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Our Mission çTo Provide innovative, clean and energy-efficient solutions for a better tomorrowÊ

Corporate Culture Strive for change, and pursue sustainability Quality

Customer Satisfaction

Teamwork

Agility Innovation

Quality Consistently deliver superior performance and pursue improvement all the time

Innovation Create new ideas and take them to success effectively

Customer Satisfaction Anticipate customer needs and exceed expectations

Teamwork Fully leverage global value networks and collaborate to achieve mutual goals

Agility Identify emerging trends and act quickly to capture new opportunities


Delta Electronics (Thailand) Public Company Limited

2

Message from the Board of Directors Delta Electronics (Thailand) (çDETé) has reported a lower operating profit in 2011 as compared to previous year. This is largely due to the high inventory provisions of the photovoltaic (PV) inverters resulting from government of many countries cutting back on spending and subsidies. Nevertheless, Sales revenue has grown by 7.6% to Baht 38,434 million compared to 2010. Healthy growths are seen in our new businesses while our ODM businesses remain robust. For instance, Deltaûs recently released on-board charger for Electric Vehicle and Hybrid Electric Vehicle (EV/HEV) has already achieved market leading standard and several major European car makers have expressed their keen interest with follow-up audits in DET factory. Therefore, instead of succumbing to the volatile economic situation in USA, Europe and Japan, DET automotive business can look forward to embracing a lot of new opportunities in those countries with our new products and market presence. However, power supplies for high end servers and storage products are expected to be the key drivers for ODM business segment in 2012 again in light of the excellent business management of our global ODM accounts supported by a stronger German design team. With regard to DETûs standard industrial products business, global PV inverter market growth will remain uncertain owing to cautious government and consumer spending in 2012. However, with wider range of new Solivia products like the mini central inverter and successful sales penetrations into India, Southeast Asia and USA, DETûs Solivia PV invertersû profitability will improve. As for our wind turbine converters, continuing investment will be expedited in tandem with our first major customer who will be gaining significant momentum in the market. The management and the Board of Directors remain committed in growing our sales revenue by expanding our market coverage in many regions of the world and by the regular introduction of many new products. Our core businesses are still in datacenter, telecommunication, automotive, component, and alternative energies with focus in energy savings and environment friendly products and processes. Based on European standard, our strong R&D team will also keep expanding around the world to provide and support more systems, services, and solution businesses to enhance our profitability and to maintain our global leading position in power management.


Other key DET没s investment for 2012 include alternative green energy businesses and the development of Brazil, Russia and India businesses which have seen very encouraging growth that should continue throughout 2012. Meanwhile, our confidence remains unshaken in Thailand despite of the recent flooding crisis. In conclusion, in spite of the pessimism in 2012 global economy as echoed by world leaders at the World Economic Forum, DET is ready to counter these challenges by accelerating our new products没 Time to Market, investing in new markets to extend our reach and re-align major expense priorities. We strongly believe that DET没s unyielding pursuit for excellence, proactive planning, team work and disciplined execution shall keep us on the right track. Without the support and trust from our shareholders, customers, vendors and employees in DET, the journey will be an arduous one. It is also with this support that DET had won our first regional award - ASEAN Business Award 2011 second position. Together, we will continue to build a stronger foundation for creating businesses that will generate immense value for all of us. The Board of Directors would like to express our heartfelt appreciation for your support.

James Ng Chairman

Henry Shieh President

Annual Report 2011

3


Delta Electronics (Thailand) Public Company Limited

4

Financial Highlights 2009-2011 Unit : Million Baht

Consolidated 2011

Total Assets 29,884 Total Liabilities 10,024 Paid-Up Capital 1,247 Total Shareholders没 Equity 19,859 Sales Revenues 38,434 Total Revenues 39,150 Cost of Sales 29,392 Gross Profit 9,041 Selling & Admin expense 6,448 Operating Profit 2,593 Net Profit 2,864 Unit : (%) Gross Profit Margin 23.52% Operating Profit Margin 6.75% Net Profit Per total Revenues 7.32% Return On Equity 14.63% Return On Assets 9.63% Unit : Baht EPS 2.30 Dividend Per Share 1.20* Book Value Per Share 15.92 * Pending approval from shareholders没 meeting

2010

The Company Only 2009

2011

2009

29,611 10,313 1,247 19,298 35,730 36,203 26,217 9,513 5,560 3,953 4,180

27,085 9,437 1,247 17,648 26,995 27,264 19,910 7,084 4,634 2,451 2,190

26,290 5,103 1,247 21,187 26,296 26,843 19,915 6,381 3,355 3,026 3,476

24,716 4,884 1,247 19,832 24,205 24,322 18,030 6,175 2,981 3,194 3,297

22,815 4,409 1,247 18,406 17,500 17,663 12,636 4,864 2,387 2,478 2,516

26.63% 11.06% 11.55% 22.63% 14.75%

26.24% 9.08% 8.03% 12.70% 8.12%

24.27% 11.51% 12.95% 16.95% 13.63%

25.51% 13.20% 13.55% 17.24% 13.87%

27.80% 14.16% 14.24% 14.11% 11.40%

3.33 1.70 15.47

1.76 1.50 14.15

2.79 1.20* 16.99

2.64 1.70 15.90

2.02 1.50 14.76

Sales Revenues

Gross Profit vs Operating Profit

Million Baht

Million Baht 9,513

10,000

50,000 40,000

35,730

38,434

8,000

9,041

7,084

6,000

26,995

30,000

2010

4,000 20,000

3,953 2,593

2,451

2,000 10,000

0 2009

0 2009

2010

2011

Gross Profit Margin vs Operating Profit Margin % 30%

2011

Operating Profit

EPS vs ROE %

Baht 26.2%

26.6%

23.5%

40%

4 3.33

30%

3

20%

10%

2010

Gross Profit

2.30 9.1%

11.1%

2

1.76

1

12.7%

20%

22.6%

6.7%

0%

14.6%

0%

0 2009

Gross Profit Margin

2010

2011

Operating Profit Margin

10%

2009

2010

EPS

2011

ROE


Nature of Business The Company is a manufacturer and exporter of power supplies and electronics equipment and parts. At present, The Company has 2 main plants in Thailand, one is in Bangpoo Industrial Estate, Samutprakarn and the other plant is in Wellgrow Industrial Estate, Chachoengsao. The oversea plants now are in India (located in Rudrapur, New Delhi and Pondicherry) and Slovakia in Dubnica nad Vahom. The Company currently divides its products into 5 main groups as follows; 1. Pan PSBG Product Group (Power Supply) which can be further divided down into 3 sub groups. 1.1 Mobile Power including adaptor for boardband, printing, game, industrial and power tools 1.2 Computer & Networking Power i.e. storage, server and networking. 1.3 DC-DC converter 2. DES Product Group which offers high end custom designed power supplies for information technology, telecommunications, industrial application and solar inverter etc. 3. IESBG Product Group including Telecom Power Solutions (TPS) 4. FMBG Product Group including Cooling Fan 5. CPBG Product Group (Electronic Components) including EMI filter and Solenoid (Please find further product details in the section of Product Profiles) Shareholding structure of Delta Electronics (Thailand) (As of 31 December 2011)

Deltron Holding Ltd 27.67% Delta Electronics (Thailand) Plc

8.63% Delta Electronics, Inc 94.0% Delta International Holding Ltd

5.54% 15.39%

According to the above shareholding structure, Deltron Holding Ltd. is the Company没s major shareholder. They also have invested in Delta Electronics, Inc. (DEI) and Delta International Holding Ltd., both of which are engaged in the manufacturing and sale of electronic components with main production bases in Taiwan and China. Although some of the products being manufactured by Delta Electronics, Inc. are of the same types as the Company没s, the clienteles are not the same as the main target markets of the Company. For this reason, the products manufactured by companies under Delta Electronics, Inc.没s group and Delta Thailand do not directly compete with each other. Revenues Structure of the Company and its subsidiaries is as follows. Product Group Pan PSBG Products (Power Supply) - Mobile Power - Computer & Networking Power - DC-DC converter DES Products - CD Power Supply - OEM Power Supply - Solar Inverter IESBG Products (Telecom Power Solutions) FMBG Products (Cooling Fan) CPBG Products (Electronic Components) Others Total Sales Revenues

2011 Revenue 11,480 4,090 3,040 4,351 11,847 7,651 3,282 913 7,446 3,185 1,885 2,592 38,434

% 29.9% 10.6% 7.9% 11.3% 30.8% 19.9% 8.5% 2.4% 19.4% 8.3% 4.9% 6.7% 100.0%

2010 Revenue 8,991 3,868 1,451 3,672 12,670 7,222 3,002 2,446 6,237 3,277 1,794 2,760 35,730

% 25.2% 10.8% 4.1% 10.3% 35.5% 20.2% 8.4% 6.8% 17.5% 9.2% 5.0% 7.7% 100.0%

Unit : Million Baht 2009 Revenue % 6,853 25.4% 3,436 12.7% 1,293 4.8% 2,125 7.9% 8,082 29.9% 5,534 20.5% 2,129 7.9% 419 1.6% 7,199 26.7% 2,389 8.8% 1,459 5.4% 1,013 3.8% 26,995 100.0%

Remark: Please see the section of Management Discussion and Analysis for further details

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

Product Profile Pan PSBG (Power Supply) Power supply is an integrated circuit system which provides stable direct current (DC) power supply from alternate current (AC) voltage to electronic equipment. Delta没s switching power supplies provide power ranging up to 7,200W per power module, with efficiency of over 90% and power density of up to 25W per inch3. Such capabilities are obtained through state-of-the-art circuits and advanced technologies such as ASIC, hybrid circuits and thin film. Products of this group are now mainly divided into 3 sub groups as follows. Mobile Power

6

Computer & Networking

DC-DC converter

Mobile Power includes adapter for boardband, printing, game, industrial and power tools. Delta is one of the world没s largest producers of AC/DC adapters for portable computers and other external power source applications. The use of ASIC, hybrid circuits, and thin film technology allows Delta to produce adapters with high power efficiency and high power density in a very compact size.

This group comprises mainly storage, server, networking, workstation and other high voltage power supplies. Delta没s switching power supplies provide power ranging up to 7,200W per power module and power density of up to 25W/inch3. These products are modular, redundant, hot swappable, and provide universal input power systems for high reliability.

Delta offers high power density DC-DC converters of up to 700W. Using high switching frequency, hybrid circuit, chip-on-board and surface mounting technologies. Delta also offers high efficiency VRMs (Voltage Regulated Module) and power module for IT and telecommunication equipment. Its main application is to supply the stable voltage to micro processor that generally generates unstable load (Dynamic load) while being operated.


DES Products Delta Energy Systems (DES) product group is generally composed of custom designed products for information technology, telecommunications, industrial applications, medical industries and solar power system. As technology leader, our customized products are packed with innovative technologies. Owing to our possession of ample power supply design experiences for years, DES offers a complete range of high power density customized power supply, for customers including Cisco, Nokia Siemens, Ericsson, Lucent, HPQ, Phoenix, Hitachi, IBM, Linde, Oracle, Perkin Elmer, Google, Facebook and etc. DES products are now divided into 5 main sub groups as follows. Information Technology

Solar Power

Telecommunication

Industrial Application

Medical Industry

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

IESBG Products IESBG group primarily includes the Telecom Power Solutions (TPS) which are widely used in powering up telecom and data networks. With its high reliability and class leading efficiency offerings, Delta is a leading provider of telecom power systems for the telecommunications industry. TPS product line comprises all the components used in telecommunication power system, i.e. AC/DC rectifiers, DC/DC converters, DC/AC inverters, Power System controllers, Shelves and rack mounts and the Indoor and Outdoor cabinets to house these components for professional use. Depending on the customer environment, IESBG provides solutions both for Indoor as well as outdoor applications comprising of small to bulk power requirements. Delta TPS outdoor solutions are highly customized and range from IP43-IP56 class of environment protection against dust and water. Delta provides DC and AC backup power systems in easy to install and operate configurations that are built around customers needs. Delta没s innovative and advanced hybrid solutions help in OPEX saving for difficult AC utilities and off-grid sites by adding renewable energy and efficient energy management with the controller.

8

EMI Filter

CPBG Products Electromagnetic Interference (EMI) Filter is an electronic component used in electronic and electrical products. The function of EMI filter is to reduce noise and interference which pass through electronic and electrical products. EMI filter has been used in various industries. Delta has produced high quality, dependable EMI filters for power supplies, networking, medical equipment and many other tools used throughout the world. Our current products cover IEC inlet filters with a maximum of 20A, chassis mounting filters with maximum of 60A and three-phase filters with maximum of 600A/520VAC. Our mass produced three-phase filters are extensively used in AC motor drives and machine tool applications. We are also readying the designs and production of high frequency telecom & networking products. The major customers are Philips, Sony, Apple, Panasonic, Fagor, BSH, Daikin, Otis, Mitsubishi, Hitachi and etc


Solenoid valve

CPBG Products (cont没d) Solenoid valve is one of the electronic components mainly used in electrical automatic controller such as electric valve, electric lock and etc. The solenoid valves are also applied in many industries, thus the customers are varied. Now Company provides a flexible production facility and the consistent good quality. Product line includes Solenoid Valves, Open Frame Solenoids, Tubular Solenoids, Latching Solenoids and Lamination Series Solenoids which can be widely applied in home appliances, automotive, consumer products and Industrial relatives.

FMBG Products Cooling fans are designed to help remove heat from the high speed electronic system. These cooling fans can be categorized into many types such as base fan, blower and fan tray. Each fan design has its own characteristics and application that are derived solely from the customer没s specific needs. Most of the cooling fan没s customers are the reputable world class producers in the electronic industry.

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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Research and Development Over 680 engineers world-wide are employed in Delta Thailand没s R&D centers located in Thailand, Germany, Switzerland, Romania, Scotland, USA, India, and China. An excellent combination of knowledge, technology and productivity is achieved with regular staff exchange, and technology transfer between the R&D centers.

8.9%

5.2%

9.3%

40&45 (&3."/:

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56$40/ 64" ";

(63("0/ */%*"

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9.1%

11.1% 6.8%

During a difficult year, Delta Thailand has sustained his R&D effort to a healthy level, both for its core business and new businesses. Beside specific technology seminars and trainings with participants from different locations we also have enabled in our R&D locations job rotation during the design of products, thus allowing to increase further the flexibility and productivity in design.

Our focus was hereby to design on cost, on schedule and on specification both standard and customer-specific power supply solutions. Our products are always designed to be forwardlooking and competitive, while meeting the customer没s needs. Thus we are able to maintain our leadership in the technology of our current products.

Current technologies Left: LLC Converter: The LLC converter represents a highly-efficient DC/DC converter for various applications. Characteristic LLC voltage transformation over variable frequency and with different load intensities as complex parameters Right: Increasing efficiency: The main factors which determine the value of devices and equipment are the costs, development time and efficiency, as well as the way they all interact. This graph shows not only how economically the products generate electricity, but also that, over time, the devices become more and more efficient.


Innovative concepts for products such as server and storage applications

200kW Central Inverter

Our strength is converting market opportunities into new, flourishing fields of operation. In addition to our traditional business sectors of IT, telecommunications, solar inverter, as well as industrial application, we permanently invest in new business areas. This ensures our future position in the emerging market of electric vehicles and the ever growing wind-power sector. This is how we play our part in ensuring energy security which deals with the environment and resources in eco-friendly ways.

Automotive Products

Power solutions for electric vehicles In 2011, DET has continued to invest heavily in the development of electric vehicle power electronics. By this we support the quick and efficient charging of high voltage batteries, internal power supply distribution, and powertrain traction needs for upcoming pure EV and Plug-in Hybrid car models. Our primary product focus was hereby on On-Board Chargers & DC-DC Converters. The next generation developments of On-Board Chargers and DC-DC Converters have been started using customer driven specifications. New design considerations include smart grid communication (PLC: Power Line Communication) in the On-Board Charger and compact integrated designs for the DCDC converter.

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

12

2 MW Wind Power Inverter

Power solutions for Wind Energy Generation Owing to the speedy development of energy generation by onshore and offshore wind, hydro and solar power systems, we are reaching the goal to harmonize the needs of human beings with nature. We have taken on this global challenge to contribute to an efficient, regenerative energy production with the delivery of specially designed systems. High performance converters already today play a key role in this context and they are being augmented by newly developed medium voltage converters. DET customers benefit from the innovative results of a globally cooperating research, internationally located and networked production facilities and not least from our experience in high power products.

Awards of 2011

Dr. Surin Pitsuwan, Secretary General of ASEAN, handing the award çASEAN Business Award 2011é Runner-up position in Innovation category for large companies to Mr. Henry Shieh, President of the Company

Delta Thailand, by Mr. Ausorn Muttaraid, Executive Director, received çPrime Ministerûs Export Award 2011é in class of Design Excellence from Ms. Yingluck Shinawatra, Prime Minister, September 19, 2011

Mr. Anusorn Muttaraid (Executive Director of Company) received Demark Award from Mr. Siriwat Kajonprasart Deputy minister of Commerce in Bangkok International House Ware Fair 2011, at BITEC Bangna, October 18, 2011

Delta Thailandûs Management is launching a Green Design Award to employees aimed at giving recognition to product designs that incorporate the Companyûs mission çTo Provide Innovative, Clean, and Efficient Energy Solutions for a Better Tomorrowé


2012 Industry Outlook Market Outlook for Power Supplies After a strong year in 2010 the word market of merchant power supplies is estimated to have remained steady in 2011 and IMS Research forecasts that the market will grow by 6.9% to USD 23.3 billion in 2012. The Telecom/Datacom and the Computer/ Office sectors are the largest application sectors in 2011/2012. The demand in these sectors is predicted to remain robust due to a upgrade of networks and an ongoing growth in broadband demand. The highest growth is in the small lighting market driven by the trend towards LED lighting. Geographically, Asia continues are to be the largest and fastest growing market for power supplies, followed by Americas and EMEA regions. The 2011-2012 revenue growth in the Asia Pacific region is predicted to be about 8.44%, followed by Americas at about 4.85% and EMEA (Europe, Middle East and Africa) region at about 4.21%. The reasons for the strong growth in Asia is the on-going shift of production of electrical equipment and the Asian dominance of high-growth consumer and computing sectors. According to IMS Research, Delta Group maintained its position as the largest supplier to the global market. Its share has grown 1.2% in 2010, from a share of 16.8% in 2009 to 18.0%. Emerson, the second largest supplier has according to IMS Research a market share of 9.6%. Delta Group is market leader in all three regional markets, Asia, Americas and EMEA.

The World Market for Merchant Power Supplies

30,000 25,000 20,000 15,000 10,000 5,000 0

23,266

24,859

19,627

21,754

2010

2011

2012

2013

Revenue : (USDm); Source : IMS Research 2011

Expected Power Supply Growth by Sector 2011-2012 6.68%

Consumer

22.54%

Lighting Mobile Communications Computer & Office

10.51% 8.85%

Military & Aerospace Medical Industrial Cellular Infrastructure Datacom/Telecom

0%

4.91% 6.40% 6.75% 3.42% 5.09% 5% 10%

15%

20%

25%

CAGR (%) ; Source : IMS RESEARCH 2011

Geographical Revenue Growth 2011-2012

EMEA Americas

4.21% 4.85% 8.44%

Asia

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% CAGR (%); Source : IMS Research 2011

Market Outlook for Solar Inverters A Solar Inverter is the heart of the photovoltaic system. It converts the generated direct current from the solar modules to alternative current to feed the energy in the public grid.The inverter ensures with maximum power point tracking to extract the maximum power out of the solar modules.

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

14

The market for solar inverters is correlated directly with the worldwide market for photovoltaic systems. The development of the photovoltaic (PV) market is to a large extent dependent on the political framework of any given country. Support mechanisms are defined in national laws. According to the European Photovoltaic Industry Association (EPIA) two basic scenarios are possible for the amount of installations in future: A moderate scenario that is based on a business as usual market behaviour and a policy-driven scenario based on a strong political will consider PV as a major power source for the coming years. The chart shows the two growth scenarios in Gigawatts 2010 2011e 2012e 2013e (GW) installed in the years 2010 to 2013 worldwide predicted by EPIA in May 2011. To forecast the installations for the photovoltaic market is very difficult, as the market development depends on various factors such as policies in different countries, the world economic situation, the development of raw material costs, production capacities just to name a few factors. EPIA estimated in its 2009 report a policy driven scenario for 2010 of 15 GW new installed PV systems and in fact this already optimistic scenario was topped by the market and resulted in 16.6 GW of installations in 2010. According to the Quarterly Market Analysis from IMS Research, the largest market for Solar Inverters in 2012 will be EMEA with 53% of the worldwide inverter revenue followed by Asia and Americas. In 2010 and 2011, Germany and Italy were the largest markets, but it is predicted that in future the German market will decrease due to changes of the feed-in tarifs from the German government but other emerging PV markets such as India and the USA will grow in importance. After the boom year 2010, it turned out that 2011 was a much more difficult year for all players in the photovoltaic industry. Over capacities and high inventories at the beginning of 2011 led to a slow start and decrease in prices for PV system components in 2011. Big players like Solyndra and Evergreen in the USA or Solar Millenium and Solon went bankrupt. For 2012, it is estimated that the already started consolidation in the market will continue. Today there are over 100 manufacturers of PV Inverters on the market. The consolidation already started as Bosch bought the Inverter Manufacturer, Voltwerk, and LDK aquired the German company Sunways. The four biggest inverter manufacturers are according to IMS Reseach in 2010, SMA, a German company, with a market share of 32%, Power One with a marketshare of 10%, Siemens with a market share of 5% and Kaco with a share of 3%.


2012 Business Directions Segment 1: Global ODM Despite having diversified into many other key businesses, Delta Thailand (DET) has maintained strong business and technological positions in the ODM business. In the IT category, DET has further established its position with leading market players such as IBM, Cisco, Google and Stanley Black & Decker in high end power supplies. The product applications range from computer servers, communication equipments, battery chargers to data centersû Applications-storage. Due to uncertain economic situation in 2012, this sectorûs growth could be affected. However, several new products were launched in 2011 therefore the impact is expected to be minimal. More new battery chargers for Electrical Vehicles (EV) will also be introduced in 2012. Several other global automobile manufacturers are already auditing DET facilities and liaising with the sales team. The momentum is good and DET is expected to grow significantly in this area with continuing commitment to R&D and services. As for Medical and Industrial products, new project wins from major medical customers and revenue growth for industrial products introduced in 2011 are encouraging signs for 2012. Although Industrial products may be susceptible to economic situation, Medical products are typically less affected. A lot of DET ODM customers are also opening up to global sources instead of regional sources, thus, 2012 still have many attractive opportunities for DET. Continuing investment in R&D and manufacturing capabilities which are the key components of ODM businesses should see DET securing and growing its ODM businesses at a healthy pace for 2012.

Segment 2: Project and Solutions Business Telecom Power Solutions Over the past few years, energy costs of DET Indiaûs Telecom Power Systems customers have increased as a percentage of telecom revenues. This has become a key issue for Indiaûs telecom industry. To tackle this increase in customersû operating expenditure, telecom tower operators are looking to explore energy-efficient solutions in their network. As 40% of the existing telecom towers are in regions experiencing power shortages, costs increase are seen on account of Diesel Generators (DG) required for operating equipment and towers, and for cooling requirements. These tower companies are moving to fixed power cost models to minimize disputes and pilferage while providing impetus on energy saving initiatives. Considering such paradigm shift and in line with Deltaûs mission of providing clean and energy-efficient solutions, Indiaûs team will be focusing on the following solutions for 2012: i) Renewable Energy Solutions; ii) DG-Battery Hybrid Solutions; iii) Cooling Solutions; iv) Remote Management Solutions. DET India will also look to business models such as OPEX Business Model and specialized energy management companiesû structure known as Renewable Energy Services Company (RESCO) to further enhance DET solutionsû efficiencies in energy cost management.

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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The Network Operations Centre (NOC) computes energy consumption information at TPS customers没 sites and in turn provides the customers with important energy management information and recommendations.

Segment 3: Standard Industrial Products Photovoltaic Solar Inverters The worldwide photovoltaic inverters market is predicted to grow at a moderate pace with growth rates between countries varying significantly. Two events in 2011 are significant in contributing to 2012 PV market growth. Firstly, the tragic event at Fukushima proves that the risk of nuclear energy may outweigh the benefits. Secondly, the significant price decrease for photovoltaic panels will bring solar power closer to the grid-parity level in some countries with high electricity costs (e.g. Germany, Italy). Due to such industry evolution, photovoltaic power is now relying less on government subsidies and starts to become a self-sustaining business. However, 2012 will be marked by overcapacities on the supplier side since production capacities in recent years have ramped up far beyond market demand. Such situation will lead to sharp price competition and consolidation of the fragmented supply base. DET has established growing customer base for its PV inverters under the brand name Solivia in Germany, France, Italy, Benelux, Eastern Europe, India, Australia, Thailand and the USA. From a Germany centric business, the PV industry has evolved into a truly international industry. PV products没 developers and distributors are thus becoming more globally inclined. DET with its international footprint and wide product portfolio will therefore be expecting increasing business opportunities from these global players and foreseeing major result improvement in the next 2 years. Standard Power Supplies DET has introduced several types of Delta branded standard power supplies since mid of 2008. Revenue has since been growing more than 100% year on year. The product types mainly cover DIN Rail (trademarked CliQ) and Panel Mount power supplies. The business strategy is focusing on building Delta brand with DET designed and manufactured products. In addition, the team has been collaborating with big names in the industry for private label products. 2012 will see many more new product types to be introduced and expecting double-digit growth. The uncertain economic situation should have little impact because the products are positioned at a high performance to cost ratio and with diversifying product types and channels.

CliQ II DIN Rail Power Supply


Power solutions for Wind Energy Generation The rapid development and increased requirements of energy generation by onshore and offshore wind turbine as well as hydro turbines require us to not only develop new and highly adaptive converter systems as well as versatile platforms, but also actively participate in the search for efficient future solutions. DET has taken on this global challenge to contribute to an efficient, regenerative energy production with the delivery of specially designed power electronic systems and platforms. High performance converters are already playing a key role in this context and they are being augmented by newly developed medium voltage (MV) converters. DET will be introducing a MV converter platform in 2012 and our customers shall continue to benefit from the innovative results of a closely collaborated global research effort, internationally located and networked production facilities and not least from our experience in high power products. LED Lighting Solution Delta LED street light is an integrated light that uses LEDs as its light source. Delta LEDs are environmentally friendly, lead-free and mercuryfree. Most importantly they offer the best lumen maintenance of any power LED and are available in color temperatures and efficiency configurations that make it simple to create a broad range of outdoor applications. With such innovations in Delta LEDs and a still strong global market growth momentum, DET is confident of significant growth in 2012 as more investments are made in sales and customer services.

Delta LED street light

Segment 4: Consumer Brand Innergie With the rapid increase in consumer mobile devices on the market, Innergie aims to provide Total Energy Solutions for such consumer mobile electronic devices. Innergie are progressively launching full consumer product lines on the market to fulfill all such power needs. These products include high-power solutions for notebooks, mobile power solutions for portable devices, and other power accessories. Innergie没s innovative product lines have garnered many international awards like the Red Dot Design Award, iF Product Design Award, CES Innovation Award, Good Design Award, Universal Design Award and DE-Mark Award. Innergie没s distinctive product identity is fast gaining market acceptance and channels growth in APAC and EMEA regions. 2012 will also see increased focus in developing North America consumer markets while maintaining global growth momentum. PocketCell : rechargeable battery bank

mCube Mini 90 Auto/Air Adaptor

mCube Slim 95

Annual Report 2011

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18

Delta Electronics (Thailand) Public Company Limited

Investment Structure Investment Structure (As of December 31, 2011) Delta Electonics (Thailand) Plc 100% Delta Green Industrial (Thailand) 100% DET Logistics (USA) 100% DET SGP

100% DET International Holding

100% Delta Energy Systems (Singapore)

100% Delta Greentech International Holding

100% Delta Energy Systems (Australia)

100% Delta Greentech (Netherlands) Cooperaties

100% Delta India Electronics 100% Delta Greentech (Netherlands) B.V. 3.8% IP Fund One 100% DET Video Technology 100% Delta Energy Systems (Germany) 100% Delta Renewable Energy Systems (Switzerland) 100% Delta Energy Systems (India) 100% Delta Energy Systems (Slovakia)

100% Delta Greentech Electronics Industry LLC 100% Delta Greentech (USA) Corporation 100% Delta Greentech (Brasil) 100% Delta Greentech (Curitiba) 100% Delta Greentech SGP

100% Delta Electronics Europe

100% Delta Greentech (Hong Kong)

100% Delta Electronics (Slovakia)

8.2% Delta Greentech (China)

100% Delta Energy Systems (Romania) 100% Delta Energy Systems (Arizona)

100% Delta Greentech International (Singapore) 8.2% Delta Power Solutions (India)

100% Delta Energy Systems (Switzerland) 100% Delta Energy Systems (Czech) 100% Delta Energy Systems (Finland) 100% Delta Energy Systems (France) 100% Delta Energy Systems (Italy) 100% Delta Energy Systems (Spain) 100% Delta Energy Systems (Sweden) 100% Delta Energy Systems (Poland) 100% Delta Energy Systems LLC


Company 1. DET International Holding Ltd. 1.1 DET Logistics (USA) Corporation 1.2 IP Fund One, L.P.

1.3 DET Video Technology Ltd.

1.4 Delta Energy Systems (Germany) GmbH

Annual Report 2011

1.4.1 Delta Renewable Energy Systems (Switzerland) AG 1.5 Delta Energy Systems (India) Pvt. Ltd. 1.6 Delta Energy Systems (Slovakia) s.r.o.

Location Scotia Centre, 4th Floor, George Town, Grand Cayman, Cayman Islands 4405 Cushing Parkway Fremont, CA 94538 USA. Tel: +1 510 668 5100 Fax: +1 510 668 0680 C/O 7F, 122 Tun Hua N Rd., Taipei 105 Taiwan Tel: 8862 3518 3999 Fax: 8862 6606 0021 Portcullis, Trust Net, Chambers, Po.Box 3444 Road Town, Tortola, Bristish Virgin Island Tel: 284 494 5296 Fax: 284 494 5283 Coesterweg 45, D-59494 Soest, Germany Tel: +49 2921 987 0 Fax: +49 2921 987 601

Type of Business Business Investment Logistic Service in USA

Investment fund focusing on the investment in innovative software, hardware Business Investment

- Marketing & Sales - R&D

Burgerfeldstrasse 19, 8730 Uznach, R&D Switzerland Tel: +41 55 246 41 14 Fax: +41 55 246 41 16 Plot No. 43, Sector-35, Industrial Estate, Marketing & Sales Gurgaon, Haryana, India 122001 Tel: +91 124 4874900 Fax: +91 124 4874945 Priemyselna ulica 4600/1, SK - 018 41 Marketing & Sales Dubnica nad Vahom, Slovak Republic Tel: +421 42 466 1111 Fax: +421 42 466 1130

Type of product -

-

-

- Power Supply - Solar Inverter - Wind Turbine Power - Other Electronics Products Solar Inverter

Electronics Products

Electronics Products

Type of Stock Common Stock Common Stock

Registered Capital USD 300,000,000 USD 1,000,000

Paid up Capital USD 237,413,329 USD 500,000

% Holding

Common Stock

USD 260,270,000

USD 225,086,683

3.8

Common Stock

USD 100,000

USD 100,000

100

Common Stock

EUR 18,301,000

EUR 18,301,000

100

Common Stock

CHF 500,000

CHF 500,000

100

Common Stock

INR 44,500,000

INR 40,476,020

100

Common Stock

EUR 6,639

EUR 6,639

100

100 100

19


20

Company 1.7 Delta Electronics Europe Ltd

1.8 Delta Electronics (Slovakia) s.r.o

1.9 Delta Energy Systems (Romania) S.R.L.

Location

Type of Business

1 Redwood Court, Peel Park Campus, - Marketing East Kilbride G74 5PF, UK - Providing services & supports Tel: +44 1355 588 888 Fax: +44 1355 588 889 to customers of Delta Group - R&D Priemyselna ulica 4600/1, SK - 018 41 Manufacturing & Sales Dubnica nad Vahom, Slovak Republic Tel: +421 42 466 1111 Fax: +421 42 466 1130

Str.Negru Voda Nr. 2, BI. C4 Sc.A, Suite 14-15. Sect 3, RO-70462 Bucharest, Romania Tel: +40 1 321 3653 Fax: +40 1 322 1644 1.10 Delta Energy Systems c/4400 E. Broadway. Suite 803, Tucson, (Arizona) Inc. Arizona, USA 85711 Tel: +1 520 326 8401 Fax: +1 520 326 8366 1.11 DET SGP Pte Ltd. 4 Kaki Bukit Avenue 1 #05-05 Singapore 417939 Tel: +65 6747 5155 Fax: +65 6744 9228 1.11.1 Delta India Plot No. 43, Sector-35, Industrial Estate, Electronics Pvt. Ltd. Gurgaon, Haryana, India 122001 Tel: +91 124 4874900 Fax: +91 124 4874945

R&D

R&D

Business Investment, Management and Consultancy Service Marketing & Sales

1.12 Delta Greentech Scotia Centre, 4/F, P.O. Box 2804, Business Investment International Holding Ltd. George Town, Grand Cayman, KY1-1112, Cayman Islands 1.12.1 Delta Greentech Zandsteen 15, 2132 MZ Hoofddorp, Business Investment (Netherlands) The Netherlands Cooperaties UA Tel.: +31 20 655 0900 Fax: +31 20 655 0999

Type of product Electronics Products

- Power Supply - Power System - OEM Power Systems - Solar Inverter -

-

-

Delta Electronics (Thailand) Public Company Limited

Type of Stock Common Stock

Registered Capital GBP 1,000,000

Paid up Capital GBP 500,000

Common Stock

EUR 33,980,947

EUR 33,980,947

100

Common Stock

RON 395,200

RON 395,200

100

Common Stock

USD 10

USD 1

100

Common Stock

USD 46,736,460

USD 46,736,460

100

INR 1,650,000,000

INR 1,633,480,000

100

USD 100,000,000

USD 69,051,850

100

EUR 14,544,802

EUR 14,544,802

100

- Telecom Power system Common - UPS Stock - Other Electronics Products Focusing on Telecom Common Power Systems Products Stock Focusing on Telecom Power Systems Products

Common Stock

% Holding

100


Company

Location

1.12.1.1 Delta Greentech (Netherlands) B.V.

Zandsteen 15, 2132 MZ Hoofddorp, The Netherlands Tel.: +31 20 655 0900 Fax: +31 20 655 0999 1.12.1.1.1 Delta Greentech Akaretler, Besiktas/Istanbul at Süleyman Electronics Seba Caddesi No: 48 BJK Plaza B Blok Industry LLC Kat:12, Turkey 1.12.1.1.2 Delta Greentech 701 Brazos Street, Suite 1050 Austin TX 78701 (USA) Corporation USA 1.12.1.1.3 Delta Greentech Rua Almirante Alexandrino, 1130-Bairro (Brasil) S/A Afonso Pena CEP 83040-420, Sao José dos Pinhais - PR, Brasil Tel: +55 41 2141 6363 Fax: +55 41 2141 6300

Annual Report 2011

1.12.1.1.3.1Delta Greentech Rua Almirante Alexandrino, 1130-Bairro (Curitiba) Afonso Pena CEP 83040-420, Sao José dos Pinhais - PR, Brasil 1.12.2 Delta Greentech 4 Kaki Bukit Avenue 1 #05-05 Singapore SGP Pte Ltd. 417939 Tel: +65 6747 5155 Fax: +65 6744 9228 1.12.2.1 Delta Greentech 21st Floor, Prosperity Center, (Hong Kong) Ltd. 25 Chong Yip Street, Kwun Tong, Kowloon, Hong Kong 1.12.2.2 Delta Greentech No 238 Minxia Road, (China) Co.,Ltd. Pudong District Shanghai, China Tel: +86 21 58635678 Fax: +86 21 38983692 1.12.3 Delta Greentech 4 Kaki Bukit Avenue 1 #05-05 Singapore International 417939 (Singapore) Pte. Ltd. Tel: +65 6747 5155 Fax: +65 6744 9228

Type of Business Business Investment

Trading

Type of product

Type of Stock Focusing on Telecom Common Power Systems Products Stock

Registered Capital EUR 14,484,796

Paid up Capital EUR 14,484,796

- Telecom Power Systems Common - UPS Stock

TRY 770,000

TRY 770,000

USD 10,000,000 BRL 16,967,367.74

USD 6,000,000 BRL 16,967,367.74

BRL 1,000

BRL 1,000

100

USD 12,175,470

USD 12,175,470

100

HKD 775,000

-

100

RMB 568,000,000

RMB 568,000,000

8.2

USD 37,153,800

USD 37,153,800

100

Marketing & Sales

- Telecom Power Systems Common - UPS Stock - Marketing & Sales - Power Systems Common - Assembler - UPS Stock - OEM Power Systems - Other Electronics Products Providing Engineering Service to Common Delta Greentech (Brasil) Stock

Business Investment

Trading

- Assembler - Trading Business Investment

-

Common Stock

- Telecom Power Systems Common - Other Electronics Stock Products - Telecom Power Systems Common - Other Electronics Stock Products Common Stock

% Holding

100

100

100 100

21


22

Company

Location

Registered Capital INR 1,700,000,000

Paid up Capital INR 1,665,000,000

Common Stock

USD 250,000

USD 250,000

100

Renewable Energy Products

Common Stock

AUD 200,000

AUD 200,000

100

- Marketing & Sales - R&D

Power Systems

Common Stock

CHF 20,000,000

CHF 20,000,000

100

Marketing & Sales

Power Systems

Common Stock

CZK 8,000,000

CZK 8,000,000

100

Common Stock

EUR 269,100.68

EUR 134,550.34

100

Common Stock

EUR 1,605,000

EUR 1,605,000

100

Common Stock

EUR 100,000

EUR 100,000

100

1.12.3.1 Delta Power Solutions (India) Pvt. Ltd.

- Marketing & Sales - Assembler - R&D

2.

Business Investment & Managment and Consultancy services

2.1

3.

3.1

3.2

3.3

3.4

Plot No. 38, Phase 1, Sector - 5, IIE, SIDCUL Pant Nagar, Rudrapur Uttrakhand-263153, India Tel : +91 05944-309000 Fax: +91 05944-662477 Delta Energy Systems 4 Kaki Bukit Avenue 1 #05-05 Singapore (Singapore) Pte.Ltd. 417939 Tel: +65 6747 5155 Fax: +65 6744 9228 Delta Energy Systems Suite 13, Level 4, 150 Albert Road, (Australia) Pty.Ltd. South Melbourne VIC, Australia Tel: +61 3 8414 8293 Fax: +61 3 9685 7599 Delta Energy Systems Freiburgstrasse 251, CH-3018 Bern-Bümpliz, (Switzerland) AG Switzerland Tel: +41 31 998 5388 Fax: +41 31 998 5485 Delta Energy Systems Litevska 1174/8, 100 00 Praha 10, (Czech Republic), spol. Czech Republic s r.o. Tel: +420 272 019 330 Fax: +420 271 751 799 Delta Energy Systems Juvan Teollisuuskatu 15, PL63 (Finland) Oy FI-02921 Espoo, Finland Tel: +358 9 8496 60 Fax: +358 9 8496 6100 Delta Energy Systems ZI du Bois Chaland2 - 15 rue des Pyrénées, (France) S.A. LISSES, 91056 EVRY CEDEX, France Tel: +33 1 69 77 82 60 Fax: +33 1 64 97 05 77 Delta Energy Systems Via I Maggio 6, IT-40011 Anzola dellûEmilia, (Italy) s.r.l. Italy (BO) Tel: +39 051 733 045 Fax: +39 051 731 838

Type of Business

Delta Electronics (Thailand) Public Company Limited

Marketing

Type of product

Type of Stock - Telecom Power Systems Common - UPS Stock

-

- Marketing & Sales - Assembler

Power Systems

Marketing & Sales

Power Systems

Marketing & Sales

Power Systems

% Holding

100


Company

Location

Type of Business

3.5 Delta Energy Systems (Spain) S.L.

Marketing & Sales

3.6

Marketing & Sales

3.7 3.8

4.

Calle Luis I n Ì 60, Nave 1a, P.I. de Vallecas, E-28031 Madrid, Spain Tel: +34 91 223 7420 Fax: +34 91 332 9038 Delta Energy Systems Annavägen 3, P.O.Box 3096, S-350 33 Växjö, (Sweden) AB Sweden Tel: +46 470 70 68 00 Fax: +46 470 70 68 90 Delta Energy Systems Poleczki 23, Street 02-822 Warsaw, Poland (Poland) Sp.zo.o Tel: +48 22 335 2600 Fax: +48 22 335 2601 Delta Energy Office 401, Vereyskaya Plaza II, Systems LLC Vereyskaya Street 17, 121357, Moscow, Russia Tel: +7 495 644 3240 Fax: +7 495 644 3241 Delta Green Industrial 111 Moo 9, Bangwua, Bangpakong, (Thailand) Co.,Ltd. Chachoengsao, 24180 Thailand Tel: +66 (0) 952 2360

Annual Report 2011

Currency Exchange Rates (Average) : 30 Dec 11 1 BRL = 0.54472 USD 1 CHF = 1.07527 USD 1 HKD = 0.12853 USD 1 INR = 0.01910 USD 1 RUR = 0.03180 USD 1 SEK = 0.14611 USD

Marketing & Sales Marketing & Sales

Type of product Power Systems

Power Systems

Power System Power System

Type of Stock Common Stock

Registered Capital EUR 200,000

Paid up Capital EUR 200,000

Common Stock

SEK 2,010,000

SEK 2,010,000

Common Stock Common Stock

PLN 2,500,000 RUR 30,000

PLN 2,500,000 RUR 30,000

100

THB 200,000,000

THB 60,000,000

100

Manufacturing, Integration, - LED Street light Common Installation, Service and Trading - Solar System Stock - Telecom Power Systems

1 CZK = 0.05176 USD 1 PLN = 0.29412 USD 1 TRY = 0.53476 USD

1 EUR = 1.32000 USD 1 RON = 0.30488 USD

1 GBP = 1.56000 USD 1 RMB = 0.15748 USD

% Holding

100

100

100

23


Delta Electronics (Thailand) Public Company Limited

24

Risk Factors In 2011, there were several vital situations occurred such as sluggish economy in the major regions of the world especially the public debt crisis in Europe, earthquake in Japan, and serious flooding in Thailand which covered the major part of the country including Bangkok and its vicinity. The Company has been well aware of the situations, therefore, assessed impact of those risks and determined measures to counter potential consequences as follows; 1. Risk from the slowdown in the global economy The slowing global economy, as abovementioned, has direct impact on the performance of the Company because Europe and the United States are the major export destinations of the Company which contribute 40% and 20% of total sales in 2011, respectively. This has adversely affected the sales of solar inverter which has its major market in Germany. Since the European debt crisis arisen and the policy of government support on the renewable energy has been changed by lowering the feed-in tariffs rate, the market demand of the product has significantly dropped. To counter the change, the Company looked for new potential markets for this solar inverter such as the United States, India, Thailand and other countries in Asia. In an attempt to attract demand, the Company managed to extend product categories to match each market requirements. The Company still believes that the renewable energy still be a product in demand with strong potential increase in both current and the future. 2.

Foreign Exchange The export businesses have faced one of the major challenges during the past year i.e. the slowdown in world economy. This resulted in a high volatility in main global currencies including US dollar and Euro which directly and significantly affected Thai Baht currency. However, US dollar is still the main currency of the Company of both sales revenues and expenses, this therefore can be considered natural hedge which would partly mitigate the risk. Besides US dollar currency, the Company has some other currencies needed to be managed such as Euro, India Rupee, etc. The Company therefore has continued to put in place a net position hedging policy for all currency exposures to ensure adequate protection from volatile currencies and interest rate. With the favorable global money market in 2011 that facilitated our hedging strategy, it resulted in a foreign exchange gain of approximately Baht 138.6 million. Nevertheless, it should be noted that the Company没s foreign exchange management policy is principally aimed to reduce risk and avoid speculation. However, all in costs are always taken into consideration to ensure that it is justified when comparing to the risks involved.

3.

Raw materials and supply chain The March 11th 2011, Japan earthquake had a serious shock to the global supply chain. However, our Company did not encounter serious impact as we have preventive as well as contingency plan in place. Most of our raw materials are procured through multiple sources and in some cases from multiple countries/locations. We also collaborated with our keys


suppliers on raw materials planning and forecasting. On top of this we also have Consignment Inventory Program with our oversea suppliers which provided us sufficient buffer inventory to keep our operation running smoothly in case of emergency situation. The actual impact to our revenue in Q2-2011 was less than 2%. This was much lower than the originally 7% to 10% anticipated earlier when we first assess the situation. The supply situation was subsequently brought under control toward end Q2 with the good teamwork from our Materials team as well as strong supports from our Customers, Suppliers and R&D resulting in zero impact to our revenue in Q3. The recent serious flooding in Thailand also had a serious impact to both the local as well as the global supply chain. Once again our Company did not encounter serious impact as our Materials team works diligently to execute the contingency plan effectively and efficiently. As a result, we are able to ship out products to our Customers timely. Going forward, 2012 will be a very challenging year in view of the ongoing European debts crisis as well as the high unemployment and slow growth in USA. The uncertainty on how the European crisis can be resolved will definitely add volatility to the market and in turn the overall market supply chain. We will continue monitoring the ongoing economic situation as well as the overall supply market closely and take the necessary preventive and contingency plan that are already in place in order to alleviate our supply chain risk. 4.

Accounts receivable collections. Several natural disasters that occurred in the past year had no direct or significant impact on receivables collections of the Company because most customers do not locate in those areas. In addition, although most products are exported to the United States or European countries where their economies are now not favorable to the business, the Company没s sales team always market with cautious and careful selection of customers. Given incumbent circumstances that likely to become more severe in the coming year, the Company continues closely monitor the global economy and constantly evaluate the customers没 financial position to ensure collection of receivables. The Company continues putting the emphasis in both working system and competent personnel to manage its account receivables. Some of the key personnel have been assigned to station in some of the major business regions in order to closely monitor and effectively support the sales team in those regions. The Company also uses credit insurance service from a world class insurer. They do not only help mitigate potential risks but also provide the up-to-date financial positions of customers to the Company没s credit control team which regularly appraises the financial positions of the major clients before approving credit sales to them. All these actions are believed to help the Company to respond to the rapid changes in the market properly and proactively.

5.

Labor Relations The Company gives priority to labor relations and it put into an action by continuing support various activities arranged by employees and labor union to promote good connection as well as preventing and solving common problems that may arise. The

Annual Report 2011

25


Delta Electronics (Thailand) Public Company Limited

Company established a labor relation committee with joint members from both employers and employees. The meetings generally take place on a monthly basis to listen to problems, find solutions together, and arrange activities to promote labor relations. Not only it helps create a good relationship but it also builds beneficial impact to both employees and organization. Despite various protection arrangements, the Company also has a contingency plan in case of labor dispute that may arise and would lead to protest and strike. In such event, executive officers, chief departments, relevant staff and government agencies are assigned specific responsibilities to help collaborate so as to solve the problem instantaneously. 6.

Investments and financial assistance given to its subsidiaries Investments and financial assistances given to the subsidiaries are generally risk inherent transactions. Risk management practices that the Company adopts are closely monitor and control of treasury, accounts receivable and some other significant financial and administrative activities. The executives of subsidiaries are from time to time gathering at the Company, either for training, meeting or performance review which is regularly done through video conference. Not only efficiency in administration towards the same business direction can be assured, working morale and cooperation among the group are also built up.

7.

Change of business policy by the major shareholders Due to the fact that Delta Electronics Inc., (Taiwan), one of the Company没s major shareholders, and its subsidiaries in China have similar operations and products to those of the Company. This would adversely affect the Company没s operations if the overlapping items are targeted exactly to the same markets. However, the main operation policy is to pull together the advantages of each company in the group to enhance the group and individual companies没 competitiveness, rather than creating an unconstructive competition among the group. In fact, internal competition would not only benefit to no one, but also diminish competitive power to the rivals outside the group. Networking with the major shareholders helps establish a valuable synergy in various areas such as improvement on research potentials and product development, increasing of distribution channels, and better of bargaining power in raw material procurement. Nonetheless, each company in the group still has its own autonomy and its operations are independent from one another Up to now, even some products are quite similar but targeted at different industries or locations and the Company has gained supports from the major shareholders since it inauguration.

26


Capital Structure Registered and paid up share capital (31 December 2011) Type of Equity 1. Registered Share Capital 2. Paid up Capital

No. of Shares 1,259,000,000 1,247,381,614

Par value (Baht) 1 1

Total Value (Baht) 1,259,000,000 1,247,381,614

Top 10 shareholders (As of March 3, 2011) No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Name Citibank Nominees Singapore Pte Ltd-S.A. PBG Clients SG (For Deltron Holding Ltd.) Citibank Nominees Singapore Pte Ltd-S.A. PBG Clients SG (For Delta International Holding Ltd.) Citibank Nominees Singapore Pte Ltd-S.A. PBG Clients SG State Street Bank And Trust Company For London Delta Electronics Inc. USB AG Singapore, Branch-PB Securities Client Custody HSBC (Singapore) Nominees Pte Ltd. Thai NVDR Co.,Ltd. Mr.Paisarn Chatpitak Nortrust Nominees Ltd.

Holding 345,185,420

% 27.67

191,984,450

15.39

186,944,726 73,003,700 69,128,140 53,172,220 26,612,400 23,215,782 12,050,000 10,794,500

14.99 5.85 5.54 4.26 2.13 1.86 0.97 0.87

Holding 345,185,420

% 27.67

191,984,450

15.39

69,128,140

5.54

Major shareholders that are influential the Company没s Management Policy No. 1. 2. 3.

Name Citibank Nominees Singapore Pte Ltd-S.A. PBG Clients SG (For Deltron Holding Ltd.) Citibank Nominees Singapore Pte Ltd-S.A. PBG Clients SG (For Delta International Holding Ltd.) Delta Electronics Inc.

Dividend Policy The Company has a policy to pay dividend at least 30% of its net profits. However, the dividend payout ratio would be subject to change depending on the investment plan and/or other capital requirements the Company may have in the future. The Company没s Board of Directors没 Meeting No. 1/2012 held on February 10, 2012 resolved to pay dividend for the year 2011 at Baht 1.20 per share, representing a payout ratio of 52%. This is subject to the 2012 Annual General Meeting of Shareholders没 approval. (The dividend paid in 2010 was Baht 1.70 per share, representing a payout ratio of 51%). Dividend payment of the subsidiaries would be determined based on the profitability and reinvestment opportunities of each subsidiary. In addition, the relevant laws, regulations, tax and foreign exchange control of the country where the subsidiary is located at will also be taken into consideration for greatest benefits of the Company and shareholders. Annual Report 2011

27


Delta Electronics (Thailand) Public Company Limited

Board of Directors Mr. Ng Kong Meng (James) Position ë Chairman of the Board (Authorized Director) Education / Training ë M. Sc (Electronic Engineering), University of Southampton, UK ë Bachelor Degree in Electrical Engineering, National Taiwan University, Taiwan ë Director Accreditation Program (DAP) year 2007 ë Director Certification Program (DCP) year 2009 ë Financial Statements Demystified for Directors (FDD) year 2009 By Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) : None

28

Work Experience Present Chairman of the Board (1990-present) Delta Electronics (Thailand) Plc 2004-2008 Executive Committee Member, Delta Electronics (Thailand) Plc 1990-2006 President, Delta Electronics (Thailand) Plc 2000-2003 President, Delta Electronics Inc.,Taiwan

Mr. Ming-Cheng Wang (Stronger) Position ë Vice Chairman of the Board (Authorized Director) ë Vice President ë Executive Committee ë Vice Chairman of Risk Management Committee Education / Training Industrial Engineering (Diploma), National Taipei Institute of Technology, Taiwan Shareholding in the Company (31 Jan 12) ë 642,910 shares (0.052% of paid up capital) Work Experience Present ë Vice Chairman of the Board (1990-present) ë Vice President (1990-present) ë Executive Committee Member (1999-present) ë Vice Chairman of Risk Management Committee (2009-present) Delta Electronics (Thailand) Plc


Mr. Hsieh, Heng-Hsien (Henry) Position ë Director of the Board (Authorized Director) ë President & DES President ë Chairman of Executive Committee ë Chairman of Risk Management Committee Education / Training ë MBA, Pacific Western University, USA ë Electrical Engineering (Diploma), National Taipei University of Technology, Taiwan ë Director Accreditation Program (DAP) year 2006, Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) ë 240,755 shares (0.02% of paid up capital) Work Experience Present ë Director of the Board (2006-present) ë President (2007-present) ë President of Delta Energy Systems (DES) group (2004-present) ë Chairman of Executive Committee (2009-present) ë Chairman of Risk Management Committee (2009-present) Delta Electronics (Thailand) Plc.

Mr. Chu, Chih-Yuan (Roger) Position ë Director of the Board (Authorized Director) Education / Training ë B.A in Economics, Chinese Culture University (Taipei), Taiwan ë Executive Program of Graduate School of Business Administration, Chung Yuan Christian University, Taiwan ë Director Accreditation Program (DAP) year 2007, Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Director of the Board, Delta Electronics (Thailand) Plc (1988 - present) ë Senior Vice President and Corporate CFO, (1986 - present) Delta Electronics, Inc. (Taiwan) ë Director, Digital Projection International Holding Ltd. (2011- present) ë Supervisor, Delta Electronics Capital Company (2010 - present) ë Supervisor, NeoEnergy Microelectronics (2009 - present) ë Director, Delta Electronics International Ltd. (Labuan) (2004 - present) ë Supervisor, Delta Electronics (Korea), Inc. (2004 - present) ë Supervisor, Delta Greentech (China) Co., Ltd. (2002 - present) ë Supervisor, Addtron Technology (Japan) Co., Ltd (1998 - present) ë Director, Delta Power Sharp Ltd. (1995 - present) ë Supervisor, Delta Electronics (Japan), Inc. (1991 - present)

Annual Report 2011

29


Delta Electronics (Thailand) Public Company Limited

Mr. Anusorn Muttaraid Position Director of the Board (Authorized Director) / Executive Committee Member / Compensation Committee Member / Risk Management Committee Member / Human Resources & Administration / Public Relations Director Education / Training ë B. Sc, Kasetsart University ë Director Certification Program (DCP) year 2004, Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Director of the Board (1994-present) ë Executive Committee Member (1999-present) ë Compensation Committee Member (2007-present) ë Risk Management Committee Member (2009-present) ë Human Resources & Administration/Public Relations Director (1993-present) Delta Electronics (Thailand) Plc 2011-Present ë Director of Advisory Board, Department of Trade Negotiations Ministry of Commerce ë Director/Executive Director/Risk Committee Chairman, The Small and Medium Enterprise Development Bank of Thailand (SME Bank) ë Member of sub-committee of Comprehensive Economic Partnership in East Asia (ASEAN + 6), Board of Trade of Thailand 2010-Present ë Managing Partner, Anupong Globalize Limited Partnership 2009-Present ë Chairman of Committee on Indian Affairs, Board of Trade of Thailand 2007-Present ë Chairman of Thailand-India Business Council, Board of Trade of Thailand ë Managing Partner, Anusorn Globalize Limited Partnership

30

Ms. Niramol Tantipuntum Position ë Director of the Board (Authorized Director) ë Head of Accounting Education / Training ë MBA, National Institute of Development Administration ë B.A (Accounting), Ramkhamhaeng, University ë Director Accreditation Program (DAP) year 2004, Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) ë 120,000 shares (0.0096% of paid up capital) Work Experience Present ë Director of the Board (1994-present) ë Head of Accounting (1991-present) Delta Electronics (Thailand) Plc 1999-2008 ë Executive Committee member, Delta Electronics (Thailand) Plc


Emeritus Professor Supapun Ruttanaporn Position ë Independent Director / Audit Committee Chairperson Education / Training ë M.B.A (Accounting), Michigan State University, USA ë B.A (Accounting) (Hons), Chulalongkorn University ë Director Certification Program (DCP) year 2002, Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Independent Director (2004-present) ë Audit Committee Chairperson (2007-present) Delta Electronics (Thailand) Plc ë Audit Committee of Charoen Pokphand Foods Plc (2009-present) ë Audit Committee of Grow Energy Plc (1999-present) ë Executive Director, S.S Grain Overseas Company Limited ë Treasurer of Wat Yannasungvararam Foundation ë Honorable auditor of Som Dej Pra Thep Rattanasuda Foundation ë Pension staff of Chulalongkorn University 2007-2010 ë Member of Ethics Committee, Federation of Accounting Profession 2001-2009 ë President of Thai Accounting Association

Mr. Supat Limpaporn Position ë Independent Director / Audit Committee Member / Compensation Committee Chairman Education / Training ë M.E & B.E Mechanical Engineering, Technical University, Hannover, West Germany ë Director Accreditation Program (DAP) year 2007 ë Director Certification Program (DCP) year 2008 ë Role of Compensation Committee (RCC) year 2008 ë Audit Committee Program (ACP) year 2011 By Thai Institute of Directors Association (IOD) Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Independent Director / Audit Committee Member/ Compensation Committee Chairman (2007-present) Delta Electronics (Thailand) Plc 2010-Present ë Chairman of Audit and Evaluation Committee, Ministry of Industry 2005-Present ë Performance Agreement Subcommittee, Ministry of Finance 2006 ë Committee on Labour Relations, Ministry of Labour 2003 ë Director General of The Industrial Promotion Department, Ministry of Industry 2002-2003 ë Deputy Secretary General of The Board of Investment

Annual Report 2011

31


Delta Electronics (Thailand) Public Company Limited

32

Professor Lee, Ji-Ren Position ë Independent Director / Audit Committee Member / Compensation Committee Member Education / Training ë Ph.D., University of Illinois at Urbana-Champaign, Illinois, U.S.A ë M.B.A., National Taiwan University, Taipei, Taiwan ë B.E., National Tsing Hua University, Hsin-Chu, Taiwan Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Independent Director / Audit Committee Member / Compensation Committee Member (2011-present) Delta Electronics (Thailand) Plc 2010-Present ë Associate Dean in Resources/Teaching Development, College of Management, National Taiwan University, Taiwan ë Independent Director of Wowprime Group, Taiwan 2006-Present ë Independent Director of Esun FHC, Taiwan 2003-Present ë Director of AVerMedia Technology, Taiwan 2002-Present ë Professor of Strategy and Management, Department of International Business, College of Management, National Taiwan University, Taiwan 2007-2008 ë Compensation Committee Member, Delta Electronics (Thailand) Plc 2006-2008 ë Independent Director / Audit Committee Member, Delta Electronics (Thailand) Plc

Profiles of Management Team Mr. Hsieh, Heng-Hsien (Henry) ë President & DES President (For futher details, please refer to his profile in the Board of Directors) Mr. Ming-Cheng Wang (Stronger) ë Vice President (For futher details, please refer to his profile in the Board of Directors) Mr. Anusorn Muttaraid ë Human Resources & Administration/Public Relations Director (For futher details, please refer to his profile in the Board of Directors) Mr. Yu, Po-Wen (Beau) ë Chief Financial Officer (CFO) Education / Training ë M.B.A, University of South Australia ë B.A (Accounting), Chinese Culture University (Taipei) Shareholding in the Company (31 Jan 12) ë 10 shares (0.0000008% of paid up capital) Work Experience Present ë Chief Financial Officer (CFO) (1991-present) ë Executive Committee Member (1999-present) ë Risk Management Committee Member (2009-present) Delta Electronics (Thailand) Plc

Mr. Boonsin Surawatsatain* ë Internal Audit Senior Manager Education / Training ë M. Sc (Accounting) , Thammasart University ë B.A. (Accounting), Chulalongkorn University ë Audit Committee Program (ACP) Year 2009 ë Company Secretary Program (CSP) Year 2008 By Thai Institute of Directors Association (IOD) ë Certified Internal Auditor (CIA) ë Certified Public Accountant Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Internal Audit Senior Manager (2005-present) Delta Electronics (Thailand) Plc 2005 ë Internal Audit Vice President, Glow Energy Plc * Resigned since Jan 2012 Mr. Chen, Chin-Ming ë Chief Information Officer (CIO) Education / Training ë Industrial Management, National United University Shareholding in the Company (31 Jan 12) : None Work Experience Present ë Chief Information Officer (CIO) (Nov 2011-present), Delta Electronics (Thailand) Plc 1999-Aug 2011 ë Business IT, Delta Electronics, Inc. (Taiwan)


Managerial Structure Organization Chart Compensation Committee

Board of Directors

Audit Committee

Executive Committee

Internal Audit

President Risk Management Committee

IT

HRA/PR

Operation

Finance

DES*

Remark : * Delta Energy Systems Group

The Company没s managerial structure consists of 5 committees including board of directors, and executive committee, audit committee, compensation committee and risk management committee with details as described below.

BOARD OF DIRECTORS The Company没s board of directors is composed of 9 members, 6 executive directors, 3 nonexecutive directors (independent directors) and more than a half of the total number of directors have residence within the Kingdom. As reported in the Ministry of Commerce没s certification dated November 2, 2011, list of the members of the board of director is shown below. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Name Mr. Ng Kong Meng Mr. Ming-Cheng Wang Mr. Hsieh, Heng-Hsien Mr. Chu, Chih-Yuan Mr. Anusorn Muttaraid Ms. Niramol Tantipuntum Emeritus Professor Supapun Ruttanaporn Mr. Supat Limpaporn Prof. Lee, Ji-Ren*

Position Chairman of the Board Vice Chairman Director and President Director Director Director Independent Director Independent Director Independent Director

Appointment Date Year 1990 Year 1990 Year 2006 Year 1988 Year 1994 Year 1994 Year 2004 Year 2007 Year 2011

Remark: * Having been appointed the Company没s independent director by the 2011 AGM on April 1, 2011

Ms. Duangrat Lertvorasirikul and Ms.Wilailak Fungthanakun are Company Secretary and Secretary to the Board of Directors

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Delta Electronics (Thailand) Public Company Limited

34

Authorized Directors: The following 6 directors are authorized to act on behalf of the Company under following conditions (1) Either Mr. Ng Kong Meng or Mr. Ming-Cheng Wang or Mr. Hsieh, Heng-Hsien, jointly sign totaling two persons with the Companyûs seal being affixed, or (2) Mr. Ng Kong Meng or Mr. MingCheng Wang or Mr. Hsieh, Heng-Hsien, signs name together with Mr. Anusorn Muttaraid or Ms. Niramol Tantipuntum or Mr. Chu, Chih-Yuan, totaling two persons with the Companyûs seal being affixed. Scope of Responsibilities of the Board of Directors: 1. To manage the business of the Company faithfully and prudently and comply with the laws and the Companyûs objectives, Articles of Association as well as the resolution of the shareholdersû meeting, for the benefits of the Company. 2. To determine policies, business strategy, business plan and budget of the Company, and to supervise that the administration and management including to follow up the result of the operation performed by the executive committee in order to ensure its proper compliance with the plan, policies and budget. 3. To review the Companyûs internal control systems and risk management to be correctly and efficiently conducted. 4. To ensure that the Company compiles with the Securities and Exchange Act and other securities and exchange laws e.g. SEC rules and regulations and the SET regulations, for instance, regulations concerning the entry into connected transactions and regulations concerning the substantial acquisition of assets, including any law governing the Companyûs business. 5. To arrange for the preparation and submission of the audited balance sheet and profit and loss statement at the end of each accounting period to the shareholdersû meeting for its consideration and approval. 6. To monitor on the adequacy and timely of the Companyûs disclosure of information. 7. To authorise any other person to perform any action on behalf of the board of directors under the supervision of the board of directors, or granting the power-of-attorney to such person to perform any action as the board of directors may think fit; provided, however, that the board of directors has the sole discretion to revoke or modify such power-of-attorney as the board of directors may think fit. For this purpose, no authorization will be enable the grantee under the power-of-attorney to consider and approve the transaction which may cause a conflict of interest between himself or any related person or interested person as the one party and the Company as the other party, unless it is granted following the approved policies and criteria previously set out by the board of directors. Qualifications of Director 1. A director shall have qualifications and shall not have prohibited characteristics as specified in the law on public limited companies, as well as shall not have characteristics indicating a lack of appropriateness in respect of trustworthiness in managing business whose shares are held by public shareholders as specified in the notification of SEC. 2. Professional ethics and excellent career profile. 3. Knowledge or experience in business administration, especially in electronics, telecommunications, finance and accounting or any other areas, as the board deems appropriate. 4. Able to participating in all boardûs meetings and shareholdersû meetings (except in case of emergency). 5. Other qualifications that the board may later consider appropriate or are required by law.


Qualifications of Independent Director Qualifications of independent director (ID) have been defined based on the requirement of Office of Securities and Exchange Commission as follows: 1. Not holding shares exceeding 1% of the total shares with voting rights of the company, its parent company, its subsidiary, its associated company, or potential conflicting person provided that any shares held by his or her Related Person must be taken into account. 2. Not being nor having been an executive director, employee, officer, monthly paid advisor or controlling person of the company, or its parent company, its subsidiary, its associated company, its parallel subsidiary company or potential conflicting person with the company except that he/ she has no such characteristic for at least two years before becoming an independent director. 3. Not being a person related by blood or by registration under laws as father, mother, spouse, sibling and child, including spouse of child of executive, major shareholder, controlling person, or such other person who will be nominated to take up the position of executive or controlling person of the company or its subsidiary. 4. Not having nor having had any business relationship with the company, its parent company, its subsidiary, its associated company or potential conflicting person as might interfere with his/her use of independent discretion, including not being nor having been a major shareholder, a director who is not an independent director, or an executive of a person who has a business relationship with the company, its parent company, its subsidiary, its associated company or potential conflicting person except that he/she has no such characteristic for at least two years before becoming independent director. Details of business relations are summarized as follows: 4.1 Professional advisor 4.1.1 Not being an auditor for any cases 4.1.2 Not being the advisors (such as legal advisor, financial advisor, appraiser or others) with value of transactions of greater than 2 million Baht per year 4.2 Other business relationship 4.2.1 Scope of business covers normal business transaction, rental or lease of immovable property transaction, asset or service transaction, and financial assistance transaction. 4.2.2 Not having business relationship with the value of transactions of 20 million Baht or more or 3% or more of its net tangible assets, whichever is lower (including transactions undertaken with the same person in 6 months). 4.2.3 For existing independent director, any case deemed to be necessary and appropriate and not be a regular case, the board of directors with the unanimous resolution may except the transaction which exceeding the above value. In such case, the business transaction is required to be disclosed in the registration statement, Form 56-1, and annual report. If the independent director will be re-appointed for another term, such relationship or transaction must also be disclosed in the notice of meetings. 5. Being a director whom is not appointed as a representative to safeguard interests of the company没s directors, majority shareholders or shareholders who are related to the company没s major shareholders. 6. Not having any other characteristics which make it incapable of expressing an independent opinion with regard to the company没s operations. 7. An independent director who satisfies qualification specified in 1 to 6 above may be empowered by the board to make decision in normal business operation provided that the decision process is in form of collective decision. Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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Selection of Directors and Independent Directors The board is responsible for the search, selection and nomination of the qualified candidate to be director or member of any committee of the Company as currently the nominating committee has yet been appointed for such assignment. However, to promote the good governance the Company has invited the small shareholders to nominate the candidates to be directors of the Company. The candidate is required to have some basic qualifications as shown in the Companyรปs website. The board will consider and approve selecting the candidate by the majority votes of the board meeting. After selected, the board shall nominate such candidate to the shareholdersรป meeting for approval. Appointment of Directors Based on the Article of Association of the Company, an appointment of director is made through a majority vote of shareholders meeting. One share shall count for one vote and each shareholder shall exercise all the votes he has to appoint the nominated person or nominated persons to be director on a person-by-person basis or en bloc basis, provided that he cannot divide his vote to any person to any or in the basis extent vote for nominated persons but the votes are indivisible. The person obtaining the most votes in descending order shall be elected as directors equal to the number of directors required. In the event that persons receiving votes in respective orders receive equal votes and the number of position exceed the positions required, the chairman of the meeting shall have a casting vote. Directorship of the Board of Directors and Executives in other Companies To ensure the directorรปs efficient performance and in compliance with Corporate Governance Principles, the board of directors requires that each director may retain the office of director in, apart from the Company, other five listed companies as a maximum. Moreover, before participating as board director of any other company (except subsidiary company), the directors, president and/or the other top executives must first seek approval from the board of directors.

EXECUTIVE COMMITTEE The executive committee of the Company consists of 7 members as follows; 1. 2. 3. 4. 5. 6. 7.

Mr. Mr. Mr. Mr. Mr. Mr. Mr.

Name Hsieh, Heng-Hsien Ming-Cheng Wang Anusorn Muttaraid Yu, Po-Wen Vichai Saksuriya Mana Tangchatsiri Sim, Kuik-Keong

Position Executive Committee Chairman Executive Committee Member Executive Committee Member Executive Committee Member Executive Committee Member Executive Committee Member Executive Committee Member

Scope of Responsibilities of Executive Committee: 1. To operate and manage the business of the Company in compliance with Companyรปs objectives, Memorandum of Association, policies, regulations, notifications, orders as well as the resolution of the board of directors and/or shareholdersรป meeting. 2. To establish policies, business plan, directions, strategies, budget and the main organization structure and authority of each department within the Company including the organization chart in order to propose to the board of directors for its consideration and approval as well as to monitor and follow up the result of the operation of the Company to be in accordance with the policies.


3.

To be eligible to do the following transactions with banks and to report these transactions to the board of directors in the following board meeting after execution of those transactions. (a) Open or close bank accounts, (b) Enter into any contract which is in the Company没s normal course of business and/or any other transactions with banks or other financial institution for a total combined amount of not exceeding USD 50 million or equivalent in any other currencies per bank, in case there is a need to use any assets of the Company as collateral to support the banking facilities, approval of the board of director must be obtained, (c) Issue corporate guarantee to support banking facilities granted to Subsidiaries for a total amount of not exceeding USD 50 million or equivalent in any other currencies per company. (d) Renew banking facilities without any limit. To be eligible to approve the investment in subsidiary companies for the amount of not exceeding USD 5 million or equivalent in any other currencies per company per calendar yearproject and in the aggregate amount, after combining all investments, of not more than USD 20 million or equivalent in any other currencies within a calendar year. Such investment transactions are required to report to the board of directors in the following board meeting To be eligible to appoint, promote, transfer or discharge directors and/or executives of the subsidiary companies. To authorize any one or more persons to perform any action under the supervision of the Executive Committee, or granting the power-of-attorney to such person (s) to perform any action within the specified time as the executive committee may think fit; provided, however, that the executive committee has the sole discretion to revoke or modify such designated person or power-of-attorney as the executive committee may think fit. For this purpose, no authorization will be enable a member of the executive committee under the power-of-attorney and/or his sub power-of-attorney to approve the transaction which may cause a conflict of interest between such attorney or any related person (as defined in the SEC Notification) as the one party and the Company or its subsidiary as the other party, unless it is granted in accordance with the Company没s normal course of business as clearly identified. To perform any other duties assigned by the board of directors.

4.

5. 6.

7.

AUDIT COMMITTEE The audit committee of the Company consists of 3 members and all the members are independent directors. Term of office shall follow the annual director election and qualifications and responsibilities of the Committee as prescribed by the SET. List of the members of the audit committee is shown below. Name 1. 2. 3.

Emeritus Professor Supapun Ruttanaporn* Mr. Supat Limpaporn Prof. Lee, Ji-Ren**

Position Audit Committee Chairperson Audit Committee member Audit Committee member

Remark: * Being a director who is knowledgeable and experienced in reviewing Company没s financial statements appointed since 2004 ** Having been appointed the audit committee member by the 2011 AGM on April 1, 2011

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Delta Electronics (Thailand) Public Company Limited

Qualifications of Audit Committee: 1. All members must be independent director. 2. Not being a director who is authorised by the board of directors to make decisions relating to the operations of the company, its parent company, its subsidiary, its associated company, its parallel subsidiary company or potential conflicting person. 3. Not being a director of a parent company, subsidiary or parallel subsidiary company which is a listed company. 4. Having duties and responsibilities according to the SET没s rules. 5. Having sufficient knowledge and experience to perform his/her duties as a member of the audit committee provided that at least one member of the audit committee must have sufficient knowledge and experience to review the reliability of the financial statements. 6. Being appointed by the Board or shareholders meeting.

38

Scope of Responsibilities of Audit Committee: 1. To review the company没s financial reporting to ensure that it is accurate and the disclosure is adequate; 2. To review that the company employs appropriate and efficient internal control system and internal audit. To determine the independence of the internal audit unit as well as to approve the appointment, transfer and dismissal of the chief of the internal audit unit or any other unit in charge of the internal audit; 3. To review that the company complies to the law on securities and exchange, the regulations of the SET and other laws related to the company business; 4. To consider the capability and the independence of an external auditor and propose to be appointed as the Company没s auditor including the audit fee, as well as to attend a nonmanagement meeting with the auditor at least once a year; 5. To review the Connected Transactions or the transactions that may lead to conflicts of interests, that they are complied with the SEC laws and regulations, and to ensure that they are reasonable and yield the highest benefit to the company; 6. To report the governance activities of the Audit Committee in the company annual report, which must be signed by the chairman of the Audit Committee. The report has to consist of at least the following information: (a) An opinion on the accuracy, completeness and reliability of the company financial reports, (b) An opinion on the adequacy of the company internal control system, (c) An opinion on the compliance with related laws i.e. the Securities and Exchange Act, the SET regulations, or the laws relating to the business of the company, (d) An opinion on the suitability of the external auditor, (e) An opinion on the connected transactions or the transactions that may lead to conflicts of interest, (f) The number of Audit Committee meetings, and the attendance of such meetings by each committee member, (g) An overall opinion or comment of the Audit Committee in performing its duties as specified in the audit committee charter.


(h)

7.

Other transactions the Audit Committee opines that should be known to the shareholders and general investors, under the scope of duties and responsibilities assigned by the company board of directors. To do any other matters assigned by the board of directors of which the Audit Committee agrees.

COMPENSATION COMMITTEE The Compensation Committee consists of 3 members, 2 independent directors and 1 executive director in charge of human resources function. Term of office shall follow the annual director election. List of the members of the compensation committee is shown below. Name 1. Mr. Supat Limpaporn 2. Prof. Lee, Ji-Ren* 3. Mr. Anusorn Muttaraid

Position Compensation Committee Chairman (Independent Director) Compensation Committee Member (Independent Director) Compensation Committee Member (Human Resources & Administration Director)

Remark: * Having been appointed the compensation committee member on April 1, 2011

Scope of Responsibilities of Compensation Committee: 1. Appraise the performances of the president and the Executives level 8 and up annually. 2. Determine the remuneration of the directors of the Company and members of subcommittee, which would include monthly remuneration, meeting allowance, annual bonus and other benefits in terms of both financial and/or non financial, with fair and reasonable principles and package structure and submit it to the board of directors and shareholders for approval. 3. Determine the remuneration policy of the Company没s president and the Executives level 8 and up which would include salary, annual bonus and/or other benefits in terms of both financial and/or non financial, with fair and reasonable principles and package structure and submit it to the board of directors for approval. 4. Review the remuneration policy of directors, committee President and the Executives level 8 and up based on their performances, the company没s performances and best practice in the market and/or among the listed companies in Thailand没s stock exchange. 5. Perform any other duties assigned by the board. To perform the assigned job, the compensation committee may seek advice or opinion from the relevant independent professionals as necessary and appropriate. Compensation committee may also need to attend training or seminar with the purpose to enhance knowledge and capability in performing their job at the expense of the Company.

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Delta Electronics (Thailand) Public Company Limited

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RISK MANAGEMENT COMMITTEE Risk management committee consists of 13 members as follows; 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Name Mr. Hsieh, Heng-Hsien Mr. Ming-Cheng Wang Mr. Anusorn Muttaraid Mr. Lin, Nan-Hong Mr. Yu, Po-Wen Mr. Vichai Saksuriya Mr. Mana Tangchatsiri Mr. Sim, Kuik-Keong Mr.Chiang, Chia-Chih Mr. Tang Peng Seng Mr. Didier Chaumet Mr. See Kai Mun Mr. Chong Kai Kok

Position Risk Management Committee Chairman Risk Management Committee Vice Chairman Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee Risk Management Committee

Mr. Tam, Chung-I (Johnny Tam) is the Risk Management Manager

Scope of Responsibilities of the Risk Management Committee: 1. Establish risk management procedures. 2. Implement risk management, to delegate the risk management to their respective managers. 3. Develop and review strategic risk management plans 4. Quarterly and/or annually and/or any time that is necessary report to the Board or to the Audit Committee as assigned by the Board. 5. Monitor and continuously improve risk management. 6. The committee may seek advice from relevant professional consultant in some cases

MANAGEMENT TEAM The management team of the Company consists of 6 members as follows; 1. 2. 3. 4. 5. 6.

Mr. Mr. Mr. Mr. Mr. Mr.

Remark:

Name Hsieh, Heng-Hsien Ming-Cheng Wang Anusorn Muttaraid Yu, Po-Wen Chen, Chin-Ming Boonsin Surawatsatain**

Position President and DES* President Vice President Human Resources & Administration / Public Relations Director Chief Financial Officer Chief Information Officer Internal Audit Senior Manager

* DES means Delta Energy Systems group of companies which are all subsidiary companies mainly located in Europe. ** Resigned since Jan 2012.

Scope of Responsibilities of the President: 1. To manage, control and responsible for the operation of the Company in accordance with the directions set out in the Company没s budget as approved by the board of directors and/or the executive committee of the Company including taking care, advising and improving the operation continuously.


2. 3. 4. 5.

6.

7.

To propose policies, strategy of the Company and of the business unit of the Company to the board of directors for acknowledgement and approval and to be responsible for applying such strategy with its operation. To be jointly responsible with the executive committee for preparation of the annual budget and the operational plan of the Company, reviewing the annual budget quarterly and proposing the amended budget to the board of directors. To report the operational result to the board of directors quarterly. To have the authorization to approve the payment in accordance with the Approval Authorization Instruction of the Company, which had already been copied to all directors for consideration. However, with respect to the matters other than the normal course of business, the president shall have the authorization to approve such payment only upon receipt of the board没s approval To be eligible in appointing and managing any working groups or any persons for benefit of the Company and efficient management, transparency, or empowering to any person or assigning any person to do any specific tasks in such authorization complies must be within the scope of the power-of-attorney and/or regulations, notifications or orders as determined or approved by the Board of Directors and/or the Company. For this purpose, no authorization will be enable the president to approve the transaction which may cause a conflict of interest between himself/his assignee and any related person (as defined in the SEC Notification) as the one party and the Company or its subsidiary as the other party, unless it is granted in accordance with the Company没s normal course of business as clearly identified. To do any acts as assigned by the board of directors.

Meeting Attendances of directors are as follows; Name No. of total meetings held 1. Mr. Ng Kong Meng 2. Mr. Ming-Cheng Wang 3. Mr. Hsieh, Heng-Hsien 4. Mr. Chu, Chih-Yuan 5. Mr. Anusorn Muttaraid 6. Ms. Niramol Tantipuntum 7. Emeritus Prof. Supapun Ruttanaporn 8. Mr. Supat Limpaporn 9. Prof. Lee, Ji-Ren* 10. Assist.Prof. Liu, Heng-Yih**

Board of Directors 4 4/4 4/4 3/4 4/4 4/4 4/4 4/4 4/4 3/3 1/1

Audit Committee 9 N/A N/A N/A N/A N/A N/A 9/9 9/9 5/7 2/2

Compensation Committee 4 N/A N/A N/A N/A 4/4 N/A N/A 4/4 2/3 1/1

Unit : Times AGM 1 1/1 1/1 1/1 0/1 1/1 1/1 1/1 1/1 1/1 0/1

Remark: * Prof. Lee, Ji-Ren has been appointed by 2011 AGM on April 1, 2011. After such appointment, he had attended board meetings 3 meetings out of total 3 meetings, audit committee meeting 5 meetings out of total 7 meetings (and 2 teleconference calls), compensation committee meeting 2 meetings out of total 3 meetings (and 1 teleconference call) ** Assist.Prof. Liu, Heng-Yih had resigned since April 1, 2011

Remuneration of Directors and Management The consideration of remuneration will be based upon the general guidelines for Determination of Director and Executive Remuneration proposed by the Compensation Committee and approved by Board of Directors (For further details, please see the Guidelines for Determination of Director and Executive Remuneration in the Corporate Governance Report). Remunerations of Directors and Management in 2011 are listed as follows; Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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1.

Remuneration 1.1 Remuneration of Directors The remuneration of directors including annual remuneration and meeting attendance fee with details is shown below;

Name of Director Unit : Baht Mr. Ng Kong Meng Mr. Ming-Cheng Wang Mr. Hsieh, Heng-Hsien Mr. Chu, Chih-Yuan Mr. Anusorn Muttaraid Ms. Niramol Tantipuntum Emeritus Prof.Supapun Ruttanaporn Mr. Supat Limpaporn Prof. Lee, Ji-Ren 2) Assist.Prof. Liu, Heng-Yih 3) Total

Remuneration 2011 2010 1,500,000 1,500,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 1,100,000 1,100,000 1,100,000 1,100,000 1,000,000 - 1,000,000 7,100,000 7,100,000

Meeting fee 1) 2011 2010 50,000 60,000 140,000 150,000 180,000 210,000 110,000 40,000 130,000 520,000 550,000

Total Amount 2011 2010 1,550,000 1,560,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 480,000 1,240,000 1,250,000 1,280,000 1,310,000 1,110,000 40,000 1,130,000 7,620,000 7,650,000

Remarks: 1) Meeting attendance fees are for Chairman of the Board and Independent Director for their participation in every committee meeting and Shareholders没 meeting. 2) Prof. Lee, Ji-Ren has been appointed by 2011 AGM on April 1, 2011 3) Assist.Prof. Liu, Heng-Yih had resigned since April 1, 2011 and the above meeting fee was paid during the period of Jan - Mar 2011.

1.2

2.

Remuneration of the Management Remuneration of the 6 members of the management team (and 1 resigned member) including salary and bonus in 2011 amounted to Baht 64,264,062 as compared to that of last year (2010) of Baht 22,169,424. The difference is mainly because of the expiration of the Employee Stock Option Plan (ESOP).

Other remuneration - None Share/warrant holdings of Directors Name of Director 2011 31 Jan 12 Mr. Ng Kong Meng Mr. Ming-Cheng Wang Mr. Hsieh, Heng-Hsien Mr. Chu, Chih-Yuan Mr. Anusorn Muttaraid Ms. Niramol Tantipuntum Emeritus Prof.Supapun Ruttanaporn Mr. Supat Limpaporn Prof. Lee, Ji-Ren

642,910 240,755 120,000 -

Remark: * No. of shares included those held by spouse and minor children

DELTA Shares* 2010 31 Dec 10 1,950,000 2,520,010 240,755 750,000 240,000 120,000 -

Inc (Dec) (1,950,000) (1,877,100) (750,000) (240,000) -


Corporate Governance Report The Board of Directors realized the importance of operating its business under good corporate governance in an attempt to promote sustainable growth and development. The corporate governance policy has been prepared and implement since 2007. The policy has been disclosed on the Companyûs website, externally on www.deltathailand.com for public access as well as internally on intranet for employeeûs access. The policy covers 5 major categories as followed; ë Rights of Shareholders ë Equitable Treatment to Shareholders ë Role of Stakeholders ë Disclosure and Transparency ë Responsibilities of the Board (Further details of the Companyûs Corporate Governance Policies can be read from the Companyûs website: www.deltathailand.com) With determination to act as guided by the policy, the Company has been rated çVery Goodé scoring on the Corporate Governance Rating surveyed in the year 2011 by Thai Institute of Directors Association (IOD) with supports from The Securities and Exchange Commission (SEC) and The Stock Exchange of Thailand (SET). The implementation on the good corporate governance activities during the year 2011 can be summarized as follows.

Rights of Shareholders The Company realizes and emphasizes the shareholdersû rights by encouraging the shareholders to exercise their basic legal rights, for example profit sharing, share sale and purchase or transfer, obtaining adequate business information including the updated important information via the Companyûs website, participating and vote in the shareholdersû meeting for material matters, etc. The Company generally holds an annual general meeting of shareholders (AGM) once a year within four months after each fiscal year end. And meeting is conducted in accordance with the good governance principles. Shareholders are allowed to exercise their full rights and vote at the meeting. In 2011, the AGM was held on April 1th, 2011 at the Companyûs office located at Bangpoo Industrial Estate, Samutprakarn provice. The Company provided shuttle services at an easily accessible location and near BTS Station for shareholders who wished to attend the Meeting. Record date was used to justify the shareholders who entitled to attend the meeting. The Company entrusted Thailand Securities Depository Co., Ltd. (TSD) who acted as registrar to send out invitation for the meeting in both Thai and English together with other supporting information and documents to all shareholders 14 days prior to the AGM date. At the same time, it announced the call for the AGM meeting on a Thai daily newspaper for three consecutive days and at least three days before the meeting date. All those documents were also made available to the shareholders on the Companyûs website for 30 days in advance. All information made available for easy access by shareholders was to provide adequate time for them to review the agenda. The meeting invitation had expressly indicated the matters to be tabled at the meeting, whether for acknowledgement, approval or consideration. In addition, it enclosed the Boardûs opinions and supported document to ensure that shareholders had sufficient information to consider all issues. To be well prepared for the meeting day, the Company provided a list of necessary evidences must be presented to identify themselves and a proxy form (as outlined by the Ministry of Commerce) to facilitate the shareholders who cannot attend the meeting and wish to give proxy to others. On

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Delta Electronics (Thailand) Public Company Limited

44

meeting date, attendance registration commenced not less than 1 hour before the meeting started. Shareholders who came late were allowed to vote for the remaining agenda. Barcode system had been employed to facilitate the attendance registration and vote count. Duty stamps were available to shareholders without charges. There were 8 directors out of 9 attended the meeting. The Chairman of the Board, Chairman of all sub-committees, the President and other key management members such as Chief Financial Officer (CFO) and the external auditor were presented in order to listen to the shareholdersû opinions or suggestions and also answered any questions they might have similar to what were done in prior year. Before the meeting started, the Company notified number of shareholders who attended the meeting in person and proxy, and clarified voting procedure and vote count method. With regard to the voting criteria, each share is eligible for one vote and an ordinary resolution requires the majority votes (except the voting on a special resolution, the meeting must comply with the Companyûs Articles of Association and/or relevant laws). Votes are not allowed to shareholders who have interests related to any particular agenda. For the election of directors, individual votes are required. At the time of voting, in order to expedite the process, only the ballots voted for objections and abstentions were collected and deducted from total votes which attended the meeting and eligible to vote. There was no any objection or request for re-inspection from shareholders on such arrangement. The meeting proceeded according to the agenda and had no additional item without prior notification to shareholders. The preliminary voting results were reported openly at the meeting. A representative from, Allen and Overy (Thailand) Co., Ltd, was appointed to help inspect the vote count. During the meeting, shareholders were allowed to voice their opinions and raise questions in appropriate time. In fact, shareholders may submit their questions by e-mail to info@deltathailand.com, mail or fax to the Company before the meeting date. However, in the meeting, the Board will principally attend the questions that related to the Companyûs operations or considered to create material impact on the operating results. Minutes of meeting recorded in writing every resolution, showing the number of approval, objection and abstention votes for each agenda. Questions, response, and opinions arose during the meeting were documented in order to examine afterwards. Report of the meeting had been disclosed on the website of the SET as well as and the Companyûs within 14 days after the meeting date (Please find further details in the 2011 Minutes of Annual General Meeting posted on the Companyûs website)

Equitable Treatment to Shareholders If the shareholder is unable to attend the meeting, the shareholder may give a proxy to a person or to the Companyûs nominated independent directors to attend the meeting and vote on his/her behalf by completing and sending to the Company a proxy form enclosed with the invitation for the meeting or by downloading the proxy form from the Companyûs website. In addition, the Company opened for the shareholders to propose additional agenda and to nominate candidate to be director of the Company in advance. Procedures and details were disclosed on the Companyûs website during 15 November - 31 December 2010 but none had exercised the rights. For 2012 annual general meeting of shareholders, the Company also provided this opportunity to shareholders during the period of 3 October - 31 December 2011. Prevention on Usage of Inside Information Under the Companyûs policy, the inside information is restricted to the executives from the middle to the top levels within the relevant departments or plants. Use of inside information for personal benefits or lead to any damage is deemed serious wrongful conduct. In practice, the


Company ruled out that its directors and executives must declare securities holding under their names, spouses and minor children to the Office of the Securities and Exchange Commission (SEC) as required by the law. Since listing on the SET, there is no circumstance related to usage of inside information which leads to significant change of the Companyûs stock price. Prevention on Conflict of Interest In general practice, decision making of the directors and executives must come out in a way to enrich the Companyûs ultimate benefit. In case of having conflict of interest, the directors or the executives shall submit the issue to the Board or the shareholdersû meeting for their consideration on necessity to execute such transaction and potential impact on the Company if the matter is approved. At the time of voting on the issue, the person who has conflict of interest is not allowed to vote. According to the recent Securities and Exchange Act, the directors and executives of the Company have filed their and their related personsû report on their interest with the Company with an extra copy to the Chairman and Audit Committee Chairperson of the Company through the companyûs secretary. And such reports are required to update annually and submit to the Company by end of January every year. In addition, the Company also deals with related party transaction as regulated by the Capital Market Supervisory Board and also disclosed inter-transaction with its affiliates in the Companyûs financial statements and in the annual information disclosure form (Form 56-1). During 2011, there was a related party transaction between the Company and its related company regarding disposal of whole 50% equity rights (shares) in Delta Green (Tianjin) Industries Ltd, which was held by DET SGP Pte Ltd (a wholly owned subsidiary of the Company), to Delta Electronics (H.K.) Ltd. (a subsidiary of Delta Electronics Inc. (DEI), a major shareholder holding approx. 20% in the Company, at the price of USD 15,451,799 (approx Baht 471.28 million) (2.53% of net tangible assets (NTA) of the Company based on its consolidated balance sheet as at 31 Mar 11). The fair market value was based on internal valuation using Income. Approach with a reference value made by independent appraiser. Director of the Company who is executives of DEI (major shareholder) did not participate the meeting and has no voting right to approve the said transaction and there was no any other different opinion from directors or Audit Committee. Code of Conduct In order to ensure that the Company performs its business with integrity, transparency and responsibility to all interested parties, the Company compiles a Code of Conduct Manual to guide the directors, executives, and employees to act on the same standard. The manual has been published in the Companyûs intranet and the Companyûs website. The Code of Conduct covers the following issues. 1. Compliance with laws and Companyûs regulations 2. The integrity of records 3. Protection of Companyûs assets 4. Gifts and entertainment 5. Conflict of Interest 6. Protection of Companyûs intellectual property rights 7. Prohibit on usage of inside information

Role of Stakeholders The Company gives priority towards lawful rights and agreement to all stakeholders including shareholders, customers, employees, business partners, creditors and the society. Mail and e-mail are two established channels to accept suggestions or complaints from all stakeholders. Once arrived, the Companyûs Secretary will pass them to the management, the Audit Committee, or the Board of Directors to examine and classify the message as follows. Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

46

1) 2) 3)

Complaints raised by shareholders will be submitted to the Audit Committee or the Board or addressed directly to the Audit Committee Chairperson at the address of the Company specified above. Complaints raised by customers, suppliers, employees or the public will be submitted to the executives to find out solution and report to the Board for acknowledgement. Complaints raised by creditors will be submitted to the management or the management may consider passing on the issue to the Board for further consideration.

The Company没s stance with regard to this can be described as follows: Shareholders: The Company aims to bring a long-term sustainable growth to its business, thereby enhancing the Company没s value and ultimately providing favorable returns to its shareholders. Since listing, the Company has been operated profitably and paid dividend consistently at a satisfactory rate with dividend payout ratio ranging 51-85% of annual net profits during the past few year. Customers: The Company is committed to maximize the customer satisfaction by always providing them with high quality products and reliable services as well as consistently maintaining good relationship. Business Partners: The Company at all times maintains good relationship with its business partners, not only perform to fulfill the agreement but also cooperate to work closely to improve the quality of raw materials and products to meet demand of both parties and prevention of material shortage Creditors: The Company strictly abides by its obligations and repays to all creditors as promised. Currently, the Company has gained trust and support from both local and international commercial banks. Employees:

The Company is well aware of highest value of human resource and a clear human resource development policy has therefore been established in order to develop the Company没s human resource and that a fair welfare is provided for the employees. This reflects in the Company没s policy and practices which can be summarized as follows:


Safety Health and Environment (SHE) The Company is aware of the safety, health and environment equable to other areas of the business undertaken by the Company. The business line executives are responsible for implementing such respective policy to ensure the continuous performance, evaluating the effect of each work station, and providing the employees with training regularly. In addition, the Safety Health Environment Commission has been appointed to ensure that the Company has complied with the ISO 14001 Environment Management and OHSAS 18001 (Occupational Health and Safety Management System). Employee Welfare The Company has established the Employee Welfare Commission to supervise and maintain the employeeûs interests and continuously gives precedence to promote labour relations between employees and managements as well as provides proper welfare to all employees. This has been recognized by çLabour Relations and Welfare Awardé granted by the Department of Labour Protection and Welfare, the Ministry of Labour, for 6 consecutive years. Human Resource Developement The Company has been committed to develop the quality of human resources in accordance with the set policy with the focus to enhance education, working capability and skills of the employees continuously. In 2011, the Companyûs key activities relating to human resources development are as follows; ë

Regional Leadership Talent Development Program (RLTD) In past 2 years, Leadership Talent Development Training Program (LTD) that was established to improve the leadership of the executives is considered so successful that the Company has later initiated the çRegional Leadership Talent Development Programé to improve the leadership skills for regional executives in 2 regions, Asia and Europe, and consists of 3 continuous training modules focusing the regional management. This project had totaled 61 participants (Asia 32 persons, Europe 29 persons) who entirely completed the training and earned certificates.

Participants in RLTD year 2011

ë

Educational Support Project The Company gives importance on educational support as part of human resource development. A joint cooperation program with Rajabhat University is specially established for potential employees to extend study on Business Administration. The educational support also extends in form of annual scholarships to employees and their children who have outstanding academic performance. Annual Report 2011

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48

In 2011, the Company and its subsidiaries had a total number of employees of 13,500 and the total remuneration including salary, bonus and provident fund paid to employees was Baht 6,460 million. In Thailand, there were 10,201 employees with Baht 2,876 million paid for remuneration including salary, bonus and provident fund. Employees in Thailand are divided into 2 main groups as follows. 1. Production No. of Employees (31 Dec 11) ë Pan PSBG Product Group 4,611 ë DES and IESBG Product Group 1,822 ë FMBG Product Group 1,745 ë CPBG & Others Product Group 1,558 2. Administration and others 465 Total 10,201 Social & Environmental The Company has set up the Corporate Social Responsibility (CSR) Team and also established policy and guidelines to comply with the ethical standard of the Electronic Industry Code of Conduct - EICC framework which lays standards in relation to production process and business operations in following 5 main areas to ensure safety, environmental and social responsibility. 1. Standard of Labor 2. Standard of Health and Safety 3. Standard of Management System 4. Standard of Environment 5. Standard of Business Ethics The Company received various local and international standards as follows. v Standard for Thai labor ë TLS 8001 - 2003 Comprehensive level of Thai Labor Standard v Standard for health and safety management system ë OHSAS 18001 - Occupational Health and Safety Standard of health and safety in the workplace. v Standard for quality management system ë ISO 9001 - Quality Management System Standard ë ISO/TS 16949 - Quality Management Standard for Automotive Industry ë ISO/IEC 17025 - Laboratory Management Standard ë TL 9000 - Quality Management Standard for the Telecommunications Industry ë IECQ HSPM QC 08000 - Hazardous Substance Process Management for Electronic Standard v Standard for environmental management system ë ISO 14001 - Environmental Management System Standard ë ISO 14067 - Standard for Carbon Footprints of Products ë ISO 14064-1- Quantification and Reporting of Greenhouse Gas Emissions and Removals Standard ë ISO 50001 - Energy Management System Standard Delta Thailand is the first company that received ISO 14064-1 and ISO 50001 in Thailand and still committed to continuously develop standards-based management and other related benchmarks that will help back capability enhancement to better absorb growing demand in the future


Green building certification is one of the programs that the Company is keen on and promotes. At present, construction of any new building of the Company and its subsidiaries will be blueprinted to meet LEED Leadership in Energy & Environmental Design, an international standards system for green building. In the past years, the Rudrapur plant of subsidiary in India announced its achievement of çGold-rateé LEED certification with an Green Building çGold-rateé in honorable from the Indian Green Building Council Rudrapur, India (IGBC). In the meantime, a recently-opened plant in May 2011 in Gurgaon, New Delhi, has applied for LEED Platinum Certification, the highest rated level. As to Thailand, a subsidiary namely Delta Green Industrial (Thailand) currently under construction in Chachoengsao province is also built in compliance with USAûs LEED standards and it will soon seek certification from the standards body. New office building in Gurgaon has In 2011 the Company has been certified in applied for çPlatinum-rateé of LEED compliance with çStandard for Corporate Social Responsibility-Department of Industrial Work: CSR-DIWé regulated by the Department of Industrial Work, Ministry of Industry of Thailand. The Company also participates in a program that promotes sustainability in CSR and a program that encourage entrepreneurs to create activities to promote a better society. Other endeavors include campaigns among employees to ensure awareness of an importance of the environment, current controversial detrimental effects of global warming. All are to help implant conserve environmental consciousness and energy consumption reduction. The implementation of the policies and the social and environmental practices as guideline by the CSR-DIW can be divided into seven main areas as follows. 1.

Organizational Governance The Company regulates a social responsibility policy to the directors, executives and employees to use as guideline to perform business and commit to further develop as well as improve to be foundation for ongoing and sustainable social responsibility. This has been communicated to employees, trade partners, contractors and all those involved in business to acknowledge and be aware of the importance of social responsibility.

2.

Human Rights The Company establishes a policy to respect human rights. It is defined in terms of unlawful practices, equitable treatment, and non-discrimination regardless of gender, race or physical defects. Holding it as a strict policy, the Company has declared to public and open several channels for complaints. However, there is no complaint in this matter in the past year. In addition, the Company pays respect on intellectual property right and therefore set a policy regarding usage of personal computer software which prohibits employees to download or upload unauthorized software. This wrong-doing is deemed serious guilty and/or to be legally charge. Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

3.

Labor The Company has participated a program to çDevelop Organization into a Sustainable Happy Workplaceé organized by the Thai Health Promotion Foundation and The Association of Thai Electrical & Electronic Industries. çHappy organizationé is the policy that aims to encourage employee to enjoy working by follow the rules of Eight for Happy Workplace. The eight components that help create çHappy Workplaceé includes; 1 Happy Body or physically sound; 2 Happy Heart or mentally sound; 3 Happy Relax or let to; 4 Happy Brain or intellectually sound; 5 Happy Soul or morally sound; 6 Happy Money or spending sound and saving wisely; 7 Happy Family or family care and responsibility; and 8 Happy Society or loving mankind. All are aimed to form balance of family life, work and society.

50 4.

Fair Operating Practices The Company has a policy to conduct business in transparency, accountability and integrity by complying with relevant international laws, customersû terms and other requirements to ensure fair treatment in business operation. Again, the Company opens channel for complaints and in the past year, there was no complaints in this matter.

5.

Consumer To promote sustainable consumption, the Companyûs products are designed to have an environmentally friendly manufacturing process along with the quality and reliability standards. This year, the Company has applied for its Solar Inverter and the cooling fan products for the çCarbon Footprint Labelé from Thailand Greenhouse Gas Management, Organization (Public Organization). This label provides information to consumer the amount of greenhouse gas emissions of such products, from the raw materialsû procurement, production process, transportation, usage, to disposal at a waste. All these information will give customer an alternative to use most environmentally friendly products while the Company can hold its will to conserve the environment.

6.

Community Participation and Development Building up good relations and provide assistance to communities and society are part of the social and environmental policy that the Company consistently put into practice. Examples include, employing or outsourcing some partsû producing to communities, funding


OTOP projects and providing support to public activities and society in various fields. Every three months, the Company organizes blood donation from employees to the Red Cross. Every year, it provides research funds to students at Kasetsart University in order to help develop skills, knowledge and competency in research that will be beneficial to the country and also give education support to schools in several provinces. In 2011, the Company grants 200 scholarships plus educational equipment and necessary materials to over 30 schools in Chiang Mai, Loei, and Chonburi and 15 scholarships to students at Rajabhat Thonburi University. To the well-known Tsunami disasters in Japan and the severe flood incidents throughout many provinces of Thailand, the Company donates emergency fund to help victims through the Thaisû Helping Hand Program for flood victims worth total Baht 1.1 million. Another Baht 1,002,600 was given to the Southern people who have been affected by an unanticipated flood and Japanese Tsunamiûs victims through the çTV3 News Familyé and the Thai Red Cross Society. Delta organized a çBig Cleaning Dayé at Rachanukroh 1 School located in Bang Pa-in district, Ayutthaya province. There were over 200 employees and executives volunteered and participated in this event. Activities included cleaning up, painting, installation of LED lights and reconstructing landscape of the surrounding area of the school and its library being damaged by flood.

Delta donated Baht 1.1 million to help Thailand flood victims

Delta on çBig Cleaning Dayé at Bang Pa-In çRachanukroh 1é School, Ayutthaya

Other community development activity worth highlight is çDelta Loves Treesé. The Company cooperates with the nearby community to run reforestation campaign. The program can be held as a model for tree planting in Bang Poo Industrial Estate. There were over 800 Deltaûs employee and officers from the Industrial Estate Authority of Thailand (IEAT) planted more than 1,200 trees in the surround area of Bang Poo Industrial Estate. Another two projects included çPlook Pa Bang Poo Ruam Jaié in an attempt to return trees to mother land and çPlook Pa Chalerm Prakiaté to honor Her Majesty the King in the wetland around Bang Poo Seaside Resort of the Royal Thai Army. Annual Report 2011

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The çDelta Loves Treesé Project

7.

Environmental Management The Companyûs mission çTo provide innovative, clean and efficient energy solutions for a better tomorrowé has been practically applied in all activities from development of new products and technologies to manufacturing activities. In addition, the Company uses the policy çTo develop products of environmentally friendly and energy efficient features and perform operation in a way to reduce environmental impacté as a guideline to conserve global environment. An environmental policy is specially set up to promote and support manufacturing production under Green Label regulation, which mainly focuses on an environmentally friendly manufacturing process, waste management, pollution reduction and efficient usage of resources. Outcome of these activities have been recorded and measured to assess impact on a monthly basis. Employee will regularly be trained and educated. The Company perceives the importance of energy conservation and, therefore, promotes efficient usage of resources as energy management policy which the Company commits to ensure continuous improvement. The Company communicates, and when appropriate, trains employees, at all levels in the organization to ensure that they acknowledge and realize the importance of energy conservation. Implementation has been monitored, followed up, adjusted for improvement. The Company and related companies have jointly carried out energy saving program by introducing a concept of energy management into various internal functions and implementing them to some of the projects such as the Companyûs own air conditioning and lighting systems.


A Solar Inverter Panel is also installed to generate electricity for its own factory usage. This program has been further developed with combination of continuing study and 莽Learning by Doing茅 through discussion, experience sharing in order to plan and allocate limited resources more efficiently.

Solar panel installed on the roof of the parking lot to generate 11 Kilowatts of electricity to use in the Company没s lobby.

In addition, the Company designed Energy Recycling System (ERS) whereby heat resulting from simulation process in high-temperature environment (Burn-in) has been converted into electricity. And because of this recycle process, 95% of electricity used in the burn-in process can be reutilized and at the same time heat generated from air conditioning system and its workload can be lessened. The Company realizes that its current outstanding capability in developing of information technology (IT) products could definitely help enhance its business towards energy technology (ET) in the future. Several green energy products under development including LED, solar energy related devices, wind turbines used to produce wind power, and other power devices and chargers for electric car. At Delta, we believe energy saving practice and green product promotion are the key solutions to conserve environment and effectively reduce the use of limited fossil fuels.

Disclosure and Transparency The Company has the policy to disclose data and information accurately, adequately and timely so as to allow stakeholders to know about operating performance, financial position, key developments and information such as financial statements, annual report and disclosure Form 56-1, in both Thai and English language. Such information is available on websites of relevant authorities such as the Stock Exchange of Thailand (SET) and the Securities Exchange Commission (SEC) as well as on the Company没s website www.deltathailand.com. Interest persons may telephone or email to request for more information at info@deltathailand.com. The Company also has investor relations unit to provide information to shareholders, investors, securities analysts, and others and they can be reached at investor@deltathailand.com. In 2011, the Company organized press conference quarterly to clarify its operating results to securities analysts, reporters and general investors and for those people to meet with its executives in a bid to nurture confidence of all stakeholders. Additional meetings were also arranged by Investor Relations unit from time to time in order to provide information to both local and oversea securities analysts and investors. Annual Report 2011

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Responsibilities of the Board Structure of the Board The Board of Directors comprises nine directors, four of whom are executive directors, 2 are non-executive and the other three are independent directors which accounts for one-third of the board. Qualifications of independent director have been set to meet the criteria ruled by the SEC . Currently, Chairman of the Board and the President are held by two individuals with clearly separated responsibilities. Roles and responsibility of the Board and management are also distinctively defined so as to ensure management transparency. (Please find details of the Board structure, names, and scope of duties in the section of Managerial Structure). Directorûs Term of office At the annual general meeting of shareholders, one-third of the directors or close to one-third must vacate from the office. A director who vacates from office by rotation is eligible for re-election. The meeting of shareholders may pass a resolution to remove any director prior to retirement by rotation by a vote of not less than three-fourths (3/4) of the number of shareholders attending the meeting and having the right to vote and having shares in aggregation of not less than a half of the number of shares held by shareholders attending the meeting and having the voting rights. At the 2011 Annual General Meeting of Shareholders, the retired directors, Mr. Ming-Cheng Wang, Mr. Anusorn Muttaraid and Emeritus Professor Supapun Ruttanaporn were re-appointed. Sub-Committee The Board of Directors appointed sub-committees to help study, scrutinize, and to give opinion on various matters. At present, there are four sub-committees including executive committee, audit committee, compensation committee and risk management committee. Following function units have been established to support the committees. ë Company secretary The Board of Directors appointed Ms. Duangrat Lertvorasirikul and Ms. Wilailak Fungthanakun the Company Secretary. Their main responsibilities are: to prepare meetings, inform and advise on relevant law and regulations, take care of the Boardûs activities, and coordinate to ensure that the Boardûs resolutions are put into practice. All are to facilitate efficiency of the Boardûs administration in order to comply with good corporate governance principle and other responsibilities as required by law. ë

Internal Audit The Internal audit department has been established for over 10 years with the main objective to support the Audit Committee who oversees internal audit tasks. They will help assess adequacy and efficiency of internal control as well as risk management. The Internal Audit reports directly to and works as assigned by the Audit Committee


The Boardûs Meeting The Company schedules the board meeting at least four times a year or on a quarterly basis. An extraordinary meeting may be arranged when there is an issue to consider. The regular meeting date will be set in advance for the entire year. At least seven days prior to the meeting date, the Company will send out invitation letter with agenda to all directors, In case of emergency, invitation letter may be less than seven days. Each director is free to propose agenda. Company secretary has duties to arrange the meeting, take care and give suggestion to ensure that the meeting is in compliance with all relevant laws and regulations, minutes of meeting will be put in writing, and those endorsed by the Board are kept as evidence at the Companyûs office. The independent directors may hold a meeting without attendance of management as it sees appropriate. Normally, meeting of the Audit Committee is held without executive participation. The Companyûs auditor generally attends the Audit Committee meeting on a quarterly basis when reviewing financial statements. In some circumstances, the Audit Committee may request particular executive to clarify issue as it sees fit. Guidelines for Determination of Director and Executive Remuneration The Compensation Committee will determine remuneration of directors, sub-committee members, the President and the Executives, and propose to seek approval from the board of directors. For compensation of the board of director and sub-committee, it requires approval from the shareholdersû meeting. Follows are some key guidelines; 1. Guidelines for Director and Sub-Committee Remuneration 1.1 Remuneration package must be reasonable in order to attract and retain competence director. Major factors to determine director remuneration include ë Scope of works and responsibilities ë Current market rate ë The Companyûs overall performances ë Others specified by the compensation committee or the Board 1.2 Remuneration may be entirely fixed or partially fixed with some variable amount such as meeting allowance or other incentives. 2. Guidelines for the President and Executive Remuneration 2.1 Remuneration package must be reasonable in order to attract, retain, and motivate the executive to work at their best. 2.2 The compensation committee must define Key Performance Indicators (KPI) to help assess performance of the executives and propose to the Board for approval before end of each fiscal year. 2.3 Consideration to adjust remuneration or annual salary will depend upon KPI achievement and other accomplishments. 2.4 Determination of remuneration should take into account the current market rate. Market survey or advice from human resource professional may be used in consideration and at the expense of the Company. (Please find details of the remuneration of directors and executives in the section of Managerial Structure).

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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Performance Assessment of the President The Board assigns the compensation committee to determine and propose Key Performance Indicators (KPI) of the President. The KPI must be approved by the board and be reviewed annually. Appraisal results will be submitted to the Board on a quarterly basis. Risk Management In the past year, the Risk Management Committee summarized that there were 2 major areas of risk that might affect the Company and had proposed risk management plans to the Board of Directors. Those risks included 1) European public debt crisis. This risk would create a currency fluctuation and adversely affect the Companyûs earnings 2) Thailandûs flooding crisis which may result in domestic raw material shortage and affect the Companyûs business operation because both two factories are located in risky areas (Bangpoo Industrial Estate, Samutprakarn and Wellgrow Industrial Estate, Chacherngsao) which might be used as water draining zone. An ad hoc working team had been established to closely monitor and evaluate the flooding situation. This was to ensure a good preparation and help mitigate possible detrimental impacts. With the proactive plans to handle those uncertainties, so far, none has created significantly impact to Companyûs business operation. Training for the Board and Management The Company has a policy to encourage directors, executives and the Company secretary to continuously train on good corporate governance, both organized internally or externally by relevant institutions such as the SET, the SEC and the Thai Institute of Directors Association (IOD). In 2011, Mr. Supat Limpaporn, the Companyûs independent director and audit committee member joined Audit Committee Program (ACP) of Thai Institute of Directors Association (IOD). The Regional Leadership Talent Development Program (RLTD) above-mentioned is also part of the management training program that consequently build up a new management generation.

Audit Fee The audit fee paid for the year 2011 to its auditor is approximately Baht 4,850,000 including all actual out of pocket expenses. (Audit fee in 2010 amounted to Baht 4,745,342 including all actual out of pocket expenses). The Company and some of its subsidiaries hire the same international audit firm but different branch offices in various countries as all of the Companyûs subsidiaries are abroad. Other subsidiaries (most of which are in Europe) use the services provided by Pricewaterhouse Coopers (PWC) and the rest of them employ other audit firms to provide them with the audit services. Selection criteria of its auditor principally are based upon the service quality and charge rate of the auditor.


Related Party Transactions The Company and its subsidiaries have engaged into business transactions with their related companies in Delta group. The major transactions and reasons for having such related party transactions can be summarized as follows. 1. Sales of goods/raw materials In order to manage trade constraints in certain countries for either the Company or its customers e.g. local content requirements, Delta group has established its trade network in local area for better service to customers as well as to enhance its business opportunities in those countries. The transactions are made based on certain trade agreement or with reference to market price. Sales of raw material are normally due to the urgent needs of some raw materials from the related companies and the selling prices are based on the market price or cost of the materials sold. 2.

Purchase of goods/raw materials Currently Delta Thailand has also expanded its trade network through its subsidiaries which are located in major regions. To offer a full range of products, those subsidiaries may have to purchase some products from related companies to serve their clients. However, the transactions are made based on certain trade agreement which may also include their operating costs, or with reference to market price. Delta group has set up material network in order to create bargaining power for better price and availability for the group members. Purchase price of raw material is generally charged based on cost plus other actual out of pocket expenses such as insurance, freight and others. Handling fee is charged based on value of purchase/sale transaction and considered general business condition.

3.

Commissions Since various services are generally required to serve the global clients, the Company needs to offer such services to customers in the area where they are located in. This makes Delta group to establish business network which enables the Company to have customer relations offices worldwide to provide effective marketing and after sales services to its clients at the competitive costs. Commissions are normally charged based on transaction size (e.g. sales or purchase amount) and considered general business condition.

4.

Service fee Currently the operations of the Company没s subsidiaries, have covered several regions, especially Europe. Some related companies, occasionally request for supports from some of those subsidiaries to provide some services such as reworking, tooling service and others to their clients. Service fees are generally based on the estimated man hour used for each service.

Procedures for related party transactions Procedures for related party transactions are principally based on the notification of the Capital Market Supervisory Board re Connected Transactions. According to the said notification, business transactions are generally classified into 6 major categories:

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Delta Electronics (Thailand) Public Company Limited

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1. 2. 3. 4. 5. 6.

1.

2.

Normal business transactions Supporting normal business transactions Rent or lease of immovable property (not more than 3 years) Sale/purchase of asset or service Offer or receipt of financial assistance Transactions other than 1-5 Procedures for each business category are established and summarized as follows; In case of normal business and supporting normal business transactions, the Board of Directors has approved in principle that such transactions can be done under normal/ general business terms and conditions which the Company and/or its subsidiaries performs with other general parties without any control or influences from the related parties. In case of other business categories, the related party transactions shall be classified by its transaction size and are required to follow below procedures. ë Small sized transaction, being the transaction with the size of not more than Baht 1 million or 0.03% of net tangible assets (NTA), whichever is higher, requires the managementûs approval. ë Medium sized transaction, being the transaction with the size of greater than Baht 1 million but less than Baht 20 million, or greater than 0.03% but less than 3% of NTA, whichever is higher (except Item 5: Financial assistance that its size is less than Baht 100 million or 3% of NTA, whichever is lower), requires board of directorsû approval and information disclosure. ë Large sized transaction, being the transaction with the size of Baht 20 million and higher or 3% of NTA and higher, whichever is higher (except Item 5: Financial assistance that its size is equal to Baht 100 million and higher or 3% of NTA or higher, whichever is lower), requires board of directorsû approval, shareholdersû approval and information disclosure.

For other details and definitions, the Company will perform according to the relevant notification as mentioned above. In addition, the Audit Committee generally reviews and discusses about the related party transactions with the Companyûs external auditor in order to help protect conflicts of interest and see if the related party transactions are adequately and properly disclosed. Policy for the related party transactions The Company and its subsidiaries still need to do the business with the related parties in the future as it is considered normal course of business. Moreover, supports from the groupûs network help strengthen the Companyûs business and improve its competitiveness in the world market and will utmost benefit the Company. The Company shall comply with rules, regulations and notifications of the Capital Market Supervisory Board and other relevant authorities re Connected Transactions and also adequately disclose the transaction in the Companyûs quarterly and annual financial statements.


The Audit Committee Report 2011 The Audit Committee consists of three independent directors: Emeritus Professor Supapun Ruttanaporn as Chairperson, Khun Supat Limpaporn, and Assistant Professor Liu, Heng-Yih (during January - March 2011) and Professor Lee Ji-Ren (from April to December 2011) as Committee member with the Internal Audit Manager as its secretary. During the year 2011, the Audit Committee held 9 meetings, of which Emeritus Professor Supapun Ruttanaporn and Khun Supat Limpaporn attended all the meetings while Assistant Professor Liu, Heng-Yih attended 2 meetings, and Professor Lee Ji-Ren, attended 5 meetings and via tele-conference 2 meetings. The Audit committee performed its work during the year according to the Audit Committee Charter, which complied to the guidelines of the Stock Exchange of Thailand, and fulfilled the matters assigned by the Board of Directors as follows: 1. Reviewed the quarterly and year-end financial statements independently with the external auditors to ensure that the financial statements and the disclosures were accurate, appropriate, and reliable, and then submitted them to the Board of Directors. 2. Reviewed and evaluated the Company internal control whether it is adequate and appropriate. The committee had not been reported that the Company internal control had any significant deficiency. 3. Reviewed and improved the Internal Audit Charter and evaluated the performance of the Internal Audit (IA) department. The Audit Committee suggested the department to improve its performance to be more efficient and effective and to revise the key performance indicators of the Internal audit manager to be in line with the IA Charter. 4. Reviewed the Charter of the Audit Committee and modified it to be complied with the relevant laws and regulations. 5. Reviewed that the Company complied to relevant laws and regulations. The Audit Committee was of the opinion that the Company had proper practices in this matter. 6. Reviewed the related transactions or the conflict of interest transactions together with the external auditors that these transactions were reasonable, properly and fully disclosed, including reviewing the internal control of these transactions. 7. Considered the proficiency and the independence of the external auditor and propose to the Board of Directors including the audit fee in order to propose for approval in the Annual General Shareholder Meeting. The Audit Committee proposed to reappoint Ernst & Young Office Limited as the Company auditor for the accounting period ended December 31st, 2012 by Mr. Supachai Phanyawattano, CPA. No. 3930, or Miss Thipawan Nananuwat, CPA. No. 3459, or Miss Supannee Triyanantakul, CPA. No. 4498 from Ernst & Young Office Limited with the audit fee of Baht 4,400,000 plus some out-of pocket expenses. 8. In 2009 the Company没s Board of Directors approved its Risk Management policy as suggested by the Audit Committee in order that the risks of the Company were effectively managed. In 2011, the Audit Committee reviewed the Risk Management on foreign exchange risk with the Chief Finance Officer and was of the opinion that the Company had appropriate policy and methods to manage the risk. Moreover, the Audit Committee would like to report that in 2011 the world economy still was not good due to the economic problems in the US and some European countries. As a result, the Company没s overall operation was much lower than the Company budget. However, the Board of Directors and the management have put their best efforts to improve the situation in order to create the highest returns as possible for our stakeholders.

Emeritus Professor Supapun Ruttanaporn Chairperson Annual Report 2011

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Management Discussion and Analysis Year 2009 - 2011 Financial highlights (Consolidated) Total assets Total liabilities Shareholders没 equity Registered capital Paid-up capital Financial ratios Liquidity ratios Liquidity ratio Quick ratio Cash ratio Receivable turnover Average collection period Inventory turnover Inventary Holding period Account payable turnover Average payable period Cash Conversion Cycle Profitability ratios Sales Gross profit Gross profit margin Operating expenses (include R&D) Operating expenses (include R&D) to sales Operating profit margin Other income to total income Net profit Net profit margin Net profit to total revenues Return on equity Efficiency ratios Return on assets Return on fixed assets Asset turnover Financial policy ratios Debt to equity Interest coverage ratio Dividend payout ratio

Baht million Baht million Baht million Baht million Baht million

2009 27,085 9,437 17,648 1,259 1,247

2010 29,611 10,313 19,298 1,259 1,247

2011 29,884 10,024 19,859 1,259 1,247

Times Times Times Times Days Times Days Times Days Days

2.53 1.97 0.50 4.71 76 4.92 73 4.42 81 68

2.48 1.67 0.26 6.13 59 5.09 71 5.24 69 61

2.62 1.84 0.32 5.91 61 4.73 76 5.69 63 74

Baht million Baht million (%) Baht million (%) (%) (%) Baht million (%) (%) (%)

26,995 7,084 26.24% 4,634 17.17% 9.08% 0.99% 2,190 8.11% 8.03% 12.70%

35,730 9,513 26.63% 5,560 15.56% 11.06% 1.31% 4,180 11.70% 11.55% 22.63%

38,434 9,041 23.52% 6,448 16.78% 6.75% 1.83% 2,864 7.45% 7.32% 14.63%

(%) (%) Times

8.12% 76.43% 1.01

14.75% 122.70% 1.28

9.63% 80.67% 1.32

Times Times (%)

0.53 53.56 85.46%

0.53 42.71 51.07%

0.50 34.50 52.26%*

* in the process to seek approval from the 2012 Annual General Meeting of shareholders


Sales Disasters occurred in 2011 such as earthquakes and tsunamis in Japan and flood crisis in Thailand had adverse effect on various manufacturers in electronics business and other industries around the world but there was very minimal impact on Delta. On the contrary, sales in 2011 increased to Baht 38,434 million from Baht 35,730 million in 2010. However, compared to prior year, sales growth in 2011 of 7.6% was much lower than 2010 of 32.4%. Major contribution in 2011 sales is primarily from Pan PSBG products (comprising adapter, power supply for computer networks, DC and DC converter) and IESBG products, comprising mainly Telecom Power Systems. The growth of the latter group was due to sales expansion in South America and Europe, Revenues from solar inverter, a business of DES product line, decreased sharply from last year by 63% after it grew tremendously in the past year as a result of the Euro zone public debt crisis which led government in those countries be prudent in spending budget and accordingly reduced subsidies on renewable energy sector. All these caused direct impact on demands of renewable energy products, including solar energy and consequently affected the sales of solar inverter. However, with a strong support from sales of other products in the group, including high-end power supplies for various industries, overall DES business line was not significantly affected. Its revenues dropped only 6.5% from 2010. Electronic component products (CPBG) grew slightly by 5%, and cooling fan (FMBG) dropped 3% from prior year because of a slowdown in telecommunication industry which currently is one of the key industries of this product line. Cost of Sale and Expenses Impact from decreasing demand of solar inverter as above-mentioned did not only cause lower sales but also increased inventory and provisions for the slow moving items. This directly affected the increase in cost of sale which significantly rose to 76.5% of sales in 2011, from 73.4% in 2010, and 73.8% in 2009. SG&A to sales (excluding R&D) increased to 11.3% in 2011, from 10.6% in 2010, but closed to the level in 2009 of 11.4%. This is mainly because of hike of selling expense to 7.3% of sales from 6.6% in previous year. The increase was due to the earlier planned business expansion and executed this year by setting up of new sales offices and recruitment of sales personnel. In addition, the Company developed several new products such as converter for wind turbine and some products for electrical vehicles resulting in an increase in R&D expense from 5.0% of sales in 2010 to 5.4% but slightly lower than 2009 of 5.7%. Profits Gross margin in 2011 declined to 23.5% from 26.2% and 26.6% in 2009 and 2010 in accordance with high cost of sales above-mentioned. Together with increase of SG&A (inclusive of R&D expense) to sales, operating profit margin in 2011 declined to 6.8% from 9.1% in 2009 and 11.1% in 2010. Public debt crisis in Europe caused high fluctuations in major currencies both Euro and US dollar and consequently Baht and other currencies. With prudent policy, the Company continues to put in place a net position hedging policy for all currency exposures to ensure adequate protection from volatile currencies and therefore resulted foreign exchange gains worth Baht 138.6 million in 2011, compared to Baht 85 million gains in 2010 and Baht 6.9 million loss in 2009. In the Annual Report 2011

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meantime, rising interest rate in money market gave rise to higher interest income of Baht 124.6 million from Baht 59.5 million in 2010 and Baht 71.4 million in 2009. In addition, the Company booked gains from sale of investments in associated companies, Delta Green (Tianjin) Industries Co Ltd of Baht 84.3 million and also recorded dividend from its subsidiaries, Delta Greentech (China) Co Ltd of Baht 114.3 million. In all, impact of the slowdown in global economy caused the Euro-zone public debt crisis had affected the Company没s operations as discussed above and brought net profit in 2011 down by 31% to Baht 2,864 million from Baht 4,180 million in 2010 but it was slightly higher than 2009 of Baht 2,190 million. Financial position As shown in the consolidated financial statements of the Company as of 31 December 31 2011, the Company remains financially strong with higher assets and shareholders没 equity, continuing low debt, and adequate liquidity. The analysis is organized by components of balance sheet as followed; Assets Cash and current assets Current assets remained the highest proportion of total assets or approximately 78% similar to the previous two years ago. Cash or cash equivalent increased slightly to Baht 9,513 million in 2011 from Baht 9,207 million in 2010 but declined when compared to 2009 of Baht 10,553 million. The increase was a combined results of cash generated from operations, sale of investments in associated company, and dividend from a related company mentioned above. Accounts receivable also rose in relation to the increase of sales to Baht 6,834 million, from Baht 5,485 million in 2009 and Baht 6,163 million in 2010. Duration of accounts receivable collection period in 2011 slightly increased to 61 days compared to 2010 of 59 days but better than 2009 of 76 days. As to inventory, even the net value of inventory at the end of 2011 of Baht 5,952 million was lower than 2010 of Baht 6,468 million but with the higher cost of sale caused by high provisions of the solar inverter products following adverse effect of the declining demand, inventory turnover period rose to 76 days from 73 days in 2009 and 71 days in 2010. Period of accounts payable on average for 2011 reduced to 63 days from 81 days in 2009 and 69 days in 2010. With longer time of accounts receivable collection and faster payment to creditors, Cash Conversion Cycle (CCC) increased to 74 days from 68 days and 61 days in 2009 and in 2010 respectively. Non-current assets As of 31 December 2011, the Company and subsidiaries had total non-current assets worth Baht 6,630 million, representing approximately 22% of total assets similar to the previous two years. The major item remained land, plant and equipment with net book value of Baht 4,727 million which increased 12% from 2010 and 30% from 2009 mainly because of the acquisition of new buildings, and machinery & equipment for DES and automotive product line expansions in Thailand factory. There were also construction of building at subsidiary company, Delta Green Industrial (Thailand) Co., Ltd. together with office building and some machines in India.


Since the Company had disposed of its investment in the Delta Green (Tianjin) Industries worth approximately USD 15.45 million for 50% stake, there is no investments in associated companies left in 2011. For other long-term investment, the balance was similar to the previous year, or Baht 425 million in 2011 compared to Baht 408 million in the year 2010. Intangible assets, which mainly patent rights, increased slightly to Baht 750 million from Baht 727 million in 2010 due to purchase of additional computer software by some of the subsidiaries. The other intangible asset, consolidation goodwill, remained Baht 307 million, the same amount booked two years ago. Such goodwill is a result of the acquisition of Ascom Energy Systems took place in 2003. Impairment test on the goodwill is performed annually by an independent financial adviser. Liabilities Liabilities of the Company and its subsidiaries as of 31 December 2011 totaling Baht 10,024 million was 3% lower than 2010 of Baht 10,313 million and 6% lower than 2009 of Baht 9,437 million. The major item that declined was current liabilities or accounts payable. Current liabilities and liquidity Current liabilities at the end of 31 December 2011 amounted to Baht 8,889 million, decreased approximately 3% from Baht 9,186 million in 2010 but increased 8% from Baht 8,218 million in 2009 due to decline of accounts payable. Bank overdrafts and short-term loans from financial institutions decreased continuously to Baht 1,022 million in 2011 from Baht 1,319 million in 2009 and Baht 1,145 million in 2010 because of debt repayment of subsidiaries following capital raising in a bid to strengthen overall financial status. During In the past three years, 2009-2011, the Company没s liquidity remained relatively high and adequate at a current ratio of 2.62 times in 2011, slightly higher than 2.48 times in 2009 and 2.53 in 2010, and quick ratio was also maintained at a high level at 1.84 times (1.68 times in 2010 and 1.97 times in 2009). Shareholders没 equity Total shareholders没 equity of the Company as of 31 December 2011 further increased to Baht 19,859 million from Baht 19,298 million in 2010 and Baht 17,648 million in 2009, despite consistent dividend payment every year. However, due to decline of net profit in 2011, return on equity reduced to 14.6%, from 2010 of 22.6% but higher than 2009 of 12.7%. Debt to equity ratio remained low at 0.50 times compared to 0.53 times in 2009 and 2010, representing that the Company has maintained a proper and low leverage financial structure.

Annual Report 2011

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Delta Electronics (Thailand) Public Company Limited

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Responsibility of the Board of Directors to the Financial Statements The Board of Directors of Delta Electronics Public Company Limited is responsible for the financial statements of the Company and its subsidiaries which have been prepared in accordance with Thailand没s generally accepted accounting standards. The appropriate accounting policies are applied consistently with adequate disclosure of material information in the notes to the financial statements. The Board of Directors has assigned the Audit Committee which is composed of all independent directors to review the quality of financial statements and the effectiveness of the internal control system to ensure that accounting records are booked properly and accurately in order to safeguard the Company没s assets. The opinions of the Audit Committee have been reported in the annual report. Furthermore, the Company没s external auditor has also provided their opinions on the financial statements of the Company and its subsidiaries in the auditor没s report which has also been disclosed in the annual report.

Ng Kong Meng (James) Chairman of the Board On behalf of Board of Directors


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Delta Electronics (Thailand) Public Company Limited and its subsidiaries Notes to consolidated financial statements For the years ended 31 December 2011 and 2010 1.

Corporate information Delta Electronics (Thailand) Public Company Limited (“the Company”) is a public company incorporated and domiciled in Thailand. Its major shareholder is Deltron Holding Limited, which is incorporated in the Channel Islands. The Company is principally engaged in the manufacture and distribution of electronic products. The registered office of the Company is at 714 Moo 4, Tambon Prakasa, Amphur Muangsamutprakarn, Samutprakarn.

2.

Basis of preparation

2.1

The financial statements have been prepared in accordance with accounting standards enunciated under the Accounting Profession Act B.E. 2547, except for the early adoption of TAS No. 12 “Income Taxes”. The presentation of the financial statements has been made in compliance with the stipulations of the Notification of the Department of Business Development dated 28 September 2011, issued under the Accounting Act B.E. 2543. The financial statements in Thai language are the official statutory financial statements of the Company. The financial statements in English language have been translated from the Thai language financial statements. The financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies.

2.2

Basis of consolidation 2.2.1

The consolidated financial statements include the financial statements of Delta Electronics (Thailand) Public Company Limited (“the Company”) and the following subsidiary companies (“the subsidiaries”): Country of

Company’s name

DET International Holding Limited

Nature of business

incorporation

Percentage of shareholding 2011

2010

Percent

Percent

100

100

100

100

Manufacture and distribution of electronic products Thailand

100

100

Holding business

100

-

Holding business

The Cayman Islands

Delta Energy Systems (Switzerland) AG

Holding business, manufacture, trading, research

Switzerland

and development of electronic products Delta Green Industrial (Thailand) Company Limited Delta Energy Systems (Singapore) Private

Singapore

Limited

Annual Report 2011

75


Delta Electronics (Thailand) Public Company Limited

76

The subsidiaries which the Company owns through DET International Holding Limited are as follows: Companyâ&#x20AC;&#x2122;s name

Nature of business

Country of

Percentage of indirect

incorporation

shareholding 2011

2010

Percent

Percent

DET Logistics (USA) Corporation

Trading of electronic products

USA

100

100

DET Video Technology Limited

Trading of electronic products

The British Virgin Islands

100

100

Delta Energy Systems (Slovakia) s.r.o.

Manufacture and trading of

Slovakia

100

100

Slovakia

100

100

Germany

100

100

Engineering and Marketing

Switzerland

100

100

Delta Energy Systems (India) Private Limited

Manufacture and trading of

India

100

100

Delta Energy Systems (Romania) S.R.L.

Research and development of

Romania

100

100

USA

100

100

electronic products Delta Electronics (Slovakia) s.r.o.

Manufacture and trading of

Delta Energy Systems (Germany) GmbH.

Research, development and

electronic products

trading of electronic products Delta Renewable Energy Systems (Switzerland) AG (owned by Delta Energy Systems (Germany) GmbH.)

electronic products

electronic products Delta Energy Systems (Arizona) Inc.

Research and development of electronic products

Delta Electronics Europe Limited

Trading of electronic products

Scotland

100

100

DET SGP Pte. Ltd.

Holding business and marketing

Singapore

100

100

Delta India Electronics Private Limited

Manufacture and trading of

India

100

100

and after sales services

(owned by DET SGP Pte. Ltd.)

electronic products

Delta Greentech International Holding Limited

Holding business

The Cayman Islands

100

100

Delta Greentech SGP Pte. Ltd.

Holding business

Singapore

100

100

Trading of electronic products

Hong Kong

100

100

Holding business

Singapore

100

-

Manufacture and trading of

India

100

100

Holding business

The Netherlands

100

100

Holding business

The Netherlands

100

100

(owned by Delta Greentech International Holding Limited) Delta Greentech (Hong Kong) Limited. (owned by Delta Greentech SGP Pte. Ltd.) Delta Greentech International (Singapore) Pte. Ltd. (owned by Delta Greentech International Holding Limited) Delta Power Solutions (India) Private Limited (owned by Delta Greentech International

electronic products

(Singapore) Pte. Ltd.) Delta Greentech (Netherlands) Cooperatie U.A. (owned by Delta Greentech International Holding Limited) Delta Greentech (Netherlands) BV. (owned by Delta Greentech (Netherlands) Cooperatie U.A.)


Company’s name

Delta Greentech Electronics Industry LLC. (owned by Delta Greentech (Netherlands) BV.) Delta Greentech (USA) Corporation (owned by Delta Greentech (Netherlands) BV.) Delta Greentech (Brazil) S.A. (owned by Delta Greentech (Netherlands) BV.) Delta Greentech (Curitiba) Limited

Nature of business

Manufacture, marketing and

Country of

Percentage of indirect

incorporation

shareholding 2011

2010

Percent

Percent

Turkey

100

100

USA

100

100

Brazil

100

100

Brazil

100

100

distribution of electronic products Manufacture and trading of electronic products Manufacture and trading of electronic products Engineering

(owned by Delta Greentech (Brazil) S.A.)

The subsidiaries which the Company owns through Delta Energy Systems (Switzerland) AG are as follows:

Company’s name

Nature of business

Country of

Percentage of indirect

incorporation

shareholding 2011

2010

Percent

Percent

Delta Energy Systems (Czech republic) spol.s.r.o.

Trading of electronic products

Czech Republic

100

100

Delta Energy Systems (Spain)S.L.

Trading of electronic products

Spain

100

100

Delta Energy Systems (France) S.A.

Trading of electronic products

France

100

100

Delta Energy Systems (Italy) s.r.l.

Trading of electronic products

Italy

100

100

Delta Energy Systems (Sweden) AB.

Trading of electronic products

Sweden

100

100

Delta Energy Systems (Finland) Oy.

Manufacture and trading of

Finland

100

100

-

51

electronic products Delta Energy Systems (Guangzhou) Limited

Dissolved and liquidated

The People’s Republic of China

Delta Energy Systems (Poland) Sp.z.o.o

Trading of electronic products

Poland

100

100

Delta Energy Systems LLC.

Trading of electronic products

Russia

100

100

The subsidiary which the Company owns through Delta Energy Systems (Singapore) Private Limited is as follow:

Company’s name

Delta Energy Systems (Australia) Pty. Ltd.

Nature of business

Marketing and after sales services

Country of

Percentage of indirect

incorporation

shareholding

Australia

2011

2010

Percent

Percent

100

Annual Report 2011

-

77


Delta Electronics (Thailand) Public Company Limited

2.2.2

During the current year, Delta Energy Systems (Guangzhou) Limited, a

subsidiary, which the Company indirectly held 51% of its shares, was dissolved and liquidated. 2.2.3

The meeting of the Company’s Board of Directors held on 14 February 2011 approved the incorporation of the following overseas subsidiaries. -

Delta Energy Systems (Singapore) Pte. Ltd., registered in Singapore with USD 250,000 registered capital and its registered capital is 100% held by the Company.

-

Delta Energy Systems (Australia) Pty. Ltd., registered in Australia with AUD 200,000 registered capital and its registered capital is 100% held by Delta

78

Energy Systems (Singapore) Pte. Ltd. -

Delta Greentech International (Singapore) Pte. Ltd., registered in Singapore with USD 27,203,800 registered capital and its registered capital is 100% held by Delta Greentech International Holding Limited.

All the above subsidiaries were registered their incorporation during the current year. 2.2.4

Subsidiaries are fully consolidated, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases.

2.2.5

The financial statements of the subsidiaries are prepared using the same significant accounting policies as the Company.

2.2.6

The assets and liabilities in the financial statements of overseas subsidiary companies are translated to Baht using the exchange rate prevailing on the end of reporting period, and revenues and expenses translated using monthly average exchange rates. The resulting differences are shown under the caption of “Exchange differences on translation of financial statements in foreign currency” in the statements of changes in shareholders’ equity.

2.2.7

Material balances and transactions between the Company and its subsidiary companies have been eliminated from the consolidated financial statements.

2.2.8

Non-controlling interests represent the portion of profit or loss and net assets of the subsidiaries that are not held by the Company and are presented separately in the consolidated profit or loss and within equity in the consolidated statement of financial position.

2.3

The separate financial statements, which present investments in subsidiary companies under the cost method, have been prepared solely for the benefit of the public.


3.

Adoption of new accounting standards during the year During the current year, the Company and its subsidiaries adopted a number of revised and new accounting standards, issued by the Federation of Accounting Professions, as listed below. Accounting standards: TAS 1 (revised 2009)

Presentation of Financial Statements

TAS 2 (revised 2009)

Inventories

TAS 7 (revised 2009)

Statement of Cash Flows

TAS 8 (revised 2009)

Accounting Policies, Changes in Accounting Estimates and Errors

TAS 10 (revised 2009)

Events after the Reporting Period

TAS 16 (revised 2009)

Property, Plant and Equipment

TAS 18 (revised 2009)

Revenue

TAS 19

Employee Benefits

TAS 23 (revised 2009)

Borrowing Costs

TAS 24 (revised 2009)

Related Party Disclosures

TAS 26

Accounting and Reporting by Retirement Benefit Plans

TAS 27 (revised 2009)

Consolidated and Separate Financial Statements

TAS 28 (revised 2009)

Investments in Associates

TAS 33 (revised 2009)

Earnings per Share

TAS 34 (revised 2009)

Interim Financial Reporting

TAS 36 (revised 2009)

Impairment of Assets

TAS 37 (revised 2009)

Provisions, Contingent Liabilities and Contingent Assets

TAS 38 (revised 2009)

Intangible Assets

Financial reporting standards: TFRS 2

Share-Based Payment

TFRS 3 (revised 2009)

Business Combinations

TFRS 5 (revised 2009)

Non-current Assets Held for Sale and Discontinued Operations

These accounting standards do not have any significant impact on the financial statements. However, during the current year, the Company and its subsidiaries have assessed the revised and new accounting standards issued by the Federation of Accounting Professions as listed below. They believe that these standards are not relevant to the business of the Company and its subsidiaries.

Annual Report 2011

79


Delta Electronics (Thailand) Public Company Limited

Accounting standards: TAS 11 (revised 2009)

Construction Contracts

TAS 17 (revised 2009)

Leases

TAS 29

Financial Reporting in Hyperinflationary Economies

TAS 31 (revised 2009)

Interests in Joint Ventures

TAS 40 (revised 2009)

Investment Property

Financial reporting standards: TFRS 6

Exploration for and Evaluation of Mineral Resources

Financial Reporting Standard Interpretation: TFRIC 15

80

Agreements for the Construction of Real Estate

Accounting Standard Interpretation: SIC 31

Revenue - Barter Transactions Involving Advertising Services

4.

New accounting standards issued during the years not yet effective The Federation of Accounting Professions issued the following new/revised accounting standards that are effective for fiscal years beginning on or after 1 January 2013. Accounting standards: TAS 12

Income Taxes

TAS 20 (revised 2009)

Accounting for Government Grants and Disclosure of Government Assistance

TAS 21 (revised 2009)

The Effects of Changes in Foreign Exchange Rates

Accounting Standard Interpretations: SIC 10 Government Assistance - No Specific Relation to Operating Activities SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets SIC 25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders The management of the Company and its subsidiaries believe that these accounting standards will not have any significant impact on the financial statements for the year when they are initially applied. However, the Company has early adopted the new TAS N0. 12 â&#x20AC;&#x153;Incomes Taxesâ&#x20AC;? before the effective date.


5.

Significant accounting policies

5.1

Revenue Recognition Sales of goods Sales of goods are recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are the invoiced value, excluding value added tax, of goods supplied after deducting discounts and allowances. Rendering of services Service revenue is recognised when services have been rendered taking into account the stage of completion. Interest income Interest income is recognised on an accrual basis based on the effective interest rate.

5.2

Cash and cash equivalents Cash and cash equivalents consist of cash in hand and at banks, and all highly liquid investments with an original maturity of three months or less and not subject to withdrawal restrictions.

5.3

Trade and other receivables Trade and other receivables are stated at the net realisable value. Allowance for doubtful accounts is provided for the estimated losses that may be incurred in collection of receivables. The allowance is generally based on collection experiences and analysis of debt aging.

5.4

Inventories Finished goods and work in process are valued at the lower of standard cost (which approximates actual cost) and net realisable value. Actual cost includes all production costs and attributable factory overheads. Raw materials are valued at the lower of standard cost (which approximates actual cost) and net realisable value and are charged to production costs whenever consumed.

Annual Report 2011

81


Delta Electronics (Thailand) Public Company Limited

5.5

Investments a)

Investment in associated company is accounted for in the consolidated financial statements using the equity method.

b)

Investments in subsidiary companies are accounted for in the separated financial statements using the cost method net of allowance for loss on diminution in value (if any).

c)

Investments in the ordinary shares of other companies, which the Company classifies as other investments, are stated at cost net of allowance for loss on diminution in value (if any).

On disposal of an investment, the difference between net disposal proceeds and the

82

carrying amount of the investment is recognised in profit or loss. 5.6

Property, plant and equipment/Depreciation Land is stated at cost. Buildings and equipment are stated at cost less accumulated depreciation and allowance for loss on impairment of assets (if any). Depreciation of plant and equipment is calculated by reference to their costs on a straight-line basis over the following estimated useful lives: Building

20 - 50

years

Land improvement

1 - 10

years

Machinery and equipment

5 - 20

years

Molds and toolings

2 - 10

years

Installation

1 - 20

years

Furniture, fixtures and office equipment

5 - 10

years

Computer

2-5

years

Motor vehicles

3-5

years

Depreciation is charged to profit or loss. No depreciation is provided on land and construction in progress. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on disposal of an asset is included in profit or loss when the asset is derecognised.


5.7

Intangible assets Intangible assets are initially recognised at cost. Following initial recognition, they are carried at cost less any accumulated amortisation and any accumulated impairment losses (if any). Intangible assets with finite lives are amortised on a systematic basis over the economic useful life and tested for impairment whenever there is an indication that they may be impaired. The amortisation period and the amortisation method of such intangible assets are reviewed at least at each financial year end. The amortisation expense is charged to profit or loss. The useful life of patents is approximately 20 years.

5.8

Goodwill Goodwill is initially recorded at cost, which equals to the excess of cost of business combination over the fair value of the net assets acquired. If the fair value of the net assets acquired exceeds the cost of business combination, the excess is immediately recognised as gain in profit or loss. Goodwill is carried at cost less any accumulated impairment losses (if any). Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the Companyâ&#x20AC;&#x2122;s cash-generating units (or group of cash-generating units) that are expected to benefit from the synergies of the combination. The Company estimates the recoverable amount of each cash-generating unit (or group of cashgenerating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised in profit or loss. Impairment losses relating to goodwill cannot be reversed in future periods.

5.9

Related party transactions Related parties comprise enterprises and individuals that control, or are controlled by, the Company and its subsidiaries, whether directly or indirectly, or which are under common control with the Company and its subsidiaries. They also include associated companies and individuals which directly or indirectly own a voting interest in the Company and its subsidiaries that gives them significant influence over the Company and its subsidiaries, key management personnel and directors with authority in the planning and direction of the Company and its subsidiariesâ&#x20AC;&#x2122; operations.

Annual Report 2011

83


Delta Electronics (Thailand) Public Company Limited

84

5.10 Foreign currencies Transactions in foreign currencies are translated into Baht at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Baht at the exchange rate ruling at the end of reporting period. Gains and losses on exchange are charged to profit or loss. 5.11 Impairment of assets At the end of each reporting period, the Company and its subsidiaries perform impairment reviews in respect of the property, plant and equipment and other intangible assets whenever events or changes in circumstances indicate that an asset may be impaired. The Company and its subsidiaries also carry out annual impairment reviews in respect of goodwill. An impairment loss is recognised when the recoverable amount of an asset, which is the higher of the asset’s fair value less costs to sell and its value in use, is less than the carrying amount. In determining value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by a valuation model that, based on information available, reflects the amount that the Company and its subsidiaries could obtain from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. An impairment loss is recognised in profit or loss. In the assessment of asset impairment if there is any indication that previously recognised impairment losses may no longer exist or may have decreased, the Company and its subsidiaries estimate the asset’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The increased carrying amount of the asset attributable to a reversal of an impairment loss shall not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the income statement unless the asset is carried at a revalued amount, in which case the reversal, which exceeds the carrying amount that would have been determined, is treated as a revaluation increase.


5.12 Employee benefits Short-term employee benefits Salaries, wages, bonuses and contributions to the social security fund are recognised as expenses when incurred. Post-employment benefits Defined contribution plans The Company and its subsidiaries and their employees have jointly established a provident fund. The fund is monthly contributed by employees and by the Company and its subsidiaries. The fundâ&#x20AC;&#x2122;s assets are held in a separate trust fund and the Company and its subsidiaries contributions are recognised as expenses when incurred. Defined benefit plans The Company and its subsidiaries have obligations in respect of the severance payments it must make to employees upon retirement under labor law. The Company and its subsidiaries treat these severance payment obligations as a defined benefit plan. The obligation under the defined benefit plan is determined by a professionally qualified independent actuary based on actuarial techniques, using the projected unit credit method. Actuarial gains and losses arising from post-employment benefits are recognised as income or expenses when the net cumulative unrecognised actuarial gains and losses at the end of the previous reporting period exceed 10% of the defined benefit obligation at that date. These gains or losses are recognised over the expected average remaining working lives of the employees participating in the plan. The defined benefits liability comprises the present value of the defined benefit obligation, less unrecognised actuarial gains or losses and the fair value of plan assets out of which the obligations are to be settled. Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to the Group. For the first-time adoption of TAS 19 Employee Benefits, the amount of the transitional liability and the amount of liability that had been recognised at the same date under the previous accounting policy are not materially different.

Annual Report 2011

85


Delta Electronics (Thailand) Public Company Limited

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Annual Report 2011

87


Delta Electronics (Thailand) Public Company Limited

88

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The balances of the accounts as at 31 December 2011 and 2010 between the Company, its subsidiaries and those related companies are as follows: (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

2010

Trade accounts receivables, related parties (Note 8) Subsidiary companies

-

-

1,972,547

1,495,944

70

726

70

726

Other related companies (under common control)

261,591

249,094

203,941

220,167

Total trade accounts receivables, related parties

261,661

249,820

2,176,558

1,716,837

-

-

72,303

61,979

Other related companies (under common control)

590,981

935,549

41,206

36,010

Total trade accounts payables, related parties

590,981

935,549

113,509

97,989

-

-

235,296

139,724

Other related companies (under common control)

126,475

69,324

118,146

53,813

Total amounts due to related parties

126,475

69,324

353,442

193,537

Associated company

Trade accounts payables, related parties (Note 20) Subsidiary companies

Amounts due to related parties (Note 20) Subsidiary companies

Directors and managementâ&#x20AC;&#x2122;s benefits During the year ended 31 December 2011 and 2010, the Company and its subsidiaries had employee benefit expenses of their directors and management as below. (Unit: Thousand Baht)

Short-term employee benefits Post-employment benefits Other long-term benefits Total

Consolidated

Separate

financial statements

financial statements

2011

2010

2011

343,907

274,087

71,884

69,839

22,212

18,017

-

-

4,166

16

-

-

370,285

292,120

71,884

69,839

2010

Annual Report 2011

89


Delta Electronics (Thailand) Public Company Limited

8.

Trade and other receivables (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

2010

256,295

246,517

2,174,072

1,713,001

Past due 1 - 3 months

5,182

3,303

2,486

3,836

Past due 3 - 6 months

184

-

-

-

261,661

249,820

2,176,558

1,716,837

5,995,956

5,362,530

2,401,828

2,562,701

Past due 1 - 3 months

553,705

564,921

235,206

279,881

Past due 3 - 6 months

67,052

19,990

31,080

-

Past due 6 - 12 months

29,429

18,081

-

-

Past due over 12 months

32,225

25,751

-

-

Total

6,678,367

5,991,273

2,668,114

2,842,582

Total trade accounts receivable

6,940,028

6,241,093

4,844,672

4,559,419

Trade receivables, related parties Aged on the basis of due dates Current

Total

90 Trade receivables, unrelated parties Aged on the basis of due dates Current

Less: Allowance for doubtful accounts Total trade receivables - net

(105,918)

(78,349)

(10,710)

(9,357)

6,834,110

6,162,744

4,833,962

4,550,062

Other receivables

25,332

60,515

-

-

Total other receivables

25,332

60,515

-

-

6,859,442

6,223,259

4,833,962

4,550,062

Other receivables

Trade and other receivables - net


9.

Inventories (Unit: Thousand Baht) Consolidated financial statements Cost 2011

Finished goods Work in process Raw materials Goods in transit Total

Decrease to net realisable value 2010

Inventories-net

2011

2010

(388,160)

(245,431)

2,645,142

2,549,561

(1,307)

561,492

479,457

(554,826)

2,201,652

2,710,109

544,156

728,868

5,952,442

6,467,995

3,033,302

2,794,992

561,492

480,764

3,029,812

3,264,935

(828,160)

544,156

728,868

-

7,168,762

7,269,559

-

2011

-

(1,216,320)

(801,564)

2010

(Unit: Thousand Baht) Separate financial statements Cost 2011 Finished goods Work in process Raw materials Goods in transit Total

10.

1,854,210

Decrease to net realisable value 2010

2011

1,539,693

380,107

376,865

1,825,944

1,849,904

115,524

155,464

4,175,785

3,921,926

Inventories-net

2010

(175,262)

2011

(86,982)

-

1,678,948

-

(441,628)

(308,063)

-

(395,045)

1,452,711

380,107

376,865

1,384,316

1,541,841

115,524

155,464

3,558,895

3,526,881

-

(616,890)

2010

Other current assets (Unit: Thousand Baht) Consolidated financial statements 2011

2011

2010

Input tax refundable

341,815

339,350

69,605

54,168

Prepaid expenses

102,119

31,678

17,611

6,196

Prepaid tax

310,264

317,026

-

-

1,282

10,537

-

983

Others

173,448

217,563

50,713

21,769

Total other current assets

928,928

916,154

137,929

83,116

Forward contracts receivable

11.

2010

Separate financial statements

Deposits at bank with restrictions The balance as at 31 December 2011 mainly represented bank deposits of approximately EUR 2.8 million of a subsidiary in the Federal Republic of Germany which are subject to pension fund restrictions (31 December 2010: mainly represented bank deposits of approximately RMB 26 million of a subsidiary in the Republic of China which are subject to restrictions under the laws of the Peopleâ&#x20AC;&#x2122;s Republic of China, and bank deposits of approximately EUR 1.9 million of a subsidiary in the Federal Republic of Germany which are subject to pension fund restrictions).

Annual Report 2011

91


92

12.

Delta Electronics (Thailand) Public Company Limited

Investment in associated company

12.1 Details of investments in associated company: (Unit: Thousand Baht) Consolidated financial statements

Company’s name

Nature of business

Country of

Shareholding

incorporation

percentage 2011

Delta Green (Tianjin) Industries Company Limited

Manufacturing

The People’s

Cost

2010

%

%

-

50

2011

2010

Carrying amounts based

Share of profit from investment in

on equity method

associate during the year

2011

2010

-

394,383

-

635,085

Translation adjustment

-

-

-

(90,314)

Total investment in associated company

-

394,383

-

544,771

(owned by DET SGP Pte. Ltd.)

and trading of

Republic of

electronic

China

2011

2010

16,807

10,848

-

-

16,807

10,848

products

12.2 Summarised financial information of associated company: Financial information of the associated company is summarised below. (Unit: Million RMB) Total revenues for the

Company’s name

Delta Green (Tianjin) Industries Company Limited

Paid-up capital

Total assets

Total liabilities

year ended

Profit for the year ended

as at 31 December

as at 31 December

as at 31 December

31 December

31 December

2011

2010

2011

2010

2011

2010

2011

2010

2011

2010

-

185

-

300

-

35

-

201

-

5


During the current year, the subsidiaries of the Company received dividend amounting to approximately USD 4.6 million from Delta Green (Tianjin) Industries Company Limited (2010: Nil). However, during the current year, this subsidiary sold its investment in associated company to Delta Electronics (HK) Limited at a price of approximately USD 15 million, which was the value by estimated a financial advisor. The subsidiary had a gain on the sale of the investment amounting to approximately USD 2.8 million. 13.

Investments in subsidiary companies Details of investments in subsidiaries as presented in separate financial statements are as follows: (Unit: Thousand Baht) Companyâ&#x20AC;&#x2122;s name

Paid-up capital

Cost

Foreign currency

2011

2010

(Thousand)

(Thousand)

2011

2010

DET International Holding Limited

USD

237,413

223,513

8,615,286

8,190,294

Delta Energy Systems (Switzerland) AG

CHF

20,000

20,000

2,414,918

2,414,918

Delta Green Industrial (Thailand) Company Limited

THB

60,000

60,000

60,000

60,000

Delta Energy Systems (Singapore) Private Limited

USD

250

-

7,596

-

11,097,800

10,665,212

(2,196,004)

(2,196,004)

8,901,796

8,469,208

Subtotal Less: Loss on impairment of investments in subsidiary companies Investments in subsidiary companies - net

No dividend was received from the above subsidiary companies for the year ended 31 December 2011 and 2010.

Annual Report 2011

93


Delta Electronics (Thailand) Public Company Limited

94

14.

Other long-term investments (Unit: Thousand Baht) Companyâ&#x20AC;&#x2122;s name

Shareholding percentage

Consolidated financial statements

2011

2010

%

%

3.84

3.84

241,017

258,128

8.21

8.21

456,587

456,587

697,604

714,715

(177,938)

(191,578)

Translation adjustment

(93,827)

(114,687)

Other long-term investments - net

425,839

408,450

IP Fund One, L.P.

2011

2010

(owned by DET International Holding Limited) Delta Greentech (China) Company Limited (owned by Delta Greentech SGP Pte. Ltd.) Total other long-term investments Less: Allowance for diminution in value of investments in other long-term investments

During the current year, a subsidiary of the Company received dividend amounting to approximately USD 3.76 million from Delta Greentech (China) Company Limited (2010: USD 0.90 million).


15.

Property, plant and equipment (Unit: Thousand Baht) Consolidated financial statements Machinery and Building

Land

equipment

Construction Mold

Installation

in progress

Computer

Others

Total

Cost: 31 December 2009 Purchase/transfer in Disposal/write-off/transfer out

446,836

2,188,655

5,391,838

893,532

908,450

21,529

506,070

451,162

10,808,072

-

301,052

844,590

86,161

41,570

17,083

52,450

99,413

1,442,319

-

-

(160,345)

(2,249)

(14,266)

(1,163)

(21,264)

(55,835)

(255,122)

Translation adjustment

(15,755)

(135,483)

(195,805)

(4,313)

(12,499)

(4,032)

(24,679)

(36,737)

(429,303)

31 December 2010

431,081

2,354,224

5,880,278

973,131

923,255

33,417

512,577

458,003

11,565,966

31 December 2009

-

362,739

4,607,042

838,840

632,850

-

407,242

279,575

7,128,288

Depreciation for the year

-

49,794

375,704

61,447

49,560

-

70,912

39,817

647,234

Accumulated depreciation:

Depreciation - disposal/write-off

-

-

(156,495)

(2,249)

(12,436)

-

(20,814)

(47,174)

(239,168)

Translation adjustment

-

(10,460)

(164,677)

(4,654)

(9,941)

-

(27,088)

(24,199)

(241,019)

31 December 2010

-

402,073

4,661,574

893,384

660,033

-

430,252

248,019

7,295,335

31 December 2009

-

38,757

-

-

6,139

-

36

940

45,872

31 December 2010

-

38,757

-

-

6,139

-

36

940

45,872

As at 31 December 2009

446,836

1,787,159

784,796

54,692

269,461

21,529

98,792

170,647

3,633,912

As at 31 December 2010

431,081

1,913,394

1,218,704

79,747

257,083

33,417

82,289

209,044

4,224,759

Allowance for impairment loss:

Annual Report 2011

Net book value:

95


96

15.

Delta Electronics (Thailand) Public Company Limited

Property, plant and equipment (continued) (Unit: Thousand Baht) Consolidated financial statements Machinery and Building

Land

equipment

Construction Mold

Installation

in progress

Computer

Others

Total

Cost: 31 December 2010

431,081

2,354,224

5,880,278

973,131

923,255

33,417

512,577

458,003

11,565,966

Purchase/transfer in

87,750

89,740

712,467

94,958

71,625

198,024

81,892

64,333

1,400,789

-

(33,519)

(188,972)

(3,184)

(4,227)

(48,742)

(58,455)

(12,394)

(349,493)

(5,966)

(44,954)

19,749

604

2,728

(812)

(4,883)

(19,945)

(53,479)

512,865

2,365,491

6,423,522

1,065,509

993,381

181,887

531,131

489,997

12,563,783

31 December 2010

-

402,073

4,661,574

893,384

660,033

-

430,252

248,019

7,295,335

Depreciation for the year

-

58,359

454,174

75,921

47,736

-

59,913

49,981

746,084

Disposal/write-off/transfer out Translation adjustment 31 December 2011 Accumulated depreciation:

Depreciation - disposal/write-off

-

(1,713)

(186,885)

(2,371)

(2,548)

-

(55,477)

(8,886)

(257,880)

Translation adjustment

-

(4,014)

19,023

357

1,699

-

(4,895)

(4,328)

7,842

31 December 2011

-

454,705

4,947,886

967,291

706,920

-

429,793

284,786

7,791,381

31 December 2010

-

38,757

-

-

6,139

-

36

940

45,872

31 December 2011

-

38,757

-

-

6,139

-

36

940

45,872

As at 31 December 2010

431,081

1,913,394

1,218,704

79,747

257,083

33,417

82,289

209,044

4,224,759

As at 31 December 2011

512,865

1,872,029

1,475,636

98,218

280,322

181,887

101,302

204,271

4,726,530

Allowance for impairment loss:

Net book value:

Depreciation charge Year 2010 (Baht 469 million include in manufacturing cost, and the balance in selling, administrative and research and development expenses)

647,234

Year 2011 (Baht 545 million include in manufacturing cost, and the balance in selling, administrative and research and development expenses)

746,084


15.

Property, plant and equipment (continued) (Unit: Thousand Baht) Separate financial statements Machinery Land

Building

Construction

and equipment

Mold

Installation

in progress

Computer

Others

Total

Cost: 31 December 2009

312,647

1,226,652

4,009,753

856,622

803,027

3,519

256,435

103,265

7,571,920

Purchase/transfer in

-

20,316

667,378

79,853

35,596

20,459

25,667

8,245

857,514

Disposal/write-off/transfer out

-

-

(12,260)

(1,581)

(138,297)

312,647

1,246,968

4,557,017

935,666

835,090

23,978

269,842

109,929

8,291,137

31 December 2009

-

298,110

3,514,089

807,228

550,745

-

205,489

81,236

5,456,897

Depreciation for the year

-

21,962

253,542

56,696

39,718

-

30,888

5,864

408,670

Depreciation â&#x20AC;&#x201C; disposal/write-off

-

-

(3,533)

-

(12,009)

(1,530)

(137,006)

31 December 2010

-

320,072

3,648,506

863,115

586,930

-

224,368

85,570

5,728,561

31 December 2009

-

38,757

-

-

6,139

-

36

940

45,872

31 December 2010

-

38,757

-

-

6,139

-

36

940

45,872

As at 31 December 2009

312,647

889,785

495,664

49,394

246,143

3,519

50,910

21,089

2,069,151

As at 31 December 2010

312,647

888,139

908,511

72,551

242,021

23,978

45,438

23,419

2,516,704

31 December 2010

(120,114)

(809)

(3,533)

-

Accumulated depreciation:

(119,125)

(809)

Allowance for impairment loss:

Annual Report 2011

Net book value:

97


98

15.

Delta Electronics (Thailand) Public Company Limited

Property, plant and equipment (continued) (Unit: Thousand Baht) Separate financial statements Machinery Land

Building

Construction

and equipment

Mold

Installation

in progress

Computer

Others

Total

Cost: 31 December 2010

312,647

1,246,968

4,557,017

935,666

835,090

23,978

269,842

109,929

8,291,137

Purchase/transfer in

-

52,478

567,832

82,675

32,597

40,620

27,719

16,746

820,667

Disposal/write-off/transfer out

-

-

(169,127)

(2,571)

(4,217)

(38,631)

(1,630)

(216,176)

312,647

1,299,446

4,955,722

1,015,770

863,470

64,598

258,930

125,045

8,895,628

31 December 2010

-

320,072

3,648,506

863,115

586,930

-

224,368

85,570

5,728,561

Depreciation for the year

-

22,848

320,361

70,246

40,319

-

30,231

6,686

490,691

Depreciation â&#x20AC;&#x201C; disposal/write-off

-

-

(168,454)

(1,874)

(4,218)

-

(38,630)

(1,604)

(214,780)

31 December 2011

-

342,920

3,800,413

931,487

623,031

-

215,969

90,652

6,004,472

31 December 2010

-

38,757

-

-

6,139

-

36

940

45,872

31 December 2011

-

38,757

-

-

6,139

-

36

940

45,872

As at 31 December 2010

312,647

888,139

908,511

72,551

242,021

23,978

45,438

23,419

2,516,704

As at 31 December 2011

312,647

917,769

1,155,309

84,283

234,300

64,598

42,925

33,453

2,845,284

31 December 2011

-

Accumulated depreciation:

Allowance for impairment loss:

Net book value:

Depreciation charge Year 2010 (Baht 339 million include in manufacturing cost, and the balance in selling, administrative and research and development expenses)

408,670

Year 2011 (Baht 416 million include in manufacturing cost, and the balance in selling, administrative and research and development expenses)

490,691


As at 31 December 2011, certain machinery and equipment items of the Company and its subsidiaries had been fully depreciated but were still in use. The gross carrying amount before deducting accumulated depreciation of those assets amounted to approximately Baht 6,043 million (2010: Baht 5,783 million). The outstanding balance of allowance for loss on impairment of assets, amounting to approximately Baht 46 million, was made against plant and equipment relevant to video display production, since the Company has decided to reduce its production in line with its long-term business strategy of not manufacturing products that generate low profit margins. In the current year, the Company had no sales of this product. 16.

Other intangible assets (Unit: Thousand Baht) Separate financial Consolidated financial statements

statements

Computer Patent rights

software

Computer Others

Total

software

Cost: 31 December 2009

1,095,460

342,885

2,578

1,440,923

Purchase

146

33,440

165

33,751

17

Disposals

-

(161,460)

-

(161,460)

-

(105,650)

(18,166)

(173)

(123,989)

-

989,956

196,699

2,570

1,189,225

276,849

332,631

522

610,002

25,523

52,084

7,635

677

60,396

1,310

-

(161,142)

-

(161,142)

-

Translation adjustment

(29,285)

(18,010)

(55)

(47,350)

-

31 December 2010

299,648

161,114

1,144

461,906

26,833

31 December 2009

818,611

10,254

2,056

830,921

3,224

31 December 2010

690,308

35,585

1,426

727,319

1,931

Translation adjustment 31 December 2010

28,747

28,764

Accumulated amortisation: 31 December 2009 Amortisation for the year Disposals

Net book value:

Annual Report 2011

99


Delta Electronics (Thailand) Public Company Limited

100

(Unit: Thousand Baht) Separate financial statements

Consolidated financial statements Computer Patent rights

software

Computer Others

Total

software

Cost: 31 December 2010

989,956

196,699

2,570

1,189,225

Purchase

65

66,126

32

66,223

434

Disposals

(270)

(22,985)

-

(23,255)

-

50,541

1,314

(40)

51,815

-

1,040,292

241,154

2,562

1,284,008

29,198

299,648

161,114

1,144

461,906

26,833

49,822

24,990

470

75,282

1,143

(39)

(22,145)

-

(22,184)

-

17,480

1,069

20

18,569

-

366,911

165,028

1,634

533,573

27,976

31 December 2010

690,308

35,585

1,426

727,319

1,931

31 December 2011

673,381

76,126

928

750,435

1,222

Translation adjustment 31 December 2011

28,764

Accumulated amortisation: 31 December 2010 Amortisation for the year Disposals Translation adjustment 31 December 2011 Net book value:

17.

Income tax Income tax expenses for the years ended 31 December 2011 and 2010 are made up as follows: (Unit: Thousand Baht) 2010

2011 Current income tax: Current income tax charge Adjustment in respect of current income tax of previous year

(75,820) (2,060)

(76,227) -

Deferred tax: Increase in deferred tax assets

30,388

148,021

Increase in deferred tax liabilities

(8,350)

(17,399)

Translation adjustment

582

12,201

Income tax expenses reported in the statement of comprehensive income

(55,260)

66,596


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Annual Report 2011

101


Delta Electronics (Thailand) Public Company Limited

As of 31 December 2011 and 2010, the components of deferred tax assets and deferred tax liabilities are as follows: (Unit: Thousand Baht) 2011

2010

Deferred tax assets Allowance for doubtful accounts

-

3,526

Allowance for diminution in value of inventories

49,972

60,795

Bonus payable

39,465

20,227

Provision for warranty

27,889

30,717

120,660

74,623

-

11,435

22,551

28,826

260,537

230,149

32,803

19,340

-

5,113

32,803

24,453

Tax savings from promotional privileges Difference depreciation for tax purpose Others

102

Total Deferred tax liabilities Difference depreciation for tax purpose Others Total

In October 2011, the cabinet passed a resolution to reduce the corporate income tax rate from 30 percent to 23 percent in 2012, and then to 20 percent from 2013. In addition, in order to comply with the resolution of the cabinet, in December 2011, the decreases in tax rates for 2012 - 2014 were enacted through a royal decree. The changes in tax rates do not significantly impact the Companyâ&#x20AC;&#x2122;s deferred tax calculation because the Company has been granted tax privileges by the Board of Investment for the manufacture of its products. As at 31 December 2011 the Company and its subsidiaries have unused tax losses totaling Baht 44 million, INR 617 million and EUR 67 million (2010: Baht 32 million and EUR 63 million), on which deferred tax assets have not been recognised as the Company and its subsidiaries believe that they might not be used to offset taxable income in the future. 18.

Deposit for purchase of land The balance as at 31 December 2010 represented the deposit for purchase of land in India for office building construction by Delta India Electronics Pvt. Ltd., a subsidiary, of approximately INR 150 million or Baht 100 million. However, during the current year, this subsidiary already completed its purchase of the land in India for office building construction.


19.

Bank overdrafts and short-term loans from financial institutions (Unit: Thousand Baht)

Bank overdrafts Short-term loans from financial institutions

Interest rate

Consolidated

(percent per annum)

financial statements

2011

2010

11.00

14.50 - 16.50

9,417

2,138

1.03 - 15.36

1.67 - 14.00

1,012,728

1,142,615

1,022,145

1,144,753

Total

20.

2011

2010

Trade and other payables (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

590,981

935,549

113,509

97,989

4,369,206

4,428,953

3,403,151

3,330,234

Amount due to related parties

126,475

69,324

353,442

193,537

Other payables

535,792

463,414

364,383

347,217

Accrued expesses

1,363,961

1,430,666

574,997

677,296

Advance received

186,251

126,903

99,086

80,418

7,172,666

7,454,809

4,908,568

4,726,691

Trade payables - related parties Trade payables - unrelated parties

Total trade and other payables

21.

2010

Other current liabilities (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2011

2010

2010

Forward contracts payable

34,708

2,117

19,865

-

Withholding tax payable

86,185

72,984

58,833

47,738

Value added tax payable

63,795

71,914

-

-

Others

61,838

87,422

12,554

10,899

246,526

234,437

91,252

58,637

Total other current liabilities

Annual Report 2011

103


Delta Electronics (Thailand) Public Company Limited

104

22.

Provision for long-term employee benefits The amount related to long-term employee benefits recognised in the statements of comprehensive income and the statements of financial position are summarised below. (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

2010

Current service cost

49,934

40,946

7,507

9,069

Interest cost

69,766

68,788

3,758

4,131

(29,200)

(25,362)

-

-

13,746

2,638

-

-

104,246

87,010

11,265

13,200

Expected return on plan assets Recognised actuarial losses Long-term employee benefit expenses for the years

(Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011 Defined benefit obligation Fair value of plan assets

(1,978,363)

(1,844,602)

732,958 (1,245,405)

Unrecognised actuarial losses

2010

2011 (206,496)

684,030 (1,160,572)

2010 (96,369)

-

-

(206,496)

(96,369)

393,587

297,655

125,617

20,325

(851,818)

(862,917)

(80,879)

(76,044)

Provisions for long-term employee benefits as at 31 December

The changes in the present value of the defined benefit obligation are as follow: (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011 Defined benefit obligation at beginning of year

2010

2011

2010

(1,844,602)

(1,897,441)

(96,369)

(85,146)

Current service cost

(49,934)

(40,946)

(7,507)

(9,069)

Interest cost

(69,766)

(68,788)

(3,758)

(4,131)

Contribution by plan participants

(19,842)

(17,522)

Benefits paid during the year

171,183

96,098

Actuarial losses

(97,312)

(75,334)

Translation adjustments

(68,090)

159,331

Defined benefit obligation at end of year

(1,978,363)

(1,844,602)

-

-

6,431

1,977

(105,293) (206,496)

(96,369)


The change in the fair value of plan assets are as follows: (Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011 Fair value of plan assets at beginning of year

2010

2011

2010

684,030

672,613

-

-

Expected return from plan assets

29,200

25,362

-

-

Contributions by employer

22,466

20,903

-

-

Contribution by plan participants

19,842

17,522

-

-

(57,400)

(43,422)

-

-

(729)

(7,095)

-

-

35,549

(1,853)

-

-

732,958

684,030

-

-

Benefits paid during the year Actuarial losses Translation adjustments Fair value of plan assets at end of year

The amount of each major category constitutes of the fair value of the total plan assets are as follows:(Unit: Thousand Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

2010

Debt securities

126,102

99,100

-

-

Equity securities

147,706

196,194

-

-

Properties

333,987

272,585

-

-

Others

125,163

116,151

-

-

Principal actuarial assumptions at the valuation date were as follows:Consolidated financial statements

Separate financial statements

2011

2010

2011

2010

(% per annum)

(% per annum)

(% per annum)

(% per annum)

Discount rate

2.6 - 7.5

2.6 - 7.5

3.7

4.8

Expected rate of return on plan assets

4.0 - 8.5

4.0 - 8.5

-

-

2.0 - 8.5

2.0 - 8.5

8.0

7.0

0.5- 2.0

0.5 - 2.0

-

-

0.5 - 23.3

0.0 - 21.7

3.0 - 12.0

0.0- 14.0

Future salary increase rate (depending on age) Future pension increase rate Staff turnover rate

Annual Report 2011

105


Delta Electronics (Thailand) Public Company Limited

106

Amounts for the current and previous four years of long-term employee benefits are as follows: (Unit: Thousand Baht) Consolidated financial statements

Defined benefit obligation Fair value of plan assets Deficit

2011

2010

2009

2008

2007

(1,978,363)

(1,844,602)

(1,897,441)

(1,827,600)

(1,553,527)

732,958

684,030

672,613

724,882

416,349

(1,245,405)

(1,160,572)

(1,224,828)

(1,102,718)

(1,137,178)

(32,689)

(15,384)

(2,981)

(13,801)

8,971

(730)

(7,096)

(16,448)

(13,993)

-

Loss from experience adjustments on plan Liabilities Loss from experience adjustments on plan assets

(Unit: Thousand Baht) Separate financial statements 2011 Defined benefit obligation

(206,496)

2010

2009

2008

2007

(96,369)

(85,146)

(83,156)

(42,443)

Loss from experience adjustments on plan Liabilities

(80,726)

-

-

(47,229)

-


23.

Provisions These comprise the following: (Unit: Thousand Baht) Separate financial statements

Consolidated financial statements Restructuring costs Balance as at 31 December 2010

Other Warranty

provisions

Total

Warranty

Total

8,521

237,676

131,635

377,832

21,622

21,622

Recognition during year

19,326

1,215,271

310,680

1,545,277

5,554

5,554

Reversal during year

(8,241)

(1,254,481)

(184,828)

(1,447,550)

(11,400)

(11,400)

(377)

5,839

800

800

Translation adjustment/ unrealised loss on 100

6,116

19,706

204,582

257,110

481,398

16,576

16,576

Short-term provisions

5,939

24,604

121,609

152,152

5,846

5,846

Long-term provisions

2,582

213,072

10,026

225,680

15,776

15,776

Balance as at 31 December 2010

8,521

237,676

131,635

377,832

21,622

21,622

Short-term provisions

17,807

13,568

224,498

255,873

-

-

Long-term provisions

1,899

191,014

32,612

225,525

16,576

16,576

19,706

204,582

257,110

481,398

16,576

16,576

exchange rate Balance as at 31 December 2011

Annual Report 2011

Balance as at 31 December 2011

107


Delta Electronics (Thailand) Public Company Limited

24.

Share capital/warrants The Annual General Meeting of the shareholders held on 30 March 2005 approved a resolution to issue up to 59,000,000 warrants for offer to executive directors and other employees of the Company. The warrants can be exercised to subscribe to newly issued ordinary shares in a ratio of 1 warrant per 1 ordinary share, at an exercise price of Baht 1 each. They are a one-time issue and have a life of 5 years, with the exercise period commencing on the last business day of January 2006. During December 2010, 799 warrants were exercised to purchase 980 new ordinary shares, the Company registered this capital increase with the Ministry of Commerce on 22 December 2010. The final date for the exercise of the Companyâ&#x20AC;&#x2122;s warrants was 17 December 2010,

108

after which the remaining warrants can no longer be exercised. 25.

Statutory reserve Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside to a statutory reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any) until the reserve reaches 10 percent of the registered capital. The statutory reserve is not available for dividend distribution.

26.

Dividends Dividends declared in 2011 and 2010 consisted of the followings:

Dividend

Approved by

Total dividends (Million Baht)

Final dividend for year 2010

(Baht)

Annual General Meeting of the shareholders on 1 April 2011

Final dividend for year 2009

Dividend per share

2,121

1.70

1,871

1.50

Annual General Meeting of the shareholders on 5 April 2010


27.

Expenses by nature Significant expenses by nature are as follows: (Unit: Million Baht) Consolidated

Separate

financial statements

financial statements

2011

2010

2011

2010

6,460

5,793

2,876

2,764

25,102

24,183

16,674

15,484

Salaries, wages and other employee benefits Raw materials used and purchase of finished goods Changes in inventories of finished goods and work in progress

(319)

(1,450)

(318)

(910)

Depreciation

746

647

491

408

Commission expenses

515

343

576

435

12

-

231

204

356

-

1,074

673

Amortisation of intangible assets

75

60

1

1

Restructuring expenses

18

-

-

-

-

-

-

2

Marketing fee Design and engineering fee

Loss on exchange

Annual Report 2011

109


110

28.

Delta Electronics (Thailand) Public Company Limited

Promotional privileges The Company was granted promotional privileges by the Board of Investment subject to certain significant conditions. Significant privileges of the Company are as follows:

Details 1. Certificate No. 2. Promotional privileges for

1404(1)/2544 1523/2543 1571(2)/2549 1710(2)/2549 Manufacturing Manufacturing Manufacturing Manufacturing of DC FAN of EMI FILTER of monitors and of SPS and televisions electro magnetic products

3. The significant privileges are 3.1 Exemption from corporate income tax for net 7years income from the promoted operations and exemption from income tax on dividends paid from the income of the operations throughout the period in which the corporate income tax is exempted. 3.2 Exemption from import duty on machinery as Granted approved by the board. 3.3 Exemption from import duty on raw materials and Granted significant supplies used in export production. 3.4 Allowance to additionally deduct 5% of any Non – granted increment in export income over the preceding year for ten years, providing that the export income of that year is not lower than the average export earnings of the three preceding years, except during the first two years. 4. Date of first earning operating income 12 December 2006

1541(2)/2552 Manufacturing of electromagnetic products

1494(2)/2552 Manufacturing of DC FAN

2113(2)/2553 Manufacturing of monitors

2061(1)/2553 Manufacturing of telecommunication and electronics products for vehicle

2062(1)/2553 Manufacturing of telecommunication

7years

5years

5years

7years

7years

5years

8years

8years

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Granted

Non – granted

Non – granted

Granted

Granted

Non – granted

Non – granted

Non – granted

Granted

Non – granted

Non – granted

Non – granted

Non – granted

Non – granted

Non – granted

Non – granted

7 January 2004 Waiting for close certificate

Waiting for close certificate

27 January 2009

4 January 2010

Waiting for approval to commence operation

Waiting for approval to commence operation

Waiting for approval to commence operation

Waiting for approval to commence operation


The Companyâ&#x20AC;&#x2122;s operating revenues for the years are below shown divided according to promoted and non-promoted operations. (Unit: Million Baht) Promoted operations 2011

2010

Non-promoted operations 2011

2010

Total 2011

2010

Separate financial statements Sales Domestic sales Export sales Total

596

341

-

-

596

341

25,591

23,724

109

140

25,700

23,864

26,187

24,065

109

140

26,296

24,205

Significant tax privileges which were granted to subsidiaries of the Company are as follows:- Delta Green Industrial (Thailand) Company Limited was granted promotional privileges by the Board of Investment for the manufacture of Inverters, pursuant to the promotion certificate No. 1813(2)/2554 issued on 10 May 2011, and the manufacture of Electric light bulbs and Display monitors, pursuant to the promotion certificate No. 1814(2)/2554 issued on 24 May 2011. Subject to certain imposed conditions, the privileges include an exemption from corporate income tax on all profit from the promoted operations for a period of seven years from the date those operations commence generating revenues, with the exemption capped at 100 percent of investment, excluding land costs and working capital; exemption from import duty on machinery as approved by the Board of Investment; and exemption from import duty on raw materials and significant supplies used in export production. The subsidiary is in the process of applying for approval to commence the operations. - Delta Electronics (Slovakia) s.r.o. was granted tax privileges by the Government of Slovakia for the manufacture of Power Supply and Solar inverters on 22 December 2006. Subject to certain imposed conditions, the privileges include an exemption from corporate income tax for a period of 10 years from the year in which the promoted operations commenced, which was 2010. The exemption is capped at EUR 6.2 million. - Delta Power Solutions (India) Private Limited was granted tax privileges by the Government of India for the manufacture of Telecom Power Systems and Un-interrupted Power Solutions on 1 April 2008. The privileges include exemption from corporate income tax for a period of five years from the date the promoted operations commence generating revenues and a 30% reduction of corporate income tax on income derived from the promoted operations for a period of five years after the tax-exemption period ends.

Annual Report 2011

111


Delta Electronics (Thailand) Public Company Limited

112

29.

Earnings per share Basic earnings per share is calculated by dividing profit for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year. Diluted earnings per share is calculated by dividing profit for the year attributable to equity holders of the Company (excluding other comprehensive income) by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares which would need to be issued to convert all dilutive potential ordinary shares into ordinary shares. The calculation assumes that the conversion took place either at the beginning of the year or on the date the potential ordinary shares were issued. The following table sets forth the computation of basic and diluted earnings per share: Consolidated financial statements Weighted average number of ordinary shares

Profit for the year 2011

2010

2011

(Thousand Baht)

(Thousand Baht)

Earnings per share

2010

(Thousand shares) (Thousand shares)

2011

2010

(Baht)

(Baht)

2.30

3.33

Basic earnings per share Profit attributable to equity holders of the Company

2,864,334

4,152,574

1,247,382

1,247,381

Effect of dilutive potential ordinary shares Warrants

-

3

4,152,574

1,247,384

Diluted earnings per share Profit of ordinary shareholders assuming the conversion of warrants to ordinary shares

3.33


Separate financial statements Weighted average number of ordinary shares

Profit for the year

2011

2010

2011

(Thousand Baht)

(Thousand Baht)

Earnings per share

2010

(Thousand shares) (Thousand shares)

2011

2010

(Baht)

(Baht)

2.79

2.64

Basic earnings per share Profit attributable to equity holders of the Company

3,475,540

3,296,723

1,247,382

1,247,381

Effect of dilutive potential ordinary shares Warrants

-

3

3,296,723

1,247,384

Diluted earnings per share Profit of ordinary shareholders assuming the conversion of warrants to ordinary shares

2.64

The final date for the exercise of the Companyâ&#x20AC;&#x2122;s warrants was 17 December 2010, after which the remaining warrants can no longer be exercised. As a result, the Company has not presented diluted earnings per share for the year ended 31 December 2011.

Annual Report 2011

113


114

30.

Delta Electronics (Thailand) Public Company Limited

Financial information by segment The businesses of the Company and its subsidiaries mainly involve the single industry segment of the manufacture, distribution and servicing of electronic products and are mainly carried on both in Thailand and overseas. The financial information of the Company and its subsidiaries by geographical segment for the years ended 31 December 2011 and 2010 is as follows: (Unit: Million Baht) Consolidated Thailand

Revenue from external customers Inter-segment revenues Total revenues Segment profit (loss)

Asia

Australia

2011

2010

2011

2010

2011

17,947

16,767

2,765

3,471

-

8,349

7,438

324

250

11

26,296

24,205

3,089

3,721

11

3,159

3,376

(182)

(102)

1

America

2010

Europe 2011

Total

2010

2011

Eliminated 2010

2011

financial statements

2011

2010

2010

2011

2010

-

9,991

6,690

7,731

8,802

38,434

35,730

-

-

38,434

35,730

-

62

63

5,278

4,733

14,024

12,484

(14,024)

(12,484)

-

-

-

10,053

6,753

13,009

13,535

52,458

48,214

(14,024)

(12,484)

38,434

35,730

-

(1)

(1)

(456)

494

2,521

3,767

2,522

3,844

229

201

Unallocated income (expenses): Other income Interest income

125

59

Dividend income from other long-term investments

114

28

Share of profit from investment in associated company Amortisation of intangible assets Gain on sales of investments in available-for-sale securities Gain on sales of investments in associated company Gain (loss) on disposal of property, plant and equipment

17

11

(75)

(60)

-

100

84

-

1

(8)

Finance cost

(98)

(61)

Corporate income tax

(55)

67

-

(28)

2,864

4,153

Profit for the year - attributable to non-controlling interest of the subsidiary Profit for the year - attributable to equity holders of the Company


(Unit: Million Baht) Consolidated Thailand 2011 Property, plant and equipment

2,859

Asia

2010 2,517

2011 789

Australia 2010 775

2011

America

2010 -

2011 -

46

Europe

2010 42

2011 1,033

Total

2010

4,727

2010 4,225

2011

financial statements

2010 -

2011 -

2010

4,727

4,225

Unallocated assets

25,157

25,386

Total assets

29,884

29,611

Transfer prices between business segments are as set out in Note 7 to the financial statements.

891

2011

Eliminated

Annual Report 2011

115


Delta Electronics (Thailand) Public Company Limited

116

31.

Provident fund The Company and its employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. Both employees and the Company contribute to the fund monthly, at rates of 6 percent of basic salary. The fund, which is managed by TMB Bank Public Company Limited, will be paid to employees upon termination or when employees are promoted to a manager post, in accordance with the fund rules. During the year 2011, the Company contributed Baht 22,804,747 (2010: Baht 12,713,994) to the fund.

32.

Commitments and contingent liabilities

32.1 Capital commitments and operating lease commitments 32.1.1

As at 31 December 2011, the Company and its subsidiaries had significant capital commitments amounting to Baht 45 million in respect of the building construction and amounting to Baht 152 million, INR 10 million and EUR 0.5 million in respect of the purchase of machinery and equipment.

32.1.2

As at 31 December 2011, the subsidiaries had significant operating lease commitments amounting to CHF 1.2 million, EUR 4.4 million and INR 179 million.

32.2 Guarantee obligations As at 31 December 2011, the Company and its subsidiaries had the following outstanding significant letters of guarantee required in the ordinary course of their businesses: 32.2.1

Outstanding letters of guarantee totaling approximately Baht 758 million have been issued by banks to meet requirements of the Company (including a letter of guarantee for approximately Baht 734 million issued by a bank to meet obligations of the Company to the Revenue Department in relation to the tax assessment mentioned in Note 32.3.1 to the financial statements).

32.2.2

Outstanding letters of guarantee for totals of approximately INR 159 million, EUR 1 million and USD 2 million have been issued by banks to meet requirements of its subsidiaries.


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7KH &RPSDQ\ DQG LWV VXEVLGLDULHV¶ ILQDQFLDO LQVWUXPHQWV DV GHILQHG XQGHU 7KDL $FFRXQWLQJ 6WDQGDUG 1R  ³)LQDQFLDO ,QVWUXPHQWV 'LVFORVXUH DQG 3UHVHQWDWLRQV´ SULQFLSDOO\ FRPSULVH FDVK DQG FDVK HTXLYDOHQWV WUDGH DFFRXQWV UHFHLYDEOH RWKHU DFFRXQWV UHFHLYDEOH LQYHVWPHQWV VKRUWWHUP ORDQV DFFRXQWV SD\DEOH DQG RWKHU DFFRXQWVSD\DEOH7KHILQDQFLDOULVNVDVVRFLDWHGZLWKWKHVHILQDQFLDOLQVWUXPHQWVDQG KRZWKH\DUHPDQDJHGLVGHVFULEHGEHORZ

Annual Report 2011

117


Delta Electronics (Thailand) Public Company Limited

Credit Risk The Company and its subsidiaries are exposed to credit risk primarily with respect to trade accounts receivable and other receivable. The Company and its subsidiaries manage the risk by adopting appropriate credit control policies and procedures and therefore do not expect to incur material financial losses. In addition, the Company and its subsidiaries do not have high concentration of credit risk since they have a large customer base. The maximum exposure to credit risk is limited to the carrying amounts of trade accounts receivable and other receivable as stated in the statement of financial position. Interest rate risk The Company and its subsidiaries are exposured to interest rate risk relating primarily

118

to their cash at banks, bank overdrafts and short-term loans. However, since most of the Company and its subsidiariesâ&#x20AC;&#x2122; financial assets and liabilities bear floating interest rates or fixed interest rates which are close to the market rate, the interest rate risk is expected to be minimal. Significant financial assets and liabilities as at 31 December 2011 classified by type of interest rates are summarised in the table below, with those financial assets and liabilities that carry fixed interest rates further classified based on the maturity date, or the repricing date if this occurs before the maturity date. Consolidated financial statements Fixed interest rates Within 1 year

1-5 years

Over

Floating

Non-interest

5 years

interest rate

bearing

Total

Interest rate

(Million Baht)

(% p.a.)

Financial assets Cash and cash equivalents

362

-

-

8,237

914

9,513

0.01 - 8.25

Trade accounts receivable

-

-

-

-

6,834

6,834

-

Other accounts receivable

-

-

-

-

25

25

-

Deposits at bank with restrictions

114

-

-

2

-

116

0.52

Total

476

-

-

8,239

7,773

16,488

1,022

-

-

-

-

1,022

1.03 - 15.36

Trade accounts payable

-

-

-

-

4,960

4,960

-

Amount due to related parties

-

-

-

-

126

126

-

Other accounts payable

-

-

-

-

536

536

-

1,022

-

-

-

5,622

6,644

Financial liabilities Bank overdraft and short-term loans from financial institutions

Total


Separate financial statements Fixed interest rates Within 1-5 years

1 year

Over

Floating

Non-interest

5 years

interest rate

bearing

Total

(Million Baht)

Interest rate (% p.a.)

Financial assets Cash and cash equivalents

-

-

-

6,009

-

6,009

0.02 - 2.95

Trade accounts receivable

-

-

-

-

4,834

4,834

-

Total

-

-

-

6,009

4,834

10,843

Trade accounts payable

-

-

-

-

3,517

3,517

-

Amount due to related parties

-

-

-

-

353

353

-

Other accounts payable

-

-

-

-

364

364

-

Total

-

-

-

-

4,234

4,234

Financial liabilities

Foreign currency risk The Company and its subsidiaries have significant foreign currency risk in respect of the purchase and sales transactions, lending and borrowing, and investments in foreign companies. As at 31 December 2011, outstanding balances of the Company and its subsidiariesâ&#x20AC;&#x2122; financial assets and liabilities denominated in foreign currencies are as follows:

Foreign currency

US dollar

Financial

Financial

Average exchange rate as

assets

liabilities

at 31 December 2011

(Million)

(Million)

(Baht per 1 foreign currency unit)

125

97

31.6912

Euro

32

5

41.0274

Japanese yen

45

156

0.4084

Czech koruna

22

-

1.5947

Russian ruble

53

1

0.9868

Polish zloty

14

3

9.3180

4

1

4.5906

Swedish krona

The Company and its subsidiaries manage their exposure to foreign currency risk by using derivatives where considered appropriate except for the foreign currency risk arising from investments in foreign countries, which the Company and its subsidiaries consider to have an insignificant effect to the financial statements.

Annual Report 2011

119


Delta Electronics (Thailand) Public Company Limited

As at 31 December 2011, the outstanding derivatives are as follows: Forward contracts Amount

Forward rate

Maturity date

30.83500 - 31.56000 THB/USD

January - March 2012

Forward contracts to “Sell” USD/THB

USD

98

million

USD/CHF

USD

4

million

0.91600 - 0.93600

CHF/USD

January 2012

EUR/USD

EUR

6

million

1.30130 - 1.34688

USD/EUR

January 2012

EUR/CHF

EUR

10

million

1.21730 - 1.23890

CHF/EUR

January 2012

PLN/CHF

PLN

7

million

3.60250 - 3.70650

PLN/CHF

January 2012

USD/TRY

USD

3

million

1.82600 - 1.87200

TRY/USD

January 2012

EUR/USD

EUR

1

million

1.30790

USD/EUR

January 2012

USD/RUB

USD

4

million

31.22590 - 32.04380 RUB/USD

January 2012

USD/INR

USD

5

million

51.91500 - 53.90000 INR/USD

January - March 2012

USD/BRL

USD

1

million

1.88310

BRL/USD

January 2012

USD/CHF

USD

1

million

0.93590

CHF/USD

January 2012

Forward contracts to “Buy”

120

33.2 Fair values of financial instruments A fair value is the amount for which an asset can be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction. The fair value is determined by reference to the market price of the financial instrument or by using an appropriate valuation technique, depending on the nature of the instrument. Since the majority of the Company and its subsidiaries’ financial instruments are short-term in nature or bear floating interest rates, their fair values are not expected to be materially different from the amounts presented in the statements of financial position. 34.

Capital management The primary objective of the Company and its subsidiaries’ capital management is to ensure that they have an appropriate financial structure and preserves the ability to continue their business as a going concern. The Group manages its capital position with reference to its debt-to-equity ratio. As at 31 December 2011, the Group's debt-to-equity ratio was 0.50:1 (2010: 0.53:1) and the Company's was 0.24:1 (2010: 0.25:1).


35.

Reclassification Certain amounts in the financial statements for the year ended 31 December 2010 have been reclassified to conform to the current year’s classification, following the adoption of presentation of the financial statements in accordance with the stipulations of the Notification of the Department of Business Development described in Note 2 and the adoption of new and revised accounting standards described in Note 3. The reclassifications had no effect to previously reported profit or shareholders’ equity.

36.

Approval of financial statements These financial statements were authorised for issue by the Company’s Board of Directors on 10 February 2012.

Annual Report 2011

121


Delta Electronics (Thailand) Public Company Limited

122

Company General Information Name Company Registration Number Contact Address

Nature of Business Home Page Registered Share Capital Paid up Capital

Delta Electronics (Thailand) Public Company Limited 0107537002559 909 Soi 9, Moo 4, E.P.Z., Bangpoo Industrial Estate, Tambon Prakasa, Amphur Muangsamutprakarn, Samutprakarn Province 10280, Thailand Tel. : (662) 709-2800 Fax : (662) 709-2833 Manufacturing and exporting of power supplies and other electronic components www.deltathailand.com 1,259,000,000 ordinary shares at par value of Baht 1 1,247,381,614 ordinary shares at par value of Baht 1 (As of 31 December 2011) Please find details in the section of çInvestment StructureÊ

Juristic persons which Company holds more than 10% References 1. Auditor Ernst & Young Office Limited 33rd Floor, Lake Rajada Office Complex, 193/136-137, Rajadapisek Road, Klongtoey, Bangkok 10110, Thailand Tel. : (662) 264-0777, (662) 661-9190 Fax : (662) 264-0789, (662) 661-9192 2. Share Registrar Thailand Securities Depository Co., Ltd. The Stock Exchange of Thailand Building, 62 Ratchadapisek Road, Klongtoey, Bangkok 10110, Thailand Tel. : (662) 229-2800 Fax : (662) 359-1259

Delta 11  

DELTA_2011 DELTA ELECTRONICS (THAILAND) PCL Annual Report 2011

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