Yes, you are right. The multiplication in the endomorphism ring is composition.
Well, $\delta_{ij}$ is the Kronecker delta, it is $0$ if $i \neq j$ and $1$ if $i \neq j$. In your situation it means that $\varphi \delta_{ij}$ is $\varphi$ if $i = j$ and the zero endomorphism if $i \neq j$.