and establish individual compensation packages.

2015 Executive Performance of the Board of Directors and Supervisors(1) The board has resolved to host the 2015 shareholder's Meeting.

(2) The board has reached a resolution on dividend sharing.

(3) The term of board members (including Supervisors) had expired and re-elections were held.

(4) The board has reached a resolution on abolishing the non-competitive nature of directors.

(5) The board had settled on the benchmark date of coupon date.

(6) The board has reached a resolution on abolishing the non-competitive nature of managers.

(7) The board has appointed the remuneration committee members.

Supervisor Responsibilities(1) We have established the Supervisors Office in order to offer a channel of

communication between Supervisors, MSI employees, and shareholders. If stakeholders have found the Company to be engaged in violation of ethical management or illegal activities, they can file or report the matter to the Supervisors and/or our Internal Audit Office. If the matter is found to be true, punitive measures will be taken according to our internal regulations and relevant legal regulations.

(2) Review audit report submitted by the Internal Audit Supervisor, and to provide feedback.

(3) The Internal Audit Supervisor should be present during Board meetings, submit audit report and to exchange ideas and opinions with the Supervisors.

(4) Accountants should regularly discuss deficiencies in internal control and internal audit with the Internal Audit Supervisor, as well as to exchange opinions pertaining to deficiencies in corporate governance, internal control and internal audit with the Supervisor.

11

Information transparency1. MSI's website has disclosed information pertaining to corporate governance, finances, sustainability, and products, and has designated specific personnel to be responsible for the collection and disclosure of Company information. We periodically issue financial reports, Annual Report, and CSR Report, and we have disclosed information relevant to MSI through units such as our website, contact phone number, spokesperson, and Sustainable Development Office to our stakeholders. Information relevant to corporate governance can be found through the following channels:

0.00%

20.00%

40.00%

2011 2012 2013 2014 2015

董監事與高階經理人薪酬

(總額佔稅後純益比例)

董監事酬金

總經理/副總經理酬金

Stakeholders' Rights Contacts for Investor Relations

Contact Information for the Company's SupervisorsContact Information for the Company's Spokesperson

Members of the Board and their experiences and the Operational Conditions of the Board

Grievance channels for stakeholdersRules and Regulations pertaining to corporate governanceImplementations of Code of Conduct and measures takenAttendance of Board meetings and conditions of studies

undertaken by Board membersStructure of Corporate Organization

The Company's CSR ReportActivities pertaining to corporate governance that do not concern

the aforementioned stakeholders' rights

Channels of information disclosure

Market Observation Post System : http://mops.twse.com.tw (Company Code : 2377)MSI Investor Information :

https://www.msi.com/about/investor/MSI CSR :

https://www.msi.com/html/popup/csr/index.html

Compensation of directors and supervisors and the top management (total amount accounting for net-profit margin)

President / Vice President remuneration

Compensation of directors and supervisors

Compensation structure of senior managementArticle 19 of the Articles of Association, while as the compensations of the president and executive vice president are set in accordance with the Company's Compensation Management Rules, Employee Performance Practice Rules, and the Employee Profit Sharing and Shareholding Rules, and will be based on objective achievement, management performance, and contribution margin.

2. MSI was selected as part of the CSR Index Stock by the TWSE in 2015:

(1) Taiwan Top 100 Highest Paying Index(2) Taiwan Top 100 Corporate Governance Index(3) Taiwan Top 99 Employment Index

Company Rules

Management requirements

Grievance channels

Risk assessment

Establishes the incentive management methods, reporting and handling system in the Internal Audit Office, items to be cautious for during investigations in the Internal Audit Office, and management scope during the investigations for cases being reported, in addition to setting up appropriate anti-corruption standards during operational activities.Employees are required to sign Declaration of Ethical Standards, and new employees (should finish training within 3 months of joining the company and the completion rate of trained employees has been 100%) and suppliers need to undergo educational training. Besides internal control, new suppliers are also required to sign a Declaration of Integrity, and we advocate for anti-corruption to our partners on an annual basis.MSI Taiwan complaints email : audit@msi.comMSI Shenzhen complaints email : jubao@msi.comMSI Kunshan complaints email : lianzheng@msi.comInternal Audit Office at our various sites will be in charge of handling reports concerning breaches on the Company Standards and inappropriate activities harmful to the Company's profits. In 2015, we had 0 cases on corruption.The Internal Audit Office will inspect each operational planning and processes according to the "Standards on Establishing and Managing the Internal Control System in Listed Companies" from the FSC. The fundamental criteria in risk assessment are to set up various objectives and to correlate with various departments of different levels in the Company, while considering the appropriateness of these Company objectives. The results of the assessment could help the Company and to design, rectify, and carry out necessary control procedures in real-time.

In particular, the Taiwan Top 99 Employment Index utilizes the newest index algorithm method invented by Research Affiliates (RA), and selects the stocks and decides on the weights of these stocks through "numbers of employees." This is the first methodology of its kind throughout the world, and could lead funds to passively invest in companies with more employees, thus companies would have more incentive to hire more employees and fulfill their CSR duties.

The business honestlyConflict of Interest Avoidance: we strictly abide by the principles of avoiding conflicts of interest and anti-corruption through the "Corporate Governance Principles," "Guidelines on Board Meetings," "Scope of Responsibility of Independent Directors," "Integral Management Code," "Corporate Governance Code of Conduct," and "Incentive Management Methods."

Political contributions: MSI maintains a neutral stance in politics, as we do not undertake any political contributions or lobbying. Our expenses for political donations or lobbying in 2015 was NT$0.

Anti-corruption: MSI forbids any form of unethical behavior during our operational activities, including requiring for inappropriate profits or accepting entertainment from stakeholders. We strictly prevent bribery through establishing an Anti-Corruption Policy, and the implementations of Incentive Management Method as well as the reporting management system, in addition to requiring suppliers to sign a Declaration of Integrity:

12

END

Report source:Internal units receiving

External stakeholder

Found during routine

business procedures

Report taken in

Association with other cases

Traceable reports or complaints

Approval from Audit Supervisor

Report back to the whistleblower or report unit

Review and approval from Audit Supervisor in HQ or Supervisor

Audit Supervisor (including Audit Supervisors on remote locations) should either appoint an individual, or assign auditing personnel to investigate the case.

Research and analysis of reporting data

Reports that are taken in cases should be processed through the following procedures:1. Documentation and filing2. Numbering the case3. Provide an abstract of summary4. Document the basic information of the whistleblower and individuals being reported against

Make necessary remarks of reocrds

Disciplinary investigation work

Are it illegal and a willful negligence of duty?

Transparent communicationMSI values the opinions of both internal and external stakeholders, and we have constructed various communication channels to ensure that needs and suggestions of all kinds are taken in and handled appropriately.

Should any stakeholder found matters pertaining to breaches, ethics, organizational integrity and/or environmental issues, they can all communicate, file a complaint, or report to the Company via phone, fax, and/or email. In 2015, MSI did not receive any grievance cases from stakeholders.

AccountabilityThe MSI operating in honestly to exercise corporate social responsibility commitment, the commitment we have reached performance in year of 2015:

Handling of reports procedure

Stockholder communication and grievance

channels

Anti-competitive behavior

Legal compliance

Product responsibilities

Environmental impacts

MSI employees can report it through the staff EIP website. http://eip.msigp.com/Pages/Default.aspxMSI Internal Audit Office email: audit@msi.comAddress No.69 , Lide St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)

Department

MSI's business activities have not involved any inappropriate business activities such as anti-competitive behavior, antitrust laws, or to corner the market.MSI's business activities have not been fined with huge indemnities or undergone economic sanctions as a result of breaches in legal regulations.Products produced by MSI did not breach any legal regulations on impacts on health and safety in various countries during their selling cycle.There was a breach on product labeling in MSI's laptop PC (model name: MS-16GD), and after the product label was rectified accordingly, it is in compliance with the legal regulation and no fines were generated as a result of this incident. MSI's products had not undergone any breaches on labeling of product and/or service information besides the aforementioned incident.MSI does not produce any prohibited or controversial product, and does not have any products banned from sales in any specific markets.MSI has not breached any laws concerning advertisement, promotion, or sponsorship to help promote and market its products.MSI has not had any complaints pertaining to breaches on client's privacy and/or losing client information.MSI has not been subjected to huge fines as a result of breaching the law due to breaches on products, services offered, or product usage.MSI's business activities have not been subjected to punitive measures or fines, or non-economic sanctions as a result of impacts to the environment.

1.5 Organizational Structure1. Internal Audit Office: To investigate and assess the soundness, suitability, adequacy,

status of implementation, and operating performance of departmental internal controls.2. President: To manage the corporate operation and development affairs, to set

development and operational goals, and to supervise implement process.3. President Office: To offer the general manager suggestions on policy decisions based

on affair statistics with regard to organizational operations and development, including labor safety and health, legal affairs, intellectual property management, IT system development, corporate sustainable development plan, the use and maintenance of hardware and system software etc.

4. Finance & Accounting Department (1) Accounting Division: Accounting and billing affairs, voucher preparation, receipt review,

and financial reports' preparation and analysis. (2) Financial Division: Fund dispatch, risk management, re-investment management, and

registrar and transfer operation.5. Administration Department: General affairs, public works, and asset management.6. Human Resource Department: Personnel administration, employee benefits, health

promotion, physical examination, training and education, and human resource development.

7. Each Products Group: Product development、 sales and other business.8. R&D Division: Design, development and quality control of products; process

enhancement; and technology improvement.9. Sales & Marketing Division: PO management, market cultivation, business information

collection, and customer credit investigation.10. Production Division: Product and schedule production.

MSI Legal Affairs Officeemail : 080419864@msi.comTel.: +886-2-3234-5599Fax: +886-2-3234-5488

13

1.6 System CertificationWe have passed the certifications of ISO 9001, ISO 14001, OHSAS 18001, IECQ/QC 080000, ISO/TS 16949, TL9000, and ISO/IEC 17025. We also implement GHG inventory each year in accordance with ISO14064-1. By upholding the spirit and principles of P(Plan), D(Do), C(Check), A(Action) in the ISO system, we plan and access our everyday operations in quality, environmental protection, and OHS and implement them in real operations according to the assessment outcomes. We check every phase of the work after an operation and propose cor rec t i ve and p reven t i ve measures for unachieved targets or defects. Related activities are implemented to improve the quality, reduce the operational risk, save the energy, enhance resource utilization and prevent accidents. Thereby, a good, comfortable, and safe work environment is maintained and the impact on the environment is reduced as well.

ISO 9001ISO 14001

ISO 14064-1OHSAS 18001

QC 080000ISO/TS 16949

TL9000ISO/IEC 17025

EICC

VVVVVVV

VVVVVVVVV

VVVVVV

*

11. Quality Assurance Division: Quality assurance, quality control, customer complaints, and post-delivery service.

12. Materials Division: Procurement, control and management of raw materials, and production scheduling and management.

Organizational Chart

Wage and Compensation Committee

Financial and Accounting Department

Administration Department

Human Resources Department

Shareholder’s Meeting

Board of Directors

Chairperson

President

Supervisors

Internal Audit Office

President Office

Each Products Group

Desktop Platform

Product Business Unit

Headquarters

Enterprise PlatformProduct Business U

nitH

eadquarters

Consum

er ElectronicsProduct Business U

nitH

eadquarters

LaptopBusiness

Headquarters

Industrial Com

puterProduct Business U

nitH

eadquarters

R&D

Division

Sales &M

arketing Division

Production Division

Quality Assurance

Division

Materials D

ivision

1.7 Risk ManagementMSI has always maintained a pragmatic outlook in business management, and understands the importance of risk control and assessment. To ensure the sustainable operations of the Company and to lower potential impacts and losses to the Company from risks of uncertainties, we have established the "Management Procedures on Continuous Operations" and strives to minimize various potential risks and to strengthen the capability to cope with key risks on sustainability. Hence, in order to cope with internal and external environmental changes, MSI pays particular attention to the following risks in order to better seize business opportunities. Moreover, we also routinely report the results of implementations and future plans to the Board on an annual basis.

The Coping Strategies

Strengthen partnerships with upstream suppliers in the hopes that we can develop products and go into mass production faster, thus enhancing our market competitiveness.Develop products with high added-value and to strengthen our brand value in order to create reasonable profits for the Company. In addition, to maintain suf f ic ient order s and to increase profitability for the Company, we will also accept OEM/ODM orders from large-scale international firms.MSI's product distribution region is spread out throughout Europe, Asia, and America. Moreover, in order to diversify the distribution region to lower market risks, we will also continue to cultivate emerging markets.MSI will continue to lower our credit risk through safety measures such as insuring our Accounts Receivables.Since 2008, MSI has introduced the Continuous Operations Plan to our internal system, establ ished cris is m a n a g e m e n t t e a m a n d i n t e r n a l reporting mechanism. We undertake thematic continuous operations practice by simulating different situations based on current events and issues that pose significant risks to the Company from time to time, in order to establish crisis-handling procedures and internal and external communication channels. Each

Risk classification

Operational risk

Uncertainty risk

Product development risk

Competitor risk

Market risk

Credit risk

Crisis management

Impacts on the Company's Profitability

Product development is limited by the upstream

supply chain that will impact development time.

Price competition

Sales Market excessive concentration that is easy

affect profit by market change.

Accounts receivable

Business continuity

14

of the simulation would be documented and reviewed af ter wards in order to minimize the possible impacts to business operations during emergencies, and to minimize risks such as operating acc identa l interrupt ion, sh ipping delays, and staff casualties. We have documented all of the simulation results on our internal website EIP so that we may utilize this data conveniently during subsequent emergencies.1. We pay attention to trends in the foreign exchange market to enhance our effectiveness in utilizing corporate funds.2. We have proactively raised the ratio of our payments in foreign currency, so that the natural hedging from foreign currencies (asset) against debts have risen significantly. In addition, we also pay close attention to market changes such as interest rate hikes in the US, quantitative easing (QE) in Europe, the economic changes in Russia and Greece, in addition to maintaining a cautious outlook to cash flow in countries in Asia and Central America.We e x te n d c re d i t l i n e s ba s e d o n transaction amounts and upon ensuring factors such as capital, operational conditions, profitability, credit, assurance, and collateral from the client.MSI undertakes credit issuance and management to clients based on "Credit Management Procedures in Internal Control of Sales and Payable Cycles”.MSI continues to maintain a fair financial structure, debt ratio, and liquidity ratio and quick ratio as a part of solvency management in order to lower our financial risk, to increase our short-term solvency and liquidity over our current assets.1. We hold operational performance evaluation meetings in each business division on a monthly basis, and in each quarter, we would reevaluate the market and undertake product adjustments according to our strategies.

2. We hold global senior management meeting every 6 months in order to examine our macro-level operational strategies. The senior management would be able to form coping and corresponding strategies based on the Company's comprehensive asset and operational conditions at the time, so that our resources could be effectively allocated to cope with different market conditions.We periodically evaluate developments in our core industry and use information system to facilitate in our understanding of i n f o r m a t i o n i n c l u d i n g g l o b a l operations, shipping, inventory, and working capital in real-time. Moreover, we have also establ ished warning indicators as reference points for materials management.Besides conducting routine simulation practices for high risk topics, MSI has also designated specific units to control, report, and handle emerging external issues in real time. These units will keep track of developments of current events, actively adjust control and response methods in order to lower personnel risks and to offer necessary assistance in real-time. Below is a list of key external events relevant to our internal operations in 2015:QE policy in Europe, MERS outbreak in Korea, dust explosion at Formosan Fun Coast in New Taipei City, the Greek debt crisis bailout referendum, Typhoon Soudelor, and interest hike in the US.We regularly conduct greenhouse gas checkup every year, and we also set up target objectives of decreases in greenhouse gases emissions. The objective in 2015 was 1%. (Base year: 2013)We continue to identify places of heavy energy consumption, evaluate feasible improvements or to retire existing factory sites or equipment, in order to ensure that MSI is in compliance with

Financial risk

Production Risk

Social informatics

Climate change risk

risis management

Customer credit

Business Credit

Recession risk

Recession risk

Unpredictable risk

Greenhouse Gas management

Carbon emission management

Exchange gain

Credit Line

Debt repayment ability

Market and Capacity arrangement

Market and Capacity arrangement

Material inventory

Discontinued Operation

GHG emission and Carbon right impact

15

current and future needs in carbon rights in terms of carbon emission management.We have designated specific units and personnel to plan and promote tasks pertaining to workplace safety and health.We carry out food safety and hygiene management and have set up a Food Safety Committee to supervise food catering procedures, and to ensure that our caterers are in compliance with legal regulations in order to become qualified food vendors.In order to ensure that our employees and personnel from contractor firms are operating safely, we routinely host safety and health personnel educational training and emergency responses training, including fire drill, for our partner firms. This is done to prevent accidents and environmental pollution, a n d t o t h i s m e a n s w e h a v e a l s o established Contractor Safety Health and Environmental Management Standards.In order to provide a safe and healthy work environment for our employees, w e h a v e e s t a b l i s h e d Wo r k p l a c e Environmental Monitoring Plan, and we implement workplace environmental monitoring and management in practice.We have set up comprehensive fire protection system according to the relevant regulations, and we ensure that all fire equipment are usable through procedures such as routine maintenance and fire extinguisher fixes and checkup. Moreover, we have designated fire p rote ct i on te a m s for the fa ctor y personnel (including onsite vendors) and undertake fire drill practices either on a routine basis or from time to time.We implement inspection and cable maintenance procedures in practice to ensure that energy supplies are steady and stable.

New employees need to undergo over 6 hours of safety and health educational training, and to gain an awareness in operational hazards as well as the Company's safety and health management policies.

ESH (Environment,

Safety and Health) riskk

Labor safety and health management

Food sanitation and safety management

Contractors employees

management

Operational environment safety

Fire safety management

Facilities risk identification

Health and safety education and

training

ESH(Environment, Safety and Health) problems caused

the company's property or business loss

1.8 Relations with Trade AssociationsHere list only those trade associations who participate in the name of MSI. MSI employees would take appropriate positions in these associations according to different employment types to interact with technology and promote industry development.

AssociationTaiwan Automation lntelligence and

Robotics Association North Electronic Human Resource

Association (NeHR) Taipei Computer Association

The Institute of Internal Auditors, ROC (Taiwan)

Corporate Green Competitiveness Alliance

Shenzhen Honesty League AssociationTaiwan Businessmen Association of

ShihyanShenzhen Hi-Tech Industry AssociationKunshan Human Resources AssociationKunshan Taiwan Investment Business

AssociationKunshan Economic and Technical

Development Zone Association of Work Safety and Environmental protection

Manufacturer

Micro-Star INT'L Co., Ltd.

MSI Computer (Shenzhen) Co., Ltd

MSI Electronics (Kunshan) Co., Ltd.

Title

Director

Member

1.9 Sustainable DevelopmentCommunications with StakeholdersWe disclose information via the MOPS, our company website, annual reports, CSR Report, and Green Product Management System and more, so that stakeholders may comprehensively, immediately, clearly, and precisely interact with us and to provide feedback based on these information. Consequently, MSI could be even more precise in our continuous improvements.

16

Stakeholder Communication and ResponseStakeholder

Groups

Investors/ Shareholders

Customers/ Consumers

Suppliers/ Contractors

Employee

Corresponding Section of CSR

1.2 Financial Performance 1.4 Corporate Governance 1.7 Risk Management

2.2 Green Product2.3 Green Management5.1 Service Management System 5.2 Post-Delivery Service

1.2 Financial Performance1.4 Corporate Governance1.7 Risk Management3.3 Employee Development3.4 Employee Welfare3.5 Healthy Workplace3.6 Labor Health and Safety

Concerned Issues

1. Financial performance 2. Corporate governance 3. Risk management

1. Post-delivery service 2. Regulatory compliance 3. Green product

1. Financial performance 2. Supplier management 3. Corporate governance

1. Employee welfare 2. Employee development 3. Safety and health

Method and Frequency of Communication

l. Shareholder's meeting: At least annually.

2. Investor conference: From time to time. 3. Financial report: Quarterly. 4. Website: From time to time. 5. Press release: From time to time. 6. CSR Report: Annually.1. Website: irregularly. 2. Toll-free hotline 0800. 3. Online service: Initiated by customers. 4. Showrooms and service centers:

Initiated by customers. 5. Internal dedicated contact window: By

instant messaging or by phone. 6. Customer satisfaction survey:

Irregularly.1. Financial report: Quarterly. 2. Bulletin board: From time to time. 3. Website: Irregularly. 4. Supplier conference: When needed.

1. Labor-management meetings: Quarterly.

2. MSI University (MSU): Irregularly. 3. Employee hotline: Initiated by

employees. 4. Suggestion box: Initiated by

employees. 5. Employee satisfaction survey: Once

two years.

Stakeholder IdentificationMSI Corporate Sustainability Office members reference AA1000SES standard and identified stakeholder's issues of concern, levels of concern and significance on MSI. Besides, six major stakeholders have been listed: investors / shareholders, customers / consumers, suppliers / contractors, employees, government agencies, and the media.

1.4 Corporate Governance3.1 Employment 3.2 Employee Rights

1.2 Financial Performance 3.1 Employment3.4 Employee Welfare3.6 Labor Health and Safety

1. Regulatory compliance 2. Significant industrial

safety or labor-management incidents

3. Labor-management relations

1. Corporate operating status and profit

2. Significant industrial safety or labor-management incidents

3. Employee welfare

1. Provisions of government agencies with relevant reports just in time according to legal and regulatory requirements at the agency's requests: As needed.

2. CSR Report: Annually.

1. Press conference: Irregularly. 2. Press release: Irregularly.

Government Agencies

Media

Materiality Topic ClassificationMSI's Sustainable Development Office has incorporated 91 economic, environmental and social specific indicators in GRI G4 in risk assessment of stakeholders during classification of topics' significance. Subsequently, results of this assessment was used in the overall analysis of responsibility, influence, response, and significance, and the analysis of which shows that a total of 62 indicators are topics that are both valued by stakeholders and can be managed and controlled by MSI. After integrating these indicators, we have reached 22 topics under the three perspectives of economic, environmental, and social, that we should communicate with stakeholders.

Corporate Governance、Financial Performance and Risk Management、Social and Public WelfareGreenhouse Gas Policy、Energy Management、Water、Effluents and Waste、Compliance、Overall、Materials、TransportLabor/Management Relations、Talent Recruitment、Privacy Management、Employee Welfare、Child Labor、Corporate Ethics、Grievance Mechanisms、Occupational Health and Safety、Product Responsibility、Supplier Social Responsibility、Labor Practices、Human Rights

Economic

Environmental

Social

Materiality Topic SurveyMSI has collected the topics that stakeholders focus on through the Sustainable MSI website and both online and paper-based questionnaires. In 2015, we have counted a total of 207 questionnaires, and the information of which is compiled and integrated by the Sustainable Development Office. Each responsible unit would exchange ideas with stakeholders through diverse channels, understand the levels of stakeholders' focus on particular topics, and to prioritize or incorporate these topics into organizational goals and to respond accordingly. Questionnaire results indicated that the following are topics (ranked from high to low) that stakeholders focus on:

17

Materiality Topic Survey TopicGreenhouse Gas ManagementLabor/Management RelationsEmployees and RecruitmentSocial WelfareEconomic Performance and Risk ManagementPrivacy ManagementEmployee WelfareChild LaborCorporate EthicsCorporate GovernanceEnergy management and consumptionCorporate Operations Grievance MechanismsWater and Waste ManagementOccupational Health and SafetyProduct ResponsibilityEnvironmental ComplianceSupplier Social Responsibility ManagementEnvironmental ManagementLabor PracticesMaterials ManagementTransport ImpactHuman Rights Management

Number123456789

10111213141516171819202122

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Materiality Topic ConcernThe significance of topics of interest was decided by MSI's Sustainable Development Office through the classification guidelines of GRI Index, and the impact levels to the above-mentioned stakeholders are evaluated for materiality via the four elements of impacts, including "responsibility, influence, responsiveness and importance" in order to assess the levels of impact the topics may pose on MSI and the degree to which our stakeholders may focus on them. The results of which is used to draw a matrix diagram of significance in order to learn important topics to the Company from economic, environmental, and social perspectives.

From the matrix diagram, we have learned that the important topics from an economic perspective are social welfare, economic performance, and risk management; from an environmental perspective, we have greenhouse gas management, energy management and consumption, water resource and waste material management, compliance to environmental laws and regulations; from a social standpoint, we have employment relations, HR recruitment and retention, privacy management, employee benefits, child labor policy, and corporate ethics. Cumulatively there are 12 important topics of interest. The other 10 topics of interest are not significant in this aspect but through internal communications, the Sustainable Development Office has also decided to undertake information disclosure pertaining to those topics in order to satisfy the interests for those topics.

Economic Number Topic1 Social and Public Welfare2 Financial Performance and Risk Management3 Corporate Governance

Environmental Number Topic 1 Greenhouse Gas Policy 2 Energy Management 3 Water, Effluents and Waste 4 Compliance 5 Overall 6 Materials 7 Transport

Social Number Topic 1 Labor/Management Relations 2 Talent Recruitment 3 Privacy Management 4 Employee Welfare 5 Child Labor 6 Corporate Ethics 7 Grievance Mechanisms 8 Occupational Health and Safety 9 Product Responsibility 10 Supplier Social Responsibility 11 Labor Practices 12 Human Rights

Materiality Topic IdentificationMSI inspects the levels of internal and external impacts that each material topic poses to the organization, and has established the scope of information disclosure to respond to stakeholders' interest according to factors including GRI-G4 indicators, characteristics of its industry, government requirements, industry rule of thumb, and client needs.

● Materiality

18

19

MSI's short-, mid- and long-term green policy planning

Short term goals

Medium term goals

Long term goals

Energy Saving

System products compliance with EU ErP ECO-design assessment

System products power consumption ≦ 1.00W in

power off mode.(Wake on LAN function disable)

The lowest power state of system products <0.50 W

The external power supply compliance with efficiency level V & VI

Ease of Recycling

The packaging materials compliance with EU PPW directive recycle rate.

Color boxes printed with eco-friendly soy ink can decrease the use of

hazardous substances and reduce the disposal and reprocessing work.

Package can be disassembled either manually or with general

tools. Recyclable materials are used on packing. Do not use permanent

adhesive agents to combine different materials (e.g. PS) or use

them on packaging materials.Recyclable or reusable packaging materials are indicated with such

material indications for easy identification on packaging materials

to facilitate EOL recycling and disposal.

20

2. Environmental2.1 Green PolicyAt MSI, a dedicated department was established to identify international legal requirements and customer requirements on environmental protection to cope with the increasingly stricter laws and regulations on the environmental protection of electronics products, to meet the need of the worldwide customers, provide consumers with environmental-friendly products and services, and realize green design, green resource, and green technology. The department would predict and assess corporate risks to satisfy external demands promptly. Besides, observing international eco regulations and addressing the needs of the worldwide customers, it dynamically updates substances with potential environmental hazards in the List of Controlled Hazardous Substances for Green Product for continuous monitoring, control, and trace before determining if it is necessary to change their status into banned or restricted substances.

Eco-design has been considered right at product R&D and design phases. All products adopt eco-friendly packing materials complying with the international eco regulations. In fact, all packaging materials of our products are eco-friendly so as to ensure full compliance with such international environmental protection protocols as RoHS, WEEE, and ErP. At MSI, the development of eco-friendly products with high performance is our mission and ultimate goal. By teaming up with suppliers, right from material procurement, we hope all products comply with 3R principles — reduce, recycle, and reuse and the following four aims:

1.「Low Hazard」2.「Extended Product Life」3.「Energy Saving」4.「Ease of Recycling」

2.2 Green ProductMSI commits itself to comply products with the following four major aims: "Low Hazard", "Extended Product Life", "Energy Saving", and "Ease of Recycling". We build the Green Product Management (GPM) platform and request the partners in the supply chain to follow related rules. With it, hazard substance management and control are able to be conducted on suppliers. Moreover, concern substances would be identified and controlled corresponding to different risk levels In order to manufacture products with non-hazard substances throughout the product life cycle, We proceed to make improvement on product design from material and texture simplification, the assessment of recycle ratio to green materials application.

The Short/Middle/Long term goals of green product Comply with legal requirements for the restriction of hazardous substancesUsing modular designs in product development Comply with energy conservation laws in each countryComply with legal requirements for waste treatment Focus on the development of Full Material Declaration (FMD), and to assess the appropriate time to conduct into management systemStrengthen our product warranty policyEnhance energy-conservation effectiveness in productsDecrease utilization rate of composite materials and non-recyclable materials in products Fulfill our CSR duties; proactively assess the control or restricted/banned time to the substances of very high concern that are yet to be regulated by law.Enhance product maintainability Utilize renewable energy as one of the options for power supply in products Evaluate the feasibility of adopting reused parts and components in products

Low HazardUsing of environmentally

friendly materials with international

environmental regulations.

Compliance with the EU RoHS-EN

50581 assessment requirements.

The effects on the environment and waste disposal produced by mercury backlight in

panels can be reduced without using CCFL

backlight.

The packaging materials compliance with EU

PPW directive chemical requirements.

Extended Product Life

Products modular design

Products providing optional to buy

extended warranty.

Using high-stability materials

Products enhance maintainability

Short term goals

Compliance with international regulations and customer

requirements

Maintenance MSI internal management principles

Green supply chain management

Medium term goals

Assess the feasibility of utilizing recyclable and

biodegradable materials

Enhance utilization of recycled products through eco-design

in productsEvaluate the feasibility of

using halogen-free materials in products

Long term goalsProactively assess control

or restricted/banned time to the substances of very high concern that are yet to be

regulated by law.Realize non-toxic matters in overall life cycle in practice

Carry out FMD(Full Material Disclosure) of the product

ISO 14006 Product Eco-designMSI has fully established ISO 14006 product eco-design activities in 2013. Risk assessment for different environmental impact categories and severe levels would be conducted in every phase of product life cycle with quantitative and qualitative standards. Besides, we have received the declaration of compliance of ISO 14006 for All-in-One PC since September, 2013. We devoted to the mitigation of environmental impacts by product life cycle and the integration of environmental considerations and product design and development.

ISO 14006 Compliance Statement

21

The Short/Middle/Long term goals of product recycle The assessment of environmental impacts

The Short/Middle/Long term goals of product energy saving

Long term goals

Assessment the possibility of reuse parts

Conduct the use of recycled materials while complying with

product safety standardEvaluate the impacts and

influences on the environment throughout each stage of the

product life cycle

Medium term goalsReduced use of materials and resources in product design

stage

Increase using recycled materials

Assessment use environmentally friendly

materials. e.g. biodegradable plastics

Short term goalsFactor in decreased utilization rate of composite materials in products into considerationEnsure that products meet

requirements for waste treatment laws

Decrease treatment procedures of the waste at the

end of product life cycle

Long term goalsProducts use the renewable energy , such as solar cells,

fuel cells, etc.The product achieved free energy consumption in off

mode.

Medium term goalsDesign and utilize energy-

consuming components with better conversion efficiency rates

Evaluate efficiency and feasibility of using reusable

renewable energyProducts using the higher efficiency power supplies

Short term goalsAssess the power usage/energy

efficiency of the products working in different modesEnsure the conversion

efficiency of the power supply in different modes

To meet the energy requirements of the applicable

items of EU ErP

Year 2013 2014 2015 AP-1622 AE-222 AG240 2QE

Model

Item

Functionality

Materials Efficiency

Durability

Energy Efficiency

Material Composition

Clean Production

Packaging

Recycle

Transport

Environmental Impacts

Resource utilization

Resource utilization

Resource utilization

Energy using

Resource utilization

Hazard substances

Hazard substances

Hazard substances

Greenhouse gases

MSI implementing measures

* Green new product development

operation procedure* Green component approval operation

procedure * Standard for

Environmentally Friendly Products

* Product eco-design work instruction book

Coping Strategies

Consider the opportunities, modularization, automatic control and optimization in multifunction

products.Reduce material usage, use

materials or recycling materials with low environmental impacts.Maximize lifespan of products

and improve their maintainability, reusability and upgradability

through product design.Take account of energy

consumption during product life cycle and review the possibilities

of reduction.Reduce material usage, use

materials or recycling materials and assessment the possibility of

reuse parts.Take clean production

technologies to avoid hazardous consumables and indirect

materials.Avoid excessive packaging and

reduce ink usage. Raise use efficiency of packaging materials

through package design and material choices and prevent using environment unfriendly materials at the same time.

For waste disposal and reuse, create designs for easier

disassembly, reduce material kinds and simplify materials such as not to use composite materials

for material labels.Take transport distance of

production logistics into account and consider product's bulk and

weight as well.

22

Green HonorsBased on the requirements of international regulations, customer requests and eco-labels, we identify related environmental aspects and impacts according to the standard process to discover significant influences as priorities for improvement. With technology and cost feasibility, we establish rigorous requirements for design management and implement them on product life cycle by considering resource conservation, recycling and reuse, energy saving, pollution prevention and other environmental impacts. All these make our products comply and tally with environmental standards in related nations or areas. Under such standards, MSI has won many first places in the industry since 2010:* Established the first integrated Computer-Product Category Rules (PCR) in the world.* The first All-in-One computer in the world certified by Environmental Product Declaration (EPD).* Established the first integrated Computer-Carbon Footprint-Product Category Rules (CF-

PCR) in Taiwan. * The first All-in-One computer in Taiwan awarded the Carbon Footprint Label from the

Environmental Protection Administration of Taiwan. * The first All-in-One computer in Taiwan awarded Taiwan energy label certifications.* The first All-in-One computer in Taiwan awarded the statement subject to the Declaration

of Compliance to ISO 14006 Eco-design Directive. * The first All-in-One computer awarded the EU Flower. * The first All-in-One computer to award the Czech eco-label.

Related product certification information, please refer to the MSI official website: https://tw.msi.com/html/popup/csr_tw/evmtprtt_greenprd.html

Product ResponsibilityTo ensure that user's environmental, health and safety needs are met, MSI has established internal procedures and electronic review flow. The scope of which includes all of MSI's production lines, and label of contents all comply with environmental, safety, and health marking requirements from various countries to ensure that health and safety needs of consumers throughout the world are met. Please see the chart below for details:

Product Categories

Notebook Computer

Desktop Computer

All in One Computer

Model

MS-1759MS-16H4MS-16GPMS-B084MS-AA87MS-AAA7MS-AE67

Category Name

I3D20I2I1I3D2

TEC Calculation** (ETEC*)

36.5641.634.692.34111.3877.31166.79

TEC_Max Calculation** (ETEC_Max)

61.6976.4536.71126.4156.71139.08312.08

ETEC saving (%)

40.7445.595.7526.9528.9344.4146.56 Impact

category

Safety

Impact category

Health

AssessmentItemBSMICCCCE

FCCKC

PSEEACHDMIUSB

AssessmentItem

RoHS

REACHWaste

batteriesPPW

Area

TaiwanChina

EUUnited States

South KoreaJapanRussiaGlobal

Area

EUJapan

South KoreaTaiwanChina

EUEU

TaiwanEU

Assessment content

EMC,EMI,RF

Hardware

connector safety

Assessment content

Environmental hazardous substance

management

Product energy savingWe analyze and understand the energy consumption of products during usage through ecological designs. Energy consumption is the primary source of carbon footprint; hence, improving energy efficiency through currently feasible technologies have become an important consideration for MSI during product design. MSI has incorporated EU's ErP and Energy Star's requirements on energy consumption and power supply into the product design phase, and besides lowering end-user's energy consumption; we can also effectively decrease the product's carbon footprint through selecting highly energy-efficient materials and components. Below are details of our effectiveness in product energy-conservation in 2015:

(1) MSI's systems and products are in 100% compliance with EU ErP requirements on energy consumption.

(2) External power supply is in compliance with Efficiency Level V, while internal power supply is at least in accordance with 80Plus Bronze Medal.

(3) Below is a list of energy consumption efficiency of MSI products accredited with Energy Star certification, including laptop PC, desktop mainframe PC and all-in-one PC.

(Please visit Energy Star's website for certification for a list of MSI's other certified products at https://www.energystar.gov)

* Typical Energy Consumption (ETEC): means the electricity consumed by a product over specified periods of time across defined power modes and states.

** TEC Calculation and TEC_Max Calculation equation please reference Energy Star Computer V6.1.

23

Impact category

Environmental protection

Assessment ItemWEEEPPW

Packaging Label

Waste batteries label

AreaEUEUEU

TaiwanJapan

United StatesChina

EUTaiwan

Assessment

contentThe waste disposal

and recycle rate after product using

Electronic Process Audits Management

NPI(New Product Introduction , NPI) - Product design electronic flow control

systemGPM(Green Product Management, GPM)-

Component electronic flow control system

Global Flow-MSI Packaging electronic flow control

system

Management Documents

• EMC & Safety & RFI Design & Verification procedures

• Green new product development operation procedure

• New Product Design procedures

• Packaging approval operation procedure

• New Product Introduction

Management Performance

• There were no infractions in product regulations and no events concerning unclear product information for MSI in 2015.

• There were no infractions in product health-safety regulations and voluntary guidelines for MSI in 2015.

Safety

Environmental

Environmental protection

[Product safety, environmental protection, environmental labeling examples]

Packaging MaterialsAt MSI, we treat packing materials the same way as that of green product. Besides building management criteria for hazardous substances on packing materials, we implement material control, labeling requirements, and hazardous material inspection right at the very beginning of packaging design to ensure that every package is harmless to the environment and human body under systematic management.MSI's Packaging:* Use chlorine-free bleach during manufacture of such paper products as publicity materials and user manuals.* Printing inks on packing materials are low-toxic, eco-friendly soy ink.* PVC is forbidden on plastic packing materials.* Recyclable or reusable packaging materials are indicated with such material indications.* Paper packaging materials made by more than 90% recycled paper materials.* Packaging can be disassembled either manually or with general tools.* Packaging materials do not use permanent adhesive agents to combine different materials (e.g. PS) or use them on packaging materials.* Use the specific color paper to reduce the amount of printing ink usage.* Using natural degradation materials and 100% recyclable materials.

Waste Electrical and Electronic Equipment Management(1) EU zone: entered into recycling system or undertaken waste product recycling plans

according to EU's Waste Electrical and Electronic Equipment (WEEE) Directive and legal requirements in various EU nations. Products sold in EU zones should be entered into local recycling systems, and products need to be labeled with WEEE recycle bin to clearly ensure that we are in full compliance with WEEE Directive's regulations.

(2) Taiwan: recycling process of waste IT products is primarily handled by the Environmental Protection Administration (EPA) in Taiwan. The Company pays fees pertaining to recycle processing according to regulations for imported products, and these fees will be used toward recycling, issuing subsidies, audit approval for quantities processed, management of recycling firms, and administration duties by the EPA.

(3) Other zones: the Company undertakes relevant procedures and registers at qualified recycling systems according to local governmental requirements at different regions.

24

MSI Product

Notebook Computer

Notebook Computer

Notebook Computer

All in One Computer

Motherboard

Motherboard

Motherboard

Graphics Card

Graphics Card

Graphics Card

Desktop Computer

Barebone-Desktop

Computer

Barebone-Industrial

Computer

Reuse rate(%)*

0.00 0.00 0.00 0.00

0.00

0.00

0.00

0.00 0.00 0.00 0.00 0.00

0.00

Total Recycling

(%)

99.34 99.54 98.54 97.66

100.00

100.00

100.00

100.00 100.00 100.00 96.37 97.96

92.63

Paper materials recycling rate (%)43.12 36.78 23.74 12.86

4.37

4.38

5.23

21.50 20.31 11.89 8.15 13.78

11.83

Other materials recycling rate (%)56.22 62.76 74.80 84.80

95.63

95.62

94.77

78.50 79.69 88.11 88.22 84.18

80.80

Total Recovery rate (%)

0.66 0.46 1.46 2.34

0.00

0.00

0.00

0.00 0.00 0.00 3.29 1.38

0.18

Landfill rate (%)**

0.00 0.00 0.00 0.00

0.00

0.00

0.00

0.00 0.00 0.00 0.20 0.39

7.19

Model Name

MS-13F1

MS-16H6

MS-1792

MS-AE67

B150M

Pro-VHL

H110M-S02

Z170A

GAMING PRO

CARBON

GT 710

R7 250

R9 380

MS-6618

MS-6676

MS-6681

* Since chips cannot be utilized with different computers generation, key technologies are held by major international industry players, and the recycling of other electronic components pose factors such as significant costs, yield, and pollution from reprocessing procedures. Therefore, the parts for computer products cannot be reused.

** Landfill components are comprised of rubber, no economic reprocessing value, and/or other composite materials that are difficult to recycle.

2.3 Green ManagementGreen Product Management Structure

Green Management PerformanceWe strive toward sustainable operations and utilize information system to manage and to identify risks in our supply chain. The management performance of our Green Product Management (GPM) platform in 2015 is as follows:(1) No product had violated against environmental laws, thus we were not subjected to

punishment, fines, ban on sales or recall. Nor did we receive any customer complaints in this perspective.

(2) No product label had violated against the law or environmental regulation.(3) No limitations on toxic matters that violate against international environmental regulations

were made in packaging materials.

All products produced by MSI are in compliance with EU's Waste Electrical and Electronic Equipment (WEEE) Directive's requirements for labels and recycling registration. Moreover, we undertake evaluation of reuse, recycling, recovery, and landfill of product waste during R&D procedures. In addition to understanding the current conditions for product recycling, this can also serve as an evidence for ecological design technology (technical documentation) for EU's ErP directive. The following is a brief explanation of some of MSI's product recycling ratio:

25

2.4 Environmental PerformanceWe promise to reduce pollutant emissions, energy and resource consumption, and occupational health and safety (OHS) risks with the continuous improvement of process, work environment, and equipment while ensuring all business activities comply with eco-regulations and related requirements under the management and periodic monitoring of dedicated units. MSI has not been subjected to huge fines or undergone economic sanctions as a result of breaches as a result of breaches in environmental regulations.The following describes the environmental performance of the MSI in 2015.

Environmental Testing* The following test method and content, according to the specification limit requirements of the local authorities.● Test results meet the requirements━ Not detected / Not applicable

Taiwan-New Taipei CityAmbient

●

●

━

●

━

━

━

━

━

━

━

━

━

━

China-ShenzhenFacilities

━

●

━

●

━

━

●

●

━

━

━

━

━

━

Ambient●

━

●

━

━

━

━

━

●

●

●

Level 1

━

━

China-Kunshan

Facilities━

━

●

━

━

━

━

━

━

━

━

━

●

●

Particulate matterLead and lead

compoundsTin and tin compounds

IPABenzeneTolueneXylenesNMHC

Industrial dustsSO2NOx

Ringelmann blackness degree

AlcoholsTotal dust

Country

Location

Test Content

(4) We added in material prohibition/limitation requirements on "textile, leathers, toys, accessories, and other types of products".

(5) We finished 16 cases of identification of legal regulations pertaining to toxic substances.(6) Added in 2 and rectified 5 toxic substances

Manufacturer

Country

Location

Manufacturer

Country

Location

Generator RoomWorking Room

Ambient

BODCOD

Ammonia Nitrogen

Suspended Solids

PhosphateTotal

phosphorusEscherichia

coli

Test Content

TestContent

MSI KunshanChina

KunshanAmbient and

Facilities━●●

MSI ShenzhenChina

ShenzhenAmbient and

Facilities●●●

MSI TaipeiTaiwan

New Taipei CityAmbient

━━●

MSI TaipeiTaiwan

New Taipei City

●●

━

●

━

━

●

MSI Shenzhen

ChinaShenzhen

●●

●

━

━

━

━

MSI Kunshan

ChinaKunshan

●●

●

●

━

●

━

MSI TaipeiTaiwan

New Taipei City

●●

━

●

━

━

●

MSI Shenzhen

ChinaShenzhen

●●

●

●

●

━

━

MSI Kunshan

ChinaKunshan

━━

━

━

━

━

━

Noise Quality

Effluents Quality

Before Sewage Treatment After Sewage Treatment*

* MSI Kunshan's sewage through Kunshan municipal sewers discharged directly to the waste water treatment plant.

MSI's total electricity consumption and energy intensity 2011-2015

26

WaterWater and electricity are the major resources we consume in business activities. The water we use is tap water only and the major water consumption is for the domestic use of employees. The specific figure was calculated from the water bills of the three complexes. Related water conservation strategies are as follows:

Power ConsumptionThe major electricity consumption is for product manufacture and domestic use. In 2015, the electricity consumption and saving measures as below:

Non-renewable energy consumption

Three manufacturer's water consumption and water reused performance in 2015.

MSI total water consumption 2011-2015

The Citing Sources of the Heat Value for Each Fuel Type:

Total water consumption(Unit: m3)

1,293,526

MSI Taipei

92,685　

━

━

MSI Shenzhe　

911,503

　

160,264

12.39

MSI Kunshan

289,338　

━

━

Manufacturer

Water consumption(Unit: m3)

Water reused(Unit: m3)

Total volume of water recycled and reused

percentage(%)

YearTotal water consumption

(Unit: m3)

NoteThe heating value of electricity is calculated by 3.6 coefficient with megawatt-hour based on the EN3 in the Global Reporting Initiative (GRI) 3.1 guidelines.The temperature of air-conditioners in production line and offices is controlled at 26°C.The unnecessary lighting in the office area was shutdown.Ice water temperature is adjusted and freezer operating time is reduced.Using solar water heaters, reduce using the non-renewable energy source.Lighting control in the common rooms has been changed into voice control.

Manufacturer

Total electricity consumption

(Unit: GJ)

Temperature of Air-conditioners

Lighting equipment

Temperature and Time of Water Cooler

Renewable energy facility

Voice Control Lighting

MSI Taipei　

33,687

●

●

●

━

━

MSI Shenzhen

204,143.04

●

●

●

●

●

MSI Kunshan　

64,420.9

●

●

●

●

━

The electricity

saving measures

2011

88,650.8

319,142.9

27,898

0.0032

2011

1917.5

10233.1

4244.7

2012

85,706.4

308,543.0

31,166

0.0027

2012

1693.5

10696.3

3894.4

2013

85,758.9

308,732.0

32,323

0.0027

2013

2571.2

7089.2

3376.4

2014

92,642.3

333,512.3

34,192

0.0027

2014

2578.0

9471.0

5909.0

2015

83,958.5

302,250.9

28,524

0.0029

2015

2,372.9

8,219.7

5,603

NoteMainly consumed by

company cars.

Mainly consumed by boilers and emergency

generators.Mainly consumed by

cooking and employee restaurants.

YearTotal electricity consumption

(Unit : MWH)

Total electricity

consumption(Unit: GJ)

Major Product (Service) Sales

Volume (Unit :Kpcs)

The energy intensity ratio.

(Unit : MWH/pcs)

YearPetroleum(Unit : GJ)Diesel Fuel(Unit : GJ)

Liquefied Petroleum Gas (Unit : GJ)

Unit

Kcal/LKcal/L

Kcal/L

Fuel Type

PetroleumDiesel FuelLiquefied

Petroleum Gas

Source Description

According to the Heat Content of Various Energy Commodities by Bureau of Energy, Official website (Last updated 02/16/2015): Heat Content of Energy Products (p.161) in Energy Statistics Handbook 2014. Available from: http://web3.moeaboe.gov.tw/ECW/populace/content/SubMenu.aspx?menu_id=141.

Heating Value7,800 8,400

6,635

2011

1,285,384

2012

1,277,981

2013

1,126,097

2014

1,243,549

2015

1,293,526

The non-renewable energy consumed by MSI in 2011-2015.

2012

1

-12.4

2011

1

25.0

YearGoal (%)

The actual achieve performance (%)

2013

1

18.7

27

Waste ManagementWaste material as a part of MSI's production that is stored onsite and eliminated could be classified into normal industrial waste materials and hazardous industrial waste materials. The normal waste is further classified into recyclable and non-recyclable, and is processed accordingly. The selection of waste processing vendors is through routine public tender. We inspect and select the most suitable vendor based on criteria including vendor's license permits, hazardous and waste material management permit, waste material clearing and processing permit and more. This process also ensures that the vendor selection process is fair, open, and transparent. In 2015, the total amount of recyclable waste material was 2,444,288 kg, while the total amount of non-recyclable waste material was 2,773,639 kg.

Except products, we never transported or disposed hazardous waste to other countries in 2015. There was no severe waste leakage problem in our company as well.

The table shows the variety of waste and quantity of waste in storage and cleaning stages.

Environmental ExpenditureAs we are not in the high energy consumption or high pollution industries, investments in environmental protection are chiefly spent on management and disposal of water, noise, and waste.

ISO 14072 Organizational Life Cycle AssessmentsThe concept of life cycle assessment (LCA) was originated in 1969, when Coca-Cola wanted to seek for packaging material that was suitable for product planning while keeping environmental handling costs low. Hence, they had commissioned researchers to assess the energy consumed in the packaging for their bottled drinks and the environmental impacts that they posed. Subsequently, this method was used as a tool by businesses in evaluating or improving the pollution and burdens posed on the environment from their products, production processes, or activities.

In 2014, ISO had introduced the ISO 14072 Organizational Life Cycle Assessment standard, introducing the concept of Organizational life cycle assessment (OLCA), enhancing the scope of merely focusing on carbon issues in organizational activities to building more awareness to diverse environmental impacts. In order to understand the fundamental environmental data behind corporate sustainable developments, MSI had participated in the "Industry Sustainable Development and Guiding Program to Conform to International

Waste ReductionA total of 5,217,927 kg of waste was reduced in 2015, which was 1,199,616 kg less compared with that in 2014. The outcome achieved on the target of 1% waste reduction in 2014. The concepts of waste reduction and recycle are inoculated into the mind of MSI employees through the orientation trainings and publicity for newcomers. The dedicated department has established appropriate control methods for waste classification at MSI. To fulfill the commitment to reducing pollutant emissions, energy and resource consumption, and OHS risks with the continuous improvement of process, work environment, and equipment, we set the 2016 waste reduction target at 1%.

A total weight of waste 2011-2015

Variety of Waste

Waste reduction goal

2011

4,040,031

2,958,377

YearRecyclable waste (kg)

Unrecyclable waste (kg)

2012

4,543,031

3,072,432

2013

2,707,512

3,003,186

2014

3,187,677

3,229,866

2015

2,444,288

2,773,639

ItemCarton paper/ IC tray/ waste plastics/ waste pallets

Waste cables / Waste PS/ Waste black splice tapes/ Waste antistatic Bags/ Empty solder paste bottles/ Oil antistatic gloves and solder cloths/ Non-hazardous organic solutions and solvents/ Waste battery/ Waste fluorescent tubes/ Waste metal/ Solder slagMedical waste

DisposalOutsourcing recycle

and reuse

Outsourcing incineration and

landfill

Outsourcing incineration

Variety of Waste

The goal and benefitsEnsure that the company can meet the environmental relevant regulations and reducing the possibility of environmental pollution.The company's environmental equipment operation and maintenance cost ensure that the equipment is working properly.

Unit (NTD)

17,269,081

44,871,000

ItemThe total expenditure on environmental protection

The total amount of investments in

environmental protection

General industrial waste

Recyclable waste

Hazardous waste

Unrecyclable waste

Environmental Standards" hosted by the Foundation of Taiwan Industry Service. Organizational life cycle assessment was conducted on MSI's Taipei headquarters, and besides building personnel's life cycle assessment and impact assessment capability, this plan also helped our personnel to be more familiar with environmental impacts posed by raw materials, production processes, and transportation needed in organizational activities. Moreover, we had also voluntarily undertaken and verified the reliability of the data from organizational life cycle assessment through the third-party consulting agency(certification body), TUV Rheinland. Furthermore, we have also received the first-ever ISO 14072 certificate in the electronics industry throughout the Greater China region.

[ISO 14002 Verification Statement]

2011 2012 2013 2014 2015

77,338.00

2,714.59

74,623.41

31,166

0.00248

76,385.00

2,750.31

73,634.69

32,323

0.00236

82,172.00

3,012.00

79,160.00

34,192

0.00240

73,801.03

2,366.53

71,434.50

28,524

0.00259

28

2.5 Water FootprintWater and electricity are the major energy and resource consumed at MSI, and domestic use of employees is the main water consumption. In addition to continuously implementing the management and consumption reduction on water resources, complexes promise to:

1. Accurately capture the water consumption of each business unit;

2. Continuously improve the conditions on water resource consumption.

In 2012, we conducted the organizational water footprint inventory for the first time at MSI Taipei, MSI Computer (Shenzhen), and MSI Electronics (Kunshan).We also invited the third-party to provide onsite guidance for employees to receive basic trainings and related knowledge on water footprint inventory and to confirm the reliability of the inventory outcomes. Based on the result, we decided to analyze the reasons, establish correspondence management program, search room for improvement and optimize our utilization of water resources and its manage strategies.

2.6 Greenhouse GasIn 2008, we set the trend in electronics industry for GHG inventory implementation. Each year we implement third-party verification on our GHG inventory results in conduction with ISO 14064-1 and The GHG Protocol. By thoroughly investigation on the GHG Emissions of the complex’s facilities, we dynamically adjust the energy conservation and carbon reduction policies and plans in respect of the inventory results every year. By establishing and implementing energy-saving policies and programs, by building energy-saving facilities and equipment to management GHG emission. Since 2010, we have received the CDP (Carbon Disclosure Project) questionnaires. To public our greenhouse gas emissions, as well as coping strategies to deal with climate-related report of the investment risks and opportunities.

The total GHG emissions were 73801.03 tonnes in 2015. However, compared with that in 2014, the total emissions were reduced by 8371.11 tonnes, which did reach 1% reduction target for 2015. Therefore, the GHG emission target for 2016 is expected to be 1%.

2015 MSI operating activities environmental impact content

Boundaries, Standards, and Total Volume of GHG Emissions and emissions intensity 2011-2015

The total volume of the organizational water footprint during 2012-2015

Environmental Impact Resu7.56E+029.93E+029.72E+044.16E+011.06E-022.20E+03

Unitt SO2 eqt PO4 eqt CO2 eqt C2H4eq

t CFC-11 eqt Sb eq

ItemAcidification

EutrophicationGlobal warming

Photochemical oxidationOzone layer depletion

Abiotic depletion

2012

6,929,942

2013

26,330,598

2014

26,405,527

2015

17,985,495

YearThe total volume of the

organizational water footprint (Unit : m3)

YearBoundariesStandards

TypesUnint

Total emissionsDirect greenhouse gas

emission (Scope 1) Energy indirect Greenhouse

gas emission (Scope 2) Major Product (Service) Sales

Volume (Unit :Kpcs)The emissions intensity ratio.

(Unit : tCo2e/pcs)

83,875.00

4,958.29

78,916.71

27,898

0.00301

MSI Taipei, MSI Shenzhen, MSI Kunshan1. ISO14064-1

2. Greenhouse Gases ProtocolCO2, CH4, N2O, HFCs, PFCs, SF6

tCo2e

[Life cycle assessment framework]

29

2015 MSI Taipei number of employees

2015 Gender and age distribution percentage of the employees at MSI Taipei, MSI Shenzhen, and MSI Kunshan (%)

3. Employees

3. EmployeesMSI has established multiple service and manufacturing locations throughout the world. While we plan out our global business layout, we also openly recruit appropriate talents under a fair and transparent basis. Through having local employees from different regions and minority groups joining us, MSI has become a diversified business better equipped to offer the most immediate services.

In 2015, we have continued to develop diversified recruitment channels, and besides online recruitment, our key HR recruitment channels also included collaborating with sales and marketing recruitment channels such as ITI training center and Overseas Chinese Association. Moreover, we have also reinforced our R&D and IT personnel recruitment channels in efforts such as the Institute for Information Industry (III), in addition to hosting MSI College to foster professional maintenance workers.

Professional RecruitmentIn 2015, MSI had adopted the Taiwan TrainQuali System (TTQS) as the assessment standard for personnel training. This will help us to optimize the construction of our internal system and integrate corporate vision in order to launch action plans, which in turn can help us to enhance operational performance and social value. We have hosted various job training programs including pre-employment training, work-and-study at once, and youth employment program etc. A total of 44 individuals had completed the training and 9 were hired. We had also received the Bronze medal from TalenT Quality-management System training institution through these training.

Stable human resourceMSI str ives to achieve non-discr iminat ion in aspects of gender, age, and occupation in our labor structure. The important factor in our recruitment decisions a re based on p ro fess iona l capabilities and experiences, and through this means, we have constructed a stable labor structure. The differences in ratios of male to female in MSI's employees are reflected by the fact that a large proportion of graduates from electronics and related degrees who worked in electronics manufacturing industry are male. This has also impacted the differences in ratio of male to female in our employees.

Sales and Management

Technician

Total

Doctor

Master

College

High School

Under high school

9121,451 2,363 35.83 6.68 0.21 21.79 74.70 3.06 0.24

Item

The number of employees

Academic credentials degree rates (%)

2015 Employment rates of male and female employees at MSI Taipei, MSI Shenzhen, and MSI Kunshan (%)

The average age (years)

The average experience (years)

Employment rates of male and female employees(%)

64.43

35.57

MaleFemale

MSI Taipei MSI Shenzhen MSI KunshanMale

12.18

49.21

1.80

63.19

Male

54.83

12.25

0.25

67.32

Male

44.93

13.42

0.52

58.88

Female

12.18

49.21

1.80

63.19

Female

24.82

7.79

0.07

32.68

Female

30.92

10.21

0.00

41.12

Age distribution

Age 30 and underAge 30-50Over 50

Total

30

2015 Employee function rates (%)

Gender percentage of the employees for applying to the family care leave at MSI Taipei (%)

EmploymentPersonnel changes, turnover, and retirement in MSI's employees are all processed according to MSI's "Turnover Management Procedures," "Work Protocol" and "Recruitment Management Procedures" in addition to the local labor standards.

2015 Parental Leave at MSI Taipei (%)Female

21

12

541.67

18

16

88.89

Male3

3

3100

3

0

0.00

DescriptionsThe total number of employees that took parental leave in 2015The total number of employees due to return to work after taking

parental leave in 2015 (A)Total number of employees who did return to work after parental leave in 2015 (B)

Return to work rate (B/A) %The total number of employees who returned to work after

parental leave ended in 2014 (C)Total number of employees who returned to work after parental leave ended who

were still employed twelve months after their return to work in 2015 (D)Retention rate (D/C) %

Family care leaves application percentage (%)0.61.3

GenderMale

Female

2015 Staff positions rates (%)

2015 New employment statistics & employee turnover statistics by age and gender distribution

MSI Taipei MSI Shenzhen MSI KunshanMale

2.80

15.34

0.04

45.00

63.19

Male

0.16

1.84

5.92

59.40

67.32

Male

0.26

4.07

2.06

52.49

58.88

Female

0.53

6.05

0.13

30.11

36.81

Female

0.03

1.07

3.23

28.35

32.68

Female

0.00

1.64

1.64

37.83

41.12

Staff positions

ExecutiveMid-level executives

SupervisorGeneral staff

Total

MSI Taipei MSI Shenzhen MSI KunshanMale

7.49

3.11

52.23

0.35

63.19

Male

0.16

2.15

23.99

41.02

67.32

Male

0.07

5.12

23.14

30.54

58.88

Female

12.23

3.77

20.55

0.26

36.81

Female

0.67

1.85

10.92

19.23

32.68

Female

0.64

3.66

20.00

16.82

41.12

Employee function

SalesManagementTechnologyProduction

Total

Male Female

MSI Taipei

New employment

4.08

2.72

0.00

New employment

2.80

1.58

0.00

Employee turnover

2.63

4.78

0.18

Employee turnover

2.02

3.64

0.09

Age distribution

Age 30 and underAge 30-50Over 50

Male Female

MSI Shenzhen

New employment

151.06

16.26

0.00

New employment

92.80

11.30

0.00

Employee turnover

174.49

18.56

0.00

Employee turnover

101.93

11.69

0.00

Age distribution

Age 30 and underAge 30-50Over 50

Male Female

MSI Kunshan

New employment

69.87

1.50

0.00

New employment

36.52

2.17

0.00

Employee turnover

64.22

2.62

0.00

Employee turnover

38.99

2.84

0.00

Age distribution

Age 30 and underAge 30-50Over 50

2015 Employment rates (%) of the male and female employees by employment type, contract, and region

MSI Taipei MSI Shenzhen MSI KunshanMale

62.97

0.22

0.00

0.00

63.19

Male

66.70

0.00

0.62

0.00

67.32

Male

31.36

25.68

1.38

0.45

58.88

Female

36.68

0.13

0.00

0.00

36.81

Female

32.56

0.00

0.11

0.00

32.68

Female

25.08

15.78

0.11

0.15

41.12

Employment Type

Official employees Full time Contract employees Taiwanese Staff Part time Interns

Total

MSI Taipei

80.75

100

MSI Shenzhen

4109.75

99.31

MSI Kunshan

981.33

99.29

31

Human rights training for newcomers in 20153.2 Employee rightsHuman RightsThe MSI is a melting pot of talents from different ethnic groups and all from parts of the world. Therefore, we treat employees in the same way without distinction of any kind, such as race, color, sex, age, religion, political or other opinions, national or social origins, or other status. We ensure respect for labor and the implementation of equal treatment. The related contains included:

(1) The rights and obligations of labors and the code of conduct of employees are well defined.

(2) The employment, wage, and benefits of our employees all comply with local legal requirements.

(3) At MSI, we have established the Gender Equality Committee, related management regulations, and sexual harassment prevention channels inclusive of dedicated emails and hotlines.

(4) We establishing measures prevention of sexual harassment and committed to maintaining the protection of human dignity and gender equality. MSI has the liability to ensure that all employees are treated equally and free from the persecution of any sexual harassment.

(5) In the orientation training for newcomers, we introduce the concepts and channels of sexual harassment prevention, ethics, the Employee Assistance Program (EAP) and employee rights (included human rights) to new employees. The training ratio for the newcomers is 100%.

(6) No Discrimination, No human rights impacts, No forced labor and No sexual harassment event existed in 2015.

Wage ManagementThe wage and pension system at MSI complies with local laws and regulations. The employee pension benefit plans are constituted precisely and apply to the length of service for all formal employees before the implementation of Labor Pension Act in July 1, in 2005. The plans are also applied to the seniority of those who choose to fall under the Labor Standards Act after the implementation of Labor Pension Act. In the name of Supervisory Committee of Business Entities Labor Retirement Reserve, retirement accounts are opened in Bank of Taiwan. The pension costs at MSI Taipei in 2015 were 352,686,000 NT dollars.

In accordance with the old-age insurance system in the R.O.C., the MSI Shenzhen and MSI Kunshan allocate pension premium for local workers based on a certain proportions of their payroll every month. The rates of allocation were 13%~14% and 20% in 2014. The pensions of all staff would be made overall arrangements by the government.

In addition, the Company's compensation standards do not differ based on gender, but rather on criteria including academic and work experiences, job capabilities and performance, positions held in the Company and competencies. Moreover, our entry-level employee's wages upon first being hired are higher than the minimum wages imposed by the Ministry of Labor. In addition to fixed monthly salaries, job or work-based incentives and subsidies for meals, we also offer various bonuses according to our Company Regulations, which include but are not limited to year-end bonuses, employee benefits, and performance-based bonuses.

Employee Associations and Group NegotiationsAll the MSI members enjoy the freedom of associations and the right of group negotiation. There was no group negotiation at MSI Taipei in 2014. On the other hand, in both MSI Shenzhen and MSI Kunshan there were shop deputies to participate group negotiations and signed the proclamation.

The total number of incidents of discrimination, human rights, forced labor and

sexual harassment in 2015.

0

0

MSI has a the Gender Equality Committee, management regulations and sexual harassment prevention channels , the information as below:

Sexual harassment complaints hotline : +886-2-32345599 Ext.:1333Sexual harassment complaints email : 113@msi.com.tw

Introduction of sexual harassment prevention web : http://eip.msigp.com/eEmp/eRelationship/DocLib1/Forms/AllItems.aspxLabor compliance with local government requirements.

MSI KunshanMSI ShenzhenMSI Taipei

Training Content \ ManufacturerThe Non-discrimination, ethics(including anti-corruption), employee rights (including human rights), forced labor and sexual harassment

training total hours (hours)The employees training rate (%)

Note: 1. MSI every employee who must complete the relevant training courses.2. Unable to training's reason: official leave, medically unfit, absenteeism and turnover; The

employee of official leave will asking re-training again.

Newcomer general educationEach month we organize newcomer consensus trainings with contents including work rules, employees' rights and related channels, the introduction to the MSI management system, green product concept, and corporate laws, general education of hazardous substance, business continuity management, first-aid knowledge, introduction of infirmary, fire safety, labor safety and health education, IT Center, and other trainings with basic concepts and case studies of current events. The training ratio for newcomers is 100%.

MSI UniversityWe began planning the MSI University (MSIU) in 2009 to cope with the highly competitive business environment in the electronics industry with talent cultivation. By improving the R&D and innovation capacity in key technology and with the improvement of managerial competency and efficiency, we aim to enhance MSI employees' competitiveness in the electronics industry. To ensure that training can support the organization's overall business strategy and assure the efficacy of training with the effective use of resources, we plan to implement a purposeful, focused training program and differentiation in human resource management strategy with limited resources according to related education and training plan. All the phases of training program would be implemented "with much conscientiousness to ensure the efficiency. The training demands will be put into effect in the College of Leadership Development, College of Sales and Marketing, College of Research and Development, and College of Technology with common training and non-management competency training. The benefits of the colleges and general courses are described below:

32

Labor agreementSince MSI was first established, in addition to constructing a positive, fair work environment and planning comprehensive employee benefits, we have also established the "Work Protocols" as the basic set of behavioral guide for employees to comply with. This is to clearly state the rights and obligations of both that the employees and the management, as well as employee behavior and ethics. The content of which is as follows:

(1) Employees should abide by the law and the Articles of Association and to abide by the supervision of their supervisors.

(2) Employees should not harm the good name and reputation of the Company, nor should employees use their positions to receive gifts.

(3) Employees shall not disclose the company's business, technical, and other confidential information.

(4) Establish the standards of employee salaries, cash rewards, bonuses, retirement, leaves, and standards of incentives and disincentives.

(5) Sexual harassment prevention.

3.3 Employee DevelopmentEmployee development is our focus. Given employees are indispensable from the future development of MSI; therefore, we begin with the selection, education, and retention of employees. As for employee education, we start from plan and implement internal and external training for employees. We have also established the Training and Education Management Regulations as the reference of continuing education and internal training of employees. Employees at MSI can receive continuing education and seek self-development through comprehensive learning channels and resources, such as internal training, external training, and expatriation. We also organize conferences, speeches, and e-learning programs for employees to improve professional skills and competencies. They may take training courses during work time at the expense of the organization as well. After internal training or education, employees will need to complete the Course Evaluation Scale to evaluate training efficacy and give us suggestions for improvement so that the training organizer could arrange more appropriate training courses in the future.

2015 MSI internal education and training expense please see the MSI 2015 annual financial report - labor relations section.

The consult of employee in 2015Item \ Manufacturer

The rate of the freedom of associations and the right of

group negotiation (%)The number of violation of free

of association and collective bargaining of employees

The consult of labor and capital

Employees unionUnion representatives

Union representatives contact

MSI Taipei

100

0

Quarterly labor management

meetingNoNo

No

MSI Shenzhen

100

0

Quarterly labor management

meetingYes

Mr. HuangExtension No. :

8092

MSI Kunshan

100

0

Year labor management meeting

YesMr.Yu

Telephone No. : 0512-57718888-8061

Child Labor PolicyMSI complies with the regulations set upon by the Labor Standards Act and the UN ILO in which we do not hire child labor. We also verify the identities of job-seekers, and in addition, if MSI unknowingly hires child labor by mistake as a result of fraudulent identity provided by job-seekers, we would undertake subsequent processing and handling according to the legal requirements at the location of this occurrence, or to establish methods to handle accordingly.

Item \ ManufacturerThe child labor remediation

procedure

MSI TaipeiLabor Standards Law

MSI Shenzhen MSI KunshanThe child labor remediation and minor labor

management procedure

College of Leadership DevelopmentAiming to improve the role cognition of officers, to build their understanding of the organization's internal system and operating processes, and to boost their managerial capacities, we have designed an integral and short required management courses for new officers or just-promoted officers to quickly pick up their work. Other officers could also engage in these courses as advanced studies for their demand. 2015 focus on develop management capacity of the management and the total of 16 classes, 421 people attended courses.

College of Sales and MarketingAiming to improve the role cognition of officers, to build their understanding of the organization's internal system and operating processes, and to boost their managerial capacities, we have designed an integral and short required management courses for new officers or just-promoted officers to quickly pick up their work. Other officers could also engage in these courses as advanced studies for their demand.

College of Research and DevelopmentThe College of Research and Developments focuses on developing an innovative vision for R&D and spurring breakthroughs ideas in order to stimulate creativity on R&D. An internal R&D technology committee was also established to organize the R&D officer joint-seat meeting every quarter. This is an inter business unit platform for knowledge and technology exchange to reinforce the sharing and application of R&D knowledge.

College of TechnologyThrough the Production Technology Development Committee, the College of Technology continuously plans to design factory technology development policies and maps and enables technology course modules for all levels. For MSI Shenzhen, it quarterly promotes competition activities inclusive of competitions for creativity (total 74 pieces), operating skill (over 700 people), and production technique (350 people).

33

Differential Talent ManagementIn addition to courses in the MSI College, we have also launched the Dragon Army project on a continuous basis since year-end in 2014 in order to foster overseas sales force. Drago Army project is focused on three major perspectives: sales and marketing expertise, cultural recognition, and leadership and communications. The project trains and strengthens professional competencies and experiences in program participants through practical training such as IT expo experience, feedback presentation, and mentor guidance. We have

Employees Training

already held 4 sessions as of December 31, 2015, and each session lasted for 2-3 months. A total of 23 people had completed the training and were sent to overseas assignment individually.

Moreover, we had also promoted MOOC and course digitization in 2015 so that global educational training could be achieved from any time, any place. This effectively lowers the training time and cost and has successfully decreased the Call Center new recruits training cycle from 1 month to 1 week, and has also implemented pre-employment at-home training so that workers could immediately start to work from day one. In 2015, we had held 191 digital courses and a total of 3268 individuals had accomplished these training.

MSI Daily NewsIn order for employees to better understand industry movements and trends, MSI sends industry updates and current events to employees at noon from time to time via email, so that employees could be more aware of current industry developments. This will help employees to strengthen their recognition of the MSI brand while taking in new information. In 2015, we had sent out a total of 167 Daily News to MSI employees.

[Training/Education at MSI]

Staff positions \ Manufacture \ Gender

ExecutiveMid-level executives

SupervisorGeneral staff

Male100.00 99.14 100.00 96.40

Female100.00 100.00 100.00 99.71

Male90.00 100.00 99.72 65.88

Female100.00 100.00 100.00 81.61

Male100.00 100.00 98.18 76.57

Female0.00

100.00 97.73 82.51

MSI Taipei MSI Shenzhen MSI Kunshan

34

Performance Management and Career DevelopmentMSI would determine the annual development goals of performance management and the career development system first and transform it into Business Units (BUs) and Lines Of Business (LOBs) according to the departmental functions and duties. This way, employees can improve departmental and organizational performance by achieving personal performance. We also combine them with the Individual Development plan (IDP) to retain talents and increase the overall human assets of the organization. To achieve much effective link between personal performances to organizational performance, we implemented e-performance management system in 2009. With this system, we can reinforce cooperation, continuous interaction, and communication among complexes and further to integrate resources and make optimal allocation and utilization on human resources.

Note:1. The total number of employees of year-end performance evaluation based in 2015. (Former

employees and Taiwanese Staff are not included)2. Executive: including Assistant Vice President or above.3. Mid-level executives: Section Manager or above4. General staff: General administrative clerk (including Technician, DL, IDL, Contract employees,

Interns)

Male and Female Employee Ratio in Year-end Performance Evaluation 2015 of MSI Taipei, MSI Shenzhen, and MSI Kunshan (%)

Note:1. Executive: including Assistant Vice President or above.2. Mid-level executives: Section Manager or above3. General staff: General administrative clerk (including Technician , DL,IDL, Contract employees, Interns) [Fig. Internal education and training]

Average training hours for the employees at MSI Taipei, MSI Shenzhen, and MSI Kunshan in 2015 - classed by gender and positions (hours)

Staff positions \ Manufacture \ Gender

ExecutiveMid-level executives

SupervisorGeneral staff

Male5.64 10.62 0.50 9.12

Female7.81 10.56 1.67 9.92

Male57.60 29.62 13.15 14.33

Female33.50 61.92 14.38 16.35

Male0.00 35.58 26.78 24.55

Female0.00 35.65 16.52 21.98

MSI Taipei MSI Shenzhen MSI Kunshan

35

LOHAS at MSIVarious hardware and software facilities and activities are arranged at different plant sites according to the preferences of employees. In addition to using these facilities on ordinary days, employees have organizational activities, club activities, athleticism and cross departmental gatherings periodically organized by individual plant sites. These activities of different types are wished to provide employees physical and mental relaxation and make them enjoy a rich, healthy and balanced life between work and leisure.

Moreover, MSI offers an annual leave system that is more attractive than what is required by the Labor Standards Act. In addition to having Saturday and Sunday as holidays each week, we offer annual leaves for all employees who have been with the Company for more than 3 months. In addition, we also offer fully-paid sick leave and other leaves so that employees can enjoy quality family time more, and enjoy their lives and their work at MSI.

3.4 Employee WelfareThe Employee Welfare Committee (EWC) is established at MSI Taipei according to the Employee Welfare Policy. The committee funds come basically from two sources: 0.05% of the organizational sales turnover and 0.5% of the salary of individual employees for every month. These funds are mostly used to organize major annual events, the year-end party, cultural talks, gifts/cash gifts for the three major festivals, club activity subsidy, travel grants, monetary gifts of birthday, employee emergency aid, maternity allowance, wedding cash gift, department gatherings, interdepartmental gatherings, and employee recreational facilities. The incomes and expenditures of the EWC are published on the intranet for employees to check. 2015 MSI employee welfare please reference 1.2 Financial Performance-Employee benefits overheads 2011-2015.

MSI TaipeiVVVVVV

VVV

MSI ShenzhenVVVVVV

VV

MSI KunshanVVVVVV

VV

Employee Welfare Item / ManufactureBonus

PensionEmployees Insurance

MSI UniversityClub

Festival gifts for Dragon Boat, Mid-Autumn and Chinese New YearWelfare facilities

Employee satisfaction surveyOffer of free massage service

2015 MSI Employee Activities

MSI Family Day

Cross-Company Gathering

Volunteer Service

Ten lecture activities

36

MSI Year-End Party Softball game

Teaching of Musical Instruments Yoga Exercise

Basketball game Charitable event

Sun Moon Lake Swim Road running

1. Employee health emergency handling2. Focus on and monitor employee health, offer advocacy information for health and

diseases3. Implement occupational health checkup in practice1. Risk control of employees with high health risks or major illnesses2. Assessment of purchasing ER equipment3. Enhance health checkup completion rate in employees1. Accomplish the establishment of health management system throughout all sites2. Enhance concept of autonomous health management in employees3. Enhance effectiveness of health management through implementing disease

prevention principles as an objective

Short term goals

Medium term goals

Long term goals

37

Welfare facilitiesComprehensive recreational equipment is provided in complexes. Employees can enjoy a wide variety of facilities such as the snooker hall, ping pong halls, aerobic dance studio, and the gym. We also aid related clubs to rent related venues to practice outside, such as the badminton course, basketball course, swimming pool, golf course, baseball field, and bowling track for providing employees diversified sports options. As for domestic facilities, all the complexes are equiped with dormitories, mobile and motorcycle parking lots, employee cafeterias, multimedia TV, microwave oven, rice steamers, coffee bar, and breastfeeding rooms for women. The employee cafeterias offer multiple food choices inclusive of buffet, noodles, simple snack and vegetables.

In addition MSI Taipei, there are comprehensive resident services including travel agents, banks, group insurance, outlets, saver tickets and book fair etc. for employees to shop and enjoy convenient services without the need to travel. We are open cooperation to quality stores nearby and publish their information on the intranet which provides employees comprehensive services with discounts in food, clothing, housing, transportation, education, sanitation, books, and medical services.

Employee Health PlanningWe wish that all employees to come to work and enjoy their lives in a healthy mental and physical state of being. Hence, we have formed our health planning on the basis of principles of disease prevention of public health, as our commitment to continually plan workplace health and safety for our employees.

3.5 Healthy WorkplaceSince 2010, MSI has promoted for workplace health upgrade internally, in which we have gradually turned from a traditional workplace health perspective in promoting for labor safety, employee health checkup and prevention for occupational diseases, to promoting for comprehensive workplace health on all fronts. Besides setting up medical rooms in each facility, we have also hired professional, qualified doctors and nursing staff to offer immediate medical service to MSI employees.

MSI Taipei

NHI Clinic

Common and special exams

Speeches and dynamic information

2

3

MSI ShenzhenClinics and

psychological consultation room

Common and special exams

Speeches and dynamic information

1

2

MSI Kunshan

Clinics

Common and special exams

Speeches and dynamic information

1

1

Medical Service

Employee Physical Examination

Health Promotion Activity

HospitalistRegistered

Nurse

Medical Professionals

The number of EmployeesPerformances

The number of EmployeesPerformances

Health promotion

Blood Donation

38

* The number of employees physician visits included employees of lease manufacturer.** MSI Taipei and MSI Shenzhen are once two years for employee's health examination. The next

employee health examination is 2016*** MSI Shenzhen new comer health promotes was 200 courses per year / average of 70 people per

course.

2015 MSI health promotion activities

2015 MSI Occupational Health Promotion

ContentsHepatitis A Vaccination

Understanding Diabetes

Fraternity Grows in MSI: Blood Donation

Specialty Occupations health examination

Oral Mucosal Screening

Cultivate children's immunity

Fraternity Grows in MSI: Blood Donation

First-aid personnel annual of first training

and recurrent training

Date2015/4/222015/5/282015/6/112015/6/102015/7/82015/8/282015/9/9

2015/9/11

ContentsCPR and AED course 1

CPR and AED course 2

Influenza vaccination

Intelligent breastfeeding

Fraternity Grows in MSI: Blood

Donation

Limbs and spine care of

traditional Chinese medicine

Pap Smear test / Mammogram

Date2015/10/132015/10/142015/10/152015/11/18

2015/12/9

2015/12/10

2015/12/17

MSI Shenzhen964

None **

14000***2005074

MSI Kunshan13735*

771

311

No blood donation

MSI Taipei692

None **

1,320 16421713

The number of employees physician visitsThe number of employees health

examination

Comprehensive Workplace Health Promotion of MSIImplementation measuresMSI Taipei implemented the "health management system" to systemically manage and trace the health condition of employees and publish health information and health courses for employees a periodically.

MSI Taipei for business trips member to set up Travel Medicine Dept. service.

MSI Taipei set two the AED (Automated External Defibrillator).

Arranging a series of health promotion and disease prevention lectures to reinforce employee's awareness of health.The employees over age 50 are regulated to do Fecal Occult Blood Test (FOBT) once two years by the government. In light of this, we MSI Taipei have reduced the subjects' age to 35 in 2014.The employees who over age 35 should take FOBT. The policy is also applied to abdomen and breast ultrasound examination.Implementing Women's Care Plan

For MSI employees who are monitored and tracked due to high health risks or are on extended sick leave without pay

Implementing Women's Care Plan and women's health consultation service to enhance the promotion activity on health.

Individualized chronic disease management

Year

2010

2013

2014

2015

Performance

Employee health examination data can be archived to the system and easy to manage and trace the health condition of employees.

Health high-risk employees need to receive health education before their business trips. Risks are reduced by correlated management and by the NHI clinic affiliated to the MSI Infirmaries which could offer emergency and chronic medications.We regularly hold AED first aid courses for employees training and let employees to provide emergency assistance at emergency situations.Arranging lectures related to healthy eating, medication safety, health maintenance of traditional Chinese medicine, travel medicine and sport injury.

Employees free-Fecal Occult Blood Test (FOBT) by the age of 50 years reduced to 35 years.

Employees’ free-to abdomen and breast ultrasound examination by reduced the subjects' age to 35 years.Parent employees acquired pregnancy gifts and offered pregnancy health notices.We will assess their physical conditions and undertake travel and dispatching control based on their conditions.1. Continue to promote of parent employees acquired pregnancy gifts and offered pregnancy health notices.2. Health education workshops and inoculation activity with reference to seasonal epidemic changes are held for keeping employees and their families being informed of the recent epidemic changes. 3. Regular training for first-aiders. 4. Screening examination for four cancers.1. Employees with chronic diseases should routinely report to hospitals for checkup and tracking, take their medication accordingly and undergo blood examination to test for changes in their conditions2. Travel control management for high health risk employees to lower their risk

39

Employee Assistance Program (EAP)The Employee Assistance Project (EAP) was initiated on 1 November, 2011. By dialing 8585 (help me, help me in Taiwanese), employees can get help for the following issues: work stress, emotional problems, tax, legal affairs, medical care, and others. By combing internal and external services, EAP helps employees to solve related problems and release work stress and emotions to regain mental health, so that their family will not need to worry about their physical and mental condition.

Friendly Breastfeeding RoomBreast milk is a natural diet most suitable to newborn infants, and promoting breast feeding has become one of the health topics most talked about in the world. In as early as 2003, World Health Organization has advised that infants should drink only breast milk up until the age of 6 months, and subsequently add in supplements and keep feeding breast milk in the baby's diet until the age of 2 or older. In addition to MSI Shenzhen and MSI Kunshan having established nursing rooms in compliance with local regulations, even though MSI is not a public area and is not compelled to set up nursing rooms by law, we have nevertheless established quality nursing rooms under the immense support from the MSI management. We also provide a refrigerator, sterilizer, and we loan out a set of breast pumps free of charge. Having a supportive environment is crucial to a mother who is breast feeding, and we hope that MSI mommies can safely pump their breast milk without having any worries.

EAP email : eaphelp@msi.comEAP Hotline : 8585MSI Electronics (Kunshan) introduced a handheld APP as a communication channel with employees. The raised questions would be answered by dedicated departments and employees could receive processing progress records and results immediately.EAP Hotline : 0512-57718888-68153EAP Hotline : 8085

MSI Taipei

MSI Shenzhen

MSI Kunshan

The contact information of Employee Assistance Program (EAP)

In 2015, MSI had participated in the New Taipei City government's "Establishing a Friendly Nursing Environment" plan and had won Merit Award in Friendly Workplace under the Mother and Baby category. We strive to provide a quality nursing environment through this selection process, and to construct a city that is friendly towards breast milk so that babies can receive nutrition that is healthier and more natural.

3.6 Safety and HealthWe have begun the third-party verification of our OHSAS 18001 occupational health and safety management system since 2003. We continuously promote third-party verification until today and we do pass the verifications every year. The management cycle has been internalized in our operations. The OHS management system and the occupational safety requirements for individual departments are faithfully implemented. Compliance is audited in accordance with regulatory requirements, customer requirements, or the requirements of stakeholder groups.

We host health and safety management committee meeting for our three factory sites on a monthly basis. The ratio of labor representatives are over 1/3, and each committee member would discuss risk assessment according to characteristics of their work. We inspect and rectify dangerous locations and factors that may pose threats to health through routine workplace safety patrol, and we could even opt for extra measures to lower hazardous risks if necessary.

Risk Assessment and PreventionRisk analysis and assessments are performed on accidents, workplaces, and production activities which may cause potential occupational injuries to employees. The corrective and preventive actions are taken as well. We have established the Material Safety Data Sheet (MSDS) for individual complexes. We have also equipped all the complexes with chemical safety cabinets to handle organic solvents, so as to maintain chemical storage safety and control the chemical consumption of all units through routine check. A material stocking and shipping area is planned in all complexes to maintain personnel's safety by separating them with vehicle access. The audit team for health and safety compliance would perform casual inspection periodically or aperiodically for MSI Taipei, MSI Computer (Shenzhen), and MSI Electronics (Kunshan) every year with items such as power utilization and facilities. After inspection, it would make audit report and provide improvement projects for wholly enhancing operating environment.

Education and trainingMSI puts employees' health and safety in the first place and consider them as an important corporate asset. Therefore, we would ensure that Occupational Health and Safety (OHS) is effectively implemented, periodically maintained, and under control. The ESH Promotion Committee at the MSI Taipei would organize training/education to enrich the related knowledge of employees. For the MSI Shenzhen and Kunshan the training is arranged in the staff forums. Besides, specific health examination items are arranged for those involving high-risk work.

Work-related injuries and absencesWe MSI are committed to providing employees with a safe and worry-free work environment; zero occupational hazards are our ultimate goal. To ensure compliance with the legal requirements where a complex is located and the requirements of MSI policies, we implement various ESH exercises and preventive measures to enhance the safety awareness of employees and shape the safety culture across MSI complexes. Each complex would gather statistics of total number of employees, total hour worked, disabling injury times and total loss of workday every month to calculate the total Disabling Frequency Rate (F.R.) and the total Disabling Severity Rate (S.R.) in three complexes.

In addition, there were no injuries or deaths in the onsite safety and health tasks undertaken by contractors at MSI sites in 2015.

40

Fire ExerciseExercises on emergency response to fire are drilled periodically in complexes and dormitory. The safety and emergency response team is formed for the practice of simulation drilling. For minimizing risks, personnel's ability to deal with emergency is improved by periodic exercises and the emergency response framework also has opportunities to verify its sufficiency.

High-risk Operations TypeX-RayDustsNoise

High TemperatureStannic oxide particles

Organic solvents

MSI Taipei━　

━　

━　

━　

━　

V

MSI ShenzhenVVVV━　

━　

MSI KunshanVVVVVV

(1) New MSI Employees: General courses of labor safety and health, and hazardous materials are organized for newcomers.

(2) Active MSI Employees: OHS-related training/education activities are organized periodically. General training courses for all employees include: General Safety and Health Training, Introduction to Labor Safety and Health, Health Management and Health Promotion, Prevention and Treatment of Lower Back Pain in the Workplace, Correct Workstation Uses, and Road Traffic Safety.

(3) Resident Suppliers: OHS and fire safety-related training/education activities or practical exercises are organized periodically.

Communication and participationEvery dedicated department executes related testing operations periodically. The results would be published on the intranet EIP or informed by mail forthwith. Information about ESH management performance and potential operational risks are offered to employees for letting know the potential risks in the work environment. Occupational medical examination is arranged in compliance with regulations. We establish a complete managing system for occupational disease prevention and employees' health. For enhancing the safety awareness of employees, we encourage them to report anomalies in labor safety and health management and to participate in ESH promotion.

For the prevalence of smartphones and the change of communication way, MSI Electronics (Kunshan) introduced a new handheld app as a communication channel with employees in 2014. Employees can get hot information, propaganda items, or raise questions through the app. The raised questions would be answered by dedicated departments and employees could receive processing progress records and results immediately. The app has appointed persons and special teams for it are maintaining ace and management to ensure every question to be dealt with and get reply forthwith.

Introduction to High-Risk OperationsIndividual training, personal protective equipment, special health examinations and operating environment monitoring are arranged for employees involving high-risk work. The high-risk operations in complexes defined with local regulations are as follows:

41

Formulas:● The record date for total number of employees was December 31, 2015.Disabling Frequency Rate (FR) = Total # of injuries * 1,000,000 / Total hours workedDisabling Severity Rate (SR) = Total # of lost days * 1,000,000 / Total hours workedFrequency-Severity Indicator(FSI) =√(FR * SR/1000) Injury Rate (IR) = Total # of injuries * 200,000 / Total hours workedOccupational diseases rate (ODR) = Total # of Occupational diseases cases / Total hours worked * 200,000Lost Day Rate (LDR) = Total # of lost days * 2000,000 / Total hours workedAbsentee Rate (AR) = (Total # of absentee days over the period / Total # of workforce days worked for same period) * 100%Absentee Rate (AR): Employees' absence from duty (not caused by occupational injuries or occupational diseases), including sick leaves, full-pay sick leave and occupational sickness leave; not including permitted vacations, personal leaves, national holiday, maternity leaves, fraternity leave and mourning leave.

4. Supplier

4.1 Supplier PolicySustainable operation will never be achieved by any enterprise alone, as it needs the support of the whole supply chain behind which allows co-existence and co-prosperity. It is the same to CSR which must be fulfilled through the collaboration and mutual understanding of both upstream and downstream suppliers, in order to ensure realizing environmental protection, occupational safety, and the well-being of employees. The supply chain of MSI includes multiple companies such as suppliers, contractors, and the resellers. So far, we have established evaluation criteria for the suppliers and new suppliers and conducted audits on them periodically and aperiodically. We also provide guidance for supplies to make continuous improvement. All these are to ensure procurement process, material quality, and supplier delivery time complying with the organizational requirements for facilitating production plans and material control and to ensure new suppliers may comply with the requirements for design, quality, technical capacity, delivery time, and cost.

4.2 Supplier ManagementAs international environmental laws and client's environmental requirements are changing rapidly with current events and implementation conditions, MSI and our suppliers are constantly faced with new challenges and opportunities with changing developments and trends. We continue to communicate with, promote to, and manage suppliers through measures such as Suppliers congress, supplier assessment, material investigation survey form, green product management platform, corporate social requirements, and green product management standard for environmentally friendly product, which have been incorporated with MSI departments such as Purchasing, QA, Component Engineering, Corporate Sustainability Office, and Testing Center. In addition to informing and coaching suppliers the direction in which they should coordinate with MSI to promote in the future, we also advocate CSR-related information to suppliers to ensure that suppliers are prohibited from doing business with MSI using any inappropriate means.

Item / Manufacturer /

GenderDisabling Frequency Rate(FR)

Disabling Severity Rate(SR)

Frequency-Severity Indicator(FSI)

Injury rate (IR)

Occupational diseases rate (ODR)

Lost day rate (LDR)

Absentee rate (AR)

Work-related fatalities

Male1.41 3.00 0.06 0.28 0.00 1.00 0.34

0

Female4.18 11.00 0.21 0.84 0.00 2.00 0.77

0

Male0.91 8.00 0.09 0.18 0.00 2.00 2.67

0

Female0.20 3.00 0.02 0.04 0.00 1.00 2.52

0

Male2.40 51.00 0.35 0.48 0.00 10.00 1.12

0

Female0.00 0.00 0.00 0.00 0.00 0.00 2.19

0

MSI Taipei MSI Shenzhen MSI Kunshan

2013 2014 2015

42

Upstream DownstreamMidstream

The main raw materials supply status

Green Product Management PlatformWe established and implemented the Green Product Management (GPM) platform in January 1, 2010 to keep track on and manage hazardous substances in products with IT systems. After receiving a mission notice from the GPM platform, suppliers must upload the information of substances used in their products / parts and the required documents to the platform. Our corresponding units will review such information to control hazardous substances at the source. About the GPM also refer to 2.3 Green Product-Green Product Management Structure. We have been upgrading the platform functions and make it a channel for communicating with suppliers. We also dynamically update the latest information and requirements of MSI and worldwide over this platform to keep suppliers posted with the latest information in the industry.GPM Advantages:● Huge data collection and management.● Reduce mistakes in manual information management.● Quick information integration and analysis.● Reduce work repetition.

Industry supply chainBelow is an explanation on the relationship between MSI and our upstream and downstream supply chain.Upstream: includes but is not limited to raw material cultivation (mining) and production.

The characteristics of the industry mostly show intensely technical industries which, in addition to serving as important producers and promoters that supply parts to midstream suppliers, also dominate and influence product development.

Midstream: mostly component assembling and end-product manufacturing. Those which are in charge of product manufacturing are mostly labor-intensive industries, and MSI is also in the midstream section of the supply chain and a manufacturer of computers and peripherals. In recent years, to correspond to the Industrialization 4.0 trends, our products have gradually turned from labor-intensive to automation.

Main ProductMotherboard

Year

Item

Supplier BOther

Net purchases

The main raw material typeIntegrated Circuit

Printed Circuit Board

Transaction Amount

(Unit: One thousand)6,144,775 54,218,852 60,363,627

Transaction Amount

(Unit: One thousand)8,974,256 63,652,938 72,627,194

Transaction Amount

(Unit: One thousand)12,511,464 55,217,227 67,728,691

The rate of net

purchases (%)

10.18 89.82 100.00

The rate of net

purchases (%)

12.36 87.64 100.00

The rate of net

purchases (%)

18.47 81.53 100.00

SupplierBC

Global Brands Manufacture Ltd.APCB Electronics (S.Z.) co., Ltd.

Supply StatusStable supply availableStable supply availableStable supply availableStable supply available

Note: Due to the restriction of trade confidentiality and nondisclosure agreement, therefore a part of vendor name had been replaced by the codes.

Note: Due to the restriction of trade confidentiality and nondisclosure agreement, therefore a part of vendor name had been replaced by the codes.

43

Conflict MineralsTo realize CSR and international justice, although we do not directly purchase conflict minerals, we included conflict minerals in our GPM specification in 2011 and urged suppliers to ensure that conflict minerals do not contain in their material sources. In addition to announcing our conflict mineral policy on the MSI website, we periodically promote and communicate the latest legal and customer requirements to suppliers at the supplier general meetings. We expect suppliers thoroughly run qualified metal production plants or get certification on them. If any conflict minerals are found in suppliers' products, we would take necessary measures to forbid them.

In respect of international human rights and implement corporate social responsibility, MSI will take related measures to avoid using Conflict Minerals. Besides Conflict Minerals statements, we are also disclosure the information of conflict minerals due diligence measure and supply chain smelters list. MSI has completed the "Conflict Minerals Management Measures" in order to facilitate the investigation and control of conflict minerals.

MSI Conflict Minerals Statement website link: http://tw.msi.com/html/popup/csr_tw/sh_conflict.html

We began a corporate investigation on first tier suppliers in 2012 with the EICC-GeSI Conflict Minerals Reporting Template. At the end of 2015, the third corporate investigation was proceeding. The response rate of suppliers was 65%.

EICC Code of ConductsDespite not an EICC member, upholding the CSR spirit, we implemented the EICC Code of Conduct in 2008 and proposed "the CSR requirements for suppliers" in 2009. In 2010, we began conducting EICC onsite audits on next-level suppliers. Integrated with aspects of labor, ethics, environmental safety, and quality, the audit team periodically conducts onsite audits on high-risk suppliers to fulfill the EICC requirements at minimum impacts on both parties. The team would continuously follow up the suppliers and help them make improvement. Besides, the audit team also promotes and communicates information concerning labor, ethics, and environmental safety with employees, suppliers, and customers. Upholding business integrity and human focus in corporate governance, MSI prohibits any form of misconducts, improper advantage, and inhumane treatments. The positive effects by doing so cannot be shown and quantified immediately and the scope of effects is far and wide.

Supplier Social Responsibility ManagementSupplier Assessment: In terms of supplier assessment, MSI complies with our internal supplier assessment handling method and evaluation management standards, and parts of the management practice includes requiring suppliers to sign letters of commitment and to undertake the supplier assessment process. Those who do not submit all of the required documents cannot enter into the subsequent supplier assessment; hence, they cannot become qualified suppliers. As for suppliers who we have already been working with, we will continue to advertise CSR information to them via Supplier Meeting (congress) and Green Product Management system. In order to ensure that all of our suppliers are aware of the importance of CSR, we may even require suppliers to sign commitments or to undertake onsite audits if necessary.

ConutermeasueElectronic Industry Code of Conduct Letter AgreementCorporate Social Responsibility RequirementsStandard for Environmentally Friendly ProductsEnvironmental Compliance StatementConflict Minerals Management MeasuresThe EICC-GeSI Conflict Minerals Reporting TemplateSupplier declarationNonconforming product management procedureThe Conflict Minerals Reporting of Company Level.Disclosure of the due diligence measures result in MSI website.

Control Item

Risk Assessment and Prevention

Conflict Minerals Survey ManagementConflict Minerals Action

Corrective measuresThe conflict minerals due diligence measures result

Response Rate to Surveys for Conflict Mineral Suppliers during 2012-2015

2012-2015 First tier supplier reply rate (%)

Supplier Onsite Audit 2011-2015(Number of time)

MSI seeks for decent CSR responsibility and satisfies requirements that our stakeholders focus on. In October 2015, MSI Shenzhen has proactively asked EICC to undertake Validated Audit Process, a form of external audit. The process has been completed in March 2016, and it shows our determination in promoting and implementing EICC in practice.

Human Rights

Assessment

Social Assessment (Including corruption,

labor practices,

etc.)

44

Supplier Assessment Principle:When undertaking supplier assessment, MSI Shenzhen and MSI Kunshan will give priority consideration and give higher ratings to suppliers who have already received ISO 14001 and OHSAS 18001 certifications. For those who do not have certifications or have lower EICC ratings, we will provide a grace period for them to improve or to undertake EICC onsite audit as the situation sees fit. For suppliers who do not meet MSI's requirements after a secondary review, they will be deemed as unqualified and cannot be entered into supplier assessment again for 6 months.

New supplier’s assessment that incorporates environmental impacts, labor practices, human rights assessment, societal assessment and product responsibility that was conducted within this reporting period will be shown in the chart below.

Environmental impacts: We have established relevant consideration and rating system in this perspective during the supplier assessment.

Labor practices: Factors such as whether suppliers have been certified by standards of environmental,

Aspect \ Manufacturer

Environmental ImpactsLabor Practices

Product Responsibility

MSI Taipei MSI Shenzhen MSI Kunshan2015 the number of new suppliers

Conform

ity

Correction

Non-conform

ity

Conform

ity

Correction

Non-conform

ity

Conform

ity

Correction

Non-conform

ity

━ **

2

81.36

8

100

9

2

2

8

8

8

9

9

━

━

━

━

━

━

━

━

━

━

━

━

━

━

━

━

2 4 9━ 4 ━━ ━ ━

Item \ ManufacturerVender Investigate Form

New supplier Survey FormNew supplier Survey Form-PURCorporate Social Responsibility

RequirementsElectronic Industry Code of Conduct Letter AgreementElectronic Industry Code of Conduct Standard Letter

Agreement Supplement (Option)*MSI Supplier EICC Investigate

FormEnvironment, Safety and

Social Responsibility Survey Questionnaire

Environment, Occupational Health and Safety Questionnaire

Supplier Honest Statement

MSI Taipei●

●

━

●

●

●

━

━

━

━

MSI Shenzhen●

●

━

●

●

●

●

●

━

●

MSI Kunshan●

━

●

━

━

━

━

━

●

●

Electronic Industry Code of Conduct Standard Letter Agreement Supplement (Option): This Supplement is a special agreement for SA8000.

health and safety management system and how labor conditions and health and safety are in practice are all included in assessing whether MSI will continue to work with a particular supplier.

Human rights assessment:We routinely promote human rights during Suppliers congress and Green Product Management system. Additionally, we also conduct EICC onsite audit at supplier firms from time to time to ensure that they offer a free and just working environment.

Societal assessment:

We continuously make requirements on suppliers' ethics and integrity, and we routinely require them to sign commitments to ethical conduct. Besides MSI's internal control system, we have also established reporting channels to prevent unethical behavior from arising.

Product liability:To ensure that MSI can provide healthy and safe products to our clients, quality assessment and engineering capability assessment account for 70% weight in the overall supplier assessment. For the suppliers that do not meet quality and engineering capability requirements, there will be re-inspections. But for those who fail three re-inspections, their qualification in partaking in the assessment will be forfeited.

EICC Onsite Audit Counts

Conflict Minerals Survey Counts*

The recovery rate of Supplier Honest

Statement (%)Environmental Safety Social Responsibility Survey Form Counts

365

45

4.3 Contractor ManagementWhen contractors undertake special procedures that involve work, heights, special electricity, hanging job, gondola operation, and hypoxia processes at MSI sites, they need to apply for working permit at Occupational Safety and Health Dept. at each site and to undertake the MSI "Contractor Procedural Safety and Health Rules." This is to ensure that these contractors understand the risk factors and labor safety and health, among other regulations before they could proceed. Additionally, our labor safety department will conduct safety inspection before and during their operations, and the contractors also need to undertake environmental recovery confirmation after the procedure and to document all relevant files. During the procedures, if breaches on environmental protection and labor safety regulations are found, or if there are immediate threats to personnel safety, the procedures will need to be stopped immediately, and could only resume after the business owner and Occupational Safety and Health Dept. have collectively confirmed that improvements have been made. In 2015, we did not have any workplace hazards or sustained any economic losses as a result of breaches on operational procedures by contractors.

As for onsite contractors, they all need to proceed with relevant insurance as required by the government and the legal regulations, in addition to complying by various safety and health work rules from MSI. In addition, we will supervise that onsite contractor pay sufficient attention to the labor conditions of their workers so that they could also be in compliance with national labor standards. We have also arranged training courses so that onsite contractors could better understand our requirements for health, safety, and environmental protection.

Item

Safety. Health and Fire Fighting

Training

Operational Safety Promotion

Wholesome Food of Education

The number of the

attendance

50

14

7

Total hours

75

7

7

Objects

Resident Suppliers

Special Operations

SupplierResident

Restaurants Supplier

Hours / per person (Hours)

1.5

0.5

1

Course Title

Safety, Health and Fire Fighting Fire Management

Educations

Operations Safety Rule Promotion

Food Sanitation and Safety

* We using company level of the EICC-GeSI Conflict Minerals Reporting Template that is including MIS Taipei, MSI Shenzhen and MSI Kunshan.** MSI Taipei used Internal Control Risk Assessment to do the internal control survey and supervised the supplier honest statement collected of MSI Shenzhen, MSI Kunshan.

5. CustomersSince MSI was established, we have been committed to our operational philosophy: "product excellence, quality superiority, service perfection, and customer satisfaction" and the quality policy: "quality assurance, customer faith, failure and cost minimization, and customer service optimization". These two have elaborated our customer policy and development trends. According to our product attribute, customers are divided into ODM/OEM and general customers. By building a customer-focused internal quality and service system, we aim to provide customers with indigenized and timely services. In addition, we continuously survey and analyze customers' satisfaction for the reference of continuous improvement, so as to provide best value for customers with our products and services.

5.1 Service Management SystemGeneral customer’s satisfactionGeneral customers can express questions or recommendations for our products or services from the following channels:

● Customer service phone number 0800● Internet Customer Service System● MSI Forum● Authorized service locations● 24-hour Computer and Telephony Integration (CTI) service system

In addition to the technical service support for general customers such as phone number, internet and authorized service locations, we also conducted a customer satisfaction survey to them. According to the results in 2015, the repair quality satisfaction was 95% and 0800 customer service satisfaction was 99%. Once receiving a complaint from general customers, MSI would continue to keep track of it, arrange a client review with care and provide the customer opinions to coherent units for review and improvement. Customer satisfaction surveys are not for realizing customers' reflections only. Since 2013, new surveys of product usage and reasons to buy have been conducted. The analysis of the results is as a reference for marketing units on new product planning.

Personal Information ManagementMSI treats the personal information of customers as top secrets. In 2015, there was no record of privacy violation or personal information leak to damage the rights and benefits of customers. If it is a maintenance service on products with embedded systems and is necessary to access customer's computer, we are sure to contact the customer by phone first for obtaining the permission or passwords to have further examination on computers. All the conversation would be recorded.

46

5.2 Post-Delivery ServiceWe have established service centers or authorized service centers in major locations across the world to provide customers with various post-delivery services and technical support. By the end of 2015 there were 2316 service centers / franchised centers across the world. Customers can have their MSI products replaced and checked, receive technical consultation service, purchase accessories, and get free health checkup of their notebooks from these service centers.

In addition to local maintenance centers, customers also can make technical enquiries, check on repair progress, request repair service, and complete the customer satisfaction survey over our online repair and maintenance system. In order to provide pioneer service in the industry, we have teamed up with the Family Mart since 2006. Consumers can send their MSI products for repair only by filling a simple RMA request form. MSI will offer contact with customers for reporting repair progress information after sending and inform them to send back products after repairs. Besides, to know consumer usage information of products and to solve the problems at once, we will give a phone call to consumers and obtain suggestions on our service for future references.

Customer SatisfactionFor the customers who send products to be fixed, we will undertake a satisfaction survey via phone after three days of shipping out the fixed products. This is done to research the satisfaction rate for the maintenance procedure and satisfaction rate for phone-based customer service, in addition to understanding customer's willingness to purchase as well as suggestions for other maintenance and services. After compiling this data, it will help us to get more insights to maintenance, customer service, and product design, and will help us to better manage the quality of our service.

Quantity (case)

The average service time (days)

The satisfaction of service quality The satisfaction of 0800 customer service

2015 Customer Service Performance

2015 Customer Service Performance

2015 The ratio of service by product category

The ratio of telephone answering (%)

93.41

The ratio of first-step service (%)

87.19

Average Talking Time (min. / sec.)

3'48"Item

2012-2015 The satisfaction of general customers

47

Quality servicesBesides offering the optimal visual, audio and touch-based quality through our products, MSI also offers heartfelt and responsible professional after-sale service that truly understands consumers' needs. In 2015, we have continued to offer our popular free product health inspection service, in addition to drive-thru service and home deliveries. Designated products also offer free warranty upgrades, and we hope that customers can feel MSI's brand value through these value-added services.

(1) 2015.01.01~2015.06.31 The motherboards of military class were free for upgrade to 4 years warranty; The designated motherboards of Over Clocking / GAMING were free for upgrade to 5 years warranty.

(2) MSI has hosted the "2015 Summer Free Health Inspection" event from July 6 to August 31, 2015. Customers could enjoy one free product inspection service with any of our laptop PC or AIO (whether the product is within warranty period or otherwise).

(3) On July 8, 2015, we launched the MSI Heartfelt Service, in which the drive-thru by appointment service is launched along with the inspection appointment service, in which customers could enjoy hardware service for gaming products. We strive to realize customers' wishes for a happier life, and to create more convenient services for them. Please see our Company website for more details: http://event.msi.com/2015/twrma/index.html

(4) As of August 1, 2015, MSI has been offering home pickup service for motherboards within warranty, display graphics card, AIO in gaming series, barebones PC in gaming series, tablet PC and laptops within 1st year of warranty, and AIO PC not in gaming series. This convenient maintenance service ensures that consumers could arrange product maintenance right from the comfort of their homes.

(5) As of November 17, 2015, we have launched the automated text message alert system so that customers could clearly understand the maintenance and delivery status of their products. In addition, we also send out text messages to customers' cell phones when fixed products are being shipped out.

6. Public Welfare

6.1 Public Welfare PolicyMicro-Star International Co., Ltd (MSI) realizes our concern for society, environmental protection, employee care, shareholder commitment, and customer trust with real action. Upholding the policy and spirit of 、Change progresses constantly, Service continues silently, Contributions accumulate, Dreams realize step by step.、to give the biggest support and assistance for charitable activities in the community within the organization's reach, MSI repays society and people who are in need. Therefore, MSI regularly makes budget to support social reward, donation with love, education assistance and corporate volunteers at home and abroad, apart from the headquarters has set a Public Welfare Section to responsible for MSI's public welfare activities, three plant sites have established Public Welfare Groups, organize public welfare activities from time to time, encourage employees to participate in public welfare actives, and launch cooperation with government, same/different business and charity groups, hoping to effectively integrate resources for more people and promote a virtuous cycle of deeds in society through cooperation with different parties.

48

Social Reward-School LunchRemote regions typically face problems of population migrating away from these areas, or parents primarily work as temporary workers, laborers, or fishermen. Moreover, the ratio of single parent families, foreign spouses, or children being raised by grandparents is extremely high; hence, most of these children are leading rather underprivileged lives. Schools in remote regions usually face problems of having insufficient students, and their budget constraints render them unable to hire cooks and professional dietitians. Additionally, lunch money usually becomes a heavy burden for these schools. Hence, MSI continues to collaborate with institutions such as the Education Department of New Taipei City Government. Besides sponsoring lunch money for schools in remote regions in New Taipei City, MSI also sponsors self-sufficient schools in remote regions to purchase locally-grown vegetables or rice. We hope to improve the quality of meals for students in remote regions while not adding more burdens to their families through this continuous assistance, so that students can eat sufficient quantity and balanced, nutritious lunch and dinner and could improve their conditions of being malnourished and underweight. We also hope to make the students feel more warmth and gratitude to the society through this flow of positive strength from the society.

Achievement:

6.2 Public Welfare ServiceMSI continues to participate in welfare events through our Welfare Division, and our employees' social clubs also participate in community, education, charity sales, and environmental protection activities, giving our employees and their spouses an opportunity to contribute toward social welfare and to work with external charity groups. We hope that employees can continue to care for social events through these activities and to gain more awareness and faith in the values of being a corporate citizen.

[MSI Assistant Vice President Wayne Chien led the public service team to participate in the School Lunch Appreciation Activity organized by the Education Department, New Taipei City Government]

YearsThe number of servicePublic Welfare Service

Expenses (NTD)Computer Donation

Invoice DonationPublic Welfare Service

(hours)

School Lunch \ YearThe benefited schoolsThe benefited students

2011

6

8,120,320

7

━ *

━ **

2011

22

2264

2012

12

4,988,085

14

1402

288

2012

22

2269

2013

21

2,981,160

9

3214

1568

2013

25

2862

2014

11

12,077,880

267

500

752

2014

28

2568

2015

9

9,229,212

37

350

600

2015

29

2690

*: The data unrecorded of invoice donations in 2011.**: The hours unrecorded of public service in 2011.

Education Assistance-Love from MSI, Benefits for StudentsMSI has aggressively sought cooperation on industry-government-academics cooperation and believe cooperation is power. After the cooperation with the Social Welfare Department of the New Taipei City Government, MSI join New Taipei City Department of Education promote Homework Club for the Underprivileged Program. The program provides remedial education, homework guidance, and afterschool care for underprivileged students such as children from low- and middle-income household and single parent families or grandparent raising and no parent students.MSI integrated powers from different parties and fully utilized resources to give these students opportunities to learn and develop individual potentials and to create a new society with mutual care, warmth, and mutual support.Teachers' backgrounds:We hire school teachers or undergraduate students to serve in these roles. Hourly rate and time will all be on par with elementary and middle school regulations.

Anticipated results: (1) Assist underprivileged students during after-school remedial teaching, academic

coaching and educational welfare. Enhance the students' fundamental learning capability.

(2) Enhance students' confidence and allow each of them to have the opportunity to learn successfully through long-term academic coaching.

偏鄉課輔 \ 年度

The benefited schools總計開班數

The benefited students

2013

9

26

406

2014

10

45

430

2015

12

51

464

MSI Taipei Public Welfare Service

49

Education Assistance-Dream Fulfillment FundOver the years, MSI has served as a committee member in the New Taipei City Dreamer Foundation, in which outstanding students who come from underprivileged backgrounds and reside in remote areas in New Taipei City would be nominated through the Industry, Government, and Academia Committee to receive caring and financial support. We work collectively to improve the living conditions of these outstanding students in remote regions so that they could focus on their studies and would not be troubled by financial problems and living expenses. We hope they can successfully complete their education, and during which, they could enjoy enriched, happy campus life.

Recipients to these scholarships all come from poor families, making these funds particularly inspirational. MSI is more than willing to encourage these students and hope that they could focus on their studies, and we also hope that they can hold onto beautiful dreams in spite of their adversity, focus on learning while they can, and to be as prepared as they can for their future ahead. The key is to pass on the gesture of caring for the society, so that these students may one day give back to the society with ten or hundred times of what they have received.

We are deeply aware of the fact that there are many more corporate charity events in New Taipei City that require attention, and we hope that MSI will continue to maintain our thoughts in caring for underprivileged groups, actively collaborate with other corporations, and to exert key influence so that love and hope could be spread to even broader and wider levels.

Caring for the disadvantaged - Family Day for Special Ed StudentsTo ensure that mentally and physically challenged students could receive rich experiences in their lives, the Education Department of New Taipei City Government hosted a one-day tour to Wei Chuan Pushin Ranch for third to six grade students and their families in special education classes in New Taipei City. This gave these students, who rarely had the opportunity to travel, a chance for getaway and to be closer to nature. MSI had directly sponsored the expenses for this event, and offered 5 accessible taxi-cabs in collaboration with Taiwan Taxi, realizing the synergistic social welfare strength of 1 + 1 is greater than 2. We hope to call on various sectors to care for special education students as corporate citizens, so that we can all help these little angels to learn and grow both safely and happily.

[MSI Assistant Vice President Wayne Chien led the public service team to participate in the Homework Club of the Underprivileged Program by the Education Department, New Taipei City Government]

[MSI Assistant Vice President Wayne Chien represented the Company in the Family Day tour for special education students hosted by the Education Department of New Taipei City Government.]

[MSI Assistant Vice President Wayne Chien represented the Company in Dream Fulfillment Fund by the Education Department of New Taipei City Government.]

50

Caring for the disadvantaged - Mentally-challenged cheerleaders in North and East regionsIn every May, the Service Heart Association would hold the mentally challenged cheerleading competition so that nearly 600 children would have the chance to take center stage. MSI Volunteer Club also participates in this event as members of the Guidance Team and Team-Aid, in which our volunteers would help various teams to complete their acts. Besides enhancing the student's self-confidence, this event also reinforced their parents' strength in supporting mentally and physically challenged children so that they could continue to create better room for growth for their children.

Corporate Volunteer - Cycling Around the Island with Love, Riding for the Elderly at MennoniteDue to the impacts of having less and less childbirth in recent years, the issues of caring for the elderly have gradually gained more attention in Taiwan. As a matter of fact, Taiwan had reached the definition of an ageing society from WHO in as early as 1993. Hence, the ageing issue will continue to be a major issue in the Taiwanese society in the future. In recent years, Mennonite Christian Hospital has continued to focus on caring for the elderly, and in addition to striving to establish the Mennonite Home for Senior Citizens; the Mennonite Foundation has also continued to assist and help to deliver resources for senior citizens residing alone. In this year, MSI's volunteer club has also participated in the Cycling around the Island with Love, Riding for the Elderly at Mennonite event, in order to show the fundraising for caring for disadvantaged senior citizens in eastern Taiwan through action.

Corporate Volunteer - Gardening Club Charity SaleMSI Welfare Committee is committed to advocate for balanced work and life, and encourages our employees to establish clubs of interests. After practicing for a couple years, MSI Gardening Club had hosted the "Donate Receipts to Get Fertilizer" event in April 2015. The 350 receipts that were received through which were all donated to the Mennonite Foundation. Subsequently, in July 2015, the Gardening Club had held a Potted Plant charity sale, in which MSI employees had all purchased plants without reservations. NT$9000 was raised as a result. In October 2015, the Gardening Club had again hosted a "Donate Your Used Bag for Free Potted Plant" activity, and MSI employees had all donated bags in usable conditions. As a result, 7 large bags of bags were obtained and donated toward Hsinye Foundation. MSI Gardening Club will continue to host charity sale activities so that everyone could participate in charity events, and hopes to utilize the gardening knowledge learned from club activities to help groups in-need in the society. This is the main reason why these activities are so popular and supported by our employees - not only can everyone decorate their office space with pots of green, they can also contribute toward charity groups.

Caring for the disadvantaged - Art Cup Mentally Challenged Sports DayFor an able person, participating in sports events or cheerleading competition is no big deal. But for physically and mentally challenged individuals, this seems to be an unreachable dream. Blending into the society and embracing crowds is such an extravagance for them and their families, and they could only serve in trivial, minor parts in dark corners. The "Art Cup" Sports Day is a right and opportunity for mentally challenged individuals to participate in sports and athletics. They could only freely realize their potentials, live their lives, breakthrough challenges, and find more confidence, and to create their own space on this day. MSI's Volunteer Club served as guides for this event, and helped guide the mentally challenged individuals to happily live out their lives during the sports day.

[Scenes from the North and East region mentally challenged cheerleading competition that the MIS Volunteer Club joined in]

[Scenes from the Art Cup Mentally Challenged Sports Day that the MIS Volunteer Club joined in (image from: National Keelung Special Education School)]

[MSI's Volunteer Club participated in the Cycling around the Island with Love, Riding for the Elderly at Mennonite event]

51

[MSI employees support in potted plant charity sales, receipt donation, and bag donation events held by the Gardening Club]

6.2 Donation with LoveEmergency Relief - Ba-Li Dust Explosion ReliefOn June 27, 2015, a dust explosion at the Formosan Fun Coast in Ba-Li District, New Taipei City had led to disastrous results. Fire had engulfed and hurt over one hundreds of young lives. MSI had immediately donated NT$5 million to the "Designated Account - Dust Explosion Disaster Relief" funds in order to help the victims during their medical needs and recovery process. We also asked our employees to help, and the Company facilitated in providing information on donation, and then our employees had proactively donated on their own.

Computer donations - Pilot CaféTo offer diversified caring and guidance for teenagers, New Taipei City Government offered land and building (approximately 390.08 square meters) at 1-3F., No. 350, Sec. 1, Mingzhi Road, Taishan Dist., New Taipei City toward the Pilot Café. This is done to offer benefits for youth whose residence is registered there or physically reside there. Upon hearing about this information, MSI had immediately donated 8 All-in-One PC to the Social Welfare Department of New Taipei City Government in the hopes that they could be utilized toward establishing multifunctional venues and computer libraries for the teenagers in the community. In addition, we hoped that diversified interest groups could be formed to encourage the teenagers to devote toward social participation including volunteer service and community service, which would offer opportunities for the teenagers to develop under a positive light.

Computer donation - Community Development Plan from Social Welfare Department, New Taipei City GovernmentThe New Taipei City Community Development Association had proposed the Community Development Plan, which would be based upon the principles of communal welfare promotion. The "Joint Community" model would be useful in integrating localized resources such as charity institutions, churches, temples, groups and clubs, and schools. MSI had donated 8 computers to the Social Welfare Department to serve as tools for community e-bulletin in the Ruifang District Community Plan and in the family computer class for Amis and new immigrant groups. We hope that this would offer opportunities for residents and underprivileged groups in the community to get access to the Internet and to receive more diversified learning experiences. Through these IT equipment as the medium, we hope that the residents could effectively utilize information technology, enhance their IT capabilities, and to become more diversified and open in the ways they embrace information.

[The donation to Ba-Li Dust Explosion Relief]

[MSI Public Affairs Director Jack Chang donated computer on behalf of the MSI to Social Welfare Department, New Taipei City Government.]

[MSI Assistant Vice President Wayne Chien led the public service team to donate computer to Social Welfare Department, New Taipei City Government.]

52

The MSI Blood Donation of 2002-2014

Year

The number of Employees

Bags(250ml)

微星科技2002

111

136

2003

135

160

2004

133

181

2005

103

129

2006

262

339

2007

217

285

2008

198

269

2009

91

122

2010

195

297

2011

197

298

2012

260

388

2013

372

603

2014

380

638

Computer Donations - TAO FoundationOver the years, Tao Foundation continues to strive toward developments of topics such as the Lanyu traditional culture, charity businesses, ethnic education, health welfare, environmental and ecological preservation, public governance, local industries, and ethnic autonomy. It is a non-governmental, private platform that aims to link Lanyu tribes to the public institutions. In recent years, as the Foundation has promoted and accepted senior citizen caring services from the government and private sectors, it was in need of one computer as the tool for administrative duties and educational promotion. Due to budget constraints in office supplies, the Foundation had been unable to purchase new equipment or retire its old ones for many years. After MSI became aware of this difficulty, we donated a set of computer to the Tao Foundation. After which, the Foundation was capable of promoting relevant duties through establishing designated system and effectively managing and maintaining the Foundation files with this set of professional PC equipment.

Fraternity Grows in MSI: Blood DonationSince 2002, MSI infirmary in Taipei has invited the local blood center of Taiwan Blood Services Foundation to organize the Fraternity Grows. Besides, MSI Shenzhen aperiodically holds blood donation activities as well. Many employees roll up sleeves and donate their blood to help patients who are in need to express their fraternity.

[The donation receipt from TAO foundation]

2015 MSI Blood DonationManufacturer

The number of Employees;Bags(250ml)

MSI Taipei421713

MSI Shenzhen5074

53

Annex 1. Corrigenda

Annex 2. GRI G4 Content Index

2015 Corporate Social Responsibility Report Corrigenda

General Standard Disclosures (The following information has been disclosure and report assurance)

Page

4

7

13

14

16

19

Strategy and Analysis

G4-1 A statement from the most senior decision-maker of the organization.

Organizational Profile

G4-2 Description of key impacts, risk and opportunities.

G4-3 Name of the organization.

G4-4 Primary brands, products, and services.

G4-5 Location of the organization's headquarters.

Number of countries where the organization operates, and names of countries where either the

G4-6 organization has significant operations or that are specifically relevant to the sustainability topics

covered in the report.

G4-7 Nature of ownership and legal form.

G4-8 Markets served.

G4-9 Scale of the organization.

G4-10 Employees' situations.

G4-11 Percentage of total employees covered by collective bargaining agreements.

G4-12 Describe the organization's supply chain.

G4-13 Any significant changes during the reporting period regarding the organization's size, structure,

ownership, or its supply chain. No significant change

G4-14 Precautionary approach or principle is addressed by the organization.

G4-15 List externally developed economic, environmental and social charters, principles,

or other initiatives to which the organization subscribes or which it endorses.

G4-16

List memberships of associations.

Identified Material Aspects and Boundaries

a.List all entities included in the organization's consolidated financial statements or equivalent

G4-17 documents.

b. Report whether any entity included in the organization's consolidated financial statements or

equivalent documents is not covered by the report.

a. Explain the process for defining the report content and the Aspect Boundaries.

G4-18 b. Explain how the organization has implemented the Reporting Principles for Defining Report

Content.

G4-19 List all the material Aspects identified in the process for defining report content.

G4-20 For each material Aspect, report the Aspect Boundary within the organization.

G4-21 For each material Aspect, report the Aspect Boundary outside the organization.

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons

for such restatements.

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

G4-26 Report the organization's approach to stakeholder engagement.

Report key topics and concerns that have been raised through stakeholder engagement, and how

G4-27 the organization has responded to those key topics and concerns, including through its reporting.

Report the stakeholder groups that raised each of the key topics and concerns.

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided.

G4-29 Date of most recent previous report.

G4-30 Reporting cycle.

G4-31 Provide the contact point for questions regarding the report or its contents.

G4-32 a. Report the "in accordance" option the organization has chosen.

b. Report the GRI Content Index for the chosen option.

c. Report the reference to the External Assurance Report, if the report has been

externally assured.

G4-33 a. Report the organization's policy and current practice with regard to seeking external assurance

for the report.

b. If not included in the assurance report accompanying the sustainability report, report the scope

and basis of any external assurance provided.

c. Report the relationship between the organization and the assurance providers.

d. Report whether the highest governance body or senior executives are involved in seeking

assurance for the organization's sustainability report.

Governance

G4-34 Report the governance structure of the organization.

G4-38 Report the composition of the highest governance body and its committees.

G4-43 Report the measures taken to develop and enhance the highest governance body's collective

knowledge of economic, environmental and social topics.

G4-46 Report the highest governance body's role in reviewing the effectiveness of the organization's

risk management processes for economic, environmental and social topics.

G4-47 Report the frequency of the highest governance body's review of economic, environmental and

social impacts, risks, and opportunities.

G4-48 Report the highest committee or position that formally reviews and approves the organization's

sustainability report and ensures that all material Aspects are covered.

a. Report the remuneration policies for the highest governance body and senior executives.

G4-51

b. Report how performance criteria in the remuneration policy relate to the highest governance

body's and senior executives' economic, environmental and social objectives.

Ethics and Integrity

G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of

conduct and codes of ethics.

Report the internal and external mechanisms for seeking advice on ethical and lawful behavior,

G4-57 and matters related to organizational integrity, such as helplines or advice lines.

Report the internal and external mechanisms for reporting concerns about unethical or unlawful

G4-58 behavior, and matters related to organizational integrity, such as escalation through line

management, whistleblowing mechanisms or hotlines.

Strategy and Analysis

G4-1 A statement from the most senior decision-maker of the organization.

Organizational Profile

G4-2 Description of key impacts, risk and opportunities.

G4-3 Name of the organization.

G4-4 Primary brands, products, and services.

G4-5 Location of the organization's headquarters.

Number of countries where the organization operates, and names of countries where either the

G4-6 organization has significant operations or that are specifically relevant to the sustainability topics

covered in the report.

G4-7 Nature of ownership and legal form.

G4-8 Markets served.

G4-9 Scale of the organization.

G4-10 Employees' situations.

G4-11 Percentage of total employees covered by collective bargaining agreements.

G4-12 Describe the organization's supply chain.

G4-13 Any significant changes during the reporting period regarding the organization's size, structure,

ownership, or its supply chain. No significant change

G4-14 Precautionary approach or principle is addressed by the organization.

G4-15 List externally developed economic, environmental and social charters, principles,

or other initiatives to which the organization subscribes or which it endorses.

G4-16

List memberships of associations.

Identified Material Aspects and Boundaries

a.List all entities included in the organization's consolidated financial statements or equivalent

G4-17 documents.

b. Report whether any entity included in the organization's consolidated financial statements or

equivalent documents is not covered by the report.

a. Explain the process for defining the report content and the Aspect Boundaries.

G4-18 b. Explain how the organization has implemented the Reporting Principles for Defining Report

Content.

G4-19 List all the material Aspects identified in the process for defining report content.

G4-20 For each material Aspect, report the Aspect Boundary within the organization.

G4-21 For each material Aspect, report the Aspect Boundary outside the organization.

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons

for such restatements.

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

G4-26 Report the organization's approach to stakeholder engagement.

Report key topics and concerns that have been raised through stakeholder engagement, and how

G4-27 the organization has responded to those key topics and concerns, including through its reporting.

Report the stakeholder groups that raised each of the key topics and concerns.

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided.

G4-29 Date of most recent previous report.

G4-30 Reporting cycle.

G4-31 Provide the contact point for questions regarding the report or its contents.

G4-32 a. Report the "in accordance" option the organization has chosen.

b. Report the GRI Content Index for the chosen option.

c. Report the reference to the External Assurance Report, if the report has been

externally assured.

G4-33 a. Report the organization's policy and current practice with regard to seeking external assurance

for the report.

b. If not included in the assurance report accompanying the sustainability report, report the scope

and basis of any external assurance provided.

c. Report the relationship between the organization and the assurance providers.

d. Report whether the highest governance body or senior executives are involved in seeking

assurance for the organization's sustainability report.

Governance

G4-34 Report the governance structure of the organization.

G4-38 Report the composition of the highest governance body and its committees.

G4-43 Report the measures taken to develop and enhance the highest governance body's collective

knowledge of economic, environmental and social topics.

G4-46 Report the highest governance body's role in reviewing the effectiveness of the organization's

risk management processes for economic, environmental and social topics.

G4-47 Report the frequency of the highest governance body's review of economic, environmental and

social impacts, risks, and opportunities.

G4-48 Report the highest committee or position that formally reviews and approves the organization's

sustainability report and ensures that all material Aspects are covered.

a. Report the remuneration policies for the highest governance body and senior executives.

G4-51

b. Report how performance criteria in the remuneration policy relate to the highest governance

body's and senior executives' economic, environmental and social objectives.

Ethics and Integrity

G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of

conduct and codes of ethics.

Report the internal and external mechanisms for seeking advice on ethical and lawful behavior,

G4-57 and matters related to organizational integrity, such as helplines or advice lines.

Report the internal and external mechanisms for reporting concerns about unethical or unlawful

G4-58 behavior, and matters related to organizational integrity, such as escalation through line

management, whistleblowing mechanisms or hotlines.

54

Specific Standard Disclosures (The following information has been disclosure and report assurance)

Strategy and Analysis

G4-1 A statement from the most senior decision-maker of the organization.

Organizational Profile

G4-2 Description of key impacts, risk and opportunities.

G4-3 Name of the organization.

G4-4 Primary brands, products, and services.

G4-5 Location of the organization's headquarters.

Number of countries where the organization operates, and names of countries where either the

G4-6 organization has significant operations or that are specifically relevant to the sustainability topics

covered in the report.

G4-7 Nature of ownership and legal form.

G4-8 Markets served.

G4-9 Scale of the organization.

G4-10 Employees' situations.

G4-11 Percentage of total employees covered by collective bargaining agreements.

G4-12 Describe the organization's supply chain.

G4-13 Any significant changes during the reporting period regarding the organization's size, structure,

ownership, or its supply chain. No significant change

G4-14 Precautionary approach or principle is addressed by the organization.

G4-15 List externally developed economic, environmental and social charters, principles,

or other initiatives to which the organization subscribes or which it endorses.

G4-16

List memberships of associations.

Identified Material Aspects and Boundaries

a.List all entities included in the organization's consolidated financial statements or equivalent

G4-17 documents.

b. Report whether any entity included in the organization's consolidated financial statements or

equivalent documents is not covered by the report.

a. Explain the process for defining the report content and the Aspect Boundaries.

G4-18 b. Explain how the organization has implemented the Reporting Principles for Defining Report

Content.

G4-19 List all the material Aspects identified in the process for defining report content.

G4-20 For each material Aspect, report the Aspect Boundary within the organization.

G4-21 For each material Aspect, report the Aspect Boundary outside the organization.

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons

for such restatements.

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

G4-26 Report the organization's approach to stakeholder engagement.

Report key topics and concerns that have been raised through stakeholder engagement, and how

G4-27 the organization has responded to those key topics and concerns, including through its reporting.

Report the stakeholder groups that raised each of the key topics and concerns.

Report Profile

G4-28 Reporting period (such as fiscal or calendar year) for information provided.

G4-29 Date of most recent previous report.

G4-30 Reporting cycle.

G4-31 Provide the contact point for questions regarding the report or its contents.

G4-32 a. Report the "in accordance" option the organization has chosen.

b. Report the GRI Content Index for the chosen option.

c. Report the reference to the External Assurance Report, if the report has been

externally assured.

G4-33 a. Report the organization's policy and current practice with regard to seeking external assurance

for the report.

b. If not included in the assurance report accompanying the sustainability report, report the scope

and basis of any external assurance provided.

c. Report the relationship between the organization and the assurance providers.

d. Report whether the highest governance body or senior executives are involved in seeking

assurance for the organization's sustainability report.

Governance

G4-34 Report the governance structure of the organization.

G4-38 Report the composition of the highest governance body and its committees.

G4-43 Report the measures taken to develop and enhance the highest governance body's collective

knowledge of economic, environmental and social topics.

G4-46 Report the highest governance body's role in reviewing the effectiveness of the organization's

risk management processes for economic, environmental and social topics.

G4-47 Report the frequency of the highest governance body's review of economic, environmental and

social impacts, risks, and opportunities.

G4-48 Report the highest committee or position that formally reviews and approves the organization's

sustainability report and ensures that all material Aspects are covered.

a. Report the remuneration policies for the highest governance body and senior executives.

G4-51

b. Report how performance criteria in the remuneration policy relate to the highest governance

body's and senior executives' economic, environmental and social objectives.

Ethics and Integrity

G4-56 Describe the organization's values, principles, standards and norms of behavior such as codes of

conduct and codes of ethics.

Report the internal and external mechanisms for seeking advice on ethical and lawful behavior,

G4-57 and matters related to organizational integrity, such as helplines or advice lines.

Report the internal and external mechanisms for reporting concerns about unethical or unlawful

G4-58 behavior, and matters related to organizational integrity, such as escalation through line

management, whistleblowing mechanisms or hotlines.

5

8

20

10、

48~50、

53~58

9

10、

73~79

62

73

38

36

40

40

33、34

39、43

43

═

41

36

38

42

42

37、62

17

44

47

47

53

55

47

50

59

61

61

50

65

17

48

48

48

49

49

48

20

64~66

64~66

17

48

17、48

16

18

18

65~67

16

48

31

35

18、36

69

18

68

18

CEO's Commitment

1.2 Financial Performance

1.7 Risk Management

1.2 Financial Performance

3.2 Employee rights

3.4 Employee Welfare

1.2 Financial Performance

1.2 Financial Performance

6.2 Public Welfare Service

6.3 Donation with Love

4.2 Supplier Management

6.2 Public Welfare Service

2.4 Environmental Performance

2.2 Green Product-Packaging Materials

2.4 Environmental Performance

2.4 Environmental Performance

2.2 Green Product

2.4 Environmental Performance

2.5 Water Footprint

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.4 Environmental

Performance

2.2 Green Product

2.4 Environmental

Performance

2.4 Environmental

Performance

2.4 Environmental

Performance

2.3 Green Management

4.2 Supplier Management

1.4 Corporate Governance

3.1 Employees hired

3.1 Employees hired

3.1 Employees hired

3.4 Employee Welfare

3.5 Healthy Workplace

3.1 Employees hired

3.2 Employee rights

3.6 Safety and Health

3.6 Safety and Health

3.6 Safety and Health

3.3 Employee Development

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

1.6 System Certification

4.2 Supplier Management

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

1.4 Corporate Governance

1.4 Corporate Governance

4.2 Supplier Management

4.3 Contractor Management

1.4 Corporate Governance

3.2 Employee rights

2.2 Green Product

2.2 Green Product

1.4 Corporate Governance

2.3 Green Management

5.2 Post-Delivery Service

1.4 Corporate Governance

5.1 Service

Management System

1.4 Corporate Governance

Category Material Aspects G4 Guidelines Page CSR Section

G4-DMA

Economic

Performance

Indirect

Economic

Impacts

G4-DMA

Materials

Energy

Water

Emissions

Effluents

and Waste

Products and

Services

Compliance

Transport

Overall

Supplier

Environmental

Assessment

Environmental

Grievance

Mechanisms

G4-DMA

Employment

Occupational

Health

and Safety

Training and

Education

Supplier

Assessment

for Labor

Practices

Labor Practices

Grievance

Mechanisms

Investment

Non-

discrimination

Freedom of

Association and

Collective

Bargaining

Child Labor

Forced or

Compulsory

Labor

Assessment

Supplier

Human Rights

Assessment

Human Rights

Grievance

Mechanisms

Anti-corruption

Public Policy

Anti-competitive

Behavior

Compliance

Supplier

Assessment for

Impacts on

Society

Grievance

Mechanisms for

Impacts on

Society

G4-DMA

Customer

Health and

Safety

Product and

Service Labeling

Marketing

communications

Customer Privacy

Compliance

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC7

G4-EC8

G4-EN2

G4-EN3

G4-EN5

G4-EN7

G4-EN8

G4-EN10

G4-EN15

G4-EN16

G4-EN18

G4-EN20

G4-EN23

G4-EN24

G4-EN25

G4-EN28

G4-EN29

G4-EN30

G4-EN31

G4-EN32

G4-EN34

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA9

G4-LA10

G4-LA11

G4-LA14

G4-LA16

G4-HR2

G4-HR3

G4-HR4

G4-HR5

G4-HR6

G4-HR9

G4-HR10

G4-HR11

G4-HR12

G4-SO3

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO9

G4-SO11

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR5

G4-PR7

G4-PR8

G4-PR9

Disclosures on Management Approach

Direct economic value generated and distributed

Financial implications and other risks and opportunities for the

organization's activities due to climate change

Coverage of the organization's defined benefit plan obligation

Financial assistance received from government

Development and impact of infrastructure investments and

services supported

Significant indirect economic impacts, including the extent of

impacts

Disclosures on Management Approach

Percentage of materials used that are recycled input materials

Energy consumption within the organization

Energy intensity

Reductions in energy requirements of products and services

Total water withdrawal by source

Percentage and total volume of water recycled and reused

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Greenhouse gas (GHG) emissions intensity

Emissions of ozone-depleting substances (ODS)

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of transported, imported, exported, or

treated waste deemed hazardous under the terms of the Basel

Convention 2 Annex I, II, III, and VIII, and percentage of

transported waste shipped internationally

Percentage of products sold and their packaging materials that

are reclaimed by category

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with environmental

laws and regulations

Significant environmental impacts of transporting products and

other goods and materials for the organization's operations, and

transporting members of the workforce

Total environmental protection expenditures and investments by

type

Percentage of new suppliers that were screened using

environmental criteria

Number of grievances about environmental impacts filed,

addressed, and resolved through formal grievance mechanisms

Disclosures on Management Approach

Total number and rates of new employee hires and employee

turnover by age group, gender, and region

Benefits provided to full-time employees that are not provided

to temporary or part time employees, by significant locations of

operation

Return to work and retention rates after parental leave, by

gender

Minimum notice periods regarding operational changes,

including whether these are specified in collective agreements

Percentage of total workforce represented in formal joint

management-worker health and safety committees that help

monitor and advise on occupational health and safety programs

Type of injury and rates of injury, occupational diseases, lost

days, and absenteeism, and total number of work related

fatalities, by region and by gender

Workers with high incidence or high risk of diseases related to

their occupation

Average hours of training per year per employee by gender, and

by employee category

Programs for skills management and lifelong learning that

support the continued employability of employees and assist

them in managing career endings

Percentage of employees receiving regular performance and

career development reviews, by gender and by employee

category

Percentage of new suppliers that were screened using labor

practices criteria

Number of grievances about labor practices filed, addressed, and

resolved through formal grievance mechanisms

Total hours of employee training on human rights policies or

procedures concerning aspects of human rights that are relevant

to operations, including the percentage of employees trained

Total number of incidents of discrimination and corrective

actions taken

Operations and suppliers identified in which the right to exercise

freedom of association and collective bargaining may be

violated or at significant risk, and measures taken to support

these rights

Operations and suppliers identified as having significant risk for

incidents of child labor, and measures taken to contribute to the

effective abolition of child labor

Operations and suppliers identified as having significant risk for

incidents of forced or compulsory labor, and measures to

contribute to the elimination of all forms of forced or

compulsory labor

Total number and percentage of operations that have been

subject to human rights reviews or impact assessments

Percentage of new suppliers that were screened using human

rights criteria

Significant actual and potential negative human rights impacts in

the supply chain and actions taken

Number of grievances about human rights impacts filed,

addressed, and resolved through formal grievance mechanisms

Total number and percentage of operations assessed for risks

related to corruption and the significant risks identified

Communication and training on anti-corruption policies and

procedures

Confirmed incidents of corruption and actions taken

Total value of political contributions by country and

recipient/beneficiary

Total number of legal actions for anti-competitive behavior,

anti-trust, and monopoly practices and their outcomes

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with laws and

regulations

Percentage of new suppliers that were screened using criteria for

impacts on society

Number of grievances about impacts on society filed, addressed,

and resolved through formal grievance mechanisms

Disclosures on Management Approach

Percentage of significant product and service categories for

which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations

and voluntary codes concerning the health and safety impacts of

products and services during their life cycle, by type of outcomes

Type of product and service information required by the

organization's procedures for product and service information

and labeling, and percentage of significant product and service

categories subject to such information requirements

Total number of incidents of non-compliance with regulations

and voluntary codes concerning product and service information

and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

Total number of incidents of non-compliance with regulations

and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship, by type of

outcomes

Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data

Monetary value of significant fines for noncompliance with laws

and regulations concerning the provision and use of products

and services

Environm

entalLab

or Practices and

Decent W

ork

Hum

an Rig

htsSo

cietyPro

duct R

espo

nsibility

Econo

mic

MSI are currently using environmental refrigerants

and does not using the R12 refrigerant or other traditional refrigerants.

5

8

20

10、

48~50、

53~58

9

10、

73~79

62

73

38

36

40

40

33、34

39、43

43

═

41

36

38

42

42

37、62

17

44

47

47

53

55

47

50

59

61

61

50

65

17

48

48

48

49

49

48

20

64~66

64~66

17

48

17、48

16

18

18

65~67

16

48

31

35

18、36

69

18

68

18

CEO's Commitment

1.2 Financial Performance

1.7 Risk Management

1.2 Financial Performance

3.2 Employee rights

3.4 Employee Welfare

1.2 Financial Performance

1.2 Financial Performance

6.2 Public Welfare Service

6.3 Donation with Love

4.2 Supplier Management

6.2 Public Welfare Service

2.4 Environmental Performance

2.2 Green Product-Packaging Materials

2.4 Environmental Performance

2.4 Environmental Performance

2.2 Green Product

2.4 Environmental Performance

2.5 Water Footprint

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.4 Environmental

Performance

2.2 Green Product

2.4 Environmental

Performance

2.4 Environmental

Performance

2.4 Environmental

Performance

2.3 Green Management

4.2 Supplier Management

1.4 Corporate Governance

3.1 Employees hired

3.1 Employees hired

3.1 Employees hired

3.4 Employee Welfare

3.5 Healthy Workplace

3.1 Employees hired

3.2 Employee rights

3.6 Safety and Health

3.6 Safety and Health

3.6 Safety and Health

3.3 Employee Development

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

1.6 System Certification

4.2 Supplier Management

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

1.4 Corporate Governance

1.4 Corporate Governance

4.2 Supplier Management

4.3 Contractor Management

1.4 Corporate Governance

3.2 Employee rights

2.2 Green Product

2.2 Green Product

1.4 Corporate Governance

2.3 Green Management

5.2 Post-Delivery Service

1.4 Corporate Governance

5.1 Service

Management System

1.4 Corporate Governance

Category Material Aspects G4 Guidelines Page CSR Section

G4-DMA

Economic

Performance

Indirect

Economic

Impacts

G4-DMA

Materials

Energy

Water

Emissions

Effluents

and Waste

Products and

Services

Compliance

Transport

Overall

Supplier

Environmental

Assessment

Environmental

Grievance

Mechanisms

G4-DMA

Employment

Occupational

Health

and Safety

Training and

Education

Supplier

Assessment

for Labor

Practices

Labor Practices

Grievance

Mechanisms

Investment

Non-

discrimination

Freedom of

Association and

Collective

Bargaining

Child Labor

Forced or

Compulsory

Labor

Assessment

Supplier

Human Rights

Assessment

Human Rights

Grievance

Mechanisms

Anti-corruption

Public Policy

Anti-competitive

Behavior

Compliance

Supplier

Assessment for

Impacts on

Society

Grievance

Mechanisms for

Impacts on

Society

G4-DMA

Customer

Health and

Safety

Product and

Service Labeling

Marketing

communications

Customer Privacy

Compliance

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC7

G4-EC8

G4-EN2

G4-EN3

G4-EN5

G4-EN7

G4-EN8

G4-EN10

G4-EN15

G4-EN16

G4-EN18

G4-EN20

G4-EN23

G4-EN24

G4-EN25

G4-EN28

G4-EN29

G4-EN30

G4-EN31

G4-EN32

G4-EN34

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA9

G4-LA10

G4-LA11

G4-LA14

G4-LA16

G4-HR2

G4-HR3

G4-HR4

G4-HR5

G4-HR6

G4-HR9

G4-HR10

G4-HR11

G4-HR12

G4-SO3

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO9

G4-SO11

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR5

G4-PR7

G4-PR8

G4-PR9

Disclosures on Management Approach

Direct economic value generated and distributed

Financial implications and other risks and opportunities for the

organization's activities due to climate change

Coverage of the organization's defined benefit plan obligation

Financial assistance received from government

Development and impact of infrastructure investments and

services supported

Significant indirect economic impacts, including the extent of

impacts

Disclosures on Management Approach

Percentage of materials used that are recycled input materials

Energy consumption within the organization

Energy intensity

Reductions in energy requirements of products and services

Total water withdrawal by source

Percentage and total volume of water recycled and reused

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Greenhouse gas (GHG) emissions intensity

Emissions of ozone-depleting substances (ODS)

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of transported, imported, exported, or

treated waste deemed hazardous under the terms of the Basel

Convention 2 Annex I, II, III, and VIII, and percentage of

transported waste shipped internationally

Percentage of products sold and their packaging materials that

are reclaimed by category

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with environmental

laws and regulations

Significant environmental impacts of transporting products and

other goods and materials for the organization's operations, and

transporting members of the workforce

Total environmental protection expenditures and investments by

type

Percentage of new suppliers that were screened using

environmental criteria

Number of grievances about environmental impacts filed,

addressed, and resolved through formal grievance mechanisms

Disclosures on Management Approach

Total number and rates of new employee hires and employee

turnover by age group, gender, and region

Benefits provided to full-time employees that are not provided

to temporary or part time employees, by significant locations of

operation

Return to work and retention rates after parental leave, by

gender

Minimum notice periods regarding operational changes,

including whether these are specified in collective agreements

Percentage of total workforce represented in formal joint

management-worker health and safety committees that help

monitor and advise on occupational health and safety programs

Type of injury and rates of injury, occupational diseases, lost

days, and absenteeism, and total number of work related

fatalities, by region and by gender

Workers with high incidence or high risk of diseases related to

their occupation

Average hours of training per year per employee by gender, and

by employee category

Programs for skills management and lifelong learning that

support the continued employability of employees and assist

them in managing career endings

Percentage of employees receiving regular performance and

career development reviews, by gender and by employee

category

Percentage of new suppliers that were screened using labor

practices criteria

Number of grievances about labor practices filed, addressed, and

resolved through formal grievance mechanisms

Total hours of employee training on human rights policies or

procedures concerning aspects of human rights that are relevant

to operations, including the percentage of employees trained

Total number of incidents of discrimination and corrective

actions taken

Operations and suppliers identified in which the right to exercise

freedom of association and collective bargaining may be

violated or at significant risk, and measures taken to support

these rights

Operations and suppliers identified as having significant risk for

incidents of child labor, and measures taken to contribute to the

effective abolition of child labor

Operations and suppliers identified as having significant risk for

incidents of forced or compulsory labor, and measures to

contribute to the elimination of all forms of forced or

compulsory labor

Total number and percentage of operations that have been

subject to human rights reviews or impact assessments

Percentage of new suppliers that were screened using human

rights criteria

Significant actual and potential negative human rights impacts in

the supply chain and actions taken

Number of grievances about human rights impacts filed,

addressed, and resolved through formal grievance mechanisms

Total number and percentage of operations assessed for risks

related to corruption and the significant risks identified

Communication and training on anti-corruption policies and

procedures

Confirmed incidents of corruption and actions taken

Total value of political contributions by country and

recipient/beneficiary

Total number of legal actions for anti-competitive behavior,

anti-trust, and monopoly practices and their outcomes

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with laws and

regulations

Percentage of new suppliers that were screened using criteria for

impacts on society

Number of grievances about impacts on society filed, addressed,

and resolved through formal grievance mechanisms

Disclosures on Management Approach

Percentage of significant product and service categories for

which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations

and voluntary codes concerning the health and safety impacts of

products and services during their life cycle, by type of outcomes

Type of product and service information required by the

organization's procedures for product and service information

and labeling, and percentage of significant product and service

categories subject to such information requirements

Total number of incidents of non-compliance with regulations

and voluntary codes concerning product and service information

and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

Total number of incidents of non-compliance with regulations

and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship, by type of

outcomes

Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data

Monetary value of significant fines for noncompliance with laws

and regulations concerning the provision and use of products

and services

Environm

entalLab

or Practices and

Decent W

ork

Hum

an Rig

htsSo

cietyPro

duct R

espo

nsibility

Econo

mic

MSI are currently using environmental refrigerants

and does not using the R12 refrigerant or other traditional refrigerants.

55

5

8

20

10、

48~50、

53~58

9

10、

73~79

62

73

38

36

40

40

33、34

39、43

43

═

41

36

38

42

42

37、62

17

44

47

47

53

55

47

50

59

61

61

50

65

17

48

48

48

49

49

48

20

64~66

64~66

17

48

17、48

16

18

18

65~67

16

48

31

35

18、36

69

18

68

18

CEO's Commitment

1.2 Financial Performance

1.7 Risk Management

1.2 Financial Performance

3.2 Employee rights

3.4 Employee Welfare

1.2 Financial Performance

1.2 Financial Performance

6.2 Public Welfare Service

6.3 Donation with Love

4.2 Supplier Management

6.2 Public Welfare Service

2.4 Environmental Performance

2.2 Green Product-Packaging Materials

2.4 Environmental Performance

2.4 Environmental Performance

2.2 Green Product

2.4 Environmental Performance

2.5 Water Footprint

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.4 Environmental

Performance

2.2 Green Product

2.4 Environmental

Performance

2.4 Environmental

Performance

2.4 Environmental

Performance

2.3 Green Management

4.2 Supplier Management

1.4 Corporate Governance

3.1 Employees hired

3.1 Employees hired

3.1 Employees hired

3.4 Employee Welfare

3.5 Healthy Workplace

3.1 Employees hired

3.2 Employee rights

3.6 Safety and Health

3.6 Safety and Health

3.6 Safety and Health

3.3 Employee Development

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

1.6 System Certification

4.2 Supplier Management

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

1.4 Corporate Governance

1.4 Corporate Governance

4.2 Supplier Management

4.3 Contractor Management

1.4 Corporate Governance

3.2 Employee rights

2.2 Green Product

2.2 Green Product

1.4 Corporate Governance

2.3 Green Management

5.2 Post-Delivery Service

1.4 Corporate Governance

5.1 Service

Management System

1.4 Corporate Governance

Category Material Aspects G4 Guidelines Page CSR Section

G4-DMA

Economic

Performance

Indirect

Economic

Impacts

G4-DMA

Materials

Energy

Water

Emissions

Effluents

and Waste

Products and

Services

Compliance

Transport

Overall

Supplier

Environmental

Assessment

Environmental

Grievance

Mechanisms

G4-DMA

Employment

Occupational

Health

and Safety

Training and

Education

Supplier

Assessment

for Labor

Practices

Labor Practices

Grievance

Mechanisms

Investment

Non-

discrimination

Freedom of

Association and

Collective

Bargaining

Child Labor

Forced or

Compulsory

Labor

Assessment

Supplier

Human Rights

Assessment

Human Rights

Grievance

Mechanisms

Anti-corruption

Public Policy

Anti-competitive

Behavior

Compliance

Supplier

Assessment for

Impacts on

Society

Grievance

Mechanisms for

Impacts on

Society

G4-DMA

Customer

Health and

Safety

Product and

Service Labeling

Marketing

communications

Customer Privacy

Compliance

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC7

G4-EC8

G4-EN2

G4-EN3

G4-EN5

G4-EN7

G4-EN8

G4-EN10

G4-EN15

G4-EN16

G4-EN18

G4-EN20

G4-EN23

G4-EN24

G4-EN25

G4-EN28

G4-EN29

G4-EN30

G4-EN31

G4-EN32

G4-EN34

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA9

G4-LA10

G4-LA11

G4-LA14

G4-LA16

G4-HR2

G4-HR3

G4-HR4

G4-HR5

G4-HR6

G4-HR9

G4-HR10

G4-HR11

G4-HR12

G4-SO3

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO9

G4-SO11

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR5

G4-PR7

G4-PR8

G4-PR9

Disclosures on Management Approach

Direct economic value generated and distributed

Financial implications and other risks and opportunities for the

organization's activities due to climate change

Coverage of the organization's defined benefit plan obligation

Financial assistance received from government

Development and impact of infrastructure investments and

services supported

Significant indirect economic impacts, including the extent of

impacts

Disclosures on Management Approach

Percentage of materials used that are recycled input materials

Energy consumption within the organization

Energy intensity

Reductions in energy requirements of products and services

Total water withdrawal by source

Percentage and total volume of water recycled and reused

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Greenhouse gas (GHG) emissions intensity

Emissions of ozone-depleting substances (ODS)

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of transported, imported, exported, or

treated waste deemed hazardous under the terms of the Basel

Convention 2 Annex I, II, III, and VIII, and percentage of

transported waste shipped internationally

Percentage of products sold and their packaging materials that

are reclaimed by category

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with environmental

laws and regulations

Significant environmental impacts of transporting products and

other goods and materials for the organization's operations, and

transporting members of the workforce

Total environmental protection expenditures and investments by

type

Percentage of new suppliers that were screened using

environmental criteria

Number of grievances about environmental impacts filed,

addressed, and resolved through formal grievance mechanisms

Disclosures on Management Approach

Total number and rates of new employee hires and employee

turnover by age group, gender, and region

Benefits provided to full-time employees that are not provided

to temporary or part time employees, by significant locations of

operation

Return to work and retention rates after parental leave, by

gender

Minimum notice periods regarding operational changes,

including whether these are specified in collective agreements

Percentage of total workforce represented in formal joint

management-worker health and safety committees that help

monitor and advise on occupational health and safety programs

Type of injury and rates of injury, occupational diseases, lost

days, and absenteeism, and total number of work related

fatalities, by region and by gender

Workers with high incidence or high risk of diseases related to

their occupation

Average hours of training per year per employee by gender, and

by employee category

Programs for skills management and lifelong learning that

support the continued employability of employees and assist

them in managing career endings

Percentage of employees receiving regular performance and

career development reviews, by gender and by employee

category

Percentage of new suppliers that were screened using labor

practices criteria

Number of grievances about labor practices filed, addressed, and

resolved through formal grievance mechanisms

Total hours of employee training on human rights policies or

procedures concerning aspects of human rights that are relevant

to operations, including the percentage of employees trained

Total number of incidents of discrimination and corrective

actions taken

Operations and suppliers identified in which the right to exercise

freedom of association and collective bargaining may be

violated or at significant risk, and measures taken to support

these rights

Operations and suppliers identified as having significant risk for

incidents of child labor, and measures taken to contribute to the

effective abolition of child labor

Operations and suppliers identified as having significant risk for

incidents of forced or compulsory labor, and measures to

contribute to the elimination of all forms of forced or

compulsory labor

Total number and percentage of operations that have been

subject to human rights reviews or impact assessments

Percentage of new suppliers that were screened using human

rights criteria

Significant actual and potential negative human rights impacts in

the supply chain and actions taken

Number of grievances about human rights impacts filed,

addressed, and resolved through formal grievance mechanisms

Total number and percentage of operations assessed for risks

related to corruption and the significant risks identified

Communication and training on anti-corruption policies and

procedures

Confirmed incidents of corruption and actions taken

Total value of political contributions by country and

recipient/beneficiary

Total number of legal actions for anti-competitive behavior,

anti-trust, and monopoly practices and their outcomes

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with laws and

regulations

Percentage of new suppliers that were screened using criteria for

impacts on society

Number of grievances about impacts on society filed, addressed,

and resolved through formal grievance mechanisms

Disclosures on Management Approach

Percentage of significant product and service categories for

which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations

and voluntary codes concerning the health and safety impacts of

products and services during their life cycle, by type of outcomes

Type of product and service information required by the

organization's procedures for product and service information

and labeling, and percentage of significant product and service

categories subject to such information requirements

Total number of incidents of non-compliance with regulations

and voluntary codes concerning product and service information

and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

Total number of incidents of non-compliance with regulations

and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship, by type of

outcomes

Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data

Monetary value of significant fines for noncompliance with laws

and regulations concerning the provision and use of products

and services

Environm

entalLab

or Practices and

Decent W

ork

Hum

an Rig

htsSo

cietyPro

duct R

espo

nsibility

Econo

mic

MSI are currently using environmental refrigerants

and does not using the R12 refrigerant or other traditional refrigerants.

56

Annex 3. Independent Verification Statement

5

8

20

10、

48~50、

53~58

9

10、

73~79

62

73

38

36

40

40

33、34

39、43

43

═

41

36

38

42

42

37、62

17

44

47

47

53

55

47

50

59

61

61

50

65

17

48

48

48

49

49

48

20

64~66

64~66

17

48

17、48

16

18

18

65~67

16

48

31

35

18、36

69

18

68

18

CEO's Commitment

1.2 Financial Performance

1.7 Risk Management

1.2 Financial Performance

3.2 Employee rights

3.4 Employee Welfare

1.2 Financial Performance

1.2 Financial Performance

6.2 Public Welfare Service

6.3 Donation with Love

4.2 Supplier Management

6.2 Public Welfare Service

2.4 Environmental Performance

2.2 Green Product-Packaging Materials

2.4 Environmental Performance

2.4 Environmental Performance

2.2 Green Product

2.4 Environmental Performance

2.5 Water Footprint

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.6 Greenhouse Gas

2.4 Environmental

Performance

2.2 Green Product

2.4 Environmental

Performance

2.4 Environmental

Performance

2.4 Environmental

Performance

2.3 Green Management

4.2 Supplier Management

1.4 Corporate Governance

3.1 Employees hired

3.1 Employees hired

3.1 Employees hired

3.4 Employee Welfare

3.5 Healthy Workplace

3.1 Employees hired

3.2 Employee rights

3.6 Safety and Health

3.6 Safety and Health

3.6 Safety and Health

3.3 Employee Development

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

3.2 Employee rights

1.6 System Certification

4.2 Supplier Management

4.2 Supplier Management

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

3.2 Employee rights

1.4 Corporate Governance

1.4 Corporate Governance

1.4 Corporate Governance

4.2 Supplier Management

4.3 Contractor Management

1.4 Corporate Governance

3.2 Employee rights

2.2 Green Product

2.2 Green Product

1.4 Corporate Governance

2.3 Green Management

5.2 Post-Delivery Service

1.4 Corporate Governance

5.1 Service

Management System

1.4 Corporate Governance

Category Material Aspects G4 Guidelines Page CSR Section

G4-DMA

Economic

Performance

Indirect

Economic

Impacts

G4-DMA

Materials

Energy

Water

Emissions

Effluents

and Waste

Products and

Services

Compliance

Transport

Overall

Supplier

Environmental

Assessment

Environmental

Grievance

Mechanisms

G4-DMA

Employment

Occupational

Health

and Safety

Training and

Education

Supplier

Assessment

for Labor

Practices

Labor Practices

Grievance

Mechanisms

Investment

Non-

discrimination

Freedom of

Association and

Collective

Bargaining

Child Labor

Forced or

Compulsory

Labor

Assessment

Supplier

Human Rights

Assessment

Human Rights

Grievance

Mechanisms

Anti-corruption

Public Policy

Anti-competitive

Behavior

Compliance

Supplier

Assessment for

Impacts on

Society

Grievance

Mechanisms for

Impacts on

Society

G4-DMA

Customer

Health and

Safety

Product and

Service Labeling

Marketing

communications

Customer Privacy

Compliance

G4-EC1

G4-EC2

G4-EC3

G4-EC4

G4-EC7

G4-EC8

G4-EN2

G4-EN3

G4-EN5

G4-EN7

G4-EN8

G4-EN10

G4-EN15

G4-EN16

G4-EN18

G4-EN20

G4-EN23

G4-EN24

G4-EN25

G4-EN28

G4-EN29

G4-EN30

G4-EN31

G4-EN32

G4-EN34

G4-LA1

G4-LA2

G4-LA3

G4-LA4

G4-LA5

G4-LA6

G4-LA7

G4-LA9

G4-LA10

G4-LA11

G4-LA14

G4-LA16

G4-HR2

G4-HR3

G4-HR4

G4-HR5

G4-HR6

G4-HR9

G4-HR10

G4-HR11

G4-HR12

G4-SO3

G4-SO4

G4-SO5

G4-SO6

G4-SO7

G4-SO8

G4-SO9

G4-SO11

G4-PR1

G4-PR2

G4-PR3

G4-PR4

G4-PR5

G4-PR7

G4-PR8

G4-PR9

Disclosures on Management Approach

Direct economic value generated and distributed

Financial implications and other risks and opportunities for the

organization's activities due to climate change

Coverage of the organization's defined benefit plan obligation

Financial assistance received from government

Development and impact of infrastructure investments and

services supported

Significant indirect economic impacts, including the extent of

impacts

Disclosures on Management Approach

Percentage of materials used that are recycled input materials

Energy consumption within the organization

Energy intensity

Reductions in energy requirements of products and services

Total water withdrawal by source

Percentage and total volume of water recycled and reused

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Greenhouse gas (GHG) emissions intensity

Emissions of ozone-depleting substances (ODS)

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of transported, imported, exported, or

treated waste deemed hazardous under the terms of the Basel

Convention 2 Annex I, II, III, and VIII, and percentage of

transported waste shipped internationally

Percentage of products sold and their packaging materials that

are reclaimed by category

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with environmental

laws and regulations

Significant environmental impacts of transporting products and

other goods and materials for the organization's operations, and

transporting members of the workforce

Total environmental protection expenditures and investments by

type

Percentage of new suppliers that were screened using

environmental criteria

Number of grievances about environmental impacts filed,

addressed, and resolved through formal grievance mechanisms

Disclosures on Management Approach

Total number and rates of new employee hires and employee

turnover by age group, gender, and region

Benefits provided to full-time employees that are not provided

to temporary or part time employees, by significant locations of

operation

Return to work and retention rates after parental leave, by

gender

Minimum notice periods regarding operational changes,

including whether these are specified in collective agreements

Percentage of total workforce represented in formal joint

management-worker health and safety committees that help

monitor and advise on occupational health and safety programs

Type of injury and rates of injury, occupational diseases, lost

days, and absenteeism, and total number of work related

fatalities, by region and by gender

Workers with high incidence or high risk of diseases related to

their occupation

Average hours of training per year per employee by gender, and

by employee category

Programs for skills management and lifelong learning that

support the continued employability of employees and assist

them in managing career endings

Percentage of employees receiving regular performance and

career development reviews, by gender and by employee

category

Percentage of new suppliers that were screened using labor

practices criteria

Number of grievances about labor practices filed, addressed, and

resolved through formal grievance mechanisms

Total hours of employee training on human rights policies or

procedures concerning aspects of human rights that are relevant

to operations, including the percentage of employees trained

Total number of incidents of discrimination and corrective

actions taken

Operations and suppliers identified in which the right to exercise

freedom of association and collective bargaining may be

violated or at significant risk, and measures taken to support

these rights

Operations and suppliers identified as having significant risk for

incidents of child labor, and measures taken to contribute to the

effective abolition of child labor

Operations and suppliers identified as having significant risk for

incidents of forced or compulsory labor, and measures to

contribute to the elimination of all forms of forced or

compulsory labor

Total number and percentage of operations that have been

subject to human rights reviews or impact assessments

Percentage of new suppliers that were screened using human

rights criteria

Significant actual and potential negative human rights impacts in

the supply chain and actions taken

Number of grievances about human rights impacts filed,

addressed, and resolved through formal grievance mechanisms

Total number and percentage of operations assessed for risks

related to corruption and the significant risks identified

Communication and training on anti-corruption policies and

procedures

Confirmed incidents of corruption and actions taken

Total value of political contributions by country and

recipient/beneficiary

Total number of legal actions for anti-competitive behavior,

anti-trust, and monopoly practices and their outcomes

Monetary value of significant fines and total number of

non-monetary sanctions for noncompliance with laws and

regulations

Percentage of new suppliers that were screened using criteria for

impacts on society

Number of grievances about impacts on society filed, addressed,

and resolved through formal grievance mechanisms

Disclosures on Management Approach

Percentage of significant product and service categories for

which health and safety impacts are assessed for improvement

Total number of incidents of non-compliance with regulations

and voluntary codes concerning the health and safety impacts of

products and services during their life cycle, by type of outcomes

Type of product and service information required by the

organization's procedures for product and service information

and labeling, and percentage of significant product and service

categories subject to such information requirements

Total number of incidents of non-compliance with regulations

and voluntary codes concerning product and service information

and labeling, by type of outcomes

Results of surveys measuring customer satisfaction

Total number of incidents of non-compliance with regulations

and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship, by type of

outcomes

Total number of substantiated complaints regarding breaches of

customer privacy and losses of customer data

Monetary value of significant fines for noncompliance with laws

and regulations concerning the provision and use of products

and services

Environm

entalLab

or Practices and

Decent W

ork

Hum

an Rig

htsSo

cietyPro

duct R

espo

nsibility

Econo

mic

MSI are currently using environmental refrigerants

and does not using the R12 refrigerant or other traditional refrigerants.

57

No.69, Lide St., Zhonghe Dist., New Taipei City 235, Taiwan(R.O.C.) / tel:886-2-3234-5599 / fax:886-2-3234-5488 / www.msi.com