Delta Electronics (Thailand) (“DET”) has reported a lower operating profit in 2011 as compared to previous year. This is largely due to the high inventory provisions of the photovoltaic (PV) inverters resulting from government of many countries cutting back on spending and subsidies. Nevertheless, Sales revenue has grown by 7.6% to THB 38,434 Million compared to 2010. Healthy growths are seen in our new businesses while our ODM businesses remain robust.

For instance, Delta’s recently released on-board charger for Electric Vehicle and Hybrid Electric Vehicle (EV/HEV) has already achieved market leading standard and several major European car makers have expressed their keen interest with follow-up audits in DET factory. Therefore, instead of succumbing to the volatile economic situation in USA, Europe and Japan, DET automotive business can look forward to embracing a lot of new opportunities in those countries with our new products and market presence. However, power supplies for high end servers and storage products are expected to be the key drivers for ODM business segment in 2012 again in light of the excellent business management of our global ODM accounts supported by a stronger German design team.

With regard to DET’s standard industrial products business, global PV inverter market growth will remain uncertain owing to cautious government and consumer spending in 2012. However, with wider range of new Solivia products like the mini central inverter and successful sales penetrations into India, Southeast Asia and USA, DET’s Solivia PV inverters’ profitability will improve. As for our wind turbine converters, continuing investment will be expedited in tandem with our first major customer who will be gaining significant momentum in the market.

The management and the Board of Directors remain committed in growing our sales revenue by expanding our market coverage in many regions of the world and by the regular introduction of many new products. Our core businesses are still in Datacenter, telecommunication, automotive, component, and alternative energies with focus in energy savings and environment friendly products and processes. Based on European standard, our strong R&D team will also keep expanding around the world to provide and support more systems, services, and solution businesses to enhance our profitability and to maintain our global leading position in power management.

Other key DET’s investment for 2012 include alternative green energy businesses and the development of Brazil, Russia and India businesses which have seen very encouraging growth that should continue throughout 2012. Meanwhile, our confidence remains unshaken in Thailand despite of the recent flooding crisis.

In conclusion, in spite of the pessimism in 2012 global economy as echoed by world leaders at the World Economic Forum, DET is ready to counter these challenges by accelerating our new products’ Time to Market, investing in new markets to extend our reach and re-align major expense priorities. We strongly believe that DET’s unyielding pursuit for excellence, proactive planning, team work and disciplined execution shall keep us on the right track. Without the support and trust from our shareholders, customers, vendors and employees in DET, the journey will be an arduous one. It is also with this support that DET had won our first regional award - ASEAN Business Award 2011 second position. Together, we will continue to build a stronger foundation for creating businesses that will generate immense value for all of us. The Board of Directors would like to express our heartfelt appreciation for your support.

________________________		________________________
Hsieh, Heng-Hsien (Henry) President		Ng, Kong Meng (James) Chairman