LPN : Annual Report 2010

Page 1

ANNUAL REPORT

2010 Our achievement is from everyone's hapiness

Lumpini’s Success is Our Happiness At Lumpini, we are not only committed to manage residential condominiums but also to create true happiness under “Vibrant Community� concept. We manage all projects with our heart with the determination to deliver additional values that go beyond economic success for endless happiness of all.

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Contents

Goal: For Sustainable Growth Message from the chairman Corporate Governance Policy

1 4 5

The Happiness of Success Financial Statement Summary Performance in 2010

7 8 10

Vibrant Community: Unique Quality of Life Development of Condominium, Brand and Vibrant Community Management of “Lumpini� Logo and Brand Research and Development

11

Passing on the Happiness: Giving Back to the Environment and Society Development of Corporate Environment and Social Responsibility Operational Guidelines for Corporate Environment and Social Responsibility Operating the Business in accordance

14 16 19 21 22 24

Multiplying Happiness, Continuous Development Business Revenue 49 Organization Chart 51 Board of Directors 52 Happy with Great Opportunities in the Future Competitive Environment Risk Factor Direction of the company’s Operation in 2011

61 62 65 68

Transparent: Adhering to Good Corporate Governance Practices 71 Audit Committee Report 2009 72 Nomination and Remuneration Committee Report 74 Changes to the Management Structure 76 Management Structure 80 Code of Business Conducts 105 Internal Control 108 Connected Transactions 110 Legal Disputes 116 Financial Report Explanations and Analysis of the Management Accounting Policy Auditor’s Report and Financial Statements Appendix

117 118 120 124 161

Goal: For Sustainable Growth

Lumpini’s business operation principles are to create balance in all aspects under good corporate governance for all to achieve quality growth together.

Achieving Sustainable Growth

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3

Message from the Chairman

Dear Shareholders, Throughout the last 20 years of the operation of L.P.N. Development Public Co., Ltd., we have committed to encourage young professionals and new families who are our target group < =( ! " proud to have enhanced a great quality of life and environment

XY)YYY <@ = leads to the real pleasure of living. We have been sincerely f # # $ <> " = strategy in hope to create not only a strong community but also a caring one with beautiful culture of living together. In 2010, the performance of the Company exceeded the expectation as $ # experiences and preparedness in all dimensions of the operational process driven by the capacity and contribution of our executives and employees. We achieved the highest sale ZZ :[ # ZYY: and were able to pay the dividend to shareholders at the higher rate from the previous year. In 2011, the new vision of the " $ + / " planning which responds well to the current situation. We are

$ " " # # " all stakeholders in the year to come. In parallel to the expertise in the development and management of condominiums which is the main mission of the Company, we still give very much importance to the caring for the society and environment. Every year, we have a policy to create good environment starting from within the organization and the community developed by the Company before expanding to the society of neighboring communities and the society at large. ! # " <@ = share with the underprivileged sector of the society as well.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

The strong and continuously growing performance of the Company is based on the good corporate governance principle to ensure transparency. This has created trust and

$ <@ = " $ # / # who further refer our new products to new group of customers. In 2010, the Company received many awards and honors such as Excellent Corporate Governance (Level 5) Award from the Securities Exchange Commission of Thailand and Thai Institute of Directors Association (IOD) and Good Real Estate Developer of the Year ZYY:%ZY3Y * $ ? Protection Board for the second consecutive year. The Company had also been nominated for Best CEO Award of the SET Award 2010 from the Securities Exchange Commission and IOD. All of these emphasize that the Company is the organization of high quality. Last but not least, I would like to express my gratitude to all shareholders for always trusting and supporting the Company. Your support will drive the Company forward as we have never stopped developing the value of our products and services in order to create happiness for the customers and share the success with the shareholders and stakeholders fairly and sustainably forever.

Pakorn Thavisin Chairman of the Board of Directors

Corporate Governance Policy L.P.N. Development Public Co., Ltd.

The Board of Directors gives importance to the Principles of Good Corporate Governance by emphasizing the transparency $ $ # shareholders, investors and all stakeholders. The guideline to # $ # # principles as follows:

1. The company is to treat all shareholders and stakeholders equally and fairly. 2. The directors of the company are to dedicate themselves to the company and to be prudent and transparent in the $ # " company, shareholders and stakeholders. 3. The company has established the Code of Business Conducts for the Board of Directors and staff as a principle and guideline for the compliance with the corporate governance.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

5

The Happiness of Success

Our achievement is created from the success of delivering quality “home” and realizing “Vibrant Community” concept which makes Lumpini brand >[< \?]> ^= _^=`

Summary of Financial Statements

Unit: Million THB 2007 2006

2010

2009

2008

10,381.36 4,483.41 2,811.96 922.78 426.95

8,088.04 2,902.87 2,004.06 541.66 685.63

8,846.49 3,781.48 1,403.97 681.92 709.99

7,175.76 4,532.36 501.64 660.72 678.53

5,969.80 3,485.15 276.16 837.75 617.67

890.86 862.65 4,299.54 1,475.70 6,081.82

761.49 259.00 2,819.13 1,468.17 5,268.91

2,063.69 530.67 4,362.02 1,475.70 4,484.48

1,202.01 501.00 3,348.80 1,475.70 3,826.96

1,033.89 230.00 2,657.43 1,475.70 3,312.37

Operational Performance Revenues from sales Total revenues Costs  Â‚@ ƒ

9,676.23 10,047.24 6,357.44 ) 3 ( : 3)X X(:

8,267.99 8,592.45 5,678.21 Z)€ :( : 3) € (X:

7,018.71 7,303.69 4,826.17 Z)3:Z(€ 3)ZY€(

6,574.22 6,823.77 4,294.89 Z)Z :( :Z (

4,747.84 5,020.49 3,213.88 3)€ (:X X€(Z

Financial Ratio * Book value per share Â… Â Â # Return on Equity Return on Assets Dividend per share

4.12 3(33 3X(Z: 28.84 17.73 **

3.59 Y(: 3€( 3 27.86 16.05 0.50

3.04 Y( Z 3X(€Y 29.01 15.05 0.4115

2.59 Y(X 3 (XY 25.99 14.11 0.32

2.24 Y(€Z 3€(Z 24.28 14.58 0.26

Assets Total assets Land and cost of project under development Inventories Land and cost of project held for development Assets for rent-net Liabilities and Shareholders' Equity Short-term loans Long-term loans Total liabilities Issued and fully paid-up share capital Shareholders' equity

* **

Weighted average shares Pending Approval from the Annual General Meeting of Shareholders in 2011  † 3ƒ $ $ ‡ Zƒ # $ 3Y(Y ! U 3(Y ! U ZYY

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Balance Sheet

MILLION BAHT

Total assets

Total liabilities

Shareholders' equity

2006

2006

2006

5,969.80

2,657.43

3,312.37

2007

2007

2007

7,175.76

3,348.80

3,826.96

2008

2008

2008

8,846.49

4,362.02

4,484.48

2009

2009

2009

8,088.04

2,819.13

5,268.91

2010

2010

2010

10,381.36

4,299.54

6,081.82

Income statement Revenues from sales

MILLION BAHT

Total revenues

[ #

10,000

9,676.23

1,500

500

10% 2006 2007 2008 2009 2010

1,000

927.74 765.23

34.30% 31.32%

30%

1,636.97 1,358.69 1,205.44

40%

20%

1,000 2006 2007 2008 2009 2010

2,000

31.24% 34.67% 32.31%

1,000

7,303.69 6,823.77 5,020.49

4,747.84

5,000

10,047.24 8,592.45

8,267.99 7,018.71

6,574.22

5,000

10,000

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50%

100 2006 2007 2008 2009 2010

2006 2007 2008 2009 2010

Financial Ratio BAHT U &

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2

5

30

25

0.5

0.50 0.41 0.32 0.26

17.73 16.05 15.05 14.11

0.93 0.82 0.63

0.52

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15

14.58

1.11

1

2.59 2.24

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20

25.99 24.28

4.12 3.59 3.04

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28.84 27.86 29.01

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0 2006 2007 2008 2009 2010

0 2006 2007 2008 2009 2010

0

0 2006 2007 2008 2009 2010

2006 2007 2008 2009 2010

2006 2007 2008 2009 2010

** Pending Approval from the Ordinary General Meeting of Shareholders in 2009

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Summary of the Performance in 2010

L.P.N. Development Public Co., Ltd. is the leader in residential condominium development under “Lumpini� brand with an emphasis on the middle and lower-middle target group who are in need of a quality urban residence. The operation of the Company is based on the balance of all dimensions ) ) & # &) $ " # $ corporate governance. During the past year, the Company had successfully achieved various goals and exceeded expectations both in terms of quality and quantity. In 2010, the gross income of the company exceeded 10,000 million THB which had grown at the rate of 17% from the year 2009. Moreover, the Company was awarded Excellent Corporate Governance (Level 5) Award from the Thai Institute of Directors Association (IOD) and was praised by the ? of the Consumer Protection Board to be the “Good Real Estate Developer� for the second consecutive year. In November 2010, the Company was also nominated for SET Award 2010 in the category of Best CEO Award which was the Company’s second nomination for such Award. The performance of the Company in 2010 in terms of sale had exceeded the target especially in quarter 1 when the sale of the Company was as high as 6,500 million THB as a result of the openings of 2 mega projects, namely, Lumpini Place Ratchayothin and Lumpini Place Rama4-Kluaynamthai. The value of these 2 projects alone was 4,500 million THB. The sale of the Company for the whole year was 15,000 million THB which was 2,000 ! U # # 3 )YYY ! U( !

$ <@ = brand. The Company, therefore, committed to maintain and communicate its success to the customers by delivering valuable products and services under LPN Design concept and Vibrant Community strategy. As for the development of products under the LPN Design concept, in 2010, the Company piloted the development of 22 sq.m. condominium unit at Lumpini CondoTown Ramindra-Nawamin Building D. This was the product in the same line as the 26 sq.m. condominium unit which had been developed earlier and was widely accepted. ! # ZY3Y) $ $ X K ) ) @ $ ! U #& ) @ J ) @ J %Š ) @ $ ! J $ % U $ # ; $ @ & J $ %J ) 3 ):3Y ! U( ! & # K 33[ X )X€3 $ $

$ $ 3X[ & $ $ # $ $ $ ZY3Y ) 3 ( ! K $ $ "

$ @ > U #& ) @ J :%J $ 3) @ > Rajburana-Riverview, Lumpini CondoTown J $ % U $ # *)U) ) @ $ ! U #& $ @ > @ % & ( Furthermore, the Company has also been giving importance to brand communication throughout the year. The Company started to engage a consultant company with expertise in brand management to plan and coordinate the organization’s brand communication strategy for the unity of the brand and to entail concrete results. The focus was still on the “Vibrant Community� strategy. Building on the success of the strategy from the previous year, in 2010, the Company produced 4 short films " $ <@ = $ + # $ <@ = society and communicated this mainly through online channel which was cost-effective and able to reach the target group directly. The “30 Happy Days� and “Happiness of Caring� projects carried on in 2009 and 2010 won the first - U #& & * ; * ‚U*; * $ƒ category of Interactive and Digital Media (Web-site Design). ‹ # $ ) 3 ; " ZY3Y) 3Y) 3( X ! U) Z ( €[ )Y (Y ! U ZYY: "

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# $ $ )Z::(€ THB in 2010 or equaled to 52.51% increase as a consequence of both short-term and long-term loans of 733.02 million THB, the increase of trade account payable and notes payable of 173.65 million THB as well as the increase of advance from customers of 325.16 million THB. The Company " $ $ K ) ) @ & & ) @ J $ @ J %Š as $ ' $ ( * 3 ; " ZY3Y $ ZYY:) + $ 3 Y(Y ! U ' $ 3 (33[) resulting from ownership transfer which met the target. Sale of assets and dividend from subsidiary companies also contributed to an increase of Z 3( Z ! U $ X( ! U ( ! $ " % % ' $ Y(ZY†3 3 ; " ZYY: Y(Z:†3 3 ; " ZY3Y $ K ) ) @ & & ) @ J $ @ Rama 4-Kluaynamthai.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Vibrant Community: Unique Quality of Life

More than 60 projects developed by Lumpini deliver great experiences to the residents and create additional values of being “Vibrant Community” which makes us different from the competitors and creates faith in “Lumpini” brand to

Over 60 high quality projects. The LPN.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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! $ $ %

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Development of Condominium, Brand and Vibrant Community

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7 Projects 3,000 Units 7,000 People 1989-1998

17 Projects 7,000 Units 17,000 People 1999-2003

25 Projects 9,200 Units 23,000 People

2004

32 Projects 11,700 Units 30,000 People

2005

36 Projects 16,000 Units 40,000 People

2006

44 Projects 27,000 Units 68,000 People

2007-2008

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61 Projects 40,000 Units 125,000 People

2009-2010

Beginning of "Lumpini" brand together with the development of "Vibrant Community"

Initiation of City Condo. Development of  <`^‚_ ƒ^]< Condominium

Development of Small Size Township

Development of "Lumpini CondoTown" brand to respond to the needs of city dwellers.

Search for the identity of "Lumpini" brand city dwellers and be ready to grow sustainably with stability.

Development of the special "Lumpini Park" brand to be a "Vibrant Community' and for a good quality of life of city dwellers.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Management of “Lumpini� Logo and Brand

Logo and brand are intangible assets which all companies aim to create, maintain and communicate to their target groups. Amidst severe competitive situation in the market, most of the successful brands have clear identity and usually commit to exceed customers’ expectation in the delivery of products or services. The “organizational culture or value� is the main drive to create value and business ethics. Huge budget for investment in advertisement and public relations to promote a brand in a short-term period in hope to increase sales without any sense of responsibility no longer helps a company to achieve its target, especially now that consumers understand and are more aware of their rights. The Company realizes the fact and thus establishes a guideline to build and manage brand based on hands-on experience in order to create brand awareness and trust which will entail brand bonding and referral. The Company refrains from investing huge budget in advertisement to

" $ $ $ < > = # - # # " $ # # $ ( Throughout 20 years of operation, the factor which plays an important role in creating sustainable growth of the Company is consumers’ trust in “Lumpini� brand, resulting from products value from strategic location, condominium units under LPN Design concept, various aspects of the projects, as well as value of services which are gradually developed by the Company. Also, customers’ experiences management and after sale service such as community management under “Vibrant Community� # # ' $ strength of the brand which are widely accepted.

“Vibrant Community� Strategy to Drive “Lumpini� Brand The Company is committed to create and deliver true happiness of living to all members of “Lumpini� family in order to be the “community where residents can happily live together in the perfect components of great environment, society and culture.� The Company has " $ # # ( @ H # () @ $() $ $ $ 1992, is directly responsible for full community management services under the F-B-L-E-S guideline which consists of: (1) Facility Management Common facility management is one of the important components of a community and thus main task of community management. H # ; " " # # $ ( ( # # $ " $ #( ! H ; & & # $ lives and properties of joint owners or all residents. Waste water treatment system will also be maintained as it can directly impact the environment.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

(2) Budget Management ! " $# # $ K $ & " $ " * H # ’ ? " # " $ # ' K $ ( ‡ $ $) $ $ " " $( (3) Life Quality Management H # $ $ # $ " $# " ' K # ) # $ $ # # $ $ ( > ! # - $ " $ # $ # $

( ! # " $ $ $ " $ $ # " # ( * $ " † % H * H # ’ ? ) $ $ # # " ‡ ! K ( % J " $ # $ $ $ $ " # # ) & ) # $ )  “ $ $ # $ $ ( % <@ ‡ = " $ ZYY:) ‹ &%J * H K Š # $ / # # (#( " $ # ( % "

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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(4) Environmental Management The Company gives very much importance to the environment and focuses on environmental aspects that will have impacts on joint owners and communities surrounding the project by adhering to “Green Clean Lean� principles such as waste water treatment to meet the standard of the government and to reuse waste water to water plants in the project, waste management by waste segregation for easy disposal or recycling, energy conservation, maintenance of green space or tree planting within the condominiums and in neighboring areas to create green space in the community and Bangkok. All the activities above are done to upgrade the quality of life of urban residents. In order to emphasize the importance of environmental management, the Company establishes a department to be directly responsible for supporting and raising environmental awareness and organizing activities to restore the surrounding environment which is affected by the development of the project both before and after construction. (5) Security Management The Company is very strict with the security management system and establishes a Security Department to manage safety within K ( ! # $ $ " $ ' $

) $ ( ! " $ & " $ with related governmental agencies for the highest safety of community members. Brand Communication In 2008, the Company and a consultant company in brand communication jointly planned the development and communication of “Lumpini� " $ # $ " $( * ) $ <J Living� is created. In order to enhance the clarity of the brand as well as the identity of “Lumpini� brand, the Company has improved and developed the Company’s and “Vibrant Community� logos as can be seen below:

Company’s Logo

Vibrant Community Logo

In 2009, the Company initiated “30 Happy Daysâ€? campaign to communicate “Vibrant Communityâ€? strategy by inviting 4 young people to try living in “Lumpiniâ€? society to prove that the saying “they say‌living here is happyâ€? is true. The campaign was communicated through www.30happydays.com website which was low-cost but highly effective in reaching the target group. Other channels of communication also included social networks i.e. Twitter and Facebook. It turned out that the target group of young people was very interested in the campaign $ ) $ $ # $ $ <@ = " $( ZY3Y) $ $ $ " $ " & # # <@ = < #= # ( ! ( ? #( ( U

# " $ $ / ZY3Y # $ ; # H $ ‚‹ "% ; # ƒ U #& & * ; * ‚U*; * $ƒ (

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Research and Development

The Company realizes the importance of research and development and has established a Research and Development Department in 1995 which comprises of those with knowledge, capabilities and experiences from various professional backgrounds. The Department is under the supervision of the Management Director. The research encompasses the entire operational system of the Company from selection of locations for development, development of products and services to costs reduction. The roles and responsibilities of the Research and Development Department are as follows:

been developed. Though the 26 sq.m. one-bedroom units are small but are able to satisfy the lifestyle and needs of customers. The Company has been able to maintain the level of sale price to be appealing to the target group even when the costs have been increasing. The 26 sq.m. unit of the Company was awarded “Product of the Year” award in 2009 from a newspaper. Most recently, the Company has developed a 22 sq. m. residential condominium unit under LPN Design concept which is smaller but can still satisfy the daily life of the residents with reasonable price. The new Research condominium units are positively received by the customers. 1. Research to obtain information for executive decision 2. Development of the Company’s Product under “LPN Green” making. Research topics range from macro level information Concept, LEED Standard such as economic, social and political situations, competition Apart from the development of the above products and in the market, demand and supply, market needs and services, the Company has also given importance to information for the development of each project e.g. the environmental impacts resulting from projects development. suitable location for development, suitable price range for The Company has thus established a design and development each location to the information on customers’ needs to be guideline under “LPN Green” concept which consists used to develop products that are to meet the needs of of Green Design, Green Material & Equipment, Green consumers as much as possible. Energy and Green Community Management, which has 2. Research to develop and improve efficiency of the already been promoted to the public and is well-received in Company’s performance with an aim to satisfy the needs of terms of sales. The LPN Green concept communicated to customers and add values to products and services as well the society and consumers is in accordance with Green as to reprocess in order to reduce costs and wastes and Building Standards. Various institutions are attempting to improve the speed of operations. establish “Green Building Institution” and are during the 3. Research to seek for new business opportunities which arise process of identifying the standards and assessment system from changes in the environment, society, demographics for green buildings. Green building standards of many other and consumers’ behavior to support the expansion of the countries are used as examples and will be adapted to be in Company in the future. line with the conditions and various situations in Thailand. Development

LPN Green and LEED Green Building Standard

1. Development of Products 1. Sustainable Site Development The heart of research is to utilize the obtained information to - Select project locations that have dense population to develop products and services with high quality to meet the reduce environmental impacts and take advantage of needs of the consumers while maintaining the upper hand the facilities and convenience of the neighborhood. over competitors, leading to the trust in “Lumpini” brand. - Select locations on the main road with convenient Throughout the years, the Company has significantly transportation i.e. near express ways and have public achieved the development in product development. It could transportations to reduce the impacts on traffic and be said that condominiums of the Company are the model of encourage the residents to use public transportation urban residential condominiums development which has more by providing a shuttle bus to connect with the main been copied by many other entrepreneurs. It is because the public transportation system. Company’s condominiums are able to answer to all the - Compensate previous open space with green area and needs of the residents under “LPN Design” concept starting landscapes in the project. from 30 sq.m. studio units and 60 sq.m. two-bedroom units. This creates the new standard of condominium living as it is consistent with Thai lifestyle and easy to maintain. At present, main products of the Company have continuously ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

19

2. Water Efficiency - Use water efficient sanitary ware. Some types of toilet " ( ( $ + " $ used by 50% - Use the treated waste water to water plants in the project. This is to increase the efficiency of water use and reduce the amount of water released from the project into public water systems. % # ( ( & to save water. % # $ & " help conserve water. 3. Energy Efficiency % ; # $ # $ $ # $ ( % ; # # # $ $ # " efficient and suitable to reduce electricity use. % — " # ( ( # $ ( % ; # # K $ $ ) H # $ " # # # # $ to be as effi " " # same time. 4. Appropriate Use of Material and Resources - Use alternative materials which are proved to be safe and environmental friendly to replace natural materials to $ # laminate floor instead of real wood parquet floor. % ; # $ " $ # " with the dimensions of construction materials to maximize the economic value and reduce waste of materials that $ " $ $ $ " & ( % — $ # $ ' " # # privacy of the residents. % — $ # $ $ $ $ # which is the hottest time of the day. % ‹ & # $ " $ / $ $ $ # $ $ $ # ( % H # " # # # $ $ # " $ # $ residents have moved in. 5. Creating Indoor Environment Quality for Residents - Focus on the efficiency of sustainable community # # ‡%U%@% % # † 3ƒ ‡ H # † H # " and facilities within the project for maximum efficiency and appropriateness for residence. Zƒ U $# # H # † H # $ " $# in a transparent manner for maximum benefits while # # & (

20

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

6.

ƒ @ ˜ H # † $ $ # # ) # $ # # $ ' ( ƒ H # † # appropriately & #

$ # ( €ƒ H # † H # $ various measures strictly for maximum efficiency, " # # $ # K ) # $ $ # ' $ $ " # ( Innovation in Design % " $ # $ K $ ( ( # $ $( % $ $ # $ $ condominium units such as doors and windows which are #( % $ # precast concrete system.

" @  & # tools to achieve sale purposes but the aspects of the concept are U $ # $ $ @ ; demonstrates the corporate environmental and social responsibility of the Company. However, the appropriateness and possibility of other dimensions will also be considered at the same time to entail sustainable development. 3. Service Development The identity of the Company does not only include the development of products to respond to the needs of consumers but also the service which is another factor that differentiates ™@ Q " $ ( ! # # Q < H # = % $ " " ( @ H # () @ $( " " $ more than 16 years has been responsible for community # K $ $ " ( The main roles which have continuously been developed are ‡ ‚ # ƒ) U $# ‚" $# # ƒ) @ ‚' # ƒ) ‚ # ƒ $ ‚ # ƒ( ! "K # <> " Q # # ' # ) $ (

Passing on the Happiness Giving Back to the Environment and Society

Lumpini believes in the power of giving and determine to give the happiness back to the society and take responsibility for environmental conservation and reduction of impacts on all aspects in order to create a good society and take care of the earth to be a pleasant place to stay forever.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Development of Corporate Environmental and Social Responsibility (CESR)

1989-1995 Establishment of the Company and CESR Activities When the Company was established, it did not only develop projects but also emphasized CESR activities at the same time, starting with activities within the community e.g. World Cleaning Day activities at Lumpini Tower and P.S.T. Condoville as well as the assistance offerred to people sufferring from massive floods in Bangkok. 1996 Initiation of blood donation activities The Company in collaboration with the Thai Red Cross organized blood donation activities for the first time at Lumpini Tower on the occasion of the 60th anniversary of His Majesty the King's accession to the throne. It marked the beginning of the blood donation activity of the Company which has been continued until today. Furthermore, the Company also supported the education of the children of construction workers who lived at the construction site. 1997-2000 CESR activities during the economic crisis The Company continued to maintain its environmental and social activities even during the economic crisis, especially the blood donation activity which was organized every 3 months at Lumpini Tower and later expanded to other projects e.g. P.S.T. Rama 3 as well. Cleaning services department was also established in 2000 to create jobs and income for underpriviledged women in the society so that they have a stable job with welfare and a good quality of life. At present, there are more than 600 members who are working in various projects developed by the Company. 2001-2005 Business recovery and concrete CESR activities As the business of the Company started to recover, the Company pursued its environmental and social policy more concretely. During the Company's 15th anniversay in 2003-2004, it organized the "15 Years of Bond" activities which were not only beneficial to customers, employees and business partners but also the society. The activities were as follows: › * $ $ $ # $ $ graduate students of the Faculty of Architecture, Chulalongkorn University; › ; $ ! J $ purchase kidney dialysis machines for patients with end-stage kidney disease. › # @ * Thailand to build a tennis court in honour of His Majesty the King on the 60th anniversary of his accession to the throne in Lumpini Park for public use.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

› $ & / # ! $( ! ‘‡ ‹ $) H & # $ � ; ! ‘ $ $ $# $ $ ZYY " $ $ ( ! $ $ $ ( 2006 J H K Š # ! " $ ) ) " # # # -

" XY H K Š #�

† › $ # @ & U ) " ) H K Š #( › " $ ‘: : $ ; $ ‡ ‘ & " & $ " H K Š # $ # $ ( › $ ‘ � ! $ ) @ � ; $�‘ $ $ $ " $ " & @ ! ( ! " $ $ ( › $ $ & ‹ ! # " $ @ & K ( › ? # - $ " ! ( ! $ K # $ $ ( ! $ K # $ $ # # K K $ " J H & $ ( ! $ " $ Š # ; ?

$ 3(€ $ && % J $ / " J $ & $ $ Š # ! " ‘ Š # $ ‘ (

2007 " J ; ! ' # $ " # " $ # " $ # $ # - " # $( ! $ $† › ? # - $ ‘! ! $ $ ‘ $ # / $ ( › $ # - $ � ; ‹ ! # " $ @ & K ( › ? # - $ ‘! ! $ $ ‡ @ $‘ " H K Š #� Y " $ ( ( & # ) # ‘U € ; " ‘ $ ‘! Š # ; ‘ / " # $ # $ & ! $( › $ ‘

‘ K H K Š #�

(

› % # - $ $ $ J H # - $ $ $ ( ! " $ $ ( 2008-2010 J $ $ ‘> " ‘ #

& J " $

$ $ # $ " ( * & ) $ " $ K ‘‡ ‘ † Environment and Energy › U $ # $ # # " # ( › ! & # $ # # " # $ K $ ) & $ ( › # # $ $ $ $ # $ # $ K ( › # # $ # # $ K # $

( › # # # " # $ $ K ( › ? # - # ‘  ‘ $ " #( › J # $ # J J $

$ " # # ( Society › U $ # $ ( › / $ # " $ $ K $ $ " $ $ # ! J $ # - " $ $ #  “ ( › ; # ' & $ $ ! $( ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Operational Guidelines for Corporate Environmental and Social Responsibility

Real estate development business, especially mega real estate project, has direct impacts on the environment and society. Real estate developed by business operators of poor quality usually causes a great number of environmental and social problems. The Company, therefore, gives very much importance to environmental and social responsibilities which are included in the business plan of the Company both in process and after process. Environmental and social awareness is also raised among staff in all departments and cascaded to residents of “Lumpini” community. The Corporate Social Responsibility to Community Social Responsibility guideline has been established. The Company sets the ratio of the operational budget to sale of the Company as well. The in process and after process guideline of the Company consists of a sense of responsibility starting from within the organization and communities developed by the Company before expanding to the greater society. This requires participation of all stakeholders such as employees, customers and trade partners as the saying goes: “ Good environment and society must start from you. When you are ready, you can expand it to communities you develop and manage and finally to neighboring communities.” Such thinking leads to a performance guideline for all departments of the organization and is the origin of the community management policy that the Company commits to develop all projects to be the “Vibrant Community” to set an example for other real estate business operators.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

In Process Environmental and Social Responsibility includes 1 ) Environmental and Social Management within the Organization 1.1 Provide appropriate and hygienic working environment and atmosphere and promote exchanges of experiences and knowledge in order to become an organization of learning. 1.2 Establish a human resources management policy which promotes quality of life by enhancing work-life balance of staff and promoting working methods under core values and culture of the organization which has been cascaded from generation to generation. Internal activities to build good relationship between the Board of Directors and staff in all departments to reduce gaps are organized. The Company also encourages staff to participate in various environmental and social activities in order to raise awareness of doing goods for the society. “The Steps of Goodness” project has been initiated at the end of 2006 and inspired by the royal duties of His Majesty the King for the happiness of the people. 2 ) Concept at the beginning of a project development 2.1 Select strategic locations which are highly populated on a main road and near convenient facilities to develop a project to reduce environmental impacts from large scale project development. The locations must also be close to public transportation system and express ways which will directly help ease the traffic and reduce energy usage.

2.2 Design products under “LPN Green” concept which is in line with Green Building Standard of the US (LEED – The Leadership in Energy and Environmental Design) to reduce environmental impacts. 3 ) Marketing Strategy The Company identified a marketing strategy which is consistent with the policy to create first home for the target group of the middle to lower-middle level with community management strategy which aims to build a good quality of life for the residents. 4 ) Environmental and Social Responsibility Activities during the Construction The Company specially emphasizes the significance of surrounding communities which are directly affected by the impacts of projects development. High ranking executives of the Company will visit the site and make enquires about the impacts on a regular basis as well as develop a construction process to prevent and reduce possible impacts to nearby communities. This is included in the roles and responsibilities of the Construction Department as follows: 4.1 Environmental Concerns: Following a purchase of a land, high ranking executives of the Company will visit the community to provide information to neighboring communities and related governmental agencies so as to enhance understanding and good relationships with the communities, especially to houses or buildings adjacent to the project which will be directly affected by the development of the project. In addition, it is stated in the work plan of the Construction Department that importance must be given to environmental and social activities within the project and construction workers’ temporary housing during the construction. The ways to reduce impacts stated in the Environmental Impact Assessment report must be strictly followed by being aware of and preventing the impacts to nearby buildings or communities in terms of noise, dust and traffic, ensuring the cleanliness of the wheels of trucks that are transporting construction materials while leaving the construction site to reduce dust and particles, controlling the construction to follow the design and timeline and reporting the result of the compliance with measures to prevent and reduce impacts of the construction, all of which will be monitored by high ranking officers of the Company. Moreover, during the construction, the Company will send a team of staff and experts to survey the site by preparing a questionnaire to monitor and review the impacts of the construction as well as to explain the details of the project construction.

4.2 Safety of related persons and construction workers: Construction workers have high risks of accidents and loss of life in the performance of their duty. The Company has established a strict performance standard in terms of safety and assigned security officers to provide recommendations on safety to prevent any accidents e.g. avoiding having a contact with hazardous materials or using safety equipments at work, etc. Furthermore, the Company gives importance to their occupational health by arranging housing for construction workers in an appropriate environment and cares for the quality of life of all family members of the construction workers and encourages them to be healthy by exercising every morning. 5 ) Community Management after Handover After the handover of the project and condominium units to customers, it will be the responsibility of the Community Management Department of the Company to manage the community and provide good quality of life, environment and society to more than 100,000 members from 60 projects of “Lumpini” society under “Vibrant Community” strategy. It does not include only the maintenance of equipments and properties to be ready and safe but also the creation of happiness and good society which is warm and safe. The importance is given to the environment within the project by: 5.1 Creating a good quality of life by encouraging the members to comply with rules of the community for the discipline of living together and order in the community. Also, the Company supports activities to build relationship in the family and between various groups of “Lumpini” members and encourage all members to voice their opinions and participate in environmental and social activities both within the project and outside. This is done through internal society network to create sharing living culture such as helping each other to increase green space in the project, participating in donation activity to help the underprivileged or those who suffer from natural disasters or even taking part in policy planning with the Joint Owners Committee and executives of the Company to sustainably develop “Vibrant Community” strategy. Other activities include the organization of “Family Day” activity in the project or various cultural and traditional events. Additionally, the Company determines to create understanding about the culture of living together with the emphasis on caring, sharing and being kind to each other to bring about friendship and true happiness of living.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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5.2 Managing the environment by increasing and taking care of green space in the project, keeping clean, managing waste, treating waste water and conserving energy. Apart from that, the Company promotes Green Clean Lean concept and runs a campaign for the residents of the community to take serious action e.g. to segregate waste to be recycled or reused, use treated water to water plants in the project, use cloth bag instead of plastic one and reduce electricity usage in the buiding to conserve energy. 5.3 Managing security system within the project under a good security standard and encouraging the participation of members of the communities as well as coordinating with related governmental agencies to entail safety of the members of communities. The Company also gives importance to the renovation of building and environment of condominiums which have been developed for more than 10 years by repainting the building, increasing green space and improving the surroundings which are related to the quality of life of the residents of the projects, for example, Lumpini Tower, Lumpini Center Happyland, P.S.T. Condoville and P.S.T. City Home. After Process Environmental and Social Responsibility The after process environmental and social responsibility activities of the Company includes the organization of events both internally and in collaboration with the government sector and “Lumpini” communities or neighboring ones in order to raise environmental and social awareness to the society at large. The majority of the activities are continuous for long-term impact. The activities organized can be divided into the following categories:

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

1. Activity in collaboration with governmental agencies or organization such as Thai Red Cross. 2. Activity in collaboration with “Lumpini” society. 3. Activity in collaboration with neighboring communities. 4. Activity to provide assistance to various groups of people. 5. Activity to provide assistance to the underprivileged. 1) Activity in collaboration with governmental agencies or organization such as Thai Red Cross. 1.1 Blood Donation Activity The Company has been collaborating with Blood Donation Center of the Thai Red Cross for more than 14 years to provide venues and convenience for employees, customers and the general public to donate blood for those in need. The Company aimed to expand the activity to other projects which have the potential to be blood donation centers from 7 projects in 2009 to be 10 projects in 2010, namely, Lumpini Plaza Asoke, Lumpini Sukhumvit 77 Projects Group, Parkview Vibhavadi, Lumpini Tower, Lumpini Ville Thailand

Cultural Center, P.S.T. Projects Group, Lumpini Place Pinklao 2, Lumpini Ramindra-Laksi Projects Group, Lumpini Rama 8 Projects Group and Lumpini CondoTown Bodindecha-Ramkhamhaeng. 38 blood donation activities were organized with the total of 3,569 blood units received or equaled to 1,249,150 CC of blood which was used to help 14,276 patients (350-45- CC or 1 unit of blood can help save 4 patients).

Since there was a great number of people who would like to donate blood but was not able to do so because of unpreparedness, in 2010, the Company produced a “Blood Donation Booklet� to provide knowledge about how to prepare oneself before donating blood and published 2010 blood donation calendar to inform the residents of the date, time and venue of the activity. This was another way of providing convenience to the donors.

The volume of blood donated from L.P.N. Development Public Co., Ltd. mobile unit between 1996 and 2005 Project Lumpini Tower

Year Time/Year Blood Volume (Unit)

1996 2 303

1997 3 462

1998 4 744

1999 4 535

2000 4 540

2001 4 461

2002 4 326

2003 4 464 Total

2004 3 393

2005 4 563

Total 36 4,791 4,791

The volume of blood donated from L.P.N. Development Public Co., Ltd. mobile unit between 2006 and 2010 Year Time/Year Blood Volume (Unit) Time/Year Lumpini Sukhumvit 77 Blood Volume (Unit) Lumpini Plaza Asoke Time/Year Blood Volume (Unit) Parkview Vibhavadi* Time/Year Blood Volume (Unit) Lumpini Ville Thailand Time/Year Cultural Center Blood Volume (Unit) P.S.T. Time/Year Blood Volume (Unit) Lumpini Place Pinklao Time/Year Blood Volume (Unit) Lumpini Rama 8 Time/Year Blood Volume (Unit) Lumpini CondoTown Time/Year Bodindecha-Ramkhamhaeng Blood Volume (Unit) Lumpini Ramindra-Laksi Time/Year Blood Volume (Unit) Project Lumpini Tower

2006 4 680

2007 4 1,313 1 133 1 150

2008 4 1,369 4 492 4 511 4 311 4 312 4 429

Total

2009 7 1,285 7 372 7 503 7 316 7 296 7 371 7 196

2010 4 1,297 4 339 4 431 3 155 4 198 4 339 4 153 4 132 4 311 4 214 3,569

Total 23 5,944 16 1,336 16 1,595 14 782 15 806 4 1,139 7 349 4 132 4 311 7 214 12,608

Note: *Blood donation activity was seized by the Thai Red Cross at Lumpini Ramindra-Laksi and Parkview Vibhavadi according to an political unrest.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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In July 2010, the Company cooperated with Grand Parkview Asoke and Lumpini Plaza Asoke to open for registration of stem cell donation to the Thai Red Cross to help patients with blood disease. The activity was well received by the residents.

around the world during 20.30-21.30h $ Z H ZY3Y $ < = # which had been implemented since 2008. The campaign was to reduce green house gases emission from energy usage which is the main cause of climate change. 64 Lumpini projects participated in the campaign by turning off the light for 1 hour which helped save 5,520 kilowatt of electricity or ' $ ( Z " $ / $ $ $ 3:) 3: ! U in the electricity bills. Moreover, the Company continued the campaign by inviting residents of Lumpini projects to turn off lights when not in use on every $ ) # $ $ # " $ # (

1.4 $ * The Company collaborated with various agencies to 1.2 “Blood Donation Before New Year‌Drink Don’t Driveâ€? Project improve the environment and increase green space of neighboring areas of the projects developed by the Following the increase of accident statistics during Company. In the previous year, the Company coordinated New Year festival and greater number of deaths and injuries, U #& & H *$ ) ; the Company collaborated with Blood Donation Center of the and local organizations to develop and improve the ! J $ ) " ? U #& & environment and increase green space as follows: Court, Probation Department, Ministry of Justice, in the 1) Improved the street aisle and police booths from Kluay “Blood Donation Before New Year‌Drink Don’t Driveâ€? Nam Thai intersection to Bangkok University. campaign to invite the public to donate blood before 2) Improved the street aisle on Ratchadapisek-Ramindra road. travelling during New Year holidays and raise awareness of 3) Improved the street aisle from Thai-Belgium bridge to the road safety among motorists to reduce accident and death area under Rama 4 express way. rates. Mr. Tikhamporn Plengsrisuk, Chief Executive Director 4) Improved the scenery and increased green space $ / ? $ $ $ " Š ( Minister Abhisit Vejjajiva at the Government House to 5) Improved the scenery and increased green space promote the said campaign. around Tungmahamek police station. The activities included blood donation, a walk to promote the 6) Improved the scenery and increased green space around Bang Pong Pang police station. campaign participated by more than 60 staff of the ƒ $ $ # @ & $ " Company and a procession of more than 200 motorcycles more toilets. $ ' 8) Improved the lawn around the outdoor stage of Lumpini Park. blood donation and raise awareness of road safety and drink :ƒ $ $ J X H ) don’t drive campaign. Lumpini Park.

1.3 Earth Hour Activity The Company in collaboration with Bangkok Metropolitan Administration invited residents of the projects and employees to turn off the light for 1 hour together with other 82 countries

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3(€ <@  > Œ = * ! $ $ ; ? to clean Paseecharoen canal which was to be conserved

according to the resolution of the Government on 10 June ZY3Y " # $ $ companies to take part in a boat trip to collect garbage with the distance of 10 km. from Wat Rang Bua, Paseecharoen district to Wat Muang, Bangkhae district. This helped enhanced environmental surroundings of the projects developed by the Company (Lumpini CondoTown Bangkhae) to be of better quality. 2) Activity in Collaboration with “Lumpini’ Community 2.1 Activity to Improve and Increase Green Space The activities to improve and increase green space within “Lumpini� community have been carried on to demonstrate the Company’s policy to add value to products delivered to the customers. This also helps increase the overall value of the properties of the customers and enhances the quality of life of the residents of “Lumpini� community under “Vibrant Community� strategy. In 2010, the Company coordinated with Lumpini community to improve and develop green space in 15 projects as follows: 1) Lumpini Place Rama 3-Charoenkrung 2) L.P.N. Tower 3) Lumpini Place Rama 3-Riverview 4) P.S.T. Condoville 2 5) P.S.T. City Home 6) Lumpini Place Phahon-Saphankwai 7) Lumpini Place Soi Kraisri 8) Lumpini Place Rama 4-Sathorn 9) Lumpini Center Sukhumvit 77 10) Lumpini Ville Sukhumvit 77 11) Lumpini Center Happyland Building D 12) Lumpini Center Nawamin 13) Lumpini Ville Thailand Cultural Center 14) Parkview Vibhavadi 15) Lumpini Suite Sukhumvit 41

manage waste properly, the Company provided knowledge and raised awareness about waste through various activities as follows: - Waste bins standard improvement: for all juristic persons to apply the same standard to be easy to remember, campaign and promote. In 2010, the waste bins’ standard of 57 juristic persons was improved. - “Separate Boxes Reduce Waste Activity� The activity started in June 2009 in Lumpini Tower and had also been continued. Throughout 2010, 299.1 kilograms of drink cartons was collected to be recycled, saving 269.19 kilograms of carbon dioxide from waste incineration. Following the success of the activity, the Company expanded it to 33 other projects to encourage the residents to segregate waste to reduce the amount of waste and raise awareness of environmental conservation. The activity received positive feedback from the residents and joint owners of the projects. From January to October 2010, the Company was able to collect 1,439.73 kilograms of drink cartons to be recycled and reduced 1,295.73 kilograms of carbon dioxide from waste incineration (recycling a ton of drink cartons can reduce 900 kg of carbon dioxide from waste incineration). Statistics of the Collection of Drink Cartons in 2010 Period

Weight of Drink Carton (kg)

Amount of CO2 Reduced (kg)

Quarter 1 Quarter 2 Quarter 3 Quarter 4 (October) TOTAL

424.20 363.00 559.50 93 1,439.7

381.78 326.70 503.55 83.70 1,295.73

-

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2.2 Waste Management Activity Appropriate and hygienic waste management in each project is another activity focused by the Company in order to create good living environment. At present, waste problems are one of the important problems impacting the environment and sanitation of the community. In order to

“Hazardous Waste Segregation� Activity The Company has provided waste bins for disposal of hazardous waste i.e. chemical container, round + # " " $ ) " " ) " $ # + # " " $ promoted it to the residents of the condominiums for hazardous waste segregation. In 2010, the Company was able to collect 10,656 pieces of hazardous waste for Bangkok Metropolitan Administration for appropriate disposal. The Company also provided the information of the amount of such waste to the Garbage, Hazardous Waste and Waste Management Section, Environmental ? ) U #& & H *$ " $

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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to develop waste management in Bangkok which is the very fast growing city.

* - $ ‹ $ ZY3Y Type of Hazardous Waste

Number of Hazardous Waste (Piece) Q1 Q2 Q3 Q4

1. Chemical Container 259 2. Round Fluorescent Light Bulb and other types 886 3. Mobile Phone Battery 184 4. Battery 1,676 5. Long Fluorescent Light Bulb 368 6. Others e.g. starters, + # ) ( 3 TOTAL 3,387

149

179

186

822 84 1,241

1,277 46 1,164

643 25 586

261

295

111

3 2,574

3 3,144

Y 1,551

2.3 The first “Lively Family Camp for Environmental Conservation with LPN� The “Lively Family Camp for Environmental Conservation with LPN� was held twice at Suan Luang Rama 9 Park and Lumpini Park to provide an opportunity for family members of LPN Young Ambassadors from Family Day event and family members of the residents of the condominiums to learn, understand and participate in environmental conservation activity and realize the value of natural resources. The objective was to encourage daily behavioral change to be more environmental friendly through one-day Family Day Camp.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3) Activity in Collaboration with Neighboring Communities 3.1 Activity to Restore the Community and Improve the Scenery of Rama 4 Road The political unrest in Bangkok had caused damages to houses and shops around Rama 4 Road as well as many other places in the city. Since the head office of the Company is situated in the area, it took part in providing assistance to restore the community and improve the scenery along Rama 4 road and on street aisle from Thai-Belgium bridge to Rama 4 express way intersection to return to be a “Vibrant Community�. The Company fenced off the buildings damaged from fire, restored various areas e.g. the footpath and flyover around Lumpini Tower, provided garden parasols for vendors who were affected by the unrest and planted trees on the street aisle and the footpath. The “Lumpini People Volunteer to Paint the Street Aisles� activity was also organized and cooperated by more than YY ( * ‚! $ƒ " () @ $( sponsored the paints and Tungmahamek police station blocked a traffic lane for the safety of the volunteers. 4) Activity to Provide Assistance to Various Groups of People 4.1 “Care and Share� Activity The Company gave out rugs handmade from natural fabric as a gift to customers who attended the sale opening event of Lumpini Park Riverside-Rama 3 in order to deliver good things and give back to the community. There was also a $ " /

+ $ of Thailand. 4.2 “Donation Activity for Haiti Earthquake Victims� ! ' & " # # ZY3Y $

loss of lives and injuries of more than 500,000 people and made 1 million people homeless. In order to help relieve the hardship of the victims, the Company in collaboration with the Thai Red Cross put donation boxes in 48 juristic persons K $ $ $ # $ " Company to ask for donation from joint owners and the residents of the projects. The total amount of the donation from such donation boxes, employees, customers of @ $ ! U #& $ 200,000 THB.

4.3 “LPN Helps Thai Farmers� Activity “LPN Helps Thai Farmers� activity was continual from 2009 with the intention to help farmers who were affected by # $ $ " " # $ $ # # # # K ( ‡ / ) ## ’ ZY3Y) ) " # ## $ # # @ $ ! U #& ( ! # $ ! $ $ ! ( # Thai rice culture and traditions which had been passed on for # ( * ) ! # rice and many rice culture and traditions were vanished because of the development of the country. The survey on ! $ $ Y # ! $ # 3:Z & # year. However, the rice consumption of Thai people nowadays $ $ " Z€[ 3 & # $ ( ; # # rice price, the Company reached out to Thai farmers and $ ! $ " " # # to

# @ J and Lumpini Place Rama 4-Kluay Nam Thai in March 2010.

* # # $ ) supported other products such as tealeaf pillow to help farmers $ ?!? $ # J affected by the political unrest in terms of lesser tourists and

$ # ( ! # # $ # @ $ ! J $ %Â U $ # ; Â’ 2010 and Lumpini Place Rama 9 Phase 2 in July 2010.

5) Activity to Provide Assistance to the Underprivileged €(3 < $ # ? # $ = * The Company in collaboration with World Visions Thailand provided an opportunity for employees, joint owners and $ $ $ $ # / # $ $ $ ? # $ ) # H ) $ $ them to be healthy and reach their developmental milestones. The donation money collected was almost 300,000 THB.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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€(Z <‡ #  — = * ! # $ <> " = K $ # " $ # " $ @ J (  3 ‡ $ $ $ # J Š > $ $ & $ " " " # € $ " ) $$ $ $ # " $ ( ! & $ $ $ # # " # (

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$ $ X ! U( H (  $ * : @ $ & $ $ # $ " $ # " ( ! € " $ #

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" ( ! $ $ $ & $ ( ! " $# Y:)Z: ( Y ! U( H ) " " $ $ $ " † Labor ! $ $ $ " # $ $ "

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

$ )

$ ( ! " $ # † Direct Labor @ H # () @ $( $ $ # K # $ " ( ! $ $ $ $ $ Z # † Group 1: Full-time Employee ! - # $ $ $ # $ " ' # - ( Group 2: Daily Employee ! K $ & & U #& &( ! # $ " & & & $# $ & ( ! # $ $$% " $ #

# $ " $ / $ " ( ! " $ $ & $# $ & ( * ) YY $ " ( ! " $ # ‚ ZY[ # # ƒ $ ( ! $ $ & %" # $ # $ ' " ( Indirect Labor ! / ‚ ƒ " $ # $ $ " ( # $ " # $ $ $ $ " # < = # # 3:: # ( ! " # $ #

& $ $ # & ( ! " $ "

management of labor, especially in terms of creating a good quality of life for the workers, providing welfares, safety, healthcare and good environment of the construction site. The Company also takes care of the surroundings of the workers’ temporary housing and lays ground rules for the workers e.g. workers must avoid gambling and drugs. Fair Business Operation In order to ensure balanced and fair gain of the Company, the main strategy, vision, mission and strategic map are developed from the balanced scorecard system which entails balanced and fair $ " & $ † @ J K The Company has developed products with affordable prices especially for customers in the lower-middle income range. “Vibrant Community� strategy will help enhance the quality of life of the customers who are residents in the community as well. @ J K ) X The Company has allied with trade partners for a long period of time, especially those who had gone through the economic crisis together. The business alliances of & $ # - achieves development and growth together with the ( ! " win-win situation for both parties.

@ J K ! % & The Company focuses on the importance of human resources management and development as well as career advancement of employees. The Company is a # # - K # & # executives are internal staff who have grown from mid-manager level. The importance is given to work-life balance also. As for remuneration for employees, the Company has decided the bonus for employees based # - $ # all employees to participate and take responsibility in the performance of the Company.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

33

Operating the Business in accordance with >[< ‡‚ˆ‰^<=‰Š ‹‰Œ=Œ_Š �?^=‰^‘;< Since the founding of the Company, L.P.N. Development Public Co., Ltd. has established guidelines for business operation by creating balance of interests for all related parties as well as ensuring that the Company grows from within in parallel with human resources development. After the economic crisis in 1997, the growth of the Company is based on the growth of the development of projects that are in line with the strategy of the organization and overall economic situation. Moreover, the Company’s growth has been maintained in a consistent and sustainable manner. The Company has established a business strategy focusing on the development of residential condominiums in densely populated areas for the higher-middle to lower-middle target group who are major urban target groups. Importance is also given to community management developed by the Company to ensure appropriate quality of life in great environment and happy society. " $ " < = Majesty the King which can be explained as follows: ‡‚ˆ‰^<=‰Š ‹‰Œ=Œ_Š �[^;Œ]Œ‘[Š ‡‚ˆ‰^<=‰Š ‹‰Œ=Œ_Š �?^=‰^‘;<] Consist of 3 values and 2 conditions as follows: 3 values: 1. Modesty 2. Reasonableness 3. Building Immunity 2 conditions: 1. Knowledge 2. Virtue

Middle Path

Modesty Reasonableness

Good Immunity

Knowledge:

Virtue:

knowledgeable, prudent, careful

honest, diligent, wise, sharing

Leads to

Economy/Society/Environment/Culture Balance/ Ready to Accept Changes

34

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

1. Modesty The Company’s business operation is to: - Manage growth at appropriate level, neither too fast nor too slow, with emphasis on creating internal strength to ensure sustainable growth under appropriate risk management. % * " ) / # & # $ # ( - Consider environmental and social impacts from the development of projects and seek measures to reduce impacts in all ways possible. 2. Reasonableness - Develop residences for those who desire to own a residence. % — # $ ' $ " # # $ / ( % " $ " $( 3. Building Immunity - Develop the capacity of personnel in terms of knowledge, skills and maturity. - Establish strategies that are appropriate and cover all economic situations, namely:

Short-term strategy % - $ $ $ ( % / $ K $ ( - Create uniqueness of products and services by focusing on community management under “Vibrant Community� strategy.

Medium-term strategy % / $ " " # $ $ # % $ K ( % / $ # # " $ " # $ " " ( % / $ # " # ) # $ " ( Long-term strategy - Strengthen the capacity of personnel and improve internal systems. - Increase the capacity of community management focusing on the capacity of community managers. - Add value to the organization by initiating new innovations in products and services.

2 Conditions 1. Knowledge As stated in the People Perspective, the Company is to be an organization of learning and knowledge sharing, starting from within the Company before cascading to communities managed by the Company through learning centers in every condominium developed by the Company. 2. Virtue “Virtue� is one of the cultures of the organization which is also stated in the mission statement of the Company for its responsibility to shareholders as part of good corporate governance which is an important guideline for employees in all levels to adhere to. The Company has always been following the above principles in its business operation, enabling the Company to achieve its objectives, quality growth and acceptance from customers, including business partners and other stakeholders. The Company will continue to embrace the principles in its business operation for stable, quality and sustainable growth in the future.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

35

Multiplying Happiness, Continuous Development

For more than 20 years, we have never stopped adding values or developing products and services and always had a quality team of executives, employees and business alliances equipped with well-rounded expertise. Our determination plus experiences in community management strengthen our advantages and lead to our successes.

Company History

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38

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

ZZ] ! K $  (!( ( () @ $( # # $ " 3)YZY)YYY ! U 3)YZY)YYY ' # €3[ $ 3Y ! U ( ! / $ # # € $ # " & # ZY)YYY)YYY — ; $ U?J ½ 3(ZY[ $ # @( ( ( & ! K (

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

39

ZZZ K ^ ' # @ # & K @ ZZZ ? ZX 3:::) $ $ * H # () @ $( $ " # $ $ Q " K " $ # $ # $ " # $ ( ! $ ( ! U $ ; @( ( ( ; " () @ $( $ # - $ / $ H # $ J ( 3¾3::: ? " 3::: Q # $ Q XY)YYY)YYY ! U ): )YYY)YYY ! U " # Z) YY)YYY $ ) 3Y ! U) & # ) Z )YYY)YYY ! U( ! U $ ; Q H # 3 " 3::: $ (!( ( () @ $( Y(Y3 ! U $ & # (!( ( () @ $() " ) $ $ Q ' # ( * ) (!( ( () @ $( " ( !

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40

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

] $ _ # % { X " # | & , X K ! * H # $ ZYY $ * ZYY $ # 3Y ! U 3 ! U) # " 3Z3)YYY)YYY 3)Z3Y)YYY( ! H # $ # $ " Z X) YX) Y 3 ! U) # # $ " 3) X) YX) Y ! U $ " $ $ $ 3) X) YX) Y $ 3 ! U( ! $ $ # $ ; () @ $( Z [ ( [( ] ! * H # $ ZYYX $ Z * ZYYX $ $ # $ 3) X) YX) Y ! U 3) )X: ) X ! U " & # $ # $ 33)YY ) Z 3 ! U $ $ $ * H $ * + $ ( Z ` } ' &~ ) # K " ^ " % ! $ $ K % $ ; () @ $( " $ # $ # ( [ ZY[ # $ $ $ $ @ K H # () @ $( $ # K ( * "% * $ ! $ $ ZYY ) & ! $

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41

Awards

ZYY

ZYYX

ZYY

! $ & $ ! $ / 3YY & / # ! $ $ 3 * ZYY ( ! $ / $ $ - $ ( ! $ ' $ $ $ " # & # $ & / # ! $ $ # 3Z ( * )

" $ X $ %+ ZY[( ? " ZYY ) ( (!( Z:% $ $ $ H & H H # H # # - $ " ; ? # # " $ # $ # $ # ( ! $ # $ K ( ZYY ) & $ " 3 : $ & / # ! $ ! # $ # # $ # " ! ; * ?; ( ! $ " $ $ " & $ ! # ( ! & $ " ! ; * ?; @ #

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# & / # ! $ $ $ ' $ (

! $ $ <J ; ZYY ZYY = ? U $ ; ) H Q ? ( ! $ # - $ " ; $ " # $ ( " * # - ) " ZYY ) $ $ " <ZYY U $ * U = ( ! Z )3 $ * J # 3)YYY(YY ; $ $ # ( ? ZYY $ $) ! $( ! & $ " ! ; * ?; @ #

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ZY3Y

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42

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Investment

Investment Structure

L.P.N. Development Public Co., Ltd. Real Estate Developer (Residential Condominium)

Registration date Type of Shares Number of Shares Paid-up Shares Par Value Registered Capital Paid-up Capital

21 June 1989 Ordinary 1,475,698,768 1,475,698,768 1.00 THB 1,475,698,768 1,475,698,768

shares shares

¶­À ©¢®­Á°Â Company Associated Grand Unity Development Co., Ltd.

THB THB

Real Estate Developer

Registration Date Type of Shares Number of Shares Par Value Registered Capital Investment Proportion

7 September 2001 Ordinary 6,000,000 shares 10.00 THB 600.00 million THB 20.00%

¶­À©¢®¥Áª¥

Subsidiary Companies Lumpini Project Management Service Co., Ltd.

Lumpini Property Management Co., Ltd.

Pornsanti Co., Ltd.

Project Management Service Provider

Community Management Service Provider

Real Estate Developer (non residential condominium)

Registration Date Type of Shares Number of Shares Par Value Registered Capital Investment Proportion

11 December 2007 Ordinary 10,000 shares 100.00 THB 1.00 million THB 99.93%

Registration Date Type of Shares Number of Shares Par Value Registered Capital Investment Proportion

2 April 1992 Ordinary 10,000 shares 100.00 THB 1.00 million THB 99.88%

Registration Date Type of Shares Number of Shares Par Value Registered Capital Investment Proportion

14 May 1990 Ordinary 350,000 shares 1,000.00 THB 350.00 million THB 99.99%

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

43

Company’s Capital

Unit: Million THB

Company

Paid-up Capital

Date

Share (%)

Equity Method

350.00 1.00 1.00

30 Sep 1993 25 Mar 1992 14 Nov 2007

99.99 99.88 99.93

-

206.612 0.998 0.993

600.00

30 Nov 2001

20.00

140.59

121.722

Subsidiary Companies 1. Pornsanti Co., Ltd. 2. Lumpini Property Management Co., Ltd. 3. Lumpini Project Management Service Co.,Ltd. Associated Company 1. Grand Unity Development Co., Ltd.

Investment Cost

Securities The Company’s registered capital is 1,475,698,768 THB which is a paid-up capital of 1,475,698,768 THB with ordinary shares value 1,475,698,768 THB with a par value of 1 THB (One Baht Only). Shareholders The list of top 10 shareholders together with the number of shares held and the latest proportion of shareholding as of the book closing date on 18 October 2010 is as follows: Major Shareholders 1 2 3 4 5 6 7 8 9 10

Thai NDVR Co., Ltd. Mr. Sumeth Techakraisri CHASE NOMINEES LIMITED 15 STATE STREET BANK AND TRUST COMPANY HSBC (SINGAPORE) NOMINEES PTE LTD EGAT Employees (BBL2) SOMERS (U.K.) LIMITED MR.KENNETH RUDY KAMON THE BANK OF NEW YORK MELLON Mrs. Yupa Techakraisri TOTAL

44

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Number of Shares

Proportion (%)

355,271,602 75,494,293 64,892,793 48,272,200 43,536,500 43,407,600 40,840,000 37,010,000 27,138,300 26,040,499 761,903,787

24.07% 5.12% 4.40% 3.27% 2.95% 2.94% 2.77% 2.51% 1.84% 1.76% 51.63%

! $ # $ H # # ; $ H # $ *

# ; $ # $ # 3 ? " ZY3Y

3( H ( & ! Z( ( ( H ( ! ( H ( * & ( H ( ! J # X( H ( & ( H ( > $ " $ H ( ! " $ ( H ( ! H ( : H ( #K ! #& 3Y( H ( ! & # & 33( H ( & KK 3Z( H ( ! & 3 ( H ( # & 3 ( H ( ? & 3 ( H ( ! & 3X( H ( " & 3 ( H ( J # K & 3 ( H ( # K 3:( H ( J # # ZY( H ( & TOTAL

"

U $ ; > U $ ; > U $ ; * $ * $ H " * $ H " ; % ; % ; / ? / ; / ; / ; H # # ; ; H # # ; ; H # # ; * H # # ; *

# H # H # * $ H #

% % % 3)YYY)YYY )YYY % YY)YYY 3) YY)YYY Z)ZYY)YYY Z)ZYY)YYY )YYY)YYY 3Y)YYY)YYY )YYY)YYY ZX)Y Y) :: 3:)3YX) Y % % % % % % % 74,622,069

Dividend Payment Policy ! $ $ $ $ Y[ ( ZY3Y)

$ # 3)X )Z:X) ( 3 ! U ? ! $ / $ $ ! H $ ! $ $ / ! $ $ $ U $ ? # ' 3(33 ! U ? U $ # # ( ! U $ ; Q H # J ( 3¾ZY33 3 " ZY33 $ * H # $ ZY33 " $ 3 H ZY33 $ $ $ Y( X ! U / # ( ! $ $ $ $ $ X $ Z¾ZY3Y Y(3 ! U # # ( ! $ Y * # ZY3Y( ! $ $ $ $ 3:: %ZY3Y

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

45

“

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010  †

 Â‚! Uƒ

; $ $ $

‚! Už ƒ

J ‚[ƒ

4.98 5.14 3.81 2.01 0.50 0.41 0.43 0.52 0.62 0.80 0.95 1.11

2.50 2.75 1.00 1.00 0.25 0.20 0.22 0.26 0.32 0.4115 0.50 0.56

50.20 53.50 26.25 49.75 50.00 48.78 51.16 50.00 51.61 51.44 52.63 50.45

; $ $

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$ # (

Investment in Land for New Project Development

ZY3Y) $ $ $ $ K - XX ) # ) '( Z) YX(Y ! U( ‡ $ $ " $ $) † 3( @ J Z( @ J %Š ( @ > @ %U # ( @ & J $ %J ! $ " $ K ZY33(

46

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Summary of Land Purchased for New Project Development in 2010 Type

Project

Lumpini Place Ratchayothin Lumpini Place Rama 4-Kluaynamthai Pilot Project Sukhumvit 24 Land Lumpini Ville Lasalle-Bearing Lumpini Ville Phattanakarn Lumpini CondoTown Nida-Serithai Continuous Project Lumpini Park Riverside-Rama 3

Ownership Transfer Date

Price (THB/sq.wa)

7 January 2010 116,014 28 January 2010 150,000 16 July 2010 261,582 28 September 2010 32,883 65,000 26 January 2011 36,500 1 September 2010 136,000 TOTAL 2010

Size (sq.wa) 5,921 1,704 1,422 2,969 6,357 2,642 5,728 26,743

Total Amount (THB) 686.92 255.60 377.22 97.63 413.22 96.43 779.01 2,706.03

The Company has a policy to reduce risks from relevant laws and regulations. Prior to purchasing the land, a department of the " # $ $ " $ & #) ) $ # ( The Company will buy the land after it is considered to be appropriated and feasible for the development of new projects. The Company refrains from buying and collecting lands for long-term project development opportunities. Moreover, it is a common practice of the Company to hire an appraiser to appraise every piece of land the Company is going to buy to ensure transparency and appropriateness of the price of the land. The Company will also report all information regarding to the purchase of all lands to the Stock Exchange of Thailand in compliance with the good corporate governance principle. All lands purchased by the Company are in line with the strategy in terms of size, price and location. The Company has also established a process to reduce risks from land purchase by setting up a department which is directly responsible for market and legal research and analysis of the land. This will also be useful for the design and the development of new project. After it is found that the land is appropriate for development and is without legal obstacles, the Company will buy the land. The Company refrains from buying and collecting lands for long-term project development opportunities.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

47

Future Projects In 2011, the Company aims to develop 10 resident condominiums with the total value of approximately 16,000 million THB. The Company has already purchased lands for development as follows: Projects already Opened for Sale 1. Lumpini Ville Lasalle-Bearing Size/Location : 7-1-69 rai, Soi Lasalle (next to Bangkok Pattana School), Bangkok Type of Project : 2 buildings of 15 storey residential condominiums and 2 buildings of 20 storey residential condominiums Project Value : 950 million THB Project Opened : Q1/2011 2. Lumpini CondoTown Nida-Serithai 1 Size/Location: 6-2-42 rai Serithai Rd., Bangkok Type of Project: 2 buildings of 5 storey residential condominiums and 2 buildings of 8 storey residential condominiums with 598 units Project Value: 450 million THB Project Opened: Q1/2011 3. Lumpini CondoTown Nida-Serithai 2 Size/Location: 8-0-41 rai Serithai Rd., (opposite to Lumpini CondoTown Nida-Serithai 1), Bangkok Type of Project: 3 buildings of 8 storey residential condominium with 802 units with the total space of 27,910 sq.m. Project Value: 500 million THB Project Opened: Q1/2011 Projects under Preparation 1. Lumpini Ville Chaengwattana-Pakkred Size/Location: 6-0-75 rai Pakkred junction, Nonthaburi Type of Project: residential condominium Project Value: 1,860 million THB Project Opened: Q1/2011 2. Lumpini Ville Phattanakarn-Ekkamai Size/Location: 16-0-86 rai Phattanakarn Rd., Bangkok Type of Project: residential condominium Project Value: 1,750 million THB Project Opened: Q2/2011

48

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3. Lumpini Ville Phibulsongkram-Riverview Size/Location: 3-1-75 rai Phibulsongkram Rd., Nonthaburi Type of Project: residential condominium Project Value: 900 million THB Project Opened: Q1/2011 4. Lumpini CondoTown Pattaya-Naklua Size/Location: Naklua, Chonburi Type of Project: residential condominium Project Value: 800 million THB Project Opened: Q2/2011 5. Lumpini CondoTown Bangna Size/Location: Bangna-Trad Rd., Bangkok Type of Project: residential condominium Project Value: 2,800 million THB Project Opened: Q2/2011 Projects during Land Purchase 1. Lumpini Place Pattaya Size/Location: Sukhumvit Rd., (Pattaya Nua), Chonburi Type of Project: Project Value: 800 million THB Project Opened: Q2/2011 2. Lumpini Place Bangkhae-Petchkasem Size/Location: Petchkasem Rd., Bangkok Type of Project: Project Value: 1,200 million THB Project Opened: Q3/2011

Business Revenue

Structure of Business Revenue

(For each year as of 31 December 2010, 2009 and 2008) (Unit : million THB)

Revenue structure of the business in which the Company holds at least 20% of shares Operated by L.P.N. Development Public Co., Ltd. Pornsanti Co., Ltd. Lumpini Property Management Co., Ltd. Lumpini Project Management Service Co., Ltd. Grand Unity Development Co., Ltd.

Products & Services Property Development Property Development Community Management Service Real Estate Business Management Service Property Development

% of 2010 shares held by Revenue % the Company 9,737.68 96.92

2009 Revenue %

2008 Revenue %

8,848.82

97.73

7,143.60

97.81

99.99

60.00

0.60

17.94

0.20

15.21

0.21

99.88

220.34

2.19

178.31

1.97

141.84

1.94

99.93

0.10

-

5.66

0.06

3.04

0.04

20.00

29.12

0.29

3.84

0.04

-

-

10,047.24

100.00

9,054.57

100.00

7,303.69

100.00

Â… $ $ $ "

Details of Accumulated Acrued Amounts as of 31 December 2010 Project

Installment Receivables: 1. Lumpini Ville Latphrao-Chokechai 4 2. Lumpini CondoTown Bangkhae 3. P.S.T. City Home Total

Accumulated Accrued Amounts Number

Million THB

1 1 1 3

0.306 0.005 0.112 0.423

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

49

9Œ_‘:=Š’] ƒ<“<=‚< ‰;:]]^ˆ<` ”Š �?Œ`‚‰>] :=` ‡<?“^‰<] `‚?^=• >[< �:]> ( –<:?]

! @( ( ( ; " () @ $( $ " $ $ $ " K † Revenues classied by main business of L.P.N. Development Public Co., Ltd. and subsidiary companies 2010 2009 J $ " $ Revenue % Revenue % J U Residential Condominiums 9,676.23 96.31 8,730.11 96.42 Total Revenue from Sale 9,676.23 96.31 8,730.11 96.42 J U J ? U $ # (: Y(Y ( € Y(Y J $ $ Y( Y( 3 € (X Y(X€ Total Revenue from Rental 44.81 0.45 62.03 0.69 J H # Z3:(XZ Z(3: 3 (Z€ Z(YZ ' # $ $ subsidiary companies* 29.12 0.29 3.84 0.04 ? …… ( X Y( €( Y( Total Revenue 10,047.24 100.00 9,054.57 100.00 Growth Rate (%) (%) J 3Y( Z ( J J ‚Z ( Xƒ 3(€3 J H # 3:( € Z ( Total Revenue 10.96 23.97

‚— † H ! Uƒ 2008 Revenue % 7,018.71 96.10 7,018.71 96.10 ( X Y(Y€ € (Z€ Y( 61.11 0.84 3 ( X 3(:X Y( 3 7,303.69

3(3Y 100.00 (%) X( X Z(€ 3€(Z 7.03

Â… $ $ $ 3:: Â…Â… ? $ ) $ $ ) # ) $) ) & # ) (

Revenues classied by main business of L.P.N. Development Public Co., Ltd. and subsidiary companies 2010 2009 J $ " $ Revenue % Revenue % J U J $ $ :)XY ( : ( ) 3 ( € : (XZ Total Revenue from Sale 9,604.84 97.44 8,717.35 97.62 J U J ? U $ # (3Z Y(Y (XX Y(Y€ J $ $ (XY Y( : € (Z Y(XY Total Revenue from Rental 42.72 0.43 57.89 0.65 J H # % % % % ; $ $ $ … 3 Z( Y 3( € :(: Y(:Y ? …… X(€: Y( (€ Y( Total Revenue 9,856.85 100.00 8,929.74 100.00 Growth Rate (%) (%) J 3Y(3 Z (Z J J ‚ZX(ZYƒ ‚Y(3Yƒ J H # % % Total Revenue 10.38 24.06

2008 Revenue )Y3 ( Z 7,014.42 €( €Z(3 57.95 % X( € ( 7,198.09

% : ( € 97.45 Y(Y Y( Z 0.81 % Y(X€ 3(3Y 100.00 (%) (3 (Z3 % 7.38

Â…Â… ? $ ) $ $ ) # ) $) ) & # ) (

50

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Organization Chart

Board of Directors

Nomination & Remuneration Committee

Audit Committee

Executive Committee

Risk Management Committee

Managing Director Pornsanti Co.,Ltd.

Internal Audit

Business Development Division

Corporate Administration Division

Branding & Marketing Division

Human Resources <

Managing Director L.P.N. Development Public Company Limited

Managing Director Lumpini Property Management Co.,Ltd.

Managing Director Lumpini Project Management Services Co.,Ltd.

Deputy Managing Director

Deputy Managing Director

Deputy Managing Director

Corporate Finance Division

Business Community Sales Community Community Preventive Project Development Management Management Finance Management & Management Division Support Division Management Division Maintenance Division Division Division Division

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

51

Board of Director

52

Mr. Pakorn Thavisin

Prof. Siri Keiwalinsrit

Mr. Tawechai Chitasaranachai

Mr. Amornsuk Noparumpa

Mr. Thep Roongtanapirom

Mr. Weerasak Wahawisal

Mr. Vudhipol Suriyabhivadh

Mr. Tirachai Panchasarp

Mrs. Jongjit Thapanangkun

Mr. Tikhamporn Plengsrisuk

Mr. Pichet Supakijjanusangsrisuk

Mrs. Yupa Techakraisri

Mr. Kumpee Chongthurakij

Mr. Opas Sripayak

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Management Team

Mr. Pakorn Thavisin Age: 71 years Position: Chairman of the Board of Directors and Independent Director $ † › ! $ U & ) @ $ › ;  ; # ! $ ‚ 33ƒ ! # † › ; # ‚; YžZYYYƒ $ * $ J # ‚J 3XžZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › U $ ; $ $ $ ; ) @( ( ( ; " () @ $( › # ÂŒ ‚! $ƒ () @ $( › * $ $ $ $ ; ) J ? $ " () @ $( › U $ ; ) & & () @ $( › U $ ; ) Š & () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ  Prof. Siri Keiwalinsrit *# † 3 Position: Vice Chairman of the Board of Directors and Independent Director $ † › ; ; # @ ) #& — › U % %@ ) @ # $ ! $ › @@(U( ! — ! # † › ! # ; @ $ $ *$ ) " $# — ) # $ › * $ # ‚* žZYY€ƒ) ; *

$ # ‚;* Z€žZYY ƒ $ ‡  %‡ ; ‚ 3 žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › > U $ ; $ $ $ ; ) @( ( ( ; " () @ $( › @ ; # ) H @ " $ ‹ › @ ; # )  ( ) ? Â’ $ › ˜ $ H "  @ $ H # ) H  J $ › *$ $ ?

) $ ?

* › *$ * * ) * * * › *$ @ # $ ) ; @ $ › *$ @ $ ; ) ; @ $ $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Â

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

53

Mr. Tawechai Chitasaranachai Age: 72 year Position: Vice Chairman of the Board of Directors, Nomination and Remuneration Committee Member and Independent Director $ † › U # #) H K # #) ! K — ) ! K ) ! # † › ; *

$ # ‚;* ZXžZYY ƒ ! ; * ‚ ?;ƒ Work experiences in the past 5 years † › > U $ ; )  $ J H " $ $ $ ; ) @( ( ( ; " () @ $( › ; ? () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Â

Mr. Amornsuk Noparumpa *# † X€ Position: Director, Chairman of Audit Committee, Chairman of Nomination and Remuneration Committee and Independent Director $ † › U % %@ ) @ Â? ) @ $ › U % %@ ) @ # $ ! $ › @@(U( ‚ ƒ) ! — › ;  ; # ! $ ‚ ::ƒ ! # † › ; # ‚; YžZYY ƒ) * $ # ‚* Z žZYY ƒ $ J ‚J :žZYY:ƒ ! ; * ‚ ?;ƒ › # ) 3 › *$ $ H # ) Work experiences in the past 5 years † › ; ) * $ )  $ J $ $ $ ; ) @( ( ( ; " () @ $( › ; ) * $ $  $ J H " ) J @ " () @ $( › ) ; " ) H Â’ › *$ / ; ) ! * " () @ $( ZYY ÂŒ ZYY:† › ; ) / ; $  ) J $ J ; ) ! * " () @ $( ZYY ÂŒ ZYY:† › U $ ; ) J $ () @ $( › *$ ) U & * $ " () @ $( › U $ ; ) * $ " () @ $( ZYY ÂŒ ZYY † › > $ ) U & * $ " () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Y(Y [

54

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Mr. Thep Roongtanapirom Age: 66 years Position: Director, Audit Committee Member, Nomination and Remuneration Committee Member and Independent Director $ † › H U *$ ) H K ‡ $ *

#) Columbia University, USA › U ‚ ƒ) ! — › U *

# ‚ ƒ) ! — ! # † › ; # ‚; ZYžZYYZƒ) * $ # ‚* žZYY€ƒ) $ ; ‚ ; Y žZYY ƒ $ J ‚J :žZYY:ƒ ! ; * ‚ ?;ƒ › H & * $ ‚ H* Y žZYY ƒ ‹ & / € † › ; ) * $ H " )  $ J Member and Independent Director, L.P.N. Development Public Co., Ltd. › * $ H " ) J @ " ( @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3Yƒ † Y(Y [

Mr. Weerasak Wahawisal *# † Position:

€ Director, Audit Committee Member, Nomination and Remuneration Committee Member and Independent Director $ † › H *

# ) — ) —( (*( › H U *$ ) ? — ) —( (*( › U U *$ ‚ ƒ) ! — ! # † › ; *

$ # ‚;* X žZYY ƒ $ ; # ‚; :3žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) * $ H " )  $ J Member and Independent Director, L.P.N. Development Public Co., Ltd. › ; *

# ; ) J @ " () @ $( › > $ Âź J & H # › *! ‹ H $ $ ‡ ) !* ? # (@ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Â

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

55

Mr. Vudhipol Suriyabhivadh Age: 66 years Position: Director, Nomination and Remuneration Committee Member and Independent Director $ † › U ‚*

#ƒ —  Â‹ ) * › @@(U() & ! — › ; ) H # ) H;) @ ) - $ ! # † › ; # ‚; XžZYY ƒ $ * $ # ‚* žZYY€ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; )  $ J H " $ $ $ ; ) @( ( ( ; " () @ $( › * $ H " )  $ J H " $ $ $ ; ) ! ‹ ‡ $ $ " () @ $( › * $ $ J & H # $ $ $ ; ) @ # J $ " () @ $( › * $ $ $ $ ; ) U #& & J " () @ $( $ $ # 3Y †  $ # ‚ $ # Q ƒ ‚ 3 ? " ZY3YĠ Y(33[

Mr. Tirachai Panchasarp *# † Z Position : Director $ † › $ ) ; ) " ! # † › ; *

$ # ‚;* ZXžZYY ƒ $ ‡  %‡ ; ‚‡ ; 3 žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) @( ( ( ; " () @ $( $ $ # 3Y †  $ # ‚ $ # Q ƒ ‚ 3 ? " ZY3YĠ Y( Y[

Mrs. Jongjit Thapanangkun *# † X Position: Director $ † › H ) J & # — › U ) J & # — ! # † › # *—* @ # # ) ; $ $ # # * ) ; *

$ # ‚;* žZYY ƒ $ ‡  %‡ ; ‚‡ ; 3 žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) @( ( ( ; " () @ $( › ; ) U $ " () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Y(Z [ Â…H ( “ ! & ) H ( Â’ #K ! #& $ H ( Š # & K " # (

56

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Mr. Tikhamporn Plengsrisuk Age: 61 years † ; ) / ? ) / $  $ J H " $ † › U # #) #& — ! # † › ; # ‚; Z žZYYZƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) / ? ) / $  $ J H " ) @( ( ( ; " () @ $( › ; ) () @ $( › ; ) @ H # () @ $( › ; ) @ K H # () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Y(X [

Mr. Pichet Supakijjanusan Age: 61 years † ; ) / ; $  $ J H " $ † › U * ) #& — ! # † › ; # ‚; Z žZYY ƒ) ; *

$ # ‚;* ZXžZYY ƒ) ‡  %‡ ; ‚‡ ; 3 žZYY ƒ $ * $ # ‚* Z3žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) / ; $  $ J H " ) @( ( ( ; " () @ $( › ; ) () @ $( › ; ) @ H # () @ $( › ; ) @ K H # () @ $( › *$ $ — ; () @ $( ZYY ÂŒ ZY3Y† › ; ) * $ H " $ $ $ ; ) H " () @ $( $ $ # 3Y † $ # ‚ 3 ? " ZY3YĠ

 Y(€ [

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Mrs. Yupa Techakraisri Age: 60 years Position: Director and Executive Director $ † › U ) J & # — › *$ $ *

#) / ! # † › ; # ‚; ZžZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; $ / ; ) @( ( ( ; " () @ $( › ; ) () @ $( › ; ) @ H # () @ $( › ; ) @ K H # () @ $( › ; ) * # () @ $( › ; $ / ; ) !( Š # $ " () @ $( › ; ) $ — ; () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ 3( X[

Mr. Kumpee Chongthurakij *# † €X Position: Director and Executive Director $ † › U U *$ ) * — ! # † › ; # ‚; žZYY ƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; $ / ; ) @( ( ( ; " () @ $( › ; ) () @ $( › ; ) @ H # () @ $( › ; ) @ K H # () @ $( › ; $ / ; ) !( Š # $ " () @ $( › ; ) * # () @ $( › ; ) ( (*( $ () @ $ › ‡ $ ") ‡ $ ! $ $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ 3(Z:[ Â…H ( “ ! & ) H ( Â’ #K ! #& $ H ( Š # & K " # (

58

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Mr. Opas Sripayak Age: 48 years Position: Director, Executive Director and Managing Director $ † › U * ) & — › H H(U(*() ! — ! # † › ; # ‚; 3žZYYXƒ ! ; * ‚ ?;ƒ ‹ & / € † › ; ) / ; $ H # # ; @( ( ( ; " () @ $( ZYY۠ › * H # # ; ) @ H # () @ $( ZYY3 ÂŒ ZYY † › H # ) J $ ; ; ) @ H # () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Â

Miss Somsri Techakraisri Age: 49 years † ; H # # ; $ † › @@(U() ! — › H H(U(*() ! — ! # † › ; # ‚; YžZYYXƒ ! ; * ‚ ?;ƒ › ‡ $ # ! @ $ * ‹ & / € † › ) @( ( ( ; " () @ $( › ; H # # ; ) @( ( ( ; " () @ $( › H # # ; ) () @ $( $ $ # 3Y †  $ # ‚ 3 ? " ZY3YĠ Â

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Happy with Great Opportunities in the Future

We determine to grow strongly, create quality projects and expand business opportunities to <=>:^; ` ? \>] :=` returns to shareholders while realizing the value of good quality of living in the society of the organization as well as the responsibility towards the environment and neighboring communities.

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Competitive Environment

In 2010, the residential condominium market was brought back to life again especially at the end of quarter 3 and the beginning of quarter 4 when as many as 35,000 units of new projects were opened or equaled to 50% of all new projects opened in the whole year as a result of the political unrest at the end of quarter 1 and in quarter 2. There were approximately 60,000 units of new

$ $ ZY3Y 3 Y[ ) / ZYY " US which later slowed down the expansion of new condominiums. With regard to the overall residential market, new residential condominiums commanded the highest market share of 52%, increased from 42% in 2009. Projects operated by listed companies in the Stock Exchange of Thailand still commanded as high as 72% market share, similar to the year 2009. Table comparing new projects opened between 2006 and 2010 Type 2010 2009 2008 Houses Condominiums Townhouses Others

15% 52% 29% 4%

19% 42% 33% 6%

17% 29% 47% 7%

2007

2006

12% 62% 19% 8%

18% 52% 23% 7%

Source : AREA, Research and Development Department, L.P.N. Development Public Co., Ltd.

In terms of sale price of new residential condominiums opened in 2010, the number of condominiums with the average price of 1-2 million THB per unit were highest in the market with the market share of 50%. Next in line was the residential condominiums with the average price of 2-3 million THB, 3-5 million THB, lower than 1 million THB and higher than 5 million THB with the market share of 18%, 14%, 11% and 7% respectively. The above information showed that business operators paid much attention to the development of residential condominiums with the average price of 1-2 million THB because of the large size of the market and high demands for residences. However, expertise is needed in the development of projects to serve the needs of such target group,

# ) # ) $ " $( ! - importance of such factors and has continuously been developing and become a model for other business operators to follow which enable the Company to gain the upper hand in the competition in the market. Table comparing new projects opened between 2006 and 2010 Sale Price 2010

2010

2009

2008

2007

2006

High Mid Low

16% 72% 12%

26% 64% 10%

19% 70% 11%

17% 55% 28%

30% 60% 10%

Source : AREA, Research and Development Department, L.P.N. Development Public Co., Ltd., excluding the national housing project

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Approximate number of competitors of the Company’s size in comparison to competitors

Based on the information collected by the Research and Development Department of the Company at the end of 2010, there was the total of 106 residential condominium developers. 143 new projects were opened with the total of approximately 68,000 units developed. There were 33 developers of high-end condominiums with 16% share of units developed, 57 developers of middle-end condominiums with 72% share of units developed and 16 developers of low-end condominiums with 12% share of units developed. The Company commanded 11% market share of new residential condominiums with the total of 7,723 units opened, most of which were successful in terms of sale.

40%

80,000 32%

30%

60,000

16%

40,000

20% 11%

11% 9%

10%

20,000 3,471

9,738

3,747

7,840

7,723

2007

2008

2009

2010

0%

0

2006 LPN

Other

Market share

Table comparing new projects opened between 2006 and 2010 Units Opened Bangkok and Metropolitan region L.P.N. Market share

2010

2009

2008

2007

2006

68,651 7,723 11%

24,523 7,840 32%

32,982 3,747 11%

59,501 9,738 16%

39,459 3,471 9%

Source : AREA, Research and Development Department, L.P.N. Development Public Co., Ltd., excluding the national housing project

The total of 38,374 condominiums units were completed and registered in 2010. The Company commanded the highest market share of 16% or equaled to 6,144 units. There were 7,683 units of high-end residential condominiums completed and registered with the average price of more than 3 million THB per unit or equaled to 20% of all completed and registered condominiums. As for completed and registered middle-end condominiums with the average price of 1-3 million THB per unit, there were 21,760 units or 56% of all completed and registered condominiums. There were 8,931 units of low-end residential condominiums completed and registered or equaled to 24% of all completed and registered condominiums in the year Table comparing condominiums registered between 2006 and 2010 Units Opened Bangkok and Metropolitan region L.P.N. Market Share

2010

2009

2008

2007

2006

38,374 6,144 16%

33,309 6,281 20%

26,124 8,009 31%

16,222 3,050 19%

14,807 3,333 23%

Source : AREA, Research and Development Department, L.P.N. Development Public Co., Ltd., excluding the national housing project

Summary of the Real Estate Market in 2010

Opened 2010 2009condominium 2008market. The development of residential condominiums especially The Units year 2010 was another golden year of the residential new projects opened took a leap growth and caused concerns of oversupply to many parties. However, after considering the details carefully, it would be found that the openings of residential condominiums in the past year were only the adjustment towards normal ( ; # Z ) & & "

—

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

63

together with the political unrest in the middle of the year, resulting in the slowdown in the development of various projects. When the $) " & K $ ( K $ ) ) $ ( In terms of income, most business operators exceeded their target in quarter 1 as it was the end period of the government’s ) & # / quarter. The income of most business operators had thus decreased in the next quarter. ! $ $ ) U & ! $ $ " "" $ $ % % ‚@!>ƒ $ $ $ # ( * ) $ # +

$ " $ " $ $ $ & ( Direction of Real Estate Business in 2011

In 2011, the forecast of the macro economic situation of the country implies continual growth, though not as high in comparison to the year 2010 when the economic recovery achieved a leap growth. Business operation this year must be done carefully because of various factors i.e. the increase of oil price following the recovery of global economy, the increase of minimum wage, the government’s newly developed # K $ ) ) + $ " #

# $ " $

$ ( On the other hand, oil price will be the enabling factor for consumers to decide to buy and live in a condominium in order to reduce travel / $ $ U #& &( * " ) " $ $ & " " / $ alongside the development of urban areas and public transportation system. The severity of the competition should be less as can be seen

& $ $ $ $ $ $ $ &

# " $ $ &( Â K $ $ " $ $ $ Z # ) ) condominiums developed along the new line of public transportation system (completed or under construction) with middle to higher-middle range of sale price and condominiums developed in densely populated areas based on the needs for space from the extension of families. ! $ # " # $ " " & ( !

$ $ " $ & $ / # $ Y)YYY $ ZY33) is more or less the same as in the previous year. With regard to the registration of residential condominium in 2011, the information collected by the Research and Development Department of the Company shows that there will be around 35,000 – 40,000 units of completed and registered condominiums which is in the same level ZY3Y( ! # 3%Z ! U ( ! $ # & €Y[

$ $ K $ $( ! $ / $ " $ $ # $ " $ $ & ) @ $ $ ( The year 2011 is yet another challenging year for the development of residential condominiums because of the presence of both positive $ # ( ) " & # # $$ % $$ income range who needs quality residence with reasonable price will continue to grow alongside the development of urban areas, the society and economy as well as changing behaviors of consumers.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Risk Factors

The Board of Directors of the Company has delegated the Executive Directors Committee to be responsible for risk management of the operation of the Company to be at acceptable level and consistent with constantly changing circumstances. The risks and management of those risks must be approved by the Board of Directors and are deemed one of the main factors in the preparation of annual strategy and business plan. Moreover, risks are to be followed-up, controlled and reported to the Board of Directors on a regular basis in order to ensure that the business operation is in line with the direction and policy approved by the Board of Directors. The Company’s risk management process consists of the followings: - Identifying risks which is the stage to identify risks and related national and international factors that are constantly changing as well as predicting new risks which may arise in the future using both internal and external information. - Assessing and managing risks which is the stage to apply various appropriate methods and the participation of the Executive Directors Committee to effectively assess all risks and possible results of the risks while also looking for ways to manage or reduce risks to be at the acceptable level. - Monitoring and controlling risks which is the stage to quarterly monitor and report the result of the performance according to the risk management plan approved by the Board of Directors. In case of unforeseen risks which may severely affect the business, the Exeuctive Directors Committee will have to review the business plan and target and present to the Board of Directors for approval. ZY33) $ $ & # & # † Financial Risk ; # Z ) " # # & # ) ' $ # ‚ + ƒ) $ — ( * ) " $ $ " ( * ) Q # " $ " ' $ # ' $ ( after deducting interesting bearing debt, the Company still has excess liquidity. Therefore, the Company does not identify liquidity management as one of the risk factors for the operation in 2011. ) # # ' $ # ‚ + ƒ $ # $ + " YY ! U( ‚ # % K J " Risk Management % # " $ # " $ $ (#( the match between the price of condominium unit and income and good practice while paying the down payment through installments e.g. not creating any other debts before the loan is approved and not being behind in payment. The Company " # $ " K ( * ) ; # $ $ / $ " $ K $ " ( % $ $ $ & " ' # $ & $ # # Company. The sale contract will only be signed after the loan is approved. This process will be implemented in new projects to be $ ZY33 $ $ $ " $ ( ! ' ) $ ( % H # $ $ # $ K " ( ! " "

$ # # $ " K $ $ $ " " (

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Strategic Risks The business strategy of the Company focuses on the development of residential condominiums for those in the middle to lower-middle income range who are in need of quality urben residence. There are a great number of people in such target group and thus also lots of business opportunities helping the Company to grow. However, there are also risks associated with such strategy. If the market situation

# $

< $ =

$ 3:: )

$ ( ! ) $ $ # & $ # & † 1. Competitive market situation Risk Management 3ƒ — # # " $ # $ ‚ZZ '( ( $ ƒ $ & $ #

# # $ $ ( Zƒ J $ $ / " # $ # $ # ) " process of the whole organization and developing alliances in construction which is key to cost management. ƒ $ $ K / $ Q " $ & $ condominium with reasonable price. ƒ $ - K $ $ $ " # " $ $ & $ $ + # K $ / $ $ <@ = " $ ( €ƒ # " $ # $ $ " $ $ " ( ! # / $ "

( Xƒ ‡ # # " " $ # < / = $$ $ < = <@ = " $( 2. Focus Strategy Risk Management % ; % $ $ K " " $ % $ / $ # $ # / $ $ ' $ $ " $ <@ = " $( Business Environment Risk It is realized that the current business environment has been changing quickly and having various impacts as a result of widely accessible ( ‡ $ $ " & ( " ) $ ) % & $ ) "

) + / " # - ( H ) $ $ # " $ $ / $ $ " $ # K densely populated area which requires long construction period and creates unavoidably impacts to neighboring communities in terms of air and sound pollution. The Company gives importance to environmental and social responsibility in its policy. It is one of the dimensions in the # # - ( ! $ $ # & " † 1. Awareness of social rights and environment Risk Management % ‡ $ # " # $ $ K # $ " $ $ " $ ( ! K $ $ $$ values to the society. The infrastructures and public utilities must be appropriate. The size of roads must be suitable to ( # K $ " % &

( * " reduce environmental and social impacts from the beginning as according to the environmental and social responsibility policy of the Company. % # & # / " $ # " communities to create trust. This will also be a communication channel between the Company and neighboring communities $ K " $ $ (

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

2. Uncertiainty of political situation Risk Management - Plan appropriate growth rate of the Company for each period % H # + / " $ " $ $ # # # < > = as a drive. % H $ - ( Operational Risk & ) " $ # # ) & #) & $ # ( ) " # $ $ ( ! ) ) $ strengthened operational risks as follows: ‚ !KJ & { * # " # Risk Management % # # & # / " & #

" $ $ # # ( % $ & ( % $ $ $ $ ‚ !KJ & & # Risk Management % U " $ # " K $ $ " ( ! # " $ $( ZY33) # H # ; # K Q " $# " $ $ " # K <@ = " $( ! ž" $ # " # $ ( ‚ !KJ & # Risk Management % ZY33) # H # ; # Z ) ) $ ' $ $ $$ " 3[ # ' $ ( ! $

" $ Q $ " €[( U # $ ' $ # $ $ $ " $ $ $ $ " / ; $ U $ ; ( * ) &

Q / $ Q $ ( ‚ \% K % , # ƒ Risk Manageemnt % ZYY:) $ # " $ $ $ $ ( ZY33) $ $ $ $ $ $ organization. % # / )

$( ! # & $ # $ $ $ ' &(

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Direction of the Company’s Operation in 2011

The situation of the residential condominium market in 2010 was very positive as a result of various enabling factors. Towards the end of 2010, there was a great number of new openings of residential condominiums, especially those in the price range of one million THB which caused concerns of oversupply. The Bank of Thailand was also concerned of the bubble in the real estate sector and thus decided to raise the loan-to-value (LTV) ratio as preventive measures to slowdown condominium and housing purchase. Other factors which may pose risks and obstacles for the operation in 2011 include the continuous increase of oil price which is a cost pressure of business operators, overall inflation situation of the country, the increase of minimum wage as well as higher interest rates. However, the overall economy of the country is still growing continuously according to the economic forecast of responsible agencies. The expansion of public transportation and higher oil price are also enabling factors for residential condominium development which is the main business of the Company. As a result of such situation, the Company has determined the direction for operation in 2011 as follows: 1. Plan income growth rate at 25% from 9,600 million THB in 2010 to be 12,000 million THB in 2011. As of the end of 2010, the backlog for 2011 was 11,500 million THB or 96% of the target. 2. Plan sale growth rate at 6% from 15,000 million THB in 2010 to be 16,000 million THB in 2011 to be consistent with high-risk situation. This will allow the Company to maintain continual growth rate and enable the income of the Company to grow sustainably until 2013. 3. Plan the target of new project openings at the value of 16,000 million THB to be in line with the income and sale growth rate. The new products opening in 2011 will mostly be in the group of Lumpini Condotown and Lumpini Ville. At the end of 2010, the Company had already invested in 3 pieces of land to realize such plan, namely, Lumpini Condo Town Nida-Serithai, Lumpini Ville Lasalle-Bearing and Lumpini Ville Phattanakarn. In 2011, the Company will continue to develop 22.5 sq.m. one bedroom condominium units to sustain the success of the previous year 4. The Company will still focus on cost management and operational expenses control which will help improve the business operation for continuous growth of the Company. The Company believes that the operation under the balanced scorecard strategy, sufficiency economy philosophy as well as appropriate risk management will enable the “creation of quality urban residence� which is the business of the Company focusing on middle and lower-middle target group to maintain its success and continual growth, under good governance principle, the consideration for all stakeholders and environmental and social responsibility.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

L.P.N. Strategy Map 2011 Shareholder Value Optimized Fin. Growth

Corporate Governance Sustainable Wealth

Customer Value Trusted Brand Product Value delivery

Experience Management

Service Value delivery

Social & Environment Value In Process

After Process Responsibility

Strategic Alliance Value Unity & Growing Together Optimized Wealth

Relationship Management

Continuous Development

Internal Process Value ‡ ?

U & ? Effectiveness Outsource

Staff Value Knowledge Management Competency

Value Organization

Career Growth Work / Life Balance

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Transparent Adhering to Good Corporate Governance Practices

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Audit Committee Report 2010

Audit Committee of L.P.N. Development Public Co., Ltd. comprises Mr. Amornsuk Noparumpa as a Chairman and Mr. Thep Roongtanapirom and Mr. Weerasak Wahawisal as Committee members. On 16 December 2010, the Board of Directors of the Company has also appointed Mr. Vudhiphon Suriyabhivadh as a Committee member. All four members of the Committee are Independent Directors who are qualified, knowledgeable and experienced in organization management and finance. In 2010, the Audit Committee held four meetings altogether, all with the presence of all Committee members. The summary of main duties of the Audit Committee is as follows: 1) Review of the Financial Statements. The Audit Committee reviewed the financial statements quarterly in joint meetings with the auditors and Management. Inquiries and explanations were made to ensure that the information used to produce the financial statements were in accordance with the accounting standards and laws and that the disclosure in the notes to the financial statements was sufficient to the satisfaction of all concerned before approving the said financial statements. This year, the financial statements and accounting records were produced according to the International Financial Reporting Standards (IFRS). There were three accounting standards, namely, No. 18 (Income), No. 19 (Employees’ Benefits) and No. 26 (Accounting and Retirement Benefits Project Report) which would be effective in 2011. The Company has started to apply the new accounting standards since 1 January 2010 and made retrospective adjustments to the financial statements of the year 2008. 2) Review of Risk Management at the policy level. The Executive Directors Committee established risk management strategies both in the long-term business plan of 3 years and the short-term one of 1 year. The Audit Committee monitored the performance of the Executive Directors Committee by reading the minutes of the Executive Directors Committee meeting which was held once a week and continuously provided recommendations to reduce risks in business operation as well as management guidance towards sustainability. 3) Review of Corporate Governance. The Audit Committee had ensured compliance with the regulations of the Stock Exchange of Thailand and related laws about real estate development business through internal audit reports and financial reports of all quarters: - connected transactions between the parent company and subsidiary companies were reviewed and found that they were done with sufficient disclosure of information, for example, contract documents were accurately produced and the payment was made according to the schedule. As for loans, interest rates were based on market rates and paid on a monthly basis while the principal repayment was made on yearly basis. - the effectiveness of internal audit system was reviewed with the focus on asset management, leakage or fraud prevention, errors reduction as well as resources utilization. - the efficiency of the Company’s transactions was reviewed. The International Audit Department had been assigned to conduct ad hoc examination at the demand of the Management in order to ensure the transparency of the operation of the Company. The auditors and internal audit reports were agreeable that there were no significant problematic issues. The Thai Institute of Directors Association (IOD) has been awarding the Company for its good corporate governance for 3 consecutive years. The Company had been awarded Level 4 (Very Good) during the past 2 years and Level 5 (Excellent) this year. 4) Supervision of Internal Audit. The Audit Committee had considered and approved the annual internal audit plan which emphasized the monitoring of internal audit system and quarterly reports. This year, reprocess had been done internally to save cost, time and personnel in order to be consistent with the culture of the organization. The review result showed that the overall performance had achieved the goal set by the organization. Furthermore, the appropriateness of manpower, budget of audit unit and performance of the Head of Internal Audit unit were also considered annually. 5) Appointment of Audit for the year 2011. The Audit Committee had considered the result of the performance and independence of the Certified Public Accountant in the previous year and agreed to propose DIA International Accounting Office to be the auditor in 2011 as well as the remuneration and had proposed to the Board of Directors for approval from the shareholders meeting on 31 march 2011.

On behalf of the Audit Committee

(Mr. Amornsuk Noparumpa) Chairman of Audit Committee 25 January 2011

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Report on Responsibility of the Board of Directors on Financial Reports The Board of Directors is responsible for the consolidated financial statements of L.P.N. Development Public Co., Ltd. and subsidiary companies as well as financial information appearing in Form 56-1 and the annual report. The said financial statements have been prepared in accordance with the generally accepted accounting standards by applying appropriate accounting policy which has been practiced regularly and with careful discretion and best estimation. Important information is also adequately disclosed in the notes to the financial statements. The Board of Directors is aware of the accuracy and transparency of the financial statements. There are appropriate and efficient internal control systems, adequate disclosure of important information in the notes to the financial statements as well as explanations and analysis so as to ensure the accuracy and completion of the record of the accounting information for the highest benefit of the shareholders and investors in using the financial statements. With regard to this matter, the Board of Directors has appointed an Audit Committee which comprises of 3 Independent Directors, 2 of whom have the knowledge and experiences in accounting and finance, to review the accounting policy and the quality of the financial report and the internal control system. The comments of the Audit Committee on this matter appear in the Audit Committee’s report which is shown in Form 56-1 and in the annual report. The Board of Directors opines that the overall internal control system of the company is at satisfactory level and able to reasonably build confidence on the reliability of the financial statements of the company and subsidiary companies as of 31 December 2010.

(Pakorn Thavisin) Chairman of the Board of Directors

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

73

Nomination and Remuneration Committee Report

!  $ J $ " U $ ; $ to 2 years and comprises 7 directors, the majority of which are independent directors. The Nomination and Remuneration Committee $ X  " ZYY ( ZY3Y)  $ J $ $ † 3( H ( * &  Z( H ( ! ( H ( ! J # ( H ( ‹ & ‹ €( H ( > $ " $ X( H ( ! & # & ( H ( & KK

* $ $ $ $ ; > U $ ; $ $ $ ; * $ H " $ $ $ ; * $ H " $ $ $ ; ; $ $ $ ; / ; $ / ? / ;

! $ "  $ J $ $ " U $ ; 3 ; " ZYY ( ZY3Y) €  $ J # $ $ $ $

$ # $ " $ $ † 3( * $ !  $ J " # # $ ZYY: $ # $ $ $ ‚ % $ " $ ƒ) U $ ; $ # & # / ( ! " - $ $ $ U $ ; (

ZY3Y) $ " $

" $ $ # "K $ " $ ( ! $ $ $ ZY3Y( ! $ $ Q $ " $ $

(

Z( J ; ! $ $

$ # ) " ) ' $ $ / # $ #% $ # ) " $ / ( ! $ $ $ $ "

$ $ $ $ $ " + $ $ $ ( 3. Remuneration for Directors ) " $ $ $ ( ? $ $ $ (

ZY3Y) # $ $ $ " $( $ $ $ $ $ $ " $ $ " $ " $ " ( ! $ $ " $ $ ) $ & / # ! $

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

remuneration for directors. In 2010, the remuneration for the Chairman and Vice Chairman of the Board of Directors were revised to be more appropriate. The remuneration for the whole Board of Directors for the next 3 years will also be considered in 2011. 4. Other business according to the agenda Each year, the Nomination and Remuneration Committee will consider various issues to present to the Board of Directors for approval according to the agenda in each quarter as follows: - Interim dividend payment and mid-year bonus payment for employee - Annual bonus payment for employee - Annual remuneration payment for employee - Annual reward and management fee for executive directors % @ $ " $ ' ( The Nomination and Remuneration Committee has performed its duties in 2010 with prudence, researched further information on related matters carefully and expressed their comments independently and creatively in order to set the standard and ) $

$ # $ # # $ and trust from the Board of Directors in assigning important issues to the Committee for consideration.

(Amornsuk Noparuma) Chairman of the Nomination and Remuneration Committee 1 March 2011

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

75

Changes to the Management Structure

3:: › ! $ & / # ! $ " Z3 ’ 3:: U $ ; # 3X † 3( H ( # J & # U $ ; Z( H ( # > U $ ; ( H ( & ! > U $ ; ( H ( ! / ; €( H ( Š ; X( H ( H U ; ( H ( ! J # ; ( H ( ! ; :( H ( ’ #K ! #& ; 3Y( H ( & ; 33( H ( “ Š # @ ; 3Z( H ( & ! # ; 3 ( * ( ( ; ( & ; 3 ( H ( ! & # & H # # ; 3€( H ( “ ! & ; ; H # # ; 3X( H ( & KK ; ; H # # ; 3:: › H ( # J & # # $ U $ ; $ " $ H ( # # $ ; $ # # " ( ! U $ ; $ H ( H U & U $ ; ( 3:: › H ( & ! # $ $ $ ; " $ + $ ( * ( ( ; ( & # $ ; $ " # # ( ! U $ ; ) ) $ H ( > $ " $ & ; $ $ $ ; ( ZYYY › ! U $ ; � H # 3 ‡ " ZYYY $ * $ $ # † 3( ( Š * $ Z( H ( > $ " $ * $ H " ( H ( ! J # * $ H " ( H (  ’ & * $ ! $ " * $ " $

$ # & / # ! $ # ( ZYY3 › ! U $ ; � H # $ % * $ Z% $ $( ZYYZ › ! U $ ; $ $ H # H ( & ! > U $ ; ZYY › ! # $ U $ ; $ # ! ; * ‚ ?;ƒ $ & / # ! $ † 3( ; # Z( U $

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3. Finance for Non-Finance Directors 4. Director Accreditation Program 5. CEO Performance Evaluation 6. New COSO Enterprise Risk Management ZYY€ › ( H U $ Y Â’ ZYY€( ! U $ ; Â? H # J ( žZYY€ $ H ( & ! U $ ; )

33 * # ZYY€( › ! U $ ; $ H ( * &  $ $ ; )

ZZ ; " ZYY€( › ! U $ ; $ * $ 3 ‡ " ZYYX % Y * ZYY ( ! * $ # " † 3( ( Š * $ Z( H ( ! J # * $ ( H ( > $ " $ * $ 4. Mr. Amornsuk Noparumpa Audit Committee ZYYX › H ( ! & # & $ / ; H ( ! # $)

3 Â’ ZYYX( › ( Š $ H ( ! $ > U $ ; ) Ăƒ effective from 25 April 2006. › H ( ‹ & ‹ $ ; )

Z€ * ZYYX( H ( * &  $ * $ $ H ( ‹ & ‹ * $ ( Š $ H ( > $ " $ # $)

Z€ * ZYYX) $ # Y * ZYY ( ! * $ $ # " † 3( H ( * &  * $ Z( H ( ! J # * $ ( H ( ‹ & ‹ * $ › H ( ? & $ / ; $ H # # ; )

Z€ * ZYYX( ZYY › ! U $ ; Â? H # J ( €žZYY  " ZYY $ " $ U $ ; ) / $ ( › ! # - $ * H # $ ZYY ZX * ZYY $ $ $ @  % # $ $ $ " " $ " " $ $ ( ! $ $" & $ ( › ! # $ U $ ; $ # ! ; * ‚ ?;ƒ $ & / # ! $ † 3( ; # 2. Director Accreditation Program ( J # › ! # - $ $ ) # " ) ) ) # ) & $ & # # ) # $ # $ $ Â? (  $ $ K $ $ $ $ # " ( › ! $ U $ ; $ U $ ; † 3( ; Â? $ Z( # # $ H & # ( J & H # $ ( + 5. Financial reporting X( U $ ; Â? H # ( ? ( ( $ $ ) $ $ H # # ; ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

77

ZYY ! U $ ; H # J ( ¾ZYY Z * ZYY $ 3( * $ & 3( H ( & ! U $ ; Z( ( > U $ ; ( H ( * & ; ( H ( ! & # & / ; $ / ? Z( * * $ Z% 3 H ZYY % Y * ZY3Y 3( H ( * & * $ Z( H ( ! J # * $ ( H ( & * $ ! U $ ; H # J ( ¾ZYY X " ZYY $ $ J # " 3( H ( * & $ J Z( H ( ! ( H ( ! J # ( H ( & ( H ( > $ " $ X( H ( ! & # & ( H ( & KK

ZYY: ? 3Z H ZYY:) U $ ; $ K $ $ " $ # % @ & Z % @ & % @ J ! U $ ; H # J ( Z¾ZYY: Z * ZYY: $ 3( H ( ! > U $ ; $ $ J Z( H ( & * $ $ $ J ( H ( ! & / ; ( H ( ? & / ; $ H # # ; ? 3 ? " ZYY:) U $ ; $ K % @ % & % @ J $ %@ & " ZYY:) H ( * & $ H ( ! J # $ $ J J :¾ZYY: ! ; * ?; ! U $ ; # J ( ¾ZYY: $ $ ZYY:( ! # 3( U $ ; Z( $ $ ; ( / ?

ZY3Y ? 33 H ZY3Y) U $ ; $ K $ $ " $ # % @ J % % @ J % @ J : %J $ 3 % @ $ ! U $ $ %J & # ? 3Z ? " ZY3Y) U $ ; $ K $ $ " $ # K " $ % @ $ ! U #& % @ > J " %J % @ & J $ %J

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Management Structure

The Management structure of L.P.N. Development Public Co., Ltd. as of 31 December 2010 comprised 5 committees as follows: 1. Board of Directors Committee 2. Audit Committee 3. Executive Directors Committee 4. Nomination and Remuneration Committee 5. Risk Management Committee Board of Directors ! U $ ; @( (Â ( ; " () @ $()

$ # J # H )

3 " ) ' $ & $# $ / " † - Independent Director 7 persons (50.0%) - Non-Executive Directors 2 persons (14.3%) - Executive Directors 5 persons (35.7%) The 14 members of the Board of Directors are as follows: 1. Mr. Pakorn Thavisin Chairman of the Board of Directors and Independent Director 2. Prof. Siri Keiwalinsrit Vice Chairman of the Board of Directors and Independent Director 3. Mr. Tawechai Chitasaranachai Vice Chairman of the Board of Directors and Independent Director 4. Mr. Amornsuk Noparumpa Independent Director 5. Mr. Thep Roongtanapirom Independent Director 6. Mr. Weerasak Wahawisal Independent Director 7. Mr. Vudhiphol Suriyabhivadh Independent Director 8. Mr. Tirachai Panchasarp Non-Executive Director 9. Mrs. Jongjit Thapanangkun Non-Executive Director 10. Mr. Tikhamporn Plengsrisuk Executive Director 11. Mr. Pichet Supakijjanusan Executive Director 12. Mrs. Yupa Techakraisri Executive Director 13. Mr. Kumpee Chongthurakit Executive Director 14. Mr. Opas Sripayak Executive Director Ms. Somsri Techakraisri is a Secretary of the Company. ! $ $ $ ' $ $ $ ' independent director of the Securities Exchange Commission as follows: 3(  $ # $ ) " $ ) $ K + ) " $ " ž $ ( 2. Not being a director or having been a director with participation in the management, not being a staff member, employee or advisor receiving regular salary from the company, not having the controlling powers of the company, subsidiary companies, associated K + $ # $ Z ‚ ƒ " " # $( 3. Not having blood ties or by way of legal registration in the manner of father, mother, spouse, sibling, or offspring including spouse of offspring of an executive, major shareholder, those who have controlling powers or those who are to be nominated as executives or those who have controlling power of the company, subsidiary companies and associated company. (  # $ $ " ) " $ # company, subsidiary companies, associated company or major shareholders of the company.

80

The nature of the relations above is as follows: (1) Professional services ›  † $ ) $ # $ ) $ $ ( › ; $ $ # $ $ ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

- In case of auditor: Not allowed in all respects - In case of other professional services provider: Value of transaction more than 2 million THB per year (2)

Business relations ›  † / $ # & $ " ( ( ) # # ) # # # " # # ) # ) # # $ " $ # " ( › Ă„ ; $ $ # $ $ % > Ă… ZY ! U Ă…  !* ( ! $ ) $ $ # 3 ‚ ƒ $ $ (

€( U $ $ $ $ # $ $ &

$ # $ $ # $ " U $ ; ) " / K $ ) $ # $ K $ ( X(  " # $ $ " $ ) K $ $ $ K $ ( (  # $ ž # $ $ ( ( $ $ ; ' ( 3 ÂŒ " # $ " U $ ; & $ ) " $ ) $ K +

$ (

Roles and Responsibilities of the Board of Directors ! $ $ $ " $

$ $

& / # ! $ $ U ; @ $ $ / # † 3( ! $

$ ) "K $ # $ Q # ) $ $ " $ $ Q ' ( Z( ! " ) # ) $ $ $ H # $

$ $$ # $ $ $ " ( ( ! # $ $ ) $ & $ ) $ ( ( ! $ $ ( €( ! & # $ # " ( X( !

$ $ $ # " ( ( ! " # U $ ; $ U $ ; Q

$ $ $ # ( ( ! " U $ $ $ ) / $ $

$ " " $ $ ( :( ! U $ ; $ & / Q $ " " # / / ( 3Y( ! $ $ $ ) $ $ Q # # $ $ " &% # $ $ $ $ $ ( ZY3Y) U $ ; Q # $) ) X # $ $ Z K ( ! U $ ; $ $ 3 # * H # $ ( Appointment and Relief of the Board of Directors ! Â $ J " # ' $ $ $ & $ " ) / $ / ) ' $ $ & ) ) $ ) " &# $ $ " / ( ! Â $ J " $ $ U $ ; Q # " # $ Q #

( $ " " ) Â $ J $ " U $ ; Q #( * $ ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

81

vacant position is done, the article 11, section 3 of the Articles of Association on the Board of Directors stated that the Shareholders’ meeting is to elect a director according to the following criteria and process: “In every Annual General Meeting, one-third of directors are to retire. If the number of the directors is not divisibly, the number of retiring $ " % $ ( ! $ $ $ # of the company are to be determined by drawing process. As for the following years, the directors who are in the position for the longest period of time are to retire. If the number of such directors is more than the number of those to retire, they are to draw. The retiring directors may be re-elected again.� Audit Committee The Board of Directors has appointed an Audit Committee comprises 3 independent directors as follows: 1. Mr. Amornsuk Noparumpa Chairman of Audit Committee 2. Mr. Thep Roongtanapirom Audit Committee Member 3. Mr. Weerasak Wahawisal Audit Committee Member Ms. Paweenrisa Wasitrakun is the Secretary of Audit Committee. ! * $ $ ' $ $ $

$ # & / # ! $) $ $ $ ' $ ' $ " / # $ & / # ! $( H ( ! J # $ H ( ‹ & ‹ $ & $#

# $ ( ! * $ regularly met and reported to the Board of Directors. In 2010, the total of 4 meetings of the Audit Committee was held. The Audit Committee has the duties, roles and responsibilities to be independent in supporting the Board of Directors in ensuring corporate # "

$ # $ # ) # + " ) # information disclosed to the public and shareholders, reviewing internal control systems and internal audit system and communicating with auditors of the Company. $ " ž3 $ $ / # * ‚ ( ƒ U( ( Z€€3) U $ ; Q H # J ( 1/2010 on 18 February 2010 resolved to change roles and responsibilities of the Audit Committee to be more concentrated. This was also to "

$ & / # ! $ ' $ & * $ U( ( Z€€3( In 2010, the Board of Directors’ Meeting Ref. 6/2010 on 16 December 2010 resolved to appoint Mr. Vudhiphol Suriyabhivadh, Director and Independent Director, as an Audit Committee Member, effective from 1 January 2011. Therefore, there will be 3 directors who are knowledgeable

# $ * $ ) ) H ( > $ " $ ) H ( ! J # $ H ( ‹ & Wahawisal. In 2011, the members of Audit Committee will comprise the followings: 1. Mr. Amornsuk Noparumpa Chairman of Audit Committee 2. Mr. Thep Roongtanapirom Audit Committee Member 3. Mr. Weerasak Wahawisal Audit Committee Member 4. Mr. Vudhiphol Suriyabhivadh Audit Committee Member Ms. Paweenrisa Wasitrakun is the Secretary of Audit Committee. Duties and Responsibilities of the Audit Committee The Audit Committee shall have the duties and responsibilities according to the Audit Committee Charter which is approved by the Board of Directors as follows:

3( ? $ $ ) $ $ ( Z( $ $ $ " *

3. Oversee the procedure to ensure compliance with related policies, rules, regulations and laws as well as resolutions of the Board of Directors. ( $ $ H # & # $ & $ working system. €( $ $ # $ # ) $ on the matter. X( ; & $ $ * $ ; ( 7. Consider and advise the Board of Directors on the appointment, relocation, dismissal, remuneration and performance evaluation of the Secretary of the Audit Committee.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

8. Seek external consultant to advise or assist the Audit Committee as agreed by the Board of Directors. 9. Perform any other duties as assigned by the Board of Directors and agreed by the Audit Committee. Executive Directors Committee The 5 members of the Executive Directors Committee are as follows: 3( H ( ! & # & / ; $ / ? 2. Mr. Pichet Suppakijjanusan Executive Director 3. Mrs. Yupa Techakraisri Executive Director 4. Mr. Kumpee Chongthurakij Executive Director 5. Mr. Opas Sripayak Executive Director and Managing Director The Executive Directors Committee was appointed by the approval of the Board of Directors and comprises 4 executive directors and 1 high ranking executive of the Company. The selection of the members of the Committee bases on the competencies of the persons and the understandings in roles and responsibilities and in nature of work and business operation of the Company. The Executive Directors Committee will be responsible for # #

$ U $ ; $ # # " of the Company. In 2010, the total of 16 meetings of the Executive Directors Committee was held, namely, 13 meetings which were previously planned and 3 meetings for special agendas. Duties and Responsibilities of Executive Directors Committee 1. To be in charge of the management and operation of the company. Z( ! " $ " # $ $ "

$ ) $ policy established by the Board of Directors. 3. To ensure that the result of the management is achieved as planned. 4. To consider the directions of the investment and business expansion. 5. To consider and manage the budget as approved by the Board of Directors. 6. To consider and approve any project investments or activities that are not in the plan approved by the Board of Directors in the amount of not more than 10,000,000 THB per time. 7. To be authorized by the Board of Directors to process legal transactions and documents as follows: 7.1) registration of the purchase and sell of land, land with buildings, buildings and condominiums 7.2 ) registration of the rent and let of land, land with buildings, buildings and condominiums 7.3) registration of the mortgage, mortgage acceptance, the increase of mortgage value, registration to redeem a mortgage, registration to release a mortgage of land, land with buildings, buildings and condominiums. 7.4) request to measure a piece of land, to issue a title deed, to divide and combine a land and to allocate land. 7.5) registration of servitude of servient and dominant properties. 7.6) registration of condominiums, registration of juristic persons of condominiums, appointment of the manager of the juristic persons, selection and appointment of the juristic persons committee of condominiums ( ƒ & # $ " & $ $ # #

7.8) meeting with condominium joint owners and juristic persons and appointment of a representative to attend the meeting and the election to be on a juristic persons committee as a joint owner as well as to attend a shareholders’ meeting of subsidiary

) $ $ $ 7.9) have the authorization to authorize other persons to act in their place including to process any legal transactions which are related to the transactions of the company as stated in article 7.1 - 7.8 8. To advise and/or provide recommendations on management to high ranking executives :( ! $ $ž # $ $ & # & # / $ $ 10. To consider any other business as assigned by the Board of Directors.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

83

Nomination and Remuneration Committee ! "  $ J € $ $ $ $ Z / $ † 3( H ( * &   $ J ‚ $ $ ; ƒ Z( H ( ! $ $ ; ( H ( ! J # $ $ ; ( H ( ‹ & ‹ $ $ ; 5. Mr. Vudhiphol Suriyabhivadh Independent Director X( H ( ! & # & / ; ( H ( & KK / ; H ( ! &  $ J ( ZY3Y) €  $ J # $( Nomination and Remuneration Committee Charter ‚ ' % J 3(3ƒ !  $ J " $ " U $ ; $ $ / $ ( 1.2) ! K  $ J " $ " $ $ ; ( " / Directors in the Nomination and Remuneration Committee, the number of such directors should be the minority of the members of the ( 3( ƒ !  $ J " $ $ ; " Nomination and Remuneration Committee. 3( !  $ J U $ ;  $ Remuneration Committee.

 Â† ! $ <U $ ; U $ ; @( ( ( ; " () @ $(

‚ ) K \KJ Z(3ƒ ! "  $ J $ Z ‚ ƒ ( !  $ J " $ # $ X  " ZYY Y * ZY3Y( Z(Zƒ * " )  $ J " † (1) Death ‚Zƒ J # ‚ ƒ U # $ ' $ $ # # " $ $ž $ / # * $ž $ $ " $ / # ‚ ƒ U # $ " U $ ; Z( ƒ * "  $ J # " # of the Committee. 2.4) In case that the position of the Nomination and Remuneration Committee member has become vacant because of any other reasons " ) U $ ; $ ( ! " " $ #  $ J ( Z(€ƒ ! "  $ J " " % $ # ( Z(Xƒ ! $ Q # $ $ "  $ J (

84

3. Duties and Responsibilities 3.1) Nomination ‚ (3(3ƒ $ # $ $ ) " $ # & # / ( ‚ (3(Zƒ  ) $ ' $ $ $ $ ) " " $ # & # / U $ ; $ ( ‚ (3( ƒ $ # $ $ $ / ? ( 3.2) Remuneration (3.2.1) $ # $ $ ) " " ) # & # / $ ( (3.2.2) $ $ # $ ) " " ) # & # / $ " " & $ U $ ; ( ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

4. Meetings 4.1) The Nomination and Remuneration Committee is to arrange or convene a meeting at least once a year. 4.2) The Nomination and Remuneration Committee meeting must be attended by more than half of all Committee members and in each meeting, the number of Independent Directors must be the majority in order to constitute a quorum. 4.3) The resolution of the Nomination and Remuneration Committee meeting will be passed by a majority of votes of the attending directors on the quorum. Any directors who have interests in the agenda must not attend the discussion or cast a vote on the matter. Risk Management Committee The Board of Directors’ Meeting Ref. 6/2010 on 16 December 2010 and Ref. 1/2011 on 17 February 2011 resolved to appoint 8 members of the Risk Management Committee to be effective from 2011 as follows: 1. Mr. Tikhamporn Plengsrisuk Chairman of Risk Management Committee 2. Mr. Pichet Supakijjanusan 3. Mrs. Yupa Techakraisri 4. Mr. Kumpee Chongthurakit 5. Mr. Opas Sripayak 6. Mr. Pramode Chaipoon 7. Mr. Charan Kesorn 8. Ms. Somsri Techakraisri Report on Meeting Attendance of Committees’ Members In 2010, the details of meeting of various committees are as follows: 1. Board of Directors The Board of Directors is to meet at least one every quarter. In 2010, the total of 8 Board of Directors was held, namely, 6 Board of Directors’ meetings and 2 visit to projects of the Company. The Board of Directors also attended the Annual General Meeting of Shareholder once. The details are as follows:

No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Name Mr. Pakorn Prof. Siri Mr. Tawechai Mr. Amornsuk Mr. Thep Mr. Weerasak Mr. Vudhiphol Mr. Tirachai Mrs. Jongjit Mr. Tikhamporn Mrs. Yupa Mr. Pichet Mr. Kumpee Mr. Opas

havisin Keiwalinsrit Chitasaranachai Noparumpa Roongtanapirom Wahawisal Suriyabhivadh Panchasarp Thapanangkun Plengsrisuk Techakraisri Supakijjanusan Chongthurakit Sripayak

Duration of Being in the Position (Year) 17 17 17 6 17 5 17 17 17 17 17 17 17 5

No. of Meeting Attended 8/8 8/8 8/8 8/8 8/8 8/8 8/8 6/8 7/8 8/8 8/8 8/8 8/8 8/8

Annual General Meeting of Shareholder (Once) 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1 1/1

Note: The duration of being of the position of director in this report is calculated from the day the Company was listed in the Stock Exchange of Thailand on 21 June 1994.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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2. Audit Committee In 2010, the total of 4 meetings of the Audit Committee which was previously planned was held with the attendance of the following members:

No. 1 2 3

Name Mr. Amornsuk Noparumpa Mr. Thep Roongtanapirom Mr. Weerasak Wahawisal

Position Chairman of Audit Committee Audit Committee Member Audit Committee Member

No. of Meeting Attended 4/4 4/4 4/4

3. Executive Directors Committee In 2010, the total of 16 meetings of the Executive Directors Committee was held, namely, 13 meetings which were previously planned and 3 meetings on special agendas. The attendance of the members is as follows: No.

86

1 2 3 4 €

Name Mr. Tikhamporn Plengsrisuk Mr. Pichet Supakijjanusan Mrs. Yupa Techakraisri Mr. Kumpee Chongthurakit H ( ? &

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Position Chief Executive Director and / ? Executive Director Executive Director Executive Director / ; $ Managing Director

No. of Meeting Attended 3€ž3X 16/16 16/16 16/16 16/16

4. Nomination and Remuneration Committee In 2010, the total of 5 meetings of the Nomination and Remuneration Committee which was previously planned was held with the attendance of the following members: No. 1 2 3 4 5 6 7

Name Mr. Amornsuk

Position

Chairman of Nomination and Remuneration Committee Mr. Tawechai Chitasaranachai Nomination and Remuneration Committee Member Mr. Thep Roongtanapirom Nomination and Remuneration Committee Member Mr. Weerasak Wahawisal Nomination and Remuneration Committee Member Mr. Vudhiphol Suriyabhivadh Nomination and Remuneration Committee Member Mr. Tikhamporn Plengsrisuk Nomination and Remuneration Committee Member Mr. Pichet Supakijjanusan Nomination and Remuneration Committee Member

No. of Meeting Attended

Noparumpa

5/5 4/5 5/5 5/5 5/5 5/5 5/5

Also, in order to be consistent with the good corporate governance, there was 1 meeting of Non-Executive Directors Committee with the attendance of the followings: No.

Name

1

Mr. Pakorn

2

Prof. Siri

3

Mr. Tawechai

4

Mr. Amornsuk

5

Mr. Thep

6

Mr. Weerasak

7 8 9

Mr. Vudhiphol Mr. Tirachai Mrs. Jongjit

Position Chairman of the Board of Directors and Independent Director Keiwalinsrit Vice Chairman of the Board of Directors and Independent Director Chitasaranachai Vice Chairman of the Board of Directors and Independent Director Noparumpa Chairman of Audit Committee Chairman of Nomination and Remuneration Committee Independent Director Roongtanapirom Audit Committee Member Nomination and Remuneration Committee Member Independent Director Wahawisal Audit Committee Member Nomination and Remuneration Committee Member Independent Director Suriyabhivadh Director and Independent Director Panchasarp Director Thapanangkun Director

No. of Meeting Attended

Thavisin

1/1 1/1 1/1

1/1

1/1

1/1 1/1 1/1 1/1

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

87

Nomination Process ºÆǏšà £of Director and Executive Director Nomination Process !  $ J " # ' $ $ $ & $ " ) / $ / ) ' $ $ & ) ) $ ) " &# $) " / $ # $ $ ( !  $ Remuneration Committee will nominate suitable candidates to the Board of Director’s meeting for approval before presenting to the Shareholders’ meeting for appointment or election. In case that the director position of the company becomes vacant not by rotation, the Nomination and Remuneration Committee $ " U $ ; Q # $ ' $ " * * ( Executive Nomination Process The executives of the company in the level of department manager and higher will be selected by the Managing Director with approval from the Board of Directors. Remuneration of Director and Subcommittee Members The Nomination and Remuneration Committee will be responsible for proposing the criteria and guideline for deciding remuneration for directors, subcommittee members and executives and presenting to the Board of Directors for consideration. The remuneration proposed will be considered from the comparison with remuneration of the same industry with more or less the same size, business expansion rate as well as the growth of the Company. The remuneration can be divided into 2 categories as follows: Cash Remuneration includes meeting allowance and rewards as follows: 1ƒ J $ ZY3Y

$ # # $ " $ $ ) ) per diem, meeting allowance and necessary expenses (Articles of Association, Section 3 on Directors, Section 18). The Annual General Meeting of Shareholders in 2010 on 8 April 2010 resolved to approve the remuneration of 6,930,000 THB and rewards for directors for the performance in 2009 which would be paid in 2010 at the rate of 10.5 times of monthly remuneration. The Board of Directors will consider to allocate the remuneration according to their discretion. The details are as follows: Remuneration in 2010 Position

No. (Persons)

Chairman of the Board of Directors Vice Chairman of the Board of Directors Chairman of Audit Committee Director and Audit Committee Member Director Director and Executive Director Executive Director and Managing Director Total

Rewards for Directors for the Performance in 2009 Paid in 2010

THB/Year/Person

Total (THB)

THB/Person

Total (THB)

1

900,000

900,000

787,500

787,500

2 1

600,000 840,000

1,200,000 840,000

525,000 735,000

1,050,000 735,000

2 3

720,000 300,000

1,440,000 900,000

630,000 262,500

1,260,000 787,500

4

300,000

1,200,000

262,500

1,050,000

1 14

3,660,000

6,480,000

3,202,500

5,670,000

Note: Managing Director is also a director of the Company as well as the Company’s employee and thus is not paid monthly remuneration or reward as a director or subcommittee member. Remuneration for Nomination and Remuneration Committee Members Position Chairman of the Committee Committee Member Total

88

No. of Director (Person) 1 6 7

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Remuneration in 2010 THB/Year/Person Total (THB) 90,000 90,000 60,000 360,000 150,000 450,000

2) The remuneration for executive directors consists of management fee and bonus. There are 4 executive directors with the total 3Y)€ Y)YYY ! U( Other Remuneration -None-

Corporate Governance ! U $ ; - # $ # " " ( ! ) U $ ; # # " ) # ) $ $ # $

# ) " # ) )

$ " " growth of the Company. It also adds economic value to the operation of the Company. The Board of Directors establishes Code of Business Conducts of the Board of Directors and employees and operates the business in

$ $ " $ # $ $ $ ( that the performance of directs and employees is in conformity with good corporate governance principles which are also published in the Q " ( ( ( ( ( $ †

Corporate Governance Policy The Board of Directors gives importance to the Principles of Good Corporate Governance by emphasizing the transparency of the $ $ # $ ) $ & $ ( ! # $ # $

# # † 1. The company is to treat all shareholders and stakeholders equally and fairly. 2. The directors of the company are to dedicate themselves to the company and to be prudent and transparent in the performance $ # " ) $ $ & $ ( ( ! " $ $ U $ U $ ; $

$ # $ for the compliance with the corporate governance. The guideline for good corporate governance of the Company is as follows:

Section 1: Rights of Shareholders The Company respects basic rights of shareholders both as investors and owners of the Company by treating all shareholders equally. Shareholders " $ ) # # Q website i.e. www.lpn.co.th both in Thai and in English or the website of the Stock Exchange of Thailand i.e. www.set.or.th. Shareholders can be

$ # $ $ $ ) / ) 3ƒ ! $ ! $ ; () @ $( # $ $ shareholders in any business related to securities registration of the Company. 2) Shareholders have the right to attend the Annual General Meeting of Shareholders which is organized once a year on appropriate $ ) $ ( ! $ # # # $ $ information explaining the details and comments of the Board of Directors in all agendas with the following details: - Information of those who are nominated for the position of director to replace directors who are to retire on rotation. % $ $ $ $ % J # $ * H # $ ( - Documents and evidences that the shareholders must present prior to attending the meeting and information on how to authorize the meeting registration and how to cast a vote in the meeting. - Map of the meeting venue. % / ‡ U( ! ‚ $ $) $ / $ - ƒ( ! $ / # H ) ) ! *) U $ ( $ # one of the forms to be used which can be downloaded from the website of the Company so that shareholders could make a $ # $ $ $ ( H ) " $ # $ $ #( $ $ # no less than 1 hour prior to the meeting to allow smooth meeting registration. ƒ ! $ " # # $ # $ # Q " ( ( ( ( ( " ! $ # Y $ # $ $ considering important agendas. ƒ ! # $ ! $ ; () @ $( # $ # letter to shareholders 21 days prior to the meeting. The Company gives the right to shareholders who attend the meeting after it has already been started to cast a vote on the agenda being considered and not yet voted. Shareholders will be counted as a quorum for the meeting starting from the agenda being considered when they enter the meeting. ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

89

5) The Company established the procedure in the Annual General Meeting of Shareholders in compliance with law with the emphasis on ) # $ ' $ ( * # # ) $

$ technology in order to ensure convenience in checking the documents of shareholders more than 1 hour prior to the meeting. 6) Before the start of the Annual General Meeting of Shareholders, the Chairman of the Board of Directors will introduce members of the Board of Directors, auditors and legal consultant of the Company who also attend the meeting to shareholders and inform the shareholders about how to cast a vote and shareholders’ rights. The Chairman of the meeting will be responsible for conducting the #

$ # # $ $ # ) # # $ $ without adding any other agendas apart from those stated in the meeting invitation letter. In addition, the Company produces ballots for shareholders to use for voting in each agenda. The votes of all agendas i.e. agree, disagree and abstain will be counted and disclosed transparently and fairly. The Board of Directors will provide opportunities for shareholders to express their comments and inquires on various issues related to business operation of the Company and subsidiary companies. The meeting minutes will be accurately and thoroughly recorded. 7) The Company has disclosed the list of top 10 shareholders of the Company as of the book closing date before the Annual General Meeting of Shareholders to shareholders through the website of the Company i.e. www.lpn.co.th both in Thai and in English. 8) On the agenda to elect directors to replace directors who retire by rotation, the Company will provide opportunities for shareholders to $ $ $ * H # $ ( ! $ $ " &# $ information of each nominated director for the consideration of shareholders. 9) In every Annual General Meeting of Shareholders, the Company gives shareholders the right to consider and approve remuneration U $ ; $ " ( ! $ $ $ U $ Directors and subcommittees for the consideration of shareholders. 10) In every Annual General Meeting of Shareholders, there will be an agenda on the appointment of auditors and remuneration for auditors which are to be proposed to shareholders for approval. The Company has provided the information about the nominated $ $ $ $ $ ( 11) The Company applies E-Voting system of Thailand Securities Depository Co., Ltd. in the registration of the meeting, counting the quorum of the meeting and counting votes for each resolution according to the agenda. 12) During the meeting, the Board of Directors provides opportunities for shareholders to express comments, provide recommendations or ask questions in each agenda freely before voting. 13) The Company will produce a detailed, completed and factual meeting minutes after the meeting ended. The minutes will be submitted to the Stock Exchange of Thailand and the Ministry of Commerce within 14 days after the meeting and be published on the website of the Company i.e. www.lpn.co.th both in Thai and in English. 14) The voting will be done openly. A ballot for each agenda will be provided so that shareholders are able to vote independently. 15) The policy of the Company is to pay the same rate of dividend to all shareholders. 16) The Company has increased the channel to publish the meeting invitation letter, meeting handouts, attendance rules and regulations of the meeting through the Company’s website i.e. www.lpn.co.th both in Thai and in English before meeting documents are sent out $ $ $ ( 17) The Company gives shareholders who attend the meeting after it has already been started the rights to cast a vote on the agenda being considered and not yet voted. Shareholders will be counted as a quorum for the meeting starting from the agenda being considered when they enter the meeting. 18) The Company has taken care of shareholders by providing information and news and informing the result of the performance and management policy on a regular and timely basis. Apart from the disclosure of information through the news system of the Stock Exchange of Thailand, the Company has also published important information and up to date news on the website of the Company i.e. www.lpn.co.th 19) From 2011, the Company will provide an opportunity for shareholders to propose an agenda in advance between October and December every year.

Section 2: Equitable Treatment of Shareholders The business operation of the Company bases on the principles of virtue, ethics and responsibilities towards the society and all stakeholders. The Board of Directors performs its duties in consideration of the highest interests for all shareholders equally and gives importance to and respects the # $ # # $ ( ! ) $ " $ that their rights will be protected and treated fairly. The Board of Directors maintains such rights of shareholders as follows: 3ƒ ! $ $ # $ basis. The information of connected transactions is also provided accurately and completely. The information necessary for decision making of shareholders will be published on the website of the Stock Exchange of Thailand i.e. www.set.or.th and that of the Company i.e. www.lpn.co.th both in Thai and in English.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

2) The Company will conduct the Annual General Meeting of Shareholders according to the agenda stated in the meeting invitation and will not add any agendas without informing the shareholders in advance. If there are to be an addition of other agendas apart from those stated in the meeting invitation letter, the Company must seek approval from no less than one third of the shareholders present at the meeting and entitled to vote. 3) The Company will send meeting invitation letter together with handout documents with complete and accurate details and comments of the Board of Directors on each agenda to shareholders for every meeting within the period prescribed by law. The meeting invitation letter and handout documents both in Thai and in English will be published in advance to allow more time for shareholders to consider the issues through the website of the Company i.e. www.lpn.co.th 4) In case that shareholders are unable to attend the meeting, the Company will send proxy form which is in line with the form of the Ministry of Commerce together with the meeting invitation letter so that any shareholders who intend to appoint a proxy to attend the meeting can authorize a person or an independent director of the Company to attend the meeting in order to reserve the right of the shareholders. 5) The voting right of shareholders is according to the amount of shares held, with one share equal to one vote. 6) The Company controls the use of internal information and prohibits directors and executives to use essential internal information of $ " $ $ $ " " " ) including the purchase and sell of securities of the Company. Directors, executives and employees who have access to internal information must refrain from purchasing or selling securities of the Company during the period of 1 month prior to the disclosure of " ( - Every time directors or executives purchase, sell, transfer or receive transfer of the securities of the Company, they must inform the Securities Exchange Commission and the Stock Exchange of Thailand within 3 days from the date of the change as well as inform the Secretary of the Company. The report of shareholding of directors including their spouse will be included in one of the ordinary agendas of the Board of Directors’ Meeting which is held quarterly. % ! " # $ $ + " ( *

$ # * $ Charter, the Audit Committee will be responsible for reviewing compliance with rules, regulations and law as required by the Stock Exchange of Thailand and the Securities Exchange Commission. If the meeting passes a resolution that may cause a

+ $ ) " ) # ) persons connected, necessary reasons for the transaction and any other details related to the transaction completely and accurately on the website of the Stock Exchange of Thailand i.e. www.set.or.th and that of the Company i.e. www.lpn.co.th both in Thai and in English.

Section 3: Roles of Stakeholders The Company gives importance to the interests of all stakeholders, operates its business responsibly and fairly to all related parties, determines to $ " " " $ " $ " $ $ $ " and the assets of the Company with prudence. The Company also looks after the rights of the stakeholders by treating them equally as follows: Shareholders: The Company respects basic rights of shareholders under the law and the Articles of Association of the Company by treating all shareholders equally. The Company establishes a mechanism to assure the shareholders that they will receive accurate information and appropriate returns according to the dividend payment policy of the Company. Connected transactions are controlled and measures to prevent

+ ( ! $ $ " $ / have access to such information to exploit the Company’s internal information for personal interests, including the buying and selling of the $ # $ 3 $ " ( Customers: ! - # $ " $ ( ! " # # $ $ " # $ $ ) " # " for the ' $ $ $ $ $ $ $) $ # $ # ) # $ customers and establishing a Department to be responsible for receiving complaints i.e. Customer Relations Department: Call Center (02) 689-6888. The Company also gives importance to the creation of a good quality of life, the promotion of close family ties and relationship building with customers through various regular activities. Trade Partners: The Company complies with the agreements and conditions of honest competition, equality and fairness, considers the highest interests of the Company on the foundation of fair compensation for both parties, strictly keeps its promises to trade partners and builds relation $ $ $ # $ ( ! $ + # # " $ & # $ " $ $ # (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

91

Competitors : The Company abides by rule of honest and fair competition through the use of friendly competition to support each other without causing any damages to the business or relationship between each other. Throughout the years, the Company has never had any disputes with competitors. Creditors † ! $ $ # $ $ $ $ ( $ ) $ $ # $ # " $ $ " # $ $ $ # (

The Company adheres to the following rules in dealing with creditors: 1. Comply with the agreements with all trade partners and creditors fairly and equally on the foundation of fair compensation for both parties. Z( J & # ) #

# $ " ( 3. In case of loans, the Company will not exploit the loan money in the way which goes against the objectives in the agreements/conditions of the borrowing.

Employees : The Company gives importance to all employees and realizes that employees are valuable assets and contribute to the success and achievement of the Company. The Company takes care of its employees and treats them fairly in terms of opportunity, reward, appointment and transfer, all of which are appropriate with the performance of each employee and business success of the Company. In addition, the Company focuses on capacity development of employees of all level, equips them with knowledge and ability to perform their duty and develops employee with high competencies towards leadership. The Company also provides opportunities for employees to take part in the establishment of the direction of operation, promotes good culture and atmosphere at work, improves surroundings for the safety of life, health and properties of employees and provides various welfares e.g. health insurance, annual medical check-up, provident fund and aid money in time of death of parents or spouse of employees. The Company also arranges an exercise area for employees, concerns for work-life balance and # & $ $ ' $ # - $ ( Society and Environment : It is realized that the Company is part of the society. The Company commits to help and not take advantage of the $ " $ † Society : The Company realizes that its stable and sustainable business growth depend on the society and environment and thus aims to return the favor to the society by setting aside a budget to support social and charitable activities on a regular basis. In 2010, the Company initiated various social activities as follows: 1. Blood donation activity: The Company collaborated with the Thai Red Cross to provide a venue and convenience for blood donation activity in order to donate blood to those in need. 2. Community restoration activity: The Company helped improve the scenery along Rama 4 road which was damaged by the political unrest in May 2010. 3. Donation for Victims of Haiti Earthquake in collaboration with the Thai Red Cross. 4. “Starving for Children of OmGoy� activity in collaboration with World Visions Thailand. €( <‡ #  — = " ‡ $ $ ( X( <@  ! ‡ † ‹ ## = ) <@  ! ‡ = ) <@  ?!? Products to Help Women’s Craft Group in Chiang Mai� activity and “Care and Share� activity: The Company used OTOP products and agricultural products as gifts for customers in all its project opening events in 2010. Such activities will also be continued in the years to come. ( <; U $ U  “ = " U $ ; ) ! J $ $ " ? ) U #& & South District Court. Environment : The Company gives importance to environmental management within all projects and their surrounding areas by focusing on the aspects that will have impacts on joint owners and the society through the Green Clean Lean principles. Environmental activities include treating waste water to meet the standard set by the government and reusing the water to water plants in the projects, segregating waste for easier disposal and recycling, conserving energy, maintaining green space or planting trees inside and outside condominiums to increase green area in communities and Bangkok. All of the activities are done to upgrade the quality of life of urban residents. To emphasize the importance of environmental management, the Company establishes a Department to be directly responsible for promoting and raising environmental awareness as well as organizing activities to restore the environment affected by the development of projects both during construction or after completion such as:

92

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

- GREEN Compensate or create green space and improve the surroundings of the projects or areas within the projects which are already handed over to customers. - CLEAN: Manage waste originated in projects of the Company through appropriate and hygienic method to entail good environment and hygiene in living. The Company realizes the importance of the waste problem and organizes “Waste Segregation and Reductionâ€? activity and “Campaign to Segregate Hazardous Wasteâ€? activity to raise awareness of environmental impacts of waste among the residents of the communities. The Company gives importance to the participation of stakeholders in supporting the operation of the Company in order to build stability and " " $ # " & $ $ ( ! & $ ) $ $ " ) $ $ $$ " mailing to: 1. Chairman of the Board of Directors or 2. Chairman of Audit Committee or 3. Chief Executive Director or 4. Managing Director The mailing address is as follows: @( ( ( ; " () @ $( 33X ž3Y:) X ‡ ) @ ! ) J ) ! # &) ) U #& & 3Y3ZY & $ $ $$ ? ; † ;?Ăˆ ( ( The above persons will collect the information to present to directors of the Company for their consideration. The Company will protect those who " $ " & # $ ( Section 4: Disclosure and Transparency ! - ) ) ) # $ $ $ # $ " $ (  $ $ $ $ ) ) analysts and stakeholders through various channels e.g. - The Electronic Listed Company Information Disclosure (ELCID) system of the Stock Exchange of Thailand. % ; * ‡ ‚‡ €X%3ƒ % * J ‚‡ €X%Zƒ - The Company’s website i.e. www.lpn.co.th ! " J ; $ $ ) $ ) analysts and related persons. H $ ) # $ $ & "

Investor Relations Department of the Company directly. The Company believes that minor shareholders and general investors nowadays give very much importance to investment information. The staff of the Company will disclose all information equally. The Company emphasizes and is " # " ( ! U $ ;

$

$ # to the generally accepted accounting standards and principles. Important information which affects or may affect the changes in the price of the securities of the Company and the decision to invest will be disclosed strictly complying with law and rules and regulations of the Stock Exchange ! $) / # $ # # ( ! # $ # $ $ " $ " ( ZY3Y) # - $ # ' )

" $ & / # ! $ $ # ? ; ( $$ ) # & # / # $ $ $ $ # # and answering questions. There were around 96 analyst reports on the information of the Company. $ ) $ # " & ' " #† Investor Relations Department: Mr. Suriya Suriyabhivadh % $$ † JĂˆ ( ( ! † ‚YZƒ Z €%€Y33

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

93

Section 5: Responsibilities of the Board of Directors 1. Structure of the Board of Directors U $ ; / $ $ & $# " $ $ (#( # #) ) ) " # ) )

# $ $ $ ; *

$ # ! ; * ‚ ?;ƒ( ! U $ ; # $ # # # & # / ) # " #% $ % & ) & # ) # # & $ # #) # $ $ $ # $ # & # / $ ( ! # † 3( U $ ; Z( * $ ( / ; (  $ J ! " $ $ $ ( ! $ " $ " " " " # $ U $ ; $ & $# " $ $ $ ( ! U $ ; " $ $

H # $ $ " ( ! / ; " " # " $ $ " U $ ; ) # H # $ # # # $ # $ ( ) K \KJ K ^ * H #) % $ $ ( " $ $ " ) " # $ " % $ ( ; " $) $ $ $ " $ Q # $ $ $ * * ( ; " % $ / / $ " " )  $ J " # " $ $ $ U $ ; Q H # $ " $ ' $ " * * ( ! $ # $ $ž # " $ $ " " # $ " & $# $ / $ " #

" ( Number of Companies in which Directors Serve as Directors ! " $ $ € $ ( * ) € $ $ 3 $ $ 3 $ $ $ ( ! $ $ " " $ $ ‡ €X%3 $ * J ( ! $ +

$ ( ? ) U $ ; " $ $ $ ( ! $ # $ # $ ) $ $ $ " Subcommittee ! U $ ; $ $ " ( ( / ; ) * $ ) Â $ J $ J & H # " " $ U $ ; $ $ & $# ( ! " $ $ " $( 2. Roles, Duties and Responsibilities of the Board of Directors Leadership and Vision ! U $ ; " ) $ $ "K $ # # $ $$ $ $ ( ! U $ ; $ & $ ) / $ & $ $ $ ) $ &

94

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

" $ $ + $ $

! U $ ; # + ) $ # $ $ $

$ # & $ " $ " ( ! U $ ; $ $ $ " $ " $ $ $ ( % J ^ K @ K ^ ! $ U $ ; H # ( ! $ " $ " U $ ; $ " " $ $ $ ( ' % K X ! U $ ; " $ $ ; $ Â % / ; $ " # / ? " # " " ( ! U $ ; $ $ H # $ # & # $ $ # $ % %$ " ( ! U $ ; U $ ; Q H # " $ # ) & $ # H # ( * $ $ $ # $ #) #

$ $ + $ # $ ( ! / ? $ H # $ " U $ ; # $ $ " ) $ U $ ; ) # H # ) # # # $ # $ $ $ " # H # # $ # $ ) " $ " $# ( @ K ^ „ # ? $ $ $ # $ $ & $# # $ K & $ " ( ! $ $ $ $ U $ ; Q H # $ " X ( H # # $ " # - $ ( ! # $ # " $ # $ " $ $ $ $ # $

$ # # " $ # #( !  % / ; Q H # " # $ $ % / $ $ $ # H # ( ! U $ ; $ / ? K $ $ # $ $ # $ $ # $ # $ / #( ! # " $ " K ( $ ( ! $ $ # $ž # ( ! $ # $ %€ ( & K % & ! U $ ; - $ " "

$ $ $ $ # & / # ! $ $ / # ( ! U $ ; $ H ! & ) ; H # ; & $ " " $ # " U $ ; $ H # ) " # # $ $ # & # $ # $ ) # # $ & / # ! $ $ / # $ # U $ ; Q # $ $ Q #(

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

95

KÂ…!" K ^ !" K K ![ " \KJ The Chairman of the Board of Directors gives importance to the evaluation of the performance of the Board of Directors and the Chief / ? U $ ; ( ! U $ ; # $ Â $ J (

! Â $ J # $ % ; " $ $ $

# † Category 1: Evaluation of individual Director (self-evaluation) The area of evaluation covers core competencies, independence, preparedness, roles $ " ; ) U $ ; $ " $ # - ( Category 2: Evaluation of Individual Director (evaluation by other directors) The area of evaluation covers core competencies, independence, $ ) $ " ; ) U $ ; $ " $ # - ( Category 3: Evaluation of the Board of Directors ! $ ' U $ ; ) $ " U $ ; ) U $ ; Q H #) ; Q ) H # ) self-development of directors and the development of the executives ! " $ ; " ( !  $ J " " $ # ; $ $ $ $ ) - $ - $ U $ ; Q H # # ( ! U $ ; ZY3Y " $ U $ ; Q H # J ( 3žZY33 3 ‡ " ZY33(

! $ $ $ ‚ % ƒ †

 (

3 Z € X

! $ $ $ J $ J " ; U $ ; " ; ? # - Overall

J ‚[ƒ Z(Y€ Y(Z: Z(X: :3( X :3(X (X 86.02

! $ $ $ ‚ " $ ƒ †  (

96

3 Z € X

! $ $ $ J $ J " ; U $ ; " ; ? # - Overall

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

J ‚[ƒ :( Z( :(Z: :3(:Z :3( :(ZY 89.07

The overall result of the evaluation of the Board of Directors is as follows: No.

3 2 3 4 5 6

Topic $ ˜ U $ ; Roles and Responsibilities of the Board of Directors Board of Directors’ Meeting Directors’ Performance Relationship with the Management Self-Development of Directors and the Development of the Executives Overall

Result (%) :X( 3 96.72 98.08 98.53 98.97 96.15 97.48

H ) Â $ J & $ U $ ; / ? # ) $ ) ) # ) ) # ) $ relationship with the Board of Directors. The overall result of the evaluation of the Chief Executive Director No. 1 2 3 4 5 6 7 8

Topic Strategy Leadership Financial Performance Transaction Management Replacement Plan Human Resources Management Communication Relationship with the Board of Directors Overall

Result (%) 93.94 90.91 90.91 96.97 72.73 84.85 87.88 90.91 88.64

Directors and Executives Development ! U $ ; $ / # " $ $ participate in the courses of the Thai Institute of Directors Association (IOD) according to the requirement of the Securities Exchange Commission $ $ $ ) ; *

$ # ‚;* ƒ $ ; Program (DCP). Apart from this, the Board of Directors is also aware of the importance of the participation in other courses of the IOD such as the Role of Compensation Committee (RCC) and the Company Secretary course of the Thai Listed Company Association in order to enhance professional leadership skills and true understanding of roles and responsibilities of directors and set an example for others in pushing the organization forward towards good corporate governance. The details are as follows:

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

97

(

3( Z( 3. ( ( X( ( ( :( 3Y(

98

H ( & ! ( H ( ! H ( * & H ( ! J # H ( & H ( > $ " $ H ( ! H ( #K ! #& H ( ! & # &

* $ $ % ; # ; Y¾ZYYY ! ; % * $ J # J 3X¾ZYY ! ; % ! # ; @ $ $ *$ ) " $# ) # $ % ; *

$ # ;* Z ¾ZYY ! ; % % ; 3 ¾ZYY ! ; % * $ # * ¾ZYY ! ; % ; *

$ # ;* ZX¾ZYY ! ; % ; # ; Y¾ZYY ! ; % * $ # * Z ¾ZYY ! ; % J J :¾ZYY: ! ; % # ) 3 % *$ $ H # ) % ; ; # ! $ :: % ; # ; ZY¾ZYYZ ! ; % * $ # * ¾ZYY ! ; % H & * $ H* ¾ZYY % $ ; ; ¾ZYY ! ; % J J :¾ZYY: ! ; % ; *

$ # ;* X ¾ZYY ! ; % ; # ; :3¾ZYY ! ; % ; # ; X¾ZYY ! ; % * $ # * ¾ZYY ! ; % ; *

$ # ;* ZX¾ZYY ! ; % % ; ; 3 ¾ZYY ! ; % ; *

$ # ;* ¾ZYY ! ; % % ; ;3 ¾ZYY ! ; % ; # ; Z ¾ZYYZ ! ; % % ; ; ¾ZYY ! ;

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

 (

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* $ $

33( 3Z( 3 ( 3 (

H ( & KK H ( “ ! & H ( Š # & H ( ? &

% ; # ‚; ZZžZYYZƒ ! ; % ; # ‚; Z žZYY ƒ ! ; % ‡  %‡ ; ‚‡ ; žZYY ƒ ! ; % * $ # ‚* Z3žZYY ƒ ! ; % ; # ‚; ZžZYY ƒ ! ; % ; *

$ # ‚;* žZYY ƒ ! ; % ; # ‚; žZYY ƒ ! ; % ; # ‚; 3žZYYXƒ ! ; % ‡  %‡ ; ‚‡ ; Z žZYY€ƒ ! ;

Orientation of New Directors $ ) $ $ # $ " " $ $ immediately. The Secretary of the company will be responsible for: 3( $ # # * * ) "K company, the organization structure and the Code of Business Conduct and 2. arranging a meeting with the Chairman of the Board of Directors, Board of Directors, subcommittees and the company’s executives to be informed of the operations of the company.

Use of Internal Information The company has established the regulations on the extent of the disclosure of internal information to external parties in the Code of Business Conduct both for executive directors and staff. As for that of staff, the company has incorporated it in the employee’s handbook which is given to all

K ( $ " $

# ) # $ Human Resources Management Department to attend to the use of information of staff. As for the Acquisition Report of the directors to the Securities and Exchange Commission in accordance with the Section 59 of the Securities and / # * U( ( Z€ €) # $ " " # ' # J ; $ ; ? ; $ " & $ / # ( * # and the summary of the number of shares of individual director will be recorded and presented to the Board of Directors in all meetings. The company also plans the information system of the company by prioritizing the importance and authority of those who are able to make changes ( ! ; " # " # $

$ & $ " * $ ; $ ( Code of Business Conduct The company has produced the Code of Business Conduct of the Board of Directors and staff to be the guideline for compliance with the Principles $ " ) $ ) $ )

$ & $ (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

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Human Resources " $ $ $ $ # $ $ # $ & $ $ $ " $ $ # ) # $ & $ ' ) & $# $ " ) # $ < $ = <? # - > = † 1. Management ! # $ # " ‡ @ $ # ) K # ) " $ # $ & # $ U & ? $

#ž ) # ) $ # $ $ " U $ ; ( ! / ; $ / ? " # # $ $ $ J ; "

$ # " ; # ( 2. Promotion of the Core Value of the Organization ! $ $ $ Z3 $ " $ < @* = $ # $ $

$ $ #

K # - ( “CLASSIC� Core Value Collaboration Lateral Thinking Alliance Speed S H $ $ I # C * < @* = $ # # - ( ! - $ " # $ / # # / $ $ $ # < @* =

$ / ( # & # / $ $ $

# - †

% % -

Roles and Responsibilities Provide guidance and recommendations to CLASSIC Agent U $ $ @* #

& #) $ / @* *# Create inspiration to CLASSIC Agent in becoming CLASSIC Ambassador

% % %

# $ $ $ $ $ @* Be a role model & #) $ / @* H " # @* H " @* '

% % % %

# $ $ $ $ $ @* * $ $ $ $ @* $" & @* " * @*

CLASSIC

100

High ranking /

Ambassador

H $$ H #

Agent

All

Member

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

The Company realizes that in order to create true understanding of CLASSIC among staff, concrete activities are needed to be organized. In 2010, the Company organized various activities to emphasize CLASSIC which was cascaded from high ranking executives to all staff. Those who had shown their CLASSIC DNA were also been praised. The activities are as follows: CLASSIC Ambassador: High Ranking Executives Executive Sharing Activity: CLASSIC Ambassadors will share best practices derived from valuable professional and personal experiences which are in line with the core value for CLASSIC Agents to follow and cascade to CLASSIC Members for the distribution of knowledge across the whole organization. CLASSIC Agent: Middle Manager CLASSIC@Operation Meeting: CLASSIC Agents will share various success stories and lessons learnt with each other and jointly create innovations to improve and develop major activities of the organization and create learning. Situations in real operational process will be connected to CLASSIC behavior for the participants to exchange their opinions. For example, a sale activity which roles and responsibilities of executives and $ $ $ + @* ; * $ " / " $ ) mindedness of staff, speedy delivery of services for highest satisfaction of customers and integrity of staff who are aware of their roles and responsibilities and perform their duties to achieve the goal. CLASSIC Member: All Staff Happiness from Being CLASSIC Activity: CLASSIC Agents and CLASSIC Members share stories about their happiness which is a result of their CLASSIC behaviors in a postcard which will be sent to the executives. Admiration for Staff with Outstanding CLASSIC DNA Behavior › Service Mindedness: ! $

$ from customers who were very impressed by their excellent services. › Integrity: ! $

# $ $ $ (#( $ ( 3. Succession Plan In 2010, the Company prepared a successor development plan in order to develop knowledge and capacity of successors to carry on the vision of the organization and support their professional advancement. The 3 main areas of the executive courses are as follows: › Task management: Project Management Course To enhance knowledge and management competencies, to learn about management techniques and methods to achieve targets and work development and improvement. › People Management: DISC Course for Team Management and Executive Sharing To enhance leadership, knowledge and capacity in managing a team in order to understand behaviors, personalities, characteristics and inspirations of team members and to motive them. › Thinking Skill: Situation Management Course To enhance knowledge, systematic thinking skills and creative strategic planning skills and to develop problem-solving and decision-making skills. The executives have also assigned a special project to the successors in order to build up their competencies and provide opportunities for them to initiate new innovations and present them to high ranking executives for recommendations. 4. Staff Well-being ! # - #

# $ $ $ " # # - and thus seeks ways to support them to be able to work to their full capacity for the success of the operation in various aspects as follows: - Work-Life Balance, Hygiene and Working Environment The company values staff’s work-life balance and supports their well-beings by providing medical insurance, welfares, life and accident " $ # " $ $ $ $ & ( * ‹ " $ $ " are elected by staff to provide recommendations and comments on welfare management of staff as well as to promote the valuing of staff. The $ '

$ $ # & # accordance with hygienic and safety standards required by law. As for the safety aspect, the company consistently raises awareness on work

) $ ' ) / # $ # # $ # - $ $ " $ (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

101

- Ethics and Virtues The company does not only promotes work achievements but also ethics and virtues of staff and always provide opportunities for them to volunteer and participate in various good will activities to raise their awareness on social responsibilities and for them to cascade to others. In 2010, the Company promoted knowledge on creative disciplinary measures to supervisors and arranged a disciplinary measures test to showcase real case studies within the organization and its impacts through various media internally in order to be an example for staff to follow.

- Communication The heart of the operation of business which is customer-centered is staff that is the main drive to achieve the goal of the organization. It is # - #

& ) " $ $ ( ! $ effective communication system between organization and executives to staff through LPN News, an internal newsletter, to communicate expectations and any other information and help reduce communication gaps between them and regular executives-meet-staff activities to build relationship between staff and the organization to be like members in the same family who love, understand and care for each other. Such good relationship within the organization will encourage staff to care for customers in the same manner. - Relationship with the Organization Supervisors of each level are to play an important role in listening to staff’s opinions towards their work, the organization, the working environment, colleagues and management systems. Annually, the Human Resources Department will conduct a survey on the relationship between staff and the organization, satisfaction on remuneration, working condition, values, colleagues, supervisors and learning and growing opportunities and report to the highest executives and propose a work plan to enable staff to work happily, have good quality of life and have good relationship with the organization.

5. Development and Training The Company prepares human resources development plan in order to increase functional competencies and managerial competencies of staff which will support the vision, mission and strategy of the organization to achieve the objectives. The Company designs a learning process to # $ $ " " # - # # $ # / adapting the knowledge from training to be used in real life. The evaluation of the result of the training and development will be done through an interview with supervisors, colleagues or team members and an assessment in the form of a mystery shopper. The participants of the trainings will also be assigned a special project to provide an opportunity for them to propose new working styles to the executives. In 2010, the trainings and developments organized by the Company are as follows: Capacity Development Plan: Community Management Department The development plan is with an aim to enhance condominium management knowledge and skills as well as project and team management skills which will enable staff to manage condominiums to be “Vibrant Community.� The training courses are as follows: › H # ! # †

" # " equipped with knowledge on condominium laws, community management and FBLES strategy and project and team management. This 170-hour course is internally developed. The majority of trainers are also internal. › H # $ $ › * H # › ! H # › # $ ‹ & › H # › / #† ! $ ) / $ $ / & thinking, knowledge and experiences with staff. Capacity Development Plan: Sales and Property Management Department › › ! # › U #† / K #( › H † " $ $% " ( › J # * $

102

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Capacity Development Plan: Project Management Department › Š $# $ / #† & $# $ / K # ( ! " " / $ & ( Executive Development Plan › K H # › H # › / # › # * ! #†

/ # $ & $# # $ " & $# ( Courses Opened to Staff of All Level › @  ? › › # * ! # › # (#( H $ *$ ) / *$ ) *$ ) Ê%H $ Ÿ %U &( › $ @ # ‡ † &% " " # / & (#(

‹ & Œ ) ! ! ) ! !

) ! &

$) ( 6. Number of Employees ! # $ $ - $ $ $ $ $ $ / ? $ / ; (

" ' $ ( ZY3Y) $ " # ( ! " ) ) @( (Â ( ; " () @ $) @ H # () @ $() @ K H # () @ $( $ () @ $( $ " $ Y3 XY $ " $ $ $ $

& † % U ; % U $ H # $ H & # Z % *

# $ ‡ : % H # € % H # ZZX % K H # X % *$ : % * $ ; X % J ; 3€ % H # :3 % *

# $ ‡ ’ Y % ’ H 3X3 % H # 3Z TOTAL

860

! $ "

$ # $ $ " $ $ $ # †

3( J ‚ ) $) " ƒ Z( ‹ $ $ ( ! # $ ; TOTAL

:€) YX)Z X €Z) :)X3 )YYY)YYY

! U ! U ! U

456,655,893

THB

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

103

Code of Business Conducts for Board of Directors

Code of Business Conducts for Board of Directors L.P.N. Development Public Co., Ltd. The aim of this Code of Business Conducts is to be a guideline for the Board of Directors to hold on to in order to be in accordance with the Principles of Good Corporate Governance and to show the determination of the directors to follow the ethical standards for the " ) $ )

$ & $ ( ! U $ ; & organization who develop the corporate governance principles in $ " " $ $ "K $ ( * @( (Â ( ; " () @ $( & " " # $ $ # $ ) $ # " ) $ the code of law with prudence and carefulness as well as show themselves as a good example for staff in order to maintain the $ # $ # ( The Code of Business Conducts is as follows: 1. Honesty, Fairness and Virtue ; $ ) $ $ $ $ " $ ) # ) # $ ) $ " (

; $ $ $ $ # $ $ ) & $ $ $ # " & # & # (

2. Independence ; & $ $ $ $ $ " - # ) rewards and cash or non-cash remuneration over the $ $ & $ " ( ‚ X ) J & Personal transactions and other businesses of directors must be separated from the performance as a director of ( ; " )

must not involve in the business that will damage the $ $ $ $ )

$

$ / $ # $ " ( ; $ $ (

‚ ^ K @ J ; $ " " " $ # # + $ $ + (

* $ " $ $ + " $ $ " # $(

5.

Compliance with Law ; ) $ # $ " $ & $ # ) $ # K " " (

6. Equal Opportunities to Shareholders ; $ Q " " # $ $ $ " & $ ( Roles and Responsibilities of the Board of Directors 1. Duty to the Company 3(3 ; $ $ $ $

$ Good Corporate Governance and the Code of Business $ ( 3(Z $ $ $ # 3( U " $ $ $ " & $ " $ # $ $ $ " $ " ( 3( J # & # / $ " $ $ " ( 3(€ H # $ " (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

105

1.6 Inform the Company in a written format when he/she that the disagreement be recorded in the Board of Directors’ meeting. becomes a director of other companies, organizations or 6. Encourage communication between the Board of Directors and ( + $ " *

‚ *ƒ $ interests of the Company and the performance of the duty or * $ $ $ $ " # $ " + ensure the cooperation from the Management and Internal Audit of interests with the business of the Company. Department. ( $ $

$ $ ) 2. Duty to Shareholders rules and regulations as well as business standards and ethics. Z(3 $ # 8. When in doubt, the Board of Directors could ask for more Company are accurate and appropriate to entail suitable information or explanations from the Management or adviser of the rewards to the shareholders. Company. 2.2 Ensure that the Company has disclosed important 9. Directors, including family members, must not take any action information to all shareholders equally in the complete, which may cause doubts about their honesty and fairness by accurate, factual, timely and transparent manner. ' #

# ) # " 2.3 Ensure that the Company equally gives importance to and partners of the business of the Company such as constructers respect the rights of all shareholders. and businessmen except in the occasion of a traditional festival 2.4 Ensure that the Company explains the details of the perfor but the gifts must not be unreasonably or uncommonly $

$ expensive. the disclosure of information principles. 2.5 Ensure that the Company gives importance to the recom9ÂŒ=Â?^‰> Œž Â&#x;=><?<]>] mendations from shareholders and apply the good ones for 1. Must not exploit the power of the director position to seek " ( " " $ indirectly. 3. Duty to Staff 2. Inform the Company without delay in case of the followings: 3.1 Treat all staff fairly and do not discriminate anyone because of 2.1 Acceptance of the position of director or adviser of other the difference in race, religion, nationality, gender, age, Companies. education background or personal affection. 2.2 Directors and family members are involved with or are 3.2 Listen to opinions or recommendations of staff and consider $ " + # " ( interests with the Company. 3.3 Do not violate rights or individual liberty of staff directly or 2.3 Have interests directly or indirectly in any contracts made indirectly. with the Company. Directors must identify the nature of the contract, name of the parties and interests in the contract. 4. Duty to Other Stakeholders 2.4 Hold assets or debentures of the Company or subsidiary 4.1 Ensure that the Company complies with related laws and company. Directors must identify the assets as well as any regulations. changes. 4.2 Ensure that the Company gives importance to any impacts to ( * $ + ( + ) other stakeholders, community, society and environment. director must consider not to participate in the discussion or refrain from casting a vote in such agenda or be absent from the Discretion in the Performance meeting in the agenda or refuse to accept the related meeting 1. Attend all Board of Directors meetings and inform the Company in $ # $ + advance if unable to attend. # ( 2. Research about the environment which may impact the business of ( / ; " " + the Company. which may occur during the performance in the Management 3. Study any related laws, rules or regulations which involve with the and the performance as a director who is trusted by shareholders. performance as a director of the Company. 5. Directors should not be involved with the purchase/sell of the ( $ $ shares of the Company for short-term investments. advance. 5. Consider and give independent opinions. In case that any directors disagree with the meeting resolution, such directors could request

106

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Use of the Information of the Company 1. Must not use the information received as a denceirector of the Company unjustly. 2. Must not disclose information such as the information on " $

" / ( ( H $ $ #

$ $ public. ( H $ ) " & $ $ $ $ # ( €( H " " of others especially if such information is important to the # $ $ to the public. X( H $ $ the public and may affect the Company’s share price. Such information includes: X(3 X(Z  6.3 Loan X( " # " X(€ # X(X  K 6.7 Liquidity problems

! # $ J ; "

"

$ $ U $ # " supervisors of each Department to ensure that the Code of U $ $( The Code of Business Conduct for Staff $ $ $ 3Y "K / $( #

# $ †

1. Scope of the Code of Business Conduct Z( @ $ J # 3. Credibility of Information ( $ 5. Communication X( $ ! $ # ( ( " #) ; & # $ ; # :( # $ J # $ # - # 3Y( ? Â’ " / *

$$ ) " $ $ " $ )

) $ ) ) # ) $ $ Âż $ # + $ ) # $ & # (

Code of Business Conduct for Staff L.P.N. Development Public Co., Ltd. @( (Â ( ; " () @ $( $ " $ & $ $ ) ) " )

" $ $ ( *

# $ $ $ # $ ( ! #

- " " $ " ) $ $ # " $

" ) " ) " ( ! " $ $ U $

$ " # $ their performance. ! $ U $

" $ $ staff as a preliminary standard for ethical behavior. It is one of the mechanisms to remind the staff to be cautious and prevent them

$ # # # $ " harmful to the Company’s reputation. ! # $ J ; ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

107

Internal Control

! U $ ; " $ $ & which may cause damages to properties of the Company as follows: Organization and Environment

! U $ ; $ " " # " $ # ( * " " $ $ # $ # ( Š $ ‚Š ƒ - $ $ ( ! $ " U $ ; ) / ; ) / $

$ $ ( The Company determines the direction of the operation following the balanced scorecard system which is consistent with the ( $ U $ " U $ ; $ $ > # - $ " # $ U $ ; ) / $ $ # $ ( ‹ $ " " # $) $ " & $ #% " ( Risk Assessment

! # & " # - # $ # " $ / &

( & J & H # ) / ; "

$ # $ # # & & $ # & " # # ( ! / ; $ H # # - K # % $ # ( #) U $ ; - & # $ $ U $ ; H # J ( XžZY3Y 3X ; " ZY3Y $ J ( 3žZY33 3 ‡ " ZY33 J & H # ZY33( ! $ $ # # $ " & $ $

& # / ; $( ! " $ # " ( Management Control

J $ " U $ ; ) / ; $ # & # / " $( ; ) $ " / $ $ $ $ $ H # $ $ ( ! / ; # #) # $ # $ * $ " # $ & $ # $ # U $ ; ' ( ! " $ $ $ " $ ( ! $ " " $ / $ # $ $ U $ ; ' (

108

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Information and Communication

# ' " $ U $ ; $ & #( ! U $ ; # $ $ #

$ # ( " $ " $ $ # U $ ; Q H # $ ( ! $ $ $ # # - ( ! " $ $ " ! # ; " - # $ # # " )

$ $ $ $ % $ ( #

) " & $ $ $ $ # - (#( )

# $ ) # ) $ $ # $ $( ! " $ " $ & ( ! ! # " $ $ $ $

( ! $ "

) " $ " H # & $ " ( $ ) $ $ " ( ( $ % # ( !

" & $ ( Monitioring System

! U $ ; # $ / ; $ H # # & # $ '

$ # $ " ) $ " $ $ " U $ ; ( ! # $ # $ $ * $ (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

109

Connected Transactions

Connected Transactions between the Company and subsidiary companies, subsidiary companies and subsidiary companies and subsidiary companies and associated company In 2010, the list of connected transations of the Company with subsidiary companies and associated company on sale or employment agreements under the same conditions and market prices at the time as with third parties as of 31 December 2010 are as follows: Connected transactions between the Company and Lumpini Property Management Co., Ltd. Description

Contract Amount

1. Fee for management of sale - Fee for management of sale (14 projects) 0.50 % of the project value - Fee for the total sale (16 projects) 1.50 % of the project value 2. Fee for brand promotion and maintenance (12 projects) 0.30 % of the project value 3. Fee for broker (1 project) 1 Month rental fee / 1 year contract 4. Fee for management of parking lots and parking fee collection 4.1 Fee for management of the parking lots of Lumpini Tower (80%) and the parking lot of L.P.N. Tower (20%) 72,000.00 THB / Month 4.2 Fee for parking fee collection (2 projects) 3% of revenue 5. Fee for community management (11 projects) namely, 5.1 Lumpini Place Ramindra-Laksi (January 2010-February 2010) 200,000.00 THB / Month 5.2 Lumpini Suite Rama 8 (January 2010-February 2010) 80,000.00 THB / Month 5.3 Lumpini Place Rama 8 (January 2010-February 2010) 300,000.00 THB / Month 5.4 Lumpini Place Rama 9-Ratchada Phase 1 (April 2010-June 2010) 320,000.00 THB / Month 5.5 Lumpini Ville Bangkhae (15 April 2010-30 June 2010) 100,000.00 THB / Month 5.6 Lumpini CondoTown Ramindra-Nawamin Building A,B (15 July 2010-30 November 2010) 180,000.00 THB / Month 5.7 Lumpini Ville Ratburana-Riverview (1 September 2010-31 December 2010) 250,000.00 THB / Month 5.8 Lumpini CondotTown Bangkhae (1 October 2010-31 December 2010) 180,000.00 THB / Month 5.9 Lumpini CondoTown Ramindra-Nawamin Building C (1 October 2010-31 December 2010) 135,000.00 THB / Month 5.10 Lumpini Ville Latphrao-Chokechai 4 (1 November 2010-31 December 2010) 260,000.00 THB / Month 5.11 Lumpini Park Pinklao (Suan Ruam Jai only) (January 2010-December 2010) 50,000.00 THB / Month 6. Fee for condominium registration service and system integration 6.1 Condominium registration service 6.1.1 Lumpini Place Rama 9-Ratchada Phase 1 150,000.00 THB 6.1.2 Lumpini Ville Bangkhae 46,728.97 THB 6.1.3 Lumpini Ville Ratburana-Riverview 150,000.00 THB 6.1.4 Lumpini CondoTown Ramindra-Nawamin Building A,B 150,000.00 THB 6.1.5 Lumpini CondotTown Bangkhae 150,000.00 THB 6.1.6 Lumpini CondoTown Ramindra-Nawamin Building C 150,000.00 THB 6.1.7 Lumpini Ville Latphrao-Chokechai 4 150,000.00 THB

110

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

7.

(

9. 10.

11. 12. 13.

Description Contract Amount 6.2 Community management system integration service 6.2.1 Lumpini Place Rama 9-Ratchada 200,000.00 THB 6.2.2 Lumpini Ville Bangkhae 93,457.94 THB 6.2.3 Lumpini Ville Ratburana-Riverview 200,000.00 THB 6.2.4 Lumpini CondoTown Ramindra-Nawamin 200,000.00 THB 6.2.5 Lumpini CondoTown Bangkhae 200,000.00 THB 6.2.6 Lumpini CondoTown Ramindra-Nawamin Building C 200,000.00 THB 6.2.7 Lumpini Ville Latphrao-Chokechai 4 200,000.00 THB Fee for cleaning service (7 projects) 7.1 Meeting room, 11th Floor, Lumpini Tower 12,500.00 THB / Month th (Z ? ) X Floor, Lumpini Tower 42,000.00 THB / Month 7.3 Parking lot, Lumpini Tower 20,000.00 THB / Month 7.4 Parking lot, L.P.N. Tower 10,000.00 THB / Month 7.5 Lumpini Residence Sathorn 55,000.00 THB / Month 7.6 Lumpini Plaza Asoke * 85,050.00 THB / Month ( @ ! # ‚# $ + ) ( (!( ƒ 3Z)€YY(YY ! U ž H ( ) $ " $ " & ‡ # ‚ $ ƒ K ) L.P.N. Tower, Lumpini Center Happyland Building E, Lumpini Ville Mary-Sathorn and 10% of monthly rental fee Lumpini CondoTown Bodindecha-Ramkhamhaeng Fee for management of commercial condominium units within residential condominium projects (lump sum payment) 189,665.28 THB / Month Fee for building management (2 projects) 10.1 Lumpini Residence Sathorn 110,000.00 THB / Month 10.2 Lumpini Plaza Asoke * 210,739.20 THB / Month Fee for system maintenance of Lumpini Residence Sathorn 20,000.00 THB / Month th Fee for rental and service of Lumpini Tower, 36 Floor, Zone D - January-December 2010 10,000.00 THB / Month Interest paid according to promissory note - Interest rate of 0.717% 67,673.02 THB - Interest rate of 0.683% 186,262.53 THB - Interest rate of 0.8416% 81,208.64 THB - Interest rate of 0.8420% 3,921.64 THB - Interest rate of 0.8920% 29,326.03 THB - Interest rate of 0.9330% 79,138.85 THB - Interest rate of 1.070% 1,113.98 THB - Interest rate of 1.150% 16,761.65 THB

Note: The fee for building management and cleaning of Lumpini Plaza Asoke ended in March 2010.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

111

$ ! " $ @ K H # () @ $( Contract Amount 116,302,875.78 THB 666,355.14 THB / Month

1. Fee for construction management (16 projects) 2. Fee for project management (maintenance) (lump sum payment) ( ‡ $ ‚@ ! ) Xth Floor, Zone E,F) - January-December 2010 4. Interest paid according to promissory note - Interest rate of 0.717% - Interest rate of 0.683% - Interest rate of 0.8416% - Interest rate of 0.8420% - Interest rate of 0.8920% - Interest rate of 0.9330%

5,000.00 THB / Month 6,344.96 THB 54,958.11 THB 23,933.72 THB 576.71 THB 3,054.79 THB 3,450.82 THB

$ ! " $ () @ $( Description

Contract Amount

1. ‡ $ $ ‚@ ! ) Xth Floor, Zone C) - January-December 2010 2. Fee for rental of training center (City Home) - January-December 2010

370,000.00 THB / Month

$ " () @ $( $ @ H # () @ $( Description

Contract Amount

1. Fee for management of room rental (3 projects) 2. Fee for broker (1 project)

1,500.00 THB / Month

10% of the rental fee / Month /room 1 Month rental fee / 1 year rental contract Y(€Y rental contract extended

$ " () @ $( $ @ K H # () @ $( Description 1. Fee for construction management (3 projects) 1.1 Commercial building Phahon-Sutthisarn 1 (January 2010-February 2010) 1.2 Commercial building Phahon-Sutthisarn 2 (January 2010-April 2010) 1.3 Commercial building Pinklao (January 2010-April 210)

112

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Contract Amount 9,345.79 THB / Month 9,345.79 THB / Month 9,345.79 THB / Month

Connected transactions between Lumpini Property Management Co., Ltd. and Lumpini Project Management Service Co., Ltd. Description 1. Fee for cleaning service (Lumpini Tower, 24th Floor, Zone F) - January-December 2010 % ‡ + # 33%3Z ; " ZY3Y

Contract Amount 10,500.00 THB / Month X)€YY(YY ! U

Connected transactions between Lumpini Property Management Co., Ltd. and Grand U Living Co., Ltd. 1. 2. 3.

4. 5.

Description Fee for management of sale of 2 projects, namely, U Delight Jatujak and U Delight Huay Kwang Fee for condominium system integration service of 1 project (U Delight Bangsue) Fee for cleaning service (3 € K ) ) — ; # ’ K &) — ; # Š #) U Delight Bangsue, U Delight Kluay Nam Thai and U Sabai (Z $ K K ) ) U Delight Kluay Nam Thai, U Delight Jatujak and U Delight Bangsue 3.3 U Delight Bangsue Fee for condominium management (U Delight Bangsue) (15 January-April 2010) Fee for Direct Mail delivery service of 4 projects, namely, U Delight Jatujak, U Delight Huay Kwang, U Delight Kluay Nam Thai, and U Sabai.

Contract Amount 2,000,000 THB 200,000 THB based on actual number of works based on actual number of works based on actual number of works 250,000 THB based on actual number of works

Connected Transactions Between Lumpini Property Management Co., Ltd. And Grand Unity Development Co., Ltd. Description Contract Amount 1. ‡ # † — ; # ? based on actual number of works Z( ‡ # † — ; # ? YY)YYY ! U ( ‡ ; H $ † — ; # ? based on actual number of works Connected loans as of 31 December 2010 -NoneNecessity and Reasonability of Connected Transactions The Company’s policy and strategy emphasize the quality control of all the operations. The Company and associated company assign subsidiary companies to be responsible for managing projects which are jointly developed by the Company and associated company in terms of sale, construction and community management (which is considered to be the after sale service). The roles and responsibilities of each party are clearly divided. The service fee is agreed on the basis of the general market price which is fair for both parties. Moreover, the Company is a shareholder in all subsidiary companies and thus it could be assured that this is not a way to transfer assets of the Company to other companies " $ $ $ " " $ $ $ ( Connected transactions process must be agreed by the Executive Directors Committee in the annual business plan of the Company before being presented for approval from the Board of Directors. In practice, the Company has assigned clear role and approval limits for each party to ensure ( * $ ; " " # ) # and appropriate and reporting to the Audit Committee as well as the Board of Directors respectively. Policy and Trend for Connected Transactions in the Future # # $ " " # - $ $ $ $ $ <@ = " $ $ " # ( ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

113

Connected transactions between interested parties The Company encourages its employees to have their own residence by giving discounts as a welfare for those who reserve to buy condominium in various projects of the Company. The policies on this matter are as follows: 1. It must be purchased and sold in the name of the employee for residency purpose only. 2. Discount will be given when ownership transfer is being done. This information will be announced to the whole Company by project. ( ! " $ " ( Lumpini Park Pinklao Name

1. Piyanuch Naweenawakhun 2. Pornthip Chaipoon 3. Aroonrat Sinkacharoen Total

Unit

Number of Units

A-1603 A-0810, A-0811, B-0910 A-0651

1 3 1

Total Sale Price

Discount on Transfer

Note

-

under construction under construction under construction

Total Sale Price

Discount on Transfer

Note

1,116,000.00 1,116,000.00

326,900.00 326,900.00

Transferred June 2010

Total Sale Price

Discount on Transfer

Note

590,000.00 590,000.00

21,689.00 21,689.00

Transferred February 2010

Total Sale Price

Discount on Transfer

Note

1,872,000.00 2,076,000.00 2,137,000.00 6,085,000.00

35,237.00 33,749.00 43,159.00 112,145.00

Transferred May 2010 Transferred May 2010 Transferred May 2010

Total Sale Price

Discount on Transfer

Note

1,939,800.00 3,745,600.00 5,685,400.00

52,858.00 52,858.00

under construction under construction

1,296,000.00 4,534,000.00 1,282,000.00 7,112,000.00

Lumpini CondoTown Bodindecha-Ramkhamhaeng Name

Unit

Number of Units

B2-0317

1

Unit

Number of Units

D2-0316

1

Unit

Number of Units

B-0916 A-1424 B-1523

1 1 1

Unit

Number of Units

D-2024 D-1503, D-1504

1 2

1. Noppawan Kritsanarach Total Lumpini CondoTown Rattanathibet Name

1. Phanpen Saengchanpakdee Total Lumpini Place Rama 9-Ratchada Phase 1 (Building A,B) Name

1. Pornthip Chaipoon 2. Phanpen Saengchanpakdee 3. Vipa Sripayak Total Lumpini Place Rama 9-Ratchada Phase 2 (Building C,D) Name

1. Phaothai Sinkacharoen 2. Vipa Sripayak Total

114

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Lumpini Ville Ratburana-Riverview Name

1. Sureeporn Chaipoon Total

Unit

Number of Units

B-2114

1

Unit

Number of Units

B-0110, B-0203 B-0101

2 1

Unit

Number of Units

A-0910 A-0930, A-0931 A-1127 A-1702

1 2 1 1

Unit

Number of Units

B-0521 C-0203 C-1819, C-1820 C-1821

1 1 2 1

Unit

Number of Units

A-0805 A-0813 A-0814 A-2417, A-2418 A-2419

1 1 1 2 1

Unit

Number of Units

D-1823

1

Total Sale Price

Discount on Transfer

Note

8,803.00 8,803.00

Transferred October 2010

Total Sale Price

Discount on Transfer

Note

2,850,000.00 2,638,000.00 5,488,000.00

74,163.00 74,163.00

Transferred October 2010 Transferred October 2010

Total Sale Price

Discount on Transfer

Note

1,451,000.00 2,802,000.00 1,401,000.00 1,415,000.00 7,069,000.00

7,870.00 5,407.00 5,407.00 18,684.00

Transferred December 2010 Transferred November 2010 under construction under construction

Total Sale Price

Discount on Transfer

Note

-

under construction under construction under construction under construction

Discount on Transfer

Note

-

under construction under construction under construction under construction under construction

Total Sale Price

Discount on Transfer

Note

2,144,000.00 2,144,000.00

10,805.00 10,805.00

Not yet tranffered

1,390,000.00 1,390,000.00

Lumpini CondoTown Ramindra-Nawamin Name

1. Chanakarn Chaipoon 2. Pornthip Chaipoon Total Lumpini Ville Latphrao-Chokechai 4 Name

1. 2. 3. 4.

Pornthip Chaipoon Vipa Sripayak Aroonrat Sinkacharoen Phanpen Saengchanpakdee Total

Lumpini Place Ratchayothin Name

1. 2. 3. 4.

Pornthip Chaipoon Sureeporn Chaipoon Kanittha Kittipokirattara Duangthip Kittipokirattara Total

1,871,000.00 1,838,000.00 4,066,000.00 1,729,000.00 9,504,000.00

Lumpini Place Rama 4-Kluaynamthai Name

1. 2. 3. 4. 5.

Anya Sinkacharoen Sureeporn Chaipoon Pornthip Chaipoon Kanittha Kittipokirattana Duangthip Kittipokirattana Total

Total Sale Price

1,726,000.00 1,838,000.00 1,838,000.00 4,032,000.00 1,933,000.00 11,367,000.00

Lumpini Park Riverside-Rama3 Name

1. Sompong Kwanampaipan Total

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

115

Legal Disputes

116

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Financial Reports

Explanations and Analysis of the Management

Overall performance of the Company L.P.N. Development Public Co., Ltd. engages in the development of residential condominiums for those in the middle to lower-middle range of income who are in need of quality urban residence. The business operation is based on the balanced scorecard strategy to create the balance $ ( ( ) ) $ ( ; # past year, the performance of the Company achieved continuous growth. The gross income of the Company was more than 10,000 million THB 3€)YYY ! U # ( ) # customers’ experiences to add value to service delivery as well as gives importance to “Vibrant Community� strategy which makes the Company unique. ! $ $ $ $ $ $ <@ = " $( H ) " improving the management structure and internal process for speedy operation which becomes one of the strengths of the Company and to reduce expenses and operational risks. At the same time, the Company realizes the importance of social and environmental responsibility especially in terms of impacts caused by the operational process of the Company in order to lead to stable and sustainable growth. ZY3Y) # ) " $ $ $ 3Y)Y (Z ! U) $ )€:Z( € ! U $ ZYY: "

$ #

# $ $ ' $ 3X(: [ ' $ K $ # - $ ZY3Y) ) @ > U #& ) @ $ ! J $ %Â ) @ > J " %J ) @ $ ! U #& ) @ > @ % & $ @ J :%J $ Z $ $ K " ( ! # " $ 3( Z[ ZYY: "

$ #

# $ $ ( Y[( ! $ " $ # " $ ZYY: " ( 3[ "

$ #

# $ $ (

Ă„ 3( J # - $ Z( ( (

˜ 3

˜ Z

ZY3Y ˜

˜

˜ 3%

‚— ƒ )3XX ‚H ! Uƒ X)€€3(YZ ‚— ƒ :3 ‚H ! Uƒ 3) 3X(3X ‚H ! Uƒ : X(Y€ ‚[ƒ 3(Y [

3)X X Z)YX ( 3)€Z: )Y3X(: Z)YY (Y (X3[

3) X )Z Y(X: 3) Z 3) (3Y 3)3Z€(Y €(X3[

3) € )3Y ( € Z) XY ) :X(YY Z)Z€ (Z: €(€€[

:)3 (YY 3€)YY (YY X)XY :)X X(Z X) € ( ( Y[

ZYY: * U J J Ä Ä ) €Z 3Y) Y(: X)€€ ) Y(3Z X)YY3( X 3(Z€[

) €Z 3Y) Y(: X)3ZX )ZX (:: €)X (Z3 3( Z[

Financial Status ‹ # $ ) 3 ; " ZY3Y 3Y) 3( X ! U) $ from )Y (Y ! U ZYY: "

$ #

# $ $ ) ' $ Z ( €[) # ( ! Y (: ! U $ $ $ K $ $ 3)€ Y(€ ! U( ! " $ Z) 3:(3 ! U ZYY: "

$ #

# $ $ )Z::(€ ! U ZY3Y ' $ €Z(€3[ " #% $ % (YZ ! U) $

" $ " 3 (X€ ! U $ $ Z€(3X ! U( ! " $ $ K ) ) @ & & ) @ J $ @ J %Š $ ' $ ( Investment Structure ZY3Y) " 3( Z[ $ $ " ' € (€ [) + # " $ " ' # " ( ! $ " ' $ Y(€ ZYY: Y( 3 $ $ K ( ! # $ " ' 3Z $ $ & / # ! $ 3(33 ( ! " # $ " ' $ Y(3: ZYY: Y(Z: (

118

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

# " $ $ $ $ # Item 3( $ # / ¾ # [ Z( $¾ # [ ( ¾ # [ ( ; " ' ( J ¾ [ X( J ¾ [

@( ( ( ; " () @ $(

$ * # J ZY3Y 3 (YZ Y( 3X( Y 3(33 :( 3:(Z

3Y( Y(Y 3X(Z: Y( 3 3 ( ZX(:Z

! $ # $ 3Z $ & / # ! $) ) * " () @ $() * " () @ $() @ " () @ $() @ $ $ " () @ $() @( ( ( ; " ()@ $() H( ( J ; " () @ $() " ; " () @ $() " () @ $() & J " () @ $() " () @ $() " () @ $() $ " () @ $(

^¡ ^`^> :=` ¢ ^;^> > :?= ? \> ! # ZY3Y 3X(Z:[ # ZYY: "

$ #

# $ $ 3 ( 3[) + # " # ( * 3 ; " ZY3Y) $ + 3)3ZZ(3Y ! U) $ $ 3) 3:(ZY ! U $ ' $ 3 ( [ $ ( ) + ( ^ =^\ :=> 9[:= <] :=` £ > ?< ¤?<=` ! " #

$ K $ # ) ) $ $ # ) # # $ ' $ $ " $ " # ( ZY3Y) X K " # $ $ ) XZ 3 ):3Y ! U( * $ ZY3Y) $ $ $ K ) ) @ > @ %U #) @ $ ! $ % $ @ > & ( * ) $ ZY3Y) % " & # 3 ) 3 ! U( ZY33) $ % " & # " 33) 3 ! U( ! K " $ $ # - $ ZY33

K

"

3( @ J : Z Z( @ $ ! J $ % U $ # ; ( @ & & ( @ J ( @ J % TOTAL

3)3X Y: Z) YZ 3) Z 7,290

> H ! U $ Z) (YY (YY )XYY(YY )ZYY(YY 3) YY(YY 11,450.00

3 ¾ ZY33 3 ¾ ZY33 Z ¾ ZY33 Z ¾ ZY33 ¾ ZY33

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

119

Accounting Policy

1.

Revenue and Expense Recognition 1.1 Revenue from sale of condominiums and land and houses will be recognized when the signi t risks and returns of ownership are transferred to the buyer and the Company is no longer involved in the direct or indirect management or control of the sold condominium units. The value of the revenue to be recognized and the costs initiated from such transaction can reliably be measured. 1.2 Revenue from rental and service fee related to land, building and equipment are recognized on an accrual basis. 1.3 Revenue from services are recognized as income when the services have been rendered. 1.4 Other income and expenses are recognized on an accrual basis. 1.5 The Company calculates costs of condominiums and properties sold by recognizing as cost of sales based on the proportion of properties and condominiums sold.

2.

Cash and Cash Equivalents For the preparation of the cash +ow statements, cash and cash equivalents include cash, deposits at banks and investments in bills of exchange which are due within 3 months and without limitations on withdrawal.

3.

Temporary Investment Investment in marketable securities is stated at a fair price. The difference from changes of values recorded as unrealized pro ‚ ƒ $ (

4.

Allowance for Doubtful Debt The Company sets up a reserve account for doubtful debts in an amount equal to receivables estimated not to be collectable, by considering each installment receivable that is more than 6 month overdue in accordance with revenue recognition criteria.

5.

Land and Project Costs @ $ $ K $ # $ $ - " ) ( The project costs include cost of land, land development cost, construction cost, expenses that are directly involved with the project and related interest expenses. Recording of interest expenses as project cost ends when the construction work has been completed or has been halted.

6.

Inventories $ $ $ $ $ $ $ $ $ $ " - " ) ( $ % % % $ realizable value, whichever is lower.

(

@ #% % $ $ $ $ $ ' $( % " $ $ $ $ cost less provision for impairment (if any).

8.

Assets for Rent Lands are stated at cost and buildings and equipments which are not appraised, are stated at cost less accumulated $ ( ; $ " # # % $ †

120

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

:(

@ $) U $ # $ ' %  ž; % @ $ $ ( % U $ # $ ' $

$ $ $ " # # % $ † Number of Years ? U $ # Y ; $ ? ' 3Y $ ; € > €

? U $ # $ & # @ ; $ ? '

Number of Years Y 3Y €

3Y(

* ! $ $ $) " $ # $ ' ) ) $ $ $ # K $ # " ( ‹ $ " $ ( ( " " & ) " # - $ ž ( ! $ # / ) $ $( J " # - ) # ( " $ $ $ # # + ) " (

33(

* $ ‡ @ *# ! $ $ # $ " " ' # ( / $ $ $ # " $ $ # " " $ # $(

3Z(

! / ! $ " $ $ $ / " $ / $ $ /

$ J $ ( ! $ # - $ $ K " ZYY $ # - $ #

K # ZYY $ (

3 (

*

# !

$ # #

$

# $ $ ' H # % & $

$ $ ( * ) $

( $ " " / Â?

# $K Â? $

$ $ " " ( ! " $ " / $ $ " / ( " # ‚ (3 (Zƒ( $ $ (

3 (

@ " ! $ " # " # ( " # / $ + " ' $ " # $ " " $ $ " # ( / $ ' $ / $ " " $ " # ) # - " " # - $ $ / $ (

3€(

# % U # $ " $ $ # ‚ ƒ $ " # $ # " $ $ # $ $ $ &( ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

121

%

3X(

! & ! $ & (

3 (

$ ‡ $ $ � U 3 (3 $ ‡ $ ! " $ $ K " $ $ $ " ( * $ $ $ � $ # $ " / $ # ( ! $ $

$ $ " ( ! " $ $ $ $ $ / $� ž ( 3 (Z � U ! $ " $ $ " #

$ # ! @ " @ ( ! " " # # - $ " $ $

$ # " K $ — $ H $ $ $ " " ( ! $ Â? " $ $ $ ž $ # " ( #

$ " ( ! " $ $ $ + # " $ + / $ " $ ( ! $ " $ $ $ # " $ $ " (

# $ " - $ † $ $ ‡ $ ‡ ZY3Y

3 (

; $ # $ " $ $ # ‚ ƒ $ " # $ # " $ $ # $ # $ $ # $ # " $ $ " $ $ ' ‚ ƒ $ (

; J J # " ; J

( [ > " # $ ( ( % $ $ ‡ $ ! $ 3:: " # $

  *

# $ $ ! ‡ $ *

# $   ( 3 žZY3Y " $ - ZX H ZY3Y $   ( €YžZY3Y  ( €€žZY3Y " $ - 3€ ; " ZY3Y *

# $ $ ‚ $ ZYY:ƒ) ‡ J # $ $ ‚ $ ZYY:ƒ $ ‡ J # $ $ ( Z *

# $ $ ) ‡ J # $ $ $ ‡ J # $ $ " $) Z€

# $ $ ( ! "

# $ $ " # - $ $

# $ $) # # ) # ( $ $ ( 3 (3 *

# $ $ $ ‡ J # $ $ $ $ (

122

Accounting Standards/Financial Reporting Standards

Effective Date

*

# ‚ $ ZYY:ƒ *

# $ $  ( 3 ‚ $ ZYY:ƒ *

# $ $  ( Z ‚ $ ZYY:ƒ *

# $ $  ( ‚ $ ZYY:ƒ *

# $ $  ( ‚ $ ZYY:ƒ *

# $ $  ( 3Y ‚ $ ZYY:ƒ

ZX H ZY3Y 3 Â’ ZY33 3 Â’ ZY33 3 Â’ ZY33 3 Â’ ZY33 3 Â’ ZY33

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

‡ + *

# $ #

# $ " ' # $

Accounting Standards No. 11 (revised 2009) Accounting Standards No. 16 (revised 2009) Accounting Standards No. 17 (revised 2009) Accounting Standards No. 18 (revised 2009)

1 January 2011 1 January 2011 1 January 2011 1 January 2011

Accounting Standards/Financial Reporting Standards

Effective Date

Accounting Standards No. 20 (revised 2009)

1 January 2011

Accounting Standards No. 21 (revised 2009)

Construction contract Land, buildings and equipments Leases Income

Accounting Standards No. 23 (revised 2009) Accounting Standards No. 24 (revised 2009) *

# $ $  ( Z ‚ $ ZYY:ƒ Accounting Standards No. 28 (revised 2009) Accounting Standards No. 31 (revised 2009) Accounting Standards No. 33 (revised 2009) *

# $ $  ( ‚ $ ZYY:ƒ Accounting Standards No. 36 (revised 2009) Accounting Standards No. 37 (revised 2009) Accounting Standards No. 38 (revised 2009) Accounting Standards No. 40 (revised 2009) Financial Reporting Standards No. 3 (revised 2009) Financial Reporting Standards No.5 (revised 2009)

Accounting for government grants and disclosure of government assistance Impacts of changes of currency exchange in foreign currency Cost of borrowing Disclosure of related parties $ $ $ Investment in associated company Interests in joint venture Earnings per share Impairment of assets Liability estimation and contingent liabilities and assets Intangible assets Investment properties Merger Non current assets held for sale and discontinued operations

1 January 2011 1 January 2011 1 January 2011 3 Â’ ZY33 1 January 2011 1 January 2011 1 January 2011 3 Â’ ZY33 1 January 2011 1 January 2011

1 January 2011 1 January 2011 1 January 2011 1 January 2011

The Management of the Company has considered and agreed that Accounting Standards No. 11 (revised 2009), No. 20 (revised 2009), No. 31 (revised 2009) and Financial Reporting Standards No. 3 (revised 2009), and No. 5 (revised 2009) are not related to the business of the Company. Other Accounting Standareds and Financial Reporting Standards which are related to the Company will be implemented on the effective date. The Management has assessed and agreed that this will # ( 18.2 New Accounting Standards and Financial Reporting Standards

Accounting Standards/Financial Reporting Standards

Effective Date

Accounting Standards No. 12 *

# $ $ Â ( 3: Accounting Standards No. 26 Accounting Standards No. 29 Financial Reporting Standards No. 2 Financial Reporting Standards No. 6 Financial Reporting Standards No. 15

1 January 2013 3 Â’ ZY33 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011

Income tax � " Accounting and reporting of " ‡ # + Shares-based payment Exploration for and evaluation of mineral resources Real estate contracts

Accounting Standards No. 29 and Financial Reporting Standards No. 2, No. 6 and the interpreration of the Financial Reporting Standards No. 15 are not relevant to the operation of the Company. The Company will start implementing the Accounting Standards No. 12 and No. 26 on the effective date. The Management has assessed and agreed that this will not have any # ( ZY3Y) $ " $ $ ! *

# $ $ Â ( 3: Â? U

$ $ $ ( ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

123

AUDITOR’S REPORT

For the year 2009, the Auditor’s Report is as follows:

‚3ƒ $ $ $ $ " @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; * ; —U ; *J $ " @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; ; " 3) ZYY:) $ $ $ $ $ ) $ $ # $ � ' $ # $ Q ' ) $ $ $ + $ + $ $( ! " � # $ ( H " / " $ $ ( ! $ $ $ $ $ ; " 3) ZYY $ $ " $ $ $ ‡ " 3:) ZYY:) / $ ' $ ( ‚Zƒ $ $ $

$ #

$ $ # $ $ ( ! $ $ ' $ $ " " ( * $ $ / #) " ) $ # $ $ ( * $ $ #

# $ $ # $ " # ) # ( " $ $ " " ( ‚ ƒ ) $ $ $ $ "

) ) $ $ @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; * ; —U ; *J $ @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; ; " 3) ZYY: $ $ + $ $ #

$

# ( ? ; * * $ #

‚H ( > J K & ƒ ( (*( ‚! $ƒ J #  ( 3Y

‡ " 3 ) ZYY:

124

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

For the year 2010, the Auditorâ₏™s Report is as follows: (1)

(2)

‚ ƒ

‚ ƒ

I have audited the consolidated balance sheets of L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED AND SUBSIDIARIES and the separate balance sheets of L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED as at December 31, 2010 and 2009, and the related consolidated statements of income and separate statements of income, consolidated statements of changes in shareholders' equity and separate statements of changes in shareholder equity, and consolidated statements of

+ $ + $ $( ! " of the Company's management as to their correctness and completeness. My responsibility is to express an opinion on " $ $ ( I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and $ " " ( * $ $ / #) " ) $ # $ $ ( * $ $ #

# $ $ # $ " # ) # ( " $ $ " " ( ) $ $ $ $ "

) ) $ $ @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; * ; —U ; *J $ @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; ; " 3) ZY3Y $ ZYY: $ $ + $ $ # accepted accounting principles. * $ ) ’ 3) ZY3Y) # $

# # recognition of revenues from sales of real estate from recognize income based on the percentage of completion work to " $ # & $ $ $ " $ $K $ ZYY:

$ $ $ #

# ( $ $ $K $ $ $ $ ( ) $K $ " $( * $ € ) ; " 3) ZY3Y $ " $ $

# $ $ ( 3: U "

$ ( From change in that accounting policy the Company and subsidiary companies have recognized the increment of employee " " $K # " # # $ #

# $ ZY3Y( $ $ $K $ # $ $ $ $ ( ) $K $ " $(

? ; * * $ #

‚H ( > J K & ƒ C.P.A. (Thailand) Registration No. 3104

February 17, 2009

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

125

BALANCE SHEETS @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; * ; —U ; *J ‡?J ! “ *J  ; ; ; HU J 3) ZY3Y * ; ZYY:

ASSETS Current assets $ ' ! $

$ " *

" % Â " @ $ $ K $ J $ " ? *$ $ *

$ *

$ $ $ $ $ / ? Total current assets Non-current assets " $ $ @ $ $ K $ $ * % ) $ ' % ? % ‹ $ # / ? Total non-current assets TOTAL ASSETS

Note

$ $ ‚U ƒ 2010 2009 ‚J $ƒ

‚U ƒ 2010 2009 ‚J $ƒ

(Z ( ) X

3)3ZZ)ZZY)X ( Z %

: )33Z)€: (3Z %

::Z)3€ ):X:(Z3 Z )Y €)3X€(YZ

( ) (€ ) ) 3 3Y(3 (X) :) 3

ZZ)€:3(YY €€ )€ (YY 3Y)€:3(YY :)€ (YY 3)€Z€)Z:Y(X €3 ) Y ( 3)€Z€)Z:Y(X €3 ) Y ( ) ) 33) € (X Z):Y3) )Z 3( 3 ) ) )€:Y(€€ Z) €): Z)YX ( 3)3 ):3 ( 3)Z:€) €( 3ZY) €:) 3( € Y)YYY)3XZ(X Z) 33):X )3 €(: Z)Y ) 3Z)€Y ( X Z) 33): ) € (Z€ Z)Y :) ) €Y(

3Y(

3XY) Y€)3€ ( Y Z :) Z) ZX(:€ 3XY) Y€)3€ ( Y Z :) Z) ZX(:€ :€) 3) YY(YY ZY)YYY)YYY(YY :€) 3) YY(YY ZY)YYY)YYY(YY Z3)XZZ)3€3(:X ZY) €3)Z Z( Y % % % % ZY): Y) YY(YY % 33)€Z3) X ( ZY)3 €) €(: 33)Y Y) 3€( Z 3:) XY):X (Y3 3 )€ X) Y ( X 3Z) X)Z Y(: 3Z) XZ)YX (XY :):€ )€ (X 8,727,213,738.63 6,594,878,907.53 8,656,979,402.76 6,502,886,567.75

( ) 3Y(Z (€) ) 3 ( ) 33) 3 (:) 3Z) 3

3 Y)€:Y) €( Y :ZZ) X) €(:€ ZX):€Y)XY ( Y 3YY) Z)Y3Y( :

33 ) 33) (:X € 3)XX3): (Z€ X €)XZ )€€3(€: Y)€Y )Y€Z(

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Y) Z)Y (33 Y3) X ):3 ( )ZXY)X€ (:€ X)3€ ) (

Y) Z)Y (33 ZY) €)ZX€(X €::) X ) ( : XX):X3):: (

Z ) ) 3( Z ) X )3Y (Y3 3 ) :) Y(:X ZY) 3)ZX (: :):XZ)Y 3( :)€3 )€ €(€ ) 3 ) ( : X): X) € (€ 1,654,145,288.75 1,503,987,114.78 1,613,274,631.91 1,484,511,245.96 10,381,359,027.38 8,098,866,022.31 10,270,254,034.67 7,987,397,813.71

$ #

126

:Y)€:€)33 (3 Z )Y €)3X€(YZ

LIABILITIES AND SHAREHOLDERS' EQUITY Note

Current liabilities ? $ $ % 3 J $ $ $ " ! $

$ " #% $ " 3 J $ " 3Y( ? " *$ $ J *

$ / ? Total current liabilities Non-current liabilities @ " $ # % (33) 3€ @ #% 3X ? % " ; $ " (3 (Z ? Total non-current liabilities Total liabilities Current liabilities $ � ' * - $ 3) €)X: ) X $ U 3(YY $ $ $% 3) €)X: ) X $ U 3(YY & J $ # Appropriated @ # Z3(3 — $ Total shareholders' equity - net H Total shareholders' equity including minority interest Total liabilities and shareholders' equity

$ $ ‚U ƒ 2010 2009 ‚J $ƒ

‚U ƒ 2010 2009 ‚J $ƒ

X) €) €3(:: ): )ZZY(YY :X)Y: )X 3(

Z )::Z) €(X 3)€3:) €Z(X ZZ) ) Y (

X) €) €3(:: ): )ZZY(YY :Y): €)Y €(3:

Z )::Z) €(X 3)€3:) €Z(X ZY) )€ 3(€

) 3 )Z3:( : %

X)€Y3)€ Z( 3 %

)Z3€) :X(X: Z:)€€Y)€ :(:

€)X33) :(Y 3X)3Z ):33( €

€ ):: )XX€(:X €€ )X €)YX ( Z € ):: )XX€(:X €€€)X €)YX ( Z 3 Y)33€) :( Y 33Z)Z ):€Y(ZX 3X:): Z) :( 333):€ ) €(Z3 ):€ ) Z(Z Z €) €3) 3 (YX Z ) €)Y :(Z€ ZZ )€ )X :(:X 3 ) 3)3:€(X 3 ) €)33 ( : 3 X):Z€) ( X 33€) X )€ Z( € 3,338,430,986.61 2,538,661,856.99 3,314,418,636.29 2,510,228,856.11 3Y)€: ) : ( XZ)X€Y)YYY(YY

) 3X) 3 ( Z€:)YYY)YYY(YY

3Y)ZX ) €Y( Y XZ)X€Y)YYY(YY

)Z ) X(Y Z€:)YYY)YYY(YY

€)X: ) Z3(€ 33) :3) X (3Y €) YY)Y 3(ZY 3Y):XY) €:(X Y) €3)3€€(YY Y)YYY)YYY(YY Z )Z X)€ :(YY Y)YYY)YYY(YY 3) 3 ) Y€(3X )€ 3):X ( 3 3)33 ) €(3X 3)333)3 ( 3 961,109,076.58 308,290,550.19 906,674,416.06 304,360,854.43 4,299,540,063.19 2,846,952,407.18 4,221,093,052.35 2,814,589,710.54

3) €)X: ) X (YY 3) €)X: ) X (YY 3) €)X: ) X (YY 3) €)X: ) X (YY

3) €)X: ) X (YY 3) €)X: ) X (YY 3) €)X: ) X (YY 3) €)X: ) X (YY 3) Y )3XX(YY 3) Y )3XX(YY 3) Y )3XX(YY 3) Y )3XX(YY :)YX3) (Z :)YX3) (Z :)YX3) (Z :)YX3) (Z

3 )YYY)YYY(YY ): )Z 3)Y:Y( 6,081,798,773.08 ZY)3:3(33 6,081,818,964.19 10,381,359,027.38

3 )YYY)YYY(YY )3 )Z ) € (3X 5,251,801,536.40 33Z)Y ( 5,251,913,615.13 8,098,866,022.31

$ #

3 )YYY)YYY(YY ): )€: ) YY(Y 6,049,160,982.32 % 6,049,160,982.32 10,270,254,034.67

3 )YYY)YYY(YY )YX )Z Y) ZY(: 5,172,808,103.17 % 5,172,808,103.17 7,987,397,813.71

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

127

STATEMENTS OF INCOME @( ( ( ; > @? H  ! —U@ ?H * “ @ H ! ; * ; —U ; *J ‡?J ! “ *J  ; ; ; HU J 3) ZY3Y * ; ZYY:

Revenues Sales J $ " H # " Total revenues Cost of sales and services $ " # " Total cost of sales and services ‡ % J Other income # # Gain on sales of assets ; $ $ $ J ? Total other income X J ' K [% # / *$ / ; � H # " / ) [% " $ / ‡ X J ' K [ / Š % J * " " ' $ H U # ‹ # $ # " $ ‚ ƒ

Note

(3Z (3€

$ $ ‚U ƒ 2010 2009 ‚J $ƒ

9,676,230,126.92 8,730,114,253.33 9,604,841,932.00 8,717,347,051.60 ) Y:) Z ( : XZ)YZX) 3 ( Z Z) 3:) Y(: € ) : )€ 3(€ Z3:)XZX)€Y (3€ 3 )Z€3): 3( € % % 9,940,665,957.46 8,975,392,938.50 9,647,561,302.94 8,775,240,623.17 ‚X) € ) Z)Z: (:€ƒ ‚X)YY3) )X3 ( ƒ ‚X) Z)Z :)X Y( Xƒ ‚X)Y Y) € ):Y€(€ ƒ ‚Z€) XZ) X( Xƒ ‚ 3)Y )3 (€Zƒ ‚ Y)3 ): (Y ƒ ‚ )33 ) (€3ƒ ‚3X )3 3):Y:(Y3ƒ ‚3Z3)YY€) :€( Xƒ % % (6,547,436,653.72) (6,163,816,297.85) (6,472,387,583.89) (6,117,576,279.04) { Z { Z{ ‚ { { ]{] ‚] { { { Z‚ {] {]] { ‚ Z)XXY)Z :(3 Z:)33 ) X3( 3 )3€X)X Z( Y 29,796,200.66 % Z ) Y) 33( 3 Z) X )XX (Y: 106,577,012.94 { ZZ{ ]{ ]‚] ‚3: )Z €):3X( ƒ ‚ €€) :Z)3 Y(3€ƒ ‚3Z)XYY)YYY(YYƒ ‚ 3)3X ) Z(€€ƒ ˆ { ]{ { Z‚ ‰ Z) XZ): ) (3 ‚ )Z Y) :€( ƒ { { { ‚ ‚ Z3)X Y)3: ( €ƒ {] { ] { ‚

3€) Y ) :€(ZX Z) )Z (:€ ) 3) X(ZX % Z€)€ZY)XZ ( € 3 )3€X)X Z( Y 24,931,208.02 29,817,341.31 % 3 Z) Y ) YY(YY % Z ) Y) 33( 3 :)€ :) (3 3) € ) Y(: 79,177,582.06 209,287,565.80 { Z { { ‚ { { ] { ‚ ‚Z X) €Y) Y€(Y3ƒ ‚ 3 ) Z): Y(ZXƒ ‚ 3)Y3Y)€Y3( ƒ ‚€:3)Y3Y)ZXY(€Zƒ ‚33) Y)YYY(YYƒ ‚3Z)XYY)YYY(YYƒ ‚X:) : )Y Z(Y:ƒ ‚ Y) Y )3 3( Zƒ ˆ Z{ {Z ‚ ‰ ˆ { ] { ]{ ] ‚ ‰ Z)3Y3) Y)Z ( Z) ZZ)X ):ZZ(X€ ‚33)33 )Y (:Xƒ ‚ )3X:) 3(: ƒ { Z {] { Z‚Z { { { ‚] ‚€ )XX ):3Z(€Xƒ ‚X 3)ZY )X:X(3Xƒ { {Z { Z ‚ ] {] { Z]{ ‚

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3€)3 :) €Z( 3 % Z€)€ZY)XZ ( € 24,859,686.35 :):Z:)YYY(YY % :)Y€Z): (3Z 154,502,041.23 { { ]]{ ‚ ] ‚ ) 3:)€ €(Z3ƒ ‚ZXX) ZZ) €( :ƒ ‚33) Y)YYY(YYƒ ‚ €)ZY )Y3 (33ƒ ˆ]Z { { Z ‚ ‰ Z)33€)Y X)Y:Y(€€ ‚33)Y ) (Z€ƒ { { {] ‚ ‚€X:) 3)3ZZ( ƒ { { { ‚

3)X X):X:)€ Z( 3)€Y3):Y3)Y3 (€Z 3)X )Z:X) € (€3 3)€ )Z )€Z ( : ) Y€(Y €3)Z ( % % 1,637,063,347.42 1,501,952,297.36 1,637,296,454.51 1,534,277,524.43 3(33 3(YZ 3(33 3(Y€ 1,475,698,768 1,467,567,853 1,475,698,768 1,467,567,853

$ #

128

‚U ƒ 2010 2009 ‚J $ƒ

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

129

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY J

@( ( ( ; > @? H ! U@ ?H * @ H ! ; * ; U ; *J ?J ! *J ; ; ; HU J 3) ZY3Y * ; ZYY:

' $ $ $ $% &

U # # " 3) ZYY: $ 3) )X: ) X (YY 3) Y )3XX(YY

#

# @ # # ' & { Z K { {]Z { ] { { ]] ! & J & & $ $ $ $ 3: ; $ $ $ 3: @ ^ ' { Z K { {]Z { ] { { ]] U # # " 3) ZY3Y $ 3) )X: ) X (YY 3) Y )3XX(YY

#

# @ # # ' & { K { {]Z { ] { { ]] *$K " $ $ $ $ 3: ; $ $ $ 3: @ ^ ' { { {]Z { ] { { ]] $ #

130

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

%

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' $ J $ & $ #

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3X)X :) 3 (:

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3X):: ) Y ( Z { {Z {] :) 3 )YY3(YY 3)X )YX ) ( Z ZX )XY ) Y(Z Y3) )XX (3Z ]{ { {Z] Z

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

131

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Cont.) % J

@( ( ( ; > @? H ! U@ ?H * @ H ! ; * ; U ; *J ?J ! *J ; ; ; HU J 3) ZY3Y * ; ZYY:

$ $ $%

U # # " 3) ZYY: $ 3) )X: ) X (YY 3) Y )3XX(YY

#

# U # # " 3) ZYY: 3) )X: ) X (YY 3) Y )3XX(YY ! & J & & $ $ $ $ 3: ; $ $ $ 3: U ; " 3) ZYY: 3) )X: ) X (YY 3) Y )3XX(YY U # # " 3) ZY3Y 3) )X: ) X (YY 3) Y )3XX(YY

#

# U # # " 3) ZY3Y 3) )X: ) X (YY 3) Y )3XX(YY *$K " $ $ $ $ 3: ; $ $ $ 3: U ; " 3) ZY3Y 3) )X: ) X (YY 3) Y )3XX(YY $ #

132

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

&

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3X)X :) 3 (:

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3X):: ) Y ( Z )YX )Z Y) ZY(: X) X3)ZZZ(YY 3)X )Z:X) ( 3 ZX )XY ) Y(Z Y3)X::) X (3Z ): ) : ) YY(Y

3X):: ) Y ( Z )3 Z) Y )3Y (3 X) X3)ZZZ(YY 3)X )Z:X) ( 3 ZX )XY ) Y(Z Y3)X::) X (3Z X)Y :)3XY): Z( Z

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

133

STATEMENTS OF CASH FLOWS @( ( ( ; > @? H ! U@ ?H * @ H ! ; * ; U ; *J ?J ! *J ; ; ; HU J 3) ZY3Y * ; ZYY: U $ $ 2010 2009 2010 2009 (Restated) (Restated)

, K % # " " / + # " ; @ @ J $ J @ $ # $ @ @

@ $ $ # / ; $ $ $ / X J K % ' K # % # ' ? # $ $ # ! $

$ " J $ " @ $ $ K $ *$ ? @ $ $ K $ $ ? % \% #

Z) ) ) 3(Z Z)Y:Y)X3 )ZY:(:Z Z) 3 ) Y )3 Y(X Z)3Y )YY )X ( Y

3Y)X )3 (YY Y)YYY)YYY(YY Z)Y X) :(:: )3XZ) ZZ( :Y) 3 (YX ) : ) 3Y( Y Z: ) (ZY )3: ) 3(: 3)ZX )YYY(YY 3:)Y3Y)Z: (Z Z ) Y) 33( 3 Z ) Y) 33( 3 % 3)ZX )YYY(YY Z:) 3) Y3( Y Z ): Y)X :(3Z 3)XX3) X ( : Z)3 Y( % 3:)ZX ( Y

Z:)33 ) X3( ) 3) X(ZX % % % % 3 Z) Y ) YY(YY :):Z:)YYY(YY )Z Y) : ( 33)33 )Y (:X )3X:) 3(: 33)Y ) (Z { { { Z Z { ]{ { { ] {]] { ]Z { ] {Z] { Z Z ZX) )Y: ( ) :(: 3Z3) XY( X 3:) X ):3 ( 3) :) YZ):3Z( :)Y )3 Z( Z) )X ( X)X ): Y( : Z:) 3) (3 { { { Z Z

3 ) Z)Y3Z( : ZX) )Y: ( 3Y ) :Y( 3 :Z ) :(: Z Z) :( Y) :)3 ( 3 Z: )YZ ) : (ZY 3X) 3 ) ( Z 3)ZYY)3Y ) X ( 3 3) Z )333)X (X 3X ) X )Y Z(XY :)Y )3 Z( ZX)Z 3): ( X:) )3 Y(X 33 ) )Z::(Y X)X ): Y( : 3X) Z:)3ZZ(: Z:)X ) Y ( ] { Z { ] Z { Z { ] { ]

$ #

134

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

)XY ) X3(YY Y)YYY)YYY(YY Z ) :) (YZ Z ) ):X ( :Y) 3 (YX ) : ) 3Y( Y Z: ) (ZY )3: ) 3(: % 3:)Y3Y)Z: (Z Z ) Y) 33( 3 Z ) Y) 33( 3 % % Z:):YY)3 X( Z ) :)X X( 3)XZ )X (: ):XZ( Y % %

3 ) Z)Y3Z( : 3 X) :Y( 3 ) Z) X (X Z: )YY ) ( X 3)3::): )Z3Z(33 3X ) X )Y Z(XY Z )Y33)Y Y(X 33 ) )Z::(Y 3 )YZ )X3X(: {]] {Z Z Z

? # " ‚$ ƒ ! $

$ " J $ $ $ " J $ " ? " ? % " Operating liabilities increase (decrease) # $ ‚ $ƒ $ / $ $ / $ Net cash provided by (used in) operating activities Œ , K " # " $ " / # $ $ $ " / # ; $ $ $ / $ / $ Net cash provided by (used in) investing activities Œ , K J # " $ % $ $ ‚ ƒ " & $ $ % % $ #% J #% " $ # ! & % $ & & ; $ $ $ Š % " '& ˆ ‰ J # "  ‚$ ƒ $ ' $ ' ’ 3 � " ^ '

(Baht) 2010 2009 (Restated)

$ $ 2010 2009 (Restated) 3€ )€X€) € (YY Z) 3 ) X ( % Y:) X)Y €( Z ‚ ):XY) 3Y(Y ƒ 562,504,686.02 € 3) € )€ 3( ‚ 3)YY ) :(: ƒ €)X 3) Z (Y3 ‚XZ ): €) XZ(Y ƒ (127,947,297.67)

Z ) X) X(€: 3€€)€XY)Y (€Z Z:)3 X): X( € 33X) YZ(3Y Z) 3 ) X ( 33X) YZ(3Y % 3 ) Z€)XX (X ‚3Y)3: ): Y(X ƒ ‚ )€3€)X Y(Y€ƒ YZ)€3Y)YY€( ‚ )Z3€)3XZ(3 ƒ Z) :)€ (€ ‚€)€€ ) Z(Y ƒ )€Y (ZY (303,282,903.78) 568,350,692.96 (318,411,886.76) Z)Y:€)X€:)€:X(XY 3)3€ ) :Y(Z€ Z)Y3 )ZZY)X 3(: ‚:Y) :)Z €( ƒ ‚ 3) : ) Z(3 ƒ ‚:3)ZZ )Z 3( ƒ % €)X 3) Z (Y3 % ‚€ :)€ )YY (ZXƒ ‚€ Z) YZ)Z€X( ƒ ‚€€€) X)3::( €ƒ 1,425,382,352.97 (317,059,785.79) 1,370,620,210.81

% ‚ YY)YYY)YYY(YYƒ % 3) €Y)YYY)YYY(YY % ‚ )YYY)YYY(YYƒ X) Y)YYY(YY % ‚Z:) €:) Z€( Xƒ ‚3 )€Z3) (Z ƒ ‚ X )X Z(3 ƒ ‚ ) ZX): €( Yƒ ZY)3: (:€ Z Z)Y: (3 ZY) 3:) X(: :)Z: ) Y:(YY 297,652,704.39 1,077,727,984.10

% % % 333) Z )€YY(YY ‚ZZ) X€):Y€( ƒ ‚ X )X Z(3 ƒ % ZY) 3:) X(: 409,210,429.46

‚ YY)YYY)YYY(YYƒ 3) €Y)YYY)YYY(YY ‚ )YYY)YYY(YYƒ :):Z:)YYY(YY ‚:)€:Z)3 Y(ZZƒ ‚ ) ZX): €( Yƒ 3X )3 Y(3: :)Z: ) Y:(YY 1,162,472,723.17

% % % ‚X:)YYY)YYY(YYƒ 3Y€) € ) X( 3 €):3 ) 3( 3Y€) € ) X( 3 €):3 ) 3( Z)€ :)YYY)YYY(YY 3)ZX )YYY)YYY(YY Z)€ :)YYY)YYY(YY 3)ZX )YYY)YYY(YY ‚Z)Y )YYY)YYY(YYƒ ‚Z) Y)YYY)YYY(YYƒ ‚Z)Y )YYY)YYY(YYƒ ‚Z) Y)YYY)YYY(YYƒ )€ZZ) :Z) YY(YY Z) €3)ZYY)YYY(YY )€ZZ) :Z) YY(YY Z) €3)ZYY)YYY(YY ‚ ) :Z)3 Z) YY(YYƒ ‚ ) X )€:Z) €(YYƒ ‚ ) :Z)3 Z) YY(YYƒ ‚ ) X )€:Z) €(YYƒ ‚ ) Z3):Z3( Xƒ ‚ ):3€)X ( ƒ ‚ ) 3) (X ƒ ‚Z) 3) YZ(3Xƒ % ‚3)3::) ::(:€ƒ % ‚3)3::) ::(:€ƒ % 3 ) ):3 (:Z % 3 ) ):3 (:Z % :)YX3) (Z % :)YX3) (Z ‚ X ) ZY)Z: ( Xƒ ‚X Y)Y€:)€ (€ ƒ ‚ X ) Y ) : ( Xƒ ‚XZ:): )€ (€ ƒ ˆ Z{] { ‚ ‰ ˆ { { { ‚Z ‰ ˆ {] { ‚ ‰ ˆ { { Z { Z‚] ‰ 3 Y)YXX)XX (Z3 €3) Y ):YX(3€ € )€3 ) (: 3 ) :€) ( ::Z)3€ ):X:(Z3 X Y) X)YX (YX :Y)€:€)33 (3 € X)Y::) X ( € { { {] ‚ ZZ { {Z]Z‚ Z { { Z ‚ Z { Z { ‚

$ + Z $ #

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

135

NOTES TO FINANCIAL STATEMENTS AS AT DECEMBER 31, 2010 AND 2009

1.

Company's operation L.P.N. Development Public Company Limited has been listed in the Stock Exchange of Thailand since on June 21, 1994. Type of business is Real Estate. The Company's location is as follows : - Location : 1168/109, 36th Flr., Lumpini Tower, Rama IV Rd., Sathorn, Bangkok.

Z(

U Z(3 ! " $ #

$

# $ $ *

# * U( ( Z€ $ $

$ ; U Development by Ministry of Commerce date January 30, 2009 regarding the condensed form should be included in U( ( Z€€Z $ # $ / # # $ # $ # $ $ / # * U( ( Z€ €( Z(Z ! " $ $ ) / $ $ related accountingn policy. Z( ! $ $ $ $ ; " 3) ZY3Y $ ZYY: statements of L.P.N. Development Public Company Limited and its subsidiaries. The Company held in its subsidiaries shares capital as follows:Type of business Relationship Percentage

PORNSANTI CO., LTD. LUMPINI PROPERTY MANAGEMENT CO., LTD. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD.

(

2.4 Z(€

99.99 99.88 99.93

Real Estate Service Service

Shareholding/Command by director Shareholding/Command by director Shareholding/Command by director

Transaction with related companies % " $ $ $ ( ! $ $ " $ $ @( (Â ( ; " @ $ $ " $ (! $ $ statements for otherpurposes may be limited due to the difference business of those consolidated companies.

# *

# 3.1 Income and Expenses Recognition (3(3 J $ # - $ # & $ $ have been transferred to the buyer that the Company retains neither continuing managerial involvement nor effective control over the condominium sold. The recognized amount and cost incurred in respect of the transaction can be measured reliably. 3.1.2 Rental and services income relating to land, building and equipment are recognized on an accrual basis. 3.1.3 Revenue from services are recognized as income when the services are rendered. 3.1.4 Other income and expenses are recognized on an accrual basis. 3.1.5 Cost of land and house, condominiums and properties sold are recognized as cost of sales based on proportion of land and house, and condominium sold. 3.2 Cash and cash equivalents ‡ + ) $ ' $ $ $ " & ) and investment in bills of exchange which are due within 3 months and without restriction on withdrawal. 3.3 Current investment Investments in securities for trading are stated at their fair value. Changes in value of investment are recorded as unrealized gain (loss) on revaluation of investments in statements of income.

136

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3.4

3.5 3.6

( 3.8

Allowance for doubtful accounts The Company provides the allowance for doubtful accounts equal to the estimated loss of installment receivables by considering each receivable that is past due more than six month periods and based on income recognition standards. Land and project cost @ $ $ K $ $ " $ - " ( ! K cost consists of : cost of land,development cost, construction cost, miscellaneous expenses of the project and interest expenses. / " $ # - K " $ $( Inventories — $ $ ) $ $ $ " # $ - " ( $ % % ‚‡ ‡?ƒ $ - " ( @ #% % $ $ $ $ ' $( % " $ $ $ ‚ ƒ( Assets for rent Land are valued at cost, building and equipment which were not reappraised, are stated at cost less accumulated depreciation. ! $ $ # % $ † Number of years ? " $ # $ & # ? $ $ ' Computer

(:

) $ ' % ž$ % @ $ $ ( % U $ # $ ' $

$ $ ( ! $ $ # % $ † Number of years U $ # ? $ $ ' Computer and RMS System Computer and RMS System

Y 3Y 5

Y 3Y 5 5

3.10 Impairment of Assets The Company has considered the impairment of land, building and equipment, investing capital, land and cost of undevelop ment projects and intangible assets whenever events or changes indicate that the carrying amount of assets exceeds its " ( " # - $ ( ! loss whenever there is no longer impairment or reduction in impairment. J " # - ) # ( ! " $ # # + ) ( (33 * $ # ! $ $ # $ " ' the lease assets at the inception of the agreement. Interest expenses are recorded to each period over the term of agree " $ $ # " " $ # $ # $( 3.12 Income tax The Company and subsidiaries recorded corporate income tax to be paid as expenses in each period based on the condition $ " $ J $ ( / $ # - $ $ K " ZYY $ # - $ # K ZYY $ ( 3.13 Accounting estimates #

$

# ' $ # & $

$ $ $ thereto. Consequent actual results may differ from these estimates. ! $ & # $K / $ " $ " " $ $ $ $ " # ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

137

3.14

3.15

3.16

(3

ment at the balance sheet date. It is propable that the estimates may have uncertain since the project' s nature is to be long term (note 3.17.2). Other estimates are further described in the corresponding disclosures. Provisions The Company recognizes a provision when an entity has a present legal or constructive obligation as a result of a past event. " " + " " ' $ " # $ " " $ " # ( / $ ' $ ) / $ " reimbursed when it is virtually certain that reimbursement will be received if the Company settles the obligation. The amount recognized should not exceed the amount of the provision. Earnings per share % U # $ $ " $ $ # ‚ ƒ " # $ # " ordinary shares issued during the year after deduction with treasury stock. % ; $ # $ " $ $ # ‚ ƒ " # $ # number of ordinary shares issued during the year and the weighted average number of ordinary shares to be issued for conversion of all diluted potential ordinary shares (warrants) into ordinary shares. Treasury stock The Company records treasury stock at cost. $ $ $ " 3.17.1 Provident fund ! " $ $ $ $ $ $ " ( ! $� $ entities which are administered by the outsider fund manager. The Company and employees made contribution into such provident fund. The Company's contribution to the provident fund were recorded as expenses in statements of income in the period in which they are incurred. (3 (Z " ! $ " $ $ " ) " $ ! @ " @ ( ! " " # - $ " $ actuarial basis using Projected Unit Credit Method. The calculation was made by utilizing various assumptions about future events. The Company is responsible for the selection of appropriate assumptions. The assumptions used in $ # $ " $ $ ) ) $ employee turnover. Any changes in these assumptions will impact the net periodic cost recorded for employee " ( ? " ) $ " $ $ $ ) $ " $ $ + / $ " ' $ " ( $ # $ ) and subsidiary companies consider the market yield at the balance sheet date based on Thai government bonds with

$ $ " " # ( The principal actuarial assumptions used were as follows;

Discount rate Employee turnover Mortality

138

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

$ $ $ 2010 4.7 per annum Age-related scale and kind of employees and dialy staff According to Thailand TMO97 male and female tables

3.18

New Accounting Standards Issuance ! $ *

# $ 3 ¾Z ) Y¾Z # ¾Z ) *

# $ $ J $ ZYY: ) J # $ $ J $ ZYY: ) $ J # $ $ $ # J - H ZX) ZY3Y $ ; " 3 ) ZY3Y # Z

# $ $ ) # $ $ ) $ # $ $ ( ! Z $ $ # $ " # $ " $

# $ $ ) $ $ # $ ) # ) $ $ $ $ $ $ (3 (3 *

# $ $ ¾ # $ $ $ $ $

*

# $ $ ¾ # $ $

& $ J $ ZYY: !* 3 J $ ZYY: !* Z J $ ZYY: !* J $ ZYY: !* J $ ZYY: !* 3Y J $ ZYY: !* 33 J $ ZYY: !* 3X J $ ZYY: !* 3 J $ ZYY: !* 3 J $ ZYY: !* ZY J $ ZYY: !* Z3 J $ ZYY: !* Z J $ ZYY: !* Z J $ ZYY: !* Z J $ ZYY: !* Z J $ ZYY: !* 3 J $ ZYY: !* J $ ZYY: !* J $ ZYY: !* X J $ ZYY: !* J $ ZYY: !* J $ ZYY: !* Y J $ ZYY: ! J J $ ZYY: ! J J $ ZYY:

$

*

# ) # *

# $ * J # $ ) $ ' @ J *

# $ ; * !

# # / # J U # J $ ; $ $ $ * > # J # * ) # @ " $ # * # " * U " % * $ $ ; $ ?

H ZX) ZY3Y 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY3 3) ZY3 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33 3) ZY33

! # $

$ $ $ " !* 33 J $ ZYY: ) !* ZY J $ ZYY: ) !* 3 J $ ZYY: ) ! J J $ ZYY: $ ! J J $ ZYY: Q " ( *

# $ $ ) $ # $ $ ) # $

$ $ ( ! $ $ $ " # #

$ (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

139

(3 (Z Â

# $ $ $ # $ $ $

*

# $ $ žÂ‡ # $ $

TAS 12 !* 3: !* ZX !* Z: !‡J Z !‡J X TIFRS 15

Income Taxes U *

# $ J # " J U ‡ J # + U $ / $ H J Construction Contract

January 1, 2013 Â’ 3) ZY33 Â’ 3) ZY33 Â’ 3) ZY33 Â’ 3) ZY33 Â’ 3) ZY33 January 1, 2011

4.

Changes in accounting policy of revenues from sales of real estate business income recognition ? Â’ 3) ZY3Y) # $

# # # # - " $ # & " $ # & $ $ " $ " $ (3(3) $K " # # $ # ZY3Y $ $K $ ZYY: " #

#

# ( ‡ # ) $ $ $ $ $ ; " 3) ZY3Y $ $ $ # $ " U 3 (YY ( ! ZYY: $ $ $ $ # $ " † U % $ $ ‚U ƒ ; " 3) ZYY: J $ >

! $

" % — " $ @ $ $ K $ $ *$ $ — $ $ #

! $

" % — " $ @ $ $ K $ $ *$ $ — $ $ #

140

$

!* Z:) !‡J Z) !‡J X $ ! ‡J 3€ Q " ( ! !* 3Z $ !* ZX)

$ # $ " ( ZY3Y) $ " $ $

# $ $ (3: U "

$ (

€ Z) (YY Z) Y) €€( Z):YZ) Z)X:Z( X Z)YY )YXZ)Z: (€ €Z:) Z )3XZ(€X )3X )ZZ:)X€ (€

€€ )€ (YY % Z):Y3) )Z 3( 3 Z)Y ) 3Z)€Y ( X €€ )X €)YX ( Z )3 )Z ) € (3X

‚Z )ZYY(YYƒ ‚ Z) Y) €€( ƒ ‚3)YZ:) €3(Y€ƒ )Z€Y)ZY:(Z ‚Z ) 3 ):Y€( Xƒ ‚3X)::€) Y ( Zƒ

U % $ ‚U ƒ ; " 3) ZYY: J $ >

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

3 ) (YY Z) Y) €€( Z) X):X3)€3€( 3)::€)Y: )X 3(€ €Z ) Z )3XZ(€X )Y €)Z X)ZZ ( €

:)€ (YY % Z) €): Z)YX ( Z)Y :) ) €Y( €€€)X €)YX ( Z )YX )Z Y) ZY(:

‚Z )ZYY(YYƒ ‚ Z) Y) €€( ƒ ‚3)YZ:) €3(Y€ƒ )Z€Y)ZY:(Z ‚Z ) 3 ):Y€( Xƒ ‚3X)::€) Y ( Zƒ

Statement of Income - Condolidated (Baht) For the years ended December 31, 2009 Previous Restated Variance

Sales Cost of sales Administrative expenses  Earnings per share

8,267,992,930.08 5,678,206,984.03 545,558,636.03 3) € ) Z)€ 3( 0.93

Previous

‚

Sales Cost of sales Administrative expenses  Earnings per share

8,730,114,253.33 6,001,773,613.47 540,903,573.82 3)€Y3):€Z)Z: ( X 1.02

462,121,323.25 323,566,629.44 (4,655,062.21) 3 )ZY:) €X(YZ 0.09

Statement of Income - Separated (Baht) For the years ended December 31, 2009 Restated Variance

8,255,225,728.35 5,746,892,276.09 306,685,821.81 3) :3)YX ) X ( 3 0.95

8,717,347,051.60 6,070,458,905.53 302,030,759.60 3)€ )Z )€Z ( 1.05

462,121,323.25 323,566,629.44 (4,655,062.21) 3 )ZY:) €X(YZ 0.10

# # % & K % " K % & ' J * $ (3 $ (3 (Z ) $ " $ $

# $ $ ( 3: ‘ U ‘ "

$ ; " 3) ZY3Y( ‡ #

# ) $ " $ # - $ " " $K # beginning retained earnings of the accounting period for the year 2010 to be conform to the requirement of that accounting standards. ! $ $ $ # $

# † Balance sheet - Consolidated (Baht) as at January 1, 2010 Previous Restated Variance Non-current liabilities Earnings per share

308,290,550.19 3,147,233,854.16

348,008,551.19 3,107,515,853.16

39,718,001.00 (39,718,001.00)

Balance sheet - Separated (Baht) as at January 1, 2010 Previous Restated Variance Non-current liabilities Earnings per share

304,360,854.43 3,068,240,420.93

297,999,632.43 3,074,601,642.93

(6,361,222.00) 6,361,222.00

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

141

6.

Current investment As at December 31, 2010 and 2009 are as follows : $ $ ‚U ƒ 2010 2009 Securities for trading - open end fund in debt and equity securities of commercial bank Total

7.

-

327,045,165.02 327,045,165.02

-

‚; " 31, 2010 : 88.03% December 31, 2009 : 89.76%

K ƒ Less Transferred contract value U $ contract value

‚U ƒ 2010 2009

Y) Y€)3 Z)€ZZ(::

) €) ) 3X(X: Y) €)Y3X)€ZZ(::

) €):X ) 3X(X:

‚ZX) Y )X Y) 3X(::ƒ

‚Z )3XY)Y ) € (X:ƒ ‚ZX)Z )€3 ) 3X(::ƒ

‚Z )3 )€ Z) € (X:ƒ

14,500,501,706.00

10,675,425,962.00

14,500,501,706.00

10,628,425,962.00

101,058,055.59

148,494,686.13

88,893,055.59

‚ Y)€Y )€3 (€:ƒ ‚ Y)YYY)YYY(YYƒ 554,537.00

‚Z )3 )Y:€(3 ƒ ‚3ZY)YYY)YYY(YYƒ 310,591.00

‚3 )€Y )€3 (€:ƒ ‚ Y)YYY)YYY(YYƒ 389,537.00

Accrued installment 148,606,686.13 receivable Less Unrealized installment income ‚Z )3 )Y:€(3 ƒ Transfer to related company receivable ‚3ZY)YYY)YYY(YYƒ Trade accounts receivable - net 422,591.00

* ; " 3) ZY3Y $ ZYY: $

" $ " # # †%

327,045,165.02 327,045,165.02

Trade accounts receivable-net at December 31, 2010 and 2009 are as follows :Consolidated ‚U ƒ 2010 2009

‚U ƒ 2010 2009

$ $ ‚U ƒ ‚U ƒ 2010 2009 2010 2009 ? $ 3 % Z€)Y 3) Y( € ZX)Z €)ZXX(€: Z€)Y 3) Y( € 3 )Z €)ZXX(€: ? $ % X Z) )XYY(YY 3) X)YYY(YY Z) )XYY(YY 3) X)YYY(YY ? $ % 3Z X ) YY(YY Z) 3€)Z :(YY X ) YY(YY Z) 3€)Z :(YY ? $ 3Z 3Z )Z3€( X33)€YY(YY 33)Z3€( X)€YY(YY Total 28,606,686.13 31,058,055.59 28,494,686.13 18,893,055.59 Less Unrealized installment Trade accounts receivable - net

142

‚Z )3 )Y:€(3 ƒ 422,591.00

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

‚ Y)€Y )€3 (€:ƒ 554,537.00

‚Z )3 )Y:€(3 ƒ 310,591.00

‚3 )€Y )€3 (€:ƒ 389,537.00

8.

Land and cost of project under construction, and land and cost of project held for development Land and cost of project under construction as at December 31, 2010 and 2009 are as follows :-

2009

$ $ U Increase (Decrease)

2010

Land Cost of construction and design Other expenses Interest expenses Total

2,805,104,092.56 1,330,208,341.31 65,471,208.79 279,210,026.53 4,479,993,669.19

2,240,383,796.79 6,812,475,654.97 135,294,528.89 78,744,852.13 9,266,898,832.78

5,045,487,889.35 8,142,683,996.28 200,765,737.68 357,954,878.66 13,746,892,501.97

Less Cost of sales - accumulated Transfer to loss on impairment Transfer to inventories ! ) Total transfer Total

4,031,182.23 396,214,314.22 594,662,947.68 3) Y)YYY(YY 1,036,488,444.13 3,443,505,225.06

1,514,125,335.14 (4,380,711.81) 5,794,471,293.92 % 7,304,215,917.25 1,962,682,915.53

1,518,156,517.37 391,833,602.41 6,389,134,241.60 3) Y)YYY(YY 8,340,704,361.38 5,406,188,140.59

Less Land and cost of project under construction Land and cost of project held for development - net

2,901,843,241.81

1,581,568,112.83

4,483,411,354.64

541,661,983.25

381,114,802.70

922,776,785.95

Land Cost of construction and design Other expenses Interest expenses Total

U 2009 Increase (Decrease) 2010 2,661,547,247.13 2,223,119,342.31 4,884,666,589.44 1,326,657,092.13 6,796,601,427.51 8,123,258,519.64 65,441,408.79 135,294,528.89 200,735,937.68 279,210,026.53 78,744,852.13 357,954,878.66 4,332,855,774.58 9,233,760,150.84 13,566,615,925.42

Less Cost of sales - accumulated Transfer to loss on impairment Transfer to inventories ! ) Total transfer Total

4,031,182.23 396,214,314.22 594,662,947.68 3) Y)YYY(YY 1,036,488,444.13 3,296,367,330.45

1,514,125,335.14 (4,380,711.81) 5,741,130,349.04 % 7,250,874,972.37 1,982,885,178.47

1,518,156,517.37 391,833,602.41 6,335,793,296.72 3) Y)YYY(YY 8,287,363,416.50 5,279,252,508.92

Less Land and cost of project under construction Land and cost of project held for development - net

2,875,932,064.78

1,601,856,525.77

4,477,788,590.55

420,435,265.67

381,028,652.70

801,463,918.37

Land and cost of project held for development as at December 31, 2010 and 2009 are as follows : $ $ U 2009 Increase (Decrease) 2010 Land 854,669,054.76 376,734,090.89 1,231,403,145.65 Cost of construction and design 80,474,161.96 80,474,161.96 Other expenses 2,733,080.75 2,733,080.75 Total 937,876,297.47 376,734,090.89 1,314,610,388.36

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

143

2009

Less Provision for impairment of assets Land and cost of project held for development - net

396,214,314.22 541,661,983.25

Land Cost of construction and design Other expenses Total Less Inter-company transaction Land and cost of project held for development - net

$ $ ‚U ƒ Increase (Decrease) (4,380,711.81) 381,114,802.70

2010

391,833,602.41 922,776,785.95

2009

‚U ƒ Increase (Decrease)

2010

733,583,007.85 80,363,291.29 2,703,280.75 816,649,579.89 396,214,314.22 420,435,265.67

376,647,940.89 376,647,940.89 (4,380,711.81) 381,028,652.70

1,110,230,948.74 80,363,291.29 2,703,280.75 1,193,297,520.78 391,833,602.41 801,463,918.37

- As at December 31, 2010 and 2009, the Company transferred land and cost of project under development with one year construction $ " # $ U ) ( 3 ‚ † U ) ( : ƒ $ U Z):Y3( ‚ † U Z) €(: ƒ) ( % * ; " 3) ZYY:) $ $ $ $ $ U ZY $ $ K $ $ U ( ) U Z ( $ $ $ Court had ordered for execution which the Company recognized loss on such provision in the 2009 statements of income in whole ( * ) ZY3Y) ? $ $ $ # # # $ ! * H # and in thethird quarter of 2010, the Company has already redeemed and transferred such land. The management has estimated K " # $ $ + " $ $ K ( ! valuation of project from such estimates by using such method is exceeded the carrying value of assets, therefore, the Company has reversed provision for devaluation in whole amount. At present, such land is under the prosecution to expel, the Company then recorded as land and cost of project under development. - As at December 31, 2010 and 2009, the remaining project in progress are nine projects (Separate : eight projects) and thirteen projects (Separate : ten projects), respectively. - As at December 31, 2009, the Company has made covenant with PORNSANTI Company Limited, a subsidiary to sell its land in the U X( Y $ K ( $ $ U X(Z ( ! $ $ $ $ U 3(YY $ $ " ( - As at December 31, 2010 and 2009, land and cost of project under construction,and land and cost of project held for develop $ U )XZ (X $ U Z)€YX(: ) # # $ # $ $ % $ ( 3 ) $ " & $ $ (3X $ 3 (

9.

Inventories As at December 31, 2010 and 2009 are as follows :-

$ $ ‚U ƒ ‚U ƒ 2010 2009 2010 2009 Condominium 2,815,096,452.41 2,052,713,784.20 2,815,096,452.41 2,042,507,449.93 Supplies 29,322.72 29,322.72 Total 2,815,125,775.13 2,052,743,106.92 2,815,096,452.41 2,042,507,449.93

Less Provision for devaluation of goods Grand total

144

(3,162,599.16) 2,811,963,175.97

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

(4,430,599.16) 2,048,312,507.76

(3,162,599.16) 2,811,933,853.25

(3,172,599.16) 2,039,334,850.77

- As at December 31, 2010 and 2009, the Company has transferred inventories amount of Baht 43.83 millilon and Baht 49.87 million to be assets for lease. - As at December 31, 2010, inventories amount of Baht 135.07 million were mortgaged as collateral against overdrafts and short - term $ 3 $ # % $ 3X $ 3 ( - As at December 31, 2010 and 2009, the Company recorded the devaluation of inventories in the form of condominium total amount of Baht 3.16 million and Baht 4.43 million (Separate : Baht 3.16 million and Baht 3.17 million), respectively.

10. Transaction with related companies Company

Buy of land from the Company

Base on agreement which close to the independent appraiser's appraisal value

2. LUMPINI PROPERTY MANAGEMENT CO., LTD.

Selling management and assets for lease management services

Base on agreement

3. GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates)

Construction management services and sales, dealer business derived from the Company's subsidiaries

Collect service fee base on agreement

4. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD.

Construction management services

Collect service fee base on agreement

10.1 Receivables - related parties

Pricing policy

1. PORNSANTI CO., LTD.

GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates) Total

Description

LUMPINI PROPERTY MANAGEMENT CO., LTD. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. PORNSANTI CO., LTD. GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates) Total

$ $ U

2009

Increase

Decrease

2010

1,295,375.74 1,295,375.74

6,629,145.97 6,629,145.97

6,750,606.83 6,750,606.83

1,173,914.88 1,173,914.88

U

2009

Increase

Decrease

2010

-

6,159,328.72

6,139,987.27

19,341.45

70,000,000.00

70,440.00 60,759,128.00

70,440.00 10,019,128.00

120,740,000.00

162.64 70,000,162.64

218,704.21 67,207,600.93

218,866.85 16,448,422.12

120,759,341.45

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

145

In 2009, the Company has sold its land to PORNSANTI CO., LTD. for using as its project in the amount of Baht 126.20 million by receiving the payment amount of Baht 66.20 million, the remaining is Baht 60.00 million. In 2010, the Company made memorandum attached to agreement to buy and to sell of land by returning deposit amount of Baht 60.00 million to Pornsanti Co., Ltd. for using as working capital in its operation.

10.2 Investment in subsidiaries and associates Percentage of ownership

Subsidiaries PORNSANTI CO., LTD.

99.99

Less Provision for impairment of investment Net LUMPINI PROPERTY MANAGEMENT CO., LTD. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD Associates : GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates) Total

Dividend (Baht)

-

318,037,237.15

-

(111,425,191.36) 206,612,045.79

-

99.88

-

998,800.00

93,887,200.00

99.93

-

999,300.00

31,977,600.00

20.00

140,590,335.40 140,590,335.40

121,721,938.32 330,332,084.11

6,840,000.00 132,704,800.00

Percentage of ownership

Subsidiaries PORNSANTI CO., LTD. Less Provision for impairment of investment Net LUMPINI PROPERTY MANAGEMENT CO., LTD. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. Associates GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates) Tota

$ $ statements (Baht) statements (Baht) Equity Method Cost Method As at December 31, 2010

99.99

$ $ statements (Baht) statements (Baht) Equity Method Cost Method As at December 31, 2009

-

Dividend (Baht)

-

318,037,237.15

-

-

(111,425,191.36) 206,612,045.79

-

99.88

-

998,800.00

29,964,000.00

99.93

-

999,300.00

49,965,000.00

20.00

118,311,873.96 118,311,873.96

121,721,938.32 330,332,084.11

79,929,000.00

! " # U Z:)33 ) X3( ) &

$ " # " $ $ " $ ( In 2009, the Company has made payment for increase share capital of Grand Unity Development Co., Ltd. which called for payment at Baht 4.00 per share, total amount of Baht 44.00 million.

146

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

U 2009 Increase Decrease

PORNSANTI CO., LTD. 1,002,700.00 LUMPINI PROPERTY MANAGEMENT CO., LTD. 7,735,106.35 LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. 7,387,105.00 Total 16,124,911.35

128,550.00

128,550.00

1,002,700.00

243,988,243.39

236,481,636.76

15,241,712.98

124,391,456.57 368,508,249.96

118,472,394.57 355,082,581.33

13,306,167.00 29,550,579.98

10.4 Accrued dividend income $ $ U U 2010 2009 2010 2009 LUMPINI PROPERTY MANAGEMENT CO., LTD. LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD Total

2010

-

-

9,988,000.00

-

-

-

10,992,300.00 20,980,300.00

-

3Y( ! $ $ $ U U 2010 2009 2010 2009 10.5.1 Revenue from rental and service business LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. LUMPINI PROPERTY MANAGEMENT CO., LTD. PORNSANTI CO., LTD. Total

-

-

60,000.00

1,077,000.00

-

-

-

-

120,000.00 18,000.00 198,000.00

219,000.00 18,000.00 1,314,000.00

10.5.2 Cost of sales LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. LUMPINI PROPERTY MANAGEMENT CO., LTD. Total

-

-

124,391,456.57

62,563,787.23

-

-

16,392,228.03 140,783,684.60

15,422,556.85 77,986,344.08

10.5.3 Cost of rental and service business LUMPINI PROPERTY MANAGEMENT CO., LTD. Total

-

-

7,345,026.85 7,345,026.85

9,293,441.28 9,293,441.28

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

147

$ $ U U 2010 2009 2010 2009

10.5.4 Selling expenses LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. PORNSANTI CO., LTD. Total

-

-

220,250,988.51 2,220,000.00 222,470,988.51

147,127,133.98 147,127,133.98

10.5.5 Administrative expenses LUMPINI PROPERTY MANAGEMENT CO., LTD. Total

-

-

3,861,996.15 3,861,996.15

3,088,484.24 3,088,484.24

10.5.6 Interest expenses LUMPINI PROJECT MANAGEMENT SERVICES CO., LTD. LUMPINI PROPERTY MANAGEMENT CO., LTD. Total

-

-

-

35,433.73

-

-

6,549.32 6,549.32

12,456.99 47,890.72

10.5.7 Management business income GRAND UNITY DEVELOPMENT CO., LTD. AND SUBSIDIARIES GRAND U LIVING CO., LTD. (associates) Total

5,558,777.18 5,558,777.18

4,869,709.68 4,869,709.68

-

-

11. Assets for rent - net As at December 31, 2010 and 2009 are as follows : $ $ U 2009 Increase Decrease Transfer in (out)-net

2010

Cost Land - cost Building - cost ? $ and equipments Total Accumulated depreciation Building - cost ? $ and equipments Total Assets for rent-net

153,044,100.91 601,298,830.24

-

(63,922,189.70) (224,759,121.92)

9,135,093.17 34,693,478.67

98,257,004.38 411,233,186.99

39,217,356.52 793,560,287.67

767,642.14 767,642.14

(23,688,299.14) (312,369,610.76)

(25,784.54) 43,802,787.30

16,270,914.98 525,761,106.35

94,390,827.76

11,277,284.52

(18,357,649.79)

-

87,310,462.49

13,540,908.32 107,931,736.08 685,628,551.59

1,093,115.68 12,370,400.20

(3,123,030.27) (21,480,680.06)

(10,953.57) (10,953.57)

11,500,040.16 98,810,502.65 426,950,603.70

Depreciation as at December 31, 2010 Depreciation as at December 31, 2009

148

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

12,370,400.20 16,215,601.53

Cost Land - cost Building - cost ? $ $ ' Total *

$ $ Building - cost ? $ $ ' Total * %

ZYY:

‚U ƒ ; ! ‚ ƒ%

ZY3Y

142,045,479.11 498,221,037.74

-

(63,922,189.70) (224,759,121.92)

9,135,093.17 34,693,478.67

87,258,382.58 308,155,394.49

35,183,605.55 675,450,122.40

767,642.14 767,642.14

(23,688,299.14) (312,369,610.76)

(25,784.54) 43,802,787.30

12,237,164.01 407,650,941.08

66,579,046.16

8,702,566.57

(18,357,649.79)

-

56,923,962.94

9,507,191.35 76,086,237.51 599,363,884.89

1,093,115.68 9,795,682.25

(3,123,030.27) (21,480,680.06)

(10,953.57) (10,953.57)

7,466,323.19 64,390,286.13 343,260,654.95

; ; " 3) ZY3Y ; ; " 3) ZYY:

9,795,682.25 13,461,303.74

* ; " 3) ZY3Y $ ZYY:) $ U ( $ U :( ) " ( ' ZY3Y) $ $ $ " $ # % $ & > * & $ K $ U Z€X(:3 U Z Y ) $ / $ $ U 3X( ( * ; " 3) ZY3Y $ ZYY:) $ $ " $ # U ( $ U ( ) ‚ † U XZ( Z $ U Z3(:X ) ƒ # # $ # $ $ % " & $ $ 3 ) 3X $ 3 (

* ; " 3) ZY3Y $ ZYY:) $ $) " " # $

# U (€ $ U ( ‚ † U (€ $ U ( Y ƒ) (

12. Property, plants and equipments - net * ; " 3) ZY3Y $ ZYY: †% $ $ ‚U ƒ ZYY: ; ! ‚ ƒ%

ZY3Y

Cost

Land and " $ # ? $ ? ' JH > Tools ? $ $ $ $ Total

) Z ):: (YY 3 )Z Y)3 3(Z 46,543,097.24 Z€) )XX ( Z)€ 3) :( Z Z ): X)YZY(YY 2,881,892.50

% 3Y)X€ ) X:(:Y 4,011,320.97 Z)YY )€ 3( € X)XZZ) :€(YY 3X)Y3€)YYY(YY 838,868.00

‚Z)X ) X (€3ƒ % (4,800,860.65) % ‚ )3€:)YX:(X ƒ ‚3Y)X Y)YYY(YYƒ (109,898.00)

% % 1,086,388.02 €€ )ZY€(XX ) X3(€ % -

3) )3Z ( : Z ):Z )X€3(3 46,839,945.58 Z )Y3 ) €€( €)Y3 ) X( Z Y)Z 3)YZY(YY 3,610,862.50

XYY) :X(ZX

Y)X (YY

%

‚3)Y 3) (ZXƒ

%

)Z 3(3Z 192,394,779.55

€):Y (Y 41,470,575.36

% (22,434,692.79)

‚€€ )ZY€(XXƒ 12,716.29

3)YZZ): (€Y 211,443,378.41

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

149

Accumulated depreciation Land and building 7,656,190.28 ? $ )€33)YX ( ? ' 33,231,663.99 JH 3X) 3Y) €(3 Computer 33,412,637.24 > 3 )€ Z)3 ( ! 3)X X)3 (Z€ Tota 111,890,727.12 Net 80,504,052.43

761,993.80 Z)ZX ) €3(3 2,491,636.84 )X Y)€Y (:Z 4,141,236.31 €):€Y)Z (:Y ZZ) X:( 19,676,339.79

; ; " 3) ZY3Y ; ; " 3) ZYY:

ZYY: Land and building 31,744,128.49 ? $ 3Z):€X) 3:(Z ? ' €) Y ):ZZ( Y JH ZZ) ) € (3 Computer 21,136,531.42 > 3€)YZ3)YZY(YY ? $ decoration 600,796.26 $ development 532,722.43 Total 140,234,397.41 Accumulated depreciation Land and building 4,971,325.77 ? $ ) )YX ( 3 ? ' 24,740,838.29 JH 3X)€3 ) 3Z( X Computer 15,840,292.30 > X) 3 )Y Y(3Y Total 73,272,403.63 Net 66,961,993.78

$ $ ‚U ƒ ; ! ‚ ƒ%

ZYY:

) ) : (:Z ) X)XY (ZY X Y) Y (:3 5,081,788.39 3X)Y3€)YYY(YY

% (4,368.12) % 4,619.01 % % 250.89

‚U ƒ ; ! ‚ ƒ% % ‚ )ZY ) ( ƒ % (3,168,327.64) ‚ )3X€)YYY(YYƒ

5,733,319.57 X) :) 3€(XX 32,230,367.08 ZY) €3) :(YX 33,429,751.99 3Y) )€Z:(Y 3):: )X €(Y: 111,061,367.52 100,382,010.89 19,676,339.79 3 ): X):Z3(YZ

ZY3Y

% 3)Y::) €X(Z Z:)ZYX( € 7,761.53 %

31,744,128.49 Z3) Y) 3 (ZY )Y Z)€: (YY Z )€Y ) Z( : 23,057,753.70 Z ) 3)YZY(YY

480,637.00

-

(1,081,433.26)

-

538,922.92 34,477,155.34

(9,540,715.51)

(429,206.85) 25,784.54

642,438.50 165,196,621.78

761,993.80 3)X X) Y(X3 1,720,290.58 Z) ) YX(€€ 2,449,785.07 )Z:3) €X(3X 13,744,172.77

% (1,930,094.37) % (3,142,068.38) ‚Z):3 )€ (3 ƒ (7,985,696.92)

% 6,334.56 % 4,619.01 % 10,953.57

5,733,319.57 X)3 Y):Y (:Z 24,537,369.06 3:) :3)Z3:( 3 15,152,628.00 )Y:X) :Z(Y: 79,041,833.05 86,154,788.73

3 ) )3 Z( 3Z)YZ )XX (YY

; ; " 3) ZY3Y ; ; " 3) ZYY:

150

(2,684,864.51) % (3,488,565.63) % (4,128,740.57) ‚3Y)Y: ):YX(€ ƒ ‚3Y:) (YYƒ (20,505,950.28)

ZY3Y

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

* ; " 3) ZY3Y)

$ # U $ $ � # " $ ( XžZY3Y $ ; " Z ) ZY3Y) $

" $ # " $( " $ # $ $( * ; " 3) ZY3Y $ ZYY:) $ $ " $ # U Y(3 $ U Z ( 3 ) # # $ # $ $ % $ #% " & $ $ 3 ) 3X $ 3 ( * ; " 3) ZY3Y $ ZYY:) / $ $ $) " " # $ # U X€(YZ $ U € (:3 ‚ † U (€3 $ U X(3X ƒ) (

‚ @ * " K … K J * ; " 3) ZY3Y $ ZYY: †%

Bank overdrafts % Total

$ $ ‚U ƒ 2010 2009 136,445,851.99 30,992,375.68 750,000,000.00 254,000,000.00 886,445,851.99 284,992,375.68

‚U ƒ 2010 2009 136,445,851.99 30,992,375.68 750,000,000.00 254,000,000.00 886,445,851.99 284,992,375.68

? $ $ % # $ " $ $ K $ $ ) $ :) $ $ " $ # $ 33) $ $ % " $ # $ 3Z $ 3 (

‚ % K #… ' * ; " 3) ZY3Y $ ZYY: † $ $ ‚U ƒ 2010 2009

long-term loans 473,000,000.00 @ " $ lease agreemen 4,413,219.89 3,501,572.81 Total 4,413,219.89 476,501,572.81 ‚ ( ' J # … ; $ $ † $ $ ‚U ƒ 2010 2009 > Z:):X€)YYY(YY Z )X Y)YYY(YY 3)X3€)Y (3Y 3)X3€)Y (3Y Total 31,580,047.10 26,245,047.10 @ *

$ $ 3Y) Y:)ZZ:(X 3 )X 3) 3 ( 3  " & ZY) Y) 3 ( Z 33)€X )ZZ (Z:

‚U ƒ 2010 2009 -

473,000,000.00

4,215,396.69 4,215,396.69

2,611,489.03 475,611,489.03

‚U ƒ 2010 2009 Z )€X€)YYY(YY 3 ) 3€)YYY(YY : Z) (3Y : Z) (3Y 28,497,447.10 15,647,447.10 )3 Z)3::(3 X) Z3) X(€€ ZY) X€)Z (: ):Z€)X3Y(€€

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

151

! " $ $ # †

$ $ ‚U ƒ 2010 2009 5,226,714.16 3,872,223.41 5,816,647.98 3,671,996.32 6,264,762.00 394,643.82 17,308,124.14 7,938,863.55

‚U ƒ 2010 2009 4,993,951.08 2,915,970.83 5,510,031.99 3,270,554.16 6,208,078.75 200,023.66 16,712,061.82 6,386,548.65

Less Future interest to be paid

(2,300,509.41)

(620,577.36)

(2,232,314.43)

Present value of liabilities under #

3€)YY )X3 (

) 3 )Z X(3:

3 ) :) ( :

€):YY) €(Y

@ " $ # / $ # †

Within 1 year Over 1 year less than 3 years Over 3 years less than 5 years

$ $ ‚U ƒ 2010 2009 @ " $ # 15,007,614.73 7,318,286.19 @ @ " $ # ‚ ) 3 )Z3:( :ƒ ‚ )€Y3)€ Z( 3ƒ

@ " $ # %

16. Long-term loans

@ Less Current portion of #% Net

3Y)€: ) : (

) 3X) 3 (

(486,213.58)

‚U ƒ 2010 2009 14,479,747.39 5,900,335.07 ‚ )Z3€) :X(X:ƒ

‚Z)X33) :(Y ƒ

3Y)ZX ) €Y( Y

)Z ) X(Y

$ $ ‚U ƒ 2010 2009 XZ)X€Y)YYY(YY Z)YYY)YYY(YY

‚U ƒ 2010 2009 XZ)X€Y)YYY(YY Z)YYY)YYY(YY

% 862,650,000.00

% 862,650,000.00

‚ )YYY)YYY(YYƒ 259,000,000.00

‚ )YYY)YYY(YYƒ 259,000,000.00

* ; " 3) ZY3Y $ ZYY:) $ U XZ(Z€ $ U Z(YY ) $ # $ & (! " $ # K $ ( @ #% # $ " $ $ K $ $ ) $ :) $ $ " $ # $ 33) $ $ $ " $ # $ 3Z $ 3 ( 17. Pledged securities * ; " 3) ZY3Y $ ZYY:) $ $ K $ ) $ $ $ $ $ U )XZ (X $ U Z)€YX(: $ ) $ U 3 €(Y $ :) $ % " $ # $ U ( $ U ( ) ‚ † U XZ( Z $ U Z3(:X ƒ $ 33 $ $ % " $ # $ U Y(3 $ U Z ( 3 ) $ 3Z) # # $ # " & $ U X)€ €(YY $ note 13 and 16.

152

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

18. Contingent liabilities and obligation

18.1 As at December 31, 2010 and 2009, the Company and subsidiaries have contingent liabilities from bank issuance of letter of guarantee as follows : 18.1.1 Letter of guarantee issued to Revenue Department amounting to Baht 17.21 million from the Company and its subsidiaries were assessed taxation in previous years amounting to Baht 27.57 million (Separate : Baht 7.41 million). The result of appeal to the Board of Appeal of Revenue Department on November 13, 2003 that granted to reduce penalties including surcharges from the tax assessment for the amount of Baht 17.21 million (Separate : Baht 2.62 million). But the Company $ $ " $ ! / $ the Company to win the case. Later, the Revenue Department appealed this case to the Supreme Court which $ ! / ? " :) ZYY: $ $ / " $ # ( * ) $ J ; $ and the case is awaiting for the sentence. 18.1.2 Letter of guarantee issued by bank to government agency and state enterprise amounting to Baht 4.39 million and Baht 5.85 million (Separate : Baht 1.27 million and Baht 2.72 million), respectively. 18.1.3 Subsidiary has guaranteed loan to other person with bank amounting to Baht 1.01 million. 18.1.4 The Company was sued by its contractor for the breach of contract and claim for compensation amounting to Baht 46.67 million. The Company has recorded its construction cost in amounting to Baht 30.45 million and also made counter - claim to contractor for compensation in amounting to Baht 261.48 million. As at December 31, 2003, the $ $ $ $ # U Z:( € $ the contractor paid to the Company amounting to Baht 3.00 million. The net payment was Baht 26.85 million together with interest charge at the rate of 7.5 % per annum amounting to Baht 12.36 million totally Baht 39.21 million. ! $

U ( X ) $ $ $ the Court's order. At present, the case is still pending the Supreme court's consideration. However, the Company has made covenants with the plaintiff on September 22, 2010 for extinguish the aforesaid controversy that the Company # $ U (ZY

$ $ $ " statements amount of Baht 30.45 million. The remaining amount of Baht 13.75 million will be recorded as liabilities in $ $ $ ; " 3) ZY3Y 18.2 As at December 31, 2010 and 2009, the Company had the obligation under the agreement with the contractor which has to complete the construction work for approximately Baht 2,131.47 million and Baht 1,370.70 million (Separate : Baht 2,124.63 million and Baht 1,370.36 million), respectively. 18.3 As at December 31, 2010 and 2009, the Company and subsidiaries are liable on payment for land cost under the agreement for the remaining of Baht 435.45 million and Baht 666.26 million (Separate : Baht 430.15 million and Baht 660.92 million), respectively. 18.4 As at December 31, 2010, the Company has contingent liabilities from bank aval promissory notes for guarantee raw materials purchasing agreement of two construction contractors of the Company amount of Baht 166.57 million. 19. Dividend paid For the year 2010 According to the Board of directors' meeting No. 4/2010 held on August 5, 2010, passed the resolution to pay interim dividend to the shareholders from the results of the Company's operation for the six month periods of 2010 at Baht 0.18 per share for the total 1,475.70 million shares, amounting to Baht 265.61 million which was paid during the period. According to the shareholders' general meeting No.1/2010 held on April 8, 2010, passed the resolution to pay interim dividend to the shareholders from the results of the Company' s operation for the year 2009 at Baht 0.50 per share for the total 1,475.70 million shares amounting to Baht 736.55 million by deducting shares without right to received interim dividend total 19.99 milion shares at Baht 0.16 each, amounting to Baht 3.20 million and shares without right to receive annual dividend total 0.11 million shares at Baht 0.34 each, amounting to Baht 0.04 million. The remaining amount was actually paid amounting to Baht 733.31 million by deducting the interim dividend paid amount of Baht 231.61 million. The remaining amount should be paid amounting to Baht 501.70 million which was already paid during the period.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

153

For the year 2009 According to the Board of directors' meeting No. 4/2009 held on August 6, 2009, passed a resolution to pay interim dividend from the six-month operation results of 2009 at Baht 0.16 per shar e for the total 1,447.56 million shares amounting to Baht 231.61 million. The Company had paid the interim dividend during the period. According to the shareholders' general meeting for the year No.1/2009 held on April 28, 2009, passed a resolution to pay dividend from the operation results of 2008 at Baht 0.4115 per share for the total 1,475.70 million shares amounting to Baht 604.98 million by deducting the interim dividend payment amounting to Baht 206.60 million. The remaining amount should be paid in this period amounting to Baht 398.38 million which was already paid during the period. 20. Treasury stock As at December 31, 2009, the Company has treasury stock for 8.1463 million shares at cost of Baht 17.89 million.

According to the Board of Directors' meeting no. 6/2008 held on October 9, 2008 passed to approve the treasury stock program for the # / $ XZ ' (ZY $% ) / not exceeding Baht 200 million. The repurchased period in the Stock Exchange of Thailand will be started from October 24, 2008 to April 23, 2009. The period of repurchase will be exercised within 3 years commencing from the end of treasury stock repurchase period (six months). The Company's treasury stock had no a right on the meeting for voting and get the dividend. If the treasury stock could not be sold in the exercise period from the repurchasing date that the Company will reduce the paid-up share capital by write-off the registered treasury stock which was not sold. As at December 31, 2008, the Company has treasury stock for 7.5963 million shares at cost of Baht 16.69 million. In 2009, the Company has purchased treasury stock for the another 0.55 million shares at cost of Baht 1.20 million, total treasury stock is 8.1463 million shares at total cost of Baht 17.89 million which was already sold in 2009.

21. Retained earnings 21.1 Legal reserve *

$ # " @ $ * U( (Z€ €) ' $ $ # €[ $ $ # $ " # $ ‚ ƒ # 3Y[ - $ capital. Such legal reserve is not available for dividend distribution. 21.2 Reserve for treasury stock As at December 31, 2009, the Company appropriates retained earnings amount of Baht 17.89 million as reserve for treasury stock in accordance with guidance of the Judicial Committee and the Federation of Accounting Professions in the caption "treasury stock under Section 66/1(2)". As at December 31, 2008, the Company appropriates retained earnings amount of Baht 16.69 million as reserve for treasury stock in accordance with guidance of the Judicial Committee and the Federation of Accounting Professions in the caption "treasury stock under Section 66/1(2)" and as at December 31, 2009, the Company has cancelled such reserve in whole amount since the total treasury stock were sold in 2009. 22. Financial instruments Financial risk management and policies The Company and its subsidiary companies are exposed to risk from changes in market interest rates and from non-performance of contractual obligations by counterparties.The Company and its subsidiary companies do not hold or issue derivative instruments for speculative or trading purposes.

Interest rate risk The interest rate risk is a result of future movements in market interest rates that will affect the results of the Company and its subsidiary

Â? $ + ( ! $ " $ Â? / & $ $ ) " & $ $ ( *

$ # # ) $ " $ $ $ $# & $ & (

154

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Credit risk ! $ " $ / $ $ &

" $ " $ " ( ) $ " $ $ # " $) $ $ " (

` " K J ! $ " $ $ # $ $ # $ $ † % $ " & $ % $ " $ " ( % ! $

$ " :Y $ $ $ $ $ $ " $ " $ " ( % @ ) $ " $ " ( % U & $ ) $

$ " $ :Y $ $ " $ " ( % *

$ " $ " $ " ( % @ #% + # $ # ' (

‚ $ K Œ , K

Z (3 $ ' $ ' $ $ " & " †

$ $ " &

Z (Z @ $ $ K $ * ; " 3) ZYY:) $ $ $ K U 33(XY " $ (

Z ( * $ # * ; " 3) ZY3Y) $ U 3X(YZ " & # U (YY $ # $ $ " $ # (

* ; " 3) ZYY:) $ U 3(YZ ‚ U Y(€ ƒ $ $ " $ # (

Z ( * * ; " 3) ZY3Y $ ZYY:) $ $ $ " $ # " U ( $ U :( ) (

Z (€ @ $ $ K $ $ * ; " 3) ZYY:) $ $ $ K $ $ U 3 :(€ ‚ † U 33 ( ƒ " $ $ K $ ( ; # ) $ $ $ U 3(YY " $ $ $ $ " (

$ $ ‚U ƒ 2010 2009 3)3ZZ)ZZY)X ( Z

::Z)3€ ):X:(Z3

‚U ƒ 2010 2009 : )33Z)€: (3Z :Y)€:€)33 (3

Z (X " * ; " 3) ZY3Y) $ " $ # $

# # " # $ $K " # # $ # ZY3Y " #

( ‡ # ) $ $ $ $ $ # U :( Z $ $ $ # U X( X $ " $ $ $ " (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

155

24. Segment information As at December 31, 2010, it consists of : Parent Company

Business type

Real estate

Net sales 9,604.84 Cost of sales (6,442.24) )3XZ(XY Other income investment in associates Selling expenses Administrative expenses Directors' remuneration H # " / " costs and income tax 3,162.60 Finance costs interest " income tax 3,162.60 Income tax 3,162.60

Rent Others & Service

42.72 (30.15) 3Z( % 209.29

Subsidiaries Total

Real Service Rent Others estate & & Manage- Service ment

9,647.56 57.65 591.68 (6,472.39) (56.08) (164.13) )3 (3 3( Z ( 209.29 -

4.51 (3.20) 3( 3 -

-

(417.48) (417.48) (591.01) (591.01) (12.60) (12.60) (40.70) (40.70)

-

-

-

12.57

(852.50) 2,322.67

1.57

427.55

1.31

-

-

-

-

(4.17)

(Baht : Million) Total

(4.17)

12.57 (856.67) 2,318.50 (681.21) (681.21) 12.57 (1,537.88) 1,637.29

1.57 427.55 1.57 427.55

Total Eliminate Total

- 10,301.40 (360.73) 9,940.67 - (6,695.80) 148.36 (6,547.44) % )XY (XY Z3Z( ) : (Z 1.59 210.88 (133.42) 77.46 (0.05) (271.36) (30.46)

29.12 29.12 (417.53) 220.25 (197.28) (862.37) 6.57 (855.80) (12.60) (12.60) (71.16) (71.16)

(300.28) 2,452.82 (89.85) 2,362.97 (0.06)

(4.23)

-

1.31 (300.34) 2,448.59 (89.85) 2,358.74 (40.47) (721.68) (721.68) 1.31 (340.81) 1,726.91 (89.85) 1,637.06

Attributable to Equity holders of the parent Minority interest

Fixed assets as at December 31, 2010

(4.23)

1,636.97 0.09 1,637.06 86.15

-

-

-

14.23 100.38

-

100.38

Inter - company transactions are income from service, rental and interest income from subsidiaries. Transaction with related companies are in the normal course of business

156

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

As at December 31, 2009, it consists of : Parent Company Business type

Real estate

Net sales 8,717.35 Cost of sales (6,070.46) 2,646.89 Other income Share of gain on investment in associates Selling expenses Administrative expenses Directors' remuneration H # " / " 2,646.89 cost and Income tax Finance costs interest expenses " income tax 2,646.89 Income tax 2,646.89

Rent Others & Service

57.89 (47.12) 10.77 154.50 10.77

-

Total

Real Service Rent Others estate & & Manage- Service ment

8,775.24 12.45 420.94 (6,117.58) (9.56) (121.00) 2,657.66 2.89 299.94 154.50 -

(383.32) (383.32) (266.82) (266.82) (11.77) (11.77) (35.21) (35.21) (542.62) 2115.04

(11.04)

(Baht : Million) Total

Subsidiaries

(11.04)

10.77 (553.66) 2,104.00 (569.73) (569.73) 10.77 (1,123.39) 1,534.27

2.89 299.94

-

-

2.89 299.94 2.89 299.94

5.45 (3.34) 2.11 -

- 9,214.08 (238.69) 8,975.39 - (6,251.48) 87.67 (6,163.81) - 2,962.60 (151.02) 2,811.58 1.39 155.89 (80.55) 75.34

0.54) (208.60) (34.68) 2.11 (242.43)

-

Total Eliminate Total

(0.12)

(383.86) (475.42) (11.77) (69.89) 2,177.55

(11.16)

3.84 3.84 147.51 (236.35) 4.40 (471.02) (11.77) (69.89) (75.82) 2,101.73

0.05

2.11 (242.55) 2,166.39 (75.77) 2,090.62 (18.93) (588.66) (588.66) 2.11 (261.48) 1,577.73 (75.77) 1,501.96

Attributable to Equity holders of the parent Minority interest

Fixed assets as at December 31, 2009

(11.11)

1,501.91 0.05 1,501.96 66.96

-

-

-

13.54

80.50

-

80.50

Inter-company transactions are income from service, rental and interest income from subsidiaries. Transaction with related companies are in the normal course of business.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

157

25.

Expenses analyzed by nature # / - $ " †

Purchase of land and payment for construction during the year Changes in construction project and land held for development Changes in inventories Allowance for devaluation of inventories Reversed allowance for devaluation of inventories Salaries, wages and other employees " / U ! / $ transference fee Depreciation and amortization

$ $ ‚U ƒ 2010 2009

‚U ƒ 2010 2009

9,076,317,686.77

5,147,084,245.86

9,197,713,821.81

5,313,717,422.32

(1,949,025,241.05) (769,850,147.77) -

1,020,579,842.76 (246,880,179.92) 1,268,000.00

(1,982,885,178.47) (772,589,002.48) -

1,019,893,103.65 (244,141,325.21) -

1,268,000.00

19,010,295.23

-

19,010,295.23

€X) )3:3(€

3€)XX )3 Z( €

3 X) :€): 3(3X

3€3):Z:)YY3( :

329,232,599.66 32,046,739.99

9,213,275.44 34,734,673.29

326,948,245.66 23,539,855.02

9,199,301.44 26,029,930.44

26. Provident Fund ! $ $ ( ! $ " " " $ monthly salary at the rate of 2-4%, the Company's contribution of an additional 3-7% of the employee's basic salary which was paid !‡U —UH— ÂŠ? J # $ $ ‡ $  ( Z ž3:: Â’ Z ) 3:: $ ‹ ; J # $ $ ‡ $  (Z ž3:: ‡ " ZX) 3::

$ $ ‡ $ * U( ( Z€ Y $ $ # " $ $( ! $ " $ $ " $ $ # †

$ $ ‚U ƒ 2010 2009

Contribution to provident fund

8.60

7.64

‚U ƒ 2010 2009 2.78

2.47

27.

Directors' remuneration payment According to the shareholders' general meeting for the year 2010 held on April 8, 2010, passed to pay remuneration $ # $ ) / $ U 3Z(XY " / $ # $ ( ! " U $ $

# $( ! ) $ $ /

(

According to the shareholders' general meeting for the year 2009 held on April 28, 2009, passed to pay remuneration $ # $ ) / $ U 33( " / $ # $ ( ! " U $ $

# $( ! ) $ $ /

(

‚ # @ J ![% U / $ # $ / ) / / $ " / $ " / )

# ) " ) # ) $ / $ $ $ ; " 3) ZY3Y $ ZYY: U 3(3X $ U X ( : ) ‚ † U Y( Y $ U €(Z3 ƒ(

158

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

29.

Capital Management ! "K # $ " $ " properly appropriated and maintain the continuity of operation capability. As at December 31, 2010 and 2009, the Company and subsidiary companies have debt to equity ratio as summarized below :

Debt to equity ratio

$ $ ‚U ƒ 2010 2009 0.71

0.54

‚U ƒ 2010 2009 0.70

0.54

‚ $%% " K J ! $ $ - $ " U $ $ February 17, 2011.

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

159

Remuneration for Auditor

Audit Fee › ! $ :€)YYY ! U › ! $ Â? ) $ X:)YYY ! U Non-audit fee › Â

160

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Appendix

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

161

General Information

Listed Company Company

: L.P.N. Development Public Co., Ltd. Real Estate Developer ? *$$ † 33X ž3Y: @ ! ) Xth ‡ ) J J $( ! # &) ) U #& & J #  ( † Y3Y € YYZ Y ‚U H Â’ (  ( ƒ ! † ‚YZƒ Z €%€Y33%X ‡ / † ‚YZƒ X :% X:: † ‚YZƒ X :%X ‹ " † ( ( ( J ; † H ( " $ ‚YZƒ Z €%€Y33 $$ † Ăˆ ( ( Subsidiary Companies

162

Company ? *$$ J #  ( ! ‡ /

: † † † †

Lumpini Property Management Co., Ltd. H # $ 33X ž3Y: @ ! ) Xth ‡ ) J J $( ! # &) ) U #& & Y3Y€€ €Y€ X€ ‚YZƒ Z €%€Y33%X ‚YZƒ X :% X::

Company ? *$$ J #  ( ! ‡ /

: † † † †

Lumpini Project Management Service Co., Ltd. H # $ 33X ž3Y: @ ! ) Xth ‡ ) J J $( ! # &) ) U #& & Y3Y€€€Y3Z X:3 ‚YZƒ Z €%€Y33%X ‚YZƒ X :% X::

Company ? *$$ J #  ( ! ‡ /

: † † † †

Pornsanti Co., Ltd. J ; ‚ $ K ƒ 33X ž3Y: @ ! ) Xth ‡ ) J J $( ! # &) ) U #& & Y3Y€€ Y€ Z3 ‚ € Z3žZ€ ƒ ‚YZƒ Z €%€Y33%X ‚YZƒ X :% X::

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Associated Company Company ? *$$ J #  ( ! ‡ /

: Grand Unity Development Co., Ltd. Real Estate Developer † žZZ H - U $#) Z $ ‡ ) ) @ ) U #& & † Y3Y€€ Y ZZ † ‚YZƒ 3YY% 3 3 † ‚YZƒ Z€ % X

Legal Consultant Company ? *$$ J #  ( ! ‡ /

: † † † †

Sermsak, Vejj & Associates Law Off ice ::ž X€% X & J $ ) 3Z ‡ ) > " $ J # ) @ $ ) Â’ K &) U #& & XYžZ€Z€ ‚YZƒ X:3%€€ 3%€ ‚YZƒ X:3%€€ €

Auditor Company ? *$$ * $ ! ‡ /

: † † † †

D.I.A. International Auditing 3Xž Z & ZZ) & J $) Š # ) U #& & H ( ‹ J K & $ " *

#  ( 3 Y ‚YZƒ Z€:%€ YY ‚YZƒ ZXY%3€€Y

Registra Company ? *$$ ! ‡ / ‹ "

: † † † † †

Thailand Securities Depository Co., Ltd. XZ & / # ! $ U $ #) J $ & J $) Š # ) U #& & ‚YZƒ ZZ:%Z YY ‚YZƒ €:%3Z€: ‚YZƒ ZZ:%Z ( $( (

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

163

Business Operation of Each Product Line

Type of Product or Service The Company, subsidiary companies and associated company conduct a business to provide correlated products and services i.e. real estate development business and real estate management services business. The details are as follows: 1 ) Real Estate Development Business At the beginning, L.P.N. Development Public Co., Ltd. and subsidiary companies operated a real estate business with an aim to sell and rent out condominiums. The majority of projects developed at the beginning was high-rise building or big buildings located in the heart of the city. Since the economic crisis in 1997, the Company adjusted its policy and strategy to focus on the development of residential condominiums targeting those in the middle to lower-middle income range and applied differentiation strategy in creating uniqueness in terms of products and services. The Company has developed condominiums under “LPN Design� concept which focuses on the usefulness of small space in the city. This is different from other general products in the market. After sale service in the form of community management has been developed with an emphasis on the quality of life of the residents which help create the ' $ " $ $ # . Cost leadership strategy is also applied and becomes the strength of the Company enabling its competitive advantage. At present, the Company has categorized and decided a place for each product for clarity and consistency with the target group under the title and brand as follows: “Lumpini Suite� and “Lumpini Place�

“Lumpini Ville� The brand has been designed and developed for young professionals with the age of not older than 35 years old who look for convenience in transportation and private residence and are able to afford residential / $ 3Y)YYY ! U ) to cover daily expenses, do not have much burdens and are young people who are looking to reward themselves. The locations of the projects are in densely populated area and near work place and department stores. “Lumpini Ville� brand is thus an alternative for young people who want to live a life of their own while still maintaining a close bond with their family. Needs : “Make themselves and those around them happy� Real Pleasure in their living : “Want to reward themselves� “Lumpini Center� and “Lumpini Condotown� The brand focuses on the residences which are affordable with reasonable price for a good quality of life of those who just start their career and are able to afford residential expenses of 5,000 THB per month. The locations of the projects will be in the fringe of urbanouter area which is densely populated. The workplace and the project must be in the radius of not more than 5 kilometers. This is a large group of people who are in need of a residence. The Company <@ $ = " + # $

$ $ $ " quality home and the starting point of the family for those who are about to start their lives and build a family. Needs : “Opportunity in life� Real Pleasure in their living : “The starting point which will create a better life and happiness� “Lumpini Park�

The two brands are developed to respond to residential needs of working people in the level of higher middle manager who are able to afford residential expenses of 20,000 THB per month, have a # $ $ # $ happiness and convenience of life. The locations for the development of such projects, therefore, are in densely populated area, in city center or around business center and equipped with mega public transportation system and full

( ! $ # $ $ $ + the status of the residents for quality living. Needs : Perfect Happiness, Status in the Society Real Pleasure in their living : Completeness and Class

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Lumpini Park is a special brand with an additional value of a huge garden under the name of “Suan Ruam Jai� (Community Park) which is a common area where the residents of projects can do activities together. This is a way to upgrade the quality of life of the residents of large scale condominiums. After the handover of all projects, the Company will provide an after sale service to take care of the customers. Lumpini Property Management Co., Ltd. which is a subsidiary company will be responsible for community management and other services for the perfection of the community and the upgrade of the quality of life of the residents in all aspects. The services provided include

community management, buy/sell/transfer/exchange/ services, equipment and building maintenance services, cleaning services and other services related to the quality of living and community. Moreover, the Company adds value to the project by conserving the environment and creating good society in the community managed. Joint owners of all projects pass on the resolution to appoint the subsidiary of the Company to be the manager of the community # ( ! + " towards the quality of life of the residents which is enhanced by the contribution and commitment of all employees of the organization. 2 ) Real Estate Management Service Business The Company established Lumpini Property Management Co., Ltd. which is a subsidiary company and holds 99.98% of shares in the company. Since 1997, the Company assigned Lumpini Property Management Co., Ltd. to be responsible for all real estate management in terms of full services from project management i.e. management of sale, rent, transfer and construction work and management of buildings developed by the company as the “after sale service�. At the end of 2007, the Company established Lumpini Project Management Service Co., Ltd. which is another subsidiary company and holds 99.93% of shares in the company. The project management work has then been delegated to Lumpini Project Management Service Co., Ltd. in order to support future growth. The types of services provided by the two companies are as follows: 2.1 Sale and Marketing Management Sale and marketing management is operated by Lumpini Property Management Co., Ltd. and covers market information research, consumers’ demand research, competitors analysis, sale price and marketing strategy establishment, sale planning, preparation of contracts for related legal transactions, follow-up installment payments and condominium ownership transfer to customers. The company will report the performance to high ranking executives regularly and assigns an experienced team of people in real estate business to be responsible for the whole process after the handover. If the customers would like to sell or rent out the condominium unit to & ) " & provide buyer/tenant, process legal transactions, give recommendations,

$ $ $ ownership transfer process in the case of sale. As for rental, the company provides recommendations and coordinates the decoration from the beginning until the handover of the unit to the tenant. The company also provides rental management service throughout rental contract period. These are considered to be full services and in accordance with the policy to add value and provide after sale service to the customers of the company. 2.2 Project Management Project management is operated by Lumpini Project Management Service Co., Ltd. It is to manage the development of projects of the Company and subsidiary companies, starting from improving the condition of the land after the purchase and establishing a project management guideline to be in line with the original plan in terms of ) & #) ) $ $ $ ( ˜ $ # $ $ <˜% % % E-S� strategy, namely,

1 Quality: Quality check process before handover of condominium units is in place. A quality check team will ensure the tidiness of the condominium unit as well as all other components in the project for the perfection and safety of living. 2 Cost: It is assured that cost is managed properly according to the project development plan by effectively establishing each stage of work and applying appropriate working techniques together with the alliance. This is to make sure that the construction cost will not exceed the budget. 3 Schedule: As a result of life-long experiences of working together with alliances, the Company develops the construction format and installation process that readymade construction materials are produced and quality controlled from a factory. The construction of all projects, therefore, can be done quickly and completed before the deadline or at the very least meet the deadline promised with the customers. 4 Environment: The Company focuses on limiting impacts of the construction on the environment and neighboring communities to the minimum by following the measures stated in the Environmental Impact * $ " ? Â J and Environmental Policy and Planning and constantly maintaining and improving the environmental surroundings of the projects. 5 Safety: The Company gives importance to safety both within and outside the project during construction, including the living condition of construction workers. Occupational health is ensured and knowledge about construction work is provided. Also, the Company takes care of the health as well as housing

$ & ( ! construction site to ensure safety of the workers. There is also a Department to take care of the customers after the handover of $ $ / $ $ by the construction process or materials, renovate the unit and improve the condition of the project as appropriate, especially in the projects which have been completed for a certain period of time, to maintain the overall condition of the projects for long-term value. 2.3 Community Management Community management is the main policy of the Company to build its uniqueness in terms of service and the strategy to build

$ $ ( ! # Lumpini Property Management Co., Ltd., a subsidiary company, to be responsible for managing the communities as mentioned in the brand management section above. ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

165

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166

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

1.2 Group of buyers for their second home – who needs a residence located in the business center to save traveling expenses and time. 1.3 Group of buyers for expansion of their family – who own a business near the project location and look for a residence which is nearby or those would are looking to expand the family of their children in the future. 1.4 Group of buyers for their children – who look to buy a condominium which is close to an education institution which their children are going to. 1.5 Group of buyers for investment – who want to make a long-term investment in a property. This could be in the form of buying a condominium to rent it out because the projects of the Company are in good locations and the return of investment rate of rental is higher than interest rate. 2. Real Estate Lessee Real estate lessees can be divided into 2 groups as follows: 2.1 Rental for Residential Purposes: The majority of this group of customers is Thai and foreign high ranking executives with high income level who are looking for a residence not far from work. Projects of the Company can respond well to the needs of this group of customers. 2.2 Rental for Commercial Purposes: This group of customers runs a variety of business in the Company’s condominiums. The Company aims to build a network of retail business in the condominiums in order to provide full services to customers as well as expand to other sources of income than that from sale. 3. Real Estate Service Receivers The service received is community management which is operated by Lumpini Property Management Co., Ltd. The communities managed will only be those developed by the Company in order to build a positive image of the Company. It is also a strategy to create uniqueness in terms of service. Target Group of Customers The customers targeted are those who want a residence to be in a highly populated area, not far from public transportation system or express ways and equipped with full facilities. The income range of such group of customers is higher-middle to lower-middle or around 15,000-50,000 THB per family per month with the age between 25 and 45 years old. This covers the majority of those who have the purchasing power in the market and are currently renting a house or living in a dorm, an apartment or at their parents’ house with the desire to be independent and build their own family according to the lifestyle of city dwellers nowadays. Sales and Sales Channel The selling method of the Company is direct sales by the Sales Team of the Company which comprises sales persons who are experienced, have very good knowledge and understandings of the products and services of the Company. The team will provide information and recommendations for customers for their decision. There are also supporting sales persons who are staff of the Company and subsidiary companies. They actually are working in support function in the " &

#) $ $ " also regularly trained to be equipped with the knowledge about the Company’s products and sale technique. At new projects opening

events, they will help out by taking customers around the project and its showroom to show them the actual product that will be handed over after completion of the project. They will also provide information about the project and answer all the questions for customers to make an informed decision. Moreover, the Company gives importance to $ ) well as the presentation of the showroom and the site to create a good $ $ ( * " situated in the business center so as to be easily accessible and convenience for the target group of customers to visit the project, reserve to buy a unit, make installment payments and do other transactions $ K ( Status and Ability to Compete The Company has always been seeking for new markets with less or no competition. This is called the “Blue Ocean Strategy� which is a competitive strategy to sustain the returns of investment and widely expand the customer base for the future growth such as the expansion of project locations from densely populated area in the city to that in the fringe of outer-urban area. The Company also expands the target groups from those in the middle income range to lower-middle one that are the majority of the population of Bangkok and outer areas whose needs to buy a residence are not met by other business operators. Apart from the above, the Company increases its ability to compete to maintain the market share by: 1.1 Being a Cost Leader: Cost Leadership is the strength of the Company. The executives of the Company comprise experienced architects and engineers who deeply understand cost issues. The business alliances have been working with the Company for so long that they understand the direction and share the same # # ( * lead to new innovations which are unique to the Company. 1.2 Building Product Differentiation: To ensure utmost customer satisfaction, the Company chooses to differentiate its products by designing the products under “LPN Design� concept which focuses on the design of small scale condominium units to be fully equipped with facilities and able to respond to the lifestyles of the residents. Such condominium units need low maintenance and has good ventilation system. These are the innovation of condominium design which has continuously been researched and developed and become the model for the products of other companies. The Company also build a differentiation in terms of services with the emphasis on the after sale service i.e. community management under “Vibrant Community� strategy which focuses on the quality of life of the residents. Procurement of Products and Services 1. Provision of Products and Services The main products of the Company are residential condominiums for the target group in the higher-middle to lower-middle income range who are in need of quality residence with reasonable price which is safe, equipped with facilities and locates near public transportation system or express ways. In order to respond to the competitive situation of the market, laws and changing costs, the Company has established a project development guideline and processes as follows: 1.1 Survey the demands in the market in various locations both in Bangkok and peripheral areas as well as in provinces with high economic growth rate. The information received from the survey ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

167

will be used to decide project locations in order to expand the customer base and locations of projects. The focus will be on the target group of customers with higher-middle to lower-middle income range. The sale price per unit will be between 700,000 and 2,000,000 THB. The market situation, competitors, demand and supply and economic and social situations at the time will also be surveyed. 1.2 Analyze the project, plan marketing goal, consider to purchase a land and analyze the location, shape, size, surroundings, regulations of the government which can affect the project as well as competitors to decide the characteristics, size, development process and product value of the project based on the returns of investment, the suitability of the location and the format of project development. 1.3 Plan and design the project to be in line with the survey result by selecting quality architects and project consultants who understand the concept of the Company. The architects and engineers are very important since their performance will directly affect the costs especially direct costs such as the sale space to land ratio which + $ # ( $ cost leadership strategies of the Company to maintain its ability to compete in the market. 1.4 $ K $ ) ) K # plan, sale management and marketing plan as well as community management after handover plan. 1.5 Prepare the team and decide manpower for the management of the project i.e. sales team, construction team, ownership transfer and handover team and community management team. This will be operated by a subsidiary company. 1.6 Manage sale and marketing work as follows: - Planning of sale i.e. sale price establishment, planning of customer payment and provision of sources of loan during $ " $ #

# " ) sales target set up and sales team training. - Preparation of marketing plan i.e. advertisement and promotion plan to reach the target group, production of sale materials, schedule and sale opening process. 1.7 Manage construction work with the following stages: - Coordinate with and provide project information to all stakeholders i.e. government agencies and especially neighboring communities who will be directly affected by the development. % * ? Â J $ Policy and Planning and seek approval for the construction from related departments respectively. - Prepare the construction plan and select a contractor. The length of the construction until the opening of sale is limited to 18 months for high-rise buildings and no more than 12 months for buildings not exceeding 8 stories. The Company has developed the construction system and technique and used readymade materials. A subsidiary company is responsible for managing and controlling all process of the construction according to the roles and responsibilities assigned. % J K # # " ( 3( * $ % $ K " producing a summary report as an information and case study for the next project of the Company.

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

1.9 Manage the community after the handover under “Vibrant Community� strategy with an aim to create a good quality of life for the residents and be responsible for the environment and society. 2. Production Capacity and Volume The Company does not handle the production capacity and volume directly but hires construction contractors who are reliable alliances of the Company with experiences appropriate for each project to carry on the construction work. A subsidiary company is responsible for managing and controlling construction work closely and arranging an auction and a price investigation to decide a proper cost of the construction. A construction package deal including materials and # " # $ $ & +

$ ( $$ ) Company will not depend on the main contractor but will arrange separate auctions for each types of work such as foundation piles, structure, ceilings, windows and aluminum and electricity and water supply system to reduce risks and indirect costs. All contractors will coordinate with each other for speedy and quality construction. The main contractor and subsidiary company will be the coordinators of & ( ) directly such as elevators which have high purchase volume and require services from the seller directly. The process above has been

$ " $ # the strengths and reliability of the alliances. This is considered to be the competitive advantage of the Company. 3. Provision of Raw Materials As already mentioned above, the Company does not handle the production capacity and volume directly but hires construction contractors who are reliable alliance of the Company with experiences appropriate for each project to carry on the construction. A construction package deal including materials and wage will be # $ $ & + materials and supplies. Therefore, there is no need for the Company to provide construction materials. However, the land for project development is the most important raw material as in the saying J @ ) @ $ @ ( ! determines the following factors as criteria for the provision of a plot of land to be developed: 1.1 The location of the land must be in densely populated area on a main road, equipped with full facilities, near workplace or large scale communities, near transportation system or express ways, conveniently accessible, not at risk of expropriation or have any legal obstacles and problems with the government. 1.2 The width and shape of land must be suitable and in line with U $ # * " $( to be in accordance with the land use regulations. 1.3 The provision of land will be done through publishing an announcement in a newspaper to directly contact the owner of the land or through a " &

# " $ ! Asset Management Cooperation (TAMC). The Company establishes a Department to be directly responsible for seeking and checking $ ' ( ! & / # ! $ $ $ ( @ $ appraisal will be done by an independent appraiser to double check the price of the land. The value of all plots of land the Company purchases is lower than the appraised value.

Details of Completed Projects of L.P.N. Development Public Co., Ltd. No.

3 Z € X : 3Y 33 3Z 3 3 3€ 3X 3 3 3: ZY Z3 ZZ Z Z Z€ ZX Z Z Z: Y 3 Z € X : Y 3 Z € X

170

Project

Type of Project

@ ! ? U $ # @( ( ( ! ? U $ # @ J $ $ @( ( ( H ? ? U $ # U @ U # U ! # U $ # $ ! J J $ $ U @ Z U # U ! # U $ # @ U $ # @ U $ # *% J $ $ @ U $ # *%; J $ $ @ J $ J $ $ @ @ 333 U $ # *% J $ $ @ % J $ $ @ J % J $ $ @  Z J $ $ @ > H % J $ $ @ J % & # J $ $ @  & J $ $ @ & 3 J $ $ @ J %J J $ $ @ & J $ $ @ > % J $ $ @  J $ $ @ > & J $ $ @ & J $ $ @ > J $ $ @  % J $ $ @ % & J $ $ @ & Z J $ $ @ J $ %! J $ $ @ > J & # J $ $ @ $ ! U $ $ %J & # J $ $ @ $ ! J $ %@ & J $ $ @ > J $ %@ & J $ $ @ > % # J $ $ @ $ ! J " J $ $ @ & J $ $ @ > J & # ZX J $ $ @ J J $ $ @ J J $ $ @ J $ %@ & J $ $ @ > U #& J $ $ @ J :%J $ 3 J $ $ @ $ ! J $ % ‚*)U) ƒ J $ $ @ $ ! U #& J $ $ @ > J " %J J $ $ @ > @ % & J $ $

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Height ˆ`

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Z% % 3%Z% Z 3% %ZX Y%Y%:Y X%3% 3(Z Z%Y%3X(X Z%3% (: 3%3% 3(Z 3Z%Z%ZX %Z%€Z(X Y%3%:: X%Z%3 Z%Z%ZZ(€ Z%Y% Z%Y%Z€ Z% %X€ Z% % : Z%Z%33(Z 3%Z% %Y%X€(3 X%Z% Y(Z €%Y% X(: %Z%X€( % %Z:( %Y% 3Z%Z%X :%Y% Z %3%X % % ( X%Z%ZX %Z%€X Z% %Z 3 %Y% Y %Z%€ ( % % ( 3:%Y%€:(3 %3%X 3Y%Z% :% % ( 3% %€€(: %3%:X( Z%Y% X%Y%3: 3Y%Z%: % %: €%Y% € %3% Y

Number of Units 33 X 3 Y 3Y € Z 3) X€ XY €X Z 3 Z 3 3:Y YY 3Z Z 3€: : Z X3 Z : € Y 3) Z 3) YX 3)Y: X€3 : Z ) € 3)€X 3)Z 3 :€ 3): € :: 3)3 3 3 Z €3X Z 3 3)3X€ 3) €: :€ 3)YZ 3)YZX

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Development and Construction

’ ( 3: : H ( 3::Y ( 3::3 3:: ? ( 3:: ’ ( 3:: ’ ( 3::  ( 3:::  ( 3::: H ( ZYY3 % * #( ZYYZ ( ZYYZ  ( ZYYZ ’ ( ZYY H ( ZYY H ( ZYY ’ ( ZYY ( ZYY H ( ZYY ’ ( ZYY ’ ( ZYY ’ ( ZYY€ ; ( ZYY H ( ZYY€ H ( ZYY€ ’ ( ZYY€ ’ ( ZYYX ( ZYYX H ( ZYYX ’ ( ZYYX ( ZYY * ( ZYY ’ ( ZYY ( ZYY ; ( ZYY  ( ZYY ‡ "( ZYY H ( ZYY H ( ZYY ‡ "( ZYY: ; ( ZYY ’ ( ZYY ’ ( ZYY: ’ ( ZY3Y ’ ( ZYY:  ( ZYY:

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ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

171

Details of Completed Projects of Pornsanti Co., Ltd.

No. 1 2 3 4 5 6 7 8

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Details of Current Projects Under Development

No. 1 2 3 4 5 6 7

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Details of Projects Not-Yet-Transferred / To-be-Transferred @( (Â ( ; > @? H Â ! ?()@!;( No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

172

2012 2011

2010

2009

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Project Completion

Project @ & J $ %J @ & & @ J :%J $ Z @ J @ J %Š @ > @ % & @ > J " %J @ $ ! J $ % @ > U #& @ $ ! U #& @ J :%J $ 3 @ J $ %@ & @ J @ > J & # ZX @ $ ! J " @ > J $ %@ & @ $ ! U $ $ %J & # J > @ J $ %! @ % @ J $ %! U $ # )

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Number

K “ 3)Y Z)X 764 3) 3 866 250 96 907 1 108 8 7 12 2 38 1 2 2 5 1 4 8,666

Duration

Value ˆ @‰ Z):Y3(€X ) Z( X 3)€3X( Z )Z3 (: 3)€ €( Y €Y(€Y 3ZX(Z €X(Y 3(Z : (3Y ZX(: 3Z( € ZZ(XZ (33 X(:Z 3(3 Z(ZX ( 3 (:Z (€Y ( 14,414.51

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![% + ƒ No. 2011 ) Z( X 3)€3X( Z )Z3 (: 3)€ €( Y €Y(€Y 3ZX(Z €X(Y 3(Z : (3Y ZX(: 3Z( € ZZ(XZ (33 X(:Z 3(3 Z(ZX ( 3 (:Z (€Y ( 11,512.95

2012 Z):Y3(€X 2,901.56

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K “ 1 1 7,574

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2012

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

173

Assets used in business operations ^ =^\ :=> £^¦<` ¢]]<>] Assets L.P.N. Development Public Co., Ltd.

Assets for Rent 1. Lumpini Tower 2. L.P.N. Tower 3. Siphraya Riverview 4. Lumpini Center Phase 4 5. Lumpini Place Sathorn 6. Lumpini Residence Sathorn 7. Lumpini Ville Mary-Sathorn 8. Lumpini Ville Sukhumvit 77 9. Lumpini Place Pinklao 10. Lumpini Place Pinklao 2 11. Lumpini Suite Pinklao 12. Lumpini Ville Cultural Center 13. Lumpini Place Narathiwat-Chaophraya 14. Lumpini Place Phahon-Saphankwai 15. Lumpini Place Ratchada-Thapra 16. Lumpini CondoTown Bodindecha-Ramkhamhaeng 17. Lumpini Ville Ramkhamhaeng 26 18. Lumpini CondoTown Ramindra-Laksi 19. Lumpini Place Ramindra-Laksi 20. Lumpini Ville Prachachun-Pongphet 21. Lumpini CondoTown Rattathibet 22. Lumpini Suite Rama 8 23. Lumpini Place Rama 8 24. Lumpini Place Rama 9-Ratchada Phase 1 Total Assets for Rent \KJ $ 1. Lumpini Tower

Location

Rama 4 Road Ratchadapisek Road Yotha Road Happy Land 1 Road Narathiwatrajchanakharin Road Narathiwatrajchanakharin Road Sathorn Road Onnuj Road Boromrajchonanee Road Boromrajchonanee Road Boromrajchonanee Road Pracha U-Thit Road Rama 3 Road Pradipat Road Ratchadapisek Road Ramkhamhaeng Road Krungthepkreetha Road Ramindra Road Ramindra Road Prachachun Road Rattanathibet Road Aroonamarin Road Aroonamarin Road Rama 9 Road Rama 4 Road

Area

174

Yotha Road Rama 3 Road Pradipat Road Ratchadapisek Road Ratchadapisek Road Ramkhamhaeng Road Krungthepkreetha Road Ramindra Road Ramindra Road Rattanathibet Road Rama 8 Road Aroonamarin Road Aroonamarin Road Rama 9 Road Bangkhae Road Bangkhae Road Ratburana Road Ramindra Road

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Appraised Value (million THB)

3,945.02 799.56 4,344.73 99.73 184.14 2,238.55 44.92 176.81 36.95 311.13 402.37 256.56 786.63 120.52 108.00

sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m

58.37 18.17 14.30 1.37 7.25 87.33 1.90 5.65 1.81 12.98 21.69 10.64 33.49 4.89 3.30

85.68 30.20 14.69 2.53 9.90 113.64 2.01 8.98 2.73 20.22 32.23 15.40 46.42 7.84 5.76

744.20 176.85 28.66 194.85 187.50 190.30 91.70 181.19 116.89

sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m

20.66 4.74 0.85 7.95 6.14 5.77 3.84 5.89 4.28 343.26

32.14 9.73 1.38 10.72 10.23 7.81 5.55 6.88 6.43 489.10

1,340.58 sq.m

Total Assets for Rent Assets for Sale 1. Siphraya Riverview 2. Lumpini Place Rama 3-Charoenkrung 3. Lumpini Place Phahon-Saphankwai 4. Lumpini Place Ratchada-Thapra 5. Lumpini Place Ratchada-Thapra building C 6. Lumpini CondoTown Bodindecha-Ramkhamhaeng 7. Lumpini Ville Ramkhamhaeng 26 8. Lumpini Ville Ramindra-Laksi 9. Lumpini Place Ramindra-Laksi 10. Lumpini CondoTown Rattanathibet 11. Lumpini Suite Rama 8 12. Lumpini Place Rama 8 13. Lumpini Place Rama 9-Ratchada 14. Lumpini Place Rama 9-Ratchada Phase 2 15. Lumpini Ville Bangkhae 16. Lumpini CondoTown-Bangkhae 17. Lumpini Ville Ratburana-Riverview 18. Lumpini CondoTown Ramindra-Nawamin (Building A,B)

Book Value (million THB)

36.84

36.32

36.84

Obligations

*Agency , market price SCIB , BAY Agency For Real Estate SCIB market price market price market price market price SCIB market price market price market price market price market price market price market price market price market price market price market price market price market price market price market price market price market price market price

36.32

Appraiser

-

*Agency , market price SCIB , BAY

64.71 60.42 65.11 357.96 135.96

sq.m sq.m sq.m sq.m sq.m

2.94 2.81 2.49 10.67 3.85

2.94 2.81 3.50 18.87 3.83

book value book value market price market price market price

-

167.16 255.85 81.61 471.05 9,211.58 139.22 1,493.50 1,364.21 36,782.50 94.29 9,375.33 9,216.50

sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m sq.m

4.13 7.33 3.20 18.53 191.95 5.88 51.39 52.08 1,385.54 2.64 218.84 268.44

7.36 12.05 4.06 25.75 345.56 8.43 78.40 81.97 2,056.01 4.14 321.45 419.52

market price market price market price market price market price market price market price market price market price market price market price market price

-

5,026.01 sq.m

116.02

181.57

market price

-

Assets L.P.N. Development Public Co., Ltd.

19. Lumpini CondoTown Ramindra-Nawamin (Building C) 20. Lumpini Ville Latphrao-Chokechai 4 Total Assets for Sale

Location

Ramindra Road Latphrao Road

Assets for Rent 1. P.S.T. Condoville Tower 1 2. P.S.T. Condoville Tower 2 3. P.S.T. City Home Total Assets for Rent

Location

Nonsi Road Nonsi Road Nonsi Road

Appraised Value (million THB)

135.06 328.13 2,811.92

220.08 550.69 4,348.99

market price market price

-

sq. wa

1,532.14

2,619.52

market price

KBANK

sq. wa sq. wa sq. wa sq. wa sq. wa sq. wa sq. wa

436.98 1,224.47 368.27 816.70 98.46 0.58 0.19 4,477.79

555.31 2,112.75 439.49 816.70 98.46 0.58 0.19 6,643.00

book value market price market price book value book value book value book value

BBL BBL SCIB BBL -

sq. wa

165.09

154.20

Sallmanns (Far East)

-

sq. wa

241.72

241.72

book value

SCIB

sq. wa sq. wa

7.36 381.03

7.36 381.03

book value book value

SCIB -

sq. wa

6.27 801.47 8,470.76

6.27 790.58 12,308.51

book value

-

Book Value (million THB)

Appraised Value (million THB)

Appraiser

5,821.98 sq.m 10,555.96 sq.m

Assets Under Development Boromrajchonanee Road 12 rai 3 ngarn 88.60 1. Lumpini Park Pinklao 2. Lumpini Condotown Ramindra Nawamin (Building D) Ramindra Road 4 rai 1 ngarn 74.63 3. Lumpini Place Ratchayothin Phahonyothin Road 14 rai 3 ngarn 21 4. Lumpini Place Rama 4-Kluaynamthai Rama 4 Road 4 rai 1 ngarn 4 5. Lumpini Park Riverside-Rama 3 Rama 3 Road 14 rai 1 ngarn 42.1 6. Lumpini Ville Lasalle-Bearing Lasalle Road 7 rai 1 ngarn 69 7. Lumpini CondoTown Nida-Seri Thai Seri Thai Road 6 rai 2 ngarn 9 8. Lumpini Ville Phattanakarn-Ekkamai Phattanakarn Road 16 rai 0 ngarn 86 Total Assets Under Development Assets to be developed 1. Land in front of Baan Lumpini TalingchanBang Bua Thong 3 Suphanburi Road 7 rai 2 ngarn 38.2 2. Land in front of Lumpini Place Sathorn Narathiwatrajchanakharin Road 2 rai 1 ngarn 96.4 3. Land in front of Lumpini Place Sathorn Narathiwatrajchanakharin Road 0 rai 0 ngarn 73 4. Land in soi Sukhumvit 24 Sukhumvit Road 3 rai 2 ngarn 22.5 5. Land in front of Lumpini Place Pinklao 2 Boromrajchonanee Road 0 rai 1 ngarn 3 Total Assets to be developed Total Assets of L.P.N. Development Public Co., Ltd. (1) Assets Pornsanti Co., Ltd.

Book Value (million THB)

Area

Area

278.45 sq.m 136.71 sq.m 11,637.89 sq.m

0.86 4.53 79.15 84.54

2.20 6.39 98.50 107.09

Appraiser

Obligations

Obligations

market price market price S&P

SCIB

book value

-

book value

-

Assets for Sale Total Assets for Sale Assets Under Development 1. Commercial Building Pinklao

Boromrajchonanee Road

Total Assets Under Development Assets to be developed 1. Townhouse Ratchada-Latphrao Latphrao Road Total Assets to be developed Total Assets of Pornsanti Co., Ltd. (2) Total Assets of the Company (1) + (2) *Agency For Real Estate, market price **T.A. Management Corporation(1999)

520.00 sq.m

6,730.00 sq.m

-

-

5.62

5.62

5.62

5.62

126.86

126.86

126.86 217.02 8,687.78

126.86 239.57 12,548.08

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

175

Company's Loans List of loans of L.P.N. Development Public Co., Ltd. and its subsidiary companies as of 31 December 2010 (Unit: Million THB) No.

Institution

Loan Type

1

Loans from

Loan

Amount Outstanding Amount Proportion (million THB) (million THB) % 6,545.00

1,612.65

24.64

6 Total

3

6,545.00

Financial Institution

Amount

; 3Y

3)3ZZ(3Y

Total

176

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Collateral

4.74%

Land and Buildings

1,612.65

Financial Institutions contacted as of 31 December 2010 (Unit: Million THB) No.

Average Interest Rate

1,122.10

24.64

Address of Projects Office Buildings

“Lumpini Place” Residential Condominium

Lumpini Tower 1168 Rama 4 Rd., Tungmahamek, Sathorn, Bangkok 10120 Tel. 02-677-6356-7, 02-286-9855 Fax 02-286-9856

Lumpini Place Sathorn 124 Narathiwasratchanakarin Rd., Tungwatdon, Sathorn, Bangkok 10120 Tel. 02-287-4567 Fax 02-287-4257

L.P.N. Tower 216 Nanglinchee Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-285-4225-6 Fax 02-285-4089

Lumpini Place Suanplu–Sathorn 435 Soi Suanplu 8, Sathorn 3 Rd., Tungmahamek, Sathorn, Bangkok 10120 Tel. 02-286-1585 Fax 02-286-1850

Residential Condominiums Lumpini Place 111 Soi Kraisri, Sribampen Rd., Tungmahamek, Sathorn, Bangkok 10120 Tel. 02-671-1368-70 Fax 02-249-1793 Si Phraya Riverview 108 Yotha Rd., Taladnoi, Sampanthawong, Bangkok 10100 Tel. 02-639-5002-4 Fax 02-639-5004 P.S.T. Condoville Tower 1 118 Soi Naksuwan, Nonsi Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-681-3112-3 Fax 02-681-3113 P.S.T. Condoville Tower 2 120 Soi Naksuwan, Nonsi Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-681-3523-5 Fax 02-681-3524 P.S.T. City Home 128 Soi Naksuwan, Nonsi Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-681-3501, 02-681-3505 Fax 02-681-3509

Lumpini Place Rama 4–Sathorn 164 Soi Sribampen, Rama 4 Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-350-2895 Fax 02-350-2897 Lumpini Place Narathiwas 24 253, 255 Sathupradit Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-211-4351 Fax 02-211-4375 Lumpini Place Rama 3–Charoenkrung 101 Rama 3 Rd., Bangkorlaem, Bangkok 10120 Tel. 02-291-8632, 02-291-9333 Fax 02-291-8607 Lumpini Place Narathiwasratchanakarin 471 Building A, B Floor, Narathiwasratchanakarin Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-294-6877 Fax 02-294-6876 Lumpini Place Rama 3–Riverview 297 Rama 3 Rd., Bangklo, Bangkorlaem, Bangkok 10120 Tel. 02-291-9915, 02-291-9918 Fax 02-291-9923 Lumpini Place Pinklao 28 Boromrajchananee Rd., Bangbamru, Bangplad, Bangkok 10700 Tel. 02-458-3111-2 Fax 02-458-3113

“Lumpini Suite” Residential Condominium Lumpini Suite Sukhumvit 41 28 Sukhumvit 41 Rd., Klongtan Nua, Vadhana, Bangkok 10110 Tel. 02-261-9330 Fax 02-261-9331 Lumpini Suite Pinklao 1 Somdejprapinklao Rd., Bangyikhan, Bangplad, Bangkok 10700 Tel. 02-497-0777-8 Fax 02-497-0779 Lumpini Suite Rama 8 1 Soi Aroonamarin 53, Aroonamarin Rd., Bangyikhan, Bangplad, Bangkok 10700 Tel. 02-497-5000, 02-497-5100 Fax 02-497-5001

Lumpini Place Narathiwas–Chaophraya 78 Rama 3 Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-293-1111 Fax 02-293-1234 Lumpini Place Phahol–Saphankwai 171 Pradipat Rd., Samsen Nai, Phyathai, Bangkok 10400 Tel. 02-279-1010-1 Fax 02-279-1180 Lumpini Place Ratchada–Thapra 18 Ratchadapisek (Thapra – Taksin), Bukkalo Thonburi, Bangkok 10600 Tel. 02-466-1144, 02-460-2250 Fax 02-466-1145 Lumpini Place Pinklao 2 89 Boromrajchananee Rd., Aroonamarin, Bangkok Noi, Bangkok Tel. 02-433-2551, 02-433-4444 Fax 02-433-2552

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

177

Lumpini Place Rama 8 3 Soi Aroonamarin 53, Aroonamarin Rd., Bangyikhan, Bangplad, Bangkok 10700 Tel. 02-497-5200, 5400 Fax 02-497-5201 Lumpini Place Rama 9–Ratchada Phase 1 95 Rama 9 Rd., Huay Kwang, Bangkok 10310 Tel 02-169-3998-9 Fax 02-169-3997 Lumpini Place Rama 9–Ratchada Phase 2 99 Rama 9 Rd., Huay Kwang, Bangkok 10310 Tel. 02-169-3755-6 Fax 02-169-3754 Lumpini Place Ramindra–Laksi 20 Ramindra Rd., Anusaowaree, Bangkhen, Bangkok 10220 Tel. 02-552-4242 Fax 02-552-4646 “Lumpini Ville” Residential Condominium Lumpini Ville Mary–Sathorn 88 Soi Chan 27, Chan Rd., Tungwatdon, Sathorn, Bangkok 10120 Tel. 02-212-4515 Fax 02-212-4375 Lumpini Ville Phahol–Sutthisarn 23 Sutthisarn Vinijchai Rd., Samsen Nai, Phyathai, Bangkok 10400 Tel. 02-278-4125 Fax 02-278-4128 Lumpini Ville Sukhumvit 77 615 Sukhumvit 77 Rd., Suan Luang, Bangkok 10250 Tel. 02-332-3004-5 Fax 02-331-7526 Lumpini Ville Thailand Cultural Center 601 Prachautit Rd., Samsen Nok, Huay Kwang, Bangkok 10310 ! ( YZ%Z % Z3Y%Z / YZ%Z % Z33 ºÁª 3 Lumpini Ville Ramkhamhaeng 44 11 Soi Ramkhamhaeng 44, Ramkhamhaeng, Hua Mak, Bangkapi, Bangkok 10240 Tel. 02-370-4444 Fax 02-370-4443 Lumpini Ville Ramindra–Laksi 2 Ramindra Rd., Anusaowaree, Bangkhen, Bangkok 10220 Tel. 02-197-9383 Fax 02-197-9090 Lumpini Ville Prachachuan–Pongpet 93 Moo 9 Prachachuan Rd., Bangkhen, Muang, Nonthaburi 11000 Tel. 02-149-3000 Fax 02-149-3001 Lumpini Ville Ramkhamhaeng 26 59/1179 Krungthepkreeta Rd., Ramkhamhaeng 26, Hua Mak, Bangkapi, Bangkok 10240 Tel. 02-300-0500 Fax 02-300-0504

178

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

Lumpini Ville Bangkhae 18/272 Bangkhae Rd., Bangkhae, Bangkok 10160 Tel. 02-482-7500-1 Fax 02-482-7502 Lumpini Ville Ladprao–Chokechai 4 48 Soi Ladprao 51, Saphan 2, Wangthonglang, Bangkok 10310 Tel. 02-196-9886-7 Fax 02-196-9898 Lumpini Ville Ratburana–Riverview 9 Soi Ratburana 6/1, Ratburana Rd., Bangpakok, Ratburana, Bangkok 10140 Tel. 02-490-2001-2 Fax 02-490-2003 “Lumpini Center” Residential Condominium Lumpini Center Happyland Building A, B, C, F, G, H 556/1, 560/1, 568/1, 432/1, 582, 580 Soi Happyland Mall 1, Klongchan, Bangkapi, Bangkok 10240 Tel. 02-374-7270-1 Fax 02-374-7270 Building D 335/1 Soi Happyland Mall 1, Klongchan, Bangkapi, Bangkok 10240 Tel. 02-374-6301-2 Fax 02-377-3072 Building E 557 Soi Happyland Mall 1, Klongchan, Bangkapi, Bangkok 10240 Tel. 02-377-9395-6 Fax 02-378-4370 Lumpini Center Ladprao 111 Building A, B, C, D 58, 60, 62, 64 Soi Ladprao 111, Ladprao, Klongchan, Bangkapi, Bangkok 10240 Tel. 02-370-2698, 02-370-2530 Fax 02-370-2606 Building E, F, G 3041, 3033 Soi Yooyen 111, Ladprao Rd., Klongchan, Bangkapi, Bangkok 10240 Tel. 02-374-8394-5 Fax 02-374-8395 Lumpini Center Sukhumvit 77 577 Sukhumvit 77 Rd., Suan Luang, Bangkok 10250 Tel. 02-332-3803-4 Fax 02-332-3805 Lumpini Center Nawamin 821 Soi Happyland Mall 1, Klongchan, Bangkapi, Bangkok 10240 Tel. 02-184-6118 Fax 02-184-6248 “Lumpini CondoTown” Residential Condominium Lumpini CondoTown Bodindecha–Ramkhamhaeng 120 Soi Ramkhamhaeng 43/1 Wangthonglang, Bangkok 10310 Tel. 02-192-7291 Fax 02-192-7292

Lumpini CondoTown Ramindra–Laksi 4 Soi Ramindra 3, Anusaowaree, Bangkhen, Bangkok 10220 Tel. 02-197-9222, 02-552-3222 Fax 02-197-9221 Lumpini CondoTown Rattanathibes 141 Rattanathibes Rd., Muang, Nonthaburi 11000 Tel. 02-149-5000 Fax 02-149-5002 Lumpini CondoTown Bangkhae 99 Bangkhae Rd., Bangkhae, Bangkok 10160 TEL. 02-482-9000-1 FAX 02-482-9002

Parkview Viphavadi 1 Local Road, Tungsikan, Don Muang, Bangkok 10210 Tel. 02-573-3401-3 Fax 02-573-3401 ˜>[<? ˜ˆ‰< \KJ It is located in the same area as Lumpini Place Sathorn, next H ?  & J $( Tel. 02-287-3388 Fax 02-287-3377

Lumpini CondoTown Ramindra–Nawamin 4 Soi Ramindra 3, Ramindra Rd., Anusaowaree, Bangkhen, Bangkok 10220 TEL. 02-552-3222 FAX 02-197-9221 Townhouse Baan Lumpini Bangbuathong Phase 1,2 222 Talingchan-Bangbuathong, Bangbuathong, Nonthaburi 11110 $ ? ! ( YZ%Z €%€Y33%X ‡ / YZ%Z €%€Y3 Service Apartment Lumpini Residence Sathorn 222 Narathiwasratchanakarin, Tungwatdon, Sathorn, Bangkok 10120 Tel. 02-287-3330 Fax 02-287-3444 Joint Venture Project Lumpini Place Water Cliff 427, 421 Sathupradit Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-673-5596-7, 02-673-6360-1 Fax 02-673-5595, 02-673-6362 Lumpini Suite Ratchada–Rama 3 441 Ratchadapisek Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-212-7909 Fax 02-212-7908 Lumpini Townhome Ratchada–Rama 3 431 Sathupradit Rd., Chongnonsi, Yannawa, Bangkok 10120 Tel. 02-211-9221 Fax 02-673-5595 Grand Heritage Thonglor 21 Soi Akkapat (Thonglor 13), Sukhumvit 55 Rd., Klongtan Nua, Vadhana, Bangkok 10110 Tel. 02-390-0910 Fax 02-390-0911 Grand Parkview Asoke 189 Sukhumvit 21 Rd., Klongtan Nua, Vadhana, Bangkok 10110 Tel. 02-261-3218-9 Fax 02-258-0506

ANNUAL REPORT 2010 L.P.N. Development Public Co., Ltd.

179

Projects Locations Lumpini Suite 1. Lumpini Place (KraiSri) 2. Siphraya River View 3. Lumpini Suite Sukhumvit 41 4. Lumpini Suite Pinklao 5. Lumpini Suite Rama 8 6. Lumpini Suite Ratchada-Rama 3 7. Grand Parkview Asoke 8. Grand Heritage Thonglor Lumpini Place 9. Lumpini Place Sathorn 10. Lumpini Place Suanplu-Sathorn 11. Lumpini Place Rama 4-Sathorn 12. Lumpini Place Narathiwat 24 13. Lumpini Place Rama 3-Charoenkrung 14. Lumpini Place Narathiwatratchanakharin 15. Lumpini Place Rama 3–Riverview 16. Lumpini Place Pinklao 17. Lumpini Place Narathiwat-Chaophraya 18. Lumpini Place Phahon-Saphankhwai 19. Lumpini Place Ratchada-Thapra 20. Lumpini Place Pinklao 2 21. Lumpini Place WaterCliff 22. Lumpini Place Rama 8 23. Lumpini Place Rama 9-Ratchada 24. Lumpini Place Ramindra-Laksi 25. Lumpini Place Ratchayothin 26. Lumpini Place Rama 4-Kluaynamthai Lumpini Ville 27. P.S.T. Condoville Tower 1, 2 28. P.S.T. City Home 29. Lumpini Ville Mary-Sathorn 30. Lumpini Ville Phahon-Sutthisarn 31. Lumpini Ville Sukhumvit 77 32. Lumpini Ville Cultural Center 33. Parkview Viphavadi 34. Lumpini Ville Ramindra-Laksi 35. Lumpini Ville Prachachun-PhongPhet 36. Lumpini Ville Ramkhamhaeng 26 37. Lumpini Ville Ramkhamhaeng 44 38. Lumpini Ville Bangkhae 39. Lumpini Ville Ratburana-Riverview 40. Lumpini Ville Latphrao-Chokchai 4 41. Lumpini Ville Lasalle-Barring Lumpini Park 42. Lumpini Park Pinklao 43. Lumpini Park Riverside-Rama 3 Lumpini CondoTown and Lumpini Center 44. Lumpini Center Happyland 45. Lumpini Center Latphrao 111 46. Lumpini Center Sukhumvit 77 47. Lumpini Center Nawamin 48. Lumpini CondoTown Bodindecha-Ramkhamhaeng 49. Lumpini CondoTown Ramindra-Laksi 50. Lumpini CondoTown Ratanathibet 51. Lumpini CondoTown Ramindra-Nawamin 52. Lumpini CondoTown Bangkhae 53. Lumpini CondoTown Nida-Serithai < 54. Lumpini Tower 55. L.P.N. Tower X( @( ( ( H ? ( ( (!( H ? Townhouse and Comercial Buildings 58. Lumpini Townhome Ratchada-Rama 3 59. Baan Lumpini Bang Bua Thong 60. Baan Lumpini 2 Bang Bua Thong Others 61. Lumpini Residence Sathorn

L.P.N. Development Public Company Limited 1168/109 36th Floor, Lumpini Tower Rama 4 Road, Thungmahamek Sathorn, Bangkok 10120 Call Center: 02-689-6888 www.lpn.co.th

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