Sustainability Goals and Materiality

Advantech recognizes that information security issues are critical to the Company's operational stability, product safety, and brand value as a global leader in the IoT industry. These factors are critical for stakeholders such as employees, customers, and investors. Furthermore, the FSC also amended regulations to mandate information security requirements for TWSE / TPEx listed companies. In the event of a major information security incident, they are required to publicly disclose material information.

The National Institute of Standards and Technology's (NIST) Cyber Security Framework (CSF) serves as the foundation for the Company's information security management strategy. The framework has five main functions: Identification, protection, detection, response, and recovery primarily refer to the measures that need to be managed or adopted at each stage of a company being attacked: before the incident (identification and protection), during the incident (detection and response), and after the incident (recovery).

To safeguard Company and customer interests, we are dedicated to upholding information security, continuously evaluating the efficacy of information security management, and minimizing the frequency of information security incidents.

Recognizing the increasing importance of the positive impact of information security and supply chain information security in the technology industry, the Company's efforts in fortifying information security can raise customer confidence, enhance overall corporate risk management, and enhance resilience against operational risks.

Information security breaches can negatively impact business operations by leading to the breach of confidential information, system service disruptions, reputational damage, customer loss, and increased legal risks for the Company.

The following actions and measures are implemented to respond to negative impacts:

• Implement a multi-layered defense-in-depth strategy through security mechanisms such as firewalls, endpoint protection, privileged account management, and two-factor authentication
• Continue to detect and monitor information security risks and establish an information security incident monitoring, response, and handling mechanism
• Implement 3-2-1 data backup for important systems and establish a remote disaster recovery mechanism
• Introduce an information security management system to increase the overall sophistication of information security practices
• Continue to organize information security awareness campaigns to reinforce employee information security awareness

• Microsoft Security Score exceeds 70%
• Information security risk rating up to 78
• The availability of key application systems reached 99.9%
• Conducted information security awareness courses, achieving a completion rate of 91.7%
• Following social engineering email testing, headquarters and overseas subsidiaries achieved a pass rate of 84.3% and 77.4%, respectively
• Quarterly information security newsletters are distributed, with information security contests organized for Advantech's global IT departments
• Target coverage rate of 100% for web security filtering and zero trust network access are implemented at headquarters and in Taiwan

• Information security risk rating up to 80
• IT operations in Europe, North America, and China achieve ISO 27001 certification: 2022 revised standard
• Target coverage rate of 100% for web security filtering deployment in Japan and Singapore
• Target coverage rate of more than 80% for Zero Trust Network Access and NAC deployment at headquarters and in Taiwan
• Continue to expand the deployment of vulnerability patching tools on host systems within IT machine rooms, with a target coverage rate exceeding 80%
• The information security management dashboard system becomes operational, enabling centralized monitoring of key information security indicators across the four major regions: Taiwan, China, North America, and Europe.
• Azure cloud environment information security score exceeds 65%
• Complete the dual network project at Kunshan, China and major locations in Taiwan

• Advantech introduces global web security filtering and zero trust network access
• The information security risk rating score remains higher than the industry standard, and is maintained at no less than 85
• Certification to the ISO 27001:2022 standard for global factory operations

• Headquarters IT server room operations and maintenance, the backbone network, and OT operations and maintenance at the Linkou plant complete the transition to ISO 27001: 2022 standard
• Introduce Security Access Service Edge (SASE), a cloud architecture that integrates network security and access control to enhance the security and performance of Internet use
• Fortify the digital asset management system to better understand and address Advantech's global information security risks, while also assessing the security posture of outsourced third-party suppliers.
• Develop the proprietary information security management dashboard system and complete preliminary testing and phased functional objectives by the end of 2024.
• Form a Security Committee for product information security and convene regular meetings to discuss relevant topics and monitor work progress.

• Continue to increase Microsoft Security Score to 70%
• Introduce information security risk rating tools, continuously monitor information security risk status, and take corresponding improvement measures to gradually improve the information security risk score to 78
• Headquarters passed the external audit by a third-party certification body, maintaining compliance with the requirements of the ISO/IEC 27001:2022 standard for operations within the certified scope

• Employees: Provide mandatory online courses on information security and complete tests.
• Customers: Respond to customer questionnaires and audits, and provide relevant supporting records as needed.
• Suppliers and contractors: All suppliers are required to complete the Information Security Management Declaration. Suppliers of critical components and system services must also submit a risk self-assessment form and undergo regular information security audits.
• Shareholders and investment institutions: The Company's major action plans and results for improving information security are disclosed through the Company's annual and sustainability reports.
• Partners: Report and address information security issues together.
• Government, public associations, and the media: Respond to inquiries from government units and relevant public associations, and provide supporting records as necessary.

Advantech responds to SDG 9 (Industry, Innovation and Infrastructure) and SDG 12 (Responsible Consumption and Production) by setting goals and implementing standards across product raw materials, design, manufacturing, and environmental management. We are committed to minimizing environmental impact and producing eco-friendly products

Advantech regards eco design and eco product sustainability as both a challenge and an opportunity. In the short term, in response to stringent regulations and evolving market demands, we are focused on strengthening R&D to overcome technical barriers. In the medium to long term, we strive to facilitate supply chain transformation to enhance overall competitiveness, generating both environmental benefits and economic benefits.

• Enhance corporate image: Low-carbon products help shape Advantech's sustainable image, meet the environmental sustainability requirements of international markets, strengthen marketing efforts, and expand the customer base.
• Implement product carbon footprint calculation: Promote carbon reduction through transparency in carbon footprint data and collaboration across the supply chain. Effectively address regional environmental regulations and carbon reduction requirements, while enhancing green competitiveness to support market expansion.
• Eco product innovation and sustainable raw material application: Effectively elevate brand value and attain long-term advantages by forming a green supply chain, choosing eco-friendly materials, optimizing logistics, and minimizing waste.

• Supply chain risks: Supply disruptions resulting from financial difficulties, natural disasters, political factors, or climate events impact production plans and delivery schedules, leading to a decline in customer trust and a weakening of market competitiveness. Adjustments made in response to energy-saving and carbon reduction requirements may lead to increased raw material costs and management complexity.
• R&D and technical risks: Eco product certification and low-carbon technology R&D demand high investment and long lead times. These are influenced by differences in certification standards and technological uncertainties, which may result in delayed market launches and weakened market competitiveness. At the same time, design costs may be affected due to the use of compliant materials.
• Post-launch sales impact: High costs and delays related to eco product certification and low-carbon technology R&D may result in low market acceptance and increased revenue dependency risks after launch, ultimately weakening brand competitiveness and sales performance.

• Introduce green packaging materials and eco design, establish a green packaging material supply chain in conjunction with a recycled materials supply chain for mechanical components, supported by a dedicated material number classification system. Also, regularly review the environmental certifications of supply chain materials.
• The cost increase associated with using energy-saving key components will be managed through centralized selection and procurement by the procurement and parts management units, promoting component commonality and achieving cost reduction.
• Establish internal energy-saving standards by introducing x86 architecture systems with hardware energy-saving designs and energy-saving software development to meet the energy conservation and carbon reduction trend and requirements.

• Advantech product design standards: Continuously invest in eco design R&D using green materials (Advantech's low-halogen requirement) and product energy-saving design to increase the coverage of eco-friendly products.
• Increase the proportion of recycled materials and set targets for the use of recycled materials (plastic/metal) in eco design products. Green packaging materials feature reduction designs to achieve carbon reduction, demonstrating Advantech's commitment to environmental sustainability.
• Energy Star target setting: Choose appropriate product lines for design implementation.
• Introduce energy-saving SW Utility into product design: Expand specific product lines to introduce Windows x86 products and increase the coverage of energy-saving products.

• Eco Design Committee: The Project Process Management Department will convene relevant departments to formulate, implement, and manage standards, and revise the Advantech green ecological design standard guidelines according to international trends.
• Regular review and adjustment: The ESG-Environment team reviews target progress every two weeks to ensure the effectiveness of execution and strategy.
• External professional support: Invite consultants and lecturers to provide counseling and make sure that internal processes comply with policy and regulatory developments.

• Information disclosure and communication: Gather stakeholders' opinions through diverse channels and ensure transparency.
• Sustainability topic evaluation: Analyze operational impacts and risks, identify material topics and prioritize responses.
• Annual reporting and verification: Publish annual Sustainability Reports and undergo verification by external verification bodies.
• Continual internal communication: Strengthen the implementation and results of eco design and sustainability responsibility.

Advantech's systematic allocation of resources towards products and technology, business innovation, and a co-creation mechanism with ecosystem partners to generate shared prosperity is motivated by its corporate vision of "Enabling an intelligent planet"

Building on the vision defined in 2015 and the "AIoT Development Roadmap", Advantech considers AIoT as the main driver of future growth in the industry. Through diverse innovation approaches, the Company is transitioning from an industrial PC vendor to a technology supplier and service provider delivering comprehensive end-to-cloud solutions for IIoT. Advantech has implemented innovative mechanisms on six items across three categories including product, technology, and industry-academic collaboration. In 2025, Advantech strives to become a leading brand in Edge Computing & Edge AI, driving global innovation in five key domains: intelligent edge systems, smart manufacturing, energy and public service, smart healthcare, and smart retail/service. Innovative mechanisms are developed by targeting product, technology, industry-academia collaboration, and other dimensions.

Innovation management is elevated from being process-driven to the corporate development level, and this is used as a key approach for tapping into emerging business opportunities. By strategically communicating the concept of external strategic collaboration and co-creation to potential external partners, we can enhance the diversity of innovation proposals and their execution flexibility, thereby seizing opportunities arising from the development of the AIoT industry.

• Promoting innovation is an important strategy for the Company's continuous improvement and long-term sustainability. Innovation also reflects our investment in technology and knowledge to enhance competitiveness through R&D capabilities and the pursuit of new ventures.
• AIoT application solutions signify that we can meet the needs of diverse industrial and commercial scenarios with more effective and lower-cost means, leading to positive impacts such as process optimization and yield improvement, which can reduce waste, lower energy consumption, etc.
• Innovation solutions targeting specific application scenarios can more directly address challenges faced by businesses or users. For instance, a self-checkout IoT system can mitigate the problem of labor shortage in the industry and also help consumers enjoy a more convenient shopping experience.

Possibility of technical risks and failure. During the new technology or innovative mechanism implementation process, risks associated with technical failures or low market acceptance can lead to wasted capital and time.

Advantech's response towards negative impacts are as follows：

• Promote internal business innovation and new business incubation: 3.2.2 Innovative Products and Technologies
• Form a Core Technology Committee to promote technology sharing and standardization: 3.2.2 Innovative Products and Technologies
• Promote open innovation and industry-academia collaboration: 3.2.1 Business Innovation and Emerging Business Opportunities

• No targets were set last year / description of key achievements in 2024:
• Mechanisms such as IMAX-C have been implemented for a number of years. We regularly and systematically conduct proposal discussions for innovative products and business strategies, as well as departmental technical innovation discussions on R&D, serving as the foundation of our innovative mechanism.
• Regarding the innovative development of new business opportunities, in continuation of the Vote for 2030 activity in 2023, we will conduct new business opportunity evaluation by focusing on six material topics. In response to the flourishing development of global robotics applications, we have formed the AS&R (Autonomous Systems & Robotics) business group.
• Starting in 2023-2024, Advantech launched a comprehensive sector driven strategic transformation with the establishment of four major sectors (iSystem, iAutomation, Service IoT, and Embedded IoT) to target different application markets. At the same time, we aim to strengthen our regional sales organizations and channel management capabilities to expedite product innovation and application implementation.

• Through an internal platform for soliciting emerging business opportunity ideas, we will collect 10–20 proposals and launch a new business opportunity management system to conduct market research, mobilize internal and external resources, and develop products and business models.
• We aim to implement 10 collaborative innovation projects with academic and research institutions and startups.

• Continue to invest in innovative mechanisms to expand our qualitative and quantitative goals.
• Consolidate more partners in the industry ecosystem to establish a resilient and innovative co-creation model.

• Building on the existing mechanism and goals for emerging business opportunity management, specific resources are introduced to accelerate the incubation of innovative proposals.
• By reinforcing ties with external experts and consultants, the Company targets emerging innovation topics and effectively analyzes their value and feasibility. Guided by comprehensive information and expert insights, we can engage in resource allocation and implementation plans.
• Foster an internal corporate innovation culture through the internal platform for soliciting emerging business opportunity ideas.
• Improve the efficiency of corporate operations through AI technology, thereby optimizing resource utilization and lowering environmental impact.

Advantech evaluates the effectiveness of its innovative mechanisms through internal reviews and external validation. Internally, Advantech monitors key performance indicators such as the speed of new product launches, revenue growth, and patent output during quarterly and annual business group reviews. The results are fed back into programs such as IMAX-C, EBO, TSU, and industry-academia collaborations to continuously track and optimize the maturity of technologies and business models. Externally, the Company participates in major international awards and industry competitions, using these recognitions to validate its innovation standards and ensure that its sales and technological innovations generate significant economic, social, and environmental impact.

The Company’s innovation strategy and direction are closely aligned with the decisions of the Board-level Sustainability Development Committee (SDC). To evaluate innovation proposals, the Company engages external experts, including specialized scholars and consultants. In executing the plans, we have applied co-creation with startups and academic research institutions, while also pursuing strategic collaborations and investments with relevant ecosystem partners. Internally, the Company has engaged in the horizontal integration of investment, strategy, innovation management, and the product and R&D units of various business units to promote innovation and co-creation-related efforts.

Advantech is driven by the corporate vision of “Enabling an Intelligent Planet”, reducing waste and carbon footprint through resource circulation. We also consider how waste can transition from linear processing to a closed-loop sustainable cycle to enhance environmental sustainability and resource utilization efficiency. This approach helps mitigate the environmental impact of product manufacturing while strengthening aspects such as energy efficiency and the use of sustainable materials, ultimately leading to improvements in environmental performance and product competitiveness.

• We have established a circular strategy that integrates eco product design and green production processes from the outset of new product development, in a bid to minimize waste generation and carbon footprint.
• The Company has introduced the UL 2799 management model for waste management. We prioritize waste reduction initiatives and strive to increase the conversion and recycling rates of disposable waste through methods such as recycling and reuse, thereby maximizing the benefits of resource recovery. Disposal methods such as incineration and landfill are only used as a last resort for waste that cannot be reused.

We are committed to making every effort to protect the environment, striving for zero pollution in our production processes, fulfilling our responsibilities as a global corporate citizen, and advancing corporate sustainable development. Advantech strives to promote green operations by implementing eco product design, pollution prevention, waste management, and green procurement. We collaborate with customers, suppliers, and contractors to build a green supply chain spanning design, manufacturing, product delivery, and service through the implementation of energy conservation, emission reduction, resource optimization, and circular economy practices.

Fostering a circular economy can increase product resource utilization efficiency, decrease the use of non-renewable resources, lower production costs, reduce waste, enhance the eco-friendliness and resource utilization efficiency of products, minimize environmental impact and product carbon footprint, as well as improve the environmental benefits and competitiveness of products.

The inability to keep up with the eco product trend will diminish the environmental benefits and competitiveness of products. In the long term, it may lead to panic buying of virgin resources and raw materials, increase procurement volumes and waste disposal expenses, and also directly impact corporate reputation and brand image.

Advantech’s countermeasures against negative impacts are outlined as follows:

• Vigorously promote the introduction of recycled raw materials into production processes.
• Prioritize green procurement of products featuring eco-friendly, energy-saving, water-saving, and green construction material labels.
• Implement the UL2799 waste management model to pursue the sustainability of resources.

• Evaluated the introduction of recycled raw materials into the Company's product design.
• Previously incinerated plastic waste is now converted into reuse treatment. At the Linkou plant, the percentage of recycled plastic increased by 15%.
• Promote green procurement at the Linkou plant. For instance, the procurement of products featuring an eco label and recycled plastic pellets amounted to NTD 107 million.
• In 2024, Advantech's significant locations of operation and production plants achieved a 90% recycling rate for business waste outsourced for treatment. The incineration disposal rate was 10%, with no waste sent to landfills.

• The mechanism casings of Gold Medal design products incorporate recycled raw materials, with up to 30% recycled plastic and 10% recycled metal used, depending on the specific material.
• The waste conversion rate at the Linkou plant and the Kunshan plant in China reaches 90%.

• The mechanism casings of Gold Medal design products incorporate recycled raw materials, with up to 50% recycled plastic and 20% recycled steel / 80% aluminum used, depending on the specific material.
• The waste conversion rate across Advantech's global plants reaches 90%.

• Formulate a sustainable raw material policy and promotion plan, and gradually introduce recycled materials to specific models.
• Apply the UL2799 management model to assess the waste reduction, recycling, and reuse situation in the Company.

• Present the progress report of the sustainable raw material plan to the Sustainable Development Committee (SDC), and suggestions are provided by the committee members.
• The waste conversion rate is calculated regularly to verify the effectiveness of waste reduction, recycling, and reuse measures. The progress is reported to the Environmental Safety and Health Management Review Committee.

• Employee: The policy will be included in employee education and training courses, and HR will be requested to list it as a mandatory online course. Waste classification will also be promoted and audited irregularly.
• Customers: Respond to customer questionnaires and audits, and provide relevant supporting records as necessary.
• Suppliers and contractors: In 2024, a supplier conference was held for tier 1 suppliers, during which the concepts and goals of sustainable management were communicated. The conference aimed to encourage suppliers to collaborate with Advantech in implementing circular economy-related initiatives.
• Shareholders and investment institutions: Achievements are disclosed through the Company's Annual Report and Sustainability Report.
• Partners: Respond to partners' inquiries and provide supporting records as necessary.
• Government / public associations / media: Respond to inquiries from government units and relevant public associations, and provide supporting records as necessary.

Advantech's sustainable intelligent solutions are applied to different sectors such as: smart factory, renewable energy infrastructure, smart healthcare, smart retail, robotics applications, etc. In recent years, Advantech has introduced AI applications, collaborating with ecosystem partners to accelerate the adoption of AI edge computing across various industries.
Advantech is committed to incorporating sustainability into the strategic blueprints of its business units for new product development and market expansion. Examples include focusing on product sustainability responsibility, expanding the objectives of relevant product departments (such as environmental protection and energy, smart healthcare, smart agriculture, and environmental monitoring), and expanding the impact of Advantech's sustainable intelligent solutions.

Advantech’s sustainable intelligent solutions generate a positive economic impact by enhancing convenience and improving efficiency across sectors such as smart factories, smart transportation, healthcare, energy management, and smart warehousing. In light of global labor shortages and Taiwan’s aging population, automation-driven transformation is an inevitable trend. This shift not only addresses workforce challenges but also actively facilitates economic transformation.
While sustainability remains a top priority, Advantech’s iEMS solutions are designed in response to the global trend toward net-zero development by enabling businesses to effectively monitor energy resource-related data. This, in turn, helps them to identify carbon emission hotspots and devise effective energy saving and emission reduction strategies, ultimately creating a positive environmental impact.

Smart and AI technologies will replace some of the manual workforce, leading to corresponding social impacts.
For negative impact countermeasures, please refer to 3.3 IoT Application Promotion and Education. Advantech is committed to cultivating IoT talent to ensure that the workforce is not displaced by AI or technology, but instead becomes proficient in applying technology to bring positive contributions to society.

In 2024, the revenue of sustainable intelligent solutions was 41%, and 55.6% was achieved
(Note: In 2024, Advantech calculated the contribution of its sustainable intelligent solutions toward climate change mitigation and climate change adaptation based on EU Taxonomy indicators.)

57% of revenue comes from the sale of sustainable products or solutions.

62% of revenue comes from the sale of sustainable products or solutions.

• Establish a clear blueprint for sustainable product R&D and improve product integration. With reference to sustainability-related indicators, those with high applicability are included in Advantech's existing eco products and related operating activities specification to gradually enhance sustainability.
• Forge ecosystem partnerships. By leveraging the value and technological advantages of our partners and the supply chain, we can provide users with better value, thereby fostering shared prosperity and sustainability for Advantech, ecosystem partners, customers (businesses or individuals), and the planet.
• Continue to monitor the development of domestic and international sustainability-related regulations, and incorporate relevant sustainable indicators, certifications, and technologies into the direction of product and solution development.
• Launched a pilot program for three products featuring sustainable raw materials to explore the carbon reduction performance of incorporating recycled plastics and metals into products. The aim is to achieve mass production and establish Advantech's image as a green enterprise.

• Regularly review revenues from smart energy management solutions, smart factory solutions, smart telemedicine, smart agriculture solutions, smart education solutions, smart transportation, and smart logistics.
• Each business group has monthly, quarterly, and annual review mechanisms to review strategies, plans, inventory, revenue, gross profit, net profit margin, and other revenue conditions on a regular basis.
• Regular meetings are conducted to review eco product development progress, and annual targets are stipulated to monitor the progress of eco products across four key aspects.

Addressing the potential social impact on employment resulting from its activities, Advantech's mitigation measures involve investing in industry talent cultivation, such as the IoT Industry-Academic Cooperation, the IoT Industry-Academic Internship Project, and the IoT Education Online Certification Course. Committed to bridging the gap between learning and application, and introducing more innovative IoT talents to the world. For the content of the IoT industry-academic education cooperation, refer to 3.3 IoT Application Promotion and Education.
In response to investor and customer concerns about product sustainability performance, Advantech voluntarily engages in discussions on energy-saving and carbon reduction achievements, targets, and roadmaps. The outcomes of these discussions are forwarded to relevant units and incorporated into initiatives such as improving product sustainability and expediting product carbon footprint disclosure.

As a global leader in the IoT industry, Advantech is dedicated to providing exceptional products and services. Customer satisfaction has a direct impact on Advantech's brand value, longterm market competitiveness, and customer loyalty. It also impacts the interests of key stakeholders, including employees, customers, shareholders, and partners. Consequently, maintaining strong customer relationships is essential to enhancing corporate competitiveness. In addition, cultivating high-quality partnerships contributes to advancing the overall innovation and creativity of the IoT industry.

• We view customers as partners and engage in market development through a co-creation mechanism.
• Improve channel distribution management, optimize the Global Customer Relationship Management (CRM) System, Technical Service Platform, and provide more diverse online training courses.
• Ensure comprehensive protection of customer privacy and safeguard customer rights and interests, even during the pandemic.
• We focus on the development of the IoT industry and continue to invest in IoT platforms and solutions.
• Improve customer feedback mechanism: Strengthen response speed through customer satisfaction surveys, AI analysis, and internal communication.
• Mitigate customer dissatisfaction risks: Make timely adjustments to products and services based on the data collected.
• Improve service quality: Enhance the technical support team to provide customized solutions.
• Reinforce internal performance mechanisms: Evaluate the possibility of organizing RBU customer satisfaction evaluations in the future to raise internal service awareness.

Advantech is committed to maintaining high customer service standards and continues to monitor customer satisfaction indicators to enhance the customer experience and ensure corporate sustainable operations. Position customers as partners and collaborate with them through co-creation mechanisms to jointly develop the market.

• Improve channel distribution management, optimize the Global Customer Relationship Management (CRM) System, Technical Service Platform, and provide more diverse online training courses.
• Ensure the complete protection of customer privacy.
• We focus on the development of the IoT industry and continue to invest in IoT platforms and solutions.

• 【2022】Unset goals / 2022 achievements progress are as follows
  1. The percentage of newly signed distributor partners reached 15%. The percentage of premium distribution partners reached 18%.
  2. Customized product education and training lists were designed according to different distributor partner types and piloted in emerging countries, successfully inviting nearly 40 distributor partners to participate in the online training program.
• 【2023】Goals achieved
  1. The percentage of premium distribution partners reached 21%.
  2. In 2023, a total of 13 distribution partners in emerging countries completed the course and passed the evaluation. Localization courses in Korea were launched online, the basic courses in Japan were completed, and the advanced courses were introduced in stages.
  3. Held over four Advantech global partner conferences, attracting more than 6,500 Advantech customers and partners from 60 countries.
• 【2024】Certain goals achieved
  1. In 2024, the overall revenue of global distributors declined by 9.6% compared to the same period last year. Although CSF's overall revenue performance fell short of expectations, it still slightly outperformed Advantech’s overall market performance for 2024, which recorded a gross revenue (GR) decline of 9.9%. The inability to achieve the originally targeted 14% GR growth was also influenced by broader market conditions.
  2. The percentage of premium distribution partners and sector-focused distribution partners accounted for 46%.
  3. A total of 12 Sector-Focused Partner Conferences / Advantech ADF events were held globally, engaging nearly 3,000 sector-focused partners.

• 【2022】Unset goals
  The customer satisfaction survey targeted customers representing the top 80% of cumulative sales in each region, with a total of 748 customers surveyed, 325 in Taiwan, 102 in Mainland China, 134 in North America, and 187 in Europe. The survey achieved a coverage rate of 60.76%, a response rate of 32.89%, and an average customer satisfaction score of 92.66 points.
• 【2023】Goals achieved
  Revenue from sampled customers accounted for 76.73% of total revenue, and the customer satisfaction score was 93.16 points
• 【2024】Goals achieved
  Revenue from sampled customers accounted for 81.37% of total revenue, and the customer satisfaction score was 93.15 points

• 【2022】Goals achieved
  1. Held 76 Advantech Connect global forums, uploaded 299 Video-on-Demand (VOD) videos, which were viewed 72,771 times and shared 1,899 times.
  2. Advantech utilized eStore and IoTMart to meet the purchasing needs of direct sales customers, with emphasis on optimizing the customer shopping experience and minimizing manual steps
• 【2023】Goals achieved
  A total of 68,748 customer feedbacks were collected from the official website and customer portal satisfaction, with an average satisfaction score of 4.03 points, and approximately 99% of the feedback had a satisfaction score of three or higher.
• 【2024】Goals achieved
  1. A total of 63,532 customer feedbacks were collected from the official website and customer portal satisfaction, with an average satisfaction score of 4.057 points, and approximately 99% of the feedback had a satisfaction score of three or higher.
  2. The number of views for the 2024 A-Connect replay reached 19,324.

• 【2022】Unset goals
  1. The Customer Relationship Management (CRM) system is progressively shifting to the cloud, Salesforce Sales Cloud was initial implemented in Taiwan and the AInterCon regions in 2022.
  2. Introduced the CRM Salesforce CPQ quotation function in the European region, realizing the consolidation of CRM and quotation functionalities, decreasing the number of business operation platforms, and improving the real-time synchronization of customer data.
• 【2023】Goals achieved
  1. Introduced the cloud customer relationship management system to the Japan branch and the Korea branch
  2. The marketing automation system has transitioned from a locally developed system platform to a cloud-based application
  3. Achieved: Japan, Korea, and Brazil branches implemented the Salesforce Sale Cloud in 2023
  4. Achievement: Introduced the Project Registration Module Version 2.0 to the European market in 2023, enabling real-time synchronization of complete CRM data and further breaking down data silos
  5. Improved the Salesforce platform information and cyber security risk score by nearly 20% to effectively prevent phishing, credential stuffing, and account infringement attacks
• 【2024】Goals achieved
  1. Integrated the CRM systems of the headquarters and the North American branch to improve business efficiency and facilitate management consistency. Achievement progress: The merger project was completed in May 2024, resulting in significant improvements to business efficiency and management consistency, optimized internal work processes, and mitigated operational risks. The digital upgrade project not only enhances data security and customer data protection but also demonstrates our commitment to corporate governance transparency.
  2. Advantech will launch the Salesforce PRM operation program with specific partners in Europe, providing a new customer experience that includes electronic customer contract signing via DocuSign, product and marketing information retrieval, project registration and rebate mechanism. The program aims to cultivate potential business opportunities, improve communication efficiency with key partners by replacing email, and enrich downstream customer data within the CRM through the rebate mechanism. Achievement progress: Achieved. In 2024, the partnership management operating system program was launched with specific partners in Europe (roughly 20 distributors), using the Salesforce PRM platform to offer a new customer experience, including electronic customer contract signing via DocuSign and product and marketing information retrieval. Furthermore, the project registration and rebate mechanism will also be completed in 2025 and will be progressively made available to our distributor partners. We expect improved communication efficiency, increased information transparency and real-time availability, and enhanced collaboration on contracts, projects, and orders through the shared platform.
  3. The Mexico branch introduced the Salesforce Sales Cloud to enhance customer information and cyber security and privacy protection. Achievement progress: The Mexico branch completed its relocation in October 2024 and has fully implemented multi-factor authentication, ensuring strict identity verification for all users accessing customer data. This further strengthens data security and demonstrates Advantech’s commitment to data protection as part of its ESG strategy

• The total number of "premium distribution partners" and "sector-focused distribution partners" is expected to account for over 50% of the overall number, with a revenue growth rate of over 10% in 2025.
• Expand the online training and certification program, aiming to reach a cumulative total of over 100 distribution partners globally, with more than 500 individuals completing exclusive training and certification courses.

• Using the Salesforce platform as the central hub, Advantech strives to promote its cloud-based CRM system by relocating branches in the ASEAN region and Australia to the new system to achieve over 85% coverage across overseas branches. This strategy will not only help realize standardization and transparency in data management, and enhance data security and decision-making efficiency, but will also facilitate corporate governance best practices.
• Implement Salesforce PRM in Europe and provide 70% of our partners with a brand-new customer experience, including customer electronic contract DocuSign signing, product and marketing information search, and the project registration and rebate mechanism.

• The revenue of the sampled customers accounts for over 85% of the total revenue.
• Achieve an average score of at least 92 points for customer satisfaction surveys.
• Established a mechanism for collecting customer satisfaction and conducting visits for VIP (KA) customers (3 customers).

• The overall revenue from global distribution channels is expected to continue expanding, with a target of surpassing USD 650 million and achieving a CAGR of over 10%. Efforts will focus on developing industry-specific and regional distribution partners, particularly premium distribution partners, who collectively contribute more than 50% of total revenue and volume.

• Integrate supply chain management as part of Salesforce and consolidate key processes such as front-line operations and inventory management. This will materialize real-time digitalization and transparency in order processing, inventory monitoring, and logistics management, which is expected to improve operational efficiency while lowering resource waste and carbon emissions, thereby achieving the goals of environmental protection and corporate governance.
  Implement a 360-degree customer view within the CRM by integrating data from multiple systems and contact points, enabling the sales team to gain comprehensive insights into customer needs and deliver more precise, personalized services. This measure will not only help improve customer satisfaction but also provide strong support for Advantech at the corporate governance level in terms of data transparency and decision-making optimization.

• Revenue from sampled customers accounts for at least 85% of total revenue, and the customer satisfaction score achieves an average of more than 93 points.
• Develop a global customer satisfaction benchmarking mechanism to ensure long-term competitiveness.
• Reinforce our ESG commitments to ensure transparency and sustainable customer service.

• The project to integrate the overall Salesforce environments of Advantech headquarters and the North American branch is expected to complete the system merger by May 2024. This integration involves technical evaluations, data migration, system configuration, and user training. Upon completion, it will enhance cross-regional business collaboration, enable data sharing, and standardize business processes.
• Provided European partners with a one-stop product and marketing information search platform, as well as developed project registration and rebate mechanisms to offer partners a more convenient and efficient collaboration experience, thereby enhancing customer satisfaction and sales effectiveness.

• Utilized EDM pages via the Mailbee system to implement improvements in real time based on data analysis.
• Optimized supply chain management to ensure on-time product delivery.
• Strengthened the customer care mechanism by establishing VIP (KA) exclusive services.

• Partnered with Salesforce to become a B2B industry success case featured on the Salesforce global website, showcasing the business value and cloud-based innovations enabled by the Salesforce platform. This highlights Advantech's achievements in digital transformation and innovation, while also allowing customers, partners, and distribution channels to gain more insight into the Company’s sustainable practices in environmental protection, social responsibility, and corporate governance.
• A regular progress review mechanism has been created, including internal weekly meetings to monitor the progress of implementation and quarterly business reviews, ensuring its consistency with the Company's strategic transformation goals.

• Evaluate customer satisfaction improvement based on the annual customer satisfaction scores.
• Establish a regular internal audit mechanism to ensure that service standards are upheld.
• In the future, consider engaging an external institution to conduct an independent review of the effectiveness of customer satisfaction management.
• The results of the customer satisfaction survey and records of improvement actions are reviewed annually according to the "Q-005 Management Responsibility Communication and Review Procedure." A regular internal audit mechanism (conducted once a year) is in place to ensure the implementation of service standards and to support external disclosures.

Advantech will continue to collect, monitor, and respond to suggestions from key stakeholders, customers, and partners through existing communication channels; no corrective measures have been taken because the topic has not yet caused a significant negative impact on stakeholders or the environment, economy, and society

As a global leader in IoT, Advantech's supply chain topics are not only closely related to its operational resilience and supply chain stability, but also have an impact on the Company's product quality, brand values, and long-term competitiveness. For stakeholders such as employees, customers, suppliers, and investors, a sustainable supply chain serves as the cornerstone of shared growth and sustainable development.

• Optimize the core competitiveness of the supply chain
• Strengthen the sustainability and resilience of the supply chain

Advantech is committed to promoting sustainable supply chain management and requires suppliers to comply with its "Supplier Code of Conduct" policy, continuously improve their performance in labor human rights, occupational safety and health, environmental protection, business ethics, and management systems to jointly form a responsible supply chain, reduce risks, and promote sustainable development.

The positive impact of a sustainable supply chain lies in the fact that promoting the sustainable transformation of a supply chain effectively mitigates environmental pollution, occupational safety, and labor rights risks, in turn increasing the entire supply chain's environmental and economic benefits. By establishing a responsible and transparent supplier management system, Advantech strives to enhance external stakeholders' trust in its commitment to corporate sustainable development and social responsibilities, thereby improving the Company's market competitiveness.

The negative impacts of a sustainable supply chain may originate from environmental pollution, occupational safety, and labor human rights problems caused by suppliers, all of which will weaken Advantech's brand value. Additionally, as suppliers undergo sustainable transformation, there may be increases in procurement costs, extended lead times, and inconsistent qualities, which can lead to additional pressure on product costs. Furthermore, when certain suppliers do not meet sustainability standards, it is necessary to replace them or re-evaluate the supply chain, which may lead to short-term operational instability and resource waste, in turn affecting the Company's operational stability.

Advantech’s countermeasures against negative impacts are outlined as follows:
1. Create a supplier sustainability assessment mechanism: Regularly evaluate suppliers' environmental and social performance and trace supplier information through questionnaires, on-site audits, and other means, and incorporate sustainability indicators into procurement decisions.
2. Establish a tiered management strategy for the supply chain: Engage in more intensive negotiations with PVL suppliers, such as signing codes of conduct, conducting capacity building, and assisting supplier transformation plans. On the other hand, streamline the management of non-PVL suppliers through screening and assessment.
3. Formulate response and backup plans: Establish backup sources for high-risk suppliers to mitigate the risk of single-source dependency, and implement a supply chain risk early warning system to prevent material shortages and regulatory violations.
4. Internal governance and cross-departmental integration: Establish a dedicated team responsible for the sustainable management of the supply chain within the organization, consolidate resources from procurement, quality, legal, and ESG departments, and incorporate sustainability goals into internal KPIs to strengthen organizational focus and execution.

• 100% of Tier 1 suppliers comply with Advantech's Supplier Code of Conduct
• None of the PVL suppliers use conflict minerals
• Expanded the scope of the annual ESG audit to reach 77.5% of tier 1 suppliers, achieving the 60% target
• Completed 100% improvement for significant suppliers' deficiencies

• 100% of Tier 1 suppliers comply with Advantech's Supplier Code of Conduct.
• None of the PVL suppliers use conflict minerals.
• Expand the scope of the annual ESG audit to reach 60% of Tier 1 suppliers.
• Completed 100% improvement for significant suppliers' deficiencies.
• 100% of high-carbon emission suppliers complete the GHG inventory.

• 100% of Tier 1 suppliers comply with Advantech's Supplier Code of Conduct.
• None of the PVL suppliers use conflict minerals.
• Expand the scope of the annual ESG audit to reach 80% of Tier 1 suppliers and ensure that 100% of the deficiencies of significant suppliers are addressed.
• 100% of PVL suppliers complete the GHG inventory.

• Request suppliers to sign and comply with the "Advantech's Supplier Code of Conduct."
• Perform annual supplier conflict minerals due diligence in compliance with the OECD's third-party mechanism.
• Regularly identify high-risk suppliers for audits and provide necessary counseling.

• Evaluate every year whether the achievement status (KPI) has improved compared to the previous year according to the set management policies and goals as a method of management improvement.
• Propose improvement solutions annually by referencing supply chain management best practices from DJSI and other benchmarking peers.

Advantech conducts annual evaluations of its suppliers, which include quality, procurement, and ESG sustainability management. Furthermore, the Company irregularly holds supplier conferences and exchanges to facilitate ongoing communication. Advantech is also actively involved in supplier development and training, providing resources to suppliers to support collaborative development across the supply chain. This collaboration promotes innovation in technology incubation and the use of novel materials. These efforts are detailed in the sustainability report, which provides a comprehensive overview of supply chain issues, allowing stakeholders to fully understand and evaluate the Company's supply chain practices.

Advantech is committed to reducing greenhouse gas (GHG) emissions and using energy and resources efficiently, striving to achieve our publicly committed carbon reduction targets to ensure the coexistence and shared prosperity of environmental protection and corporate sustainable development.

• Implement energy management system to increase energy efficiency.
• Expand renewable energy usage to reduce GHG emissions.
• Set more ambitious Science-Based Targets (SBT).

• We have adopted Science-Based Targets (SBT) and are committed to achieving them by 2030.
• Join the RE100 initiative and commit to achieving the goal of using 100% renewable energy by 2040.
• Set the goal of achieving net zero by 2050.
• We will set a more challenging SBT carbon reduction target (1.5°C pathway) by 2025 to demonstrate our commitment to carbon reduction.

• Reduce carbon emissions: Gradually identify greenhouse gas emission sources and quantities with precision to establish effective carbon reduction targets.
• Reduce operating costs: Achieve reductions in energy consumption and operating costs through energy system introduction, energy policy implementation, target setting, and energy saving project implementation.
• Reduce energy impact: Deploy renewable energy at various locations of operation. We not only gradually achieve the RE100 goal but also reduce reliance on external renewable energy sources, thereby further controlling and lowering operating costs.
• Enhance corporate image: Participating in initiatives such as RE100 and CDP, and setting SBT, Advantech not only demonstrates its net-zero commitment but also enhances its international corporate image.

• Increase in operational and financial costs: The management of GHG emission data, the installation of energy management systems, equipment replacement, and installation and procurement of renewable energy equipment may lead to an increase in operating costs.
• Energy transition risks: Underestimation of renewable energy procurement may lead to a delay in achieving the RE100 goal, thus prolonging the Company's energy transition timeline.
• Advantech's actions to address negative impacts are as follows. Please refer to 4.3.2 of this report for detailed information.
  - Enhancing energy management efficiency: Advantech utilizes internal iEMS (Intelligent Energy Management System) for energy monitoring and analysis to improve energy efficiency. Meanwhile, we have implemented ISO 50001 for comprehensive energy management, with energy-saving plans targeting core energy-consuming equipment such as chillers, laboratory equipment, production equipment, and air conditioning systems, effectively reducing operational costs.
  - Expanding renewable energy investments: Advantech vigorously invests in renewable energy. Its major production sites have adopted measures such as installing solar panels and promoting aquavoltaics. This is achieved through the purchasing of renewable energy certificates and directly procuring renewable energy from power suppliers, ensuring the attainment of the RE100 goal. At the same time, by formulating specific short-, medium-, and long-term renewable energy investment plans, we can progressively increase the percentage of renewable energy used and advance corporate sustainable development.

• In 2024, the Company's overall GHG emissions per unit of revenue decreased by 4.9% compared to 2023, and it is 28.0% lower compared to the 2019 SBT baseline year.
• In 2024, Advantech received a B List rating in CDP Climate Change Questionnaire assessment.
• In 2024, Advantech expanded its GHG inventory and ISO 14064-1 verification were completed at AJMC in Japan and AKSC in South Korea.
• Advantech Taiwan and the Kunshan plant continued to obtain the ISO50001 verification in 2024.
• In 2024, Advantech’s sites in the United States began using renewable energy.

• Renewable energy targets: Continue to increase renewable energy usage to 20% across Advantech's global RBUs.
• GHG goals: Advantech's GHG emission intensity per unit of revenue decrease by 36% compared to 2019.
• Energy reduction targets: In 2024, achieve a 3% reduction in per capita office electricity consumption and a 5% reduction in electricity consumption per work hour at production sites.

• Renewable energy targets: Achieve 50% renewable energy usage in Taiwan and Kunshan.
• GHG goals: Reduce Scope 1 and Scope 2 carbon intensity by 60%; reduce the carbon intensity of Scope 3 products by 49%.

• Except for the Taiwan and Kunshan plants, we are progressively implementing the ISO 50001 energy management system at all operation sites. Energy consumption was lowered by setting energy KPIs and utilizing iEMS for monitoring and improving energy efficiency.
• Scope 2 emissions were decreased by increasing the use of renewable energy, thereby gradually achieving the RE100 goals. Regions currently using renewable energy include China, the United States, and Europe.
• Enhance the Group's monitoring of carbon data by gradually expanding the GHG inventory and the scope of ISO 14064-1 verification. Conducted Scope 1 and 2 GHG inventories and verifications for overseas subsidiaries AJMC and AKSC in 2024.
• Implemented more challenging SBT carbon reduction goals (1.5°C pathway) during 2024-2025 to demonstrate our determination in carbon reduction.

• Monitor energy usage at various locations of operation by implementing the ISO 50001 energy management system, setting energy KPIs, and holding regular energy meetings.
• Ensure the credibility of GHG emissions data from various locations of operation through ISO 14064-1 verification.
• Improve the credibility of energy usage data through the AA1000 verification process in the report.

• Employees: Provide GHG inventory personnel with relevant internal and external education and training. Additionally, distribute quarterly Advantech ESG e-newsletters to internal employees to improve their sustainability awareness.
• Customers: Respond to customer questionnaires and audits, and provide relevant supporting documentations as needed.
• Suppliers and contractors: Conduct on-site audits for selected suppliers to gain deeper insight into their implementation of GHG management practices. We also hold supplier conferences to communicate Advantech’s expectations for GHG management and provide free GHG inventory resources and channels. Moreover, as of 2025, Advantech plans to provide diverse education, training, and seminar resources based on supplier grading results to help suppliers continue to enhance their sustainable management skills.
• Shareholders and Investors: Disclose our sustainability performance through our Sustainability Report and Advantech's official website.
• Business partners: Respond to partners' inquiries and provide supporting records as necessary.
• Government, public associations, and media: Respond to inquiries from government units and relevant public associations, and provide supporting records as necessary.

Advantech places great importance on occupational health and safety management, as it not only protects employees but also impacts the Company's operational efficiency and reputation.

• Reinforce education and training, establish an occupational health and safety culture.
• Implement risk identification procedure and evaluate potential risks.
• Lower the hazard of potential risks and enhance the effectiveness of opportunity development.
• Increase the intensity of inspections at all plant and office locations.

The Company is dedicated to improving occupational health and safety, achieving zero occupational accident and total health care, fulfilling our responsibilities as a corporate citizen, and realizing corporate sustainability.

This allows us to enhance our risk management skills, implement effective safety and health measures, significantly minimize occupational injuries and diseases, and thereby elevate work efficiency and morale. At the same time, it can also increase our corporate reputation and brand image.

Inadequate management can lead to negative impacts such as increased costs caused by property loss, employee dissatisfaction, lowered work efficiency, and damage to corporate reputation, etc.
Advantech's countermeasures against potential negative impacts are outlined as follows:

• Main production plants have all established and passed ISO 45001 management system certification
• Provide mandatory education and training on occupational health and safety, and employees are required to complete the tests. Furthermore, occupational health and safety related lectures and briefings are held from time to time.

• Number of major occupational accidents: 0.
• No records of fines/penalties imposed by competent authorities due to occupational safety incidents.
• No major nonconformities were identified in external audits.

• Number of major occupational accidents: 0.
• Main production plants have established and passed ISO 45001 management system certification.

• Number of major occupational accidents: 0

• The headquarters (Linkou Plant, Taiwan) has launched a fire-related business continuity plan project, strengthening emergency response capabilities through scenario-based simulations and drills.
• Expand the emergency response team and design regular emergency evacuation drills to familiarize employees with the emergency response plan, evacuation routes, roll call procedures, and other relevant protocols.

• Identify operations with higher risks through safety and health identification, propose feasible management solutions, implement improvement measures, and make sure they are completed by verifying their effectiveness.
• Pass the external audit by a third-party verification company, maintaining compliance with ISO 45001:2018 for operations within the scope of implementation standard requirements.
• The Headquarters in Taiwan holds quarterly occupational health and safety review meetings, attended by the President and Chief Operation Officer/COO.

• Employees: We provide a mandatory online occupational health and safety course for our employees, and they must complete a test after the course. Moreover, the Company holds occupational health and safety-related workshops and briefings from time to time to facilitate internal communication.
• Customers: Respond to customer questionnaires and audits, and provide relevant supporting records as necessary.
• Suppliers and contractors: All suppliers are required to fill out the Environmental Safety and Health (ESH) Commitment Statement, as well as conduct hazard awareness education, training, and audits for contractors entering the plants.
• Shareholders and investment institutions: Disclose the Company's occupational health and safety-related performance through the Annual Report and Sustainability Report.
• Partners: Respond to partners' inquiries and provide supporting records as necessary.
• Competent authorities: Respond to government agencies' inquiries and provide supporting records as necessary.

Advantech is dedicated to fostering a learning environment that empowers employees to grow and reach their full potential. From new employee hire orientation to the development of business management skills, we offer comprehensive training resources to support employees' steady development at every stage of their careers. Through the Advantech Academy's four academies (Management, Professional, General Education, and New Employee Hires) and a digital learning platform, employees can flexibly select courses based on their career needs to strengthen competencies, bolster expertise, and achieve personal growth.
To highlight the importance of talent development, the Company's top HR management is also represented on the Board, directly involved in the formulation of relevant strategies. At the same time, to cultivate global talent, the Company also incorporates education and training indicators in the ESG KPIs of executive level supervisors in major overseas business units, focusing on the integration of sustainability and talent development.

Each year, through the O&PR (Organization & People Review) and performance appraisal system, we integrate our corporate strategy with individual development plans to systematically understand employee potential and development needs. By combining diverse resources such as promotions, job rotations, and training courses, we build a comprehensive talent development mechanism. This strategy helps boost organizational performance while reinforcing continuous leadership development and ensuring a strong succession pipeline.

【Advantech employee development statement】
Advantech is committed to creating an employee-centric approach culture, continuously investing in talent development and fostering a culture of self-management and continuous learning. The Company not only values the achievement of employees' individual career goals, but also actively pursues the continuation of its business philosophy and core values, cultivating professional talent with leadership qualities to ensure the sustainable growth of the Company and its employees.

Advantech considers talent cultivation and development the bedrock of corporate sustainable operations, delivering the following positive benefits for the Company and its employees through a systematic mechanism and abundant resources:
1. Improve employees' competitiveness at the workplace: Continue to improve employees' expertise and leadership potential through courses such as new employee hire orientation, competency reinforcement, and management capabilities.
2. Foster individual and organizational growth: By integrating the O&PR annual organization and talent review mechanism, we help employees define their career plans and development directions, achieving a win-win situation for individual success and organizational goals.
3.Form a positive corporate culture: Encourage employees to engage in voluntary learning, be self-driven, and shape a learning organization to elevate overall adaptivity and resilience.
4. Lower operational risk and cost: Effectively lower the cost of external recruitment and the risk of employee turnover through internal cultivation of key talent, thereby increasing the efficiency of human resources deployment.
5. Zero negative impact on the environment and human rights: Current talent development behaviors do not pose a negative impact on the economy, environment, or human rights, and comply with the principle of responsible management.

If we fail to engage in proactive talent cultivation and development, the Company may be exposed to the following potential risks and negative impacts. To address this, Advantech will adopt corresponding measures to prevent negative impacts.

Note: APEX Workout promotes outstanding supervisors at the management level and above.
1. The e-learning completion rate declined slightly in 2024, mainly due to a shift towards more diverse employee learning participation patterns after the pandemic, increasing the percentage of physical course participation.
2. Global APEX promotion for excellent performance supervisors at management level and above.
3. In 2024, Advantech renamed the LEAP Workout project as the Global APEX project.

• The e-Learning global employee (indirect employee) participation rate reached 75%
• The physical course satisfaction score was 4 (out of 5), and the physical participation rate reached 90%
• Global APEX promotion success rate reached 40%

Note:
1.In response to the post-pandemic shift in talent development toward a combination of online and physical courses, the 2025 targets have been adjusted to more accurately reflect actual training participation.
2.In 2024, Advantech renamed the LEAP Workout project as the Global APEX project. Global APEX promotion for excellent performance supervisors at management level and above.
3. To improve online learning participation and respond to future learning trends, the Company will focus on three aspects: platform optimization, establishing learning maps for different job categories, and formulating AI academy courses to boost learning motivation and resource introduction

• The e-Learning global employee (indirect employee) participation rate reached 80%
• The physical course satisfaction score was 4 (out of 5), and the physical participation rate reached 95%
• Global APEX promotion success rate reached 40%

* Note: In response to the post-pandemic shift in talent development toward a combination of online and physical courses, the 2030 targets have been adjusted to more accurately reflect actual training participation.

Recruiting outstanding talent is one of the drivers of corporate growth. Advantech has created the Elite recruitment project inspired by the core concept of "Right People on the Bus", by inviting outstanding talent who is highly compatible with and identify with Advantech’s corporate spirit to join. It is expected that full-time employees recruited through this program will successfully adapt to the Company’s corporate culture, achieve a retention rate of over 80%, and demonstrate better-than-average performance in performance appraisals.
Additionally, to enhance employees' comprehensive capabilities and support the Company's long-term development, the Advantech Academy has established a four-academy framework: the Management Academy, the Professional Academy, the General Education Academy, and the New Employee Hires Academy. These academies focus on the learning needs of different fields, covering various career stages and development paths of employees. Key action plans of various academies are elaborated below:

• Senior management: Corporate operating framework transformation counseling program
  To assist the Company in business structure transformation, Advantech organizes the "CST (Corporate Structure Transformation) Workshop", aimed at providing executive level supervisors with a framework for strategic planning and problem-solving. The course focuses on helping Sector teams develop systematic and comprehensive program plans, and assisting executive level supervisors to explore and resolve corporate transformation challenges
• Middle management: Managing down
  The importance of middle management lies in managing down, effectively leading teams, motivating subordinates, and empowering them to reach their full potential. In light of this, Advantech has launched the Leadership M’golf Program. Through hands-on, scenario-based training, the program equips middle management with the skills to deal with complex team dynamics and enhance their leadership effectiveness, enabling their teams to achieve corporate objectives.
• Junior management: Coaching-style counseling
  The main challenge of junior management is team management and effective leadership. Advantech has implemented coaching-style counseling courses, focusing on applying coaching-style counseling techniques to build effective teamwork and help junior management improve their management skills.
• Potential talent training program: Global APEX Program
  Advantech continues to advance the Advantech People of Excellence (APEX) Program, elevating it to the Global APEX Program. Aimed at developing domestic and international high-potential leaders and professionals, the program improves participants’ strategic thinking and problem-solving capabilities through learning Advantech’s core competencies and formulating solutions to real-world critical challenges. Taking the IoT Automation Sector as an example, by fostering consensus and focusing on strategies and action plans through the Global APEX Program, the Company delivered a 9.6% revenue growth for this business group in the second half of the year compared to the first half.
  To support participants in advancing their career development, the Program is integrated with Individual Development Plans (IDPs) to identify high-potential individuals, design personalized growth paths, and apply mentoring and coaching mechanisms that enhance the depth and practical impact of their continued development. Through this long-term cultivation mechanism, the Global APEX Program will serve as a main driver of key corporate talent development, laying a strong foundation for future leaders.
  Note: In 2024, Advantech renamed the LEAP Workout project as the Global APEX project.

To accelerate digital transformation and improve Advantech's core competitiveness, we have launched a professional academy to conduct in-depth training on AI technology and corporate growth strategies, ensuring the cultivation of key talent and internal application. Meanwhile, through systematic talent development programs, we help employees respond to digital transformation, mitigate the potential negative impacts of industrial transformations, and achieve the shared growth of the organization and our employees.

• AI Academy and certification course
  AI technical talent cultivation: Advantech collaborates with external organizations to launch a systematic AI certification program, providing employees with the opportunity to learn the latest AI technologies. Upon completing the program, employees can take a certification exam to obtain relevant credentials and elevate their professional competitiveness.
• Internal AI social media platform: Establish an interactive space for employees to exchange ideas on AI, Generative AI (GenAI), and IT applications, offering a platform for mutual support, learning, and co-creation, and fostering a company-wide advancement in AI capabilities.
• Establishment of the M&A Academy
  Strengthen M&A and investment abilities: To support corporate growth, the M&A (Mergers & Acquisitions) Academy was launched to offer professional training to enhance the team's capabilities in aspects including M&A transactions, investment valuation, and strategic planning.
• Advantech China (ACN) technology forum
  Advantech China hosts annual technology forums to promote internal technical discussions and cross-departmental collaborations, breaking down technical barriers and increasing overall R&D efficiency.

At Advantech, we vigorously promote a culture of diversity and inclusion and offer various courses and activities aimed at enhancing employees' understanding and acceptance of diverse cultures. The aim is to foster collaboration and trust in the workplace.

• Implicit bias course: Through the course "Recognizing Implicit Bias and Shaping a Friendly Workplace", supervisors will be able to identify and minimize the impact of bias, thereby creating a more inclusive and equitable workplace.
• Cross-cultural communication workshop: Advantech organizes cross-cultural communication and management workshops to strengthen the cross-cultural collaboration skills of supervisors and employees, particularly their understanding and respect for colleagues from diverse backgrounds, an essential element of multinational teams.

In responding to global environmental change and industrial transformation trends, Advantech continues to launch diverse sustainability courses such as eco product innovation, circular and renewable economy, and low-carbon manufacturing transition, to mitigate climate change and industrial transformation-related impacts. The course encompasses diverse aspects, including executive level supervisors ESG strategies, ESG general knowledge cultivation, carbon management, and biodiversity. The aim is to strengthen the organization's sustainability awareness and capacity for action through company-wide participation.

To help new employee hires quickly assimilate into Advantech and enhance their career development, the ACE Camp (Advantech Culture Experience Camp) has been upgraded. Besides introducing a corporate culture, organizational structure, vision and mission, the camp features career experience sharing by supervisors, enabling the new employee hires to understand the Company's core values.
The ACE Camp also includes team-building activities and guided tours of the Company's facilities to foster cross-departmental integration and bolster their understanding of the Company's environment. Moreover, by integrating the Workday system, supervisors and new employee hires can track learning progress and probation assessment results in real-time, ensuring that new employee hire developments are in line with expectations.
By introducing a mentor system, experienced supervisors and colleagues serve as counselors to help new employee hires adapt to the workplace more quickly. Combined with a probationary period assessment system and mandatory online courses, this system ensures that new employee hires can quickly deliver expected performances.
Through these mechanisms, Advantech strives to provide new employee hires with a welcoming and efficient learning experience, helping them quickly assimilate and grow with the Company to embrace a sustainable future.

To enhance digital learning effectiveness and employee user experience, Advantech launched an e-Learning optimization project in 2024, conducting a comprehensive review and reclassification of courses within Advantech Academy's four academies (Management, Professionalism, General Education, and New Employee Hires). Courses with outdated content or low participation rates were removed, core general knowledge and regulatory courses were re-established. At the same time, an automatic assignment system was implemented to assign mandatory content based on employees' job attributes, thereby elevating learning timeliness and accuracy.
Through platform optimization and resource integration, management and employees can monitor learning progress and training outcomes in real time, thereby improving learning management efficiency. The overall optimization initiatives also contribute to increased platform usage and course participation, thereby laying a firm foundation for achieving the 2025 e-Learning goals.

To ensure the effectiveness of human resource management-related measures and sustainability goals, the Human Resources Department holds quarterly meetings to set targets for various departmental indicators, track progress, and explain and review implementation effectiveness. Through an ongoing evaluation and adjustment mechanism, we focus on goal-oriented management to ensure that relevant action plans are implemented effectively and continuously improved, thereby boosting overall sustainability management performance.

Additionally, Advantech Academy's learning and development plans aim to facilitate the achievement of long-term sales goals and employee growth. To ensure the effectiveness and tangible impact of various learning programs, we have adopted the Kirkpatrick Model of Training Evaluation, which helps measure the success and benefits of training programs and enables continuous optimization and improvement. The specific levels evaluated are as follows:

• Tools & methods: Post-course feedback questionnaire, satisfaction survey, and course evaluation indicators.
• Key indicators: Participant satisfaction with course content, the extent to which the course design meets learning needs, and feedback on instructors and learning methods.

• Tools & methods: Post-course tests, practical evaluations, learning logs, and case study discussions.
• Key indicators: Participants' performance in knowledge tests, skill proficiency, and practical evaluation results.

• Tools & methods: Supervisor feedback, behavior observation, and subordinate feedback (pre- and post-training).
• Key indicators: Whether employees have begun applying acquired leadership skills to their work, changes in performance, and improvements in cross-departmental collaboration.

• Tools & methods: Implementation of key topics, KPI tracking, and employee promotion and development progress.
• Key indicator: Improvements in employees' performance, achievement of sales targets, employee retention rate, as well as talent promotion and development status.

Based on the evaluation results from the four levels, Advantech Academy conducts a comprehensive review and reflection and makes course adjustments and optimizations in response to specific needs. Through a cycle of learning and feedback, Advantech Academy will continue to enhance the impact of talent development to ensure that it can continuously generate value for employees and the Company in a dynamic market environment.

1. Online learning participation rate: Regularly review learning progress through the digital learning platform's usage records and course completion rate data.
2. Physical course satisfaction and participation rate: Monitored by consolidating feedback questionnaire data (L1 reaction level) and attendance records.
3. Global APEX promotion success rate: The “talent promotion and development status” from the L4 results level is used as the main indicator, complemented by the IDP mechanism.

• Employees: Professional training courses are offered, followed by post-course satisfaction surveys. Feedback and development needs are gathered through performance reviews and the O&PR (Objectives & Performance Review) system every year. Individual development plans are formulated based on performance evaluations, serving as the basis for ongoing improvement of training effectiveness and learning resource allocation.
• Customers: Education and training on product applications and solution implementation is provided to corporate customers to help increase operational efficiency and overall service experience. Satisfaction feedback and subsequent learning needs are gathered through questionnaires.
• Suppliers: Advantech regularly holds supplier conventions to communicate and exchange information on the Company’s sustainability policies, operating procedures, and collaboration guidelines. These sessions aim to enhance suppliers’ understanding and execution of quality, environmental safety, and sustainability standards, fostering mutual growth and long-term partnerships.