EASTW: Sustainable Development Report 2013

CONTENT

Profile & Strategy

8 8 8

Message from the Chairman About East Water Vision, Mission & Strategy Corporate Values Awards Received in 2013

6 7 7

zation Structure Organization È·ÄÀ³Àµ· Á¾»µË ã wÁÄÂÁijƷ {ÁÈ·ÄÀ³Àµ· Á¾»µË À·ÅÅ ÆÄǵÆÇÄ·

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Effects of business management with sustainability importance Risks Stakeholders connections Supply Chains System Memberships of the sustainable development network Materiality About this report

10 10 11 13 13 14 14

17 20 24 25 27 28 30

2

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2 3 4 5 5

2

Water Security

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GRI-G4 Content Index

68

Information and Output on East Water Sufficient Operation Management

5

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Water Efficiency

4

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3

60 60 61 61 62 62 65 66 67

47 51 56 57

Water Quality

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32 35 37 38 40 42 44

Message from the

CEO

East Water is the business that runs with “water,â€? which is an important natural resource, yet has some “uncertaintiesâ€? in disguise. This brings about a pivotal challenge for East Water in “water distribution securityâ€? to make water consumers be assured and secured of their businesses and their lives. As a result, “Water Security,â€? the notion that is highly regarded by the company was originated. To build “Water Securityâ€? of our own, the procedure is operated under three major principles as follows: 1. Having secured reservoirs interconnected with water grid system 2. Preparing supporting reservoirs for water from natural resources and private sectors 3. Keeping the quality standards of raw water used in the operation However, the economy of the eastern region of Thailand in 2013 had evidently affected the “water distribution securityâ€? due to UIF Ĺ´VDUVBUJPO PG UIF JOEVTUSZ TFDUPS FTQFDJBMMZ JO UIF JOEVTUSJBM estate area, in which the quantity of water used was changed accordingly with the economic growth. In addition, the industrial estate in Mabtaphut, which is the main service area of East Water, is in declining growth stage. In other words, the growth was beginning to decline due to several reasons, such as a terrain limitation, environment impact, as well as the political turmoil, which affected the tourism sector in Chonburi Province. In order to compensate the deterioration of industry and tourism sectors, these effects urged the company to take more interest in consumption area.

4. Campaign to reduce the amount of water usage to ease the production cost instead of raising the price The company realizes that the continual carelessness in water usage, especially in industry sector, will caused the company to endlessly explore, invest, and EFWFMPQ OFX XBUFS SFTPVSDFT XIJDI XJMM CF SFĹ´FDUFE JO UIF increased cost of production, and, eventually, resulted in the consumers having to bear the burden of the elevated price.

On the other hand, the campaign should be the most effective approach. The company, as the seller, will be able to operate by VTJOH UIF DVSSFOU TPVSDFT PG XBUFS XIJDI TVGĹłDJFOUMZ NFFU UIF DPOTVNFSTÄ´ EFNBOE BOE DPOUJOVF UP JNQSPWF UIF FGĹłDJFODZ PG the internal operation for more cost-effectiveness. As well, the consumers, as the buyers, will not have to shoulder the rising price stemmed from the investment in developing new water resources.

The consideration regarding this issue indicates that the TVTUBJOBCJMJUZ PG UIF PSHBOJ[BUJPO UIF DVTUPNFST BOE UIF QSPĹłUT from the entrepreneurship can all be advanced together.

The aforementioned matter will lead to the positioning of the sustainability strategies in 2014, which East Water deeply regards.

These strategies will focus on pushing forward the campaign for the customers and water consumers to cut back and reduce water usage. The company will apply two more strategic measures including: - emphasizing water consumers on having their own water reservoir - focusing on caring for and checking up on each other among the consumers and the organization through communication channels established by the company, in which problems of both parties - the needs of water consumers and the water distribution process of the company - will be acknowledged

These campaigning and cooperative action building are considered Moreover, in the past year, East Water had considered issues with as the major step advancing toward the creation of the control SFHBSE UP UIF DPNQBOZ XIJDI NJHIU IBWF TJHOJĹłDBOU FGGFDUT PO center that will enable the access of the equally shared water the sustainability of the organization as follows: resource usage in the near future.

1. Operating business with environmental impact awareness In the past, the company has put a great effort to control the operation aiming for the least environmental impact. $POĹ´JDU XJUI UIF DPNNVOJUJFT BSPVOE SFTFSWPJST BOE UIF constructing pipe network area The company has exceedingly BUUFNQUFE GPS UIF SFTJEFOUT PG UIF BGGFDUFE BSFBT UP CFOFĹłU GSPN water distribution no less than those who reside at the end of pipelines.

3. Pricing issue 5IFSF JT UIF DMBTTJĹłDBUJPO GPS UIF VTBHF UIF NPSF usage, the higher price and vice versa, this issue is intended for every sector to gain access of the water distributed from the company equally. Additionally, in 2014, the company will continue to be more responsive to the issue.

&BTU 8BUFS TFUT JUT HPBM JO CFDPNJOH UIF DPPSEJOBUPS GPS UIF Ĺ´PX of resources among the water consumers, which is considered as the sustainability reinforcement for the whole system.

As for the year of 2014, the company has anticipated an upcoming vital challenge - the climate change. It will affect water level in SFTFSWPJST BOE NBZ CSJOH BCPVU UIF SJTLT UIBU XJMM TJHOJĹłDBOUMZ tremble the security of the organization. Nevertheless, the precautions has already been prepared in terms of exploring additional water resources from both natural source and private sector in order to ensure the customers that no matter what happens, the company will always be able to respond to the water consumption demand.

Since 1992, the government has voted for the Provincial Waterworks Authority (PWA) to establish Eastern Water Resources Development and Management Public Company Limited, or East Water in short.

Then in 1997, East Water became one of the listed companies on the Stock Exchange of Thailand (SET) and was privatized through the listed stock entitled “EASTWâ€?. Its mission is to engage in the development and management of the raw water pipeline systems for public distribution. In addition, the company also provides the consulting services for clean water production, along with water distribution system in the industrial estates, factories, as well as maintenance services, related equipment trade, consulting services for pipeline and other equipment and machines maintenance, and creating QBSUOFSTIJQ XJUI PUIFS QSJWBUF ĹłSNT 5IF IFBE PGĹłDF JT MPDBUFE PO UI UI Ĺ´PPS PG &BTU 8BUFS #VJMEJOH 4PJ 7JCIBWBEJ 3BOHTJU 7JCIBWBEJ 3BOHTJU 3PBE $IPNQPM $IBUVDIBL #BOHLPL UFMFQIPOF BOE GBDTJNJMF 5IF PQFSBUJPO TJUFT BOE UIF BMM PGĹłDFT BSF all located in Thailand, and the operation center is located in Rayong Province. With the total length of 378 kilometers, the raw water pipelines are capable of distributing BO FTUJNBUFE NJMMJPO DVCJD NFUFST PG water, covering the area of three provinces, Rayong, Chonburi, and Chachoengsao.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

About East Water

3

Ĝ#FJOH MFBEFS JO TVTUBJOBCMF XBUFS management that grows in accordance with the country’s economy and expands to ASEAN region�

1. Managing the business for the suitable growth, and raise the product value 2. Developing the new business to support the continuous growth in medium term and long term )BWJOH IJHIMZ FGĹłDJFOU ĹłOBODJBM BOE JOWFTUNFOU management tools 4. Developing human resources, knowledge management, technology and innovation 5. Having good corporate governance with a sense of responsibility toward communities, society and environment

Vision Strategy Mission 1. To expand the investment and develop the water business as well as other relevant businesses for continuous and sustainable growth 2. To increase the competitiveness with the right and up-to-date technology and innovation 3. To develop the competency of the staff and improve its structure to be more appropriate 5P NBOBHF UIF CVTJOFTT XJUI FGĹłDJFODZ BOE transparency according to the good governance principles 5. To be responsible for communities, societies and environment and maintain good relationships with the stakeholders 4

East Water has applied “corporate values” since 2009, which came around the principal values known as IACT. It corresponds to the company’s mission and vision and has been held as codes of conduct for every stuff ever since. IACT is deliberated on together with corporate mission and vision to create more systematic operation.

IACT stands for: I ntegrity A chievement Orientation C ustomer Service Orientation T eamwork and Leadership

Awards in 2013 Ļ CSRI Recognition Award from Corporate Social Responsibility Institute (CSRI), under The Stock Exchange of Thailand (SET) to honor and encourage listed companies for continuously operating their businesses with sustainable social responsibility Ļ CSR-DIW in Supply Chain Award from Department of Industrial Works to promote common social responsibility toward community

Ļ " 4UBCMF SBUJOH JO ųOBODJBM SFMJBCJMJUZ assigned by TRIS Rating Ļ The excellent-leveled score of 95.5 (surpassed 93.5 marks from last year) from the assessment during 2013’s Annual General Meeting of Thai Investors Association

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Values

5

Organization Structure As a listed company on the Stock Exchange of Thailand, East Water has an obligation to follow the Public Limited Companies Act by forming organization structure in accordance XJUI 1SJODJQMFT PG (PPE $PSQPSBUF (PWFSOBODF TQFDJĹłFE CZ the Securities and Exchange Commission (SEC). It aims to support transparency for shareholders and customers in public and private sectors, as well as the people within TFSWJDF BSFB XJUI VUNPTU FGĹłDJFODZ

"T JMMVTUSBUFE JO UIF GPMMPXJOH ųHVSF BVUIPSJ[BUJPOT EVUJFT BOE SFTQPOTJCJMJUJFT PG UIF #PBSE PG %JSFDUPST BOE UIF other committees have been stated as the charter in the committee’s manual. A committee comprises of no less than three independent or external committee persons to balance the power between the committees with any QPUFOUJBM DPOŴJDU PG JOUFSFTU XJUI UIF DPNQBOZ

Board of Directors Eastern Water Resources Development and Management Plc.

Audit Committee

Management and Investment Committee

Risk Management Committee

Corporate Governance and Nomination Committee

Regulation Enforcement Operation Result Assessment and Renumeration Committee

President & CEO

Audit Department

Executive Vice President, Operation

Project Planning Department

Executive Vice President, Finance and Accounting

Operation and Customer Services Department

Corporate Communications Department

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President & CEO office and Corperate Secretary

Finance and Information Technology Accounting Department Department

Business Development Department

Human Resources Department

Corporate Affairs Department

Major Shareholders Shareholder Number of Shares

1. Provincial Waterworks Authority 311,443,190 2. The Electricity Generating Public Company Limited

3. Norbax Inc.,13

4. Industrial Estate Authority of Thailand 40,779,100 #/1 1BSJCBT 4FDVSJUJFT 4FSWJDFT -POEPO #SBODI

5IBJ /WES $P -UE 23,252,925 7. Nortrust Nominees Ltd.

8. Aberdeen Long Term Equity Fund 17,000,000 9. Mr. Min Tieanworn

10. Aberdeen Growth Fund

11. Others

Total Number of Shares (Shares)

Percentage (%) 40.20 18.72 8.21 4.57 2.45 2.08 1.40 1.18 1.02 0.99 19.18 100.00

Data as of December 27, 2013

Business Structure

Raw water business Eastern Water Resources Development and Management PLC.

Water supply & wastewater treatment business

Water distribution business

Industrial water supply business

EGCOM Tara Co., Ltd. (15.88%) Samet Utility Co., Ltd. (55%)

Chachoengsao Water Supply Co., Ltd. (100%) Bangpakong Water Supply Co., Ltd. (100%) Nakhonsawan Water Supply Co., Ltd. (100%) Samet Utilities Co., Ltd. (55%)

Sattahip Waterworks Koh Lan Waterworks Koh Sichang Waterworks Borwin Waterwork Koh Samui Waterworks Rayong Waterworks

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Universal Utilities Co., Ltd. (100%)

7

Good Corporate Governance 5IF #PBSE PG %JSFDUPST HJWFT B DPOUJOVBM QSFDFEFODF UP operating business in accordance with good corporate governance, along with the responsibilities toward communities, TPDJFUZ BOE FOWJSPONFOU UP NBYJNJ[F CFOFĹłUT PG UIF shareholders. The stakeholders are also taken simultaneously into account

1. Rights of Shareholders The company recognizes the fundamental rights of the shareholders as the law and regulations indicated, as well as the equality and impartiality that shall be received.

2. Equitable Treatment of Shareholders The company ensures that all shareholders will be treated with fairness and equality regardless of the occurrence, such respecting the right to attend the shareholders’ meeting and to vote, granting the opportunity for the minor shareholders to nominate B NFNCFS PG UIF #PBSE BOE QSPQPTJOH UIF NFFUJOH BHFOEB JO advance.

In the past year, the company had adjusted the application of Good Corporate Governance by focusing on SET’s Principles of Good Corporate Governance for Listed Companies 2012 to be the guidance for business management, also by implementing the principles as much as possible, and creating activities to promote the Good Corporate Governance of the company BOE JUT BGĹłMJBUFT 5IF DPNQBOZ FYQFDUT UIF FNQMPZFFT PG BMM 3. Role of Stakeholders 3.1 Responsibilities toward Stakeholders levels to work with “Transparency, Honesty, Responsibility, The company incorporates business philosophies focusing on and Competitivenessâ€? responsibilities and equitable actions to assure the stakeholders as follows: Management Policy 5IF #PBSE PG %JSFDUPST IBT FOEPSTFE DPNQBOZÄ´T 7JTJPO .JTTJPO 1. Fiduciary duties toward stakeholders: and Good Corporate Governance policy since 1 August 2003. &NQIBTJ[F PO QSPĹłUBCMF BOE KVTUJĹłBCMF JOWFTUNFOU BOE UIF TUBCMF Corporate Governance and Nomination Committee was assigned ĹłOBODJBM TUBUVT GPS UIF FYJTUFODF BOE TVTUBJOBCMF HSPXUI UP SFQPSU UIFTF WJTJPOT NJTTJPOT BOE QPMJDJFT UP UIF #PBSE PG 2. Responsibilities toward customers: Directors to review and revise progressively in keeping up with Continue to manage and develop water resources and maintain the current situations. To have new employees to comprehend other quality services to maximize customer satisfaction UIFTF CVTJOFTT FUIJDT BU UIF ĹłSTU PSJFOUBUJPO UIFZ XJMM SFDFJWF 3. Responsibilities toward creditors: the documents regarding business ethics to put in practice Follow every terms and conditions and refrain from concealing BDDPSEJOHMZ BT XFMM BT UIF NFNCFST PG #PBSE PG %JSFDUPST XIJDI ĹłOBODJBM JOGPSNBUJPO PG UIF DPNQBOZ BOE UIF BGĹłMJBUFT BT XFMM BT will be required to sign these documents to ensure the refrain from spending loans for any purposes that go against the agreement acknowledgement of the matters.

4. Responsibilities toward employees: Respect the legitimate rights of every employee by creating safe Principles and Regulations in Management The Good Corporate Governance of the company comprises and decent work environment, provide good welfare, offer fair PG ĹłWF DBUFHPSJFT PG QSJODJQMFT BOE SFHVMBUJPOT JO NBOBHFNFOU work contracts according to the market, support an equal chance of advancement in career path, build good relationships among as follows: employees, and promote the sense of loyalty with the company 1. Rights of Shareholders 5. Responsibilities toward business partners: 2. Equitable Treatment of Shareholders Promote relationships between contractors, suppliers, and investors 3. Role of Stakeholders to help accomplish the maximum mutual interests through the 4. Disclosure and Transparency principles of Good Corporate Governance 3FTQPOTJCJMJUJFT PG #PBSE 3FTQPOTJCJMJUJFT UPXBSE TPDJFUZ BOE FOWJSPONFOU Operates with a sense of responsibility toward society by operating in agreement with the related regulations and law in order to prevent any effects that will cost lives and properties of people, society, and environment 7. Responsibilities toward competitors: Compete and trade with fairness and lawfulness and refrain from EJTIPOFTU PS JNQSPQFS NFBOT PG TFFLJOH DPOĹłEFOUJBM JOGPSNBUJPO of competitors 8

3.2 Policy of Non-involvement in Human Right Violation The company respects the equality and the rights of the employees by following the human right principles protected by the Constitution of the Kingdom of Thailand, Thai laws and other treaty obligations. The company will not take any actions that violate human dignity, right, and liberty, and will not be irrespective of their origins, races, languages, sexes, ages, physical or health conditions, personal statuses, economic or social statuses, religions, educations, political views, or personal matters unrelated to work. supervise the administration to provide an appropriate communicative system in order to spread important and effective ųOBODJBM JOGPSNBUJPO XIJDI NFFUT UIF BDDPVOUJOH TUBOEBSET BOE has already been audited by independent auditors, to companies with common interests. They also encourage the administration to reveal other information, and at the same time, to consider right ways to protect information that is unable to be revealed and has impacts on the company’s property investment decisions 5IF DPNQBOZ BMTP IBT QPMJDZ UP QSFWFOU UIF #PBSE PG %JSFDUPST and the changes of property prices. and other employees from exploiting their power and position.

They are to negate the offers such as money, gifts, recreations, The information will be revealed and publicized through systems USJQT PS PUIFS NFBTVSBCMF CFOFĹłUT UIBU BSF GSFF PG DIBSHF PS UIF of the Stock Exchange of Thailand and via www.eastwater.com.

QSJDF JT FYDFQUJPOBMMZ MPX BWPJE HJWJOH QSFTFOUT PS TPVWFOJST UP The company provides connecting channels to facilitate customers the persons or the organizations that may affect any decisions UISPVHI UFM FYUFOTJPO BOE PS regarding their duties. In case of bestowing unusually expensive e-mail: IR@eastwater.com, and http://eastw-th.listedcompany. presents or souvenirs upon business associates are unavoidable, com/home.html permission from the supervisor is required. Moreover, beside the fact that all employees’ opinions and suggestions concerning the In addition, the company provides a compliance unit to look subject are welcomed, the company has initiated trainings after the practices of rules and regulations that are associated regarding Good Governance. with the Stock Exchange of Thailand and the Securities and Exchange Commission. The compliance unit also takes care of 3.4 Filing Complaints information disclosure through certain channels, such as websites There are channels for the company to handle complaints, such of the company and the Stock Exchange of Thailand, and as illegal or unethical practices, inaccurate accounting entries, or annual reports. This information has to be correct, adequate, EFųDJFODZ JO JOUFSOBM BVEJU TZTUFN 5IF DPNQBOZ BMTP IBT QSPUFDUJPO complete and timely as determined by the law, in order to make QMBO GPS XIJTUMFCMPXFST UP FMFWBUF FGųDJFODZ JO NPOJUPSJOH TZTUFN JOWFTUPST DPOųEFOU JO UIF DPNQBOZĴT CVTJOFTT NBOBHFNFOU $PNQMBJOUT DBO CF ųMFE UP UIF "VEJU $PNNJUUFF CZ capabilities.

E-mail : Audit Committee AC_EW@eastwater.com $IJFG &YFDVUJWF 0GųDFS $&0!FBTUXBUFS DPN 5. Boards of Directors’ Responsibilities Mail : Audit committee 5IF DPNQBOZĴT #PBSET PG %JSFDUPST TUSPOHMZ CFMJFWF UIBU B EFDFOU Eastern Water Resources Development and Management business management is one of the key factors that will bring PLC. the company to achieve its most important goal which is to &BTU 8BUFS #VJMEJOH 'M 4PJ 7JCIBWBEJ 3BOHTJU NBYJNJ[F UIF TIBSFIPMEFSTĴ WBMVFT 5IF #PBSE PG %JSFDUPST JT 7JCIBWBEJ 3BOHTJU 3PBE $IPNQPM $IBUVDIBL #BOHLPL legally responsible for and must comply with the business 10900 management principles. The company also has to be responsible GPS UIF TUBLFIPMEFSTĴ CFOFųUT BOE IBT UP NBLF UIF BENJOJTUSBUJWF 4. Disclosure of Information and Transparency PQFSBUJPO PGGFS UIF NPTU FGGFDUJWF BOE FGųDJFOU CFOFųUT GPS UIF 5IF DPNQBOZĴT #PBSET PG %JSFDUPST BOE BGųMJBUFE DPSQPSBUJPOT company’s conglomerates and stakeholders.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

3.3 Policy and Practice against Corruptions and Business Frauds The company has shown its commitment by joining the Private Sector Collective Action Coalition Against Corruption supported CZ UIF HPWFSONFOU BOE UIF 0GĹłDF PG 5IF /BUJPOBM "OUJ $PSSVQUJPO Commission (NACC).

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Effects of business management with

sustainability importance The raw water pipeline management in the eastern seaboard is a business regarding the investment of the water distribution and pumping system and big water distribution pipelines.

The company acquires raw water from larger raw water resources from the eastern region. The investment requires a large amount of money and approval from the Royal Irrigation Department who is responsible for the allocation of raw water. The Department gives importance to agriculture, consumptions, industries and the preservation of ecosystems, respectively.

5. The electricity price adjustment made by the Provincial Electricity Authority will increase the production cost.

"DDFQUBODF BOE DPNQBOJPOTIJQ GSPN DPNNVOJUJFT XJUIJO the company’s operating areas will make the company does its business effectively as planned as it is not banned from the communities.

Risks which are likely to affect East Water Group

1. Risks which are likely to affect East Water In 2013, the Corporate Risks were discussed and considered to be likely to affect the company, as followed: 1.1 Water inadequacy It is necessary for the company to constantly follow up the amount of water in water resources to assure that the resources will always be have adequate The important changes and challenges that affect the amount of water for future use. company’s sustainability, both positively and negatively, 1.2 Damage to the company’s pipeline system The include: company provides the preventive maintenance program to 1. Global Warming will affect the amount of water in constantly examine and repair pipelines. The company has reservoirs bought the property insurance to cover for losses and damage 2. Consumers’ self-development of water resources might that might occur to the pipelines. The insurance plan also make them less dependent on the company’s business provides responsibility and coverage for third parties and the 3. The building of a connecting pipeline from Pra Sae business interruption.

Reservoir to Khlong Yai Reservoir and the construction of 1.3 The increase in Ft rate The Fuel tariff on electricity is the third Nong Pla Lai-Map Tha Phut Pipeline will make the major cost for water distribution in the raw water and the the Royal Irrigation Department give the company more water supply business. Therefore, the Ft rate, that is increased opportunities to allocate water. Moreover, the Department every four months, is a main factor that makes the cost of will invest in developing a big raw water pipeline network water distribution increase. in the eastern region. The pipelines include Pra Sae to 1.4 The quality of raw water in the rainy season and Khlong Yai, Wang Tanod to Pra Sae and Phra Ong Chaiyanuchit pollutions around water resources The quality of raw water $BOBM UP #BOH 1SB 5IJT XJMM DPOTJEFSBCMZ IFMQ UP SFEVDF is based on seasonal changes and raw water is likely to be East Water Group’s duty in the future investments. turbid in the rainy season. These problems affect the quality 5IF NBKPS ŴPPET JO XIJDI XFSF TFWFSF BOE of raw water that will be distributed to customers, and thus, widespread throughout the central part of Thailand, caused increase high production cost to improve the quality of the many foreign companies with production base here to water. consider moving their production center to the eastern region, in which they are interested. This will make the 2. Risks which are likely to cause operations to cease demand of raw water for industries and consumptions in 2.1 The cessation of water distribution due to power the eastern region grow constantly. failure The company distributes water to customers day and night. The water reservoirs is essential in case of emergency, like when the company experiences power failure and when OFX QJQFMJOFT BSF CFJOH ųYFE BOE DPOOFDUFE UP POF BOPUIFS Hence, the company needs to reserve water in reserved pand in order to always be able to distribute raw water to customers.

2.2 Risks from drastic accidents and natural disasters When natural disasters or drastic accidents, like earthquake or terrorism occur, the company has prepared emergency plans to handle the events that are likely to happen. It has also provided property damage and business interruption insurance, and as well as insurance plan that offers coverage for damage by the third party.

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3. Financial risks Risks from higher interest rates The company carries MPOH UFSN EFCU ĹłOBODJOH BOE VTF UIF NPOFZ UP JOWFTU JO its vast construction projects. The company will consider and decide about its investments thoroughly and carefully. *U BMTP DPNFT VQ XJUI ĹłOBODJBM QMBOT UP TFFL GVOET UIBU offer stable interest rates.

4. Risks from community’s objection to the company’s business operations In each year, the company necessarily needs to use large

amount raw water in water resources in the eastern region.

This might affect the company’s overall image is using water in the community. Nevertheless, the company has divided its budget to spend on developing life quality and environment. The company will as well build good SFMBUJPOTIJQT XJUI DPNNVOJUJFT OFBSCZ UIF PQFSBUJOH TJUFT DSFBUF UIF SJHIU VOEFSTUBOEJOH GPS UIF QFPQMF BOE constantly support local development projects in order to SFEVDF DPOŴJDUT BOE CVJME QPTJUJWF BUUJUVEFT UPXBSET UIF company.

Stakeholders’ connections East Water Group has conducted annual surveys on customers’ opinions and satisfactions to the company since 2009. The company will use information from the surveys in order to evaluate its performance and plan about the operations that will adequately and appropriately meets satisfactions and expectations of the stakeholders. The company has concluded demands and expectations of every group of main stakeholders in the previous year, as shown in the table below.

Demands

Expectations

1. Shareholders

Rewarding compensations in the form of share prices and dividends

#VTJOFTT TVTUBJOBCJMJUZ XJUI DPOTUBOUMZ HSPXJOH QSPĹłUT

2. Customers

Adequate amount of raw water with constant water pressure

Decent water quality which is able UP CF QSPEVDFE FGĹłDJFOUMZ BOE economically

3. Employees

Demands and expectations are divided into three parts to suit three levels of employees, as followed: ĝ &YFDVUJWF -FWFM XPSLJOH FOWJSPONFOU BOE BUNPTQIFSF SFXBSET BOE XFMGBSF and operation and management which follow the organization’s visions ĝ $PNNBOEFS -FWFM DP XPSLFST SFXBSET BOE XFMGBSF BOE KPC SFTQPOTJCJMJUZ ĝ 0QFSBUJOH -FWFM DP XPSLFST MFBEFSTIJQ PG DPNNBOEFST KPC SFTQPOTJCJMJUZ rewards and welfare, and learning support

4. Communities and society

Adequate amount of water for consumptions To be participated in water resources management and not and agriculture in every season feeling deprived of their rights

5. Distributors and partnerships

Hiring conditions and fast and transparent #FJOH BCMF UP UIPSPVHIMZ BDDFTT UP the transparent and updated hiring paycheck information in order to have an opportunity to present their work

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Stakeholders

11

The company has used the above information to design its operating system, to set strategies and to make operation

plans that will satisfy each group of stakeholders and create the evaluation index of the company and employee.

Ways of building partnerships between each group of the company’s stakeholders are presented in the table below: Sender

Receiver

Methods of Communications

Frequency

Ways of Communications One-way

High-Level Executives High-Level Executives High-Level Executives Executives

(Operation Customer Service Dept.)

(Operation Customer Service Dept.)

Executives

(Operation Customer Service Dept.)

High-Level Executives High-Level Executives High-Level Executives High-Level Executives IR Managers IR Managers

Every month Twice/Year 4 times/Year Everyday

5. Responses to inquiries and suggestions of solutions &NBJM 4.4 "MFSU

As Required As Agreed

x

1. Company Website 2. Supplier & Key Partner Meeting 3. War Room Meeting 4. Progress of Project Review Meeting

Quarterly 1 time/Year Every month 1 time/Month

x

Distributors/ Alliances

x

Stakeholders

x

x x x

5. Seminar EW meet Customers

1 time/Year

x

1. Pre AGM Meeting 2. AGM Meeting 3. SET in the City 4. R Meeting with investors 5. Company Website (Investors’ Relations) $PNQBOZ 7JTJU

1 time/Year 1 time/Year 1 time/Year Quarterly Everyday 1 time/Year

x x x x

Footnote: Ways of building partnerships between other groups of stakeholders are detailed in topics concerning those groups of stakeholders which are: 1. Employees: Water Quality’s Issue 4 – support of employees’ rights and participation to create values of being East Water Group’s employees

12

x x x

Customers

Executives

High-Level Executives High-Level Executives High-Level Executives High-Level Executives and Project Managers High-Level Executives

1. War Room Meeting 2. Customer and Sponsor Meeting 3. Customers’ visits and opinions 4. Customer (WAREE) & Company Website

Two-way

x x

2. Communities and society: Water Quality’s Issue 4 – acceptance and participate of people in the operating areas and in the society to support strength and stability of the operating procedures

Administrative, Finance Infrastructure

Legal, Accounting, Financial Management, IT, R&D.

Human resources Management

Personal, Recruitment, Training, Staff planning, etc.

Product and Technology Development

Design Construction and Supervision, Ceda and Control System

Procurement

Supplier management, Subcontraction, SpeciďŹ cation

Raw Water Supply and Distribution System

Repair and Maintenance System

namely, Nong Kho Reservoir, Dok Krai Reservoir, Nong Pla Lai Reservoir, Nakorn Nuangkhet canal and Pra Sae Reservoir.

In addition, there are water supply pumps from Rayong 3JWFS BOE #BOH 1BLPOH 3JWFS UISPVHI GPVS QJQFMJOFT XIJDI are rented from the Ministry of Finance and are constructed and owned by the company.

Memberships of the sustainable

development network 1. Working group of the Government and private sectors, established by the Federation of Thai Industries, that are jointly responsible for the management of water resources in the eastern region 2. Water war room working groups in the eastern region which consist of industrial sectors, the Industrial Estate Authority of Thailand, the Federation of Thai Industries, The Water Institute for Sustainability and the Royal Irrigation Department 3. The committee and the academic sector of the Thai Waterwork Association (TWWA)

4. The committee of Thai Hydrologist Association 5. CSR Club Committee of the Thai Listed Companies Association .FNCFST XJMM TJHO BHSFFNFOU JO UIF JOUFOUJPO BOOPVODFNFOU to be part of Thai private sectors to stand against corruption.

The project is jointly developed by seven leading organizations, namely, the Thai Institute of Directors, the Thai Chamber of Commerce, the Thailand International Chamber of Commerce, the Thai Listed Companies Association, the Thai #BOLFSTÄ´ "TTPDJBUJPO UIF 'FEFSBUJPO PG 5IBJ $BQJUBM .BSLFU Organizations, and the Federation of Thai Industries.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

The above diagram shows the company’s supply chains in EPJOH CVTJOFTT XIJDI IBWF BO JNQPSUBOU PGųDJBM EJTUSJCVUPS and partnership, the Royal Irrigation Department, to take care of reservoirs and to allow the company to legally use raw water or limit the use of the water. The Department EJTUSJCVUFE ųWF SBX XBUFS SFTFSWPJST UP UIF DPNQBOZ

ProďŹ t Margin

Corp o Resp rate So c onsi biliti ial es

Water Resources Management and Development

Primary Actvities

Sales and Marketing (Pre - Sale)

lder eho Stak action sf Sati

Support Activities

Supply Chains System

13

Materiality

more opportunities in advancement ĝ *OOPWBUJPOT BOE UIFJS QVCMJDBUJPOT The materiality or important issues that are featured in this ĝ &NQMPZFFĴT XFMGBSF XIJDI GPDVTFT PO CBMBODJOH QFSTPOBM sustainable report were discussed in meetings and selected life and working life and creating happiness by the company’s representatives from the executive level ĝ 1VODUVBMJUZ PG EFCU QBZNFOUT and employees from two important sectors: ĝ 5IF DPNQBOZĴT ųOBODJBM CVEHFUT UIBU BSF DPODMVEFE 1. The Support Sector BU UIF )FBE 0GųDF #BOHLPL PO punctually, accurate, complete and true to the accounting October 2013 standards 2. The Operating Sector at the Rayong’s Operation ĝ -PBOT GSPN ųOBODJBM JOTUJUVUJPOT UP VTF GPS UIF DPNQBOZĴT $FOUFS PO /PWFNCFS business ĝ 'VOET GSPN JOWFTUPST There are various important issues that were selected. First ĝ %JTDMPTVSF PG UIF DPNQBOZĴT ųOBODJBM JOGPSNBUJPO of all, The selection committee used the Stakeholder ĝ ,OPXMFEHF QSPųDJFODZ BOE FYQFSJFODFT PG FNQMPZFFT Inclusiveness procedures as the core of this report’s structure working in operating areas to connect the selected issues with the issues in which the stakeholders are interested. After connecting the issues, the 2. The important issues that have impacts on the committee would select and prioritize them by using the stakeholders outside the organization Materiality process. The next step involved an operating meeting ĝ 'BDUPST PG XBUFS QSPEVDUJPO BOE EJTUSJCVUJPO UP DVTUPNFST with the assistants in order to select issues that are important that must be taken into consideration are the amount of to sustainable development. Lastly, all information was put water, water pressure and the quality of water into corresponding topics, which had been set, and was written ĝ "DDFQUBODF BOE QBSUJDJQBUJPOT PG DPNNVOJUJFT JO PQFSBUJOH as a report that sticks to the rules of the Global Reporting areas Initiative (GRI) G4. Appropriate issues presented in this sustainability ĝ $PMMBCPSBUJPOT GSPN HPWFSONFOU TFDUPST DFOUSBM QSPWJODJBM report are divided in to two aspects, as followed: and local authorities) ĝ 8BUFS QVNQJOH BOE EJTUSJCVUJPO TZTUFNT BT XFMM BT UIF 1. The important issues that have impacts on the TZTUFN UIBU TVQQPSUT UIF DPNQBOZĴT FGųDJFOU PQFSBUJPOT stakeholders within the organization in order to achieve customers’ demands, to reduce energy ĝ &NQMPZFFĴT IFBMUI PDDVQBUJPOBM IFBMUI BOE TBGFUZ consumption and to costs least damages ĝ *OEJTDSJNJOBUJPO JO FNQMPZNFOU ĝ $VTUPNFS TFSWJDFT ĝ &NQMPZFFĴT SJHIUT BOE QBSUJDJQBUJPOT ĝ 3FTQPOTJCJMJUZ GPS UIF TVQQMZ DIBJO TZTUFN ĝ &NQMPZFFĴT EFWFMPQNFOU BOE TVQQPSU UP QSPWJEF UIFN XJUI ĝ %FDFOU BOE SFTQPOTJCMF QBSUOFSTIJQT

About this report This sustainable development report was written to show the company’s performance and results that have impacts on economy, society and environment. East Water has written and published the sustainable development reports since 2011 and this is the third report which shows the company’s performance during January 1st to December 31st of 2013.

The company has used the Core of the Global Reporting Initiative (GRI) – G4 to write this report which covers the entire performance of the company in every operating area.

Furthermore, East Water has determined important content by revising topics and issues received from its stakeholders.

The company has accumulated opinions from meetings, interviews of the stakeholders outside the company to revise and put them into orders by external experts to make this report the most perfect and transparent.

14

This report is available to be downloaded from the East Water website.

Please contact the Public Relations Department through the information below, if there are any inquiries to the content of this report.

Eastern Water Resources Development and Management Public Company Limited Äť &BTU 8BUFS #VJMEJOH UI 'M /P 7JCIBWBEJ 3BOHTJU 3PBE $IPNQPM $IBUVDIBL #BOHLPL Äť 5FM FYU Äť 'BY Äť & NBJM QS!FBTUXBUFS DPN

15

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

WATER 2SECURITY “Water” is one of the most important natural resources. It JT UIF NPTU TJHOJųDBOU LFZ DPNQPOFOU UP UIF FDPTZTUFN which is vital to lives in every steps of their biological clock.

In fact, only three percent of entire water on earth can be used for consumption purposes contrasting the demand is continue to rise, not to mention the amount of water wasted in careless actions. Consequently, water, an FYIBVTUJCMF OBUVSBM SFTPVSDF NBZ OPU CF TVGųDJFOU UP TFSWF the needs in the future. This brings about the systematic water management to respond the demand in sustainable manners.

Due to the necessity of water management as mentioned above, Eastern Water Resources Development and Management Public Company Limited, or East Water, was GPVOEFE UP QSPWJEF QSPųDJFODZ BOE NBYJNJ[F FGųDJFODZ PG the operation, as well as respond to the demand in water usage of all sectors. The company has a mission in managing water grid in the Eastern Seaboard of Thailand, covering three provinces, Rayong, Chonburi, and Chachoengsao. The details are presented in the diagram below.

Royal Irrigation Department Mission: To develop and allocate water resources for agricultural sector through irrigation systems

Eastern Water Resources Development and Management PLC.

For factories and industrial estates

Mission: To develop and manage raw water distribution pipeline system

For consumption

Therefore, East Water is concentrating on how to secure and satisfy the customers and consumers. Thus, the essence “water” resources managed by the company in terms of of “water security” will facilitate the security and sustainable XBUFS TPVSDFT BOE XBUFS DPOUFOU UP CF TVGųDJFOU GPS BMMPDBUJPO growth considering the core issues as follows:

16

Water resources in East Water management to cover the area and meet the demand of every group of customers

Reservoir #BOH 1ISB 3FTFSWPJS 2. Nong Kho Reservoir 3. Mab Prachan Reservoir 4. Nong Klang Dong Reservoir 5. Huai Sak Nok Reservoir )VBJ ,IVO $IJU 3FTFSWPJS 7. Huai Sapan Reservoir #BOH 1IBJ 3FTFSWPJS 9. Khlong Rabom Dam Reservoir #BOH 1BLPOH %JWFSTJPO %BN 11. Khlong Si Yud Reservoir 12. Dok Krai Reservoir 13. Nong Plalai Reservoir 14. Khlong Yai Reservoir 1SBTBF 3FTFSWPJSŤ

Total

usable volume of 1,520.05 million cubic meters per year as listed in the following table.

Province

Capacity (mcm)

$IPOCVSJ Chonburi Chonburi Chonburi Chonburi $IPOCVSJ Chonburi $IPOCVSJ Chachoengsao $IBDIPFOHTBP Chachoengsao Rayong Rayong Rayong 3BZPOH

117.00 21.10

7.90 7.03 4.87 3.84 10.00

30.00 325.00 71.40

40.10 248.00 1,101.59

Average Usable Volume (mcm/year)

15.78 14.03

3.98 5.59 7.00 48.28 493.00

50.93

1,520.05

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Currently, the report shows that 15 main reservoirs located in the Eastern of Seaboard have been developed with the total capacity of 1,101.59 million cubic meters and the

17

Chachoengsao IBT UIF TNBMMFTU TFSWJDF BSFB BNPOH UIF UISFF QSPWJODFT 5IF XBUFS JT BMMPDBUFE GSPN #BOH 1BLPOH 3JWFS $IBDIPFOHTBP Reserved Pond is also used to support the operation in addition.

Chonburi IBT UXP NBJO TPVSDFT GPS UIF DPNQBOZ BT GPMMPXT #BOH 1ISB 3FTFSWPJS BOE /POH ,IP 3FTFSWPJS BT XFMM BT 4BNOBLCPL Reserve Pond.

Rayong is the main service area. Main sources of the company are as follows : Dok Krai Reservoir, Nong Plalai Reservoir, Khlong Yai Reservoir, and Prasae Reservoir.

Raw Water Pipe Line (EW) Existing Pipe Network Constructing Pipe Network

Raw Water Pipe Line (RID) Existing Pipe Network Constructing Pipe Network

Pump Station

Consumption

Head Tank

Industrial Estate

Factory Emergency Pond Reserved Water Source Main Water Source

Regulating Well Recieving Well

5P QSFWFOU UIF EFĹłDJFODZ UIF DPNQBOZ GPMMPXT UIF adequacy of water content of these main reservoirs with continuity and systematicness through various approaches.

For example, in three main reservoirs (Dok Krai, Nong Plalai BOE ,IMPOH :BJ UIF EFBE TUPSBHF JT TQFDJĹłFE BT NJMMJPO DVCJD NFUFST FMFWBUFE GSPN QSFWJPVT NJMMJPO TQFDJĹłDBUJPO 18

In addition, in order to prepare for the upcoming dry season during January and May, the company will allocate water from Prasae Reservoir and reserve it in Nong Plalai Reservoir to have the year-end overall volume of the three reservoirs of 275 million cubic meters or more.

Action Plans for Water Resource Security

Measures against Drought

To manage the risk of water scarcity, the company has performed some additional operations to systematically "T GPS UP FOTVSF DVTUPNFS DPOųEFODF UIF DPNQBOZ prevent water shortage in 2013 and 2014 by running has created three action plans to promote water resource simulations to study the scarcity. security as follows: Case study 1. Water allocation planning project and relationship building 1. Average water volume in the reservoirs per year activities for the related institutions and organizations 2. Water volume in the reservoirs according to 2004 and 2. Khlong Tubma Reserve Pond developing project 2005 (2.5%) 3. Construction pumping and pipeline system network 3. Twenty years lowest water volume in the reservoirs (5%) Prasae Reservoir – Nong Plalai Reservoir 4. Water volume in the reservoirs according to 1997 (10%) The cumulated results according to the plan designated for each project are successful.

‚ 255The 6 2012-2013 water situation simulation of Dok Krai Reservior, ‚ 2557 Nong Plalai Reservior and Khlong Yai Reservior in case of there is water storage in both years 2012 2013

275.25 mcm = Stored water: 275.25 mcm 31 Jan 13 = 244.21 mcm

Total Stored Water Volume (mcm)

Average water volume per year

Preparation to store water in 2013

‚ 2556 ÂťĂƒĂ Ă” Ò³šÓË à žÂ Ă• §žĂ? ÂĄÂş Ă‘ †ÇÒà ΟĂ?Ĺ’Â§ÂĄĂ’ĂƒÂšĂ“Ă‹ ¡¥ Ă˜ ÂĄÂ¨Ă”ÂĄĂƒĂƒĂ

‚ 2557 ÂťĂƒĂ Ă” Ò³šÓË à žÂ Ă• §žĂ? ÂĄÂş Ă‘ †ÇÒà ΟĂ?Ĺ’Â§ÂĄĂ’ĂƒÂšĂ“Ă‹ ¡¥ Ă˜ ÂĄÂ¨Ă”ÂĄĂƒĂƒĂ

Lowest volume: 31.7 mcm

Dec 2014

Nov 2014

Oct 2014

Aug 2014

Sept 2014

July 2014

May 2014

June 2014

Apr 2014

mar 2014

Feb 2014

Jan 2014

240 mcm = Year-end controlled water volume: 245 mcm

Dec 2013

Oct 2013

The company has prepared the measures against drought as follows: 1. Coordinate with the Royal Rain Operation Center in the eastern region through the operation centers located in Chanthaburi (since February 2013) and Rayong (since April 2013) 2. Allocate water from Prasae Reservoir – Khlong Yai Reservoir

Nov 2013

Aug 2013

Sept 2013

The beginning of Nov: 275 mcm

July 2013

May 2013

June 2013

Apr 2013

mar 2013

Feb 2013

Jan 2013

The beginning of Apr – Aug: 180 mcm

3F BMMPDBUF XBUFS GSPN #BOLBJ 8FJS Äą /POH 1MBMBJ 3FTFSWPJS *ODSFBTF TUPSFE XBUFS WPMVNF JO #BOH 1ISB 3FTFSWPJS BMMPDBUFE GSPN #BOH 1BLPOH 3JWFS EVSJOH "VHVTU BOE December 2013 5. Decrease water allocation from Rayong to Chonburi and use water in Chonburi area to its full capacity "MMPDBUF XBUFS GSPN 3BZPOH 3JWFS UP TVQQPSU .BQ 5B 1IVU area in case of critical situations

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

ÂťĂƒĂ Ă” Ò³šÓË Ă ÂĄÂş É ÂĄÂĄ Ă‘ ĂƒĂ‡Ă (ÅÒŒš Ă…Âş.Ă .)

268

19

Seasonal changes which affects weather conditions and may affect the business The company takes some effects from seasonal changes because the operation is regarding water resources. The demand for water consumption during dry seasons is extraordinarily high. However, most of the industry sector is not affected at all. Some customers have created their own water reserve pond to harvest rainwater and reduce the use of water provided by the company during rainy seasons.

As for the seasonal effects toward raw materials of the company, such as the amount of water stored in the reservoirs which varies by season - the more during the wet and the less during the dry, especially the drought in 2005, it cannot prevent the company from the continuous water distribution to the customers.

Maintaining water pressure and pipeline system for the FGĹłDJFODZ JO XBUFS EJTUSJCVUJPO BOE MFBL NJOJNJ[BUJPO To supply raw water, the company has signed contracts sales with three groups of customers as follows: 1. Industry Estates: including the estates in the authorization of Industrial Estate Authority of Thailand (IEAT), the estates that IEAT is a co-investor, and private industrial estates and parks

2. General Industry Parks 3. Consumers: mostly including providing wholesale services to an organization in the government sector, which is Provincial Waterworks Authority, except some cases, such as Queen Sirikit Hospital, Nikhom-sang-ton-eng Rayong, and Mabkha District Administrative Municipality

5IF ĹłHVSF BCPWF JMMVTUSBUFT XBUFS EJTUSJCVUJPO QSPDFTT

20

Regarding water grid management, the system comprises of four main raw water pipeline systems, including: 1.

2.

3.

4.

Nong Plalai – Mab Ta Phut Pipeline System Dok Krai – Mab Ta Phut Pipeline System Nong Plalai – Nong Kho Pipeline System Chachoengsao – Chonburi Pipeline System

Area 3BZPOH

1MVBL %BFOH Äą #P 8JO $IPOCVSJ

Chachoengsao

Pipeline System

Considering the capacity of each pipe in the system, the percentage of utilization has increased exponentially as shown in the table below, especially of Dok Krai – Mab Ta Phut, which reached its full 100% capacity in 2011. Due to the demand assessment in the future, the company has installed the third Nong Plalai – Mab Ta Phut pipelines to extend the utilization capacity to 105 million cubic meters per year and to serve the consumption demand within the next ten years.

Capacity

(cbm/day) %PL ,SBJ Ĺ .BC 5B 1IVU /POH 1MBMBJ Ĺ .BC 5B 1IVU Nong Plalai – Mab Ta Phut (3rd line) 288,000 .BC 5B 1IVU 4BUUBIJQ /POH 1MBMBJ Ĺ /POH ,IP 3FH 8FMM #P 8JO #ZQBTT /POH ,IP -BFN $IBCBOH /POH ,IP -BFN $IBCBOH #BOH 1ISB -BFN $IBCBOH Chachoengsao - Nakhon 205,479 /VFBOH ,IFU #BOH 1BLPOH

Utilization, %

2008 2009 2010 2011 2012 2013

4%

29% 15% 28% 28% 33% 23%

The quality standards of services consist of pressure and quantity of water according to the contract and the Customized Service Level (CSL), which are evaluated separately in accordance with each customer group. The evaluated results show that the service area of Pluak Daeng Äą #P 8JO IBT UIF IJHIFTU XBUFS QSFTTVSF BNPOH BMM TFSWJDFE area because of its location that is neighboring the pumping station of Nong Kho Reservoir, which causes some of the customers to be provided water with considerably high pressure. However, it has no damaging effects for their production lines. The average pressure of every customer

in the area is in an estimated 3.0 bars. Nevertheless, if there are any changes in water pressure of each pipeline, the Operation and Customer Service Department will always OPUJGZ UIF DVTUPNFST 5IF OPUJųDBUJPOT BMTP UBLF FGGFDU PO another step toward the production management system of the customers. In order to meet customer’s satisfaction, water pressure should be no less than 1.0 bars compared to Societe du Canal de Provence Company, which exceeds UIF PGųDJBM SFHVMBUJPO UIBU UIF QSFTTVSF TIPVME CF OP MFTT than 2.0 bar.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

The percentage of Pipeline System Utilization

21

$FOUFS 0GĹłDF JO 3BZPOH *U GFBUVSFT SFBM UJNF DPOUSPMMJOH system that helps reduce the labor used and the resolve the delay in water distribution.

The pipeline systems are controlled with Supervisory Control and Data Acquisition (SCADA) system, which is up-to-date and able to control the distribution of all 15 stations in three provinces at once from the Operation

Non-Revenue Water Reduction The company is willing to reduce the Non - Revenue Water /38 BT EFNPOTUSBUFE JO UIF GPMMPXJOH ųHVSF *U TIPXT that the company has developed leak management as the decreasing rate of the company’s NRW compared to the competitors has improved since 2012.

borrowed to inspect and assess the pipeline system as well as other tools and controlling equipment. The results indicate that the distribution and pipeline system of the company has to be equipped with some additional technologies, especially the gauging technique to calculate the price, which is already planned to be changed into the However, the evaluation also depends on the size of the automatic billing system in a few years in order to create water grid and the number of distribution point. To control DVTUPNFS DPOĹłEFODF BOE SFEVDF UIF UJNF VTFE GPS UIF /38 XJUI UIF JODSFBTFE FGĹłDJFODZ BOE TZTUFNBUJDOFTT BO monthly calibration procedure. expert from Societe du Canal de Prouence (SCP) France is

Water Distribution System Maintenance The percentage of pipelines and other equipment being maintained and repaired according to the annual maintenance plan is presented in the below chart. The operation supports the NRW reduction and provides 100% availability of the system.

The Availability of Pipeline Controlling System percentage

BETTER

100 98 96 94 92 90 88

2552

2553 East Water

22

2554 SCP

2555 Target

2556E

The Customer Service Improvement (CSI) team conducts the availability percentage statistics of pipeline system to be the information for daily, monthly, and yearly system and equipment watch. The team also concludes and presents the accumulated results to the management in form of a report to improve overall operation. In 2007, the company has a discontinuity in providing water distribution service UISPVHI UIF NBJO QJQFMJOFT XIJDI JT NFBTVSFE BT throughout 20 years of service (except during the scheduled maintenance) and has never been stopped ever since.

The company relentlessly maintains the reliability in the water allocation and distribution system by stipulating the goals aimed to prevent any damages to the machines and other equipment that may stop the operation or cause malfunctions of water distribution system in the main pipelines. However, the break in the distribution for the period of a scheduled maintenance is limited within eight hours, and the Class A machine must be kept running at all time.

In 2013, the Company ceaselessly develops its capability The operating results according to the plan of each project in water distribution to the customers with adequacy and are considered successful. continuity, which is the development to ensure the highest customer satisfaction in terms of services and distribution quality, as well as to reduce the NRW. In order to achieve the matters, six main action plans have been created as follows: 1. The ongoing project to enhance distribution capability in Laem Chabang 5IF POHPJOH QSPKFDU UP JNQSPWF #BOH 1PLPOH Äą #BOH Phra - Chonburi pipelines (Regulating Well) 3. Construction control 1JQF JOTUBMMBUJPO JO #BOH 1BLPOH 5. Water distribution management 4QBSF QBSU NBJOUFOBODF

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Action Plans to Maximize the Capacity of Water Grid

23

Cooperation between the related government and public sectors to promote strength and security in operation process Currently, in the Eastern Seaboard area, there are no major competitors in operating the business regarding pipeline system development and water distribution for industrial customers and individual consumers. Moreover, chances for the direct competitors to emerge are also very minimal because the DPNQBOZÄ´T ĹłSTU QSJPSJUZ JT PCUBJOJOH UIF QFSNJTTJPO UP PQFSBUF on major reservoirs authorized by the Royal Irrigation Department, and then concentrating on other replaceable water resources, such as underground water, which has some limitations in UFSNT PG RVBOUJUZ BOE RVBMJUZ #FTJEFT UIF PCTUBDMFT QSFWFOUJOH those new entrepreneurs from entering the business is the considerable amount of investment in water distribution through pipelines concerning the pipeline installation, pumping stations, water reservations, and the pipeline connecting operations that have to cut through the public spaces. Hence, the cooperation from government sector and state enterprises JT QSFSFRVJTJUF PUIFSXJTF UIF FOUSFQSFOFVS XJMM IBWF UP MFBTF PS QVSDIBTF MBOE UP JOTUBMM UIF TZTUFN XIJDI XJMM TJHOJĹłDBOUMZ elevate the cost.

3FTFSWPJS #BOH 1ISB 3FTFSWPJS BOE ,IMPOH /BLIPO /VFBOH Khet Äť $PODFTTJPO UP NBOBHF BOE PQFSBUF QJQFMJOF CVTJOFTT JO UIF FBTUFSO SFHJPO UIF DPNQBOZ SFDFJWFT UIF SJHIU UP NBOBHF BOE operate from the Ministry of Finance with a reasonable returns during the period of the contract. Äť $POUSBDUT DPODFTTJPOT JO TVQQMZ XBUFS CVTJOFTT PO December 2013, the company signed the 11 contracts with Provincial Waterworks Authority and Local Administration Organizations.

2 Water War Room In 2005, the drought affected the industry sector and the people in the eastern region, which brought about the incorporation of industrial entrepreneurs. The Water War Room was created to be the information and water management center of the eastern region and to solve the problem cooperatively. The members include the Royal Irrigation Department, East Water, the Industrial Estate Authority of Thailand, and the Water Institute for Sustainability under the On the other hand, East Water, which is founded upon the Federation of Thai Industries. The executives of each related Government’s vote, has an advantage when it comes to organization are to take the suggestions and advices cooperation from the government sector. The operations with consequential to the Water War Room in consideration for TJHOJųDBODF JO QSPNPUJOH DPPQFSBUJPO GSPN UIF SFMBUFE the collective solutions. The important matters in water management consist of the number of water demand in the government and public sectors are described below: future along with the details of water resources, weather 1 Operations in accordance with the contract and conditions, and the quality of water. This information is to be cooperation among partners of contract to maximize the used in the assessment of water situations, risks, and water management plans for the future and consistently presented CFOFųU PG UIF QBSUOFS during the meeting. The Water War Room is the model that #FDBVTF CPUI DPSF BOE SFMBUFE CVTJOFTTFT PG UIF DPNQBOZ shows a great promise in resolving the problems cooperatively. provide services that require long-term contracts or concessions from government sector, promoting cooperation with the government department, which is a party of contract, is a vital essence to the operation.

Currently, the company has the important contracts, concessions, and permits from the government sector as follows: Äť 1FSNJUT UP VTF XBUFS SFTPVSDFT JO BVUIPSJ[BUJPO PG UIF 3PZBM *SSJHBUJPO %FQBSUNFOU JODMVEJOH TJY SFTFSWPJST /POH ,IP Reservoir, Dok Krai Reservoir, Nong Plalai Reservoir, Prasae 24

1. Basic Infrastructure development is about developing the fundamental public utility concerning water for the community to have access to clean water and have better well-being in the long run through various activities projects, such as: ĝ Community pipeline system project is operated by recovering and repairing the pipeline system for the community to NBOBHF TVQQMZ XBUFS XJUI FGųDJFODZ BOE SFEVDF HPWFSONFOU dependency. In 2013, East Water successfully ran the project for 3,803 households in Rayong. ĝ $MFBO ESJOLJOH XBUFS GPS DPNNVOJUZ is the free of charge TFSWJDF GPS HPWFSONFOU PGųDFT BOE DPNNVOJUJFT JO UIF TFSWJDJOH area by providing mobile drinking water trucks installed with Reverse Osmosis (RO) technology to hand out bottled and plastic-glassed drinking water, along with free vending machines featured RO technology, as well as free raw water. ĝ 3PZBM BSUJųDJBM SBJO TVQQPSU JT UIF QSPKFDU UP QSPWJEF ųOBODJBM support to the Director His Majesty´s Private Affairs Division, #VSFBV PG UIF 3PZBM )PVTFIPME GPS UIF 3PZBM "SUJųDJBM 3BJO mission. ĝ 8BTUFXBUFS USFBUNFOU GPS TDIPPM DBGFUFSJB has progressed for more than 250 schools during 2011-2013 and each includes the continuous assessment follow-up. ĝ 3FIBCJMJUBUJPO PG XBUFS SFTPVSDFT BOE FOWJSPONFOUBM is

the project incorporated with government sector in both central and local administrations conducted by mainly monitoring the quality of water in the upstream side of the reservoirs. Äť 1MBOU UIF USFFT BOE DPOTFSWF UIF XBUFS QSPKFDU *O the project is incorporated with various government EFQBSUNFOUT IFMQ QMBOU TBQMJOHT JO UIF NBOHSPWF BOE MBOE GPSFTU JO $IPOCVSJ BOE 8BOH $IBO BOE #BO ,IBJ District of Rayong, along with release 1,500,000 aquatic animals.

2. Socio-Economy is the framework for social and economic development in accordance with the basic way of life, which proceeds through the distinctive projects and activities, such as the meeting of community network, increasing revenue by reducing expenses according to the QSJODJQMF PG TVGĹłDJFODZ FDPOPNZ TVQQPSUJOH UIF 3BLLFBX Foundation, and Friends meet Friends Project.

3. Life-Long Education is the foundation of long-term changes and development focused on providing all types of education - formal, informal, and non-formal - of the community through the projects, including East Water Young Leader Camp, Rayong Knowledge Park (RK Park), and 3R Water Management Innovation Contest (Reduce, Reuse, Recycle).

The 3R Water Management Innovation Contest, in corporation with the Ministry of Natural Resources and Environment, is the important highlight of the previous year. The innovation will be put into practice in the business and communities.

In 2013, hopefuls from 40 universities all across the country participated in the contest.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

The company has initiated policy on Corporate Social Responsibility (CSR) as a framework since before the foundation PG &BTU 8BUFS BOE EFEJDBUFE UIF ųOBODJBM BNPVOU XJUIJO PG UIF OFU QSPųU UPXBSE UIF DPVSTF TJODF 5IF NPEFM scheme and strategic plan in accordance with CSR are also created, reviewed, and revised over time to operate several kinds of CSR activities regarding the development of life and environment quality of communities inside and outside the service area. In doing so, the objectives and needs of the communities and the company’s visions are merged together.

To follow the highly regarded notion, “when water is secured, every life on earth is secured as well,� the company creates a three-dimensioned framework for the development of community, society, and environment as follows:

Corporate social responsibility operations to gain social and community acceptance and promote the stability in the operation process

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Communication channels between East Water, society, and community Sender Executive

Corporate Communications Department

26

Receiver

Medium

Community 1. The meeting of community, Provincial Administrative Organization, Municipal Administrative Organization, and other government sector Community 2. The business open house 3. The network meeting and vocational training project 4. East Water Young Leader Camp 5. Company’s website $PNQBOZ KPVSOBM

Frequency Communication Form One-way

Every quarter Every year

Two-way X X

As requested 30 times/year

X X

2 times/year Upon Activity JTTVFT ZFBS

X

X X

5IF FGųDJFOU BOE TUBCMF JOGPSNBUJPO UFDIOPMPHZ management which supports the stability reinforcement of the company’s administration To provide essential data and information to be ready to use, the company has determined its operations to meet the ISO 9001 and the ISO 14001 quality standards. Therefore, this results in clear operating procedures, such as keeping quality data and indicating power of approval, which make operation investigation effective by internal examiners and external assistants of the company. The company has prepared its basic structures of information technology by examining strategic plans, operating plans and needs of regular customers. There are three crucial goals, as followed:

substances which cause no damages to computer hardware 5. Environmental Monitoring System which monitors surrounding environment and operating conditions of computer hardware – this system will inform supervisors via SMS and put the information on the event logs $PNQVUFSJ[FE TZTUFN UIBU DPOUSPMT FRVJQNFOU JO UIF host computer operating room $MPTFE DJSDVJU 5FMFWJTJPO $$57 BOE UIF DPNQVUFS SPPN gateway control system by proximity card and computerized systems

In addition, East Water also extends maintenance agreements with contractors every year to ensure that the quality of its basic structures of information technology will make the data and information ready to be used at all times. The The company installed a computer program which stores Information Technology Storage System and the Supervisory and provides information technology on the computer Control and Data Acquisition (SCADA) usually provides networking hosts and the standardized computer networking information backups every quarter and every year in case equipment at the host computer operating room, located of emergency and safety of the database, which stores PO SE ŴPPS PG UIF DPNQBOZĴT IFBE PGųDF JO #BOHLPL 5IF backup information at other place. program also features the Server Facilities system that meets the Data Center’s standard, to ensure customers that the data and information are available at any time and always accessible.

Systems creating assurance in the stability of information technology &MFDUSJDJUZ 1PXFS #BDLVQ 4ZTUFN PG UIF 6OJOUFSSVQUFE 1PXFS 4VQQMZ VOJU PS 614 XJUI ,7" QSPWJEFT CBDLVQ power for 8-10 hours 2. Precision Air-Conditioning Unit with humidity control 3. Water Leak Detector System 4. Fire Alarm, Smoke Detector and Automatic Fire &YUJOHVJTIJOH 4ZTUFNT DPOTJTUJOH PG ĹłSF FYUJOHVJTIJOH

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

1. Information correction, accuracy and reliability 2. Up-to-date information 3. Safety and secrecy

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The systematic risks management which supports stability and reliability in East Water Law Compliance The company established the legal department and the CG section to be directly responsible for giving opinions about law compliance of the company’s business, as well as to promote law and ethics compliance to other institutions.

Each sector will evaluate itself every year by following the principles, regulations and laws appeared in the Law Compliance Check List.

Planning to handle risks of the company 1. Important corporations by the company’s executives: Executives in the high level should participate in the strategic planning to create a nice working atmosphere that will contribute to the company’s achievements and strategic objectives. Therefore, the executives are devoted to taking part in planning each strategies altogether. They also organize the risks evaluation of every operation to ensure that there are measures to control the risks which are likely to take place. Moreover, the executives monitor and evaluate the company’s performance in many ways, like an annual report using Key Performance Indicators (KPIs), risks management plans, advancement of projects, problems

and obstacles, issues on examination and evaluation of the PQFSBUJPOĴT FGųDJFODZ BOE FGGFDUJWFOFTT BOE DPIFSFODF with the ISO standards and related regulations. Internal Auditors (IA) will report in the Management Meeting (MM Meeting). If the company’s performance is not as successful BT QMBOOFE UIF FYFDVUJWFT IBWF UP ųOE DBVTFT BOE GBDUPST to the problems, and make improvements. Issues that are likely to cause high-level risks to the company will be discussed in the Risks Management Committee meeting in order to reduce, transfer, or cease the operations that cause the risks. Departments, responsible for the internal investigations, have to solve problems that they have agreed to do so with the investing committee.

2. Enterprise Risks Management (ERM): The company focuses on responding to emergency and continuity in operation through the Enterprise Risks Management, beginning in April to June every year. Executives and managers from every department will collaborate with the Enterprise Risks Management to indicate and evaluate the risks and put UIFN PO UIF 3JTL 1SPĹłMF 5IF SJTLT BSF EJWJEFE JOUP UXP levels: Äť $PSQPSBUF 3JTL Äť 0QFSBUJPO 3JTL Nevertheless, the company divides the risks into two levels to provide convenience in managing risks, and inventing measures to reduce and protect risks and annual risks management plan, which have to be approved by the Risks Management Committee. After that, the company will follow the risks control plan, write reports regarding the results, and revise risks management plan in every quarter with the committee. If the company faces the risks affecting environment, it will hold the evaluation of the emergency according to the ISO 14001 standards to indicate and revise protection measures and prepare to respond to the environmental emergency, as shown in the diagram below.

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Enterprise Risk Management : ERM

Vision Mission & Value

1SPKFDUT

Continous Process Asse s Risks s

Process

trol Con ities Activ

Day-to-Day operations and Decision making

tify Iden ent Ev

Bussiness Group 0CKFDUJWFT

Set 0CKFDUJWFT Moni tor Evalu& ing ation

Corporate Level Strategic 0CKFDUJWFT

- Risk Management Plan - Business Continuity Plan

Risk Response

BOD ERM, Executives & Vice Presidents

Evaluate & Review for Improve

Business Continuity Plan: BCP %VF UP UIF NBKPS Ĺ´PPET JO &BTU 8BUFS IBT DPOTJEFSFE BEEJOH NPSF QMBOT UP FODPVOUFS Ĺ´PPET BOE DSFBUJOH UIF #VTJOFTT $POUJOVJUZ 1MBOT UP HVBSBOUFF UIBU UIF DPNQBOZ will continue its operations despite the occurrence of DBUBTUSPQIFT BOE Ĺ´PPET 5IF DVSSFOU #VTJOFTT $POUJOVJUZ Plan consists of: Äť 3BX 8BUFS 4VQQMZ $POUJOVJUZ 1MBO B QMBO UIBU DPOUJOVFT operations and water distributions to customers

All employees

Äť *5 $POUJOVJUZ 1MBO BOE *5 3FDPWFSZ 1MBO Äť #BDLVQ 0QFSBUJOH 0GĹłDF 1MBO Äť $PNNVOJDBUJPO 1MBO JO $SJTJT Each plan connects to and supports one another. The company organizes practices of these plans at least once a year.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

All departments

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5IF FGĹłDJFOU 4VQQMZ $IBJOT 4ZTUFN XIJDI supports strength and stability in operations 5IF 4VQQMZ $IBJOT 4ZTUFN JT FYQMBJOFE JO UIF 1SPĹłMF 4USBUFHZ part. For this part of the report, the company will discuss its systematic management of the Supply Chains System, as followed: 1. The supplier supervision by the ISO standards: The company follows the ISO9001 standards for its quality management in order to supervise important suppliers and VTF BO FGĹłDJFOU QSPDVSFNFOU QSPDFEVSFT UP TVQFSWJTF USBEJOH partners registration. The Procurement Department will examine QSPWFT PG JEFOUJUZ EFDMBSBUJPO ĹłOBODJBM TUBUVT DPOĹ´JDUT PG JOUFSFTU BOE ĹłOBODJBM NBOBHFNFOU VTJOH UIF (PPE (PWFSOBODF and the ISO 14001 standards, environmental conversation, the past performances, and negative behaviors to society. This JOGPSNBUJPO XJMM CF BDDVNVMBUFE BT UIF 7FOEPS 1SPĹłMF -JTU BOE XJMM CF SFHJTUFSFE JO "QQSPWBM 7FOEPS -JTU "7- XIJDI JT approved by high-level executives.

in the right period of time. When analyzing a project, the DPNQBOZ XJMM DBMDVMBUF GPS UIF ĹłOBODJBM BOE FDPOPNJDT worthiness, risks, and environment, both the Environmental Impact Assessment (EIA) and the Health Impact Assessment )*" BOE QSFTFOU UP UIF #PBSE PG %JSFDUPST 8IFO UIF QSPKFDU is approved, employees will have to write a report on its operation, budget, and advancement to executives and the related committee. The report will indicate problems and obstacles in operating the project, as well as control costs of the project and effectively prevent failures in operations.

2) Operating Expense: There is an expense control by determining the limitations of budget which has to be BQQSPWFE CZ UIF DPNQBOZÄ´T #PBSE PG %JSFDUPST 5IF 0QFSBUJOH Expense Control is improved and revised in the second quarter of the year to make the expenses compatible with the income and make them follow the changing situations. In addition, 2. The thorough and concise procurement supervision: the company also controls the main expenses, like the cost Every time there is a purchase, buyers will write Terms of of electricity, and distributes water on the Off Peak and the References (TOR) to indicate the scopes of procurement and On Peak periods to reduce the cost. Moreover, it organizes other importantly special conditions to suppliers. When both an energy consumption project to promote the appropriate parties reach the sale contract agreement, buyers will be use of resources.

3) The accurate prediction of customers’ demands responsible for the quality control of the supplied work only for the service, and the Warehouse Department will be will not bring about waste of investment funds or losses of responsible for the spare parts examination. Meanwhile, big interests that are obtained from the supply of the investment QSPKFDUT XJUI NPSF UIBO ųWF NJMMJPO CBIU JOWFTUNFOU XJMM CF funds sources used in the project. taken care of by the Engineering Department until those projects are complete. The company will evaluate suppliers every time Additionally, the company also reduces of the procurement they deliver products and services in order to see whether the cost by accumulating the purchases of many sectors and TVQQMJFSTĴ PWFSBMM QFSGPSNBODFT BSF TUJMM PO UIF "7- MJTU PS OPU BGųMJBUFE DPSQPSBUJPOT JODMVEJOH IJSJOH ųOBODJBM BOE BDDPVOUJOH *G TVQQMJFST PCUBJO NPSF UIBO BTTFTTNFOU QPJOUT PVU PG audit assistants and internal auditors for the whole company UIFJS QFSGPSNBODFT BSF TUJMM PO UIF "7- MJTU )PXFWFS JG UIFZ group. This empowers the company’s price bargain to distributers. receive fewer points, they have to improve their performances BOE HFU UIFN CBDL UP UIF "7- TUBOEBSET 5IF DPNQBOZ SFWJTFT UIF MJTU PG UIF "7- TUBOEBSET JO FWFSZ RVBSUFS 3. The process of creating values in investments: The company creates values in investments by reducing failures and controlling costs, as concluded below: 1) Investment Cost: The company has to study investment appropriateness according to procedures determines by data and information of its corporations and other related factors.

This will bring about the accuracy in estimating sales in the future and the ability to invest in adequate amount of water

30

31

+:* :!#+8 Q:#Ä beef "+<19 9 :+E-8&9 !: +9&*: +!Q:M (: 8/9!55 Q: 9 ĹŽ)3: !ĹŻ

WATER QUALITY that is sustainable, for East Water, does not mean just focusing on the “water”. While the water produced and managed by our organization must be high-quality, up to our standard, and suitable for consumption, the quality of our human resources and internal management must also be on the same high quality level. Therefore, WATER QUALITY, considered sustainable by the Company, covers the various aspects as follows in this part of the report.

The quality of the raw water coming into our water management process must meet the standard and must be suitable for uses.

The water quality of surface water resources can be categorized into 5 groups according to their uses. Each quality group can be described in details as follows: Group 1 Natural water resources without any kind of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection needed 2. Natural breeding of common aquatic organisms 3. Ecosystem conservation of the water resources

3QUALITY

WATER

Group 2 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Aquatic animal conservation 3. Fishery 4. Swimming and water sports Group 3 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Agriculture Group 4 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Industry Group 5 Water resources with particular kinds of waste-water contamination. These water resources can be used for transportation.

Every month, the Company has delivered the samples of raw water collected from each water resource that has been distributed to the customers for the monthly quality analysis. Each sample was tested on 44 parameters. This report, however, is focusing on the 4 main parameters - pH, dissolved oxygen, turbidity, and chloride – which are the indicators for the salinity of the water.

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Parameter 1 pH (Potential of Hydrogen ion) The pH levels of East Waterâ&#x20AC;&#x2122;s resources were in the normal range, between 5-9, according to the quality standard of surface water resources of Group 2, 3 and 4.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present. $IBDIPFOH 4BP $$4 $IPO #VSJ $#3 IBT VTFE UIF EBUB PG 3FTFSWPJS /POH ,IP 3FTFSWPJS #BOH 1ISB 4BN /BL #PL 3FTFSWFE BOE #BOHQBHPOH 3JWFS QPOE

Parameter 2 DO (Dissolved Oxygen) which is the amount of oxygen dissolving in the water.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present. $IBDIPFOH 4BP $$4 $IPO #VSJ $#3 IBT VTFE UIF EBUB PG 3FTFSWPJS /POH ,IP 3FTFSWPJS #BOH 1ISB 4BN /BL #PL 3FTFSWFE BOE #BOHQBHPOH 3JWFS QPOE

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

%0 JT B TJHOJĹłDBOU QBSBNFUFS UIBU JOEJDBUFT IPX TVJUBCMF UIF XBUFS JT GPS UIF TVSWJWJOH PG BRVBUJD PSHBOJTNT In 2013, the average DO was 4.40 according to the quality standard of surface water resources of group 3

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Parameter 3 Turbidity The average turbidity of East Waterâ&#x20AC;&#x2122;s resources was less than 30 NTU, except for the Rayong Riverâ&#x20AC;&#x2122;s annual average which XBT /56 )PXFWFS UVSCJEJUZ XJMM EFQFOE VQPO TFBTPOBM

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present. $IBDIPFOH 4BP $$4 $IPO #VSJ $#3 IBT VTFE UIF EBUB PG 3FTFSWPJS /POH ,IP 3FTFSWPJS #BOH 1ISB 4BN /BL #PL 3FTFSWFE BOE #BOHQBHPOH 3JWFS QPOE

Parameter 4 Chloride The high chloride level would increase the salinity of the water. Most of our chloride levels were less than 50 mg/L, except for the Chacheonsaoâ&#x20AC;&#x2122;s annual average which was NH - BOE UIF #BOH 1BLPOHÄ´T BOOVBM BWFSBHF XIJDI was 8,408 mg/L. These two sites had higher chloride levels than the previous year because of the seawater intrusion that tends to keep rising. The future prevention and solution plans to abate this intrusion will be necessary.

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The US Environmental Protection Agency (EPA) has set the standard level of chloride in tap water at lower than 250 mg/L. The Company, therefore, would stop draining and distributing raw water for the tap-water producing customers when the chloride level increases over 250 mg/L, and over 50 mg/L for the customers in the industrial estates.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present. $IBDIPFOH 4BP $$4 $IPO #VSJ $#3 IBT VTFE UIF EBUB PG 3FTFSWPJS /POH ,IP 3FTFSWPJS #BOH 1ISB 4BN /BL #PL 3FTFSWFE BOE #BOHQBHPOH 3JWFS QPOE

We are determined to ensure that the quality standard of our employeesâ&#x20AC;&#x2122; health, occupational health, environment, and safety are high.

Work environment and safety management in the workplace The Corporate Affairs Department is responsible for the HPPE XPSL FOWJSPONFOU NBOBHFNFOU JO UIF PGĹłDFT BOE UIF FOWJSPONFOU PG UIF )FBE 0GĹłDF JO #BOHLPL XIJDI JT SFHVMBUFE CZ UIF #VJMEJOH $POUSPM "DU 5IF EFQBSUNFOU JT also responsible for the work environment at the operation centers, which are registered as factories and must abide by the Factory Act enforced by the Ministry of Industry, and facilitates the transportation between the work areas too.

As for the safety aspects, the Company has arranged for the assessments of health, safety, and hazard prevention, and we issued the plans and preventive measures to control our operations according to the incident prevention plan.

We monitor all incidents and systematically assess the results, then issue monthly reports to the Safety, Health and Environment Committee. This committee monitors the processes using the important indicators as seen in the table below.

Health, Safety, and Hazard Prevention Indicators 1. Numbers of annual medical examination for employees (1 time/year/each employee) 2. Numbers of the workplace air quality examination (2 times/year/each area) 3. Amount of work hours without accident and Numbers of accidents 4. Examination results on Workplace lighting and Noise level (less than 90 decibels) 5. Numbers of unusual entries to the working areas by all the staff and visitors

In 2013, the Company arranged the action plans for safety, occupational health, and work environment. The activities and actions taken were as follows: 1. The management of safety, occupational health, and work environment The details of the activities already proceeded were as follows: Äť %JSFDUFE UIF QPMJDF QBUSPMT JO UIF XPSL BSFBT UP monitor the assets along the pipeline Äť 1VU VQ UIF TJHOT UP NBSL UIF BSFBT BMPOH UIF LN pipeline Äť *OTUBMMFE UIF $$57 TZTUFN JO /POH 1MB -BJ QVNQ TUBUJPO .BC ,IB SFTFSWPJS SFHVMBUJOH XFMMT BOE #BOH Phra reservoir Äť 1VU VQ UIF TBGFUZ TJHOT BOE TBGFUZ TZNCPMT Äť *OTUBMMFE UIF TPVOE BCTPSQUJPO NBUFSJBMT JO /POH 1MB Lai pump station 2-3

Äť "TTFTTFE UIF MFHJUJNBDZ PG UIF BDUJPOT UBLFO BOE adjusted the plans in accordance with the regulations All the activity plans had the complete details describing their goals, indicators, frequency, persons in charge, activity duration, and reference to the laws (if necessary).

2. The operations done by the safety committee The committee held the regular monthly meeting and arranged the monitoring of the safety management as stated in the article 1, and also assessed of work environment, safety, occupational health, and hygiene as stated in the article 4 5IF MFHJUJNBUF BQQPJOUNFOU PG UIF TBGFUZ PGĹłDFST on every level The appointment documents were processed within the legitimate time frame.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Goals In order for EW to support all the employees in the aspects of health, safety, and hazard prevention.

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These documents and reports were, for example, accident investigation report, safety operation report by the safety PGųDFST FMFDUSJDBM TZTUFN FYBNJOBUJPO SFQPSU ųSF FWBDVBUJPO BOE ųSF TVQQSFTTJPO ESJMM SFQPSU IB[BSEPVT DIFNJDBMT SFQPSU (for the Department of Labour Protection and Welfare), examination report on the parts and components of the stationary cranes, elevator safety report, building examination report, and the request documents for the possession of 1) The assessment on safety and hygiene Ļ &YBNJOFE UIF TBGFUZ PG UIF FMFDUSJDBM TZTUFNT GPS UIF dangerous materials.

PGųDF CVJMEJOHT BOE PQFSBUJPOBM BSFBT Ļ &YBNJOFE UIF CVJMEJOHT BDDPSEJOH UP UIF #VJMEJOH Last year, the Company had prepared and processed all the above-mentioned documents promptly and completely, $POUSPM "DU )FBE 0GųDF

Ļ &YBNJOFE UIF QBSUT BOE DPNQPOFOUT PG UIF TUBUJPOBSZ therefore there was no warning for the delay or the absence of any document from any government agency. cranes Ļ &YBNJOFE UIF ESJOLJOH XBUFS JO UIF PGųDF CVJMEJOHT 5IF ųSF QSFWFOUJPO ųSF TVQQSFTTJPO BOE and operational areas Ļ &YBNJOFE UIF ųSF QSFWFOUJPO FRVJQNFOU BOE ųSF emergency drills Ļ 0SHBOJ[FE UIF ųSF FWBDVBUJPO ESJMMT BU UIF )FBE 0GųDF suppression systems Ļ &YBNJOFE UIF FMFWBUPST CZ FMFDUSJDBM FOHJOFFST $IBSUFS operational areas, and pump stations in Rayong, Chonburi, and Chacheonsao Engineer or higher) Ļ &YBNJOFE UIF JOUFHSJUZ PG UIF SBX XBUFS SFTFSWFE QPOET Ļ 1SPDVSFE ųSF TVJUT BOE ųSFųHIUJOH FRVJQNFOU GPS UIF XIJDI XFSF $IBDIFPOTBP SFTFSWFE QPOET " # BOE 3FTFSWF &BTU 8BUFS #VJMEJOH BOE PQFSBUJPOBM BSFBT 3BX 8BUFS 1POE 4BN /BL #PL SFTFSWFE QPOE )VC Ļ *OTUBMMFE UIF ųSF QSFWFOUJPO BOE TVQQSFTTJPO TZTUFNT #PO QPOE .BC ,IB QPOE .BC 5B 1VE SFHVMBUJOH in the pump station building in Nong Kho, and the booster pump at Dok Krai Reservoir and Nong Plalai Reservoir XFMM 4BUUBIJQ QPOE #BOH 1BLPOH SFHVMBUJOH XFMM Ļ "TTFTTFE UIF PDDVQBUJPOBM SJTL GBDUPST CZ PDDVQBUJPOBM Ļ 1SPDFFEFE XJUI UIF 1SFWFOUJWF .BJOUFOBODF 1.

XPSLT GPS UIF ųSF QSFWFOUJPO BOE ųSF TVQQSFTTJPO TZTUFNT GPS UIF physicians Ļ 4FU VQ UIF BVUIPSJ[BUJPO QSPDFEVSFT GPS XPSLJOH JO &BTU 8BUFS #VJMEJOH BOE PQFSBUJPOBM BSFBT DPOųOFE TQBDFT BOOPVODFE UIF QSPDFEVSFT UP UIF SFMFWBOU 7. The support for safety activities and events personnel in order to put it into practice Ļ &YBNJOFE BOE QSPDVSFE UIF 11& 1FSTPOBM 1SPUFDUJWF Ļ 1VCMJTIFE UIF EPDVNFOUT UP TQSFBE BXBSFOFTT BCPVU Equipment) for the staff, according to their job characteristics safety, occupational health, and environment Ļ "ENJOJTUFSFE UIF ) / *OŴVFO[B WBDDJOBUJPO BOE and risks organized the preventive measures 2) The assessment on work environment and work Ļ 0SHBOJ[FE UIF QSJ[F DPOUFTUT PO TBGFUZ Ļ 0SHBOJ[FE UIF 4BGFUZ 8BML 3BMMZ conditions Ļ &YBNJOFE UIF XPSL FOWJSPONFOU BOE JOEVTUSJBM IZHJFOF Ļ 0SHBOJ[FE UIF 4 BDUJWJUJFT measurements on these subjects : lights, noises, heat, air quality in the building and chemical concentration The training exercises for employees on the subject of health, safety, and occupational health according to &BTU 8BUFS #VJMEJOH

Ļ &YBNJOFE UIF XBTUF XBUFS RVBMJUZ SFMFBTFE GSPN UIF the exercise plans on safety, health, and environment &BTU 8BUFS #VJMEJOHĴT XBTUF XBUFS USFBUNFOU BOE UIF XBTUF *O UIF $PNQBOZ BSSBOHFE USBJOJOH DPVSTFT GPS FBDI group of employees according to their job characteristics, water in the operational areas risks, and job roles, as follows: Ļ 5FTUFE UIF BJS RVBMJUZ JO UIF PGųDFT Ļ %FUFDUFE UIF -FHJPOFMMB CBDUFSJB JO UIF DPPMJOH UPXFST Ļ 4BGFUZ PGųDFS USBJOJOH PO UIF FYFDVUJWF MFWFM Ļ 4BGFUZ PGųDFS USBJOJOH PO UIF TVQFSWJTPS MFWFM 5. The preparation of safety documents and reports Ļ #BTJD ųSF ųHIUJOH ESJMM GPS OP MFTT UIBO PG BMM UIF employees for the government agencies 4. The assessment of environment, safety, occupational health, and hygiene in the workplace The Safety, Health and Environment Committee conducted the regular safety audits every month and cooperated with other units in the Company to take these following actions in compliance with the complete safety standard.

36

other activities to create the â&#x20AC;&#x153;Happy Workplaceâ&#x20AC;? such as occasional activities, the constant blood donation events awarded by Phramonkutklao hospital for having been a constant supporter of blood donation for over 5 years, religious activities, and the promotion of the recreational activities by SFJNCVSTJOH UIF NFNCFSTIJQ GFF GPS ĹłUOFTT DFOUFST CBDL UP UIF FNQMPZFFT PVU PG UIF Ĺ´FYJCMF CFOFĹłUT 5IF TBUJTGBDUJPO survey result on the work environment was higher than 3.5 (high level) in 2013.

Äť 4BGFUZ USBJOJOH GPS FMFDUSJDBM XPSL Äť 4BGFUZ NBOBHFNFOU USBJOJOH JO DPOTUSVDUJPO GPS UIF construction foremen Äť 1SJODJQMFT PG QFSTPOBM QSPUFDUJWF FRVJQNFOU VTF The constant and professional care for both physical and mental health of the employees The human resources department arranged the constant annual health examination for the employees and organized

The fair and indiscriminate criteria GPS UIF TFMFDUJPO PG RVBMJĹłFE FNQMPZFFT

The above-mentioned criteria for employee selection state our organizationâ&#x20AC;&#x2122;s principles of the fair and indiscriminate IJSJOH BT SFĹ´FDUFE JO UIF OFX FNQMPZFF OVNCFST DIBSU CFMPX that the male-to-female ratios of the new employees were close in 2013.

As seen above, the Company has set the fair criteria for the educational background without differentiating the types

New Employees in 2013 male

numbers

10 8

female

9 8 7

6

5

4

5

3

2

2 0 Q1

Q2

Q3

0 Q4

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

or rankings of the institutes. In case that the candidates graduated abroad, we only require that the institutes are OCSC-approved, but we still require the same level of GPA as those graduated from domestic institutes. As for the RVBMJĹłDBUJPOT UIF $PNQBOZ IBT TFU UIF DSJUFSJB BDDPSEJOH UP the necessary knowledge and competencies for the positions.

The important facts about the criteria for employee selection is that the Company does not hold the sex of any candidate as an important criterion, except for when the applied positions require that the employees must work in the TJHOJĹłDBOUMZ EBOHFSPVT BSFBT 5IF DBOEJEBUFT GPS UIFTF particular positions will be considered on a case-by-case basis.

The criteria for the fair selection of new employees The Company has declared these criteria for the selection of new employees since 2010. The two main criteria are FEVDBUJPOBM CBDLHSPVOE BOE RVBMJĹłDBUJPOT BT GPMMPXT 8PSL FYQFSJFODF JO B SFMBUFE ĹłFME &OHMJTI QSPĹłDJFODZ BDDPSEJOH UP UIF 50&*$ TUBOEBSE GPS each different position (PPE DPNQVUFS TLJMMT JO CBTJD PGĹłDF BQQMJDBUJPO TPGUXBSFT (MS Word, Excel, Power Point). The candidates for the TQFDJĹłD QSPGFTTJPOBM QPTJUJPOT TIPVME BMTP CF TLJMMFE JO UIF application softwares related to their work.

0UIFS QSFGFSBCMF RVBMJĹłDBUJPOT 'PS FYBNQMF QSPGFTTJPOBM license is preferred when apply for an engineer position, BOE FNQMPZNFOU DFSUJĹłDBUFT PS PUIFS LJOET PG DFSUJĹłDBUFT are preferred for the candidates of the other professional positions.

37

We promote employeesâ&#x20AC;&#x2122; rights and participation in order to create value of being East Waterâ&#x20AC;&#x2122;s employees

Leaders and chief executives have been emphasizing on corporate culture or TCC â&#x20AC;&#x201C; Teamwork, Communication, and Coaching. There are several internal communication channels for instance meetings, emails, phone calls, SMS alert including LINE application to inform all employees of the news simultaneously and rapidly. In addition, employees are allowed to send their feedbacks and complaints directly UP UIFJS EJSFDUPST WJB Äś$&0 .BJM #PYġ &NBJM DFP!FBTUXBUFS DPN

The details of communication channels currently used in the organization can be concluded as follows;

Formality

Channels

Formal

1. CEO Mail box 2. CEO - Employee Meeting 3. MM Meeting #0% .FFUJOH

Receiver All employees All employees Executives Executives

Informal

Frequency

5. Outing

Manager

Chief executives up to consideration Chief executives once a year Chief executives Mondays Chief executives/ every month Corporate Committee Chief executives once a year

.FFUJOH GPS 4FUUJOH 3FWJTJOH 7JTJPO .JTTJPO BOE 7BMVFT 7. Meeting for Strategies and KPIs 8. Monitoring 9. Coaching

Manager

Chief executives

Types of Communication

1-way

2-way

once a year

Chief executives once a year Chief executives every month Chief executives/ up to consideration Executives Welfare Committee 10. Welfare Committee Meeting every quarter Executives 11. Security Committee Meeting All employees Safety Committee every month Executives 12. Meeting for Customer Service Operation-level every month Improvement employees 13. Intranet, Notice, E-mail everyday All employees Chief executives All employees Chief executives Chief executives/ Chief executives/ Executives Executives 8JSF #SPBEDBTU All employees Chief executives/ Executives Executives 4. Employeeâ&#x20AC;&#x2122;s Parties & Clubs All employees Executives All employees 5. Lunch Talk & Tea Time employees/ employees/ $MVC .FFUJOHT Executives Executives employees/ 7. Phone Calls & LINE Application All employees Executives/ Chief executives In case of emergency, CEOs will call upon a meeting, consider options together and opt for the most appropriate one.

X X X X X X X X

up to consideration up to consideration up to consideration

X X X X X

All employees All employees All employees

1. Walk & Talk with Employees 2. Meet & Meal with Employees

38

Sender

X X X

up to consideration up to consideration occasionally

X X X

everyday

X

Then, they will notify directors of all departments and everyone involved via LINE groups immediately.

Employeesâ&#x20AC;&#x2122; Participation under East Waterâ&#x20AC;&#x2122;s Welfare Committee According to the law, welfare committee in a workplace is an intermediary who conveys requirements of employees to employers, provides consultation and conducts an audit to examine the organizational welfare management. The establishment of â&#x20AC;&#x153;welfare committeeâ&#x20AC;? is not only an act manipulated by the law (Labour Protection Law 1998), but also an encouragement for employees to discuss with their employer (the Company) about welfare management and this committee has become a communication channel between employer (the Company) and employees.

In 2013 our company selected welfare committee from JOUFSOBM FNQMPZFFT PG EJGGFSFOU MFWFMT BT GPMMPXT .JTT 4JSJQPSO #PPOLPBJ "TTJTUBOU 7JDF 1SFTJEFOU PG Corporate Communications 2. Miss Pitima Patthamanon Employee Relations Manager 3. Miss Amornlak Sukmak Safety Engineer .JTT /BSFFSBU 5BPUIPOH )3 0GĹłDFS 5. Mr. Suriya Graichang Technician (Electricity) .S 4VDIFSU 1IPMTFO 5FDIOJDJBO &MFDUSJDJUZ

The selection process for the committee was as follows;

ÄŠĹ&#x2DC;Ĺ&#x2DC;Ĺ&#x2014;Ĺ&#x2018;Ĺ&#x2013;Ĺ&#x153;Ĺ?Ĺ&#x152; Ĺ?Ĺ&#x201D;Ĺ?Ĺ&#x2039;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013; Ĺ&#x2039;Ĺ&#x2014;Ĺ&#x2022;Ĺ&#x2022;Ĺ&#x2018;Ĺ&#x153;Ĺ&#x153;Ĺ?Ĺ? ÄŞĹ&#x2030;Ĺ&#x2013;Ĺ?Ĺ&#x201C;Ĺ&#x2014;Ĺ&#x201C; Ĺ&#x2014;Ĺ&#x17D;Ĺ&#x17D;Ĺ&#x2018;Ĺ&#x2039;Ĺ? ĹŽeĹŻ Ĺľ ÄşĹ&#x2030;ĹĄĹ&#x2014;Ĺ&#x2013;Ĺ? Ĺ&#x2014;Ĺ&#x17D;Ĺ&#x17D;Ĺ&#x2018;Ĺ&#x2039;Ĺ? ĹŽbĹŻ

ÄŠĹ&#x2013;Ĺ&#x2013;Ĺ&#x2014;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ?Ĺ&#x152; Ĺ&#x;Ĺ?Ĺ&#x201D;Ĺ&#x17D;Ĺ&#x2030;Ĺ&#x161;Ĺ? Ĺ&#x2039;Ĺ&#x2014;Ĺ&#x2022;Ĺ&#x2022;Ĺ&#x2018;Ĺ&#x153;Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x2030;Ĺ&#x2DC;Ĺ&#x2DC;Ĺ&#x201D;Ĺ&#x2018;Ĺ&#x2039;Ĺ&#x2030;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013; d Ĺ&#x;Ĺ?Ĺ?Ĺ&#x201C;Ĺ&#x203A; Ĺ&#x160;Ĺ?Ĺ&#x17D;Ĺ&#x2014;Ĺ&#x161;Ĺ? Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x153;Ĺ?Ĺ&#x161;Ĺ&#x2022; Ĺ&#x2014;Ĺ&#x17D; Ĺ&#x2039;Ĺ?Ĺ&#x161;Ĺ&#x161;Ĺ?Ĺ&#x2013;Ĺ&#x153; Ĺ&#x2039;Ĺ&#x2014;Ĺ&#x2022;Ĺ&#x2022;Ĺ&#x2018;Ĺ&#x153;Ĺ&#x153;Ĺ?Ĺ? Ĺ?Ĺ&#x2013;Ĺ&#x152;Ĺ&#x203A;

ÄźĹ?Ĺ&#x161;Ĺ&#x2014;Ĺ?Ĺ?Ĺ? ġĹ?Ĺ&#x153;Ĺ&#x201D;Ĺ&#x2014;Ĺ&#x2014;Ĺ&#x201C; ĹŹ Ĺ&#x161;Ĺ&#x2030;Ĺ&#x152;Ĺ&#x2018;Ĺ&#x2014; Ĺ&#x160;Ĺ&#x161;Ĺ&#x2014;Ĺ&#x2030;Ĺ&#x152;Ĺ&#x2039;Ĺ&#x2030;Ĺ&#x203A;Ĺ&#x153;

ÄŤĹ&#x2030;Ĺ&#x2013;Ĺ&#x152;Ĺ&#x2018;Ĺ&#x152;Ĺ&#x2030;Ĺ&#x153;Ĺ?Ĺ&#x203A; Ĺ&#x201D;Ĺ&#x2030;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ?Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ?Ĺ?Ĺ&#x2018;Ĺ&#x161; Ĺ&#x2039;Ĺ&#x2030;Ĺ&#x2022;Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x2018;Ĺ?Ĺ&#x2013;Ĺ&#x203A; Ĺ&#x153;Ĺ?Ĺ&#x161;Ĺ&#x2014;Ĺ?Ĺ?Ĺ? Ĺ&#x2039;Ĺ?Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x2013;Ĺ?Ĺ&#x201D;Ĺ&#x203A;

Ä­Ĺ&#x201D;Ĺ?Ĺ&#x2039;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013; Ĺ&#x2039;Ĺ&#x2014;Ĺ&#x2022;Ĺ&#x2022;Ĺ&#x2018;Ĺ&#x153;Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x2013;Ĺ&#x2014;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x201D;Ĺ&#x2018;Ĺ&#x203A;Ĺ&#x153; Ĺ&#x2014;Ĺ&#x17D; Ĺ?Ĺ&#x201D;Ĺ&#x2018;Ĺ?Ĺ&#x2018;Ĺ&#x160;Ĺ&#x201D;Ĺ? Ĺ&#x17E;Ĺ&#x2014;Ĺ&#x153;Ĺ?Ĺ&#x161;Ĺ&#x203A;

ĸĹ&#x161;Ĺ?Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x161;Ĺ?Ĺ&#x152; Ĺ&#x17E;Ĺ&#x2014;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2013;Ĺ? Ĺ&#x160;Ĺ&#x2014;Ĺ&#x2014;Ĺ&#x153;Ĺ?Ĺ&#x203A;Ĺľ ÄŠĹ&#x161;Ĺ&#x161;Ĺ&#x2030;Ĺ&#x2013;Ĺ?Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ?Ĺ? Ĺ?Ĺ&#x201D;Ĺ?Ĺ&#x2039;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013; Ĺ&#x2030;Ĺ&#x203A; Ĺ&#x2DC;Ĺ&#x201D;Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x2013;Ĺ?Ĺ&#x152;

ÄŠĹ&#x2013;Ĺ&#x2013;Ĺ&#x2014;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x161;Ĺ?Ĺ&#x203A;Ĺ?Ĺ&#x201D;Ĺ&#x153; Ĺ&#x2014;Ĺ&#x17D; Ĺ&#x153;Ĺ?Ĺ? Ĺ?Ĺ&#x201D;Ĺ?Ĺ&#x2039;Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013;

ÄźĹ?Ĺ&#x161;Ĺ&#x2014;Ĺ?Ĺ?Ĺ? ġĹ?Ĺ&#x153;Ĺ&#x201D;Ĺ&#x2014;Ĺ&#x2014;Ĺ&#x201C; ĹŹ Ĺ&#x160;Ĺ?Ĺ&#x201D;Ĺ&#x201D;Ĺ?Ĺ&#x153;Ĺ&#x2018;Ĺ&#x2013; Ĺ&#x160;Ĺ&#x2014;Ĺ&#x2030;Ĺ&#x161;Ĺ&#x152;

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

ÄŠĹ&#x2013;Ĺ&#x2013;Ĺ&#x2014;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x201D;Ĺ&#x2018;Ĺ&#x203A;Ĺ&#x153; Ĺ&#x2014;Ĺ&#x17D; Ĺ&#x2039;Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x152;Ĺ&#x2018;Ĺ&#x152;Ĺ&#x2030;Ĺ&#x153;Ĺ?Ĺ&#x203A;

39

Support the Improvement of Employeesâ&#x20AC;&#x2122; Development

Approaches of Personnel Development Regarding personnel development, the Company focuses on both individual and organization development to yield both short-term and long-term results as presented below.

long term

Results

Short term

Personnel Development

Performance Management

Individual Development

Organization Development

Career Development

Succession Plan

Individual

Organization Emphasis

In 2013 the company initiated an individual development plan (IDP) in order to evaluate and monitor its employees whether they were working in accordance with job descriptions and requirements. In 2014 an approach of individual development plan is to develop employeesâ&#x20AC;&#x2122; knowledge, skills and capabilities with the ratio of 70-20-10. The purpose is that employees can develop themselves through actual performance or on-the-job training (70%), learning from

40

others (20%) and formal learning such as training (10%) â&#x20AC;&#x201C; all are presented in the diagram below.

70 on-the-job training such as routine work, extra work, assignments, projects, job rotation, etc.

20 learning from others such as coaching, consultation, knowledge exchanging 10 training, formal learning, self-learning

Performance Evaluation Human resources department arranges evaluation twice a year. In the evaluation document, employees can identify the job they are interested in and the career path they would like to pursue. During the evaluation, supervisor will inform employees about the expected performance, weakness & strength, and possibility & methods of development.

When a position is vacant, human resources department will make an internal announcement so that the interested employees can apply for it. Human resources department will make a decision from the candidates’ application forms, evaluation result, potential, and possible career path. When it is necessary to transfer staff, executives will make a mutual understanding with the staff before transferring

them. The staff must be aware that it is not a punishment, but an opportunity for them to learn new things and to develop themselves to have more insights.

5IF DPNQBOZĴT BOOVBM FWBMVBUJPO JT EJWJEFE JOUP QBSUT Individual KPIs and Core Competency & Functional Competency. Supervisors must monitor, coach and evaluate including provide two-way communication to the team.

The team will be made aware of the evaluation results so that there will be further improvement and development.

The data from the evaluation will be used for future human resources management schemes, for instance, promotion, fair salary adjustment and employees’ development.

Employees’ Potential Development

Analyze requirement for organizational competencies

Set a list of competencies required for each position

Evaluate the systems and capacities of each level

Evaluate individual’s competencies Develop employees to increase competencies

In order to develop employees, there are several approaches besides class room training, for instance, BTTJHONFOUT KPC USBOTGFS ųFME USJQT DPBDIJOH GVSUIFS education and being a coach themselves. To develop each skill needs different approaches.

Regarding other sections’ development systems, the Company BMTP SFBMJ[FT UIFJS TJHOJųDBODF BOE TUJMM DPOUJOVFE UIFJS

processes to get the results, such as talent management which reinforces professionalism and prepares talents for a new working pattern or for transferring to a new unit, career path management, and succession plan which prepares existing employees for executive-level positions PS PUIFS DPSF QPTJUJPOT UIBU TJHOJųDBOUMZ FBSO JODPNF PG UIF organization.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Evaluate the development of employees’ competencies

The Personnel Capability Management Process

41

Moreover, the company has provided training courses in accordance with core organizational competencies and has also sent employees to attend interesting seminars of prestigious institutes. In 2013, there were various courses GPS FNQMPZFFT PG FBDI MFWFM UP BUUFOE BT GPMMPXT Äť 0QFSBUJPO MFWFM $PNNVOJDBUJPO 4LJMMT -BX BOE 2VBMJUZ System, Functional Competency Äť 4VQFSWJTPS MFWFM 4USBUFHJD 5IJOLJOH 'JOBODF GPS Non-Finance, Labour Law, and leadership programs such as EDP (Executive Development Program), Management Skills, and Functional Competency, for instance. Äť &YFDVUJWF MFWFM &YFDVUJWF $PBDIJOH 1SPHSBN DPVSTFT of King Prajadhipokâ&#x20AC;&#x2122;s Institute, and courses of Thai Institute of Directors (IOD)

#FTJEFT DPVSTFT SFMFWBOU UP UIFJS KPCT BOE DPSF DPNQFUFODJFT there were also the courses on managerial skills and foreign MBOHVBHF "4&"/ QSPĹłDJFODZ 5IF $PNQBOZ IBT VSHFE JUT employees since 2007 to participate in dharma practice courses at various dharma retreats. The Company is also aware of the importance of spiritual development that will help its employees to live their lives happily. The employees can attend such courses anywhere that are convenient for them to go and these periods will be counted as training days (work days), and not leave.

Knowledge management,

sharing & conveying The company has set up Knowledge Management (KM) unit since 2010 in order to manage organizational knowledge.

KM unit is responsible for gathering all knowledge related to the companyâ&#x20AC;&#x2122;s mission and core competencies, processing them, setting priorities and structure. There are 2 categories - core process and support process. Regarding KPIs of the

Select Knowledge

Convey, Share, Learn

unit, team members of each category, including talents and employees who are about to resign, must keep a record of at least 2 topics of knowledge per year. In 2011, the company began to use Moodle software as KM Intranet to manage all the knowledge.

Gather, Search, Manage Knowledge

ä ÄŤĹ&#x2014;Ĺ&#x2022;Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x2013;ĹĄĂ?Ĺ&#x203A; Ĺ&#x2022;Ĺ&#x2018;Ĺ&#x203A;Ĺ&#x203A;Ĺ&#x2018;Ĺ&#x2014;Ĺ&#x2013; ä ÄşĹ?Ĺ&#x201D;Ĺ?Ĺ&#x17E;Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x153; Ĺ&#x2DC;Ĺ&#x161;Ĺ&#x2014;Ĺ&#x2039;Ĺ?Ĺ&#x203A;Ĺ&#x203A; ä ÄŤĹ&#x2014;Ĺ&#x161;Ĺ&#x2DC;Ĺ&#x2014;Ĺ&#x161;Ĺ&#x2030;Ĺ&#x153;Ĺ? ijĸĹĹ&#x203A; ä ÄŤĹ&#x2014;Ĺ&#x161;Ĺ? ÄŤĹ&#x2014;Ĺ&#x2022;Ĺ&#x2DC;Ĺ?Ĺ&#x153;Ĺ?Ĺ&#x2013;Ĺ&#x2039;Ĺ&#x2018;Ĺ?Ĺ&#x203A;

ä ÄşĹ?Ĺ?Ĺ&#x2039;Ĺ&#x153; Ĺ&#x161;Ĺ&#x2014;Ĺ&#x201D;Ĺ?ĹľĹ&#x161;Ĺ?Ĺ&#x203A;Ĺ&#x2DC;Ĺ&#x2014;Ĺ&#x2013;Ĺ&#x203A;Ĺ&#x2018;Ĺ&#x160;Ĺ&#x2018;Ĺ&#x201D;Ĺ&#x2018;Ĺ&#x153;ĹĄ Ĺ&#x2014;Ĺ&#x17D; Ĺ?Ĺ&#x2030;Ĺ&#x2039;Ĺ? Ĺ&#x152;Ĺ?Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x161;Ĺ&#x153;Ĺ&#x2022;Ĺ?Ĺ&#x2013;Ĺ&#x153;ĹľĹ&#x2DC;Ĺ?Ĺ&#x161;Ĺ&#x203A;Ĺ&#x2014;Ĺ&#x2013; ä ÄşĹ?Ĺ?Ĺ&#x2039;Ĺ&#x153; Ĺ&#x153;Ĺ?Ĺ? Ĺ&#x2039;Ĺ&#x2014;Ĺ&#x2022;Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x2013;ĹĄĂ?Ĺ&#x203A; Ĺ?Ĺ&#x2014;Ĺ&#x2030;Ĺ&#x201D; Ĺ&#x161;Ĺ?Ĺ&#x201D;Ĺ&#x2030;Ĺ&#x153;Ĺ?Ĺ&#x152; Ĺ&#x153;Ĺ&#x2014; Ĺ?Ĺ&#x2030;Ĺ&#x2039;Ĺ? Ĺ&#x152;Ĺ?Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x161;Ĺ&#x153;Ĺ&#x2022;Ĺ?Ĺ&#x2013;Ĺ&#x153;Ĺľ person ä ÄźĹ?Ĺ&#x161;Ĺ?Ĺ&#x2030;Ĺ&#x153;Ĺ&#x203A;

Create Innovation

ÄşĹ?Ĺ&#x17E;Ĺ&#x2018;Ĺ&#x203A;Ĺ? ĹŹ Ä˝Ĺ&#x2DC;Ĺ&#x152;Ĺ&#x2030;Ĺ&#x153;Ĺ?

Knowledge Management of East Water

42

Create Access to Knowledge

ä ĸĹ&#x161;Ĺ&#x2014;Ĺ&#x2039;Ĺ?Ĺ&#x203A;Ĺ&#x203A; Ĺ&#x2014;Ĺ&#x17D; Ĺ?Ĺ&#x2030;Ĺ&#x2039;Ĺ? Ĺ&#x152;Ĺ?Ĺ&#x2DC;Ĺ&#x2030;Ĺ&#x161;Ĺ&#x153;Ĺ&#x2022;Ĺ?Ĺ&#x2013;Ĺ&#x153; Ĺľ Ĺ&#x2DC;Ĺ?Ĺ&#x161;Ĺ&#x203A;Ĺ&#x2014;Ĺ&#x2013;

Apply

Channels of Sharing Knowledge (Internal) Activities 1. Tea Time 2. Lunch Talk

3. KMâ&#x20AC;&#x201C;Day 4. EWG Journal, EWG News

5. Innowave Project

*OUFSOBM 57

Details It was arranged every other Friday, in the afternoon. Employees shared their stories with colleagues with the same interest.

The project was organized when EW employees attended both EPNFTUJD BOE JOUFSOBUJPOBM USBJOJOH ĹłFME USJQT 5IFZ XPVME TIBSF UIFJS own experiences and knowledge to colleagues while having lunch.

The aim was to present the knowledge of the previous year from each EFQBSUNFOU *U XBT UIF ĹłSTU PGĹłDJBM LOPXMFEHF TIBSJOH PG UIF $PNQBOZ The aim was to announce the news inside the organization, to share knowledge from domestic and international sources about water, to communicate between units, and to urge employeesâ&#x20AC;&#x2122; participation with fun quizzes The aim was to provoke employeesâ&#x20AC;&#x2122; thinking and to promote innovations in the workplace by encouraging employees to develop innovation in PSEFS UP SFEVDF UIF FYQFOTFT BOE UP JODSFBTF FGĹłDJFODZ BT XFMM The aim was to share the interviews of EW executives and employees, various knowledge, companyâ&#x20AC;&#x2122;s vision and mission, English lessons (English Delivery) and hot news with EW.

Activities 1. Customer Relationship Management (CRM)

2. Seminars

Details The aim was to make a good relationship and create a two-way communication channel which led to learning and mutual understanding between East Water and customers. The activity was to visit customers every quarter and on every special occasion to ask about their satisfaction and to join together in CSR activities.

The aim was to provide new knowledge to customers, local mass media, tenants and business partners. The attendants could listen to experts of various professions lecturing on current issues, especially on water management which was directly related to the Companyâ&#x20AC;&#x2122;s business.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Channels of Sharing Knowledge (External)

43

Good welfare creates employeesâ&#x20AC;&#x2122; good quality of life, which leads to work-life balance and happiness.

Formerly, the Company provided the same welfare scheme to all employees. Later, in 2007, the company made a survey on employeesâ&#x20AC;&#x2122; satisfaction on welfare and found that employees had different needs, depending on their gender, age, marital status, number of children, childrenâ&#x20AC;&#x2122;s age. Consequently, the Company began to use a new XFMGBSF TDIFNF PS 'MFYJCMF #FOFĹłU 5IF QSPHSBN QSPWJEFE 13 different categories which covered employeeâ&#x20AC;&#x2122;s health care, parentâ&#x20AC;&#x2122;s health care, childrenâ&#x20AC;&#x2122;s health care, tuition fee and recreational expenses such as traveling and sports.

The expenditure framework was set approximately 80,000 baht/employee/year. Furthermore, in 2012 the company JODSFBTFE UIF MJNJU PG IFBMUI DBSF CFOFĹłU DBUFHPSZ XIJDI meant employees could claim for full amount. The purpose was to help employees who suffered serious illnesses or received major operations. In 2013, East Water raised the CFOFĹłU DPWFSJOH 01% USFBUNFOU Äą GSPN UP CBIU GPS FBDI WJTJU Äą XIJDI DPVME FBTF FNQMPZFFTÄ´ ĹłOBODJBM burden. The Company realized that compensation was a factor that raised employeesâ&#x20AC;&#x2122; satisfaction and participation.

44

45

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

WATER 4 EFFICIENCY

East Water’s business is pumping raw water and distribution to customers who have no alternative water sources and cannot supply enough backup source of water for use throughout the year. Customers then choose to use raw water service through the Company’s pipeline. According to the principle, water transportation through the pipeline system is the most economic method. Therefore, in the life cycle of the Company’s customers, there are a very small number of customers who stop receiving raw water from the Company and turn to getting raw water from other service providers instead.

0SHBOJ[BUJPO &GųDJFODZ Development Team

The Company uses the concept in designing a working process and creating innovation of the process according to the requirements. So, the Company focuses on bringing new technologies to be considered in designing a process including the time frame, products, cost control, factors of FGųDJFODZ BOE FGGFDUJWFOFTT PG JOUFSOBM DPOUSPM BDDPSEJOH to the diagram below.

Work System needs to be reviewed

No

Maintain in ISO & KPIs system follow up

Yes

Input Data 1) Voice of customers (VOC) 2) Strategic plan of the organization 3) Knowledge and Core Competency 4) A change of technology 5) Business imperative

Important Regulation 1) Related law and regulation 2) Transparency, mobility and Balance & Check maintaining 3) Low risk 4) Reduce time/ reduce redundancy

New Product/Service

New Product/Service

New activity/process Design new activity/ process using Job/Task Analysis Analyse the task / Feasibility Study / process to consider Worthiness of investment alternatives for in new products improvement and scope EFųOJUJPO Select/ decide / approve the test or experiment Design by using a new product/service development process

Test new products or services / implement and determine performance indicator

Follow up and evaluate performance No

&GųDJFODZ

No

Yes

Introduce to ISO 9001 & 14001 system and put into practice

46

The key process is a process in raw water pumping and distribution pumping raw water as a network which currently links to XBUFS EJTUSJCVUJPO JO QSPWJODFT PG 3BZPOH $IPO #VSJ BOE $IBDIPFOHTBP *U JT BCMF UP EJTUSJCVUF SBX XBUFS GSPN UIF areas with adequate water supply to the areas in need. It is a process of delivering value to customers by ensuring TUBCJMJUZ PG XBUFS TVQQMZ HFOFSBUJOH QSPĹłUT BOE SFUVSOT BOE DSFBUJOH TVTUBJOBCJMJUZ GPS UIF PSHBOJ[BUJPO

Customer Service Orientation The main points of the operation that show the effectiveness of the service are as follows: 1. Service and customer care to create maximum satisfaction Chief executives will behave as a role model to encourage attention to customers and stakeholders. Information science and modern technologies are adopted for using in data analysis and communication. The performance is regularly controlled and followed according to the table below Sender

Receiver

Communication Method

Frequency Type of Communication

Employee(Operation and Customer Service Department)

1. Water War room meeting 2. Customer Meeting and reception 3. Customers visit and comment 4. Customer (WAREE & Company Websites) 5. Respond to complaints, suggestions and solutions &NBJM 4.4 "MFSU

7.Online Metering System

Customer Service Improvement (CSI) requires that the needs of customers in terms of quality and quantity of supply are surveyed to monitor the change in quality that exceeds Service Level as set by Customer (Customized Service Level : CSL). That value will be set and stored to alert in the SCADA database as criteria for monitoring water use.

5IF DVTUPNFST XJMM CF OPUJĹłFE BIFBE PG UJNF JG UIF WBMVF changes in order to reduce the impact that may affect the customerâ&#x20AC;&#x2122;s production system and to monitor and quickly solve the Companyâ&#x20AC;&#x2122;s problem. In the future, the Company plans to survey other needs to improve the service to be more effective.

From the implementation of the process for improving the service quality of the CSI Committee above, the customer segmentation will be analyzed and improved with the

Every month 2 times/year 4 times/year Every day

X X X X X

As request According to the agreement Everyday

X

X

focus on service providing and responding to different DVTUPNFS HSPVQT BDDPSEJOH UP XIP BSF UIF ĹłTU NPTU JNQPSUBOU (key customers with high potential) and who are the second most importance by considering the data and information of customers in 3 dimensions namely high or low revenue yield customers, potential customers with a big or small business, customers who make a highest or lowest impact on corporate reputation by word of mouth communication.

Each index will be rated and all indexes in every dimension will be evaluated. The segmentation is for preparation of the plan and service providing frequency and organizing CRM activities and holding a meeting to report and review the progress and constantly review the working methods for improvement at the CSI Committee meeting on a monthly basis.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Chief Executive Chief Executive Chief Executive Executive (Operation and Customer Service Department) Executive (Operation and Customer Service Department) Executive (Operation and Customer Service Department)

Customers

One-Way Two-Ways

47

2. Systematical evaluation of customer satisfaction, expectation and customer loyalty with the well-planned steps The Company evaluates the customer satisfaction, expectation and customer loyalty by conducting a customer satisfaction survey at least 2 times a year. The survey is divided into 5 parts:

$VTUPNFS TBUJTGBDUJPO JO BMM TFSWJDF BSFBT "DUJWJUZ 1MBO UP FODPVSBHF SFMBUJPOTIJQ XJUI DVTUPNFST &YQFDUBUJPO BOE customer loyalty to the company 4) Image of the company and 5) Additional Required Services. Open-ended questions on

The marketing department will conduct the customer satisfaction surveys to learn about the customer satisfaction level. The process of survey is described below.

Customer and Stakeholder Satisfaction Marketing Communication Department and Third Party Evaluation Team review the assessment method using the input data from VOC, past assessment results from stakeholders Set up evaluation factor and conduct survey focus group by employee/customers

Step

Description

1

Design the questionnaire

2

Test and revise

the questionnaire by using the suggestions from the test survey results to improve the questionnaire before actual use.

3

Conduct the customer and group satisfaction surveys.

Make an appointment with customers/stakeholders to conduct a face-to-face interview.

4

Assess the customer and stakeholder group satisfaction.

Evaluate customer satisfaction survey results using statistical methods.

5

Analyze customer and stakeholder groups’ needs.

Compare the results with another benchmark result and implement them for improvement.

In addition to customer satisfaction surveys following our policy for the internal quality and environment management system, the companies also have external organizations (Third Party) namely: Kasetsart University, Sriracha Campus conducted the customer satisfaction survey to compare the results with what we have got by ourselves. Moreover the Company also conducts the survey on the customer satisfaction and corporate image directly with the raw water customers and with entrepreneurs in each industrial estate that receive the Company’s raw water. The survey results will be analyzed in three key areas.

1. Expectation; to identify opportunities to improve the process or the product / service to serve the customer needs even better.

2. Engagement and Image; to study vision and attitudes 48

dissatisfaction, suggested areas of improvement, compliments and general suggestions. In addition, the surveys are conducted to cover plan of water - utilization and projects in future to get information of trend and mapping water usage by customers.

of customers to services in both positive and negative issues. To understand and set up method to maintain customers’ loyalty and decrease opportunities that the customers switch their services to others.

3. Satisfaction; to maintain the level of satisfaction from services and 4. Dissatisfaction / Complaint; to determine the corrective actions.

In conclusion, the analysis result and Prevention Action and Improvement Plan will be reported to the Management Meeting (MM) through the Quality System Management Committee Representative (QMR) with conferences to review the adequacy of the performance in each area.

Listening and Learning Method

Information Needed

Analysis and Forecast Process

Utilization to Achieve Customer Focus

1. The needs and expectations of our current and future customers.

2. Customerâ&#x20AC;&#x2122;s water receiving plans to understand the tendency and direction.

3. Performance and availability of equipments and machines

Root Cause Analysis

1. Create opportunities in expanding business with the existing potential customers and new customers in the future.

2. Plan the water supply delivery plan to meet customer demand and the future project investment plan to support the growth direction.

3. Provide technical consultation to achieve the highest customer satisfaction.

Satisfaction Survey by Internal Processes (Internal Survey) External Agency Hired Satisfaction Survey (External Survey).

Customer Seminar Event

1. Survey of satisfaction/ dissatisfaction including the expectations 2. Customer perception of the corporate image

Root Cause Analysis

Plan the service improvement plan to best meet the needs and expectations of our customers in order to maintain existing customers and to serve as information for service system improvement.

Phone Call E-mail Letter Control Ceter Website

1. An issue of a complaint and request from customers.

2. Problems that customers give priority to.

Root Cause Analysis

Rapidly determine plans to Prevent mistakes in order for constant improvement of products and services, in a bid to reduce frequency of complaints and move towards.

Opportunities for Contact

Sales visit

Information and Receipt of Complaint

Satisfaction Survey

Asking questions during visit/Sale call

Costomer site visit Meeting during the meter record write-down meeting during maintenance/meter calibration Operation Meeting technical seminar training to give knowledge to customers Open House war room meeting relationship building activities (Entertainment & Lifestyle)

Sustainable Development Report 2013 E WWaterRResources D Development l d Mand Manageme PLC PLC. Eastern Management

3. Hearing to Voice of customer (Voice of Customer: VOC) 5IF $PNQBOZ IBT B QPMJDZ GPS 7PJDF PG $VTUPNFS 70$ IFBSJOH UISPVHIPVU UIF MJGFDZDMF PG CFJOH UIF SBX XBUFS DVTUPNFS UISPVHI a variety of channels as below:

49

If customers detect a malfunction in the water system, they can obtain information support service, submit the complaint via the Control center that is available 24 hours, or contact the responsible person directly.

East Water Hotlines 3FRVFTU B TFSWJDF ĹłMF B DPNQMJBOU (Water distribution service / maintenance service & equivalence test / information request)

Marketing Division

Division Manager: Mr. Chokchai Tawisuwan Tel : 081-8252895 Email : chokchai_taw@eastwater.com

Maintenance Division

Division Manager: Mr. Tawatchai Uttakawapi Tel : 085-4875018 Email : tawatchai.u@eastwater.com

Water Distribution Service Division

Division Manager: Mr. Suphatat Saphiman 5FM Email : suphatat@eastwater.com

.BSLFUJOH %JWJTJPO #BOHLPL

Control Center (Map Ta Phut)

(24-hour hotline operation) 5FM 'BY

Marketing Division (Rayong)

5FM 'BY .T 4BFOHSBXFF 7JSJZBNFUIBSPK /PL

5FM PS FYU Email : saengrawee@eastwater.com

Assistant to the Director, Operation and Customer Services Mr. Pipat Puangsuk Tel : 081-9120922, Email : pipat@eastwater.com

4FOJPS &YFDVUJWF 7JDF 1SFTJEFOU PG 0QFSBUJPO BOE $VTUPNFS 4FSWJDF %FQBSUNFOU Mr. Cherdchai Pitiwacharakul 5FM &NBJM DIFSEDIBJ!FBTUXBUFS DPN

4. Handling customer complaints The Company has provided multiple channels to listen to the voice of the customer as shown in the diagram in (1.2) including a phone communication channel and E-mail channel: marketing@eastwater.com which enable the whole Companyâ&#x20AC;&#x2122;s management team to be informed about the service request or complaints from customers at the same time to perform the service or resolve the issue entirely.

Moreover the marketing department has prepared an operation (Work Procedure), service and customer complaint handling manual according to the quality management system (ISO 9001) and environmental management system (ISO 14001).

50

5FM 'BY Email : marketing@eastwater.com Äť .T .POUIJLB 1PUIBXPSO 'PO

5FM monthika_pot@eastwater.com Äť .S 8VUUIJXBU /VNTBFOHXBOJUDI +BDL

5FM PS FYU Email : wuthiwas_num@eastwater.com Äť .T 1JZBDIBU $IBJBSVO "JS

Tel : 081-8283359 or ext.2455 Email : piyachat_cha@eastwater.com Äť .T +JSBUDIZB %BFOH VSBJ /VOV

5FM PS FYU Email : jiratchya_dae@eastwater.com

For the compliants, the processes are follows: 1. Determine the compliant issue : from the error or mis-conduct in operating procedure The Marketing Department will record the issue as the customerâ&#x20AC;&#x2122; compliants and resolve the reason of the compliants. The matters will be reported to CSI Committee which consist of : Steering Committee and Executive who will assign policy to related PGĹłDFS UP TFUUMF UIF JTTVF UP CF ĹłOJTIFE JO TQFDJĹłD UJNF 2. Determine the compliant issue : not the error from East Water. The Customer Service Department will record the issues as service suggestions.

For all services requests and compliants, Marketing Department is required to inform the customer upon the matter is settled and request the customer to evaluate service of the resolve compliant issue. Then the Marketing Department is responsible to prepare summary report of service of resolve compliant present to MM on monthly basis in order to improve operating procedure to be FGĹłDJFODZ BOE BWPJE SFQFBU FSSPST 5. Expanding customers bases and increase sales Marketing and sale strategies are continually performed in accordance with marketing and economic situations. The processes of collecting information are conducted closely to existing and potential customers who wish to use water

or water consumption expansion through many channels and activities such as questionaires, visiting and survey customersâ&#x20AC;&#x2122; satisfaction. In addition, there are expansion on customers base of raw water to potential customers and increasing volume of sale to existing customers for some period of time and expand area of concession with improve pipeline system and network to cover areas of service. The marketing department will summarize the data of water utilization with growth plan of raw water and send to the UFBNT JOWPMWFE JODMVEJOH #VTJOFTT %FWFMPQNFOU UFBN 1SPKFDU 1MBOOJOH UFBN BOE BGĹłMJBUJOH DPNQBOJFT UP BOBMZ[F that information, study the possibility of providing the service and to determine the development opportunities for innovative products and services and to expand others business.

The use of technology in important work systems

copyright owner. Internal Quality Audit and Internal Environmental Audit (IQA & IEA) will be monitored quarterly according to ISO requirements through a process of internal audit (IA) by audit department. This is to ensure that the operation is in accordance with the prescribed procedure and results in achieving the key requirements.

Key technologies that demonstrate the effectiveness of the 5IF $PNQBOZ JT UIF ĹłSTU JO UIF DPVOUSZ GPS JNQMFNFOUJOH Companyâ&#x20AC;&#x2122;s work system in the late 2014 are as follows: technology of producing tap water from sea water. This 1. Use of technology within the organization to improve technology is used by Universal Utilities Company Limited, work performance a subsidiary that produces tap water for Koh Srichang, Koh The Company has implemented Enterprise Resource planning Lan and Koh Samui. It can solve the problem of shortage of (ERP) system for improving supporting work system in order water supply in the area. There is also an implementation of to connect procurement process, inventory management membrane technology in tap water production process and QSPDFTTFT BOE BDDPVOUJOH BOE ĹłOBODJBM QSPDFTTFT UPHFUIFS in wastewater treatment, in which design, installation and 5IFSFGPSF UIFZ DBO JODSFBTF TQFFE BOE Ĺ´FYJCJMJUZ PG UIF implementation of water production system by membrane PQFSBUJPO BOE BMTP DBO SFEVDF TUFQT UJNF BOE DPTU UFDIOPMPHZ NJDSPĹłMUSBUJPO UZQF IBT TUBSUFE BU "NBUB $JUZ 2. Online Metering System- Customer Service department BOE $IPO #VSJ BSFB Online Metering System is the system that Company 3. The Company has developed the program that calculates developed in order to increase effectiveness in taking care non-revenue water. The program links up with a database of water users through facilitating technologies which can of water users and it has been already registered as the be put in order as follow:

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Examples of remarkable design and innovation of the Company include: 1. The Company has implemented a Knowledge Management work system which brought about knowledge center in both theoretical and practical aspects of water production and water loss reduction. This system started from the year

51

Ä» 'PS VTJOH DVTUPNFST DBO MPHJO UP UIF &BTU 8BUFS XFCTJUF IUUQ TDBEB FBTUXBUFS DPN XJUOFTT BOE JU XJMM appear as shown below.

Ä» "GUFS MPHHJOH JO DVTUPNFST DBO DIFDL UIF BNPVOU PG XBUFS XFFLMZ BT TIPXO CFMPX

52

Äť $VTUPNFST DBO DIFDL UIF UPUBM BNPVOU PG XBUFS BOE BMTP UIF TUBUVT PG UIPTF JOWPMWFE

0OMJOF .FUFSJOH TZTUFN JODSFBTFT FGĹłDJFODZ JO UIF GPMMPXJOH Äť 5P QSPNPUF UIF VUNPTU JNQMFNFOUBUJPO PG UIF $POUSPM Center System. aspects 3. SCADA System The Company provides water pumping service using SCADA system to control the pumping of water. The Company also collects information on raw water consumption of each customer which enables the Company to monitor the use of raw water of every customer all the time.

East Water currently has total 85 SCADA stations.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Äť 8FFLMZ OPUJĹłDBUJPO VQEBUFT PG XBUFS DPOTVNQUJPO Previously, employees had to write down the meter numbers BOE EFMJWFS OPUJĹłDBUJPO TIFFUT Äť 2VJDLFS BOE NPSF VQ UP EBUF GPS DIFDLJOH XBUFS consumption. Water users and also those who involved can check hourly, weekly and monthly via the web site. It can be logged in via PCs, smart phones and tablets.

53

Diagram describing how SCADA System works.

SCADA functions consist of 2 parts as follows: 1. Main functions â&#x20AC;&#x201C; Monitoring fundamental systems including: Ä» /FX 1JQF -JOF 4$"%" 4ZTUFN Ä» *OUFHSBUFE &YJTUJOH 4$"%" 4ZTUFN Ä» *NQSPWF $PNNVOJDBUJPO Ä» /FX $POUSPM $FOUFS 3PPN Ä» 4FDVSJUZ 4ZTUFN Ä» 4$"%" 8FC

"EEJUJPOBM GVODUJPOT ı 4VQQPSUJOH PUIFS ųFMET PG XPSL including: Ļ (14 (*4 Ļ 8BUFS 3FTPVSDFT .POJUPSJOH .BOBHFNFOU Ļ 8BUFS 4VQQMZ %JTUSJCVUJPO .BOBHFNFOU Ļ )ZESBVMJD "OBMZTJT Ļ &OFSHZ .BOBHFNFOU Ļ $PTU $POUSPM

SCADA Control Center System Conceptual

54

Modernize Central Control Room

In addition, the said system will also facilitate customers with self-monitoring for their water usage, providing current and previous logs â&#x20AC;&#x201C; weekly, daily, or even hourly â&#x20AC;&#x201C; on East Waterâ&#x20AC;&#x2122;s website The Company has a plan to arrange a technical seminar on the Central Control Center Project so as to provide all customers with understanding of technological knowledge, as well as strengthening good relationships in order to advance together sustainably.

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

4. Central Control Center Project This project has been initiated in order to respond to the need of SCADA communication system enhancement, USBOTGPSNJOH JU JOUP $POUSPM $FOUFS GPS NPEFSO BOE FGĹłDJFOU 0OMJOF .FUFS BOE #JMMJOH 4ZTUFN 5IJT XJMM BMMPX DFOUSBMJ[FE BOE TUBOEBSEJ[FE EBUBCBTF BENJOJTUSBUJPO CFOFĹłUJOH UIF water resource management, distribution, and water grid management, due to its capability of storing each customerâ&#x20AC;&#x2122;s water usage data.

55

Performance Enhancement Projects with Energy Reservation Due to the fact that the Companyâ&#x20AC;&#x2122;s pumping stations consume electricity worth 20 million baht a month, which is likely to increase year by year, the Company has to come up with billing-control projects, some of which have been already initiated and reduced electricity usage. They can CF DBUFHPSJ[FE CBTFE PO UIFJS ĹłFMET PG XPSL BT GPMMPXT

5) Dok Kraiâ&#x20AC;&#x201C;Mab Ta Phut and Nong Pla Laiâ&#x20AC;&#x201C;Mab Ta Phut Pipeline Link at the Dok Krai Pumping Station Entrance Project This project is to reduce friction of raw water in the pipeline system, equalizing the average friction of raw water in both pipelines at all times, thus reducing the electricity cost BNPVOUFE BU BQQSPYJNBUFMZ CBIU B NPOUI

8BUFS 3FTPVSDF %JTUSJCVUJPO &GĹłDJFODZ &OIBODFNFOU Projects 6) Inline Booster Pump Project These projects are to enhance water pumping capability This project is to link discharge head of Nong Pla Lai 1 to by improving pumping stations or water grid, including: the suction head of overhaul pump, enabling the overhaul QVNQ UP QSPWJEF NPSF FGĹłDJFOU QVNQJOH XJUI HSFBUFS XBUFS 1) Standby-Generator Installation for Dok Krai volume while reducing electricity consumed, resulting in the decrease in electricity cost amounted at approximately Pumping Station This is a project to install two standby diesel generators, 200,000 baht a month. which help reduce electricity cost amounted at 7) Nong Pla Laiâ&#x20AC;&#x201C;Mab Ta Phut and Mab Ta Phutâ&#x20AC;&#x201C;Sattahib approximately 250,000 baht a month.

Pipeline Link at Mab Ta Phut Pumping Station Project This project is to link discharge head of Nong Pla Laiâ&#x20AC;&#x201C;Mab 2) Mab Kha Emergency Pond Project This is a project to build a pond as a water supply for the Ta Phut to the suction head of Mab Ta Phut Pumping area of Rayong province, in case of any breakdown of 4UBUJPO FOBCMJOH UIF QVNQ UP QSPWJEF NPSF FGĹłDJFOU QVNQJOH pumping stations, as well as being capable of distribute while reducing electricity consumed. water resource during on-peak period instead of activating 8) Suction System Installation for Bang Pakong pumping machines at Nong Pla Lai, thus reducing electricity Pumping Station Project cost amounted at approximately 100,000 baht a month.

This project is to install a suction system that pumps water from the bang Pakong River from the Chachoengsao pipeline, 3) Hub Bon Emergency Pond Project This is a project to build a pond as a water supply for the reducing the electricity cost amounted at approximately 1 BSFB PG $IPO #VSJ QSPWJODF JO DBTF PG BOZ CSFBLEPXO PG million baht a month (3 months a year, only when the pumping stations, as well as being capable of distribute TZTUFN DBO EJSFDUMZ QVNQT XBUFS GSPN UIF #BOH 1BLPOH water resource during on-peak period without fully activating River). pumping machines at Nong Pla Lai 1 and overhaul pump Äą 5IF QPOE XJMM CF ĹłMMFE EVSJOH OJHIUUJNF XIFO the electricity cost is lower, thus reducing cost amounted at approximately 200,000 baht a month.

4) Dok Krai Overhaul Pump Enhancement Project This is a project to reduce friction in the overhaul pump by fabricating ceramics inside the pump casting kit, as well as overhauling the pump system which is done every 5 years. The result is seen as 3% decrease of energy used for the pump, and damage-prevention.

56

3) Activating Pumps at Stations with the Lowest Electricity Cost Water distribution within Rayong area can be pumped from 9) Pump Installation and Procurement for Reservoirs 2 resources: Dok Krai Pump Station with TOD electricity Project 5IJT QSPKFDU JT UP QSPDVSF QVNQT UIBU DBO QSPWJEF TVGĹłDJFOU billing rate, and Nong Pla Lai Pump Station with TOU water volume for customersâ&#x20AC;&#x2122; usage during droughts and electricity billing rate. Therefore, Dok Krai Pump Station will BMTP QSPWJEF TVGĹłDJFOU QSFTTVSF UP QVNQ XBUFS JOUP IFBE be mainly used during daytime due to cheaper electricity tanks to directly distribute to customers, saving energy used rate, while Nong Pla Lai Pump Station will be mainly used for pumping. This reduces the electricity cost amounted at during nighttime.

BQQSPYJNBUFMZ CBIU B NPOUI NPOUIT B ZFBS only when the system cannot directly pumps water from Alternative Energy Projects Water-Cooling Air-Conditioning System Project UIF #BOH 1BLPOH 3JWFS

This project is to install water-cooling system with fan blowing past water pipes, using water coolness to lower Energy Management Projects These projects are to manage energy usage without room temperature, reducing load on the air-conditioning system. Pilot systems have been installed at overhaul pump additional expenses and can be initiated immediately. stations, resulting in reduction in cost amounted at 1) Lowering the Pool Level of Mab Kha Pumping BQQSPYJNBUFMZ CBIU B ZFBS Station Previously, the pool level must be maintained at 20 meters In addition to initiated projects mentioned above with out of the maximum pool level at 25 meters. It has now solid results, the Company also has other planned projects been lowered to around 15 meters in order to reserve which are currently under preparation, some of which are energy used for pumping, resulting in 2% decrease in energy still in very early experimenting stage and some are under study whose results will be seen in the next yearâ&#x20AC;&#x2122;s report. consumption.

InnoWAVE Project 2 *O UIF $PNQBOZ IFME B QSPKFDU DBMMFE Äś*OOP8"7& Project #2â&#x20AC;? which is further developed from The New Wave Project (EW) and Innovation Award 2012 (UU). This project is open for all group companies, focusing on free creativity, encouraging employees to present their Process Innovation with out-of-the-box and innovative thinking.

XJMM CFOFĹłU UIF $PNQBOZ 5P FYUFOE SFTVMUT JO PSEFS UP bring prized innovations to further development for the $PNQBOZ BOE 5P BEPQU OFX JOOPWBUJPOT UP FNQPXFS the Companyâ&#x20AC;&#x2122;s business development in the future.

5IF QSPKFDU DBO QPUFOUJBMMZ CFOFĹłU UIF $PNQBOZ JO UFSNT PG JNQSPWFNFOU VQPO NPSF FGĹłDJFOU QSPDFTT BT XFMM BT The projectâ&#x20AC;&#x2122;s purposes included: 1) To encourage Front product and service quality, so as to offer highest satisfaction 0GĹłDF BOE #BDL 0GĹłDF FNQMPZFFT UP FYQSFTT UIFJS DSFBUJWJUZ to customers.

GPS JOOPWBUJPOT 5P FODPVSBHF OFX JOOPWBUJPOT XIJDI

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

2) Adjusting Discharge Valves According to the Water Level Previously, the pool level must be maintained at 20. It has now been lowered to around 15 meters in order to reserve energy used for pumping, resulting in 2% decrease in energy consumption.

57

Total number of participants and entries in the Project Äť 2VBMJĹłFE FOUSJFT GSPN 'SPOU 0GĹłDF BOE GSPN Äť 5PUBM QBSUJDJQBOUT GSPN &8 BOE GSPN 66 #BDL 0GĹłDF

Äť 5PUBM FOUSJFT GSPN 'SPOU 0GĹłDF BOE GSPN #BDL 0GĹłDF

The results are as shown in the picture.

ÄąĹ&#x2013;Ĺ&#x2013;Ĺ&#x2014;ÄżĹ&#x2030;Ĺ&#x17E;Ĺ? ĸĹ&#x161;Ĺ&#x2014;Ĺ&#x2019;Ĺ?Ĺ&#x2039;Ĺ&#x153; b ÄşĹ?Ĺ&#x203A;Ĺ?Ĺ&#x201D;Ĺ&#x153;Ĺ&#x203A; 'JSTU 1SJ[F CBIU Äť -$"7 -PX $PTU "JS 7BMWF 5FBN

ĎĺġĜğ ġĎĎĹčĭ

First Runner-Up Prize: 30,000 baht Äť 5 LFZ 5 LFZ UIBU JT NPSF UIBO 5 LFZ

Honorable Mention Prizes: 15,000 baht Äť 2VJDL 'JY 1JQF 5FBN Äť (VU XSFODIJOH 1VODI 5FBN Äť 17 1& $VUUJOH %FWJDF 5FBN Äť 8BUFS .FUFS -PDL GPS .BJOUFOBODF 5FBN Äť 4FSWJDF 0OMJOF 5FBN Äť %FHSFF 4QJOOJOH 'MPBUJOH 4VDUJPO Buoy Team Äť #VMLJOH 4MVEHF 3FNPWJOH 3PCPU 5FBN

'JSTU 1SJ[F CBIU Äť "EBQUJOH "DDPVOUJOH QSPDFTT UP 'VODUJPOBM 5FBN First Runner-Up Prize: 30,000 baht Äť %% "MFSU 5FBN Honorable Mention Prizes: 15,000 baht Äť "EWBODF 1BZNFOU .POJUPS 4ZTUFN "1.4 5FBN Äť &BTZ 1BJE 5FBN Äť &OFSHZ 'JHIU 5FBN Äť $POTUSVDUJPO %PDVNFOU .BOBHFNFOU 5FBN Äť .BHJD $BMFOEBS 5FBN Äť )3 4IBSJOH 4FSWJDF 5FBN 58

ĪĊčij ġĎĎĹčĭ

59

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

5

SUSTAINABLE WATER UTILITY MANAGEMENT

PERFORMANCE

1. Business Performance Year (in Million Baht) 2010 2011 2012

2009

2013

Revenue 2,775.08 3,210.79 1SPĹłU CFGPSF ĹłOBODF DPTUT BOE JODPNF UBY 1,220.52 1,344.72 1,528.55 /FU 1SPĹłU 728.03 827.45 908.70 Cost for income distribution to stakeholders 2009 Selling Administrative Expenses Financial Institution Interest Government and local authorities taxes Costs for enhancement of quality of life and environment Shareholdersâ&#x20AC;&#x2122; dividend 8BHFT BOE &NQMPZFF #FOFĹłUT

212.97 104.77

Year (in Million Baht) 2010 2011 2012

2013

254.31 340.35 52.42 82.49 325.42 318.22

32.10 32.23 44.07 18.82 582.30 732.04 121.95 131.89 149.47 155.83 158.84

Remark: $PNQBOZ ĹłOBODJBM TUBUFNFOUT

8BUFS EJTUSJCVUJPO UP DVTUPNFST JO BT DMBTTJĹłFE CZ TFSWJDF BSFBT 169.83

Water Capacity (in million m3)

Rayong area 23.24

Service Areas

Pluakdaeng - Bowin

277.95 75.37

Chonburi Chachoengsao 60

Total

9.51

3. Non-Revenue Water (NRW)

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Average 2013

Nov

Dec

Average 2012

"WFSBHF /38 GSPN +BOVBSZ UP %FDFNCFS XBT SFNBJOJOH CFMPX UIF ,1* TUBOEBSE PG

water resource Dokkrai reservoir Nongplalai reservoir Klongyai reservoir Prasae reservoir Rayong river Chachoengsao water pump station Suanson water pump station #BOHQBLPOH SJWFS Samnakbok raw water reservoir #BOHQISB SFTFSWPJS Nongkho reservoir

pH 7.45 7.78 7.87

7.42 7.20 7.21 7.80 7.41 7.52

DO (mg/L) 5.02

4.40 4.92 4.72 4.97

5.79 5.88

Turbidity Choloride (mg/L) (NTU) 18.33

25.25

8.50 22.47

3.79 39.33

123.92

8,408.50 51.33

21.75 8.49 11.25 7.34

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

4. Summary of water quality from the companyâ&#x20AC;&#x2122;s raw water resources in 2013

61

5. Results of Information Technology system protection and safety preparation Indicators

Target

2008 0 Network break down < 2 Times/Y 0 min Down Time 0 min 0 Time System Security 0 Time 100% System Availability 100% 100% #BDLVQ 4ZTUFN %BUB 100%

IT Performance Results 2009 2010 2011 2012 2013 0 0 0 0 0 0 min 0 min 0 min 0 min 0 min 0 Time 0 Time 0 Time 0 Time 0 Time 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

SCP 0 1 min 0 Time 100% 100%

6. Personnel Output 6.1 Employee Figures

Categorized by Gender

54%

male female

98%

46%

Categorized by rank

46%

Categorized by employment

54%

Permanent employee 98%

Central region 72%

Temporary employee 2%

Eastern region 28%

72%

28%

2%

Categorized by employment (in person) Permanent employee 152 Temporary employee 3 Total 155

Categorized by rank

62

Managerial Level

6%

Supervisory Level

17%

Operational Level

77%

Categorized by region Central region Eastern region Total

Categorized by rank Managerial Level Supervisory Level Operational Level Total

(in person) 113 42 155

(in person) 9 27 119 155

6.2 Results of the companyâ&#x20AC;&#x2122;s operations on health, occupational health, environment and employeesâ&#x20AC;&#x2122; safety 3FTVMUT PG JOWFTUJHBUJPO PO UIF FOWJSPONFOU BSPVOE PQFSBUJOH BSFBT BOE UIF RVBMJUZ PG ESJOLJOH XBUFS JO UIF PGĹłDF

Parameter Formaldehyde Carbon Monoxide Carbon Dioxide Respiration Dust Temperature (0 C) /PJDF %FDJCFM E#"

Legionella Measurement of light intensity to not be lower than Measurement of volume level to not be over Measurement of heat

Control Value 3 9 1000 150 22.5-25.5 90.0 1000 pass

2010 0.29 0.1 514 < 100 25.2 85.7 ND* pass

2012 0.22 0.7 455 < 100 24.4 87.3 ND* pass

2013 <0.1 <1

<100 25 85.9 ND* pass

2014

5.3 750

23 85.3 ND* pass

90

pass

pass

pass

pass

-

pass

pass

pass

pass

Health check-up results 100% of the employees underwent a health check-up in 2013 and did not have any occupational related diseases

2. Companyâ&#x20AC;&#x2122;s operations on health, occupational health and environment

Indicators Measure the wastewater quality of the companyâ&#x20AC;&#x2122;s building PODF B ZFBS 5IF 8BUFS 2VBMJUZ .BOBHFNFOU 0GĹłDF PG #BOHLPL TFUT UIF #0% MFWFM BU OPU PWFS NH - XIJDI JT OPU CFZPOE UIF FGĹłDJFOU RVBMJUZ TUBOEBSET DBUFHPSZ # 5IF 0GĹłDFT JO 3BZPOH BOE $IBDIPFOHTBP TFUT UIF #0% level at not over than 40 mg/L.) 2. To provide properly working 1. Noise level in the workplace is not over 90 decibels and environment for employees temperature does not go above 25.5 degrees Celsius.

2. Light intensity measurement takes place once a year.

3. To provide waste disposal and Waster and hazardous waster were disposed as the laws management system according and regulations indicated to laws and regulations 4. Employees at operating areas 1. Each employee is provided with a health check-up once will be required for a health a year. check-up and check 2. The hours of safety without accidents and personal environmental-related risks and leaves (2012-2013) hearing problems 5. Death, injuries and 1. The number of people who die from accident in work occupational-related illnesses, operation personal leaves, and the number 2. The number of injured people of people who die in work 3. The number of people who face occupational-related operation illnesses

2013 Pass the standards

Pass the standards Measure once a year Record the waste disposal and classify the waste Once a year 590 , 920 hours

0 person/year 0 person/year 0 person/year

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Goals 1. To provide wastewater treatment system of the companyâ&#x20AC;&#x2122;s building to meets standards

63

6.3 Results of employeeâ&#x20AC;&#x2122;s potentials development

Numbers of training hours in 2013 (monthly) hour

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total = 7,928 hours â&#x20AC;&#x201C; average of 52.24 hours per person/year

Project planning

Management

Operating Finance and and customer service accounting

Audit

President & CEO Office

Corporation Information Business Communication Technology Development

Human President Resources & CEO

training course Pass the follow-up

5IFSF XBT B UPUBM PG FYUFSOBM USBJOJOH DPVSTFT PG XIJDI QBTTFE UIF GPMMPX VQ XPSUI Other results of human resources development 1. Total courses in the entire year were divided into two groups, as followed: Äť JOUFSOBM DPVSTFT Äť FYUFSOBM DPVSTFT Average of 2 courses per person/year 64

2. Total numbers of hours in the entire year were divided according to levels of the employees, as followed: Äť &NQMPZFFT JO UIF FYFDVUJWF MFWFM BWFSBHF PG hours per person Äť &NQMPZFFT JO UIF NBOBHFNFOU MFWFM BWFSBHF PG hours per person Äť &NQMPZFFT JO UIF PQFSBUJOH MFWFM BWFSBHF PG hours per person

6.4 Employee satisfaction results

Satisfaction

Engagement

Percentage 78.0 77.0

76.4

76.0 74.0 72.8

72.0 70.6

72.8

70.6

70.0 68.0 66.0

2010

2011

2012

2013

7. customer service output 7.1 overall results from satisfaction survey in 2013

4.07

indirect customer 3.63

direct customer 4.21

Rayong Chonburi 4.23

Chachoengsao

4.20

4.19

Satisfaction Score : Excellent (5)

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

customer

65

7.2 Services and complaints month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average

target average satisfaction rate satisfaction rate 2555 2556

4.75 4.85 4.40 4.75

5.00 4.75

4.75 4.79

4.75

4.89 4.75 4.50 5.00 4.75

5.00 4.75 4.75 4.75 4.75 5.00 4.40 4.75 4.08 5.00 4.75 4.50 5.00 4.75 4.92 4.78 4.75

TFSWJDFT XFSF SFRVFTUFE UISPVHIPVU UIF ZFBS BWFSBHFE UP Service Request and Complaint Score : Excellent (5)

8. Information on Suppliers and Tenants 8.1 Suppliers Proportion

77.6

74.2 68.0

32.0 25.8

22.4 General Approved Vendor Lists (AVL)

66

EW

UU

OVERALL

3FTVMUT PG UIF DPNQBOZÄ´T DPTU FGGFDUJWF BOE FGĹłDJFOU PQFSBUJPO Summary of completed Energy Reserve programs Detail Improvement of water distribution system 1. Installation of backup generator at Dokkrai water pump station 2. Construction of Mabkha raw water basin 3. Construction of Hub-born raw water basin 4. Water pump stations pressure enhancement project %PLLSBJ XBUFS QVNQ TUBUJPO FGĹłDJFODZ JNQSPWFNFOU QSPKFDU $POOFDUJWJUZ 1SPKFDU CFUXFFO %PLLSBJ .BCUBQVE BOE Nongplalai-Mabtapud pipelines at the entrance of Dokkrai water pump station *OMJOF #PPTUFS 1VNQ 1SPKFDU *OTUBMMBUJPO PG XBUFS QVNQJOH TZTUFN GPS #BOHQBLPOH XBUFS QVNQ TUBUJPOÄ´T DMBSJĹłFS 9. Procurement and installation of water pumps for raw water reserves Energy Management 1. Lowering of water level at Mabkha water lifting station 2. Adjustment of water control valves in accordance with water level 3. Effective operation of water pumps at stations that acquire the lowest electricity cost Total

Construction cost (Baht)

Saving cost (Baht/year)

10,000,000 25,000,000 40,000,000 2,000,000 2,000,000 3,000,000

3,000,000 1,200,000 2,400,000 1,800,000 1,080,000 720,000

32,000,000

2,400,000 3,000,000

12,000,000

3,000,000

-

720,000 720,000 720,000

132,000,000

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

Remark: 5IF 3FOFXBCMF &OFSHZ 1SPKFDU XFSF JNQMFNFOUFE CZ DVTUPNFST UP JNQSPWF BOE SFEVDF UIFJS QSPEVDUJPO DPTU

67

GRI-G4 Index

â&#x20AC;&#x153; General Standard Disclosure â&#x20AC;&#x153;

1. Provide a statement from the most senior decision-maker of the organization (such as CEO, chairman) Pages G4-1 2 Provide a statement from the most senior decision-maker of the organization (such as CEO, chairman, or equivalent senior position) about the relevance of sustainability to the organization and the organizationâ&#x20AC;&#x2122;s strategy for addressing sustainability.

G4-2 Provide a description of key impacts, risks, and opportunities.

10-11 0SHBOJ[BUJPOBM 1SPĹłMF G4-3 G4-4 G4-5 ( G4-7 G4-8 G4-9 G4-10

G4-11 G4-12 G4-13 G4-14

68

Report the name of the organization.

Report the primary brands, products, and services.

Report the location of the organizationâ&#x20AC;&#x2122;s headquarters.

Report the number of countries where the organization operates, and names of DPVOUSJFT XIFSF FJUIFS UIF PSHBOJ[BUJPO IBT TJHOJĹłDBOU PQFSBUJPOT PS UIBU BSF TQFDJĹłDBMMZ SFMFWBOU UP UIF TVTUBJOBCJMJUZ UPQJDT DPWFSFE JO UIF SFQPSU Report the nature of ownership and legal form.

Report the markets served (including geographic breakdown, sectors served, and types PG DVTUPNFST BOE CFOFĹłDJBSJFT

Report the scale of the organization - Report the total number of employees by employment contract and gender.

- Report the total number of permanent employees by employment type and gender.

- Report the total workforce by employees and supervised workers and by gender.

- Report the total workforce by region and gender.

- Report whether a substantial portion of the organizationâ&#x20AC;&#x2122;s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

3FQPSU BOZ TJHOJĹłDBOU WBSJBUJPOT JO FNQMPZNFOU OVNCFST Report the percentage of total employees covered by collective bargaining agreements.

Describe the organizationâ&#x20AC;&#x2122;s supply chain.

3FQPSU BOZ TJHOJĹłDBOU DIBOHFT EVSJOH UIF SFQPSUJOH QFSJPE SFHBSEJOH UIF PSHBOJ[BUJPOÄ´T size, structure, ownership, or its supply chain Report whether and how the precautionary approach or principle is addressed by the organization.

3 3 3 3 7

38-39 13 n/a 28

0SHBOJ[BUJPOBM 1SPĹłMF G4-15 (

List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.

List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: - Holds a position on the governance body - Participates in projects or committees - Provides substantive funding beyond routine membership dues 7JFXT NFNCFSTIJQ BT TUSBUFHJD

Pages 5, 8, 9 13

*EFOUJĹłFE .BUFSJBM "TQFDUT BOE #PVOEBSJFT

G4-18 G4-19 G4-20 G4-21 G4-22 G4-23

-JTU BMM FOUJUJFT JODMVEFE JO UIF PSHBOJ[BUJPOÄ´T DPOTPMJEBUFE ĹłOBODJBM TUBUFNFOUT PS equivalent documents 3FQPSU XIFUIFS BOZ FOUJUZ JODMVEFE JO UIF PSHBOJ[BUJPOÄ´T DPOTPMJEBUFE ĹłOBODJBM statements or equivalent documents is not covered by the report. &YQMBJO UIF QSPDFTT GPS EFĹłOJOH UIF SFQPSU DPOUFOU BOE UIF "TQFDU #PVOEBSJFT &YQMBJO IPX UIF PSHBOJ[BUJPO IBT JNQMFNFOUFE UIF 3FQPSUJOH 1SJODJQMFT GPS %FĹłOJOH Report Content.

-JTU BMM UIF NBUFSJBM "TQFDUT JEFOUJĹłFE JO UIF QSPDFTT GPS EFĹłOJOH SFQPSU DPOUFOU 'PS FBDI NBUFSJBM "TQFDU SFQPSU UIF "TQFDU #PVOEBSZ XJUIJO UIF PSHBOJ[BUJPO 'PS FBDI NBUFSJBM "TQFDU SFQPSU UIF "TQFDU #PVOEBSZ PVUTJEF UIF PSHBOJ[BUJPO Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

3FQPSU TJHOJĹłDBOU DIBOHFT GSPN QSFWJPVT SFQPSUJOH QFSJPET JO UIF 4DPQF BOE "TQFDU #PVOEBSJFT

14

14 14 14 14 n/a 14

*EFOUJĹłFE .BUFSJBM "TQFDUT BOE #PVOEBSJFT G4-24 G4-25 (

G4-27

Provide a list of stakeholder groups engaged by the organization.

3FQPSU UIF CBTJT GPS JEFOUJĹłDBUJPO BOE TFMFDUJPO PG TUBLFIPMEFST XJUI XIPN UP FOHBHF Report the organizationâ&#x20AC;&#x2122;s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any PG UIF FOHBHFNFOU XBT VOEFSUBLFO TQFDJĹłDBMMZ BT QBSU PG UIF SFQPSU QSFQBSBUJPO process.

Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

11 11

11-12

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

G4-17

69

3FQPSU 1SPĹłMF G4-28 G4-29 G4-30 G4-31 G4-32

G4-33

3FQPSUJOH QFSJPE TVDI BT ĹłTDBM PS DBMFOEBS ZFBS GPS JOGPSNBUJPO QSPWJEFE Date of most recent previous report (if any).

Reporting cycle (such as annual, biennial).

Provide the contact point for questions regarding the report or its contents.

- Report the â&#x20AC;&#x2DC;in accordanceâ&#x20AC;&#x2122; option the organization has chosen.

- Report the GRI Content Index for the chosen option (see tables below).

- Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be â&#x20AC;&#x2DC;in accordanceâ&#x20AC;&#x2122; with the Guidelines.

- Report the organizationâ&#x20AC;&#x2122;s policy and current practice with regard to seeking external assurance for the report.

- If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided.

- Report the relationship between the organization and the assurance providers.

- Report whether the highest governance body or senior executives are involved in seeking assurance for the organizationâ&#x20AC;&#x2122;s sustainability report.

Pages 14 14 14 14

14

6. Governance G4-34

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

7. Ethics and Integrity (

70

Describe the organizationâ&#x20AC;&#x2122;s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

4-5

â&#x20AC;&#x153; ÄťĹ&#x2DC;Ĺ?Ĺ&#x2039;Ĺ&#x2018;Ĺ&#x17D;Ĺ&#x2018;Ĺ&#x2039; ÄťĹ&#x153;Ĺ&#x2030;Ĺ&#x2013;Ĺ&#x152;Ĺ&#x2030;Ĺ&#x161;Ĺ&#x152; ÄŹĹ&#x2018;Ĺ&#x203A;Ĺ&#x2039;Ĺ&#x201D;Ĺ&#x2014;Ĺ&#x203A;Ĺ?Ĺ&#x161;Ĺ?Ă&#x161;Ĺ&#x2014;Ĺ&#x2013;Ĺ&#x201D;ĹĄ ÄľĹ&#x2030;Ĺ&#x153;Ĺ?Ĺ&#x161;Ĺ&#x2018;Ĺ&#x2030;Ĺ&#x201D;Ĺ&#x2018;Ĺ&#x153;ĹĄ Ĺ&#x2018;Ĺ&#x203A;Ĺ&#x203A;Ĺ?Ĺ?Ĺ&#x203A;

â&#x20AC;&#x153;

ECONOMICS Economic Performance G4-EC1 G4-EC2

Pages

Direct economic value generated and distribute 20 Financial implications and other risks and opportunities for the organizationâ&#x20AC;&#x2122;s activities due to climate change

ENVIRONMENTAL Energy ( &/ G4-EN7

Reduction of energy consumption Reductions in energy requirements of products and services

G4-EN8 G4-EN9

Total water withdrawal by source 8BUFS TPVSDFT TJHOJĹłDBOUMZ BGGFDUFE CZ XJUIESBXBM PG XBUFS

17 18

G4-EN31

Total environmental protection expenditures and investments by type

Water

Overall

Supplier Environmental Assessment Percentage of new suppliers that were screened using environmental criteria

SOCIAL Labor Practices and Decent Work Employment G4-LA1 G4-LA2

Total number and rates of new employee hires and employee turnover by age group, gender and region #FOFĹłUT QSPWJEFE UP GVMM UJNF FNQMPZFFT UIBU BSF OPU QSPWJEFE UP UFNQPSBSZ PS QBSU UJNF FNQMPZFFT CZ TJHOJĹłDBOU MPDBUJPOT PG PQFSBUJPO

Occupational Health and Safety ( -"

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Sustainable Development Report 2013 Eastern Water Resources Development and Management PLC.

G4-EN32

71

Training and Education

Pages

G4-LA9

Average hours of training per year per employee by gender, and by employee category Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

0QFSBUJPOT XJUI TJHOJĹłDBOU BDUVBM BOE QPUFOUJBM OFHBUJWF JNQBDUT PO local communities

G4-LA10 G4-LA11

42

SOCIETY Local Communities G4-SO2

PRODUCT RESPONSIBILITY Customer Health and Safety G4-PR1 G4-PR5

1FSDFOUBHF PG TJHOJĹłDBOU QSPEVDU BOE TFSWJDF DBUFHPSJFT GPS XIJDI health and safety impacts are assessed for improvement Results of surveys measuring customer satisfaction

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer date.

Customer Privacy G4-PR8

72