Fostering a Corporate Culture of Employee Well-Being

Human Rights Management Actions

• PharmaEssentia adheres to the core principles of the "UN Global Compact," the "UN Universal Declaration of Human Rights," the "International Labor Organization's Tripartite Declaration of Principles," and the "OECD Guidelines for Multinational Enterprises," as well as local regulations. We incorporate human rights considerations throughout its operations. The scope includes the company's operational activities, industrial chain partners, and merger and acquisition entities; it covers employees, non-employees, partners in the value chain, suppliers, contractors, customers, and the communities around PharmaEssentia's operational sites. The company conducts annual audits of suppliers to ensure that significant suppliers implement relevant policies and commitments.
• Through various advocacy and training initiatives, the company declares a "zero tolerance" stance against all forms of unlawful workplace violations and takes corresponding actions. And plans are in place to complete mandatory anti-discrimination and anti-harassment training for all employees by Q2 2024.

Annual implementation of Human Right Management

Transparent Internal Communication and Grievance Mechanisms

PharmaEssentia's headquarter provides multiple grievance channels. Upon receiving a complaint, the complainant is anonymized and the case is investigated. In 2023, PharmaEssentia did not receive any internal or external complaints. The grievance mechanisms are as follows：

• Stakeholder and Employee Ethics Violation Complaint Channel on the official website, available for external parties to report or file complaints.
• Employee Suggestion Box： voice@pharmaessentia.com
• Workplace Legal Infringement：hr@pharmaessentia.com

• Human Rights Policy
• Regulations for Establishing Measures of Prevention ,Correction, Compliant and Punishment of Sexual Harassment at Workplace
• Codes of Ethical Conduct
• Principles of Ethical Corporate Management

PharmaEssentia adheres to a people-centric philosophy, providing a safe and friendly work environment for its employees. We aim to attract more professional talent to form a high-quality team by offering rich learning resources, competitive salaries, and benefits, with a focus on diversity and inclusion. In 2023, the company participated in the Bloomberg Gender-Equality Index (GEI) survey for the first time, emphasizing a diverse and inclusive employee workforce structure, co-creating a healthy and happy workplace.

Employee Structure and Gender Equality

• Gender Equality：

  • 2022 GEI Report

Diversified Employee with Gender Balance

In 2023, all employees at PharmaEssentia were full-time, reflecting the company's commitment to diversity in the global market and focus on gender equity. The proportion of local residents employed in each country exceeded 95%.

• In Taiwan region:

  • PharmaEssentia Taiwan (including Taipei headquarters and Taichung plant): The company employed 321 full-time workers, including one employee with disabilities. The gender distribution among all employees was balanced, with 50% male and 50% female. Among management, 61% were male and 39% female. The Taipei headquarters employed a male external IT worker and a female cleaning service worker as non-employee staff, while the Taichung plant employed a female outsourced cleaning worker. The IT contractor at the Taipei headquarters was converted to a permanent position in 2024.
  • Panco, mainly responsible for warehousing, logistics, and sales: There were 19 full-time employees, reflecting the job's nature with 63% male and 37% female. The managerial staff was evenly split between males and females. Four male and one female non-employee workers assisted with the previous year's WH (warehousing) project.

• In the Overseas region:

  • US subsidiary had 130 full-time employees, with a gender distribution of 45% male and 55% female. Among management, 49% were male and 51% female.
  • Japan subsidiary had 45 full-time employees, with 71% male and 29% female due to local conditions. Among management, 78% were male and 22% female. Additionally, two employees identified as LGBTQI.

• Multiracial Talent Statistics

  In our overseas subsidiaries, we have also expanded the statistics of racial diversity indicators. Except for Japanese subsidiary, where all employees are Asian descent, our US subsidiary showcases a culturally diverse and inclusive workplace.

  

• STEM and Creative Performance Departments Talent Statistics

  

New Hires and Employee Turnover Rates

• PharmaEssentia continues to grow globally, actively creating job opportunities. In 2023, the employee growth rate was 19.1%. To stimulate organizational vitality and cultivate well-rounded talent, when new business needs arise or key positions become vacant, we prioritize internal staff rotation assessments and promote from within. This approach fosters a cycle of diversity in promotion and retention.
• For instance, in 2023, PharmaEssentia Taiwan had 95 job openings, with 40 filled internally and 55 through external recruitment; the retention rate for supervisors and above ranged from 86.3% to 93.6%. Regarding Employee turnover, in 2023, PharmaEssentia (including subsidiaries) had a total of 559 employees, with 56 departures, resulting in an overall turnover rate of 10%. The voluntary turnover rate was 6.8%, while the involuntary turnover rate was 3.2%.

Compensation System

Our compensation system is based on compliance with local labor laws and ensures that there is no disparity based on race or gender. Beyond considering macroeconomic indicators, the company determines salary adjustments, promotions, and structured raises based on the achievement of annual business objectives, individual performance assessments, and data from third-party compensation and benefits surveys, aiming to provide compensation that exceeds industry standards. In the U.S. market, our compensation policy not only adheres to local regulations but also takes into account the AoN Radford Lifesciences Benchmarking Data.

In addition to competitive salaries and bonuses, the company offers various profit-sharing mechanisms to retain talent, such as "Employee Stock Options," "Restricted Stock Units," and "Employee Stock Purchase Plans."

• Employee Salary Statistics

  • The total and average salaries of full-time employees non-managerial positions at our company have progressively increased in Taiwan.
  • In 2023, the ratio of the median salaries of non-managerial male employees to female employees at our company was 1.08:1.
  • At PharmaEssentia Taiwan headquarter, the ratio of the highest compensation to the median compensation of other employees is approximately 12.7:1. In the United States, the ratio is 3.6:1.

Talent Development Strategic Objectives

PharmaEssentia's talent cultivation and development framework is aligned with corporate culture, core values, and global strategic layout. The talent cultivation system is divided into three functional aspects: "Core Values," "Management Leadership," and "Professional Skills." In 2024, we will provide a rich array of training courses and digital self-learning resources for senior, middle, and junior managers, as well as general colleagues. We plan to design a dual-track, diversified talent development framework to nurture a diverse talent pool.

Talent Development Action Plan

• PharmaEssentia's employee training methods include comprehensive on-the-job training, diverse learning channels, and sending top talent overseas for training to cultivate professionals in the biopharmaceutical field. This is supported by a workplace mentorship system, enhancing our talent management efficiency and preparing for long-term sustainable leadership.
• In 2024, we will also strengthen our digital learning platform, introduce a variety of digital self-learning resources, and encourage colleagues to engage in self-directed learning and development. This will allow individuals to tailor their learning agendas to their needs, enabling learning anytime, anywhere.

Talent Development Statistics

• Education and Training Hours Statistics

  In 2023, PharmaEssentia's main operational sites invested 7,744 hours in education and training for managers and general employees, 296 hours in the key talent development plan, and an additional 1,682 hours in the aforementioned sustainability-related education and training, bringing the total education and training investment to 9,722 hours, with a total investment cost exceeding NT$36 million.

• Statistics of Training Hours in Taiwan

  

  

Performance Assessment and Promotion System

Performance management at PharmaEssentia is based on driving organizational growth, establishing a fair and objective performance assessment system that is aligned with the company's strategic development, and respecting the diversity of its employees, whatever their race, gender or age may be.The completion rate of performance evaluations for all full-time male and female employees in various job categories is also 100%. . In 2023, a total of 49 outstanding employees were recognized at the Taiwan headquarter (including the presentation of awards and monetary incentives), with 40 employees being promoted. The internal promotion rate for mid to senior-level managerial positions reached 22.5%.

Talent Attraction and Retention Strategic Objectives

PharmaEssentia has a people-oriented recruitment policy. We attract and retain outstanding talents through competitive compensation and benefits, a friendly environment, humane management, obstacle-free internal job rotation, and training and development opportunities. In addition to Taiwan, we have locations in multiple countries around the world, with a diverse workforce serving the company. The HR department is responsible for executing human resource analysis and providing bi-weekly reports on the company's human resource structure and recruitment status to senior executives in order to create a sound foundation for recruitment practices.

Talent Attraction and Retention Action Plans

• Talent Attraction

  • Establish diverse recruitment plans, including job platforms, social media, campus recruitment events, industry-academic cooperation, internships, and talent recruitment consultants, to attract potential talent and enhance company competitiveness.
  • Utilize "AI tools" and "personality assessments" to provide more objective selection criteria, assisting HR in streamlining the recruitment process and improving interview efficiency.
  • Offer conditions superior to labor laws and flexible working hours to attract talent.

• Talent Retention

  • Continuously optimize mechanisms such as promotions, performance evaluations, and employee development plans to provide employees with career development opportunities.
  • Regularly conduct training courses to nurture and develop outstanding talent and provide opportunities for job rotations.
  • Regularly participate in market salary surveys to provide competitive compensation and develop diverse reward mechanisms to timely motivate employees from different groups.
  • Hold annual selection of outstanding employees to acknowledge their outstanding performance and enhance their sense of belonging.

• In the Future

  • Support colleagues in long-term career development within PharmaEssentia to help them broaden their horizons and gain diverse experiences, fostering cross-departmental talent and further achieving talent retention goals.
  • Future plans include commissioning a third-party independent unit to conduct an employee opinion survey report, identify key retention indicators, identify areas for improvement, and implement talent development projects.

Employee Benefits and Care

Since the establishment of the Employee Welfare Committee (EWC) in 2013, PharmaEssentia has held four regular meetings annually to jointly plan employee-related welfare activities with the company and the EWC. In 2023, PharmaEssentia and Panco's total welfare expenditure was approximately NT$3.96 million, a 20% increase from the previous year, with a total of 945 people benefiting from various welfare schemes. In 2024, a hardship relief policy will be established, allowing employees facing difficulties due to major illnesses or other factors to apply for emergency relief funds from the company to ensure basic living needs.

Parental Leave Statistics

• Maternal Care Initiative

  Our company adheres to government policies regarding the care of maternal and infant health and safety. We do not employ underage workers, nor do we assign tasks to pregnant or lactating female employees that may pose risks to infants. For breastfeeding mothers from the date of pregnancy to one year postpartum, nurses provide counseling and follow-up, addressing physical, ergonomic, work-related stress, and personal health risk factors to prevent potential maternal hazards. In 2023, the breastfeeding room in our company received an excellent rating in the evaluation.

  

• Statistics on Reinstatement and Retention after Parental Leave

  The statistics for 2023 show that the return-to-work rate and retention rate for female and male employees in Taiwan after parental leave were 100% and 67%.

  

Employee Assistance Program

PharmaEssentia extends its employee assistance program primarily to include on-site health services and has enhanced EAP psychological counseling services. Qualified professionals with appropriate certifications assist employees in addressing various issues affecting work efficiency through psychological counseling services. In 2023, a total of 9 employees have participated in counseling sessions. Additionally, we provide labor re-employment assessments to assist in suitable job matching.

Employee Satisfaction Survey

For key focus areas or events organized by the company in Taiwan, we also utilize survey questionnaires to understand the actual situation, grasp the needs of employees, and use them as a basis for improvement in benefits and activities. In 2023, Taipei conducted a monthly survey on "abnormal workload" among employees three times a month, with a total of 93 employees participating and receiving counseling guidance. In Taichung, a "workload questionnaire" survey was conducted during employee health checks, with a total of 139 responses received.

The U.S. subsidiary conducted an employee satisfaction survey, with 114 employees participating, achieving an average score of 4 out of 5. The Japanese subsidiary also conducted an employee satisfaction survey in 2023, with 52 participants, achieving an average satisfaction score of 66.4, compared to the industry average of 48.9.