MBK: Sustainable Development Report 2017 by Surachet Fungwatthananon

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SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

MBK PUBLIC COMPANY LIMITED 8th Fl., MBK Center Building, 444 Phayathai Rd., Wangmai, Pathumwan, Bangkok 10330 Thailand Telephone: +66 (0) 2853 9000 Facsimile: +66 (0) 2853 7000

www.mbkgroup.co.th

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CONTENTS

MESSAGE FROM PRESIDENT AND CEO

STAKEHOLDERS ENGAGEMENT

RESPONSIBILITY TO CONSUMERS

COMPANY INFORMATION

Company Name : MBK Public Company Limited Nature of Business : Shopping Center and Real Estate Address : 444, 8th Floor, MBK Center Building,

Phayathai Road, Wang Mai, Pathumwan, Bangkok 10330 Registered and Paid-up Capital : 1,707,960,000 Baht

ABOUT MBK GROUP

MBK Public Company Limited and a group of companies operate in eight different businesses:

SHOPPING CENTER BUSINESS - MBK CENTER, THE NINE CENTER RAMA IX, PARADISE PARK SHOPPING CENTER, PARADISE PLACE, GLAS HAUS RATCHADA AND GLAS HAUS BUILDING.

HOTEL AND TOURISM BUSINESS - PATHUMWAN PRINCESS, DUSIT THANI KRABI BEACH RESORT, LAYANA RESORT AND SPA AT LAN TA YAI ISLAND, TINIDEE HOTEL@ RANONG, TINIDEE GOLF RESORT@PHUKET, AND TINIDEE HOTEL@BANGKOK GOLF CLUB.

GOLF BUSINESS - THE COMPANY PROVIDES SERVICES TO FOUR GOLF COURSES, NAMELY RIVERDALE GOLF CLUB, BANGKOK GOLF CLUB IN PATHUMTHANI, RED MOUNTAIN GOLF CLUB, AND LOCH PALM GOLF CLUB IN PHUKET.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

REAL ESTATE BUSINESS, MANAGED BY MBK REAL ESTATE COMPANY AND PLAN

ESTATE COMPANY, IS CONSISTED OF VARIOUS PROJECTS, INCLUDING QUINN CONDOMINIUM RATCHADAPHISEK 17, QUARITZ RAMA IX, PARK RIVERDALE AND RIVERDALE RESIDENCE IN PATHUMTHANI

FOOD SOLUTION BUSINESS, MANAGED BY PATUM RICE MILL AND GRANARY PUBLIC

COMPANY LIMITED AND ITS SUBSIDIARIES, MANUFACTURES AND SELLS PACKAGED RICE UNDER THE BRAND “MAH BOONKRONG RICE,” THE FIFTH FOOD AVENUE ON 5TH FLOOR AND MBK FOOD ISLAND ON 6TH FLOOR OF MBK CENTER, SUKIYAKI NUMBER ONE, HINA JAPANESE RESTAURANT, AND FUYUU UDON.

FINANCIAL BUSINESS IS DIVIDED INTO THREE CATEGORIES, MBK GUARANTEE COM-

PANY LIMITED, PROVIDING RESIDENTIAL MORTGAGE SERVICES TO FOREIGNERS AND SHORT-TERM BRIDGING LOAN, T LEASING COMPANY LIMITED, PROVIDING LOANS FOR NEW MOTORCYCLES, AND MBK LIFE COMPANY LIMITED.

OTHER BUSINESS INCLUDE CAR AUCTION BUSINESS, OPERATED BY APPLE AUTO AUCTION (THAILAND) COMPANY LIMITED AND CO-INVESTED BY JAPAN’S APPLE GROUP WHO HAS EXPERTISE AND LEADERSHIP IN THE ONLINE CAR AUCTION BUSINESS IN JAPAN AND OTHER COUNTRIES. ADDITIONALLY, WE ESTABLISHED MBK DIGITAL COMPANY TO STUDY AND PURSUE ONLINE BUSINESS, BY LAUNCHING ITS WEBSITE, WWW.MBKGO.COM AS ITS FIRST PROJECT. THE WEBSITE OFFERS CREATIVE EXPERIENCE FOR DEAL SHOPPING WITH ONLINE EXHIBITION FORMAT. OFFERING INCLUDES TOURISM, LIFESTYLE, AND DINING DEALS.

SUPPORTING BUSINESS IS THE CORE UNIT THAT ENCOURAGES THE USE OF

TECHNOLOGY TO INCREASE COMPANY’S POTENTIAL AND COMPETENCE IN ITS SUPPORTING ACTIVITIES, REDUCE COSTS, AND IMPROVE THE BACK OFFICE SYSTEM, INCLUDING HUMAN RESOURCE, ACCOUNTING AND BUDGETING, AND STRATEGIC PROCUREMENT MANAGEMENT. THESE DEVELOPMENTS WILL LAY A FOUNDATION FOR “SHARED SERVICES” CENTER, BY CREATING COMPETITIVE ADVANTAGE THROUGH RESOURCE SHARING.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

SUSTAINABLE BUSINESS MANAGEMENT POLICY OF MBK PUBLIC COMPANY LIMITED MBK Public Company Limited puts high emphasis on business operations that are socially, communally, and environmentally responsible, in accordance of the company’s mission in being “A group of companies managed by professionals, that engages in businesses and invests to earn potential and sustainable returns, concentrates on creating net worth, credibility and trust to stakeholders with good corporate governance” for sustainable growth. Whilst incorporating the company’s expertise to create economic and social values, the company has also established sustainable business development policy as an internal guideline, as follows:

CORPORATE GOVERNANCE The company is committed to management practices that adhere to good corporate governance and are in compliance of the law, business ethics, and company’s code of conduct. The practices are focused on preventing corruption and deploring all forms of corruption, allowing the company to operate its businesses with integrity, transparency, and fairness. Such practice leads to stakeholders’ trust and value creation for company in the long run.

FAIR BUSINESS PRACTICES

The company is committed in operating business with transparency and integrity. The company only operates lawful businesses and has ethics in operating businesses with partners in a fair and equitable manner. All practice is based on the lawful and suitable business relationship, politically neutral operation, and guiding policies on anti-piracy and respect for intellectual property.

ANTI-CORRUPTION PRACTICE The company sees the importance of preventing corruption and deploring any forms of corruption to be a part of Thailand’s social and economic development, as well as to create business fairness. The “Policies and Measures against Corruption,” including instructions and processes of related tasks, provides guidelines for the directors, executives, and every employee to follow, granting us the membership of the “Collective Action Coalition Against Corruption” (CAC). The membership indicates clear intention of everyone in our organization in preventing all forms of corruption.

RESPECT FOR HUMAN RIGHTS The company promotes respect for human rights by treating all employee fairly, complying to the human rights and employment laws, as well as complying to the law regarding “Promotion and Development of Life Quality of Disabled Persons” by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them. At the same time, the company also has an appropriate channel and process for all employees to raise their complaints and issues.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

FAIR LABOR TREATMENT The company realizes that every employee is valuable resource and is important to the company in achieving its goals and increasing its capabilities to reach sustainable business excellence. The establishment of suitable employment policies, welfare system, educational support and skill development for employees at all level. The opportunity to grow professionally, happiness creation, and work-life balance are offered to create stability and good quality of life.

RESPONSIBILITY TO CONSUMERS

The company pays attention to customers’ expectation and satisfaction, by enacting management policies and treating all customers fairly under the agreed terms and conditions. In addition, the company also sufficiently and correctly communicates information and news to customers. The customer complaint system for company’s services aims to generate customer’s confidence in the company’s products and services, which, in turn, will result in smooth and sustainable operation.

PARTICIPATION IN COMMUNITY AND SOCIETY DEVELOPMENT The company is committed to promote and support communities and societies by pursuing activities that create the greatest benefits as returns to the communities around the location of the business. The company pursues various activities, including volunteering, development of community, society, and educational institutions, preservation of local culture and tradition, as well as the ongoing communication for complaints that may lead to sustainable development of the communities and societies.

ENVIRONMENTAL MANAGEMENT The company assumes the role and responsibility in protecting the environment at every process, both within and outside of the organization through the promotion of energy conservation and efficient resource management, as well as increasing awareness of environmental protection among the employees, educating customers and the public, and partnership expansion to keep the balance between business operation and environmentally friendliness.

INNOVATION AND INNOVATION PROMOTION The company gives importance to developing innovation within the organization, by focusing on value-creation innovations in the forms of products, services, and processes of the company, society, community, environment, and key stakeholders. In addition, the company also consistently promotes innovation and creative content to all stakeholders. For this policy, the executives must be a good role model, while employees of all level must understand and follow to achieve the organization’s objectives and targets.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

AWARDS AND RECOGNITION

2017

ENVIRONMENT AND ENERGY CONSERVATION Thailand Energy Awards 2017

Honorary award for energy conservation in the category of best team of energy management building controller in 2017, MBK Center by Ministry of Energy

GOOD LABOR PRACTICE

Award for Outstanding Business Operator in the category of labor relationship and welfare 2017 by Department of Labor Protection and Welfare, Ministry of Labor

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

TOURISM PRACTICE

“2017 Top 10 People’s Choice Awards Thailand”

Shopping Center Categorized Present to MBK Center Voted By Chinese Tourists By Tourism Authority of Thailand (TAT)

2017-2019 Service and Safety Standard in Shopping Center for Tourism MBK Center By Department of Tourism, Ministry of Tourism and Sports of Thailand

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ABOUT OUR SUSTAINABILITY DEVELOPMENT REPORT IN 2017

REPORT APPROACH

This 2017 Sustainability Report is the second report regarding MBK Public Company Limited. The objective of this report is to reveal our economic development; social and environmental performance on sustainable development during the period of 1st January to 31st December 2017 for our stakeholders. This report contains standard disclosures from The Securities and Exchange Commission, Thailand

REPORT SCOPE Scope of this report was determined by considering the relevance to the business, and the operation performance under MBK GROUP’s main business; MBK Center etc.

STAKEHOLDER ENGAGEMENT Our stakeholders both internal and external, who are affected by our business include; shareholders, competitors, creditors, customers, employees, the community, society, government and related government agencies. The company conducts itself with appropriate responses and cooperation towards stakeholder’s expectations. This is done fairly and equally which helps the Company’s sustainably and steady growth. These stakeholders have been included in the 2017 sustainability report.

For additional information, please refer to 2017 annual report page: 130-163

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

STAKEHOLDERS ENGAGEMENT

STAKEHOLDER GROUP

SHAREHOLDER, COMPETITORS AND CREDITORS

EXAMPLE OF ENGAGEMENT METHOD

p Annual General Meeting

p Good Competitors

p Annual Report

p Transparency and accountability

p Quarterly corporate performance announcement via company website

p Fairly and equitably treatment of shareholders

p Financial analysis meeting

p Follow the agreed upon conditions and rules.

p Frequently phone call

p Sustainable return on investment

p Newsletters

p Follow the agreed upon conditions

p Satisfaction survey

CUSTOMERS

RESPONSE TO STAKEHOLDER’S EXPECTATION

p Customer visit p Frequently phone call

p Fairly and equitably treatment of customers p Maintain and keeps good relationship p Customers’ safety

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

STAKEHOLDER GROUP

EXAMPLE OF ENGAGEMENT METHOD p Newsletters every 2 months p Annual employee engagement survey

EMPLOYEES

RESPONSE TO STAKEHOLDER’S EXPECTATION p Fairly and equitably treatment of employees p Happiness at workplace

p Frequent internal communication via electronic tools

p Knowledge Management

p Employee Performance assessment during mid-year and year-end period

p Fairly wages and benefit

p Employees opinion sharing

p Opportunities of career p Occupation Health and Safety p Compensation

p Sending SMOOTHĪ Postcard p Grievance mechanism (Whistle Blowing)

p Quarterly community and society relation activities

p Community relations p Engage employees to take good care of their communities and environment p Follow environment’s laws and rules

COMMUNITY, SOCIETY

p Support green products p Sponsorship of community activities p Development and troubleshooting for society and communities

GOVERNMENT AND RELATED GOVERNMENT AGENCIES

p Continually participate or support in activities and programs

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

p Follow the agreed upon conditions and rules p Anti-corruption

GOOD CORPORATE GOVERNANCE GOOD CORPORATE GOVERNANCE The company’s Board of Directors has placed strong emphasis on making the company’s business management appropriate, transparent, fair and accountable. The Company has established a Corporate Governance Code “CG Code” for listed companies 2017 by the Securities and Exchange Commission and Thai Institute of Directors which will bring about transparent business management and control as well as stability for the Company’s business operations.

In 2003, the company established a Good Corporate Governance policy which was in line with the Good Corporate Governance promoted by the Stock Exchange of Thailand. The company also prepared a manual of business ethics and a code of conduct for directors, executives and staff. The written information was disseminated to all the company’s executives and staff to sign an acknowledgement of compliance. The company provides a manual of its Corporate Governance policy and code of business conduct of MBK Public Company Limited. The contents include the Good Corporate Governance policy, the code of business conduct, the code of ethics for directors and executives, and the code of ethics for employees by reviewing the company’s Corporate Governance policy and code of business conduct annually. They are given to all directors, executives and employees for their acknowledgment, sign-off, training and practice. The information, knowledge and the related news on the Corporate Governance are also distributed to the executives and employees regularly through the company’s internet and website. The orientation activities organized for new executives and employees also cover the topics on Corporate Governance as well as the code of ethics for executives and the code

of ethics for employees for their information and practice guidelines. Moreover, when the company makes their investments in various areas of businesses, it applies the principles of Good Corporate Governance to the business operations of those subsidiaries. The company’s Board of Directors is mainly determined to conduct all the company’s business affairs in an appropriate, transparent and fair manner. The adherence to the principles of Good Corporate Governance will not only enhance the confidence of all concerned, including its shareholders and stakeholders, but also will add value to the company in long term. In the year 2017, the Board of Directors considered and revised the Corporate Governance Report of Thai Listed Companies’ regulations by streamlining the company’s Good Corporate Governance to be in line with the guidelines and regulations of ASEAN CG Scorecard standard. The objective was to develop Corporate Governance to be in accordance with the Thai Institute of Directors’ CGR Project and in compliance with the anticorruption policy. Moreover, the Board of Directors considers and reviews “Corporate Governance Code “CG Code” for listed companies 2017 by Securities and Exchange Commission. The Board reviews guidelines following CG Code and mechanism for performance and regulation. The CG Code is used and developed in order to regulate the performance, the organization’s decision making and risk management in order to achieve the goal to make profits in the long term and create value to the business sustainably. This will benefit the company, shareholders, stakeholders, and interested parties. For additional information, please refer to 2017 annual report at “Good Corporate Governance” page: 135-159

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ANTI-CORRUPTION THE ASSESSMENT OF RISK CAUSED BY THE ANTI-CORRUPTION

The Board of Directors is well aware and places importance in operating the business on the principle of honesty, transparency and fairness to all parties, as well as operates the business with a focus of practicing in accordance with the rules of the established laws, the regulations and ethics in order to build confidence for employees and all stakeholders.

The company specifies that the corruption-involved risk assessment is conducted by the internal unit within the organization through analyzing, assessing, and reviewing the risk management involving the organization’s both internal and external factors. Then, the Strategic and Operational Management Team takes responsibility for the coordination, consulting, collection of information about the risk assessment, measures, solutions, and guidelines on controlling corruption-involved risk from various involved units in order to propose it to the Risk Management Committee (RMC) for consideration. It also verifies information about corruption-involved risk operations and reviews corruption-involved risk.

Moreover, in 2011, the company declared its intention to participate in the anti-corruption campaign “Private Sector Collective Action Coalition against Corruption”. The campaign includes 8 organizations - Thai Institute of Directors, Thai Chamber of Commerce, Foreign Chamber of Commerce in Thailand, Thai Listed Companies Association, Thai Banks Association, Federation of Thai Capital Market Organizations, Federation of Thai Industries, and Tourism Council of Thailand in order to declare its intention to operate a transparent business, and stand against corruption with the consideration of the utmost benefits of all stakeholders. On 14th October 2016, the company was certified as a member of Thai Private Sector Collective Action Coalition against Corruption (CAC) by the CAC Committee. This indicated the Company’s determination to implement its anti-corruption intention obviously.

THE ANTI-CORRUPTION POLICY The company sets out its Anti-Corruption policy by prohibiting directors, executives, and employees of the company and its subsidiaries from directly and indirectly having or involving in every form of corruption for the benefits of themselves, or the company, or other parties involving with them. The Anti-Corruption policy is thoroughly declared on the company’s website www. mbkgroup.co.th

THE GUIDELINES ON REGULATIONS AND INTERNAL CONTROL OF ANTI-CORRUPTION

The company lays down the guidelines on regulations and internal control of Anti-Corruption by providing sufficient and proper internal control in order to prevent employees from not complying with policies, law, rules and regulations both inside and outside the organization; submitting accurate and transparent financial reports; managing risks involving corruption; regularly providing an audit process of procurement by clearly specifying steps and levels of procurement approval for the sake of accuracy and transparency; and regularly providing examinations and reviews of the compliance with the Anti-Corruption policy in order to conform to changes in business, rules and regulations, and the law.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

THE COMMUNICATION AND TRAINING The company disseminates and publicizes its policies on Anti-Corruption and Whistle Blowing and Complaints to the directors, executives, and employees of the company and its subsidiaries, and the public through the companyâ&#x20AC;&#x2122;s website. The company also campaigns to send a letter to its every customer, business trader, and supporter in order to ask for cooperation in abstaining from giving presents during the New Yearâ&#x20AC;&#x2122;s celebration or other occasions in accordance with guidelines of the Private Sector Collective Action Coalition against Corruption. Moreover, the company provides training on Good Corporate Governance and anti-corruption by executive management and managements of the company for the employees of the company and its subsidiaries at all levels at all levels receive continuous training on Good Corporate Governance and Anti-Corruption annually in order to acknowledge and abide by the common practice within the organization.

The company issues the policy on Whistle Blowing and Complaints caused by abuses of law, rules, regulations, ethics, improper code of conduct, and behavior implying corruption of anyone in the organization and any stakeholder from every group. This policy allows a mechanism for protecting anyone who informs or complains about corruption, informants in good faith, and anyone who opposes corruption. Clues and complaints are treated as strictly confidential in order to give the informants, complainers, and anyone who opposes corruption confidence. The clues and complaints can be informed through channels of communication as follows:

THE LETTER TO PERSONS INDICATED ABOVE CHANNEL

THE E-MAIL CHANNEL p The Audit Committee

THE POLICY ON WHISTLE BLOWING AND COMPLAINTS

E-mail address: ac@mbkgroup.co.th p The President and CEO E-mail address: asksuvait@mbkgroup.co.th p The Senior Executive Vice President of the Internal Audit Division E-mail address: ia@mbkgroup.co.th

MBK Public Company Limited 8th Floor, MBK Center 444 Phayathai Road, Wang Mai, Pathumwan, Bangkok 10330

THE PRESIDENT AND CEO CHANNEL MBK Public Company Limited P.O. Box 444 Rong Muang Post Office, Bangkok 10330

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

THE OPERATIONAL PROCEDURE FOR WHISTLE BLOWING AND COMPLAINTS 1. The person who receives a complaint has to inform an authority in charge of this complaint within 7 working days of receiving it. 2. A compliant relevant to or implying corruption has to be submitted to the Operation Audit Department and the Management Audit Department. Also, it has to be submitted to the Corruption Examination Committee or the Corruption Investigation Committee in order to conduct an inquiry to discover the facts. The CEO will be notified of it. 3. A complaint irrelevant to or not implying corruption has to be submitted to the Human Resources Management Department according to the specified regulations. The CEO will be notified of its action result. 4. The Corruption Examination Committee or the Corruption Investigation Committee considers the facts and directs action to further follow the company’s procedure.

THE PROTECTION OF INFORMERS, COMPLAINERS, INFORMANTS, OR ANYONE WHO OPPOSES CORRUPTION

The company will afford the protection of informers, complainers, or informants as follows: 1. The identity of informers, complainers, or informants is not disclosed. If necessary, only essential information is revealed with regard to their safety and risks posed to them and concerned parties.

2. Their work is not affected nor changed such as disemployment, suspension, job mobility, intimidation or any action unfair to informers, complainers, informants, or anyone who opposes corruption. 3. The person who acknowledges a complaint or information relevant to the complaint has to keep it confidential and undisclosed to other people with regard to their safety and risks posed to them. In intentional contravention of this, that person will be face disciplinary actions and/or legal actions depending on circumstances.

COLLABORATION WITH OTHER PARTIES MBK GROUP partners with the public and private sectors, under “Collective Action Coalition Against Corruption” (CAC), by establishing anti-corruption policies and measures as a practical guideline and baseline for collaboration. By issuing the rules on giving and accepting gifts, meals, or any benefit of the MBK GROUP, the company requests that the employees would refrain from accepting gifts from business operators, shops, customers, business representatives or any returns from a person or organization that is working with the company or has a desire to work with the company, as a representative or directly. In ddition, the company also issues letters, requesting employees’ cooperation on the issue of accepting or giving gifts that are valued higher than what the company specifies. In addition, the company also issues a letter to business customers and partners of the MBK GROUP for their cooperation not to giving gifts to executives or employees in the MBK GROUP during the New Year or any other occasion.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

FAIR BUSINESS PRACTICE FAIR COMPETITION COMPANY’S STRATEGIC GOAL

The company’s Board of Directors clearly establishes its vision, mission, business directions, policies, strategies, and targets through reviewing them annually. They serve as guidelines for the management in formulating business plans and budgets as well as future business expansion plans in order to enable the company to further achieve continuous growth and stability.

POLICIES ON REVIEWING THE STRATEGIES, VISION AND MISSION MBK Public Co., Ltd. specifies/reviews its vision, mission, strategies, and action plans annually by specifying a 5-year time frame for long term planning in order to harmonize with financial goals and an investment cycle of the business. It is submitted to the Board of Directors for consideration before the implementation. In every quarter, operations are reviewed by the Strategic Plan Management and Balance Scorecard Committee at business group level in order that the organization can adapt itself to situations and business environment which are changing. For 2018-2022 time frame, the company’s strategic goals are specified as follows:

STRATEGIC GOALS 1. To efficiently manage the business portfolio for the highest benefits under an acceptable risk level. 2. Continuous growth income rate and net profit of more than 10% per year. 3. To be the company group with service mind for customers and efficient working procedures. 4. Top rank company group that employees are proud of and trading partners want to work with. 5. The Group of companies focusing on digital and innovation. 6. To focus on building the brand of MBK GROUP.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

TRANSPARENCY IN DISCLOSURE AND REPORTING TRANSPARENCY IN INFORMATION DISCLOSURE TO SHAREHOLDERS AND INVESTORS (Issues regarding sustainable development)

To enable the company to develop sustainably and appropriately for the urgent needs of the organization and society, the company sees the importance in the issues, as well as the participation opportunities for sustainable development in terms of the shareholders and investors.

Objective

Scope of work

Risks and opportunities

To generate confidence among shareholders and investors that the company operates in compliance with the regulations and discloses information transparently and fairly. The company respects everyone’s rights, treats shareholders and investors fairly, accepts opinions and inquiries, as well as create mutual understanding between stakeholders, so that the company can operate its businesses sustainably. The company operates in the manner that is in compliance with the related rules and standards, including the Securities and Exchange Commission (SEC)’s regulation on generating, sharing, communicating, and publicizing useful information for investors and the public who follow such news for regular risk management and opportunities.

SHAREHOLDERS AND INVESTORS PRACTICE AND GUIDELINE To take care of our shareholders and investors, the company sees the importance of communication and information disclosed, as follows: 1. Information on the company’s business operation 1.1 Focus on the business performance and growth 1.2 Short- and long- term operating strategies, while taking into consideration the involved risks 1.3 Long term plan in the future 2. Multiple communication channels (as mentioned earlier) 2.1 The Annual General Meeting of Shareholders 2.2 Press conference on company’s performance and information disclosure on the company’s website 2.3 Meeting the analysts event 2.4 Company Visit activities 3. Results from such practice 3.1 Shareholders and investors are regularly informed of the progress, performance, and strategies. 3.2 The company is now aware of the interests, inquiries, and opinions from shareholders and investors and applies them to decision making process of related matters.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

TREATMENT OF SHAREHOLDERS AND INVESTORS

Complaints can be inform ed through channels of communication as follows:

1. Phone: 02 853 9000 or Call Center 1285 2. Website: www.mbkgroup.co.th 3. Emai l: Inv@mbk-center.co.th 4. Receiving Point: th p In the office area, 8 floor, MBK Center p At complaints box on each floor at MBK Center

The Annual General Meeting of Shareholders

The company organizes the annual general meeting of shareholders to allow shareholders, the company’s owners, to participate in decision making on important issues that are not assigned to the board of directors of the company to manage, including significant transactions that may impact financial status and company’s performance and important business decisions.

Quarterly performance information disclosure on the company’s website

Participation in analyst meetings

The company is responsible for disclosing important information in a timely manner, so that investors and shareholders are informed of important information needed for investment decisions, including buying or selling securities. The company discloses its performance information quarterly on the company’s website. The company organizes “Company Meets Analysts” activities in order to inform investors of the company’s information and performance.

Company Visit

Whistle Blowing and Complaints

The company provides opportunities to value investors (VI) to meet and join the conference, summarizing the company’s performance at the company’s meeting room. The company issues the policy on Whistle Blowing and Complaints for any stakeholder from every group. Including clues and complaints are treated as strictly confidential in order to give the informants, complainers, and anyone who opposes corruption confidence.

FAIR BUSINESS OPERATION AND SUSTAINABLE VALUE CREATION WITH BUSINESS PARTNERS Policy of partner treatment, the company always operates with equality, honesty, and transparency. The company works to retain mutual benefits with every type of partner fairly and ethically, by following the terms and conditions, specified in the agreed contracts and the law. Our objective to create stakeholders’ confidence in working with the business groups of the MBK GROUP that adheres to anti-corruption policy and corporate governance Policies and Regulations in Selecting the Trading Partners 1. Established the regulation in selecting and evaluating trading partners 2. Open bidding and select trading partners transparently, fairly and appropriately by the company’s procurement committee. 3. Compile appropriate contract form. 4. Provide steps of procurement and tracking system including internal control to ensure that the conditions are practices accordingly From the satisfaction assessment, we are aware of the comments from both partners and users, which can be used to develop and improve the operation, in alignment of the company’s policies.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

THE NON-INFRINGEMENT OF INTELLECTUAL PROPERTY OR COPYRIGHTS POLICIES AND REGULATIONS RELATING TO NON-INFRINGEMENT OF INTELLECTUAL PROPERTY AND COPYRIGHTS The company forbids employees to use any copyright work in the companyâ&#x20AC;&#x2122;s advertising media, print media or in any work without permission from the copyright owners. If any is used without permission it will be considered as piracy.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

RISK MANAGEMENT MBK Public Co., Ltd. enforced risk management in order to conform to strategies and operations by covering all levels - from MBK GROUP, Business Unit (BU), key lines, Sub Business Unit (SBU), and MBK Center - in order that the organization can achieve its objectives and goals set at each level. Risks at all levels of the organization and may directly affect the business can be divided into 5 aspects that may directly affect the business as follows: Strategic Risk, Operational Risk, Financial Risk, Compliance Risk, Hazard Risk.

RISK MANAGEMENT COMMITTEE OF MBK GROUP THE DUTIES AND RESPONSIBILITIES

1. To impose MBK GROUPâ&#x20AC;&#x2122;s policies and guidelines on risk management in order that MBK GROUPâ&#x20AC;&#x2122;s operations reach its objectives and goals. 2. To analyze and evaluate incurred or possibly incurred risks at a level of MBK GROUP continuously and annually. 3. To consider, approve and review risk management plans of MBK GROUP annually. 4. To review and monitor risk management performance of MBK GROUP regularly. 5. To report to the Board of Directors and communicate risks and major risk management to the Audit Committee. 6. To support, follow up and develop risk management of MBK GROUP regularly.

MBK Public Co., Ltd. realizes the importance of risk management as an important mechanism and tool to help the organization achieve the target objectives and goals. Therefore, the company has set up a risk management policy that focuses on the improvement of the risk management system according to the good corporate governance guidelines. There is also an integrated risk management that is implemented systematically and consistently throughout the organization.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

OUR EMPLOYEE OUR EMPLOYEE The company is committed to respect for human rights, fair treatment of all employees, and strict compliance with the law relating to human rights and employment. The company establishes clear policies regarding recruitment and employment. Besides, the company also complies with the law regarding â&#x20AC;&#x153;Promotion and Development of Life Quality of Disabled Personsâ&#x20AC;? by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them.

In 2017 we have the 4 disabled employees and 66 elderly employees which have still able to work for the company which this policy accordant with the government policy to step into elderly society in near future. (The information of employees is provided till 31 December 2017)

Total employees in 2017 :

By gender :

and

131 345 64 2

Under 30 years old :

people

Between 30 to 50 years old :

people

Between 50 to 60 years old :

employees

By age :

More than 60 years old :

people people

** Disabled employees: 4 people ** Elderly employees: 66 people

544 270 274

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

males

females

The company promotes work culture, under © SMOOTH , by making employees feel that they are valuable to the organization from the first-day impression with warm welcome, work and behavior advice, to activities like MBK Building Culture for new employees to create good relationship between employees. Such programs aim to help employees understand the corporate culture, while leadership development activities, like future manager development curriculum, promote interdepartmental collaboration. In addition, the company also gives the opportunity for employees to express their opinions and participate in developing the organization through Openness culture and “Dialogue,” the conversation for creative and free brainstorming without arguments. Dialogue is organized for employees and executives regularly, resulting in employee’s courage in expressing their opinions. The company also establishes a committee and working team, comprised of representatives of different

departments, to work together in driving the corporate culture and knowledge management. This is to encourage employees to act as the organization expects. Useful knowledge is also compiled through different channels, such as campaigns promoting employees to behave, as corporate culture specifies, to move the organization to the targeted success.

EMPLOYEE ENGAGEMENT SURVEY The employee’s engagement survey is the key tool to continue to check in with employees to evaluate if they are making progress and their company’s engagement. The company is continuously at least once a year to focus area and start implementing improvements and developments to provide the atmosphere for the employees. p The result of employee engagement survey in 3 years • In 2015 68% • In 2016 65% • In 2017 70%

RECRUITMENT RECRUITMENT AND ALLOCATION OF EMPLOYEES The human resource management department plans to recruit for new employees, according to the annual headcount plans and the corporate structure, approved by the board of director. The company recruits by considering different recruitment methods in obtaining candidates who have qualifications, as specified in the

headcount request form, and skills specified for each position. Such recruitment process is specified in the documents for ISO system on the recruitment of employees at all level. There are two recruitment methods: 1) Internal announcement within the MBK for all MBK employees through e-mail intranet and bulletin board and

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

2) External recruitment - We publicize our job openings on various channels, including website, external recruitment, roadshows to educational institutions, Career Day, Mini Career Day, and vocational training from different institutions. Our job postings happen in tandem internally and externally, however our practice is to first consider the internal staffs of MBK GROUP, as they have a better understanding of the corporate culture and organizational values, enabling them to use their experience in their new tasks. The next group being considered is the applicants from the surrounding communities, due to the convenience in their commute. Additionally, the Company has a

diversity policy in accepting employees of all religions, without any prejudices. The company also accepts people with disability as our employees. To our recruitment process in terms of speed and quality that fits the business needs, Human Resource Department reviews the speed of the recruitment process and proposes to reduce the processes. The executives approve the new recruitment process. The Human Resource Department currently uses Functional Test and Competency-based interviews as parts of the selection criteria that are focused on the employees’ fitting qualities to the corporate values. The values are applied to the selection process that is aligned with the corporate culture and direction.

BENEFITS

The company establishes policies on compensation, according to the evaluation of the employee’s work and capability, in various forms, for instance, salary increase, bonus, result-based rewards, and commission. The compensation payout policy supports the result-driven culture of the company, while creating incentives for employees to work and produce excellent results, so that the company can achieve the specified targets. Balanced Scorecard (BSC) and Key Performance Indicator (KPI) concepts are utilized as tools for result-oriented management. Additionally, while Core Competency is set

to create one unified organization, Functional Competency enables success in achieving targets and objectives. The performance and competency evaluations are then used to manage a fair compensation payout, resulting in a better relationship between employees and the organization. Moreover, the competency evaluation is also used to create individualized development plan to ensure that employees receive appropriate trainings for effective and efficient performance, which will impact the company’s overall performance.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

COMPENSATION AND WELFARE MANAGEMENT

The company also establishes a welfare committee at each business operation location. Employees are selected through an internal election process to work on the effectiveness of the company’s welfare, to manage welfare and privileges for all employees and their family.

This is to ensure that the employees will receive superior welfare than that specified by the law and that employees of the same level will receive the equitable level of welfare, without gender, nationality, and age or religion discrimination.

LABOR ECONOMICS WELFARE

THE AMOUNT SENT TO THE COMPANY’S PROVIDENT FUND RANGES BETWEEN 5 – 10% OF SALARY, TOTALING TO 22,421,017.47 BAHT, FROM THE MEMBER POOL OF 416 EMPLOYEES AND EXECUTIVES FROM 544 EMPLOYEES.

1. Annual bonus payout 2. Funeral assistance welfare 3. Provision of company’s uniform 4. Group insurance for employees, including life, accident, and health insurance 5. MBK GROUP’s savings cooperative 6. Provident fund 7. Legal rights to take vacation are, as follows 30 days of sick leave, 6 days of business leave, 5 days of special business leave (for funerals of father, mother, children, and partners), 90 days of maternity leave (including at least 45 unpaid days), 7-15 days of monk ordination. 8. Annual leave 6-15 days

Not only the company provides welfare to all employees as required by the law, the company also proceeds to provide superior welfare than that required by the law, in the aspects of labor economics, self-development or education opportunities, health initiatives, family welfare, and socially responsible welfare.

WELFARE FOR SELF-DEVELOPMENT OR EDUCATION OPPORTUNITY 1. 2. 3.

Organize training programs Support employees in attending training programs from external institutions The company has library service, where book lover club takes care of the borrow and return of books

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

HEALTH WELFARE 1. 2. 3. 4. 5.

The company passed the Measures to prevent and resolving drug abuse issue at workplaces The company organizes health promotion activities, for example, anti-oxidant check up to promote health awareness among the employees and weight loss competition that lasts three months, where the participantsâ&#x20AC;&#x2122; BMI are measured. Allocate the space in front of MBK Tower for employees to exercise Organize annual health check-up, flu shots, hepatitis B vaccination to promote health among employees and to diagnose for diseases and abnormalities in the body for better health of employees Organize MBK Sports Day to encourage all employees to take care of their health, promote teamwork, create good relationship between departments, and enable employees to showcase their sports skills

COMPANY ENGAGEMENT ACTIVITIES 1. 2. 3.

Organize clubs and leisure activities Recognition for model employee to recognize and encourage employees to exemplify desirable characteristics. Three types of recognitions are 1) Companyâ&#x20AC;&#x2122;s loyalty for employees who work for 10, 15, 20, 25 and 30 years, 2) Commitment in the organization (no sick days, late days, nor absence), and 3) Love the organization (no health claims and no sick leaves) Organize birthday party for employees as an opportunity to relax and create happiness for employees, under the Happy 8 concepts. The party is a small-group party, sharing a meal and playing games, while executives join in to wish happy birthday and employees blow the candles and cut the cake together.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

HUMAN RESOURCE DEVELOPMENT AND READINESS ENHANCEMENT Training is one of the essential elements of the company’s human resource development that is focused on the development of employees of all levels to gain competency, enabling them to be more capable and competitive, compared to those of other leading companies. Eventually, our employees will be able to innovate and improve the organization consistently to become a ceaselessly advancing and sustainable company. The Company establishes training road map for employees, which is used as the Master Plan for training and human resource development each year.

HUMAN RESOURCE DEVELOPMENT CURRICULUM 1. Core Course - to emphasize desirable attitudes and behaviors that are aligned with SMOOTH©, the corporate values, to promote corporate culture among employees, and to achieve the organization’s commitments, while aligning with the corporate business plan 2. Functional Course - to increase the knowledge and understanding, as well as develop the skills for employees in different professions, or to reiterate the scope of work that the employees are responsible in their roles. The company sets individual KPIs in the training hours for training or on-the-job training. 3. Managerial Course - to increase knowledge and develop management skills for employees in the management level, from the manager rank and above, so that they can effectively manage tasks, teams, and organization, while being the change leader effectively. Managerial Competencies are:

3.1) Leader of Change 3.2) Decisiveness 3.3) People Development and are developed through participations in different committees and working teams, learning from practice, and company visits to other organizations. The Scholarships The Company has adopted a strong will to support employees to increase their knowledge and abilities, and develop their potential, and want to study further by providing scholarships for junior high school, senior high school, bachelor’s and master’s degrees in order to increase opportunities for employees to selfdevelop to have progress and succeed in their career path. Moreover, in promoting and supporting business ethics and practices, the company organizes “Good Corporate Governance” training session, where the content is focused on ethics in business operation towards stakeholders and personal ethics for oneself, colleagues, company, customers, and society. Executives are lecturers for these sessions and it is a compulsory curriculum that all employees must attend every year. Human resource development department gives high importance in evaluation of results and effectiveness of the learning system and curriculum development in support of strategic objectives, as well as the summary of development and learning as data for future strategic planning. In 2017, employees and executives attended training to develop their potential with average training hours, as follows,

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

IN 2017, EMPLOYEES AND EXECUTIVES ATTENDED TRAINING TO DEVELOP THEIR POTENTIAL WITH AVERAGE TRAINING HOURS, AS FOLLOWS,

EMPLOYEE RANKS

COLLECTING TRAINING HOURS

Management level (Rank 12 and above)

6,653.50

Operational level (Rank 1 – 11)

16,796.50

Temporary

Total

29 23,479 * 1 Employee received a scholarship in Master’s degree

HUMAN RIGHTS Human Rights Management In the guideline of human rights management, the company is committed to respect for human rights, fair treatment of all employees, and strict compliance with the law relating to human rights and employment. The company establishes clear policies

FAIR TREATMENT OF LABOR

regarding recruitment and employment. Besides, the company also complies with law regarding ‘Promotion and Development of Life Quality of Disabled Persons’ by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them.

The company sets up a welfare committee who has the responsibility of surveying, investigating, promoting, and developing the company’s welfare management system that is aligned with and supports the organization’s vision, strategies, targets, and values. Effective welfare

system aims to improve employee’s quality of life, physically and emotionally. The committee also joins the discussion with the employer in setting welfare to employees and provides opinion and guidelines in providing beneficial welfare to employees. In addition, the company also has a system, instruction, and process to consider the employee’s complaints and has investigation procedures for cases where employees violate rules related to fair work.

HEALTH AND SAFETY

WORKPLACE SAFETY

LABOR RELATIONSHIP MANAGEMENT

The company sees the importance and necessity in having its own healthcare system and safety, while operating its businesses, to ensure that employees and other related persons are safe from accidents and diseases from workplace. In 2017, there was no employee who falls sick or gets into an accident at work.

HEALTH

1. Annual health checkup for employees 2. Nurse room for temporary rest, Nurse and doctor availability at the nurse room for treatment 3. Medical equipment and modern medicine provision for employees’ daily usage

The company complies with the Compensation Act B.E. 2537. The company makes deposits into the compensation fund, as required by the law, as the capital to provide to employees if they face danger at work. In addition, the company has a committee for occupational health, safety, and workplace environment who is responsible for exploring, investigating, promoting, and developing safety, health and workplace environment system, as well as campaigning and promoting the drug abuse prevention system at workplace. This is aligned with and supports vision, strategies, targets, and values of the company to ensure that safety, health and workplace environment system and drug abuse prevention system follow international standard.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

RESPONSIBILITY TO CONSUMERS VALUE CREATION IN SERVICES FOR CUSTOMERS The company operates its businesses with a focus on continuous and sustainable growth. The company emphasizes business growth together with renters’ satisfaction, by paying attention on the management and relationship building with customers. Customer satisfaction is regularly assessed from the first contact with the company and after receiving service. The company is open for customers’ opinion and suggestions through various channels. Market research is also executed to study

behaviors of Thai and foreign customers, to understand their changing needs and expectations and utilize the information to develop the organization’s strategies each year, including product and services strategy. The company also has a process to select stores that sell desirable, quality, and affordable products. The satisfaction assessment will then be summarized for executive and related person’s report and used to analyze and improve the business continuously.

SUSTAINABLE VALUE CREATION FOR BUSINESS PARTNERS The company creates renter’s database, manages renters’ relationship (Customer 360 degree), and uses the CRM system in MBK GROUP to introduce value-added products or offer special privileges to their specific needs of the renter and service user. The company also established procedures for renters’ management and relationship management through our activities that the Company organized regularly throughout the rental period with both prospective and existing renters. Entrepreneur meetings, focus groups, and renters’ satisfaction surveys are in place. In the cases where renters have inquiries, they may submit their request or complaint via wesite, Facebook, suggestion box, call center, information counter and Smart Info Service kiosk for quick resolution with the received information, according to the complaint management procedure.

Website

Facebook

Suggestion Box

Moreover, the company also monitors all comments on the quality of products and services for immediate input. Our process also includes inputing the information of any irregularities reported from information counter, Smart Info Service kiosk, and Call Center during the shopping center’s hours (10.00 - 22.00hrs). This enhances our renters’ convenience and safety during the shopping center’s operation, including after-service assessment, satisfaction surveys of marketing activities, and

Call Center

Information Counter

Smart Info Service

post-purchase customer surveys. All information collected from all channels are recorded by the central team that analyzes the issues, proposes resolutions, and filters emergencies and contingency issues. The information is then compiled for meetings to consider the priorities and speed in resolving the issues, improving the effectiveness of the processes, or issuing satisfaction surveys in the next year.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

CUSTOMERS’ VOICE LISTENING AND MANAGEMENT

The company sets up different methods of customers’ voice listening for those with different lifestyles in order to retrieve information or learn from customers, for example, the shop operators’ meetings and customers’ satisfaction survey. If customers have other inquiries, they can also contact, request, or complain through call center, information counter, suggestion box, and social media listening. Daily information is collected from MBK’s Facebook and Twitter, as well as other web boards like Pantip, MThai and news sites. Issues are divided into problems and complaints for further resolution. When the company receives complaints, the information will be delivered through the customers’ voice management process, where a committee will track the

resolution or prevention of the issues with the Customer Complain System that collects complaint history from the beginning to resolution. The system ensures that customers’ complaints are tended to effectively in a timely manner. The company also contacts customers to notify the resolution and survey their satisfaction in the resolution/ prevention of the issue, allowing the company to hear customers’ response if they are satisfied with the company’s resolution. If not, the company can rework on the issue again. For any emergency case, related departments will work on initial resolution immediately and contact the customers within 24 hours of receiving the complaint to alleviate customers’ dissatisfaction.

TRACKING CUSTOMERS’ COMMENTS AND SATISFACTION SURVEY

For tracking customers’ comments on the quality of products and services, to ensure immediate input of information, the company collects their afterservice comments at the service point within the specified period of time. For renters, satisfaction survey is in place after maintenance service, contacts with different departments, and marketing activities. For service users, satisfaction survey will be available after using the service of the department stores. The collected information is sent to related departments monthly. If the satisfaction

falls below 80% for any department, it suggests that the organization’s service provision around that time is problematic. Related departments will analyze the issues and find resolution/ prevention to improve the service provision process. For users, they can communicate through the company’s website and Facebook page. For prospective renters, sales will collect customers’ opinions before a visit, by approaching key accounts to collect necessary information for future improvement and planning.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

SATISFACTION ASSESSMENT FOR RENTERS/ CUSTOMERS

1. Information Service 2. Shop Visit 3. Maintenance request/ complaints 4. Bonding activities, e.g. merit making activities, golf competition, training, etc. 5. Marketing activities to increase number of customers and sales, e.g. Thai Boxing, Fight Night, Tattoo Contest, and Good Food from Four Regions

ASSESSMENT METHODS

Customers can evaluate their satisfaction through automatic response system immediately after receiving service through contact no. 02 853 9000 or Call Center 1285 Satisfaction survey on different aspects, twice a year and focus group, four times a year The company will survey satisfaction on the phone, after the issue is resolved. Satisfaction survey on different aspects, twice a year Satisfaction survey after marketing activities Opinion survey after purchase

PROCESS OF MANAGING CUSTOMERSâ&#x20AC;&#x2122; ISSUES AND COMPLAINTS

1. 2. 3. 4.

Notification channels is contact no. 02 853 9000 or Call Center 1285 Complaints are recorded into the customer service system Investigate and resolve Assess satisfaction by a phone call and record the satisfaction score, including customersâ&#x20AC;&#x2122; comments for future service improvement 5. Summary report on the complaints and customer satisfaction score, presenting to executives and related organization for future improvement of products and services

SUSTAINABLE SERVICE DEVELOPMENT 1. Smart Info Service is a combination of search system and Facetime, an innovation that the company develops to respond to the needs of the customers in inquiring for shop location and additional services within the department store. The usage statistics increases consistently, enabling customers to search for shops faster and easier.

2. Call Center system is developed to expand call center services to cover all target groups of the businesses under MBK GROUP. The system provides information and receives comments on any infrastructural problems. It is considered another channel to retrieve information about businesses under MBK GROUP for the highest satisfaction of customers.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

DEVELOPMENT AND RENOVATION OF DEPARTMENT STOREâ&#x20AC;&#x2122;S SPACE TO SUPPORT MARKETING ACTIVITIES

STRATEGIES TO TARGET TOURISTS THROUGH TOUR COMPANIES AND GUIDES

The company has been renovating different zones as a response to the changing trends and marketing activities. The renovation increases sales through the year-round activities and promotions. In addition, the development is based on safety, by having regular infrastructural maintenance done in accordance to the standards.

DEVELOPMENT OF MARKETING ACTIVITIES AND COMMUNICATION STRATEGIES

MBK Center remains the leading shopping destination that more than 12 million foreigners visit each year. The figures are increasing every year. The shopping mall is also one of the largest and the most modern centers of mobile phones and electronic devices in Thailand. Therefore, targeted advertising and other tourist-friendly facilities, like Tourist Lounge and Luggage Delivery Service, are created for tourists.

To replicate the success of previous activities and create exciting experience through new activities to attract customers to come back and tell their friends, the company organizes different activities to respond to different lifestyle of customers.

SAFETY OF SERVICE USERS

For service users and surrounding communities 1. The company has the nurse room available for temporary bed rest and simple illnesses. 2. Nurses are available to treat basic illnesses for customers 3. The company has contacts with nearby hospital in sending ambulance to pick up patients, in cases of transfer to be quick and effective 4. The company has modern medical equipment to assist patients, including: 4.1 Medical bag 4.2 Automatic heart defibrillator 4.3 Stretcher 4.4 Emergency wheelchair 4.5 Oxygen kit for patients 5. The company provides safety training to renters and surrounding communities, for example, in-person dangers, fire, etc. 5.1 Educate operators and shopkeepers on fire and earthquakes 5.2 Educate knowledge on safety from fire to food and beverages stores

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

COMMUNITY AND SOCIETY DEVELOPMENT COMMUNITY AND SOCIETY DEVELOPMENT In 2017, MBK Public Co., Ltd. was determined to run the business sustainably and had its corporate governance, which emphasized the importance of the economic, social, and environmental operations, together with making good returns or profits, in order to reach the crucial goal, which was the sustainable development. The company purposefully improved the operations in order to harmonize with every business group under the business operations of MBK Public Co., Ltd.

SOCIAL AND COMMUNITY GUIDELINES To jointly develop the communities, the society, human resources within the organization, and parties related to business operations through boosting knowledge and abilities in order to develop skills and promoting the communities to acquire strength and better quality of life, by emphasizing the importance of these aspects as follows: p Labor and human rights p Human resources development p Hygienic and safety care p Participation of interested parties p Investment for the community development and donations

MBK Public Co., Ltd. emphasized and promoted the potential development, value creation for the society and communities sustainably with the concept of â&#x20AC;&#x153;Thai organization with its green heartâ&#x20AC;? which was based on being harmony with and part of the communities in order to mutual support. The Company participated in taking care of the communities and the society in various aspects such as providing funds for any organization that needed help, providing areas used for organizing the public benefit activities for public agencies, educational institution, foundations, communities, and agriculturists, and providing experts for training in various aspects of knowledge which were useful to communities.

GOALS TO THE SUSTAINABLE DEVELOPMENT p To emphasize employees of MBK Public Co., Ltd. to have good interaction with neighboring communities where our business groups operate. p The Company promotes communities, the society, and interested parties to grow and have better and sustainable quality of life.

DEVELOPMENT STRATEGIES

1. Operations to develop the sustainability of communities and the society such as organizing activities to boost realization of occurred problems and their impacts on the society, actually initiating problem solving for communities and cumulative development in the future. 2. Operations and organizing activities in order to promote the sustainable development within the organization and affiliated business groups. 3. Investment for community development and donations form a good relationship with the society and neighboring communities where business groups operate through supporting the society and communities in projects or activities which have the public benefit in order that the organization and communities co-work to have sustainable and concrete development such as organizing activities which promote the environmental and energy conservation.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

OPERATION FOR SUSTAINABILITY IN THE COMMUNITIES AND SOCIETY “GIFT FOR SHARING : TRANSFORMING WASTE INTO FUTURE” PROJECT MBK GROUP initiated “Gift for Sharing : Transforming Waste into Future” project with the ambition of changing the public’s behaviors, according to 3R concept, to manage waste sustainably. The project is focused on creative activities where stakeholders from various sectors participate. In 2017, we kicked off the project with “MBK WOW DESIGN AWARDS 2017,” the product design contest that is centered on paper waste. We invited designers from across the country to participate and partnered with Saeng Sawang Foundation, Vocational Rehabilitation Center for Persons with Disabilities Phra Pradaeng, and Thungmahamek School for the Deaf, to provide people with physical and hearing disabilities with the opportunities to showcase their dexterity in making these merchandise. These products are available at MBK Social Corner, MBK Center. All proceeds from the sale went towards Rajanukul Institute Foundation to improve quality of lives of the patients with mental disabilities without deducting any expense. The project resulted in more than 900 product designs which were then handmade by children with special needs and people with disabilities from three said organizations above. The “Transforming Waste into Future” Project was consisted of two major projects. First, “Happy Hoarding at End of the Month” activity was organized to increase employees’ awareness of the value of waste, by separating paper and plastic bottles which are the types of trash that occur the most in the company. The separated waste can then be exchanged for useful items at the end of each month. Within the five months of the activities, employees brought in 2 tons of trash and the company then utilized them in numerous ways, including the use of paper waste as main materials for the “Transforming Waste into Future” project.

Another effort, the WOW DESIGN AWARDS 2017 contest was another stage for young people to apply their artistic skills and creativity in designing gifts for sharing from reusable paper. For the contest, there were three categories: daily items, home decors, and accessories. More than 200 team submitted their designs, while three teams of well-regarded designers participated in designing products and providing guidance as team advisors to the winning team. Every design and production techniques of the designers and the contest winners were then shared to people with physical and hearing disabilities under the car of the three participating foundations and schools to enhance their knowledge and skills. Products from “Transforming Waste into Future” are now branded “WOW: Worth Of Waste” and are now available for purchase at Social Corner, MBK Center, while all proceeds will be donated to the Rajanukul Foundation without deducting any expense. The proceeds will be used to invent and produce therapeutic chairs for skill and overall development of those with mental disabilities. “Transforming Waste into Future” is considered a social service activity of MBK GROUP that aims to create sustainability with a holistic approach, consisting of three aspects: environmental, economic, and social. We believe that we can help make the public realize the value of reusable waste, as we can use creativity to transform these waste into beautiful and useful products. Besides, experts from this project also share their knowledge and skills to people with physical and hearing disabilities to spark new ideas, expand their creativity, create jobs, and eventually generate income. Thus, the project certainly yielded an uplift in their standard of life and well-being of those stakeholders.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

SKILL DEVELOPMENT FOR COMMUNITY AND SALENG PROJECT

This project is focused on sharing knowledge in sustainable urban living through “Potential Development for Community and Saleng project. The project aims to develop knowledge bank in urban living to the community and Saleng from The 14-rai Onnut community and 3R Foundation to other communities around them. The 14-rai Onnut community has been widely known for its effective waste management for more than ten years. Most residents are waste traders, or “saleng.” Besides collection, separation, and exchange for income, the residents have fostered very strong relationship and showed that waste can in fact be used to lift their standard of living. Within their community, they established

Zero-Baht store, communal bank for the needy, and community’s kitchen. These activities can be redeemed with waste. By doing so, the 14-rai Onnut community has led their lives with sufficiency, balance, and sustainability, and shared their knowledge to MBK GROUP and its partner, the 3R Foundation, who brought community’s representatives from Pathumwan district to attend the workshop, Skill Development for Community and Saleng Project. The attendees learned the correct way of waste management for the very first step, according to the 3R concepts, then gained hands-on practices from waste separation. Additionally, the workshop also included other methods of waste management, for instance, Recycle Bank and Zero-baht store, while participants would also learn the sufficiency lifestyle from the 14-rai Onnut community, the model community for waste management and sufficiency lifestyle.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ORGANIZE CSR ACTIVITIES FOR THE SOCIETY AND SURROUNDING COMMUNITIES SUPPORT SOCIALLY BENEFITING ACTIVITIES, DONATION, AND ENVIRONMENTAL CONSERVATION MBK Public Company Limited realized the importance of community development and considered it one of the private sector’s duty to participate in sustainable development at every level. We are committed to creating benefits to communities, customers, employees, and stakeholders, by beginning with those surrounding business units, then expanding it to other needy communities. MBK Public Company Limited put high emphasis on knowledge sharing between its employees and the surrounding communities. Not only such activity contributes back to the society, it also fosters sustainable relationship between the organization and community. In 2017, the company organized the following activities:

“START GREEN : DIY VERTICAL VEGETABLE GARDEN” ACTIVITY “Start Green: DIY Vertical Vegetable Garden” Activity was a workshop that was focused on sharing knowledge on using reusable packaging or things around the house for the vertical vegetable garden, where plastic bottles are the main materials in making plant pots. The activity aimed to promote the idea of reusing things around us for creative value creation. Speakers included Khun Nakorn “Prince” Limpakuptathavorn or Prince Veggie, the

expert in organic farming, and Khun Pe Tamda, the expert in making use of reusable materials. The activity was not solely about making a beneficial reuse, organic farming can help reduce household expense and promote safe and healthy diet. Furthermore, the community also learned the origin and farming process of fresh organic vegetables, as if they have a supermarket at home.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

â&#x20AC;&#x153;TRANSFORM TO USE: DIY TRANSFORMED TRASHâ&#x20AC;? ACTIVITY This activity was focused on changing behaviors of the communities in combating global warming crisis, with the delivery of special separation trash cans to schools in Pathumwan district in order to instill waste separation concept among youths. The event was honored by Thailand Greenhouse Gas Management Office (TGO), Pollution Control Department of Environmental Quality Promotion, the strong partnership in combating global warming from the root cause, inducing behavioral changes at the household level, reducing waste production,

promoting reuse and separation for recycle, and the handover of the talking separation trash cans to schools in Pathumwan district. These elements were designed to motivate children to separate their trash correctly and to instill trash separation from a young age. Governmental organizations also led a team of speakers to the area in promoting the knowledge on waste separation and management for both general and toxic waste. They also shared simple techniques in reducing global warming crisis with simple acts at home.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

HEALTHY LUNCHBOX, HEALTHY EATING ACTIVITY RECOMMENDS ANTI-AGING FOR THE ELDERLY IN THE COMMUNITY MBK Public Company Limited, together with employee volunteers and Mah BoonKrong Rice, delivered health to the elderly in Pathumwan district with the “Healthy Lunchbox, Healthy Eating” Activity to establish the community as a healthy one that is ready for aging society. Famous nutritionist also suggests an anti-aging diet through a cooking workshop, featuring healthy menus for

the mind and body, led by ‘Chef Ping’ Other activities include SOOK magazine from Thai Health Promotion Foundation and a booth featuring recommendation on “Grace” biodegradable plastic packaging that is good for health and environment. The overall activity brought knowledge and smiles to the aged in the community.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

“HAPPY, HERBAL PAPER PULP”

TRANSFORMING OLD PAPER INTO NEW COOL ONES AS END-OF-YEAR GIFTS TO RESIDENTS IN PATHUMWAN DISTRICT

“Happy, Herbal Paper Pulp” Activity is the end-of-year activity that invites Pathumwan residents to make DIY paper from the paper waste gathered from MBK employee’s activity, “Happy Hoarding at the End

of Month” Paper waste was stylized with scented herbs and fresh flowers, resulting in colorful and fragrant paper. These paper can be used into cards or framed for decoration.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Social Investment SUPPORT TO COMMUNITY SERVICE ACTIVITIES, INCLUDING DONATION

MBK Public Company Limited provided space for community service activity, as well as other forms of in-kind provision. In 2017, the company provided more than 46,000 bottles of MBK bottled water, Mah BoonKrong Rice products, Koon Suk plush toys, financial donation, and other necessary goods.

GIVING & SHARING ACTIVITY FOR THE RESIDENTS OF NORTHEASTERN AND SOUTHERN REGION MBK Center, in partnership with Metropolitan Police Bureau 6, Police Commission for Monitoring of Police Operations from eight stations - namely Samranrat Police Station, Phra Ratchawang Police Station, Pathumwan Police Station, Plubplachai 1 Police Station, Plubplachai 2 Police Station, Chakkawad Police Station, Bangrak Police Station,

Yannawa Police Station - and Wat Pho, joined hands in organizing “Giving & Sharing “activity at Sky Walk, 2nd Floor, MBK Center, to seek financial and in-kind donation to alleviate the situation for the flood victims. In this activity, MBK Center donated 5,000 kilograms of packaged rice.

“DONATION DRIVE TO FUND THE UNDERPRIVILEGED PATIENTS, SIRIRAJ HOSPITAL ON MAHIDOL DAY” ACTIVITY MBK Public Company Limited supported the donation drive to the fund for underprivileged patients, Siriraj Hospital on Mahidol Day. The activity was organized by Faculty of Medicine Siriraj Hospital, while public relations and other special activities were organized by Bangkok Noi

Campus students. Many celebrities joined the donation drive, while handing out Mahidol Day flags to stores and customers in MBK Center. The support also helps drives the awareness of social activities among the public.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

â&#x20AC;&#x153;GENEROSITY FOR SOCIETYâ&#x20AC;? MBK Public Company Limited provided MBK bottled water and other products from the Group to support various community service activities to foster relationship with different organizations, including government organization, educational institution, and community around MBK Center, for instance Universities, e.g. Chulalongkorn University, Thammasat University, Mahidol University, Srinakharinwirot University, etc.

MBK Public Company Limited support the space nd on 2 floor A La Art at MBK Center to the foundations and charities and government organization for public benefit, for instance p Department of Physical Education p The Foundation for the Mentally Retarded p UNICEF p UNHCR p ActionAid Thailand p Thai Heath Promotion Foundation

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

CONTRIBUTION TO THE FUND FOR “IN REMEMBRANCE OF HM KING BHUMIBOL: THE SUPREME ARTIST” IN THE REMEMBRANCE AND CONDOLENCE FOR KING RAMA IX MBK Public Company Limited contributed 500,000 bath towards BACC Foundation to organize “In Remembrance of HM King Bhumibol: The Supreme Artist”, the exhibition of historical photographs through the lens of artists like Alex Face, Yuree Kensaku, Wisut Ponnimit, and Goh-M in remembrance of the King Rama IX, the Supreme Artist throughout 2017. CONTRIBUTION TO THE “CHULA EXPO 2017” PROJECT OR “100 YEARS OF CHULA: INNOVATION FOR SOCIETY” MBK Public Company Limited donated 500,000 baht for 100 Years of Chulalongkorn University, where the university aimed to showcase academic work and research of the university to the public in “Chula Expo 2017” or “100 Years of Chula: Innovation for Society.” The exhibition featured various social innovation that was born and bred at the university over the past century and continued to thrive in the future. This year, the expo was grander with 3 main concepts: innovation, social responsibility, and sustainability. The event was held between 15-19 March 2017. DELIVERING OLD CALENDARS AND CDS TO EDUCATIONAL TECHNOLOGY CENTER FOR THE BLIND (ETCB) We received 933 old calendars and more than 3,000 CDs from the donation of employees in MBK GROUP, under “MBK GROUP Joined Hands For Good Deeds on Visakhabucha Day” campaign via Facebook: “MBK GROUP NEWS.” The calendars and CDs are donated to Educational Technology Center for the Blind in Nonthaburi to be reused for Braille books and audio books for the visually impaired people. DELIVERING UMBRELLAS TO THE MIRROR FOUNDATION TO BE PASSED ON TO HOMELESS PEOPLE MBK Public Company Limited received 321 umbrellas and 20 raincoats, from the donation of MBK GROUP’s employees under “On a Rainy Day: Kind MBK GROUP employees give away umbrellas” activity via Facebook: MBK GROUP NEWS. The donation is delivered to The Mirror Foundation to be passed on to underprivileged people who suffer from poverty and homelessness.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ACTIVITIES TO PROMOTE ENVIRONMENTAL AND ENERGY CONSERVATION “DISPOSE OLD PHONES FOR MERIT AND THE NATION” PROJECT MBK Public Company Limited partnered with Pollution Control Department in putting a disposal box for old mobile phones and batteries under the “Dispose Old Phones For Merit And The Nation” Project in front of the elevator on the 2nd and 4th floor, Zone C, MBK Center

SUSTAINABLE OPERATION WITHIN THE ORGANIZATION The company is dedicated to pursuing activities that promote and resolve environmental issues within the organization itself and outside of the organization for directional alignment, therefore, we initiated “Happy Hoarding at End of Month” activity to make employees realize the value of waste separation. Employees can separate different types of waste, especially the highvolume trash such as plastic bottles and paper. With the zero-baht store model, MBK GROUP employees can

exchange those trash for useful products at the end of each month. Over five months of the activity, employees separated over 2 tons of waste. Paper from this activity was also used as the main materials for a Transforming Waste into Future project, the “WOW Design Awards 2017,” the contest for new generation to apply their design skills and creativity in transforming paper waste into gifts for sharing.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ENVIRONMENT MANAGEMENT IN 2017 MBK CENTER REDUCE CARBON FOOTPRINT

2,739,548 KG. PER YEAR EQUIVALENT OF PLANTING

464,589 TREES PER YEAR ENVIRONMENTAL OPERATION The responsibility for the environment is MBK Public Company Limitedâ&#x20AC;&#x2122;s crucial duty to take care of the environmental protection, from its internal process to support to activities concerning energy conservation and environmental protection for the sustainability in various dimensions as follows:

1. THE MANAGEMENT OF WASTEWATER BEFORE RELEASING IT TO PUBLIC WATERWAYS (ACCORDING TO THE ENERGY CONSERVATION PROMOTION ACT 1992 (B.E. 2535)

1.1 The deep shaft wastewater treatment from the building

1.2 Expenses of wastewater management (Wastewater Treatment System)

From 1996 to the present, MBK Center has installed the deep shaft wastewater treatment system, which is an activated sludge process that treats sewage by using biological sludge. During the treatment process, staff will continuously test and report the operation of the process. Wastewater samples are collected and sent to a laboratory every month in order to check the quality of the water before releasing it to public sewers. The wastewater is treated to meet the quality control standard for wastewater from a building (Type A). Sewage sludge from the treatment, which amounts to 2 tons per week, is sanitarily removed and disposed by a contractor hired by MBK Center.

Year Electric Expenses

Wastewater Treatment System Maintenance Expenses Total (THB including VAT)

2009 3,325,403.00 2010 3,475,525.00 2011 3,237,825.00 2012 3,142,922.00 2013 4,041,236.00 2014 5,910,906.22 2015 4,439,109.47 2016 3,583,726.94 2017 2,924,250.62 Total 34,080,904.25

1,730,341.00 5,055,744.00 1,789,027.00 5,264,552.00 2,275,174.00 5,512,999.00 2,662,847.00 5,805,769.00 1,146,160.00 5,187,396.00 2,980,560.03 8,891,466.25 1,271,768.70 5,710,878.17 1,801,690.02 5,385,416.96 2,227,444.35 5,151,694.97 17,885,012.10 51,965,916.35

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

1.3 The project on improving the Wastewater Treatment System

Wastewater Treatment System Year List of improving wastewater treatment system Investment (THB including VAT)

2011 p Project on improving the ventilation system of a wastewater treatment pond

1,647,846.00

p Project on changing fine screens

1,600,000.00

2012

Project on changing scrapers’ chains at a sedimentation pond

983,062.50

2013

Project on changing effluent pumps at Sump-3

187,250.00

Project on improving a wastewater treatment pond area

2014

Project on changing effluent pumps at SCP-01

Project on changing air compressors

3,053,500.00

Project on changing scrapers’ chains at a sedimentation pond-1

3,480,000.00

Project on changing belt presses

5,475,725.00

2015

Project on changing scrapers’ chains at a sedimentation pond-2

3,480,000.00

2,525,000.00 405,262.50

p Project on improving a lighting system at a wastewater treatment pond area

655,000.00

2016 p Project on improving the ventilation system of a wastewater treatment pond

882,750.00

324,659.40

2017

p Project on repairing the wall tank EQ -1,2

Project on improving Air Tube Deep Shaft

208,000.00

Project on improving wastewater Sump No.2

977,591.80

Project on cleaning Sludge Tank

Total

3,742,244.75

29,627,891.80

Because of well realizing the safety of tap water used by tenants and customers within the shopping center, MBK Center then checks the quality of tap water every 3 months by randomly collecting samples of tap water at various spots. The quality of drinking water is also tested once a year - in comparison with the quality of drinking water in tightly sealed containers - which consistently meets the required standard.

2. THE QUALITY MANAGEMENT OF AIR QUALITY WITHIN MBK CENTER

2.1 To monitor the indoor air quality

At present, the engineering staff realizes and places emphasis on the building’s air quality by having an air conditioning system and a ventilation system purified by using cleaning solutions to clean air conditioners’ coils, washing air conditioners’ air ducts, and checking indoor air quality twice a year regularly. MBK Center also has more measures: 2.1.1 The use of sanitizing spray after cleaning air conditioners helps to reduce the accumulation of bacteria in air coils, air vents, and other parts.

2.1.2 The use of ozone sterilizers in central areas and air conditioners helps to reduce the accumulation of bacteria in air coils, air vents, and other parts. 2.1.3 The laboratory tests samples of water from the cooling tower system for Legionella Bacteria every 4 months. As a result of these measures, MBK Center’s indoor air quality always maintains standards, which are examined and certified by accredited professional company.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

2.2 Expenses of the quality management of air quality within MBK Center (Air Conditioning and Air Ventilation Systems)

Air Conditioning System and Ventilation System

Year

Air Quality and Gel and Legionella Disinfectant Bacteria Expenses Expenses

Cleaning air Cleaning fan coil Total Expenses Unit Expenses (THB including VAT) (Central) (Central)

2009

136,960.00 171,200.00 516,500.00

824,660.00

2010

261,600.00 60,000.00 737,000.00

1,058,600.00

2011

84,000.00 27,100.00 716,220.00 1,786,686.00 2,614,006.00

2012

280,340.00 30,446.00 1,087,024.52 1,193,054.28 2,590,864.80

2013

273,540.00 74,686.00 1,301,280.00

2014

242,890.00 46,545.00 1,451,120.00 2,080,000.00 3,820,555.00

2015

264,825.00

2016

265,788.00

- 1,693,435.39

1,959,223.39

2017

310,300.00

- 1,944,676.56

2,254,976.56

Total

1,649,506.00

1,829,793.00 2,320,000.00 4,414,618.00

2,120,243.00 409,977.00 11,277,049.47 7,379,740.28 21,187,009.75

2.3 Measures of investments to improve air quality within MBK Center

Air conditioning system and air ventilation system Year List of improving the systems Investments (THB including VAT) 2009 p Project on improving restroomsâ&#x20AC;&#x2122; air-to-air ventilators within MBK Center (Air to Air)

p Project on purchasing air disinfectant ozonizers

4,654,500.00 205,440.00

p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

4,107,730.00

2010 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

7,043,404.00

2011 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

3,259,800.00

p Project on repairing Main Exhaust

6th-22nd floors (MBK Tower)

p Project on cleaning air ducts of Air to Air Heat Exchangers

2012 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

404,460.00 432,850.00 10,500,000.00

p Project on repairing insulators for chilled water pipes within MBK Center 663,901.00

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Air conditioning system and air ventilation system Year List of improving the systems Investments (THB including VAT) 2013 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

5,000,000.00

p Project on installing chambers of Air Handling Units (AHU) within MBK Center

1,249,500.00

p Project on changing Air Handling Units (AHU) and Fan Control Units (FCU) around MBK Towerâ&#x20AC;&#x2122;s elevator halls

1,011,800.00

2,810,000.00

p Project on repairing insulators for chilled water pipes within MBK Center

2014 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

7,393,507.94

5,835,780.00

p Project on repairing insulators for chilled water pipes within MBK Center

2015 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

13,860,050.69

p Project on repairing insulators for chilled water pipes within MBK Center

2016 p Project on increasing the efficiency of Air Handling Units (AHU) and Fan Control Units (FCU)

6,012,291.00

13,860,050.69

Project on repairing insulators for chilled water pipes within MBK Center 5,939,661.06

2017 p Project on repairing insulators for chilled water pipes within MBK Center 8,026,161.00 Total 102,270,887.38

3. THE RECYCLING MANAGEMENT (3Râ&#x20AC;&#x2122;S) To reuse the treated wastewater (Recycle) MBK Center has a project on reusing wastewater that is already treated in order to consume resources efficiently by using recycled water to clean areas around car parks and in a cooling tower system. Before reusing it, the wastewater is processed to remove unwanted suspensions through sand filters and to kill germs through Chlorine Dioxide disinfection in order that the quality of

recycled water is suitable and safe to use. Particularly, the recycled water used in a cooling tower system is randomly checked. Its samples are collected and sent to a laboratory to find Legion Ella Bacteria every 4 months. Therefore, the water recycling is safe for the indoor air quality within MBK Center and complies with best practices for Good Corporate Governance.

Expenses of recycling management Recycled water system Year Electric Maintenance Total Expenses Expenses

2009 2010

Amount of recycled water treated (Cubic meters per year)

114,720.00 180,917.00 295,637.00 = 57,403.00 125,082.00 243,846.00 368,928.00 = 51,332.00

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Recycled water system Year Electric Maintenance Total Expenses Expenses

2011 2012 2013 2014 2015 2016 2017 Total

174,500.00 149,238.00 323,738.00 72,030.00 273,197.00 345,227.00 84,505.00 681,820.00 766,325.00 159,812.00 304,800.00 464,612.00 50,507.58 213,845.00 264,352.58 44,129.56 174,238.90 218,368.46 55,864.71 93,155.00 149,014.71 881,150.85 2,315,051.90 3,196,202.75

Amount of recycled water treated (Cubic meters per year)

= 15,045.00 = 11,311.00 = 20,753.00 = 29,783.00 = 12,054.00 = 13,431.00 = 10,971.00 = 222,083.00

4. MITIGATION AND ADAPTATION TO CLIMAGE CHANGE Training and activities to promote the energy conservation and the environment preservation The company annually provides training courses not only for its employees, but also for tenants in the shopping center. These training courses are, for example, Techniques of Energy Conservation and Consciousness of

Environment Protection. Also, activities to promote the energy conservation and the environment preservation are organized such as a visit to observe energy efficiency and green buildings, having a smile with an electricity bill, and MBK Energy Day in which a lot of the companyâ&#x20AC;&#x2122;s staff participates annually.

5. BIOLOGICAL DIVERSITY AND ENVIRONMENT PROTECTION The energy management (according to the energy conservation promotion act 1992 (b.e. 2535) 5.1 The energy management At present, the energy consumption within MBK Center is determined as a large designated building having

energy consumption for over 3,000 MW or total energy consumption for over 60,000,000 MJ. Therefore, the company has to comply with the Energy Conservation Promotion Act 1992 (B.E. 2535) and then sets its internal committee on energy management in order to run operations to conform to its policies, action plans, and the law.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

5.2 Measures and goals for energy conservation Projects on reducing energy consumption within MBK Center

Investments Savings in Savings in Payback Carbon Equivalent Year List (THB energy money period dioxide to plant including VAT) (kW/hr (THB (year) reduction trees per year) per year) (kg per year) (per year)

2010 Project on increasing the 99,500,000.00 p efficiency of chillers p Project on changing 220,800.00 fluorescent lamps and electronic ballasts 2011 p Project on installing 3,136,000.00 energy-saving devices for efficient lighting p Project on turn lights off - during a lunch break on the office’s 8th floor 2012 p Project on replacing 235,400.00 Halogen lamps with LED lamps p Project on installing Motion 133,750.00 sensors to control the workings of lamps p Project on installing AC 3,355,520.00 voltage stabilizers 2013 p Project on changing fan 3,200,000.00 blades and a cooling tower’s control units. p Project on changing 3,644,940.00 aerators for a wastewater treatment system p Project on balancing 1,650,000.00 chilled water in an air-conditioning system of MBK Center p Project on changing water 5,700,000.00 pumps used in a chilled water supply system p Project on changing 3,959,000.00 scrapers’ chains in a grease trap used in a wastewater 2014 p Project on improving air 1,635,514.02 conditioners in a server room on 8th floor

5,390,389.00 16,818,012.00

5.92

1,067,297

180,999

266,335.00

0.83

5,700

967

314,530.73 1,063,113.87

2.95

62,277

10,561

1,140

193

28,788.00

5,760.00

19,468.80

60,480.00 205,027.20

1.15

11,975

2,031

20,750.25

70,343.35

1.90

4,109

697

430,682.20 1,460,012.66

2.30

85,275

14,461

1,026,328.05 3,807,677.05

0.84

203,213

34,462

43,800.00 162,498.00

22.43

8,672

1,471

1,798,997.40 6,674,280.35

0.25

356,201

60,407

254,040.00 942,488.40

6.05

50,300

8,530

61,320.00 306,600.00

12.91

12,141

2,059

1,484,550.96 6,116,201.05

0.27

293,941

49,848

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Projects on reducing energy consumption within MBK Center

2015 p Project on changing chains 3,959,000.00 61,320.00 243,005.03 and sludge scrapers (CS-02) used in a wastewater treatment system p Project on replacing light 22,309,870.00 1,999,728.00 7,924,722.09 bulbs along central passageways within the shopping center with energy-efficient LED bulbs 2016 p Project on changing 5,672,364.66 39,276.00 178,587.97 water-saving fixtures and Energy Award automatic water valves used in restrooms at MBK Center. 2017 p Project on Operate - 386,098.00 1,418,137.95 Chiller Plant (Closed chiller between 24:00 - 06:00 oâ&#x20AC;&#x2122;clock) p MBK Energy Awards 2017, 118,128.00 225,780.00 774,854.38 Campaign of Reduce the Energy Consumption for tenant Total 158,430,286.66 13,836,112.59 49,214,874.65

Notes : 1. 2. 3.

16.29

12,141

2,059

2.82

395,946

67,147

31.76

7,777

1,319

76,447

12,964

0.15

44,704

7,581

2,739,548

464,589

To save electricity consumption of 1 kWh (1 Unit) can reduce 0.198 kg of carbon dioxide. To reduce 5.8967 kg. of carbon dioxide can decrease planting 1 tree. Referred to Thailand Greenhouse Gas Management Organization (Public Organization). 2017 Toilet renovation project in MBK Center by using environmental friendly sanitaryware can save 102,651.00 units of water supply per year and lower water supply expense 1,675,082.81 Baht per year.

RECOGNITION AND AWARDS RECEIVED The company is awarded honorary award for energy conservation in the category of best team of energy management building controller in 2017, MBK Center by Ministry of Energy

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

INNOVATION AND PROMOTION OF INNOVATION FROM SOCIAL RESPONSIBILITY ACTIVITIES MBK GROUP’s definition of “Innovation” is the application of knowledge, creativity, skills, experience, new methods, and modern technology to improve, develop, and create changes, whether it is new process, new products and services, or new forms of business that can create value to organization, customers, partners and stakeholders.

GOAL OF MBK GROUP IN INNOVATION PROMOTION

THE GOAL IS TO DEVELOP NEW INNOVATION WITHIN THE ORGANIZATION EVERY YEAR TO ENSURE ORGANIZATIONAL SUSTAINABILITY.

IDEA GENERATION OR KNOWLEDGE DISCOVERY FOR VALUE CREATION FOR THE BUSINESS, ECONOMY, SOCIETY, AND ENVIRONMENT MBK Innovation Projects that have been executed in 2017 are: 1. MBK Application is the application that aggregates special privileges and discounts from leading stores. Customers can collect points from daily log-ins and enjoy their special privileges beyond any other offers from our partnered stores at MBK Center and other companies under MBK GROUP. 2. Smart Info Service is the self-service kiosk at the information counter of the shopping center, by

integrating search system on the touch-screen large display and Facetime together, allowing customers to speak with our help desk officer over live chat. The service aims to cater to customers’ needs for store location and other specialty services within MBK Center 3. Foldable canvas tray for water leakage is light weight, easy to carry, and quick to install. We can produce the tray by ourselves. It is compact and foldable, making storage and transportation simple. The tray can be easily installed to the ceiling to prevent water damage for both interior and exterior of the shopping malls. This solution helps the shopping center in terms of the appearance and strength.

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

MBK Innovation Projects that have been initiated in 2017 and is still in process: 1. Smart Stage is a 3-in-1 stage that can be adjusted into three sizes, i.e. large concert stage (8x10 meter), small stage (5x8 meter), and standard boxing stage (8x8 meter). The stage can be quickly folded for storage and usage with hydraulic system. It can also be easily moved with the engineering-standard wheel system for various activities around the shopping center. (This project is still in the feasibility study phase.)

2. Smart Training and Internal Event Application, QR System is a web application that records and displays real-time information on training participation and activity organization with finger scan and QR code systems. The solution helps automatically calculate KPI of each training which can be queried and viewed on the computer screen and smart phone. (This project is still in the feasibility study phase.)

PROMOTE AND COLLABORATE WITH STAKEHOLDERS FOR INNOVATION DEVELOPMENT IN A SOCIALLYRESPONSIBLE MANNER MEASURES TO PROMOTE INNOVATION IN THE ORGANIZATION 1. Establish Innovation Committee to drive innovation in the organization and pursue an initial filtration of innovation projects prior to executive presentation 2. Establish Innovation Working Team, the high performance team, that is responsible for innovation creation within the organization 3. Provide training to educate employees by external speakers once a year and by internal speakers twice a year 4. Organize company visit to learn other innovation practices in the organization, i.e. Metropolitan Waterworks Authority (Thailand), Queen Sirikit National Institute of Child Health 5. Organize MBK Innovation Day for employees to participate on an annual basis 6. Broadcast Innovation Radio show in the evening of every third Friday of the month to update

news on innovation inside and outside of the organization, where employees can participate in answering quizzes for prizes 7. Publish Inno Tank on the companyâ&#x20AC;&#x2122;s intranet to regularly update knowledge and organize activities relating to innovation. Knowledge updates, example showcase and overview aim to educate and provide opportunity for employees to enjoy and answer quizzes for prizes 8. Communicate via email to update knowledge on innovation from outside of the organization in an interesting and comprehensible manner every quarter 9. Establish criteria/ prizes for innovative solutions and suggestions by employees 10. Provide a channel for employees to innovation suggestion for the consideration of Innovation Committee

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

ACTIVITIES TO SUPPORT AND DRIVE MBK INNOVATION FOR SUSTAINABLE DEVELOPMENT MBK Public Company Limited puts efforts in driving innovation in the organization by organizing various activities for our employees. Our intent is to prepare our employees to be future-ready task force of the organization. Our activities aim to spread news and knowledge about innovation for our employees to understand and realize the importance of innovation in the organization, to extend their creativity, and eventually to be able to suggest innovation that creates value in the organization. MBK Innovation Day 2017-Innovation 4.0 MBK 532 executives and employees participated in visiting the booth exhibition

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

INDEX OF SUSTAINABILITY DEVELOPMENT REPORT

Description

Page

Statement from the most senior decision-maker of the organization

Remark

2-3 Company information 6-7 Name of the organization 6, and 56-1 Primary brands, products and services 6, and 56-1 Structure of the organization 6, and 56-1 Location of the organizationâ&#x20AC;&#x2122;s headquarter 6, and 56-1 Number of countries where the organization operates, and - The organization names of countries where either the organization has significant is only located in operations or that are specifically relevant to the sustaina bility Thailand topics covered in the report Nature of ownership and legal form 6 Scale of the organization (Total number of employees by types) 6, 24, and 56-1 Recognition and award received 10-11 Stakeholders Engagement 13-14 Scope of the report 12 Reporting period for information provided 12 Good Governance 15, and 56-1 Fair Business Practices

1. Policy regarding fair business practices 19 2. Policy regarding Anti Corruption 16-17, and 56-1 2. 1 Policy regarding Anti- Corruption and Ethics 16, and 56-1 2. 1 Board role in policy regarding Anti- Corruption 16 2.3 Policy of Anti- Corruption practices (Communication, Training 17, and 56-1 and The Operational Procedure for Whistleblowing Policy.) 17 2.4 Collaboration with other parties 18 3. The non-infringement intellectual property or copyrights 22, and 56-1 4. Responsibility for supply chain 4.1 Select and assess suppliers with capability for sustainable business 4.2 Corporate with supplier for sustainability development 13

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Description

Page

Remark

Human Rights and Fair Treatment of Labor

1. Recruitment in term of Human Rights and Fair Treatment 1.1 No operations and suppliers identified as having significant risk for incidents of forced, compulsory labor or child labor 1.2 Equal opportunities 2. Employees Engagement 2.1 Employees opinion sharing 2.2 Disclosure of company information 2.3 Employees engagement to the company 3. Recruitment in term of Human Rights and Fair Treatment 3.1 Programs for skills management that support the continued employability of employees without discrimination 4. Health and Safety 4.1 The importance and necessity in having its own healthcare system and safety 5. Welfare 5.1 Benefits and welfare provided to full-time employees, included work balance and quality of life

24 30 25-26 14 14 27 25-26, and 56-1 29 28, and 30 30 27, and 56-1 27-28

Responsibility to Consumers

1. Sustainable Service and products 31 1.1 Sustainable Value Creation for Products 1.2 Support the ability to access products and services 32 2. Customers Health and Safety 33-34 2.1 Product and Service information and labeling 32 2.2 Significant product and service categories for which health and safety 34 2.3 Customers Rights Protection 33 (some part) 3. Fair market served 20

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

Description

Page

Community and Society Development

1. 2. 3. 4. 5.

35 Survey the communities and societies around the located business 35 Significant investment for developing communities and societies 39 Social and Community Care 46 Significant investment in infrastructure such as School, Hospital and etc. 43-44 Supporting and participate in developing the sustainability for society 44-45

Environment Management

1. Significant reduce impact of products and services to society and environment 2. Climate Change 2.1 Waste management (Total weight of waste by type and disposal method) 3. Climate Change (Reduction of greenhouse gas) 4. Biodiversity 4.1 Guidelines for the protection of biodiversity from the impact of the companyâ&#x20AC;&#x2122;s operations.

48 48 48-49 49-50 49-51 52

Innovation and Promotion of Innovation

Innovation and Promotion of Innovation From Social Responsibility Activities

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

55-57

Remark

RECYCLE

REUSE UPCYCLE REDUCE RECYCLE

SUSTAINABILITY REPORT 2017 MBK PUBLIC COMPANY LIMITED

MBK PUBLIC COMPANY LIMITED 8th Fl., MBK Center Building, 444 Phayathai Rd., Wangmai, Pathumwan, Bangkok 10330 Thailand Telephone: +66 (0) 2853 9000 Facsimile: +66 (0) 2853 7000

www.mbkgroup.co.th

REDUCE REUSE

RECYCLE

UPCYCLE

CREATING SUSTAINABLE VALUE SUSTAINABILITY REPORT 2017