20180306 lpn sd2017 en by Piyanat Kimhamanon

LIVABLE COMMUNITY FOR ALL

SUSTAINABILITY REPORT 2017 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED

LIVABLE COMMUNITY FOR ALL

6 GREEN LPN SUSTAINABILITY REPORT 2017 L .P.N. DE V E LO PME NT PUB LIC CO MPANY LIMIT E D

Content • Message from Chairman • Outstanding Operational Performance in 2017 • Sustainability Awards 2017 • Vision & Mission for Sustainable Growth • LPN WAY • Sustainable Development Goals • Corporate Information

SUSTAINABLE POLICY • • • • • • •

LPN and Sustainable Development TRIPLE BOTTOM LINE 6 GREEN LPN 8 STAKEHOLDERS 10 PROCESSES Promoting Stakeholders’ Participation About This Report

IN PROCESS • GREEN ENTERPRISE • GREEN FINANCIAL MANAGEMENT • GREEN DESIGN CONCEPT • GREEN MARKETING MANAGEMENT • GREEN CONSTRUCTION PROCESS • GREEN COMMUNITY MANAGEMENT

3 4 5 6 8 10 14

17 18 19 20 21 22 24 28

32 33 48 52 58 66 76

OUT PROCESS

• •

Environmental and Social Activities of the Company Environmental and Social Activities of Lumpini Volunteer Clubs

AS PROCESS

• L.P.N. ACADEMY • SOCIAL ENTERPRISE

95 102

• • • •

106 110 115 117

Innovation for Sustainability Staff Information SDGs INDEX GRI INDEX

Message from Chairman

(G4-1)

The year 2017 was the “Year of Shift” of the organization. It was the major change in vision, policy and operation as a result of the economic slowdown in the previous year which entailed household debt problem and stringent loan approval criteria of financial institutions. The business operation of the Company was categorized into two business groups, namely, real estate development business and service business in relation to real estate. As a consequence of the above adjustment, the real estate development business started to be on track to recovery. At the same time, the service business related to real estate development of the Company gained interest and confidence from many real estate developers, particularly on community management, community services and comprehensive real estate development consultation service. The Company started providing such services to many other organizations. While economic strategies were revised and adjusted, the Company also strengthened the environmental and social operations by improving the Green Design Concept and Green Construction Process, both of which were LPN’s unique standards developed from international standard such as Leadership in Energy and Environmental Design (LEED) and Thai Green Building Standard. At the same time, Green Standard Checklist, which was formerly applied in two processes in 6 GREEN LPN Strategy, was revised to cover all the processes so that the environmental operation was supportive of and corresponded to the strategy and policy of the organization to create sustainable balance for all stakeholders in a concrete manner. The implementation will start in 2018. In addition, the Company started seeking ISO 14001 (Environmental Management System Standard) certification as well as ISO 9001 (Quality Management System Standard) certification in 2017 in order to ensure the stakeholders that the environmental and social operation of the Company was in accordance with the international standard. It was also to build confidence in the Company’s commitment to reduce environmental impacts and offer high-quality services as a responsible corporate citizen of the society. It emphasized that the Company has been operating our business in line with the Sustainable Development Goals 2030. It was expected that the Company would be certified within 2018. Amidst fierce business competition, I am well aware that being accepted by the society and customers is the crucial factor that will make LPN stand tall and continue doing good for our society. The fact that the Company hands over high-quality residences and services to the customers, operates our business in a prudent and honest manner, promotes corporate governance and takes the impacts of the operation on stakeholders into account reflects our intention to become a responsible corporate citizen. I would like to thank the executives, staff, LPN Team, Lumpini Team and all those involved for promoting the intention to adopt sustainability practices in the organization so as to create a balance between business growth and social and environmental responsibility as well as for being committed to achieve growth for all stakeholders.

(Amornsuk Noparumpa) Chairman

Outstanding Operational Performance in 2017 The gross income is

The growth of the Company is

The score of staffâ&#x20AC;&#x2122;s engagement with the organization is

= 65%

NPS in 2017 is

9,655

The net profit is

(G4-1)

million THB.

-34%.

1,062

million THB.

36%.

The Company helps create jobs for the total of 1,200 underprivileged women.

The Company manages 156 communities, comprising 122,000 families and 220,000 community members. The total space managed is 6,800,000 sq.m.

The dividend paid is

0.50* THB.

* pending approval

4 Condominium projects are handed over.

INTRODUCTION

The total of 10 projects is launched.

Sustainability Awards 2017

The Company was ranked Outstanding (5 stars) in corporate governance by the Thai Institute of Directors. The Company was granted Sustainability Report Awards 2017 (Recognition) from Thai Listed Companies Association. The Company was awarded for outstanding performance in terms of environment, social and governance aspects (ESG 100) by ThaiPat Institute for the third consecutive year.

(G4-1)

The Company received Level 4 certification from Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC). Lumpini Ville Sukhumvit 76 was granted “Outstanding Real Estate Project Award” in the category of affordable condominium from the Agency for Real Estate Affairs.

Vision & Mission for Sustainable Growth Vision 2017 - 2019 “Strike a balance in and enhance the efficiency of real estate business operation and residential development in terms of profit and responsibility towards all stakeholders to achieve sustainable development”

Mission 2017 Shareholder

Staff

Customers

Trade Partners

Turn around the business operation by striking a balance and achieving efficiency in order to generate a sound profit under corporate governance.

Provide jobs and opportunities, promote career advancement and build competitive capacity in line with the L.P.N. Way which has been cascaded from one generation to another.

Provide the opportunity of owning the first home at the affordable price, deliver product and service value to the customers, and manage customer experiences to build a confidence in “Lumpini” brand.

Jointly develop the business to generate growth and a sound profit as “business partners”.

INTRODUCTION

Neighboring Communities

Residents

Construction Workers

Environment

Be responsible for the impacts of the operation and promote participation and good relationship.

Hand over the “Real Pleasure of Living” under “Livable Community” strategy and affordable price to all residents.

Enhance the quality of life, safety and occupational health of the workers by supporting the operation of business alliances and organization of activities.

Operate the business in a responsible manner for all stakeholders in accordance with 6 GREEN LPN concept to achieve sustainable development.

LPN WAY Company. It has been developed into the organization values (LPN Values) and LPN Way with an aim to achieve the goal of the operation both in terms of quality and quantity and to drive the Company towards “Sustainable Development”.

I TY

COS LEADER T SH I CO P NT S

UAL

COST WI TH Q

C INTRODUCTION

DE SP RE

E LOPM LD T T O H O LP S TA K E E N AT E R C O O P R C RA GOVERNAN TIO N Y INTEGRIT EC

N NT

LP N WAY

D OUS EVELO U IN T A I N A B P L US

NAMIC

CORPORATE VALUES

THINKING

L ERA

C-L-A-S-S-I-C (Core Competency)

W IT H Q U A LIT Y

HU MAN C M ERV E N T R I C IN IC DE E D SPEED

LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “C-L-A-S-S-I-C” which is integrated into the operation of the Company and is adhered to by all segments of the

C L A S S I C

C – Cost with Quality The project management which realizes the importance of the careful utilization of resources and the efficiency of project management which focuses on the reduction of direct costs and hidden costs as well as the reduction of extra expenses in all departments without affecting the planned target and quality.

L - Lateral Thinking The new way of thinking that is flexible and different without any fear of obstacles in order to improve, change, develop and create new products and services. The implementation and assessment of the new process must be possible. The aim is to add value to the products and services as well as the growth of the organization.

A – Alliance The way of treating long-time and trustworthy business alliances with trust and fairness with the willingness to collaborate and develop the work continuously as if being in the same organization for the achievement of a common goal.

S – Speed with Quality The focus on the development of the working and problem-solving process that is quick and attentive to details for the quality of the work and the completion before deadline to be one step ahead of others.

S – Service Minded The care for all groups of customers at all times by putting ourselves in their shoes and showing willingness and enthusiasm to provide full services that exceed their expectations in order to add value to services and create good impression.

I – Integrity The action towards the organization and related business partners which is honest, responsible, transparent, fair and ethical at all times.

C- Collaboration The sense of collaboration from staff at all levels in the operation or activity of the Company for the achievement of the common goal.

Sustainable Development Goals

The Company has been establishing a vision to serve as a guideline for business operation for more than 15 years in order to ensure that the operation of all departments in the organization is moving towards sustainable development. Each vision is strengthened and appropriate growth target is determined to develop and drive the organization forward. The business plan and short-term goal are identified annually both in terms of values and finance to be in conformity with the mission towards all stakeholders. It is to generate a sound profit, bestow the values of the operation on the customers and be responsible for the environment and society. Regarding the vision in 2017-2019 (G4-22), it is expected to be the “Year of Shift”. The sustainable development policy and strategy of the organization is associated with the Sustainable Development Goals 2030 in order to positively impact the economy, environment and society in a more concrete manner. The Company believes that we are able to take part in the following goals: No Poverty, Good Health and Well-Being, Quality Education, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, Reduced Inequality, Sustainable Cities and Communities, Responsible Consumption and Production, Climate Action and Partnerships to achieve the goal.

1 NO POVERTY

2 ZERO HUNGER

7 AFFORDABLE AND CLEAN ENERGY

WORK INDUSTRY, REDUCED SUSTAINABLE 8 DECENT 9 10 11 AND ECONOMIC INNOVATION AND INEQUALITIES CITIES AND GROWTH INFRASTRUCTURE COMMUNITIES

13 CLIMATE ACTION

JUSTICE PARTNERSHIPS 14 LIFE 15 LIFE ON LAND 16 PEACE, 17 BELOW WATER AND STRONG FOR THE GOALS INSTITUTIONS

INTRODUCTION

HEALTH 3 GOOD 4 AND WELL-BEING

QUALITY EDUCATION

5 GENDER QUALITY

CLEAN WATER AND SANITATION

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

SDGs

1 NO POVERTY

Green Enterprise Give back to the society by supporting “social enterprises” to enhance the quality of life and dignity of underprivileged women.

Green Design Concept

Green Financial Management

Green Marketing Management

Green Construction Process

Green Community Management

Provide the opportunity to own the first home to upgrade the quality of life of the customers by developing products that serve the needs of low income earners.

2 ZERO HUNGER HEALTH 3 GOOD AND WELL-BEING

Continue collaborating with Thai Health Promotion Foundation and identify well-being as the crucial agenda of the organization. Enhance well-being and occupational safety of staff.

QUALITY EDUCATION

5 GENDER QUALITY

Enhance well-being Enhance well-being and occupational safety and safety of the of construction workers. residents in Lumpini communities. Be responsible for Develop the product possible impacts on and service standard the environment and society such as treating in line with “Livable wastewater before it is Community” concept so that all the residents discharged, ensuring the occupational safety are able to live together in harmony. and managing waste before disposal.

Develop professional knowledge, skills and attitude of staff through L.P.N. Academy. Provide educational opportunity to underprivileged women to prevent them from being exploited. Build capacity of in-house trainers to pass on the organizational knowledge and values. Share knowledge and experiences with the society by welcoming study groups from government agencies, educational institutions and private sector. Do not discriminate against gender at all levels. The income ratio between male and female staff is similar.

SDGs

Green Design Concept

Green Enterprise

WATER 6 CLEAN AND SANITATION

Conserve water by using water saving sanitary ware.

7 AFFORDABLE AND CLEAN ENERGY

Explore the possibility of using renewable energy.

Green Financial Management

Green Marketing Management

Green Construction Process

Green Community Management

Treat wastewater before it is reused or discharged.

Treat wastewater before it is reused or discharged. Run campaign to reduce water use. Reuse treated wastewater in the communities. Manage energy usage in condominium projects. Regularly organize activities to promote energy conservation. Promote carpooling in communities.

Design buildings to be energy efficient to reduce energy use.

WORK 8 DECENT AND ECONOMIC GROWTH

Create jobs, income and operational profits. Carry on anti-corruption operation.

9 INDUSTRY, INNOVATION AND INFRASTRUCTURE

Promote innovation in process, product and service as well as business model innovation.

10 REDUCED INEQUALITIES

Treat all Treat all stakeholders equally. stakeholders equally. Respect human rights and give significance to providing equal opportunity to people with disability.

11SUSTAINABLE CITIES AND COMMUNITIES

Develop large-scale model community in line with FBLES+P strategy.

INTRODUCTION

Establish appropriate target of return and profit growth of all subsidiary companies.

Promote innovation in process, product and service as well as business model innovation.

Design products that are environmentally responsible.

Treat all Treat all stakeholders equally. stakeholders equally.

Treat all stakeholders equally.

Promote the culture of â&#x20AC;&#x153;care and shareâ&#x20AC;? in Lumpini communities.

SDGs

Green Enterprise

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

Emphasize the importance of environment in all operational processes.

13 CLIMATE ACTION

Green Design Concept

Green Financial Management

Green Marketing Management

Green Construction Process

Green Community Management

Employ Building Information Modeling (B.I.M) in project design and development process for efficient use of resources.

Prevent and reduce environmental impacts from project management by following Green Construction Process Standard.

Raise environmental awareness of the residents through Green/ Clean/Lean activities.

Design environmentally friendly projects by applying Green Design Concept Standard which is in accordance with LEED’s Green Building Standard.

Develop environmentally friendly projects by applying Green Design Concept Standard which is in accordance with LEED’s Green Building Standard.

14 LIFE BELOW WATER

15 LIFE ON LAND

JUSTICE 16 PEACE, AND STRONG INSTITUTIONS

Regularly assess risks and impacts of corruption in order to prevent wrongdoings.

17 PARTNERSHIPS FOR THE GOALS

Identify this goal as one of the goals of the organization and support related activities or other organizations such as Thai Red Cross, Thai Health Promotion Foundation and Department of Health.

Corporate Information (G4-3, 5, 6)

Company Name : L.P.N. Development Public Co., Ltd. Type of Business : Listed company in the Stock Exchange of Thailand Stock Symbol : LPN Registration Date : 21 June 1989 Registered Capital : 1,475,698,768 THB Registration Number : 0107537002303 Country of Operation : Thailand Head Office : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120 Contact Number : Tel. 02-689-6888 Website : www.lpn.co.th

INTRODUCTION

Type of Business Operation and Subsidiary Companies (G4-17) Real Estate Developer

Service Provider

L.P.N. Development Public Co., Ltd. Develop residential condominium

Lumpini Property Management Co., Ltd. (LPP) Provide comprehensive community management service.

Pornsanti Co., Ltd. (PST) Develop real estate projects other than residential condominium

Lumpini Project Management Service Co., Ltd. (LPS) Provide comprehensive real estate development service. Lumpini Property Service and Care Co., Ltd. (LPC) Provide community services. Lumpini Wisdom and Solution Co., Ltd. (LWS) Provide product and service research and development services in real estate development business.

1 16

SUSTAINABLE POLICY

Sustainable Policy The philosophy of sustainable development has been compiled and refined into an internal knowledge of the organization as well as become the practice that all departments adhere to. It will be the foundation that mobilizes the organization at the policy, strategic and operational levels.

Policy The Philosophy of Sufficiency Economy

Strategy LPN PLATFORM 3-6-8-10

Operation แนวทางและผลการดำ�เนินงาน เพื่อความยั่งยืน

Foundation of Sustainable Development Based on the Philosophy of Sufficiency Economy Since the establishment of the Company, it has been operating the business in a responsible and fair manner by ensuring the balance of benefits for all related parties. The stability of the Company is achieved from internal management process along with the development of human resources. After the economic crisis in 1997, the Company focuses on the development of projects in accordance with the strategy of the organization and overall economic situation. The Company has attempted to maintain appropriate growth of the organization. In addition, the business operation of the Company has been conducted in accordance with the “Philosophy of Sufficiency Economy” of H.M. King Bhumibol as follows:

3 principles 2 conditions Knowledge

Moderation

Reasonableness

Self-Immunity

Intergrity

3 principles

2 conditions

1. Moderation

1. Knowledge

Achieve appropriate growth rate. Create sufficient profit from business operation by not exploiting or taking an advantage of customers or society. Return the profits to society

2. Reasonableness Develop residences for the lower -middle to high target group. Focus on the quality of life of the residents with the “Livable Community For All” concept. Create a balance of benefits for all stakeholders involved. Consider the impacts of the business operation in all dimensions.

Strive to be a learning organization and encourage knowledge sharing. L.P.N. Academy is the main responsible party.

2. Intergrity Identify “Integrity” as one of the significant corporate values of the organization leading to good corporate governance.

3. Self-Immunity Emphasize human resources development. Establish strategies that are suitable for all economic situations. Focus on risk management. 17

LPN and Sustainable Development PROFIT ECONOMY

PEOPLE SOCIETY

PLANET ENVIRONMENT

GREEN ENTERPRISE 1

STAFF

PROJECT LOCATION

LAND PURCHASE

GREEN DESIGN CONCEPT

ENVIRONMENT

GREEN

CUSTOMER EXPERIENCE

MARKETING MANAGEMENT

GREEN

LABORS

GREEN FINANCIAL MANAGEMENT

CUSTOMERS

SHAREHOLDERS

CONSTRUCTION PROCESS

SUPPLY CHAIN

HAND OVER

MOVE IN

NEIGHBORS

GREEN 10

COMMUNITY MANAGEMENT

10P

RESIDENTS

GREEN LPN concept which showcases the responsibility towards

groups of stakeholders from 10 property development processes.

All through 28 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. “Triple Bottom Line” framework, a measure of sustainability that includes financial, social and environmental performance measures, has been applied in the establishment of the operational goal of the Company to achieve sustainable development. It comprises “6 Green LPN” concept which showcases the responsibility towards 8 groups of stakeholders from 10 property development processes. It is also known as LPN Platform 3-6-8-10. 18

3P TRIPLE BOTTOM LINE Triple Bottom Line framework, a measure of sustainability that includes financial, social and environmental performance measures, has been applied in the establishment of the operational goal of the Company. â&#x20AC;&#x153;6 GREEN LPNâ&#x20AC;? strategy showcases the responsibility towards eight groups of stakeholders from ten property development processes in order to maintain the balance of the business operation and enhance stable growth. The ultimate goals of the three elements of our business operation are as follows:

PROFIT

PEOPLE

PLANET

ECONOMY

SOCIETY

ENVIRONMENT

The objective of the Company is to create the balance of adequate and regular profits from the operation on the basis of good corporate governance, responsibility and transparency in business operation and the consideration for profit-sharing with all stakeholders.

The Company has always been aware that high-quality and safe society is essential to business growth. The social responsibility of the Company is thus not limited to just internal personnel but also extended to external parties including trade partners, customers, residents and neighboring communities, construction workers as well as the national society at large.

The operation of the Company as a real estate developer has impacts on the society and environment on various aspects. The Company, therefore, focuses on reducing the impacts of the development of the project during the development process (in process) in terms of the project design and construction and takes care of the environment and quality of life of the residents and neighboring communities after the handover of the project.

6G 6 GREEN LPN All through the 28 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. â&#x20AC;&#x153;6 GREEN LPNâ&#x20AC;? concept is developed from our extensive experiences in property development and community management as a practice to ensure a balanced and sustainable operation for the benefit of all stakeholders. At present, 6 GREEN LPN concept is inclusive of six aspects of environmental and social responsibility as follows:

GREEN ENTERPRISE

GREEN FINANCIAL MANAGEMENT

GREEN DESIGN CONCEPT

The business operation that focuses on human resources management and human capital.

The appropriate returns and growth of the organization.

The product design that is environmentally responsible.

GREEN MARKETING MANAGEMENT

GREEN CONSTRUTION PROCESS

GREEN COMMUNITY MANAGEMENT

The marketing strategy that is fair for the consumers and competitors.

The management of environmental and social impacts from construction process.

The care for and management of the quality of life of the residents after the handover of the project.

8S 8 STAKEHOLDERS (G4-24, 25) The Company identifies the first tier stakeholders involved in various operational processes based on the assessment of the level of involvement of each group of stakeholder. The level of involvement of the stakeholders is assessed by the level of influence they have on the organization and operation along with the level of impacts from the operation of the Company in order to be able to identify the importance of each stakeholder and establish a strategy to encourage their participation. The operational framework is established and the impacts on all stakeholders are minimized to enhance sustainable development and growth. The first tier stakeholders of the Company is categorized into eight groups as follows:

SHAREHOLDERS

STAFF

CUSTOMERS

SUPPLY CHAIN

Refer to shareholders of the Company, whether they be companies, funds or individuals who are benefited from the operation that emphasizes good corporate governance and environmental and social responsibility.

Refer to those who are working for the Company and driving the operation of the Company to move forward in a sustainable manner, inclusive of staff in the operational level and managerial level.

Refer to those who are interested in the project developed by the Company and have reserved to buy and made a down payment. In the future, when the project is completed, the customers will become joint owners/ residents.

Refers to trade partners or business alliances of the Company who take part in the design and construction of projects as if they are one of the staff of the Company. The objective is to achieve the mutual goal.

NEIGHBORS

RESIDENTS

LABORS

ENVIRONMENT

Refer to those who live in the communities surrounding the projects of the Company that are under construction and are affected by the impacts from the start of the project development through to after the project is being handed over.

Refer to those who live in the project of the Company that has been handed over as customers or renters and are parts of the community taken care of by the Company.

Refer to workers of the business alliances (trade partners) that are responsible for constructing the projects of the Company, inclusive of Thai and migrant workers.

Refers to the components of sustainability that is at the foundation of all business operations. The operation of real estate development business directly impacts the environment, therefore, the Company focuses on the conservation of environment nearby the project.

10P

10 PROCESSES (G4-12)

1 The Company does not only aspire to be a “Value Organization” that gives importance on organizational management and human capital but also to take responsibility towards all stakeholders in all operational processes. Usually, the responsibility of a real estate developer comes to an end after the product or condominium units are handed over to customers. However, the Company realizes how significant it is to ensure that the quality of life of the residents of the projects developed by the Company is enhanced and taken care of as they have trust in Lumpini brand and decide to make our condominium unit their “home”. This is the beginning of the development of “Livable Community” concept which is an after-sale service offered both in terms of building management and community management. The concept has been implemented for more than 30 years. The responsibility towards all stakeholders of the Company has started from the policy level within the organization through to the ten core processes of the property development of the Company as follows:

Project Location

Land Purchase

The development concept is designed to be appropriate with the project location. The two concepts for project development are pilot project i.e. project development in new locations with minimum competition (Blue Ocean Strategy) and expanded project i.e. project development in highly successful locations where demands for residential property are high.

The decision made by the Management to buy a piece of land is based on the vision as well as information from the Research and Development Department and Marketing Department. The demand, supply and feasibility for project development are carefully studied beforehand in order to ensure that the project development is in accordance with the strategy of the organization and customers’ needs.

Customers’ Experience Management

The trust in brand is key to the management of customers’ experiences. Every touch point is operated with high standard. Various communication channels are available for customers to send feedback to the Company for improvement of services.

Construction Management

Project construction is the process that impacts the environment and society the most. The business operators should take responsibility in minimizing such impacts. The Company has initiated Q-C-S-E-S+P project management strategy as an operational standard for all those involved in the project construction process.

Design Concept

Financial Management

Sale & Marketing Management

Projects are designed in accordance with LPN Green Standard Checklist which is developed by the Company and is consistent with Green Building Standard of the U.S.’s LEED Program (The Leadership in Energy and Environment Design). The impacts on stakeholders are considered in a well-rounded fashion.

The business growth and returns for stakeholders are identified in line with the annual business plan. The construction costs and profit of each individual project is appropriately prepared. The financial statements are accurate and reliable and are prepared in a transparent and auditable manner without any hidden agendas. In addition, financial risks have always been managed.

The marketing activity of the Company is “Customer Centric” or directly focuses on the needs of the customers. The policy of the Company is to build the first home for those who do not yet own a house. It is to give something back to the society. Furthermore, the Company respects the rights of customers and keeps our promise.

Handover Management

The quality of condominium units and common area is ensured before the condominium units are handed over to customers in order to create a safe and fully-equipped “Livable Community.” Ownership transfer services are also provided to customers for their convenience.

Moving Preparation

It is important that the residents fully understand the rules and regulations of the condominium. Prior to moving in, the community management policy and direction of the Company is communicated to the residents in order to enhance peaceful co-existence in the community.

Community Management

“Livable Community Strategy” is one of the core strategies of the organization. The Company does not only manage the building but also the quality of life, society and environment and promote “togetherness, care and share” culture.

Promoting Stakeholders’ Participation

(G4-24, 26, 27)

The Company is able to identify major stakeholders who are involved in different operational processes. It is based on the assessment of the level of their involvement both in terms of their influence that affects the Company and its operation as well as the impacts from the operation of the Company. The level of importance is measured following the guidelines of the Stock Exchange of Thailand (SET), Thai Institute of Directors (IOD) and ASEAN Corporate Governance Scorecard (G4-25). The treatment, method and frequency of communication and expectation of each group of stakeholder are established as follows: Stakeholder (8S) (G4-24)

SHAREHOLDERS

SUPPLY CHAIN

STAFF

CUSTOMERS

Treatment of Stakeholder • • • •

Respect basic shareholders’ rights in accordance with the law and Articles of Association. Treat all stakeholders equally. Have a mechanism in place that will ensure shareholders that they will receive accurate information and a sound profit and dividend according to the policy of the Company. Monitor connected transactions, determine measures to prevent conflict of interest and prevent the use of internal confidential information for personal benefit.

Business alliances are trade partners of the Company. It is the network of entrepreneurs such as architects, engineers, consultants, construction companies, construction materials manufacturers, transport companies and security services providers. • Promote collaboration among “alliances” by developing LPN Team which is treated as a subsidiary company of the Company. • Offer appropriate return, do not exploit trade partners or only take into account the profit of the Company, conduct business based on fairness. • Set out clear purchasing policy. All trade partners must submit a cost proposal and the Company will select the one with fair and reasonable price and high-quality services based on the purchasing guideline of the Company. • • • • • •

Treat staff with fairness in regard to career opportunity, remuneration and appointment or transfer, all of which should correspond to the performance of each staff and business success of the Company. Establish a short-term structure of remuneration of staff which is decided from the profit of the Company and the staff’s contribution to the success of the Company each year. Consider the overall remuneration of staff based on Key Performance Indicators (KPIs). The remuneration rate must be in accordance with the market rate. The knowledge, ability, experience and performance of each staff will be taken into account, as well as equality and fairness, inflation rate and Gross Domestic Product. Offer annual bonus based on the annual performance of the Company. Provide welfares e.g. health insurance, annual medical check-up, provident fund, financial loan, financial aid in case of death of staff’s parents or spouse and fitness area. Promote work-life balance of staff and regular workplace inspection. Provide safety equipment to staff and organize fire drills.

• •

Give importance to and be responsible for all customers on a regular basis. Enhance customers’ satisfaction and confidence, develop products, be liable for the quality and standard of products as promised, improve customer service quality and maintain customer confidentiality. Establish a Call Center and Customer Experience Management Department Tel. 02-689-6888 to receive complaints.

Concern and Expectation

Method of Promoting Participation

Frequency

• Generate appropriate growth and profit. • Take environmental and social responsibilities. • Generate a balanced return for all stakeholders. • Adhere to corporate governance principles. • Manage risks. • Act against corruption. • Respect shareholders’ right. • Implement 6 GREEN LPN policy to achieve sustainable development.

• Annual Report and Sustainable Development Report • Annual General Meeting of Shareholders • Shareholders’ Newsletter • Project visit • Meeting with analysts • Meeting with Investors and Fund Managers • Project progress report

Annually

• • • • • •

Promote unity. Establish a joint business plan. Share knowledge. Generate a balanced return. Support organizational development process of trade partners. Build environmental and social awareness to mutually achieve growth and development.

• Business Alliances Meeting • Training and knowledge sharing • Relationship building activities

Monthly Monthly Quarterly

• • • • • •

Promote work-life balance. Promote learning and career advancement. Promote “Livable Organization” concept and happiness at work. Build capacity and promote organization values. Provide appropriate remuneration and welfare. Promote equality and basic rights.

• • • • • • • • •

Happiness at Work Survey L.P.N. Academy Activities promoting participation Staff Relations Team Performance Evaluation Internet website and email Executive Knowledge Sharing Welfare Committee WhatsApp/Line@

Quarterly Regularly Regularly Ad Hoc Half-yearly Regularly Regularly Ad Hoc Daily

• • • •

Build affordable home with appropriate and fair price. Promote product and service value and brand’s credibility. Enhance customers’ satisfaction and manage complaints. Respect consumers’ rights.

• • • • • • • • •

Call Center Various activities Satisfaction Survey Lumpini Family Day Touch Point Customer Experience Management Market Research www.lpn.co.th Line@

Daily Ad Hoc Regularly Annually Regularly Regularly Regularly Regularly Regularly

Annually Quarterly Annually Quarterly Regularly Regularly

Stakeholder (8S) (G4-24)

Treatment of Stakeholder • Enhance the quality of life and build good relationship with residents through various activities on a regular basis.

RESIDENTS

LABORS

•

Enhance the quality of life of construction workers and provide necessities of life such as food and sanitation. Accommodation of construction workers in construction sites is inspected to ensure the cleanliness and tidiness of the site and provide assistance if needs be. Various activities are regularly organized, for example, - Provision of free haircut and lunch to construction workers. - Drug test - Monitoring the amount of waste at the site for proper waste management. - First aid training and training on medicine use. - Annual medical check-up and vaccination.

• Monitor the environmental quality in construction sites. • Manage wastewater and waste in Lumpini communities.

NEIGHBORS

ENVIRONMENT

• Establish a clear policy and guideline to build awareness of staff, trade partners and communities managed by the Company. • Appoint a Corporate Environmental and Social Responsibility Committee to monitor the operation and ensure that it is in line with the policy. A Charter is to be established. Crucial operational processes are to be supervised by high-ranking executives. • Apply the Triple Bottom Line (3P- Profit, Planet, People) approach in the operation, establish 3-6-8-10 guideline i.e. 6 GREEN LPN, 8 Stakeholders, 10 Processes and emphasize CESR In Process. The concept of 6 GREEN LPN includes the six areas of environmental and social responsibilities as follows: 1. Green Enterprise 2. Green Design Concept 3. Green Financial Management 4. Green Marketing Management 5. Green Construction Process 6. Green Community Management • Regularly organize CESR Out Process activities.

Concern and Expectation • • • • • • •

Method of Promoting Participation

Frequency

Promote product and service value. Enhance customers’ satisfaction and manage complaints. Respect consumers’ rights. Promote “care and share” culture. Promote participation in CESR activities. Promote learning among youth residents. Provide an opportunity for the residents to decide the guidelines for management of community.

• • • • • • • • • • • •

Annual General Meeting of Joint Owners Mobile App Call Center Various activities Satisfaction Survey Lumpini Family Day Chairman of Juristic Persons Seminar Touch Point Customer Experience Management Market Research www.lpn.co.th Line@

Annually Regularly Daily Ad Hoc Regularly Annually Annually Regularly Regularly Regularly Regularly Regularly

• Ensure safety at work. • Enhance the quality of life and sanitation of construction workers. • Offer standard remuneration rate and respect basic rights. • Treat all workers equally.

• • •

QCSES+P Activities promoting the quality of life of construction workers Medical check-up

Daily Ad Hoc

• • • •

• • • • • •

Public Hearing Visiting, Meeting, Discussing Increase of Green Space Space Improvement Sustainable Project Design Suggestion Box

Ad Hoc Daily Regularly Regularly Regularly Weekly

• 6 GREEN LPN • LPN Green Signature Project • QCSES+P

Regularly Ad Hoc Regularly

Minimize noise, dust and impacts from construction. Be open to suggestions. Comply with the Environmental Impact Assessment Report. Take sustainability of the neighboring area into consideration in project design.

• Minimize construction impacts. • Campaign for waste segregation in communities managed by the Company. • Promote energy conservation. • Use resources efficiently. • Promote sustainable project design. • Raise CESR awareness in communities managed by the Company. • Create jobs and enhance quality of life of underprivileged women. • Share knowledge with other organizations via L.P.N. Academy.

Annually

About This Report Report Preparation Guideline (G4-28, 29, 30) Sustainable Development Report 2017 is the fourth sustainable development report of L.P.N. Development Public Co., Ltd. The first one was published in 2014 to monitor and disclose the information on the positive and negative impacts of the operation of the organization on the economy, environment and society. It also aims to disseminate the concept of business operation of the Company which is based on sustainable development as well as the philosophy of sufficiency economy i.e. moderation, reasonableness and self-immunity as reflected in 6 GREEN LPN management concept. The information included in the Report is compiled between 1 January and 31 December 2017. The preparation of the content of the Report, particularly the general information of the organization, management guideline and operational key performance indicators, is in conformity with the Global Report Initiative (GRI) Construction and Real Estate Sector Disclosure (G4-23) version G4, using â&#x20AC;&#x153;Coreâ&#x20AC;? option (G4-32). The initiative of linking the business operation of the organization to Sustainable Development Goals 2030 (SDG2030) is also presented in this Report.

Defining Report Content and Boundary (G4-18) The reporting framework and content is defined mainly upon the significance and benefit of the content. Material sustainability aspect is assessed along with sustainability context, stakeholder inclusiveness and completeness of the content in accordance with GRI Sustainability Reporting Guidelines.

Topics

Aspects

Disclosures on Management Approach

STEP 1 IDENTIFICATION

STEP 2 PRIORITIZATION

Materiality

Sustainability Context

STEP 3 VALIDATION

Completeness

Stakeholder Inclusiveness STEP 4 Review

Sustainability Context

Indicators

Stakeholder Inclusiveness

Report

Step

Identifying Sustainability Topics

Step

Prioritizing Material Aspects

Step

Validating Material Aspects

Step

Reviewing

A number of sustainability topics have been identified in the Sustainability Report 2017, all of which are relevant to real estate development and construction industry and substantively influence the expectation, assessment and decision of stakeholders on the organization’s responsible operation. Sustainability aspects will be assessed following the GRI Sustainability Reporting Guidelines.

After defining the topics relevant to the operation on sustainability of the Company, the working group prioritized the topics based on the influence on stakeholders’ assessments and decisions as well as the significance of economic, environmental and social impacts in order to determine the “materiality” of the report.

The working group proposed the sustainability topics to the Chairman of the Board of Directors, the highest-ranking executive of the organization, for endorsement so as to ensure that such topics are inclusive of possible impacts of the Company’s operation and are of importance to each group of stakeholders. The topics will be used as a guideline for the planning of sustainable operation and preparation of the Sustainability Report. The materiality of the report is identified and shown in the diagram on prioritizing materiality aspects.

The Company made use of the feedback of the stakeholders on the Sustainability Report 2016 to develop the Sustainability Report 2017. The contents are reviewed whether they are relevant to the sustainability topic of the organization so that the operation of the Company achieves sustainable development goals that are most relevant and significant to the organization. In addition, the feedback is used to determine the direction of socially responsible operation of the organization in the next phase. In 2017, stakeholders are able to send their feedback and suggestions on sustainable and responsible operation through a number of channels provided by the Company as well as the attached questionnaire.

L.P.N.’s Materiality Matrix

(G4-19)

Prioritized Issues of Stakeholders

Dissemination Channels High

Medium

7 8 9

Low Low

Medium

High

Issues with Significant Impacts on the Economy, Environment and Society 1 Resources management 2 3 4 5 6 7 8 9 10 11 12

• Website: http://www.lpn.co.th: “Sustainability Report” in “Good Corporate Governance” under “Investor Relations” • 3,000 printed copies (Thai version) and 30 printed copies (English version) • 16,000 CDs

(material, energy, water, and effluence & waste) Stakeholders grievance mechanism Employment, training and education, and occupational health and safety Customer health and safety Supplier human rights practices Marketing communication and dissemination of information to customers Economic performance Anti-corruption Local community and social grievance mechanism Diversity and equal opportunity Equal remuneration between men and women Market presence

Contact Person for the Preparation of Sustainability Report and Sustainable Operation (G4-31) Ms. Monnaphat Suphakitchanusan Brand Development Department, Brand Management Division L.P.N. Development Public Co., Ltd. 1168/109 Lumpini Tower, 36th Floor, Rama 4 Road, Thung Maha Mek, Sathorn, Bangkok 10120 Tel : 02-285-5011-6 Email : bnd@lpn.co.th Fax : 02-285-5017

Anti-corruption

Local Community, Social Grievance Mechanism

Anti-corruption

Local Community

DECENT WORK AND ECONOMIC GROWTH

GENDER QUALITY

GOOD HEALTH AND WELL-BEING

PEACE, JUSTICE AND STRONG INSTITUTIONS

DECENT WORK AND ECONOMIC GROWTH

GOOD HEALTH AND WELL-BEING

NO POVERTY

REDUCED INEQALITIES

SUSTAINABLE CITIES AND COMMUNITIES

INDUSTRY, INNOVATION AND INFRASTRUCTURE

RESPONSIBLE CONSUMPTION AND PRODUCTION

INDUSTRY, INNOVATION AND INFRASTRUCTURE

GOOD HEALTH AND WELL-BEING

DECENT WORK AND ECONOMIC GROWTH

AFFORDABLE AND CLEAN ENERGY

PARTNERSHIPS FOR THE GOALS

SUSTAINABLE CITIES AND COMMUNITIES

QUALITY EDUCATION

REDUCED INEQALITIES

CLIMATE ACTION

SDG2030

DECENT WORK AND ECONOMIC GROWTH

PARTNERSHIPS FOR THE GOALS

LPN PST LWS LPS LPP LPC

Newly Projects Projects Constructed Managed Demolished Projects or Rented or Out Redeveloped

Project 1

Reporting Framework Internal (G4-20) Business Operated by

Note: 1 Referring to the stages of product lifecycle in Construction and Real Estate Sector Supplement of Global Reporting Initiative (GRI).

Market Presence

Economic Performance

Market Presence

Product and Service Labelling, Marketing Communication

Marketing Communication

Supplier Human Rights Practices

Equal Remuneration for Women and Men

Customer Health and Safety

Equal Remuneration for Women and Men

Employment, Training and Education, and Occupational Health and Safety

GENDER QUALITY

Stakeholders Grievance Mechanism

CLEAN WATER AND SANITATION

Diversity and Equal Opportunity Diversity and Equal Opportunity

Material, Energy, Water, and Effluence & Waste

Global Reporting Initiative

Resources Management

LPN

Sustainability Topic

Reporting Framework

Shareholders

Staff and Workers

Environment and Neighboring Communities

Shareholders

Customers and Residents

Trade Partners and Workers

Residents

Staff and Workers

Environment, Trade Partners, Neighboring Communities, Residents Environment, Staff, Workers, Trade Partners, Customers, Neighboring Communities, Residents, Shareholders

External (G4-21)

2 32

In Process

GREEN ENTERPRISE The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital

Sustainability Management GREEN ENTERPRISE

1. Appropriate Growth and Profit In accordance with sustainable policy of the organization, the Company has developed the management guideline and strategy by establishing appropriate growth and profit target to achieve sustainable and substantial return.

2. Affordable House The Company has applied the sufficiency economy philosophy of His Majesty King Bhumibol Adulyadej to the business operation that gives importance to the management for sustainability and the management of human capital. It is the starting point of the operational process under 6 GREEN LPN concept which focuses on sustainable development. The corporate policy is established in order for the Company to become a “value organization”. The two components of the policy are as follows: 1. Sustainability Management 2. Human Capital Management

Adhering to sufficiency economy philosophy which promotes social well-being, the Company has developed affordable home at an appropriate price as well as created a great quality of life for lower-middle income earners.

3. Good Quality of Life in Great Culture Apart from developing residential condominiums, the Company also enhances the quality of life of all members of the community. The projects are equipped with convenient facilities and safety systems. More importantly, “care and share” culture is promoted through various activities to raise awareness of a harmonious community.

4. Balanced Profit for Stakeholders The Company focuses on long-term growth which is consistent with the governance and sustainability principles. There is a policy to generate various forms of profits for all stakeholders in a balanced and appropriate manner.

5. Risk Management and Corporate Governance

7. Environmental and Social Awareness and Responsibility All aspects of risks are managed to be under control and the returns are determined upon the competitive situation and performance of the Company. Risks are reduced by reserving fund to maintain the liquidity of the Company. All of the above are done in a responsible, transparent and auditable manner in accordance with sustainability principles. The Company does not exploit others or focuses only on profit.

6. Anti-Corruption The Company is against all forms of corruption, whether it be internal or external, by establishing concise operational process to reduce risks, communicating the importance of anti-corruption policy to employees, identifying integrity as one of the values of the organization, declaring the intention against corruption, complying with law and regulations and paying taxes.

The Company takes responsibility for the operational impacts and promotes environmental and social awareness and responsibility by promoting integrity in the organization and encouraging participation in the society through various environmental and social activities.

8. Giving Back to the Society The Company takes part in building a great society by establishing and supporting the operation of a “social enterprise”. We create job opportunities, income and dignity for underprivileged women and share knowledge and experiences with other organizations.

Management of Human Capital

1. Corporate Value (G4-56)

The Company puts emphasis on the development of human resources to carry on the success of the Company. LPN Way is developed from the core competency of staff to be the guideline that will promote the sustainability in the management of human resources in an integrated manner, to build the identity of the organization and be the operational standard. LPN Way comprises two milestone values i.e. “continuous development” and “respect for stakeholders”. The seven components of the values are “C-L-A-S-S-I-C” as follows:

• Continuous Development

CCost with Quality LLateral Thinking

is the project management that realizes the importance of the careful utilization of resources and the efficiency of project management which focuses on the reduction of direct costs and hidden costs as well as the reduction of extra expenses in all departments. is the new way of thinking that is flexible and different without any fear of obstacles in order to improve, change, develop and create new products and services. The implementation and assessment of the new process must be facilitated. The aim is to add value to the products and services as well as the growth of the organization.

AAlliance

is the way of treating long-time and trustworthy business alliances with trust and fairness with the willingness to collaborate and develop the work continuously as if being in the same organization for the achievement of the common goal.

SSpeed with Quality

is the commitment to achieve the target before the deadline while maintaining the quality of the operation. The operational process has always been improved to seek the process that is least time-consuming and increase the efficiency of the operation.

ENTERPRISE

STRATEGY OPERATION

â&#x20AC;˘ Respect for Stakeholders

SService Mindedness

is the care for all groups of stakeholders at all times by putting ourselves in their shoes and showing willingness and enthusiasm to provide full services that exceed their expectations in order to add value to the services and create good impression.

IIntegrity

is the action towards the organization and related business partners which is honest, responsible, transparent, fair and ethical.

CCollaboration

is the sense of collaboration, commitment, responsibility and kindness of all staff in the organization and the volunteer spirit and awareness on sharing for the achievement of the common goal.

Core Competency

C - Cost with Quality L - Lateral Thinking A - Alliance S - Speed with Quality S - Service Mindedness I - Integrity C - Collaboration

Corporate Value Cost Leadership Dynamic LPN TEAM

Human Centric

Corporate Governance ONE LPN

2. Livable Organization The concept of the management of human capital of the Company is based on the enhancement of happiness through the six factors at work by continuously developing the quality of staff, promoting exchanges of experiences and knowledge in order to become a learning organization and developing the operation guideline under the culture and values of the organization (LPN Way).

â&#x20AC;˘ 6 Factors of Livable Organization

Staff

Work

Workplace

Enhance the happiness of staff by organizing internal activities to build good relationship between executives and staff in all departments and promoting participation in various activities e.g. the activities within the organization and environmental activities to raise awareness about doing good deeds.

Regularly improve the efficiency of the operation to increase the efficiency of the operational process and encourage staff to develop process innovation at work.

Arrange appropriate working environment and atmosphere and promote occupational health and safety of staff.

Remuneration

Career Opportunity

Pride in the Organization

Provide appropriate, equal and fair benefits and remuneration and enhances the quality of life of staff by promoting work-life balance.

Provide opportunity for career advancement and signifying career path for staff in all levels equally, whether they be male or female staff as well as build their capacity via trainings.

Build the reputation of the Company by adhering to the principles of good corporate governance, respecting human rights and operating the business in a transparent manner so that the staff can take pride in being a part of the organization.

ENTERPRISE

STRATEGY OPERATION

3. Learning and Growth With the commitment to develop the organization towards sustainability, the Company has established L.P.N. Academy to develop the capacity of staff to be able to support the business expansion and carry on the values and culture of the organization in accordance with the LPN Way via training courses and curriculums. It is also aimed to transfer the knowledge to external organizations in the future.

4. Work-Life Balance The Company takes care of the quality of life of staff and encourages them not to over work and to spend time with their family. The Company sets appropriate working hours per week and encourages all staff to take annual leave.

GREEN ENTERPRISE

OPERATION

Revision of Risk Management Policy and Internal Control (G4-14) Risk management policy and guideline of the Company have regularly been reviewed at the organizational level in order for the policy and guideline to be in accordance with the current circumstances. Both internal and external factors as well as possibility of impacts are considered so that the risk is reduced to be at the acceptable level. The Audit Committee is responsible for proposing risk management guidelines and providing recommendations to the Risk Management Committee and ensuring that the risk management is consistent with and supportive of the strategy of the organization. Furthermore, the Company reviews and revises the internal control system together with the auditors on a quarterly basis. The issues including the operation, use of resources, maintenance of assets, prevention or minimization of damages or corruption, credibility of financial reports and compliance with rules and regulations are examined so that the internal control of the organization is suitable and sufficient for the benefit of the stakeholders. With regards to environmental and social responsibilities, the Company stresses the importance of the assessment of possible impacts and risks on a regular basis as real estate development entails environmental impact at a very large degree. The risk on the awareness of environmental and social impacts of business is also included in the organization risks to ensure that the operation of the organization is of high standard.

ENTERPRISE

STRATEGY OPERATION

Management Structure and Corporate Governance The Board of Directors focuses on good corporate governance as it helps develop business competitive ability of the Company. The importance is given on the management which bases on honesty, integrity, virtue and ethics, all of which are crucial factors contributing to transparent, efficient, effective and stable operation as well as sustainable growth of the Company. It also adds economic value to the operation and builds confidence of shareholders, investors and stakeholders. The core corporate governance principles of the Company and subsidiary companies in which the Company is holding more than 90% of shares are as follows: 1) Treating all shareholders and stakeholders equally and fairly. 2) Dedicating to the Company and performing duties with caution and transparency for the highest benefits of the organization, shareholders, investors and all stakeholders. 3) Establishing the Code of Conduct for the Board of Directors and staff as a principle and guideline for compliance with the corporate governance. The Management structure of the Company in 2017 comprises six subcommittees as follows: 1. Board of Directors

2. Audit Committee

3. Executive Committee

4. Nomination, Remuneration and Good Corporate Governance Committee

5. Risk Management Committee

6. Corporate Environmental and Social Responsibility Committee

The authority of each committee has clearly been identified and separated. Each committee will consider and approve significant issues that are within the scope of their responsibility and propose to the Board of Directors for consideration or acknowledgement. It is to create a balance of power, transparency and fairness for all those involved.

Organization Structure Board of Directors Audit Committee

Nomination, Remuneration and Good corporate Governance Committee

Risk Management Committee

Corporate Environmental and Social Responsibility Committee

Internal Audit Office

Compliance Unit

Executive Committee

L.P.N. Academy

Business Development Office

Human Resources Management Office

Reseach Office Managing Director

Management Information System Office

Deputy / Assistant Managing Director Financial Management Division Financial Management Department Accounting Management Department

Brand Management Division Corporate Communication Management Department Customer Experience Management Department Social and Environmental Management Department

Sales Management Division Sales Management Department 1 Sales Management Department 2 Sales Management Department 3

Back Office Management Division Directorâ&#x20AC;&#x2122;s Office Legal Genaral Affair Department

Anti-Corruption Anti-Corruption Policy (G4-56) As a property developer that must involve with various government agencies, the Company has established the anti-corruption policy indicating that all processes of the operation must be strictly in compliance with law. Compliance Risk is incorporated into the business plan and transactions with government agencies are regularly monitored. Furthermore, all staff are required to strictly comply wtih law, Code of Conduct of the Company and Anti-Corruption Policy so as to promote responsibility and integrity of staff. Integrity is identified as one of the core values of staff as well. All staff must be informed of the anti-corruption policy and guidelines and are trained on core values of the organization.

Monitoring and Assessment of Compliance with Anti-Corruption Policy (G4-57, 58) The Company has encouraged staff to conform to anti-corruption policy through various means such as trainings for all levels of staff and orientation for new staff. After being trained, the knowledge of staff will be tested. In addition, the Company has evaluated the performance of staff, assessed corruption risks and revised anti-corruption measures on a regular basis. The policy has continuously been communicated to various groups of stakeholders to prevent an internal misconduct. It is indicated in the anti-corruption policy that all staff must not ignore or neglect any corruption conditions involved directly with the Company. The anti-corruption tool and guideline is disseminated to all staff to minimize the opportunity for corruption. Staff can notify the act of corruption or misconduct to the Company through various complaint channels.

Complaints from Staff and Actions Taken (G4-58, G4-LA16) The Policy on Protection for Employees Who Inform on or Disclose of Wrongful Conduct or Non-Compliance with Laws and the Code of Conduct or Whistleblower Policy has been established to receive complaints from staff and ensure that the information of the informant/complainant is kept confidential to protect the identity of the complainant. Complaints or suggestions on the operation of the Company can be submitted via various channels as follows:

1. Directly inform the Chief Executive Officer. 2. Send a message to the Chief Executive Officer on WhatsApp. 3. Submit complaints/suggestions via the special P.O. Box no. 21. 4. Submit complaints/suggestions via the Suggestion Box. 5. Provide information in the evaluation form for the relationship with organization. 6. Contact Organization Development Section, Human Resources Management Department.

ENTERPRISE

STRATEGY OPERATION

Risk Assessment for Prevention of Corruption (G4-SO3) The Company participates in Private Sector Collective Action Coalition Against Corruption and is recently certified at Level 4. The confidence is thus built as it is independently certified by external organization. Risks are assessed in order to prevent corruption in all operational processes. The assessment is categorized into four phases of project development as follows:

Purchase of land

it is found that the opportunity is low.

2 Preparation

it is found that the opportunity is medium.

it is found that the opportunity is low.

for construction

Construction and project development

4 Request for building use/

condominium registration/ handover of condominium unit and common area

it is found that the opportunity is high.

The Internal Control Department has applied the outcome of risk assessment in the preparation of the operational guideline and plan to prevent corruption in all operational processes.

Communicating Anti-Corruption Policy (G4-SO4) All staff must be aware of and strictly comply with anti-corruption policy of the organization. Therefore, it is included in the orientation of new staff and announced in a written format through different channels such as trainings, online and notice board.

Handling Corruption Cases

(G4-SO5)

In case of wrongdoing, appropriate action and punishment are in place. In 2017, there are nine cases of termination of employment as a result of gross misconduct as follows:

Misconduct towards employer or intent to cause damage : 7 cases

7 cases

1 case

Falsification of time card (recording working hours in a place that is not a workplace) : 1 case

1 case

Falsification of time card (recording working hours for other staff) : 1 case

Supply Chain Management Getting through the economic crisis in 1997 does not only help develop the identity and values of the organization but such difficult experiences have also urged the Company to give importance to sustainable growth in parallel with risk management, both of which are key to the operation of all departments. The supply chain of the Company has also been strengthened. As a result of the collaboration during tough times, the “trade partners” of the Company have become our “business alliances” who support the operation of each other and trust each other. The relationship has been developed further and they have finally become “LPN Team” and share common development goal with the Company. From more than 20 years of collaboration, the operation of the Company and “LPN Team” has been merged into one. All the operational processes are performed to achieve the ultimate goal of supply chain management of the organization which is to achieve mutual development and growth.

The supply chain management process of the Company is as follows:

UNICA T MM O

IM EN

SESS AS

MMUNICA CO

MEA SU RE

COMMIT

1. Identify annual operational goal. After the business plan is finalized, the meeting among high-ranking executives of more than 30 companies in the LPN Team will be organized for them to discuss the work plan and collaboration in order to achieve the expected outcomes of that year. 2. Identify any challenges of working together and develop a risk management plan. 3. Encourage participation of each party in the development of each project. 4 Operate in accordance with the established work plan. 5. Organize a monthly meeting to follow-up the work, assess the performance and analyze problems to improve or adjust the operational plan as appropriate. This will help increase the efficiency of the operation in the supply chain.

Furthermore, the Company and LPN Team will communicate with each other in a two-way manner via WhatsApp so that all participated parties are able to share ideas and learning to generate utmost operational efficiency.

ENTERPRISE

STRATEGY OPERATION

The development and training of LPN Team Knowledge sharings and transfer both in terms of the operation and organization management is another method used to facilitate mutual and sustainable growth of the Company and LPN Team. Trainings, seminars and study tour are thus organized by L.P.N. Academy to build capacity and knowledge of LPN Team. In addition, LPN Team is encouraged to come up with new innovations to enhance the implementation of Q-C-S-E-S+P strategy.

Supply chain risk management When establishing the operational target, risks must be taken into consideration and discussed with LPN Team as some companies may not have the capacity to achieve the operational target. The communication between LPN Team and the Company and among members of LPN Team themselves is also crucial. It ensures that the business is operated in the same direction and that the supply chain is efficient. Moreover, the society nowadays has become more aware of environmental impacts from the project development. The reputation of the Company could be destroyed as a result of the operation of LPN Team. Therefore, the Company, as a client, has cascaded the concept of environmental and social responsibility to LPN Team to raise awareness and encourage their participation in environmentally and socially responsible operation. The operational standard of both project design and project management is established, implemented and closely monitored.

Employment Recruitment and Resignation Recruitment of staff is the starting point of the development of the organization. As a consequence, the efficient recruitment procedure comprising a test specifically designed for each position and the interview is needed to recruit the most qualified candidate for the position. In 2017, the total of 543 staff are recruited and 423 staff resigned.

â&#x20AC;˘ Recruitment and Resignation of Staff in 2017

(G4-LA1)

Number of New Staff (Person)

Quarter 1 2 3 4

Number of Resigning Staff (Person)

Male

Female

Total

Male

Female

Total

54 71 55 42

83 81 101 56

137 152 156 98

43 39 36 38

71 79 60 57

114 118 96 95

Total

543

Total

Recruitment of New Staff and Resigned Staff by Gender, Age and Region Recruitment of New Staff and Resigning Staff by Gender

Recruitment of New Staff and Resigning Staff by Age

Recruitment of New Staff and Resigning Staff by Region

No. of Staff (Persons)

450 400 350 300 250 200 150 100 50 0

500 450 400 350 300 250 200 150 100 50 0

321 267 222 156

Male

Female

Gender

429

286

110 125 4 12

<30

30-50

>50

Age (Years)

423

(G4-LA1, G4-LA12) Newly recruited

Resigned

486 388

22 11

12 6

Bangkok Nonthaburi Patumtani

3 4

19 11

Samut prakarn

Pattaya/ Udornthani Chonburi

0 0

The Company employs

1 3 Cha-am

41 persons with disability, equivalent of 1.19% which is higher than the legally required ratio (100 staff per one staff with disability).

ENTERPRISE

STRATEGY OPERATION

Region

• Information on Maternity Leave and Returning to Work in 2017

(G4-LA3)

10.25% Resigned

(4 Persons)

82.05%

Took Maternity Leave persons

7.7%

Returned to Work

(32 Persons)

Currently On Maternity Leave

(3 Persons)

Regarding maternity leave, female staff is entitled to a maternity of three months as required by law. In 2017, 39 female staff took maternity leave, 32 of which returned to work while 4 offered their resignation.

Staff Care The Company established the Welfare Committee to promote welfare of staff and fairness in the workplace. The elected 28 members of the Committee account for 0.81% of all staff. The term of office is two years. The Welfare Committee acts as the middle person between staff and employers and helps minimize conflicts. Bilateral activities are organized to promote labor relations. Staff are also given opportunities to make suggestions to employers. All through the year, 20 staff were injured and nine were absent for more than three consecutive days. There were no work-related fatality or occupational disease.

• Injury Rate, Absentee Rate, Fatality Rate and Occupational Disease Rate by Gender and Region in 2017 (G4-LA5, G4-LA6) Number of Staff (Person)

Injured

Deceased

Absent for More Than Three Consecutive Days

• Accident Statics (G4-LA6) Injury and occupational disease Injury Absence from duty Death

Gender

Region

Male

Female

4 2 0

16 7 0

Bangkok Pattaya 15 8 0

5 1 0

Remuneration and Staff Welfare (G4-LA2, G4-LA7, G4-LA13) 1. Remuneration

2. Staff Welfare

The minimum wage paid by the Company is 330 THB per day which is 10% higher than the legally required rate (300 THB). Other remunerations are also allocated as appropriate.

Annual medical check-up is the welfare provided to staff at St. Louise Hospital. In 2017, the total of 1,201 staff participated in the medical check-up and it was found that the check-up result of 19% of staff was normal. At the same time, some items in the check-up result of 81% of staff appeared to be higher than normal. The details are shown in the table below.

â&#x20AC;˘ Medical Check-Up Result in 2017 Check-Up Result Normal High blood pressure High blood glucose level BMI (Obese) High blood cholesterol level

Number of Staff (Person)

% (2017)

% (2016)

235 44 191 121 610

19 4 16 10 51

16 8 15 10 51

1,201

100

In comparison with the check-up result in 2016, it is found that the number of staff with high blood glucose level is 1% higher while the result in other categories is lower. Moreover, the Company invites a medical doctor to provide medical advice to staff every Thursday from 13.00-16.00h. Staff can bring their medical check-up result to consult with the doctor free of charge.

235

Persons Normal

cholesterol

44 Persons

610

Persons

High blood cholesterol level

Medical Check-Up Result in 2017

High blood pressure

191

Persons

High blood glucose level

121 Persons BMI (Obese)

ENTERPRISE

STRATEGY OPERATION

Every Thursday from 13.00 - 16.00h.

Staff can bring their medical check-up result to consult with the doctor fee of charge In 2017, a medical check-up is provided to

1,201 staff

• Result of the Assessment of Engagement and Happiness at Work via Six Factors

Engagement of Staff : Average score in 2017

= 65%

Increased from the average score in 2016

Happiness at Work via Six Factors (Livable Workplace) : Average score in 2017

= 78%

2017

65%

2017

78%

2016

64%

2016

77%

2015

64%

2015

77%

2014

59%

2014

75%

Increased from the average score in 2016

Respect for Human Rights of the Underprivileged The Company is committed to achieve equal treatment of all staff since it is believed that both staff and staff with disability are capable of performing their duties at their best. The Company organizes trainings and activities to create value and develop capacity of all staff. The activities to promote human rights in 2017 are organized as follows:

• Change the employment status from temporary to permanent. • Support the organization of monthly meeting of staff with disability. • Organize sign language training by specialists. • Support voluntary activities to provide assistance to communities or families in need. • Support activities organized to make traditional wooden funeral flowers for ceremonies marking the cremation of His Majesty the late King Bhumibol Adulyadej. • Support the organization of massage sessions for staff. • Encourage staff with disability to try out for national lawn bowls team and Bangkok’s table tennis team. • Support the organization of activities of staff with disability, for example, voluntary activity and massage sessions.

GREEN FINANCIAL MANAGEMENT The Strategy to Achieve Appropriate Return and Organization Growth

GREEN FINANCIAL MANAGEMENT

Green Financial Management is the management of finance with the objective of achieving sustainable business growth, appropriate and continuous growth of profit and balanced allocation of profit among all stakeholders. The financial ratio and expenses of the Company and subsidiary companies are properly managed to suit the income target and business plan of the organization. It includes the distribution of the dividend at the rate of no less than 50% of net income to shareholders, the appropriate remuneration for executives and staff as well as the establishment of selling price of condominium units to be cheaper than those of the competitors for the benefit of the customers. The Company has also allocated a budget to promote the quality of environment and society during project construction. Furthermore, the preparation of the financial statement is transparent and auditable. Documents have been prepared on a quarterly basis to communicate the performance of the Company to the shareholders in order to build their confidence and showcase the importance of the financial discipline and financial risk management.

Accountability Financial Statement The Company realizes the importance of the accuracy and transparency of the financial statement and has arranged appropriate and efficient internal control system. Significant information is disclosed in the notes to financial statement along with the explanation and analysis to ensure that the accounting information is accurate and complete for the utmost benefit of the shareholders and investors in using the financial statement. The components of the accountable financial statement are as follows:

FINANCIAL

STRATEGY OPERATION

1. Transparency

3. Disclosure without Hidden Agenda

The financial statement of the Company is prepared in a transparent manner in accordance with the good corporate governance principles. The appropriate and efficient internal control system is arranged. The Board of Directors of the Company has appointed an Audit Committee comprising four independent directors, three of whom are knowledgeable in finance and accounting, to review the accounting policy and audit the quality of the financial statement as well as the internal control system. The report of the Audit Committee will be included in Form 56-1 and the Annual Report of the Company.

The Company discloses sufficient significant information in the notes to financial statement along with the explanation and analysis to ensure the accuracy and completion of the financial information record for the utmost benefit of the shareholders and investors in using the financial statement, especially the disclosure and report of the prices of all pieces of land bought to the Stock Exchange of Thailand.

2. Auditability The Board of Directors of the Company has appointed the Audit Committee to oversee the operation and review both annual audit plan and long-term audit plan. The items in the financial statement are to be randomly audited and the outcome of the revision will be considered on a quarterly basis. Any issues found will be addressed in a timely manner. The Audit Committee opines that the internal control system of the Company is sufficient and effective and supports the development of the quality of audit work both in terms of personnel and operation to be of international standard.

4. Measurability In order to ensure the transparency of the audit standard which will entail the sustainability of the Company, the financial statement of the Company is prepared in accordance with the financial reporting standard as prescribed by the Accounting Profession Act B.E. 2547. The brief items in the financial statement are prepared in compliance with the notification of the Department of Business Development, the Ministry of Commerce in 2011 regarding the requirement for the brief items to be shown in the financial statements, and in compliance with the regulations of the Securities and Exchange Commission regarding the Preparation and Presentation of Financial Statements under the Securities and Exchange Act B.E. 2535.

5. Discipline The discipline and auditability in the financial management of the Company are ensured. The investment is controlled so that the capital of the Company is not invested in the business that is outside the area of expertise or in the activities that have conflict of interest with the Company. It is also made sure that the circulating capital of the Company is sustained to be sufficient for the payment of the remuneration for staff and all stakeholders.

6. Financial Risk Management Risks are taken into account in the investment or financial operation of the Company. Investments will not be made if the Company has to borrow more than we can afford to repay. Instead, the Company will invest with the existing resources and knowledge. The debt to equity ratio is maintained not to exceed 1:1 and is audited by the Risk Management on a regular basis.

GREEN FINANCIAL MANAGEMENT

OPERATION

â&#x20AC;˘ Achieving an Appropriate Return and Organization Growth

(G4-EC1)

2016

2017

14,601,520,851.04 6,927,704.80 2,206,004.35 39,980,838.63 14,650,635,398.82

99.7% 0.0% 0.0% 0.3% 100.0%

9,612,852,073.13 7,398,988.69 5,216,508.78 29,671,336.37 9,655,138,906.97

99.6% 0.1% 0.0% 0.3% 100.0%

10,749,536,733.83 658,613,293.35 1,471,176,658.15 1,025,794,953.12 34,664,137.10

77.1% 4.7% 10.6% 7.4% 0.2%

7,406,780,916.57 569,176,975.92 1,304,823,758.46 597,061,378.11 20,291,016.35

74.8% 5.8% 13.2% 6.0% 0.2%

13,939,785,775.55

100.0%

9,898,134,045.41

100.0%

Details Direct economic value generated Revenue from sale and services Interest income Gain from selling assets Other income Total economic value generated Economic value distributed Operating costs Employee wages and benefits Payments to providers of capital Payments to government Community investments Total economic value distributed Economic value retained

0.1%

13.2%

0.3%

Interest income

Other income

6.0%

Direct economic value generated

2017

5.8%

Payments to Employee wages providers of capital and benefits

0.0%

Gain from selling assets

-242,995,138.44

710,849,623.27

FINANCIAL

99.6%

Revenue from sale and services

STRATEGY OPERATION

Payments to government

0.2%

Community investments

Economic value distributed

2017

74.8%

Operating costs

In terms of financial management for sustainability, the Company has ensured that the financial management is transparent and auditable. The reporting and disclosure of the financial statement to the public are done on a regular basis as a listed company in the Stock Exchange of Thailand. In addition to the above, the financial management framework that emphasizes the importance of financial discipline is established. There are indicators to signify the status and follow up the operation of the Company. They are also the tools to ensure that the business operation is appropriately conducted, financial risks are managed for continuous and steady growth and profits are generated from effective operational system. The key indicators are as follows:

Indicators 1. Debt to Equity Ratio

2. Gross Profit Margin Gross profit margin is the proportion of gross profit and net sales volume of a company which indicates the efficiency of the business operation in terms of profit generation and cost management. A business with satisfactory gross profit margin implies the ability to achieve the highest sales volume comparing with the sales cost. However, the gross profit margin should not be too high as it may show that the customers, employees, trade partners and other stakeholders are being taken advantage of and that the company is not being environmentally and socially responsible which is against the policy of the Company. The Company has identified the gross profit margin target that is appropriate with the operation. It is also compared with that of the competitors in the market to indicate the efficiency of the business operation of the Company.

The debt to equity ratio or debt ratio is calculated by dividing a company’s total liabilities by shareholders’ equity or registered capital.The ratio indicates what proportion of equity and debt the company is using to finance its assets. Higher debt ratio translates into higher risks of the company being unable to pay debts as they fall due either in time of profit or loss. On the other hand, a lower debt ratio usually implies the extent to which shareholders’ equity can fulfill the company’s obligations to creditors which will positively enhance growth and competitiveness in the market.

3. Dividend per Net Profit Ratio

The debt to equity ratio of the Company is identified at 1:1 which is the ceiling of the management of growth and operation of the Company. Growth can only be achieved when a company is able to pay back both the interest and principal of a loan even in unfavorable circumstances. Adhering to such policy and practice, the growth of the Company may not be noticeable and yet the stakeholders can be assured of the sustainability and stability of the

The earning per share is the portion of a company’s net profit from the operational performance each year to be allocated to shareholders as dividends. It indicates the profit from the investment of the company. The Company will present the information on the earning per share to the Annual General Meeting of Shareholders to seek approval for dividend payment. This is the true indicator of the operational efficiency of the Company.

business.

Debt to Equity Ratio 2016

0.5 : 1

2017

1:1

2017

0.7 : 1

% Gross Profit Margin 2016

31.3%

2017

+- 30%

2017

28.5%

The Company has identified the target of the earning per share and dividend payment at the appropriate amount and proportion for shareholders to enable the Company to continually invest, expand and compete in the market. It will also reassure the shareholders of the profitable returns for sustainable growth.

% Earning per Share 2016

61%

2017

≥ 50 %

2017

69%

GREEN DESIGN CONCEPT The Product Design that is Environmentally Responsible

GREEN DESIGN CONCEPT

GREEN Design concept is the environmentally responsible design of products. The Company gives importance to the design and development of project from the process of designing the product and the layout of the project in order to minimize environmental impact. The concept is in accordance with the Green Building Standard of LEED (Leadership in Energy and Environmental Design), U.S.A. The components of the Green Design Concept are as follows: 1. Strategic Location 2. LPN Green Project - LEED 3. Blue Ocean Strategy

1. Strategic Location It is to select strategic locations where there is minimum competition but have development potential. The location must be close to convenient facilities, public transportation system and express ways to reduce environmental impacts from large-scale project development as well as energy usage in transport.

2. LPN Green Project - LEED (G4-EN27) It is to design the product and project plan under “LPN Green Project” concept that has been promoted to the public and received positive feedback in terms of sales volume. However, even though “LPN Green Project” is the concept that is derived from the Green Building Standard of the U.S.A (LEED - The Leadership in Energy and Environmental Design), the Company has adjusted some of the criterion to be suitable with the business operation and climate and environment in Thailand. The project is developed with the following concepts:

DESIGN

STRATEGY OPERATION

Sustainable Site Development

The environmental impacts from project development are minimized by selecting the project locations which are highly populated on a main road and near convenient facilities. It must also be close to public transportation system and express ways which will directly help ease the traffic and reduce energy usage. The residents are encouraged to use public transportation system by arranging a shuttle bus to connect with the main transportation system. The previous open space is compensated with green area and landscapes in the project.

Water Efficiency (G4-EN10)

The Company opts for water-conserving sanitary ware for efficient use of water such as dual flush toilet system which can reduce the use of water by as much as 50%. The residents are encouraged to take a shower instead of a bath to directly reduce the use of water. Treated waste water is used to water the plants in the project to increase the efficient use of water as well as to reduce waste water being released into the public drainage system. The efficient plant watering system such as drip irrigation system is installed in the project.

Indoor Environment Quality

It is focused on the efficiency of sustainable community management under â&#x20AC;&#x153;F-B-L-E-S+Pâ&#x20AC;? strategy i.e. the management of infrastructure and convenient facilities in the project, the management of budget, the promotion of discipline and culture of living together, the conservation of environment in the community and appropriate use of energy, the management of the security system and other regulations and the development of the capacity of staff involved in community management.

Energy Efficiency (G4-EN7)

The condominium unit is designed to have an awning and a porch to reduce the heat from sunlight that directly enters the units. The lighting and air conditioning system are to be efficient and suitable to reduce electricity use. Renewable energy such as solar power is used for garden lighting. The Community Management Department is responsible for managing energy usage in the condominium to be as efficient as possible while also being safe at the same time.

Innovation in Design (G4-EN7)

It is to plan the layout of the building and project to be in accordance with the environment by allowing natural light and wind into the project. The layout and design of the condominium unit is planned to include open space which is appropriate for living. The construction period is shortened through the use of semi prefabrication system.

Material and Resources (G4-EN1)

The Company uses alternative materials that are proved to be safe and environmental friendly to replace natural materials to reduce the impact on the environment such as using laminate floor instead of real wood parquet floor. The dimensions of the buildings are designed to be consistent with the dimensions of construction materials to maximize the economic value and reduce waste of materials that would have to be discarded back to the environment. Figured glass is used instead of opaque walls as walls within the units to obtain natural sunlight while preserving the privacy of the residents. The Company also uses insulated glass for outside windows on the west side to minimize heat from the afternoon sun when the temperature reaches its peak during the day. Green Walls are installed in the parking lot to reduce carbon dioxide and prevent heat from spreading into the residence and surrounding areas. Waste management is done by segregating waste and disposing waste appropriately both during the construction and after the residents have moved in.

DESIGN

STRATEGY OPERATION

3. Blue Ocean Strategy It is to avoid developing a project in a highly competitive area with expensive land prices to reduce costs and be able to develop projects that respond to the needs of the customers in the middle to lower-middle income group. The Company enhances the value of the project by arranging a shuttle bus to connect to the main public transportation system, providing full convenient facilities in the project e.g. convenient stores, laundry service and restaurants. The common area is designed to be suitable with the lifestyle of the residents to promote the use of common area and build a great community.

GREEN DESIGN CONCEPT

OPERATION

Achieving Green Design Concept Standard in 2017 The Company stresses the significance of project design development. The design and layout of the project are carefully planned to minimize environmental impacts, enhance the quality of life of residents as well as conserve energy. It is developed from sustainable architectural design concept which focuses on sustainable use of resources and minimum environmental impacts. It also aims to create a great living environment for all residents in order to build â&#x20AC;&#x153;Livable Communityâ&#x20AC;?. The above concept paves the way to the development of Green Design Concept Standard. In 2017, the Company has strengthened the standard as the technology and capacity of design team develop in order to respond to severe environmental problems as well as to upgrade the standard of environmentally responsible product design. It is expected that no less than 80% of condominiums developed by the Company will be built according to Green Design Concept Standard.

DESIGN

STRATEGY OPERATION

The nine categories of Green Design Concept Standard are as follows: Category 1 Sustainable Site Development Category 2 Water Efficiency Category 3 Energy Efficiency Category 4 Material and Resources Category 5 Indoor Environment Quality (Common Area) Category 6 Indoor Environment Quality (Condominium Unit) Category 7 Universal Design (Common Area) Category 8 Universal Design (Condominium Unit) Category 9 Innovation (only for Signature Green Project)

8 14 7 3 3 3 28 14 6

86 Topics

Total Score

Topics Topics Topics Topics Topics Topics Topics Topics Topics

In 2017, a consultant company has inspected the Green Design Concept Standard in seven projects as follows:

â&#x20AC;˘ LPN GREEN DESIGN CONCEPT STANDARD (G4-EN27)

Project Lumpini Park Beach Cha-am 2 Lumpini Ville Rasburana-Riverview 2 Lumpini Place Bang Na-Km. 3 Lumpini Ville Pranangklao-Riverview Lumpini Suite Petchaburi-Makkasan (Signature Green) The Selected Kaset-Ngarmwongwarn by L.P.N. Lumpini Suite Dindaeng-Ratchaprarop

Pass (%)

Fail (%)

Information is pending (%)

74.24 77.27 90.90 75.75 73.61 76.39 75.76

7.58 9.09 4.55 7.58 6.94 10.60

18.18 13.64 4.55 16.67 26.39 16.67 13.64

When comparing to the implementation of green product design in 2016, it is found that the design of condominium projects of the Company has the tendency of gaining higher scores. Some requirements cannot be met since they are not compatible with the project type. Other requirements are unmet because the project design is still inconclusive. score

100 75 50 2017

2016

25 0

Lumpini Park Beach Cha-am 2

Lumpini Ville Lumpini Place Lumpini Ville Lumpini Suite The Selected Lumpini Suite Lumpini Ville Lumpini Ville Rasburana- Bang Na-Km. 3 Pranangklao- PetchaburiKasetDindaeng- Sukhumvit 76- RatchapruekRiverview 2 Riverview Makkasan Ngarmwongwarn Ratchaprarop Bearing Station Bangwaek (Signature by L.P.N. Green)

Lumpini Seaview Cha-am

Project

GREEN MARKETING MANAGEMENT The Fair Marketing Strategy for the Customers and Competitors

GREEN MARKETING MANAGEMENT

GREEN Marketing Management is the marketing activities that are fair to the customers and competitors. The marketing strategy is designed to be in accordance with our determination to build the first high quality home at affordable price for the middle to lower-middle income earners in order to create a great quality of life and society for the residents in a responsible manner both before and after project handover. The marketing policy of the Company is fair, respects consumers’ rights and treats the competitors with fairness. The 6Ps Marketing Strategy is as follows:

1. Product Strategy

The Company strives to deliver unique product values both in condominium units and common area to the customers. The product values are developed from knowledge and experiences in project development and “Livable Community For All” community management strategy to accommodate the lifestyle of the residents. The construction standard is strictly controlled and the construction materials are carefully selected in order to build condominium units that are perfect to live in.

2. Pricing Strategy

The selling price is affordable and set to be lower than that of the competitors’ projects targeting the same group of customers by managing costs and expenses in all production processes. The profit and terms and conditions of the installment payment for down payment are determined in line with the status of the target group. The Company also provides financial management services to customers to facilitate their loan application and create an opportunity for them to own a home.

MARKETING

STRATEGY OPERATION

3. Place Strategy

The location of the sales office must be on or near project development site so that it would be accessible to the customers. All the details must clearly be stated and easy to understand without any hidden agendas. Show units of some projects developed outside Bangkok may be situated in the inner city area in order to be more accessible for interested customers.

4. Promotion Strategy

Marketing and promotion are done in a transparent manner and must take the Company and customersâ&#x20AC;&#x2122; benefit into account. The sales terms and conditions must take into consideration the financial capacity of customers. The advertisement should be creative, clear and fair without a hidden agenda. The Company treats business competitors fairly and does not harm the competitorsâ&#x20AC;&#x2122; ability to compete in the market.

5. People Strategy

The Company gives a great deal of importance to customersâ&#x20AC;&#x2122; satisfaction. The standard of touch points e.g. sales officer, maid and security officer has been established and trainings which are in accordance with LPN Service Culture (S-E-R-V-I-C-E-S) are provided on a regular basis to bring about positive customer experiences and build up sales volume from referral. The net promoter score measuring customer loyalty is the guarantee for after-sale services. There are also various channels for submission of complaints and suggestions for service improvement.

6. Process Strategy

All processes must provide convenience for customers. The reservation making and contract signing processes must be simple and speedy. Various payment channels and methods must be in place. The deposit forfeit and return must be considered carefully and take into account the concerns of customers. Also, the Company makes an attempt to minimize complaints arising from high expectations of customers by highlighting important issues in the reservation agreement and communicating with customers for mutual understanding.

GREEN MARKETING MANAGEMENT

OPERATION

The Company emphasizes the importance of all stakeholders, especially customers. Customer Experience Management is thus identified as the core strategy of the business operation of the organization both in terms of value and finance to ensure fair treatment of customers and competitors. This year, the emphasis is put on matching services with customer lifecycle and improving customer satisfaction to build brand loyalty. This is a part of our sustainable development goals. Customer care is provided during the three following periods:

1. Before a purchase

The information provided to customers must be complete and accurate to support informed decision-making of customers. Customers must be able to access information from various sources and the quality of services provided must be impressive.

MARKETING

During a purchase

The customers must be informed of the project progress and operation process of the Company so as to build up their confidence in the project and service value and to be prepared to move in.

STRATEGY OPERATION

3. After a purchase After the condominium unit is handed over and the customers move in, their quality of life and safety are taken care of and managed under the concept of â&#x20AC;&#x153;Livable Communityâ&#x20AC;?.

Customer Care The scope of customer experience management of the Company is inclusive of the design of services provided to customers at all touch points, whether they are human touch points or non-human touch points, in order to build positive experience and increase customer satisfaction. The service standard will continuously be improved to ensure that the interaction with all touch points exceeds customer’s expectation.

35. Community Driver 34. Maids at the Condominium 33. Brokerage Business Officers

ter Experienc es a f

ing

25. Condominium Units 24. Common Properties

Prospect

y re bu

27. Administrative Officers of Juristic Person 26. Community Managers

in ng i v o

o bef es

30. Maids at Juristic Person Office 29. Security Officers at Juristic Person Office 28. Building Maintenance Workers

32. Maintenance Officers after Ownership Transfer 31. Security Relation Officers

1. Parking Space 2. Sales Office 3. www.lpn.co.th Exp 4. Show Unit erie nc 5. Sales Activity 6. Call Center 7. Sales Officers 8. Maids at the Sales Office 9. Security Officers at the Sales Office

Resident /Co-owner

23. Convenient Facilities

Touch Point Wheel

Customer

10. Condominium Unit Handover Activity 11. Ownership Transfer Office 12. Juristic Person Office

13. LPN Payment Card

xp 22. Bank Officers ess e rie c 14. Installment Payment Follow-up System o nces 21. Officers of Business Alliances pr g n i y d u u rin g b 15. Mobile App. 20. Construction Officers 16. Ownership Transfer Officers 19. Customer Experience Management Officer 18. LPN Staff 17. Finance Officers

In addition to providing standardized services to build positive experiences at all touch points, the Company conducts a performance evaluation through customer satisfaction survey in nine processes and 21 touch points that are directly in contact with the customers. Overall, the customer satisfaction has increased, especially in sales and community management under “Livable Community For All” concept. The average score of satisfaction with services is 85% and the average net promoter score of customers who receive ownership transfer service, joint owners, residents and joint owners committee members is 36%. The scores reflect the customer’s confidence in “Lumpini” brand.

Satisfaction and Complaint Management (G4-PR5) • Satisfaction % 100 80 60 40 20 0

93%

85% Year

2015

2016

2017

43%

36%

• Net Promoter Score (NPS)

The overall scores have decreased because the survey method has been designed to become more meticulous and questionnaires are now collected online to improve the quality of services.

% 80 60 40

44%

20 0

2015

2016

Year

2017

It is apparent that the overall satisfaction and net promoter scores have decreased in the previous year. It is because the survey method has been designed to become more meticulous and questionnaires are now collected online. The Company strives to improve the quality of services, tighten loopholes, improve touch points and develop service standard in 2018.

Project Location Selection

Land Purchase

Project Design

Financial Management

Sale & Marketing Management

Sale Condominium 87% Horizontal Projects 93%

Customer’s Experience Management

Construction Management

Handover Management

Condo minium

MARKETING

Horizontal Projects

Ownership Transfer Officer

82% 92%

Product

75% 61%

STRATEGY OPERATION

Moving Preparation

Community Management

Community Management BBD Officer PMD Lumpini Maid

88% 84% 82% 84%

In addition to ensuring positive experience of customers, there is also a customer retention process of managing customer complaints and feedback received from various channels. It is a great opportunity for the Company to be aware of the defects in our products and services and take action to solve the problems. The complaints will be managed through complaint management process to provide assistance to the customers and contain the problem. Since social networking and online reviews are prevalent, the information has spread widely and quickly like never before. Minor problems could become major issues, therefore, finding appropriate solutions for the customers in a timely manner is the practice that all staff have always adhered to. This year, the customers can make a complaint via five channels i.e. LPN Mobile App, Company website, Call Center, Line and staff of the Company. Line is the newest addition in 2017 as it corresponds with the lifestyle of the customers. After the complaint is received, it will be managed so that the situation is resolved within five days. Anyhow, it also subject to the urgency of the problem as well as the action involved. The complaint management process can be categorized into eight steps. The information on the action taken and solutions are filed in the knowledge management system of the Company as a reference for other staff.

â&#x20AC;˘ The complaint management process of the Company is as follows Process

Related Department

1. Receive complaints from various channels - LPN Care, Website, Call Center, Line - Direct call to staff - External website e.g. pantip.com - Executives

Customer Experience Management Department (CEM)

Customer/ Resident

Start Receive complaints

2. inform the related department within one day and record it in the complaint system

Report the complaint and record it in the system

Copied on the complaint report

3. Related department acknowledges the complaint and contacts the customer within one day after being informed of the complaint

Receive the complaint report

Investigate the nature of the problem

4. Take action to solve the problem and record the outcome in the system and inform the customer of the proposed solution.

Take action to solve the problem

Explain the proposed solution to the customer

5. Related department reports the outcome of the action taken to the Customer Experience Management Department and executives 6. Contact the customer to follow up on the issue

Executive

Report the outcome

Report the outcome Follow up on the outcome

7. Prepare a monthly report to be submitted to the executives and related department

Complaint report

8. File the report and share interesting case studies with other staff in the knowledge sharing session

File the report

Complaint Management The Company compiles and categorizes complaints for the information to be used to develop and improve the operation, particularly those involve the delivery of product and service values to customers. The complaints are categorized into two groups as follows:

Group1: Product Value

Group 2: Service Value

Complaints about products

Complaints about community management under F-B-L-E-S strategy

Complaints from neighboring communities

Complaints about provision of service

Complaints in 2017 All through the 28 years of business operation, the Company has always been improving the operational process and managing complaints. In 2017, there are 461 complaints submitted, decreasing 23% from the previous year with the tendency to decrease further in the future. Since the communication channels between the Company and customers are easily accessible, the customers are allowed to make enquiries or submit complaints directly to the Company. At the same time, the Company is able to solve the issues in a timely manner so as to reduce the number of complaints. The number of complaints received is 0.35% of the number of customers. Anyhow, all complaints submitted are of equal importance.

23% is the percentage of complaints decreased from the previous year since the communication channels between the Company and customers are easily accessible.

â&#x20AC;˘ Complaints 461 Complaints , 4 Channel

17%

Compliment

110 complaints

11% Suggestion

69 complaints

640 complaints

72%

33%

Complaint

461 complaints

23% 1% LINE@

1complaints

MARKETING

STRATEGY OPERATION

44%

LPN CARE

153 complaints

Call Center

203 complaints

Website

104 complaints

461 complaints

complaints

69 complaints

1% LINE@

LPN CARE

1complaints

Call Center

153 complaints

Website

203 complaints

104 complaints

â&#x20AC;˘ 4 Categories of Complaints Complaints in 2017 : 461 Complaints

0.4% Environment

3.7% Product Value

(In/Out/As Process) (G3-EN34)

(Q-C-S-E-S)

Complaint 461 complaints

51.1% PEOPLE

44.8%

Service Value (F-B-L-E-S)

(S-E-R-V-I-C-E-S)

Q 17

Product Value

Service Value

People

Environment

17 complaints

205 complaints

237 complaints

2 complaints

C -

S -

E -

S -

F 31

B -

L 163

E 1

S 10

Human

Non-Human

OUT

(230) No follow-up

(7) Errors

â&#x20AC;˘ Complaint Management Guideline

Hour

Respond within an hour of receiving the complaint.

Use repeated complaints Q & A as case studies and prepare Q&A in advance.

Manage complaints according to the level of urgency and impacts on customers.

Complaint Management Guideline for Sustainability All complaints received from customers will be communicated to the executives. The solution to the problem will be advised and guideline for prevention of repeated complaints will be prepared. In order to reduce the number of complaints in the future, the complaints are studied to improve the operational process. It is found that there are rooms for improvement in communicating to customers. Information consumption behavior has vastly been changed as a result of social media. Words and comments travel fast online. The customers in the social media expect a quick response. As statistics show, Line is the most used and popular communication channel as it is convenient and quick. The information can be sent right away and the receiver can respond back immediately. It has thus been the program used by the Company as a tool to communication to customers. Last year, the Company communicated to the customers when they made a reservation to buy condominium units, paid down payment in installments, transferred ownership of condominium units and moved in through Line, for example, information on the project, installment plan, project progress, ownership transfer process, moving in process and rules and regulations. Apart from communicating to customers to avoid future complaints, Line is used to answer enquiries and keep customers informed of the services provided. Since communication is done through Line, complaints received in the past year has decreased 23% and customer satisfaction of this communication channel is 86%. It also helps simplify the operational process. The Company will continue developing our services to match the needs of the customers in all aspects. 65

GREEN CONSTRUCTION PROCESS The Management of Environmental and Social Impacts from Construction Process

GREEN CONSTRUCTION PROCESS

CONSTRUCTION

Green Construction Process is the management of environmental and social impacts from the construction process which affects the environment and society the most. The Company has continuously developed the construction process by increasing the efficiency of the operation and reducing the environmental and social impacts through new technology and innovation. The Q-C-S-E-S+P strategy is developed as a guideline for construction operation for both the staff of the Company, business alliances who design the project and contractors. The environmental responsibility and safety of workers and related persons are particularly emphasized. The Q-C-S-E-S+P strategy is as follows:

STRATEGY OPERATION

Q C S E S P

Quality of Product It is the management of project construction by emphasizing the quality of products i.e. common area and condominium units that meet the expectation of the customers. Apart from using high quality and environmental friendly construction materials, the construction site must be tidy and of high standard.

Cost Control and Management The costs are carefully controlled and managed not to exceed the estimated amount. Both direct and indirect costs such as material costs, labor costs and other construction and operation expenses are managed. The efficiency of the operational process is also emphasized.

Speed of Delivery It is to ensure that the construction and operational process are completed in a timely manner prior to the planned timeframe to reduce costs and risks for customers. This can be achieved from the combination of the expertise of the Company and the collaboration from all related parties.

Environmental Responsibility It is the responsibility towards the environment to reduce the impacts both in the construction site and on neighboring communities during the construction process. The measures to reduce the environmental impacts indicated in the Environmental Impact Assessment (EIA) report are to be strictly implemented.

Safety of Workers and Participants The Company ensures the safety of construction workers and related parties during construction by establishing a strict operational standard in terms of safety to prevent any accidents that may occur. Moreover, the safety of construction equipment and buildings has always been monitored. The Company also stresses the importance of occupational health and good quality of life of construction workers.

People Management It is to manage the impacts on the stakeholders. The Company gives importance to the labor rights and quality of life of the construction workers that are normally ignored by other business operators, the responsibility towards neighboring communities of the construction site as well as mutual growth and development with the business alliances or trade partners. The communities and environment surrounding the construction site are also developed.

GREEN CONSTRUCTION PROCESS

OPERATION

1. Environmental Management at Construction Site The construction process is conducted in accordance with QCSES+P concept. LPN Green Project Development Checklist comprising seven sections is applied as the design standard and environmentally and socially responsible construction management. The seven sections comprise:

Section 1

Section 2

Section 3

Section 5

Section 6

Section 7

Construction Preparation (8 Topics)

Preparation for Handover and Building Use (4 Topics)

CONSTRUCTION

Foundation and Pile Work (23 Topics)

Safety and Welfare in Construction Site (12 Topics)

STRATEGY OPERATION

Major Architectural Work (9 Topics)

Section 4

Indoor Architectural Work (4 Topics)

Safety and Welfare in Accommodation of Construction Workers (11 Topics)

Assessment of Green Construction Process Standard

(G4-SO1)

The construction is managed to enhance the quality of products both in the common area and condominium units to meet expectations of customers. The Company does not only select high-quality and environmentally friendly materials but also ensures that the construction site is tidy and meets standards. At the end of 2017, four projects were under construction and the outcome of the inspection of the construction site according to Green Construction Process Standard is as follows:

No. of Topics that Meet the Standard

Section 1 (8 Topics)

Section 2 (23 Topics)

Section 3 (9 Topics)

Lumpini Suite Petchaburi-Makkasan

Lumpini Ville Rasburana-Riverview 2

Lumpini Ville Pranangklao-Riverview

Lumpini Seaview Cha-am

Section 4 (4 Topics)

Section 5 (4 Topics)

Section 4 and 5 were not yet implemented.

3 2

4 Section 5 was not yet implemented.

Section 4 and 5 were not yet implemented.

Average Percentage

Section 6 (12 Topics)

Section 7 (11 Topics)

85%

95%

90%

73%

â&#x20AC;¢ Summary of the Amount of Materials Used in Construction in 2017 (G4-EN2) Material

Total Renewable Material

% of Renewable

0% 50% 50% 50%

17,175.60 188,028.92 58,762.59 10,830.63

100% * 50% ** 50% ** 50% **

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

% of Total NonNon-Renewable Renewable Material

Unit

Total Used

cubic m. sq.m. sq.m. sq.m.

17,175.60 376,057.84 117,525.19 21,661.27

188,028.92 58,762.59 10,830.63

cubic m. cubic m. ton sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. sq.m. set

7,892.01 74,335.41 8,633.96 189,442.00 156,551.15 98,635.43 321,128.84 207,941.01 402,722.75 74,045.44 159,090.79 826,069.21 4,874.00

Renewable Material Soil Shutter board Temporary fence Accommodation of construction workers Non-Renewable Material Sand Concrete Steel Post tension Tile Laminate Cement Brick Plaster Precast Gypsum board Paint Sanitaryware Note :

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

* Soil can be transported to other projects. ** Surplus materials can be used in 2-3 other construction projects.

Projects handed over in 2017 Soil Shutter board 17,175.60 cubic m. 376,057.84 sq.m.

Temporary fence Accommodation of 117,525.19 sq.m. construction workers 21,661.27 sq.m.

Sand 7,892.01 cubic m.

Concrete 74,335.41 cubic m.

Brick 207,941.01 cubic m.

Construction site area 216,612.69 sq.m.

No. of unit 4,729.00 units

CONSTRUCTION

Steel 8,633.96 tons

Post tension 189,442.00 sq.m.

Tiles 156,551.15 sq.m.

Laminate 98,635.43 sq.m.

Cement 321,128.84 cubic m.

Plaster 402,722.75 sq.m.

Precast 74,045.44 sq.m.

Gypsum board 159,090.79 sq.m.

Paint 826,069.21 sq.m.

Sanitary ware 4,874.00 sets

STRATEGY OPERATION

Monitoring of Environmental Quality The monitoring of environmental quality is conducted in four projects, namely, Lumpini Seaview Cha-am, Lumpini Ville Pranangklao-Riverview, Lumpini Ville Rasburana-Riverview 2 and Lumpini Suite Petchaburi-Makkasan. The parameters monitored are as follows:

Air Quality The monitoring of air quality has been

Noise Level The monitoring of noise level has been

Quality of treated water The quality of treated

water has been monitored on the following parameters: pH balance (pH), Suspended Solids (SS), Total Dissolved Solids (TDS), Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), Oil & Grease (O&G), Total Kjeldahl Nitrogen (TKN), Sulfide and Fecal Coliform Bacteria (FCB).

done on the following parameters: Total Suspended Particulate (TSP), PM-10, Sulfur Dioxide (SO2), Nitrogen Oxide (NO2), Carbon Monoxide (CO) and Hydrocarbon (THC).

done on the following parameters: average noise level over a 24-hour period (Leq 24 hours), maximum noise level (Lmax) and noise nuisance.

Vibration The monitoring of the level of vibration has

It is found from the monitoring that the outcome of all projects meets the standards required by law.

been done vertically, transversely and longitudinally.

â&#x20AC;˘ Outcome of the Monitoring of Environmental Quality Against Legal Standards

Outcome of the Monitoring of Environmental Quality Project Air Quality

Noise Level

Vibration

Quality of Treated Water

Lumpini Suite Petchaburi-Makkasan Lumpini Ville Rasburana-Riverview 2 Lumpini Ville Pranangklao-Riverview Lumpini Seaview Cha-am

2. Waste Management (G4-EN23)

Waste in construction site can be divided into two categories i.e. construction waste and household waste of construction workers. The Company aims to reduce the amount of waste by reusing some construction materials such as scrap metal and scrap wood or using them to make tools and fitness equipment for construction workers. The percentage of each category of waste is shown below.

• Amount of Waste in Each Project Lumpini Suite Petchaburi-Makkasan

Lumpini Ville Rasburana-Riverview 2 Metal Scraps

Household Waste of Construction Workers

Cement Waste

21%

Wood Scraps

21%

Construction Waste

Project Progress

55%

24%

Cement Waste

24%

79.12%

44%

Lumpini Seaview Cha-am Wood Cement Waste Scraps 2%

Cement Waste

13% Construction Waste

23%

Construction Waste

Lumpini Ville Pranangklao-Riverview Wood Scraps

24%

Project Progress

Wood Scraps

11.86%

Household Waste of Construction Workers

Project Progress

Household Waste of Construction Workers

56%

Construction Waste

19%

Project Progress

46.42%

Household Waste of Construction Workers

70%

59.14%

• Management of Waste in Construction Site Type of Waste and Management of Waste

Construction Waste Recyclable Material

Wood scraps, Metal scraps, Aluminum scraps Sell

CONSTRUCTION

Recycle

STRATEGY OPERATION

Household Waste from Construction Workers

Non Recyclable Material

Cement / Gypsum Landfill

Reclamation

Collected and sent to related government agency for disposal

â&#x20AC;˘ Reuse of Waste Materials in Construction (G4-EN2) In each project, construction waste is used to build new equipment for use at the site, for example, fire extinguisher stand, waste bin and temporary manhole cover are made from scrap metal and playground and fitness equipment are made from other scrap materials.

3. Safety and Occupational Health Management Promotion of Quality of Life of Construction Workers Construction workers are the driving force behind real estate development business. The Company thus focuses on the enhancement of the quality of life of construction workers both at the construction site and accommodation. It is believed that construction workers would be able to do their work efficiently should they have a good quality of life, live in good environment, be equipped with basic necessities and be healthy. Moreover, the new and improved standard of accommodation of construction workers is enforced in all projects. Activities are regularly organized to promote the quality of life of construction workers as follows:

â&#x20AC;˘ Acitivities to Promote Quality of Life of Construction Workers

Activity

Project

Participant (Person)

Safety and Occupational Health Week

Lumpini Ville Ratchapruek-Bangwaek

300

Free haircut

Lumpini Ville Ratchapruek-Bangwaek Lumpini Park Petchakasem 98 (Phase 2)

60 60

First-aid and medical use training

Lumpini Seaview Cha-am Lumpini Park Petchakasem 98 (Phase 2) Lumpini Ville Rasburana-Riverview 2 Lumpini Ville Pranangklao-Riverview The Selected Kaset-Ngarmwongwarn

50 60 50 70 60

Provision of medicine cabinet and medicine

Lumpini Ville Pranangklao-Riverview Lumpini Place Bang Na-Km. 3

Development of Neighboring Public Space High-ranking executives of the Company will visit neighboring communities and related governmental agencies to build understanding and good relationship with them, particularly the residents of the houses or buildings that are adjacent to the project and directly affected in terms of noise, dust and traffic. It will be ensure that the construction will be done in accordance with the project design and given timeframe.

Monitoring of Environmental Quality (G4-EN22) 1. The environmental standard of the construction site and neighboring houses is established to be suitable with the surrounding and area of each project.

3. Officers of the Company will visit the neighbors to build a good relationship with them and listen to their problems and concerns over the construction impacts.

2. Neighboring residents will be informed three days in advance when there is to be noisy activity from the construction site such as pile work. The hours that the work with loud noise can be operated are limited between 08.00-19.00h. Noisy activities will also be avoided on weekends so that neighboring communities will not be disturbed.

4. A suggestion box is put up in front of the project to provide an opportunity for neighboring residents to make complaints or suggestions.

Development of Neighboring Public Space (G4-SO2) Relationship-building with local communities and development of neighboring public space in one kilometer radius from the construction site is one of the top priorities of the Company in order to care for stakeholders. It is because the area surrounding the construction site tends to be affected more than other areas.

â&#x20AC;˘ Improved Neighboring Public Space in 2017 Project

Agency

Details

1. Shrine of Nongjaeng Community

Lumpini Seaview Cha-am

Community hall and shrine are improved. Lunch is offered to nine Buddhist monks and residents of the community.

2. Saima Health Promoting Hospital

Lumpini Ville Pranangklao

Fitness equipment from show unit are provided to the hospital.

CONSTRUCTION

STRATEGY OPERATION

4. Management of relationship with neighboring communities â&#x20AC;˘ The guideline for the care for neighboring houses to minimize the impacts from construction(G4-EN34)

Operational Process 1. Survey the environment around the project

Before the construction, the environment around the project is surveyed, the map of neighboring houses indicating house number, name of owner and telephone number is prepared and the officers visit the neighboring houses to introduce themselves.

Timeframe Construction Department Before pile work

Start Survey the environment Compile preliminary information

2. Build good relationship with neighboring residents Before pile work / Weekly Visit neighboring residents to build good relationship with them, listen to their concerns and ask about the impacts with them.

Build relationship with neighboring residents

3. Establish pollution prevention measures

Establish pollution prevention measures

Put up canvas for dust and noise prevention,

clear up the site, build temporary houses for workers, etc.

Before pile work

4. Monitor the environment and follow up

Monitor the surrounding environment and communities

the progress Regularly monitor the surrounding environment and take immediate action when a problem is found.

5. Take action to solve the problem Should there be any impacts or damages caused by the construction, they must be resolved immediately.

Contractor

Within one day

No Problems found

Implement the measures

Problems found

Take action to solve the problem

6. Compile the information

6.1 Feelings of neighboring residents 6.2 Problems and solutions 6.3 Points for improvement and outcome

7. Assess the performance

Compile information Monthly

Assess the performance

End

GREEN COMMUNITY MANAGEMENT Management of Quality of Life of Residents after Handover

GREEN COMMUNITY MANAGEMENT

The responsibility of real estate developers should not be ended when the “residence” is handed over to the customers. The building and environment should also be managed and maintained afterwards. However, the Company has realized that there are more to project development and thus developed building management guideline and community management strategy to promote gracious culture and harmony of living together in the society. During the past 28 years, the Company has created and handed over a “home” to members of more than 122,000 “Lumpini” families and taken care of the environment and quality of life of the residents and neighboring communities via “Livable Community” strategy. The Company does not only ensure the safety and standard of the equipment but also the safety of the community, the happiness of the residents as well as environmental awareness of the residents on a regularly basis in accordance with the F-B-L-E-S+P guideline. It is developed from extensive community management experiences with the aim to deliver a great quality of life, environment and society to the residents. The details are as follows:

COMMUNITY

STRATEGY OPERATION

F B L E S

Facility Management

It is to maintain the efficiency of common properties whether it be architectural structure, convenient facilities and various systems in the building e.g. elevator, electricity generator, electrical system and sanitation system to ensure that all components of the building function normally and are safe to operate.

Budgeting Management

It involves the management of budget for condominium juristic person to be in line with the policy approved by the Annual General Meeting of Joint Owners as well as the management of the stability of the fund for the financial stability of the community. A financial report that is easy to understand, transparent and auditable will also be prepared.

Life Quality Management It is the management of the quality of life of the residents and promotion of compliance with the regulations of condominium to entail the harmony of co-existence in the society and “Togetherness, Care and Share” culture. Various activities promoting gracious culture in the society are organized and help build good relationship in the family and between “Lumpini” members.

Environment Management

The Company puts very much emphasis on environmental issues. Green Clean Lean concept is promoted and various activities are implemented such as tree planting activity, increase of green space in the community and neighboring community, waste segregation program, waste water treatment, reuse of treated waste water in the project, energy conservation campaign and promotion of renewable energy.

Security & Safety Management The Company has established a strict performance standard in terms of safety from the design of the project layout. The standard of the security officers and safety equipment such as closed-circuit television, alarm system and communication system is ensured. Participation of community members and related government agency is also promoted to enhance the utmost security of the members of the community.

+P People Management The Company gives importance to the management of related persons in community management whether it be Community Management Department, Juristic Persons Committee or the residents to ensure their satisfaction. The problems and conflicts between residents that may affect the community are also managed. The focus is on the development of attitude and skills of the Community Management Department and the means of communication to increase knowledge and understanding about community management of Juristic Persons Committee especially the Chairman so that they are on the same page. The management of human resources capacity will play a role in promoting the efficiency of the F-B-L-E-S strategy. The sustainable community will comprise the following people:

COMMUNITY

STRATEGY OPERATION

Internal staff i.e. executives, Community Managers and the management team, all of whom play an important role in promoting the sustainability of the community. The Company has developed their capacity through various training programs as well as promoted service culture for the success of the â&#x20AC;&#x153;Livable Communityâ&#x20AC;? strategy.

Residents

Juristic Person Committee

i.e. the residents in the project inclusive of the joint owners and renters. Different activities are organized by the management to promote the concept of co-existence in the community, reduce environmental impacts, promote a good society and create Livable community.

i.e. the representatives of the stakeholders in the project. They drive forward the process of implementing the concept of Livable community in the project by building the knowledge and understanding of the Chairman and committee members.

GREEN COMMUNITY MANAGEMENT

OPERATION

Overall Community Management 2017

Management

Quality of Life

156

122,000 Families

juristic persons

400 buildings

6.8

million sq.m.

COMMUNITY

Community Management Efficiency

Children Elderly age

Teenagers

Working age

87%

STRATEGY OPERATION

Community Management Score of Lumpini Property Management Co., Ltd.

98%

Average NPS Score of Lumpini Property Management Co., Ltd.

49%

Management of Quality of Life of Residents In addition to the maintenance of building components and efficient and sustainable management of community budget, the management of the quality of life of the residents and environment in the projects is another strategy that has always been of importance to the Company.

Development of Learning Space In 2017, the Company has developed libraries and multifunctional rooms to be living libraries that are suitable for all age groups to promote reading and learning. The space is also used as a common room for the residents to mingle. The activities to promote the quality of life of the residents can be divided into two categories, namely, the improvement of living library (in old projects) and the promotion of library use. The details are as follows:

Details

Project

1. Improvement of Living Library (in Old Projects)

Lumpini Place Ratchayothin Lumpini Place Pinklao 2

2. Promotion of Library Use (Fun Reading Activities)

Lumpini Place Ratchayothin Lumpini Park Riverside-Rama 3 Lumpini Park Pinklao

Environmental Management in Lumpini Community

GREEN Green Space Management “Plant & Share” activity has been organized for the fifth consecutive year to encourage the residents to participate in maintaining and increasing green space in Lumpini community. This year, the Company invites the residents to take part in “Blooming Marigolds in Lumpini Communities” activity by growing yellow marigolds in dedication to His Majesty the late King Bhumibol Adulyadej. The total of 131 Lumpini communities participated in the activity, generating 1,161 sq.m. of green space.

The total of

131

Communities

participated in the “Plant & Share” activity, generating

1,161

sq.m.

of green space.

CLEAN Waste Management in Lumpini Community (G4-EN22) Waste generated in Lumpini community can be categorized into three types, namely, general waste, recyclable waste and hazardous waste. The average of 1,048 tons of waste is generated per month, 95.51% of which is recyclable waste and 0.07% is hazardous waste. In 2017, the components of condominium waste are studied in order to compile information on the amount and type of all waste generated and the current waste management system. The information will be used to improve the efficiency of the waste management system in the community. The survey is conducted in three projects i.e. Lumpini Place Rama 9-Ratchada, Lumpini Park Pinklao and Lumpini Condotown Ramindra-Laksi. The outcome of the survey is being analyzed and concluded.

â&#x20AC;˘ Waste in Lumpini Community (G4-EN23) General/kitchen waste 33,371 kg./day (95.51%)

All waste 34,941 kg./day

Waste segregated 1,112 kg./day (3.19%)

Recyclable waste 1,543 kg./day (4.42%)

(~1,048 ton/month)

Separate waste containers 431 kg./day (1.23%)

Hazardous waste 26 kg./day (0.07%)

1.23%

0.07%

Separate waste containers

4.42%

Hazardous waste

Recyclable waste

3.19% Waste segregated

95.51% General waste

COMMUNITY

STRATEGY OPERATION

â&#x20AC;˘ Waste Management System (G4-EN23)

Waste from condominium units

Waste containers on each floor

Maids - Segregate waste - Move it to garbage room

Maids - Segregate waste again - Put it in common garbage room

Waste is collected by BMA every 1-2 days.

Containers for recyclable waste

Recyclable waste is put in dry garbage room.

Recyclable waste is sold 2-4 times per month.

Waste sorting plant

Container for hazardous waste

Waste is collected by BMA every 1-2 days.

Hazardous waste plant

â&#x20AC;˘ Average waste generation per person Average waste generation (gram/person/day)

400

320 gram

Weight (gram)

320 gram

300

230 gram 250 gram

200

200 gram

100 0

May 2017

Jun 2017

Jul 2017

190 gram

Aug 2017 Sep 2017

22x30 inches

Average 4.8 kg. per bag

10.8 kg.

18x20 inches

Oct 2017

Bag dimension:

Average per bag

Bag dimension:

30x40 inches Average

14.6 kg. per bag

Bag dimension:

36x45 inches Average

18.8 kg. per bag

Bag dimension:

45x55 inches Average

17.7 kg. per bag

LEAN Energy Management (G4-EN3, 6, 7)

Electricity Consumption in Lumpini Community (G4-EN4) Electricity consumption in Lumpini Community comprises electricity used in condominium units, accounting for 70% of all electricity consumption in the community. The other 30% is the electricity used in common area and building systems e.g. elevator system, water pumps system, lighting system, electricity system, swimming pool, fitness equipment, air-conditioning system and others. In 2017, the electricity used in building systems and common area is 5,246,000 units per month, costing 19.41 million THB per month.

Air conditioners and other appliances Swimming pool and fitness equipment

Proportion 70% of Electricity use used in in Lumpini the Community community

30% used in the common area and system works

Main electricity system Lighting system

10%

20%

Proportion of Electricity use in common area

15%

20%

Elevator system

water pump system

20% Wastewater treatment system

2017

COMMUNITY

The electricity used in common area is 5,246,000 units per month

STRATEGY OPERATION

costing 19.41 million THB per month = 232 million THB per year

Energy Conservation Guideline

Energy conservation in common area and building systems

The Company chooses energy efficient equipment and machines, installs power consumption control devices, prepares electricity consumption plan and sets the machines on/off time. The measures implemented to save energy in common area will not affect the daily life of the residents.

Switch to LED light bulbs

120,000

Lights in the common area are turned off for an hour on every 3rd and 4th Saturday of the month.

light bulbs changed

• Turning lights on/off during a certain period of time • Turn off air-conditioners during lunch break and before getting off work.

• Energy Conservation in Building Systems and Common Area Average electricity charge per month of condominiums units/month 5 million 4 million 4,154,000 3,954,000 3 million 2 million 1 million 0

2016

2017

2017 199,000 units of electricity are reduced per month (-4.8%).

ปี

Saving 737,000 THB of electricity charge per month = 8.84 million THB/year

The common area is designed to be naturally ventilated to reduce air-conditioning use and conserve energy.

Energy conservation in condominium units

Activities are organized to promote energy conservation and encourage the residents to conserve energy. Electricity in the common area is turned off for an hour every third and fourth Saturdays of the month. 150 Lumpini communities take part in the campaign and are able to save 44,734 units of electricity and 165,500 THB.

Turning off lights for one hour on every 3th and 4th Saturday of the month 150 Communities Reduce 44,734 units of electricity Save 165,500 THB

Water Management in Community

(G4-EN10, G4-EN22)

Water used in 140 Lumpini communities is distributed from Metropolitan Waterworks Authority and Provincial Waterworks Authority. The average water use is 489,197 cubic meters per month. The average used water or wastewater released is 391,357 cubic meters per month, accounting for 80% of all water in the community. The remaining 97,840 cubic meters per month or 20% of all water use will be reserved for future use. Wastewater will be treated before being released into natural water resources. In 100 Lumpini communities, wastewater is treated by the wastewater treatment system of Lumpini community. In 36 Lumpini communities, it is done by the central wastewater treatment system of Bangkok Metropolitan Administration or local authority. Around 9% of treated water will be reused for watering plants, cleaning streets and cleaning water tanks. The remaining of the treated wastewater will be released into natural water resources.

COMMUNITY

STRATEGY OPERATION

Water Management in Lumpini Community Sources: Metropolitan Waterworks Authority

Sources: Provincial Waterworks Authority

133 Communities 455,600 cubic meters per month

12 Communities 33,597 cubic meters per month

80 % Wastewater

20%

in the Treatment System 391,357 cubic meters per month

Reserve Water 97,840 cubic meters per month

Estimation of water use

489,197 cubic meters per month

Wastewater Treatment in Lumpini Community 100 communities Water Quality Meets Standard Criteria 91 communities

Wastewater treatment system is being built 1 community

Water Quality Fails to Meet Standard Criteria 9 communities

91 % Released into

Natural Water Resources 355,240 cubic meters per month

Wastewater Treatment outside Lumpini Community 36 communities

Wastewater is treated at BMA 27 communities

Wastewater is treated at other government agencies 9 communities

Reused 49 communities 36,117 cubic meters per month

Watering plants

Cleansing streets

Cleansing wastewater tank

3 88

Out Process

Environmental and Social Activities The Corporate Environmental and Social Responsibility (CESR) Out Process of the Company puts emphasis on awareness that starts from within the organization and communities developed by the Company before being extended to the society at large. The collaboration from all stakeholders such as staff, customers and business alliances are essential, as the saying goes, “Great environment and society must begin with us. When we are ready, we will promote it among communities developed and managed by us and then surrounding communities (Corporate ESR to Community ESR)”.

The concept is the origin of community management policy which aims to create “Livable Community” in all projects developed by the Company and to be a leading example for other real estate business operators. The environmental and social activities are core activities implemented annually by the Company and Lumpini Volunteer Clubs.

Environmental and Social Activities of the Company

Blood Donation Activities 1. Regular Blood Donation Activities (Daytime) In 2017, the Company aims to provide the National Blood Center, Thai Red Cross Society with one million cc. of blood by organizing “Lumpini Donates Blood in Dedication to the late King Bhumibol Adulyadej” campaign. Blood donation mobile units are available in seven Lumpini projects as follows: 1) 2) 3) 4) 5) 6) 7)

Lumpini Tower (Lum-T) Lumpini Sukhumvit 77 (SK77) Lumpini Condotown Ramindra-Nawamin (LT-RN) Lumpini Ramindra-Laksi (RL) Lumpini Condotown Bodindecha-Ramkamhaeng (LT-BR) P.S.T. City Home (PST) Lumpini Megacity Bangna (LM-BN)

• Blood Donation (Daytime Mobile Unit) in 2016 and 2017 Amount of Blood (Unit) 1,200

1,000

2016

1,092 991

2017

800 600 400

289

200 0

LUM-T

347 342 308

SK77

LT-RN

365 321

RL Project

348 351

LT-BR

299 311

PST

398 194

LM-BN

2. Special Blood Donation Activities (Nighttime) In collaboration with the National Blood Center, Thai Red Cross Society, the Company opens blood donation units at nighttime. In 2017, the nighttime units are opened on three occasions in May, August and November from 17.30-20.30h in three following projects: 1) Lumpini Place Rama 9-Ratchada 2) Lumpini Rama 8 3) Lumpini Park Pinklao The total of 510 units of blood or 178,500 cc. are received from the three nighttime mobile units. The combined units of blood received from daytime and nighttime blood donation units are 3,370 units or 1,179,500 cc.

Support for National Blood Center, Thai Red Cross Society The Company commits to continue supporting the operation of the National Blood Center, Thai Red Cross Society to help encourage the public to donate blood. At present, the Center does not have enough blood reserve to help the patients, especially during Songkran holidays when there is a surge in the demand for blood. In 2017, the Company sponsors the organization of the two following activities:

1. “Summer of Kindness through Blood Donation” Activity Ms. Somsri Techakraisri, Managing Director of Lumpini Property Management Co., Ltd. is the representative of the Company to donate 200,000 THB to the National Blood Center to sponsor the production of t-shirts to be given out as souvenir to those who donate blood between 10-17 April 2017.

2. “World Blood Donation Day” Ms. Nittaya Wongtavilarp, Assistant Managing Director in Brand Management of L.P.N. Development Public Co., Ltd. is the representative of the Company to donate 250,000 THB to the National Blood Center to sponsor the production of t-shirts to be given out as souvenir to those who donate blood on World Blood Donation Day (14 June of every year).

OUT PROCESS

Support for Social Activities (G4-EN31) The Company has been supporting the organization of social activities of communities and government agencies to give back to the society. In 2017, the Company supports the social activities of 16 communities and government agencies as follows: 1) Mongkolwararam Temple 2) Special Education Center, Pathumthani 3) Wattai School 4) Thungmahamek School for Deft 5) Sirikarm Village (near Lumpini Ville Sukhumvit 76) 6) Songkran and Old Age Day Festival, Friends for Friends Club, Samuprakarn Province 7) Chantarasuk Temple 8) Wat Payorm School 9) Rama 9 Youth Center 10) Ban Sarm In community 11) Samakkeesuthawas School, Bangplad district 12) The Orphanage Foundation of the Southern Border Thailand 13) Bungkum Office of Metropolitan Police 14) Takarm Office of Metropolitan Police 15) Saphansung District Office 16) Pasicharoen District Office

Moreover, residents of Lumpini communities and the Company has donated 200,000 THB to the Thai Red Cross Society to help flood victims in the south of Thailand. Donation from the residents:

92,160.25 THB Donation from the Company:

107,829.75 THB

Relationship Building with External Organizations (G4-DMA, G4-EN31) Relationship building is done through the development of communities and government agencies near the projects developed by the Company and the support for environmental conservation activities. The details of the activities are shown in the table below.

Nearby

Organization

Details

1. Bangna District Office

Lumpini Place Bang Na-Km. 3

The area in front of the Registration Department and the meeting room are renovated.

2. Rasburana District Office

Lumpini Ville Rasburana-Riverview 2

The area in front of the Registration Department is renovated.

3. Bang Khae Home Foundation 2

Lumpini Park Petchakasem 98

The pavement at the back of the building is repaired.

4. Bungkum Office of Metropolitan Office

The meeting room, reception area, kitchen and restrooms are renovated.

Environmental and Social Activities of Lumpini Volunteer Clubs In 2017, the Company supports the organization of 13 environmental and social activities of Lumpini Volunteer Clubs as follows:

Activity 1 Save Thai Sea, Plant Coral Reefs

Organized by Pan Nam Jai Ram-Indra Club

Details Activity : Coral planting Date : 6 May 2017 Participants : 90 persons Donation Amount : 5,000 THB

Livable Community 2 Giving Love to Children at Khru Boonchoo Home, Lumpini Sampan Taking the Crabs Back Club to the Sea, Enjoying Thai Fruits

Activity : 1. Musical performance by LPN Ruamjai Band Club 2. Provision of lunch for children at Khru Boonchoo Home 3. Releasing 200 crabs into the sea 4. Dong Tarn beach cleaning Date : 7 May 2017 Participants : 202 persons Donation Amount : 110,000 THB

Club For the 3 Following the Buddha’s Steps along Ladpoh Elderly in Lumpini Canal and in Bangkrachao Community Community

Activity : Relationship building among the elderly Date : 14 May 2017 Participants : 48 persons Donation Amount : 6,000 THB

4 Cleaning Turtle Pond

Activity : Turtle pond cleaning Date : 21 May 2017 Participants : 86 persons Donation Amount : 5,000 THB

Khon Arsa Club

Ruam Pon Khon 5 Kind People of Lumpini Sharing with Kids, Jaidee Lumpini A Trip to Yai Da’s Orchard Arsa Club

Activity : Provision of free lunch and donation of goods Date : 17 June 2017 Participants : 88 persons Donation Amount : 15,000 THB

6 Traditional Wooden Funeral Flowers Making

Activity : Traditional wooden funeral flowers making for ceremonies marking the cremation of His Majesty the late King Bhumibol Adulyadej Date : May - August 2017 No. of Communities Participated : 66 communities No. of flowers made : 19,492 flowers

Livable Community Lumpini Sampan Club

7 12 August Half-Marathon Lumpini Walk-Run For Health Club

OUT PROCESS

Activity : Date : Participants :

Walk-Run 12 August 2017 544 persons. The club was granted Queen Sirikit Cup as the club that has the highest number of participants.

Activity 8 ATV Save the Forest

Organized by Khon Arsa Club

Details Activity : Date : Participants :

Planting of 80 agarwood tree 24 September 2017 81 persons

Pan Namjai 9 Save Thai Sea, Forest Planting, Release Crabs Lumpini Club and Fish to Follow His Majesty the late King Bhumibol Adulyadej’s Initiatives

Activity : 1. Mangrove forest planting and releasing fish at 6th Mangrove Forest Station 2. A trip to Laem Pak Bia Environmental Research and Development Project 3. Relationship building activity at Chao Samran beach Date : 7 October 2017 Participants : 68 persons

10 Save Water, Save Forest, Livable Community Merit Making for Education Lumpini Sampan Club

Activity : Date : Participants :

11 Discussion on “Happiness”

Club For the Elderly in Lumpini Community

Activity : Discussion about happiness and how to be happy everyday Date : 28 October 2017 Participants : 23 persons

12 Building a Check Dam at Srinagarind Dam

Ruam Pon Khon Jaidee Lumpini Club

Activity : Date : Participants : Donation Amount :

13 Music for Children at the Foundation for Children

Club For the Elderly in Lumpini Community and LPN Ruam Jai Band Club

Activity :

Awarding education scholarships valuing 235,000 THB 8 October 2017 117 persons

Building semi-permanent check dam at Srinagarind Dam, Kanchanaburi province 5 November 2017 70 persons 15,000 THB

1. Musical performance 2. Provision of education scholarships and consumers goods to students of Children Village School, Kanchanaburi province Date : 26 November 2017 Participants : 140 persons Donation Amount : 15,000 THB

4 94

As Process

L.P.N. ACADEMY

(G4-LA9, 10, 11)

In 2017, the policy of the Company is to focus on the development of leadership competency of executive staff and coaching skills of managerial staff in order to develop good and decent leaders. The emphasis is also put on capacity development of operational staff to develop their capacity and professional attributes. The information on organizational growth, the recruitment of successors, promotion, position changing, performance evaluation and remuneration consideration is systematically linked with the Human Resources Department. It is to enhance the efficiency of human resources management and development as well as build and maintain the most valuable resource that will take the organization forward as â&#x20AC;&#x2DC;value organizationâ&#x20AC;&#x2122;. L.P.N. Academy is founded to systematically and efficiently develop and train staff of the Company and all subsidiary companies.

1. Competency-Based Development The core mission of LPN Academy is to develop the capacity of staff with their line managers to encourage them to be enthusiastic and eager to develop themselves in terms of knowledge, skills, attributes or attitude to be of the standard expected by the organization. The assessment of capacity is done annually in different forms to assess whether the behavior of each individual reflects each aspect of capacity and how. The objective is to find a gap and prepare individual training and development plan to close that gap. It is also a tool that line managers can use to develop their team.

Core Competency C-L-A-S-S-I-C

Leadership Competency Leadership

Functional Competency

Community Management Division Project Management Division Brokerage Business Department Sales Management Division Community Service Division Maintenance Department

Functional Competency

Core Competency

Community Management Division Project Management Division Brokerage Business Department Sales Management Division Community Service Division Maintenance Department

C-L-A-S-S-I-C

Leadership Competency Leadership

1. Core Competency or C-L-A-S-S-I-C

2. Functional Competency Development

3. Leadership Competency Development

refers to the development of knowledge, skills and qualifications that everyone in the organization should have. Such knowledge, skills and qualifications are regularly trained and staff are encouraged to apply what they learn to their everyday work. The assessment has also continuously been done to build the traits that will support the organization to achieve its goal, mission and vision.

refers to the development of knowledge, skills and qualifications that staff in each department should have so that they can perform their duties and responsibilities in their line of work to achieve the target.

refers to the development of management knowledge, skills and qualifications that are necessary for staff at executive and managerial level who are responsible for managing a team.

AS PROCESS

L.P.N. ACADEMY SOCIAL ENTERPRISE

2. Development and Training Managerial & Leadership Course

Functional Course

The Company has prepared a development and training plan to develop the knowledge and skills. The focus is on the development of knowledge, skills and competency in management of work, team of staff and individual. It is also to build leadership and develop leadership competency to meet the capacity expected by the organization. In the development plan, the training courses can be categorized into two types as follows:

It is the training course that aims to develop knowledge and skills of staff in accordance with the operation of the Company. The emphasis is put on promoting the knowledge, skills and qualifications of staff. The weakness, strength, operational performance in the previous year and professional necessity is analyzed and the training course is designed for each type of work i.e. Sale-Transfer-Brokerage Business, Project Management, Community Management, Maintenance Work, Community Service and Support Fuction (developing ASK for Community Service Officers following the policy to provide assistance to underprivileged women).

1. Core course The course focuses on building a good attitude towards LPN operational standard such as LPN Way, Code of Conduct, LPN Services Culture, LPN Business Practice Platform (3-6-8-10) and social responsibility and participation in organization development towards sustainability.

2. Managerial Course The course focuses on the development of management knowledge, skills and competency and coaching such as Systematic Planning & Effective Presentation with A3 Report, The Seeds Idea Suggestion, etc. Management trainings are conducted in four levels as follows: - High-level executive development plan (Level 11-13) - Middle-level executive development plan (Level 8-10) - Entry level manager development plan (Level 5-7) - Operational staff development plan (Level 2-4)

Elective Course It is the course that builds the knowledge and skills of staff in all departments. The staff are able to choose which topic they would like to learn such as English for Communication, Mind Map, Happiness at Work course, etc. Support Function Mgt.

Community Mgt. Preventive & Maintenance

Sale Mgt.

Effective Supervisory Skill

Service Community Mgt.

Project Mgt.

Leader as Coach

First Line Manager

Functional Course

Manager as Coach Elective Course Managerial & Leadership Course

S-E-R-V-I-C-E-S

The Seeds #3

Code of Conduct LPN Way

Core Course

The Learning Ratio of 70:20:10 The learning ratio of 70:20:10 has been applied in the planning of staff development and training plan. It also includes on the job training and learning from interaction with others in order to apply the knowledge learned in classroom to actual workplace.

70%

70% OJT On the Job Training 1) Morning Talk 2) Sharing After Training or Knowledge and Experience Sharing 3) New Staff’s On the Job Training

refers to learning from job-related experiences at the workplace.

Efficient Development Training

4) Job Enrichment and Job Enlargement

20%

20% Coaching 1) L.8-13 Leader as Coach in Action 2) L.5-7 Manager as Coach in Action

10% refers to learning from society and interaction with others, knowledge sharing, coaching or advice given through social network.

10%

refers to learning from trainings and workshops.

AS PROCESS

Training 1) Standard Course of the Organization 1.1 LPN Way 1.2 RMTC 1.3 SD, CESR, CG และ LPN Green Workshop 1.4 SERVICES 2) Leadership and Management 4) Course 2.1 L.8-13 : Leader as Coach 2.2 L.5-7 : Manager as Coach 2.3 L.2-4 : The Seed Generation 3 3) Professional Course 3.1 Sale and Transfer 3.2 Project Management 3.3 Community Management 5) 3.4 Maintenance Work 3.5 Community Service 6) 3.6 Brokerage Business

L.P.N. ACADEMY SOCIAL ENTERPRISE

Activity to Promote Learning 4.1 Book Briefing 4.2 Knowledge Sharing 4.3 Learning Delivery 4.4 E-Learning 4.5 Morning Talk 4.6 Mind Map 4.7 Learning from Movie External Workshops and Trainings Business Simulation Mobile Technology

Outcome of Development and Training In 2017, the Company aims to create learning and development opportunity of no less than 56 hours/ person/year. In 2017, the average training hours of staff is 80 hours/person and can be categorized by level and gender as follows:

The Company aims to create learning and development opportunity of no less than 56 hours/person/year

85%

Staff by Gender

Female

Training Hours High-ranking executive (L.11-13) Middle-ranking executive (L.8-10) Entry level manager (L.5-7) Operational staff (L.2-4)

Total Average Total Average 1,078.50 119.83 844.00 140.67 5,517.94 149.13 5,266.60 150.47 19,305.84 76.61 12,866.60 71.09 20,292.40 49.61 13,688.52 40.98

Level

Category

L.11-13 L.8-10 L.5-7 L.2-4

High-ranking executive Middle-ranking executive Entry level manager Operational staff

Gender Male Female Total

Male

Average No. Total (Persons) Training Hours Training Hours 15 72 433 743

1,922.50 10,784.54 32,172.44 33,980.92

128.17 149.79 74.30 45.73

No. (Persons)

Total Training Hours

Average Training Hours

556 707 1,263

32,665.72 46,194.68

58.75 65.34

3. Development of Trainers in the Organization In 2017, L.P.N. Academy organizes 20 training courses that are led by 45 trainers of the Company. The learning from the courses can be applied to the operation of the Company. The courses also help revise the knowledge and skills learned. For example, CMTC, Mind Map, A3 Report Presentation Technique, Condominium Act in Community Management, English for Communication, Preparation of Financial Documents of Juristic Persons, I-Prop System, Legal Knowledge in Community Management, Condominium Unit Cleaning (Maid), Preliminary Knowledge in Community Management, New Staff Orientation, Development of Mentor, Information Technology for Sale-Transfer-Community Management Work, Development Course for P&M and LPN Services which is the course that develops internal trainers and prepare them to be ready as the trainers of LPN Service Training Course.

4. E-Learning In 2017, the Company plans to develop L.P.N. Academy website to be more interesting and useful by adding more learning topics. Supervisors will promote online learning to increase learning opportunity which is more conveniently accessible for staff. Overall, the average of 1,243 staff participate in online learning, accounting for 98% of all staff.

Staff participate in online learning, accounting for

98% of all staff.

5. Knowledge and Experience Sharing with the Public and Educational Institutions The Company provides an opportunity for educational institutions, government agencies and private organizations to learn about project development and management concept of the Company in order to cascade the knowledge to the society at large. In 2017, the total of 4 study groups have visited the Company, two of which are governmental agencies and two are private organizations and associations. There are the total of 150 participants. The topics of interest are as follows: - Community management and environmental management (three study groups) - Project design management and construction management (one study group)

6. Budget for Training, Development and Seminar The Company supports the budget of 14,271,951 THB for development, training and seminar events through L.P.N. Academy. The details are as follows: • Internal training costs 5,244,254.31 THB • External training costs 6,298,991.15 THB • Other costs 2,728,705.54 THB The average training cost per person is 11,300 THB.

Other costs 2,728,705.54 THB The Company supports the budget of

14,271,951

Internal training costs 5,244,254.31 THB

THB for development, training and seminar events through L.P.N. Academy.

The average training cost per person is 11,300 THB.

100

AS PROCESS

L.P.N. ACADEMY SOCIAL ENTERPRISE

External training costs 6,298,991.15 THB

7. Promotion of Environmental and Social Responsibility Knowledge of Staff The business operation of the Company is environmentally and socially responsible. The Company strives to develop our staff to be proud of and have confidence in the value of the organization as well as to take part in giving back to the society. The Company commits to provide environmental and social knowledge to staff. The development plan and topic of each year will be determined by the Management and changed in accordance with the current circumstances in the country. In 2017, L.P.N. Academy has organized trainings for staff and executives. The environmental and social knowledge is directly provided in some trainings. In others, the topic is included as part of other courses. For example, the topics of Environmental Management Training will be changed each time to be suitable for the line of work of staff attending that training such as green space management (Green), environmental management and cleaning (Clean) and energy conservation (Lean). The total of 64 training hours are organized. In addition, environmental and social responsibility is established as crucial strategy for business operation. 6 Green Workshop is organized to brainstorm ideas and prepare operational plan. Project management is done in collaboration with trade partners or LPN Team. Compliance with LPN Green Standard Checklist and environmental and social operation will be reported in a monthly meeting. The executives of the Company also participate in establishing a policy and providing environmental and social knowledge to staff working in project management as well as executives and staff of LPN Team in 12 trainings.

hours

are Green Clean Lean training hours.

times

are number of Green Workshop organized to establish the guideline for environmental and social operation.

8. Provision of Knowledge on Anti-Corruption Measures It is required that the directors, executives and staff of the Company and subsidiary companies must strictly comply with anti-corruption policy and measures of the Company. The knowledge on anti-corruption measures are provided and communicated to staff all through the year via trainings, signboards and e-mails. In 2017, trainings on anti-corruption and whistleblower process are organized. Staff will attend a one-hour-training and learn via the E-Learning system. As for new staff, a one-hour training session will be included in the orientation course.

101

SOCIAL ENTERPRISE At present, the problem of labor exploitation especially women labor is of grave concern and is urgently needed to be solved by the collaboration of both government and private sector, especially that of underprivileged female workers who are uneducated and illiterate, some of whom are abused by the employers in terms of wages. Moreover, some female workers are abandoned by their husbands and are single mothers taking care of their children so they have no other options but to work in exploitative organizations and are prone to other social problems such as gambling and drug. The real estate business of the Company involves around various types of services especially cleaning services. The Company has established a unit to provide cleaning services to the communities managed by the Company with the intention to provide an opportunity for underprivileged women in the society to be professionally trained with the focus on cleaning services in “Lumpini” communities. It is also to enhance the quality of life of underprivileged women and their families. Lumpini Property Service and Care Co., Ltd. or LPC was established in 2011 and has been operating following the social enterprise concept in order to generate income, quality of life, dignity and happiness of staff while also working to benefit the society in return. At present, there are approximately 1,800 underprivileged women working at the company. One of the operational KPIs is the happiness of employees. The result is very satisfactory as evident in the survey of the satisfaction of cleanliness services provided to communities and the uplifted quality of life and happiness of staff.

In 2017, the total of 1,766 Community Service Officers are considered whether they meet the criteria of being underprivileged women. It is found that 1,161 of 66% of Community Service Officers meet the criteria while 605 or 34% of them do not fulfill the criterions specified by the Company. With regards to staff with disability and senior staff, they are allocated community service duties and assistance as appropriate.

102

AS PROCESS

L.P.N. ACADEMY SOCIAL ENTERPRISE

Definition of Underprivileged Women • Having low level of education (illiterate or elementary level). • Being a single mother. • Being exploited in terms of wage by former employers. • Being an elderly person (retired). • Being a person with disability (holding a disability card).

In 2017 underprivileged : 1,161 persons

66%

Furthermore, support in other area such as education, career development and happiness is provided to this group of staff in order to enhance their quality of life.

Education Promotion Knowledge and skills in different area are the foundation of improved quality of life of Community Service Officers. The Company has thus always promoted learning and education among Community Service Officers as well as sponsored scholarships for their children. The activities organized are as follows:

1. Literacy project

3. Bilateral program for staffâ&#x20AC;&#x2122;s children

It is to provide basic education and literacy skills to Community Service Officers. The content includes learning about alphabets, vowels, spelling, reading-writing and basic calculation skills. There are the total of 18 participants. The Company aims for all staff to be literate.

It is to support the education of staffâ&#x20AC;&#x2122;s children by enrolling them at Nonthaburi Technical College. The Company sponsors their educational costs (including accommodation) at the amount of 30,000 THB per person. Three children of staff have participated in the program as follows: 1) High Vocational Program in Electric: 2 persons 2) High Vocational Program in Accountancy: 1 person

2. Non-formal education (two-year curriculum) The class is conducted every Tuesday at Lumpini Tower (the headquarters). The Company sponsors the transportation cost of the teachers at the amount of 200 THB per person per day. There are the total of 31 students. The details are as follows: Non-Formal Education Curriculum

- Elementary Level - Lower Secondary Level - Upper Secondary Level Total

2017 (Persons)

2 11 18

In addition, the Company has offered 388 scholarships of 4,000 THB each to the children of staff in 2017, equivalent of 1,552,000 THB.

In 2017, There are 49 participants in the Non-Formal Education Promotion Project, decreasing 11% from 2016 as a number of participants have resigned, been transferred or graduated.

103

Career Promotion In 2017, the activities are as follows: Internal Activity: 1 Course Thai massage training is organized with the participation of 20 staff. The accumulated number of staff trained is 51 persons from six courses. They are able to earn the average extra income of 700 THB per month/person/time.

Internal Activity

External Activity: 1 Course A training course on producing cleaning products is organized for “Ms. Maid Clean Service” by Bangchak Corporate Public Co., Ltd. There are the total of 15 participants who are the residents of eight communities surrounding the refinery.

External Activity

Thai massage training

A training course on producing cleaning products is organized for “Ms. Maid Clean Service”

Participants The accumulated number of staff in 2017 persons trained is persons

Participants in 2017 persons

Promotion of Good Deeds

Voluntary Activities

The Company praises Community Service Officers who do good deeds in the community by collecting and returning lost property to the owners and providing assistance to the residents of Lumpini community. In 2017, the total of 1,237 good deeds are done by Community Service Officers, increasing 75% from those in 2016. Assistance is also provided to four joint owners who are bed-ridden patients.

Community Service Officers are divided into groups to help clean public areas such as temple, community, police station and beach. In 2017, the total of 2,107 social activities are organized, increasing 50% from 2016.

104

Community Service Officers who do good deeds in the community by collecting and returning lost property

Community Service Officers are divided into groups to help clean public areas

the total of

AS PROCESS

1,237good deeds

L.P.N. ACADEMY SOCIAL ENTERPRISE

2,107social activities

Promotion of the Happiness of Community Service Officers The details in 2017 are as follows:

1. Influenza and Hepatitis B vaccination The total of 1,610 staff are vaccinated against influenza and Hepatitis B (increasing 33% from 2016).

2. Assistance for staff in need As a result of severe floods in southern and northeastern Thailand, the Company provides assistance to 11 staff who are affected by the floods. Houses of staff are repaired and ready to move back in. Also, the amount of 60,000 THB is provided to staff who are fire victims.

3. Special assistance for physically incapacitated staff The Company provides special financial assistance to eight staff who are physically incapacitated i.e. staff with disability and staff suffering from illness and needing long-term medical treatment by paying their wage to ease the burden of their family. The overall financial assistance offered is around 500,000 THB per year.

4. Activity to help reduce household expenses The Company sells consumers product at cheaper price (at cost price) to staff such as rice and sticky rice.

5. Provision of loan Loan is provided to staff (without interest) so that they do not have to borrow money from loan sharks. The loan amount of two million THB per year is allocated.

EM Water Production In 2017, the total of 40,852 liters of EM water has been produced for use in cleaning activities of Lumpini communities.

105

5 106

Innovation for Sustainability

Innovation for Sustainability The Company has always given importance to innovation development and promotes an atmosphere to foster innovation in all operational processes. Lateral thinking is identified as one of the core competencies of the organization that will motivate the executives and staff to create new innovations to add values to the products and services. The innovation of the Company can be categorized into three levels as follows:

Strategic Innovation

is the innovation that supports the vision and strategy of the organization e.g. Livable community.

Product Innovation

is the innovation that adds value to the product and service of the Company e.g. LPN Design, LPN Green Project, Living Library and Suan Ruam Jai.

Process Innovation

is the improvement of the operational process or service in response to the needs of customers. For example, B.I.M. system is applied in the construction process and being developed in the facility management process. Other processes including sales process, ownership transfer process and marketing and brand communication are also improved.

Strategic Innovation Livable Community For All “Livable Community For All” strategy is developed from “Livable Community” strategy which is the core strategic innovation that has been implemented for more than 20 years. Since the very beginning, the Company has targeted the customers in the middle to low income group consisting of young people who just start their career and are looking for their own place to live. Such target group is called “D I N K - Double Income No Kids” group. From almost three decades of project development and community management, the Community Management Department has found that the types of residents have been expanded to include older age group and extended families with elderly family members. This finding is in accordance with the fact that Thailand is becoming an aged society. In response to such development, the Company thus decides to further develop the strategy to be inclusive of all age groups. The focus will be on the development of condominium units and common area that are appropriate for the elderly who are still independent so that the “Livable Community For All” will be able to create the real pleasure of living for everyone. Lumpini community is the community in which the residents of all age groups live happily together with great quality of life, environment and society and in the culture of togetherness, care and share.

107

Product Innovation LPN Design The product development of the Company focuses on increasing the value that responds to the needs of consumers while maintaining the upper hand over competitors, leading to the trust in “Lumpini” brand. Throughout the years, the Company has been successful in developing products that meet the needs of customers. The heart of the development and design process of the Company is the development of “LPN Design” concept which has been widely accepted, “LPN Green” concept developed under LEED Standard as well as Mixed Target Development which is the development of project to serve the needs of both office workers and retirees. LPN Design concept starts with the 30 sq.m. studio condominium unit and 60 sq.m. two-bedroom condominium unit which introduce the new standard of condominium living since both are suitable with the Thai ways of living and are easy to maintain. Until now, the main products of the Company have constantly been improved. In spite of its small size, the 26 sq.m. one-bedroom condominium unit is able to respond to the livelihood and needs of the residents. The price range is also affordable and attractive to the target group even though the costs of project development have continuously been increasing. In 2012, the 21 sq.m. condominium unit was launched to answer to the livelihood of the younger generation. This design is firstly introduced in Lumpini Condotown Chonburi-Sukhumvit. In 2016, the Company has conducted an in-depth survey on consumers’ behavior and developed New LPN Design, 35 sq.m. condominium unit with two bedrooms and one bathroom, to answer to the needs of new couples who are building a family together and the needs of extended family. The price is also affordable. The design is firstly introduced at Lumpini Park Petchakasem 98. The architectural design of the project is also modern and environmental friendly.

LPN Green Project and LPN Signature Green Project The Company pays much attention to the impacts on the environment as a result of project development and thus comes up with “LPN Green Project”. This concept is introduced to the public and receives positive feedback in terms of the sales volume. “LPN Signature Green Project” is also developed as a model of green project that emphasizes the reduction of environmental impacts. Moreover, in 2015 and 2016, the Company has developed green design and project management standard which is in accordance with “Green Building” standard of LEED. It clearly showcases the corporate environmental and social responsibility of the Company.

108

INNOVATION

Process Innovation Sale Process As a consequence of the trust the customers placed in â&#x20AC;&#x153;Lumpiniâ&#x20AC;? brand, the products of the Company are in high demand in the market. For some projects, customers have been forming a long queue in front of the project many hours before the sale opening day in order to reserve to buy condominium units. The Marketing and Sale Department has thus come up with tag issuance and draw system so that it would be more convenient for the customers. This is the obvious example of the creation of service value to customers. Furthermore, the Company has embraced mass customization and communicated with customers through online media. As a consequence, the Company is able to significantly increase the sales volume and reduce sale costs.

Building Information Modeling (B.I.M.) in Project Management From 2013, the Company has been applying Building Information Modeling system or B.I.M. to the design and project development process in order to minimize errors in miscalculation of costs resulting from data incompletion. B.I.M. is the technology that processes three-dimensional building information and links all information together such as building form, shape, size and height and construction materials used. It can also show numerical information as well as calculate building space, amount of construction materials needed and construction costs. The Company intends to use B.I.M. to support all project management processes. The main objective is to accurately estimate the construction costs before setting the selling price to reduce operational risks. In terms of environmental and social responsibility, B.I.M. can be used to calculate cost efficiency and minimize the use of consumable materials in design which will directly help reduce wasteful use of natural resources and control costs. For B.I.M. technology to be used efficiently, the operational process and systems must be improved to link up all the information both internally and with trade partners or LPN Team. The operational strategy during the first two years has thus been focused on the provision of trainings to stakeholders through L.P.N. Academy and the development of standard manual for B.I.M. operation so that B.I.M. can be used efficiently in project management by foremen, designers and contractors.

At present, B.I.M. technology is fully implemented in project management. All the projects developed are designed and planned, the construction materials are selected and the construction is managed on B.I.M. The system has also been developed for use in facility management so that the building system and maintenance can be done more conveniently and quickly according to the operational strategy of the Company. It can be said that the application of B.I.M. in construction and facility management process is the initiation of process innovation. It allows the Company to accurately estimate project cost, establish appropriate price strategy and use resources more efficiently to minimize construction waste and environmental impacts. The Company very much hopes that this innovation will play a part in raising the standards of construction and real estate business in Thailand to become more resource efficient, which will promote competitiveness in the market for the benefit of consumers as well as sustainable development in the Thai society.

B.I.M. Road Map In 2013-2017

INTEGRATION

PROCESS PEOPLE & TECHNOLOGY

2013

2014

2015

2016

2017

109

Staff Information

(G4-10)

Number of Staff by Category (G4-LA12) 2015 Male Female 400 583 169 208 29 33 9 8 109 1,448

Staff Level

Type

Level 1-4 Level 5-7 Level 8-10 Level 11-14 Community Service Officers Total

716

2016 Male Female 417 611 175 227 28 32 9 8 87 1,563

2,280

716

2,441

Male 504 186 37 9 83

2017 Female 688 254 39 10 1,638

Total 1,192 440 76 19 1,721

819

2,629

3,448

Gender

Female

Male

76.25 % 2,629 persons

23.75 % 819 persons

Operational Change Statistics (2015-2017) No.

2,996 286

100 9.55

3,157 100.00 534 16.91

Gender

Terminated Staff 2016 No. %

New Hires 2016 No. %

Male Female

114 172

39.86 60.14

134 400

25.09 74.91

222 321

40.88 59.12

89 112

44.28 55.72

116 332

25.89 74.11

156 267

36.88 63.12

Age

Change by Year

Below 30 30-50 Over 50

113 173 -

39.51 60.49 -

344 183 7

64.42 34.27 1.31

429 110 4

79.01 20.26 0.74

116 81 4

57.71 40.30 1.99

251 182 15

56.03 40.63 3.35

286 125 12

67.61 29.55 2.84

Bangkok Nontaburi Patumtani Samutprakarn Udorn Thani Cha-am Chonburi/ Pattaya

262 5 11 8

91.61 1.75 3.85 2.80

438 27 21 20 5 8 15

82.02 5.06 3.93 3.75 0.94 1.50 2.81

486 22 12 3 1 19

89.50 4.05 2.21 0.55 0.18 3.50

181 1 1 14 4

90.05 0.50 0.50 6.97 1.99

380 19 13 3 7 6 21

84.63 4.23 2.90 0.67 1.56 1.34 4.68

388 11 6 4 3 11

91.73 2.60 1.42 0.95 0.71 2.60

Diversity Criteria

Workplace

Total Total Changes

110

2015

2017

2015

No.

3,448 100.00 543 15.75

No.

2,996 100.00 201 6.71

3,157 100.00 448 14.19

2017 No.

3,448 100.00 423 12.27

Recruitment of New Staff and Resigned Staff by Gender, Age and Region Recruitment of New Staff and Resigning Staff by Gender

Recruitment of New Staff and Resigning Staff by Age

Recruitment of New Staff and Resigning Staff by Region

No. of Staff (Persons)

450 400 350 300 250 200 150 100 50 0

500 450 400 350 300 250 200 150 100 50 0

321 267 222 156

Male

Female

Gender

429

286

110 125 4 12

<30

30-50

Age (Years)

>50

(G4-LA1, G4-LA12) Newly recruited

Resigned

486 388

22 11

12 6

Bangkok Nonthaburi Patumtani

3 4

19 11

Samut prakarn

Pattaya/ Udornthani Chonburi

0 0

1 3 Cha-am

Region

Injury Rate, Occupational Diseases Rate, Lost Day Rate and Absentee Rate (G4-LA6)

IR = ODR = LDR = AR =

Number of Injuries x 200,000 Total Hours Worked

20 x 200,000 50 x 40 x 3,448

= 0.58 ( 0.58 time per 200,000 working hours)

Staff Suffered from Occupational Diseases = Total Hours Worked x 200,000

0 x 200,000 50 x 40 x 3,448

= 0 (0 time per 200,000 working hours)

119 x 200,000 50 x 40 x 3,448

= 3.45 (3.45 days per 200,000 working hours)

21,271 x 200,000 246 x 3,448

= 5,015.52 (5,015.52 days per 200,000 working hours)

Total Number of Lost Time x 200,000 Total Hours Worked

Total Days of Absence in a Period x 200,000 = Total Days Worked

Accident Statistics (G4-LA6) • Type of Accident

20 workers have an accident.

• Location Injury and occupational disease Injury Absence from duty Death

Gender

Head Office

Region

Male

Female

4 2 0

16 7 0

Bangkok Pattaya 15 8 0

5 1 0

The categorization of the type of accident shows the main causes of injury. Other types of injury include sharp object injury, snakebite and assault by co-worker (50%). There has never been a fatal accident that causes death in the workplace at LPN Group and the Company intends to keep it that way.

Project Construction Sites

0 time 20 times

• Gender

Female 16 staff

Male 4 staff

80%

20%

111

No. of Staff Evaluated during Reporting Period (G4-LA11) Evaluation During Reporting Period Gender Male Female Total

Total 819 2,629 3,448

No. of Staff Evaluated No. of Staff Not Evaluated 803 16 2,611 18 3,414 34 Evaluation During Reporting Period

Other Development Guidelines

Male

1) Develop online evaluation to be real-time. 2) Evaluate staff based on Individual KPI. 3) Evaluate staff performance twice a year. 4) Evaluate staff behavior based on the core value of the organization. 5) Develop and improve performance of staff based on the result of the evaluation with L.P.N. Academy. 6) Implement a job rotation program among management staff to provide opportunity for growth and learning. 7) The job rotation in the Community Management Department will be implemented every four years to provide opportunity for growth and learning as well as to promote transparency of the operation.

Total

Evaluated Not Evaluated Total

% Evaluated Among Male Staff

% Not Evaluated Among All Staff

98.05% 1.95% 100%

23.29% 0.46% 23.75%

803 16 819

Evaluation During Reporting Period Female

Total

% Evaluated Among Female Staff

% Not Evaluated Among All Staff

Evaluated Not Evaluated Total

2,611 18 2,629

99.32% 0.68% 100%

75.73% 0.52% 76.25%

Salary Base and Remuneration of Male and Female Staff by Type of Employment in Significant Operation Area (G4-LA13) Staff Level Maid Level 1-4 Level 5-7 Level 8-10 Level 11-14 Total

Male

Female

No./Person

Salary

83 504 186 37 9

36,104 7,564,561 6,283,190 2,418,720 1,847,520

Other Remuneration 73,990 1,072,220 389,020 63,740

819

18,150,095

1,598,970

No./Person

Salary

1,638 688 254 39 10

574,988 11,190,319 8,048,290 2,504,570 1,764,610

Other Remuneration 146,520 1,409,860 365,720 74,180

2,629

24,082,777

1,996,280

Note: - Salary refers to the salary base of staff per month. - Other remuneration refers to other remuneration such as position fee, Site Manager fee, internet fee, telephone charges, gasoline, professional fee and duty fee per month.

112

Meterity Leave in 2017 Note : Information as of 31 December 2017 (G4-LA3)

10.25% Resigned

(4 Persons)

82.05% Returned to Work

(32 Persons)

Took Maternity Leave persons

7.7%

Currently On Maternity Leave

(3 Persons) Benefit for Staff (G4-LA2) Benefits 1. Life Insurance • Group Insurance - Life Insurance / Accident Insurance - Health Insurance (Staff)

Permanent

Contractual

Daily

Maid

Security Relation

• •

•

• • • • • • • • • • •

• • •

• •

• • •

•

• • • • • • • •

• •

• • •

•

2. Healthcare • Medical doctor at Office (8 hrs./week) • Annual Medical Check-up • Fitness Membership • Sports Clubs • Flu Vaccine • Dispensing of Medication • Nursing Room • Breast Pumping Corner • Drinking Water • Social Security • Compensation Fund

3. Other • Uniform for New Staff • Annual Uniform • Sourvenir Pin for 10, 15 and 20 Years of Service • Awards for Good Deeds • Free Education and Education Promotion • Career Trainings for Development • Scholarship for Staff’s Children • New Year Party • Allowances - Sickness - Giving Birth - Marriage - Death of Relatives (Staff) - Death of Staff • Loan • Provident Fund • Retirement Fund

• • • • • • • •

113

Benefits 4. Benefit for the Disabled The Company employs staff with disabilities as required by law and provides them with benefits that are similar to other employees.

5. Meternity Leave Female staff can take a paid maternity leave for 90 days, 45 of which will be paid by the Company and the rest by the social security fund.

6. Retirement Policy The retirement age of staff are 55 years and 60 years. Staff will receive a compensation other than that required by law. Staff who have been working with the Company for longer than ten years will receive a retirement fund at the rate of their final salary. Staff will receive the reward of 0.5 month salary for every service year that exceeds the first ten years but the maximum reward must not exceed 12 months.

7. Right to become a shareholder None

Percentage of Total Labor Force in the Welfare Committee Freedom of Assembly and Negotiation (G4-11) (G4-LA5) L.P.N. Group respects the right of assembly and negotiation of staff. The Welfare Committee is the platform for all staff to take part in providing recommendations and guidelines on the provision of welfare to the executives. At present, the Welfare Committee comprises 20 members who are representatives of staff from all levels and are elected by their colleagues. The duties and responsibilities of the Committee according to Section 96 of Labor Protection Act B.E. 2541 are as follows: 1. Discuss with an employer in relation to the provision of welfare to employees. 2. Provide advice and recommendations to an employer regarding the provision of welfare to employees. 3. Inspect, control and oversee the provision of welfare which an employer provides for employees. 4. Provide opinions and guidelines to the Welfare Committee on the provision of welfare for the benefit of employees.

Workplace

7 0* 7 7 7

371 38 1,042 162 1,835

6 0 3 3 3

1 0 4 4 4

2 0 0 2 5

5 0 6 4 2

0 0 1 1 0

260 111 209 135 19 25 11 19 166 876 800 214 93 53 94 69 72 1,763 1,826 4

27 2 28 15 5

2.31% 0.00% 1.81% 4.35% 4.17%

Total

3,448

586 2,862 2,913 458

77 12.64% 5.89%

Site

Site 0.90% 0.00% 0.46% 4.30% 0.23%

0.96% 3.70% 0.00% 0.00% 0.00% 2.80% 3.77% 4.26% 0.27% 50.00%

0.00% 0.00% 3.57% 6.67% 0.00%

5.00% 60.76% 10.24%

* Since the number of staff of Pornsanti Co., Ltd. is less than the minimum number required by the Labor Protection Act, the company dose not have any representative in the Welfare Committee.

114

Executive (8-14)

LPN PST LPP LPS LPC

Site

Level Management (5-7)

Executive (8-14)

Operational (1-4)

Executive (8-14)

Level

Operational (1-4)

Workplace

Level

Management (5-7)

Workplace

Percentage

Management (5-7)

No. of No. of Committee Staff

No. of Staff

Operational (1-4)

Company

No. of Committee Member

LIVABLE COMMUNITY FOR ALL

115

External Assurance Report

116

117

SDGs INDEX SDGs

Business Theme

GRI Indicators

Page SD 20, 47, 110 SD 102-105

1. End poverty in all its forms everywhere

Diversity and Equal Opportunity Social Enterprise

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

G4-SO1

3. Ensure healthy lives and promote well-being for all at all ages

Local Communities Occupational Health and Safety

G4-SO2 G4-LA5 G4-LA6 G4-LA7

SD 66 SD 45-46, 66-69, 111, 114

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Training and Education

Local Communities

G4-LA9 G4-LA10 G4-LA11 G4-SO1, SO2

SD 120 SD 118-119 SD 138 SD 66-69

5. Achieve gender equality and empower all women and girls

Diversity and Equal Opportunity

G4-LA12

SD 20, 47, 110

6. Ensure availability and sustainable management of water and sanitation for all

Water

G4-EN8 G4-EN10

SD 86-87

7. Ensure access to affordable, reliable, modern energy for all

Energy

G4-EN3 G4-EN6 G4-EN7

SD 52-55, 84-85

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Economic Performance

G4-EC1

SD 48-51

Employment

G4-LA1 G4-LA2 G4-LA3

SD 20, 47, 110-113

Occupational Health and Safety

G4-LA5 G4-LA6 G4-LA7

SD 45-46, 66-69, 111, 114

Labour Practices Grievance Mechanisms Economic Performance

G4-LA16

SD 40

G4-EC1

SD 48-51

Employment

G4-LA1 G4-LA2 G4-LA3

SD 20, 47, 110-113

Diversity and Equal Opportunity

G4-LA12

SD 20, 47, 110

9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 10. Reduce inequality within and among countries

118

SDGs

Business Theme

GRI Indicators

Page

11. Make cities and human settlements inclusive, safe, resilient and sustainable

Economic Performance

G4-EC1

SD 48-51

12. Ensure sustainable consumption and production patterns

Effluent and Waste

G4-EN22 G4-EN23 G4-EN27 G4-EN1, EN2 G4-EN34

SD 72, 82-87

G4-EN22 G4-EN23 G4-EN27 G4-EN1 G4-EN34

SD 72, 82-87

13. Take urgent action to combat climate change and its impacts*

Products and Services Materials Environmental Grievance Mechanisms Effluent and Waste Products and Services Materials Environmental Grievance Mechanisms

SD 20, 52-57, 69 SD 66-70,107-109 SD 62-65

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Anti-Corruption

G4-SO3, SO4, SO5

SD 40-41, 101

17. Strengthen the means of implementation and revitalize the global partnership for sustainable development

Environmental Investment

G4-EC1

SD 50-53

119

GRI INDEX GENERAL STANDARD DISCLOSURES GENERAL Page Number STANDARD (or Link) DISCLOSURES STRATEGY AND ANALYSIS

G4-1 G4-2

NOTE

SD 3 AR 261-263

ORGANIZATIONAL PROFILE

G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 G4-13 G4-14 G4-15 G4-16

SD 14 SD 15, AR 265-268 SD 14 SD 14 SD 14 AR 63-65 AR 72-73 SD 110, AR 232 SD 114 SD 22-23, 42 AR 219 SD 19-20, AR 263 SD 3, 10, 17, 28 SD 117

The company is a member of the Thai Real Estate Association and Thailandâ&#x20AC;&#x2122;s Private Sector Collective Action Coalition Against Corruption : CAC.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 G4-18 G4-19 G4-20 G4-21 G4-22

SD 15 SD 28-29 SD 30 SD 31 SD 31 SD 10

G4-23

SD 28

There are no restatements of information provided in previous reports.

STAKEHOLDER ENGAGEMENT

G4-24 G4-25 G4-26 G4-27

SD 24-27 SD 21, 24 SD 24-27 SD 24-27

REPORT PROFILE

G4-28 G4-29 G4-30 G4-31 G4-32 G4-33

SD 28 SD 28 SD 28 SD 30 SD 120-122 SD 116-117

GOVERNANCE

G4-34

AR 182-184

ETHICS AND INTEGRITY

G4-56 G4-57 G4-58

120

SD 33-35 SD 38 SD 38

L.P.N. Sustainability Development Report 2016 Annual

External Assurance

SPECIFIC STANDARD DISCLOSURES GENERAL STANDARD DISCLOSURES

Page Number (or Link)

Identified Omission(s)

Reason(s) for Omission(s)

Explanation for Omission(s)

External Assurance

INDICATORS BY ASPECTS CATEGORY : ECONOMIC ECONOMIC PERFORMANCE

G4-DMA G4-EC1

SD 48-51 SD 50

CATEGORY : ENVIRONMENTAL

MATERIALS

G4-DMA G4-EN1 G4-EN2

SD 66-68, 107-109 SD 70 SD 70

ENERGY

G4-DMA G4-EN3 G4-EN6 G4-EN7

SD 84-85 SD 84 SD 85 SD 52-55

WATER

G4-DMA G4-EN8 G4-EN10

SD 86 SD 87 SD 87

EFFLUENT AND WASTE

G4-DMA G4-EN22 G4-EN23

SD 82-83, 86-87 SD 86-87 SD 72, 82-83

PRODUCTS AND SERVICES

G4-DMA G4-EN27

SD 20, 52-57 SD 56-57, 69

OVERALL

G4-DMA G4-EN31

SD 89-93 SD 91

SUPPLIER ENVIRONMENTAL ASSESSMENT

G4-DMA

SD 42-43

ENVIRONMENTAL GRIEVANCE MECHANISMS

G4-DMA G4-EN34

SD 62-63 SD 64-65

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK EMPLOYMENT

G4-DMA G4-LA1 G4-LA2 G4-LA3

SD 20, 47 SD 110-111 SD 46, 113 SD 45, 113

SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK OCCUPATIONAL HEALTH AND SAFETY

G4-DMA G4-LA5 G4-LA6 G4-LA7

SD 45-46, 66-69 SD 45 SD 45, 111 SD 45-46, 111

121

SPECIFIC STANDARD DISCLOSURES GENERAL STANDARD DISCLOSURES

Page Number (or Link)

Identified Omission(s)

Reason(s) for Omission(s)

CATEGORY : SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK TRAINING AND EDUCATION

G4-DMA G4-LA9 G4-LA10 G4-LA11

SD 95-98 SD 99 SD 98, 104-105 SD 112

DIVERSITY AND EQUAL OPPORTUNITY

G4-DMA G4-LA12

SD 20, 47 SD 110

EQUAL REMUNERATION FOR WOMEN AND MEN

G4-DMA G4-LA13

SD 20, 46 SD 112

LABOR PRACTICES GRIEVANCE MECHANISMS

G4-DMA G4-LA16

SD 40 SD 40 SUB-CATEGORY: HUMAN RIGHTS

HUMAN RIGHTS GRIEVANCE MECHANISMS

G4-DMA G4-HR12

SD 40 SD 40, 63 SUB-CATEGORY: SOCIETY

LOCAL COMMUNITIES

G4-DMA G4-SO1 G4-S02

SD 66-71, 76-79 SD 66-68 SD 69

ANTI-CORRUPTION

G4-DMA G4-S03 G4-S04 G4-S05

SD 40-41 SD 41 SD 41, 101 SD 41

CUSTOMER HEALTH AND SAFETY

G4-DMA G4-PR1 G4-PR2

SD 52-55 SD 56-57 SD 56-57 SUB-CATEGORY: PRODUCT RESPONSIBILITY

PRODUCT AND SERVICE LABELING

G4-DMA G4-PR5

SD 58-61 SD 62

MARKETING COMMUNICATION

G4-DMA G4-PR7

122

SD 58-61 SD 64

Explanation for Omission(s)

External Assurance

Satisfaction Survey Form for the Readers of Sustainability Report of L.P.N. Development Public Co., Ltd.

Section 1: General Information 1.1 Relationship with the Company Shareholder Staff Customer Joint Owner/ Resident

Trade Partner Investor Commercial or Financial Institution General Public

1.2 Have you ever read a Sustainability Report of the Company before? Yes

Section 2: Report Content and Presentation

Strongly Agree

Agree

Strongly Disagree Disagree

2.1 Your awareness and understanding of the overall operation of the Company is increased. 2.2 Your awareness and understanding of the operation on sustainability of the Company is increased. 2.3 The content of the Report reflects important operations of the Company as expected. 2.4 The content is clear. 2.5 The content is easy to read and understand. 2.6 The content is useful. 2.7 The report layout is beautiful 2.8 Overall, you are satisfied with the Report.

Section 3: Sustainability Reporting Improvement 3.1 This Report addresses the issues that are of your interest. Yes No (please specify the issues that you are interested in and should be included in the next Sustainability Report.)

3.2 Other comments or suggestions

Please submit the form to: Department of Organizational Communication L.P.N. Development Public Co., Ltd. Address : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120 Email : bnd@lpn.co.th

Your comments and suggestions are valuable for the sustainable development of the Company. Thank you very much for your cooperation. 123

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ฝายพัฒนาแบรนด บริษัท แอล.พี.เอ็น.ดีเวลลอปเมนท จำกัด (มหาชน) 1168/109 ชั้น 36 อาคารลุมพินี ทาวเวอร ถนนพระราม 4 แขวงทุงมหาเมฆ เขตสาทร กรุงเทพมหานคร (แบบสอบถามความคิดเห็นของผูอานรายงานความยั่งยืน)

124

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L.P.N. Development Public Co., Ltd. 1168/109 Lumpini Tower, 36th Floor, Rama 4 Road, Thung Maha Mek, Sathorn, Bangkok 10120

126

Tel. 02-285-5011-6 Call center : 02-689-6888