20170518 lpn sd2016 en by Piyanat Kimhamanon

6 GREEN LPN L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED

SUSTAINABILITY REPORT 2016

THE NEXT CHAPTER OF SUSTAINABILITY

6 GREEN LPN THE NEXT CHAPTER OF SUSTAINABILITY

SUSTAINABILITY REPORT 2016 L.P.N. DEVELOPMENT PUBLIC COMPANY LIMITED

Content • Message from Chairman • Outstanding Operational Performance in 2016 • Sustainability Awards 2016 • Corporate Information • Vision for Sustainable Growth • Mission 2016 • LPN WAY • Report Preparation Guideline • Stakeholder Engagement SUSTAINABLE POLICY • Corporate Governance Principle and Responsibility • Anti-Corruption Action • Supply Chain Management • LPN and Sustainable Development • TRIPLE BOTTOM LINE • 6 GREEN LPN • 8 STAKEHOLDERS • 10 PROCESSES • Sustainable Development Goals • LPN Sustainable Strategy

3 4 5 6 7 8 9 10 14

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

17 18 19 20 22 23 24 25 26 28 32

• •

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

33 34 50 56 64 78 94

106 107 111

115

• L.P.N. ACADEMY • SOCIAL ENTERPRISE

116 126

• • • •

133 136 143 145

Innovation for Sustainability Staff Information SDGs INDEX GRI INDEX

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 3

Message from Chairman (G4-1) 2016 has proven to be another challenging year for the Company as a result of the overall economic condition of the country as well as other external and internal aspects. There is a potential that the Company will fall into “recession” so we must closely follow-up the situations and adjust the operational plan to be in accordance with changing circumstances while being cautious, transparent and in compliance with corporate governance principles. As the developer of residential condominium, the Company has emphasized the importance of the development of 6 Green LPN strategy - the operational guideline that takes all stakeholders into account and promotes the balance between business growth and corporate social and environmental sustainability in a concrete manner. As a consequence of our commitment, the Company was granted the Best Sustainability Award 2016 from the Stock Exchange of Thailand for excellent performance in sustainability development amongst the listed companies in the Stock Exchange of Thailand with the market capitalization between 10-30 billion THB. Moreover, the Company was awarded 5 stars in corporate governance from the Securities and Exchange Commission and the Thai Institute of Directors. This year, the content and preparation process of the report have been improved along the guideline of the Global Reporting Initiative (GRI) in order for the report to reflect the Company’s environmental and social responsibility in all aspects. It is not only easy to understand but also vividly showcase the operational efficiency of the organization as evident in Outstanding Sustainability Award Report 2016 received from Thai Listed Companies Association and certificate from ThaiPat Institute for being the leader in preparing the sustainability report based on the 17 Sustainable Development Goals (SDGs) which are “Global Goals” of the United Nations. All through 27 years of business operation, the Company strives to generate business growth upon corporate responsibility and governance in order to successfully become a “value organization”. We very much hope that this sustainability report will become a guide for organizations in Thailand that wish to build a sustainable business and give back to the society at the same time. On behalf of L.P.N. Development Public Co., Ltd. I would like to thank the executives, staff, business alliances as well as all stakeholders for your support and collaboration. The Company commits to operate the business in a responsible manner upon the Philosophy of Sufficiency Economy of His Majesty King Bhumibol to achieve sustainable development and growth. (Amornsuk Noparumpa) Chairman

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6 G R E E N LP N

Outstanding Operational Performance in 2016 (G4-1) Values

The sustainability formula of 3-6-8-10

i.e. 3Ps, 6 Green LPN, 8 Stakeholders and 10 Processes is established as an operational guideline for all departments.

Finance

Vibrant Community models

The gross income is

Vibrant Community There are models (29 condominium juristic persons) developed.

million THB.

14,651

The growth of the Company is

-12%

The Company

CMTC Training Course has been organized to build the capacity of

269

manages

129 communities

, comprising 120,000 families and 210,000 community members. The total space managed is 6,500,000 sq.m.

Community Managers.

= 49%

664 families are offered the opportunity of

The Company

for the total of

= 64%

0.90*

THB. (*pending approval).

8 condominium projects

are handed over. helps create jobs

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

million THB.

owning their very first home through Baan Sarn Fun Project.

8 sustainability awards in 2016

2,176

The dividend paid is The total of

NPS in 2016

The net profit is

1,800

underprivileged women.

The total of projects is launched.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 5

Sustainability Awards 2016 (G4-1)

The Company was granted Outstanding Company Performance Awards 2016 from the Stock Exchange of Thailand.

The Company was granted Outstanding Sustainability Report Awards 2016 from Thai Listed Companies Association.

The Company was ranked Excellent (5 stars) in corporate governance by the Thai Institute of Directors.

The Company was listed among the top one hundred companies for outstanding performance in terms of environment, social and governance aspects (ESG 100) by ThaiPat Institute for the second consecutive year.

The Company was granted Best Sustainability Awards 2016 amongst the listed companies with market capitalization between 10-30 billion THB. The Company was one of the 51 listed companies in Thailand Sustainability Investment (THSI) list of the Stock Exchange of Thailand for the second consecutive year.

The Company was granted a certificate in recognition for its initiative in preparing the sustainability report based on 17 Sustainable Development Goals (SDGs) or the “Global Goals” of the United Nations from ThaiPat Institute. The Company received an award for “Building Energy Code” (BEC) from the Department of Alternative Energy Development and Efficiency, Ministry of Energy.

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6 G R E E N LP N

Corporate Information (G4-3, 5, 6) Real Estate Developer

L.P.N. Development Public Co., Ltd. Residential Condominium Developer Head Office 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120 Registration Date: 21 June 1989 Registered Capital: 1,475,698,768 THB.

Associated Companies (G4-17)

Pornsanti Co., Ltd. Property Developer of Non-Condominium Projects

Service Provider

Associated Companies (G4-17) Lumpini Property Management Co., Ltd. Provider of Community Management Services

Lumpini Project Management Service Co., Ltd. Provider of Construction Management Services

Lumpini Property Service and Care Co., Ltd. Provider of Community Services

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 7

Vision for Sustainable Growth The vision, mission, strategy and business plan of the company and subsidiary companies are endorsed by the Board of Directors of the Company. The vision will be revised every three years as a guideline for business operation towards sustainable development. It will take into account the appropriate balance between profit and quality as well as the environmental and social responsibility under corporate governance. The mission will also be identified on an annual basis to be in accordance with changing circumstances. It will be driven by the concept of LPN Way which derives from business operation experiences all through the year.

Vision 2017 - 2020 “Strike a balance in and enhance the efficiency of real estate business operation and residential development in terms of profit and responsibility towards all stakeholders to achieve sustainable development”

Vision 2002 - 2013 2002 – 2004

2005 – 2007

2008 – 2010

2011 – 2013

To become the market leader in the residential condominium for middle to lower-middle target segment.

To maintain leadership in the market while enhancing the efficiency by developing residential condominiums in an integrated manner for the creation of high quality communities.

To commit and maintain the leadership in the residential condominium development market by creating an integrated value to develop suitable quality of life and ensure satisfaction of the residents in the communities while also sustaining a reward for shareholders and stakeholders under good corporate governance principle.

To become a leader in the development of urban residence by creating and delivering integrated values to all stakeholders in order to achieve the development and sustainable growth.

Vibrant Community For All “Vibrant Community For All” is Lumpini Community in which the residents live happily together with appropriate components, great quality of life, society, environment and awareness of Togetherness, Care and Share culture.

Value Organization The organization that has been developed in an integrated fashion in the operation of all departments in order to deliver the value to stakeholders, society and environment.

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6 G R E E N LP N

Mission 2016

SHAREHOLDERS

STAFF

CUSTOMERS

Achieve proper growth to provide sustainable return under risk management and good governance principle.

Enhance quality of life, knowledge, competency, integrity and relationship for happiness, engagement, career growth and stability through LPN Way and L.P.N. Academy under the care and share culture of “Value Organization”.

Provide the opportunity of owning the first home at the affordable price and deliver product and service values to customers as well as manage customer’s experiences to create trust in “Lumpini” brand.

SUPPLY CHAIN

NEIGHBORS

RESIDENTS

Create unity under care and share culture and achieve mutual growth with appropriate returns.

LABORS

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

Take responsibility for the impacts of the operation and promote participation and good relationship with the Company.

ENVIRONMENT

Promote and take part in corporate social and environmental responsibilities with in process, out process and as process activities to achieve sustainable development.

Create and deliver “Vibrant Community For All” to customers that will lead to the Real Pleasure of Living.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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LPN WAY

T N

I TY UAL

COS LEADER T SH I CO P NT S

DE SP RE

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

LPN WAY

COST WI TH Q

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

NAMIC

THINKING

L ERA

W IT H Q U A LIT Y

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

CORPORATE VALUES

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

S CU STO C M E NTRI ER M ERV C IN IC DE E D SPEED

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

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Report Preparation Guideline (G4-14, 23, 28, 29, 30) Report Preparation Guideline Sustainable Development Report 2016 is the third report of L.P.N. Development Public Co., Ltd. prepared to promote the sustainable development concept and economic, environmental and social performance of the Company to all stakeholders. It is also to cascade the concept of the business operation that is based on 6 Green LPN strategy to enhance economic, social and environmental sustainability. The information included in the report is compiled between 1 January and 31 December 2016. The framework of the preparation of the Sustainable Development Report 2016 is in line with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines version 4, in accordance with the Guidelines using “Core” option. Moreover, the Company has established long-term goals based on the 17 goals of the United Nations Sustainable Development Goals (UNSDGs). The goals and strategy of the Company are established to be consistent with the above goals. Anyhow, although the preparation process of this report is in line with GRI framework, the reporting will be done in accordance with 6 Green LPN strategy which is able to clearly reflect the corporate social and environmental responsibility of the organization and is inclusive of all the ten core operational processes of the Company. PRESS

LABO RS

IE S A G EN C

M ER STO

R S R E SIDE

NTS

GHBO

EN T

NEI

COM MIT JURISTIC PERSON

ORS ETIT MP

ME L IE

2. Consider the important sustainability issues along with the policy and risks of the Company.

1. Identify important sustainability issues and stakeholders engagement.

LPN’s STAKEHOLDER

E N VIR O N

The identification and assessment of major sustainability issues of the Company will take into account the nature of the business operation and the stakeholders in order to achieve the goals, meet the needs of all stakeholders and ensure the sustainability of the business operation. The Corporate Environmental and Social Responsibility Committee will consider the issues based on the Sustainability Reporting Guidelines version 4 of GRI to include all aspects of the operation. The assessment process of the issues to be included in the report is as follows:

SHAREHOLD ERS

FF STA

TEAM LPN

Assessment of Important Sustainability Issues (G4-18)

S TEE

S O C IE T Y

3. Prioritize the sustainability issues.

4. Present the sustainability issues.

5. Assess and summarize the results.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 11

Important Sustainability Issues of the Organization Comparing with GRI Framework and Sustainable Development Goals GRI Material Aspects

LPN Sustainability Aspects

GRI Indicators

GREEN ENTERPRISE • Supply chain management • Appropriate profits and growth • Appropriate returns • Supporting for “Social Enterprise”

G4-EC1

Anti-Corruption

• Corporate governance and risk management • Anti-corruption action

G4-SO4, G4-SO5

Employment

• Corporate values • Vibrant organization • Learning organization • Work-life balance

G4-LA1, G4-LA2, G4-LA3

Products and Services

• Affordable house • Development of products in accordance with the behavior and lifestyle of customers • Emphasis on environmental responsibility in process

IN PROCESS

Economic Performance

Overall Human Rights Grievance Mechanisms

• Human Rights grievance mechanisms

G4-HR12

Labor Practices Grievance Mechanisms

• Labor practices grievance mechanisms

G4-LA16

Equal Remuneration for Women and Men

• Vibrant organization

G4-LA13

Occupational Health and Safety

• Vibrant organization

G4-LA13

GREEN FINANCIAL MANAGEMENT Economic Performance

• Appropriate profits and growth • Balanced and appropriate distribution of profits generated from all sectors • Transparent and auditable financial statement • Financial discipline • Regular communication to shareholders

G4-EC1 G4-EC1

Sustainable Development Goals (SDGs)

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6 G R E E N LP N

GRI Material Aspects

LPN Sustainability Aspects

GRI Indicators

IN PROCESS

GREEN DESIGN CONCEPT Energy

• Consideration for impacts from project design • Energy efficiency

Biodiversity

• Environmentally friendly building design in accordance with Green Design Concept Standard

Materials

• Appropriate use of materials and resources

Water

• Environmentally friendly building design in accordance with Green Design Concept Standard

Transport

• Strategic location • Adding values to products via convenient facilities in projects

GREEN MARKETING MANAGEMENT Environmental Grievance Mechanisms

• Complaint and satisfaction management

G4-EN34, G4-EN27

Product and Service Labeling

• Complaint and satisfaction management

G4-PR5

Products and Services

• Customer experience management • Affordable Price • Creative advertisement without hidden agenda or attacking competitors • Satisfaction and Complaint Management

GREEN CONSTRUCTION PROCESS Occupational Health and Safety

• Safety and occupational health of construction workers • Quality of life and hygiene of construction workers

Local Communities

• Responsibility towards construction impacts • Development and improvement of infrastructure of neighboring communities

G4-SO2

Products and Services

• Reduction of impacts from construction following LPN Green Construction Process Standard

G4-EN34

Sustainable Development Goals (SDGs)

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

GRI Material Aspects

LPN Sustainability Aspects

GRI Indicators

GREEN CONSTRUCTION PROCESS Effluent and Waste

• Environmental Quality Monitoring • Waste management in construction sites

G4-EN22 G4-EN23

IN PROCESS

GREEN COMMUNITY MANAGEMENT Products and Services

• Delivery of good quality of life via community management under “Vibrant Community For All” strategy

Energy

• Energy management in communities

G4-EN4, G4-EN6, G4-EN7

Water

• Water management in communities

G4-EN8, G4-EN10

Effluent and Waste

• Waste management in communities

G4-EN23

OUT PROCESS

CESR ACTIVITIES Overall

• Promotion of “togetherness, care and share” concept and volunteer network e.g. blood donation activity

CORPORATE ESR TO COMMUNITY ESR Overall

• Promotion of participation of Lumpini residents via the support for environmental and social activities of Lumpini Volunteer Clubs

L.P.N. ACADEMY

AS PROCESS

Training and Education

• Knowledge sharing with LPN Team for mutual development and growth • Development of capacity of staff following the LPN Way in response to business growth • Knowledge sharing with the public and educational institutions via study visit and lecture

SOCIAL ENTERPRISE Labor Practices and Decent Work

• Real pleasure of working • Promotion of education and career growth

Diversity and Equal Opportunity

• Creation of jobs and upgrade of quality of life of underprivileged women

G4-LA9

• 13

Sustainable Development Goals (SDGs)

14 •

6 G R E E N LP N

Stakeholder Engagement (G4-26,27) Stakeholders

SHAREHOLDERS

General Issues • Optimized profit and growth • Risk management • Corporate governance

• Generation of optimized profit and growth • Environmental and social responsibility • Balance of returns for all stakeholders • Adherence to corporate governance principles • Risk management • Anti-corruption • Respect for shareholders’ right • Implementation of 6 GREEN LPN policy for sustainable development

• Balance of profit • Mutual growth and development

• Working in unison • Collaboration in business planning process • Knowledge sharing • Support for organization development • Passing on environmental and social responsibility awareness

• Work-life balance • Learning and growing • Happiness at work • Corporate value

• Promoting work-life balance • Learning and growing in the organization • Vibrant organization • Core competencies to organization values • Appropriate remuneration and welfare • Equality and basic rights

• Trust in brand • Product value • Consumers’ right • Satisfaction management • Affordable home

• Affordable home • Product and service values • Management of customers’ satisfaction and complaints • Respect for consumers’ right • Fair price

• Promoting participation • Product value • Service value - Vibrant Community • Consumers’ right • Satisfaction management

• Product and service values • Management of customers’ satisfaction and complaints • Respect for consumers’ right • Togetherness, care and share culture • Participation in CESR activities • Promoting learning among youths living in the project • Opportunity for the community to identify the guideline for community management

• Responsibility • Reduction of impacts in process out process and as process

• Reduction of impacts from construction • Waste segregation campaign in communities • Energy conservation promotion • Management of efficient use of resources • Project design for sustainability • CESR awareness raising in communities • Creation of jobs and good quality of life for underprivileged women • Knowledge sharing with external organizations via L.P.N. Academy

• Safety • Quality of life of construction workers

• Safety at work • Quality of life and sanitation of the living quarter • Basic rights and wages • Equal treatment

• Reduction of impacts from construction • Relationship building

• Prevention of construction noises, dust and impacts • Accepting suggestions • Compliance with Environment Impact Assessment Report • Project design that takes sustainability of the area into account

SUPPLY CHAIN

STAFF

CUSTOMERS

RESIDENTS

LABORS

NEIGHBORS

ENVIRONMENT

Special Issues

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

Means of Promoting Participation

Frequency

• Annual Report • Annual General Meeting of Shareholders • Newsletter • Project visits • Meeting with analysts • Meeting with investors and fund managers • Project progress report

Annually Annually Quarterly Annually Quarterly Regularly Regularly

• Business alliances meeting • Training and knowledge sharing sessions • Relationship building activities

Monthly Monthly Quarterly

• Assessment of happiness at work • L.P.N. Academy • Activities to promote participation • Staff relations team • Performance evaluation • Intranet and email • Knowledge sharing by executives • Welfare Committee • WhatsApp

Quarterly Regularly Regularly Ad-hoc Every six months Regularly Regularly Ad-hoc Daily

• Annual General Meeting of Joint Owners • Mobile App • Call Center • Various activities • Satisfaction survey • Lumpini Family Day • Seminar of Juristic Person Committee • Touch Point • Management of customer’s experience • Market research • www.lpn.co.th

Annually Regularly Daily Ad-hoc Regularly Annually Annually Regularly Regularly Regularly Regularly

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

Regularly Ad-hoc Regularly

• QCSES+P • Activities to promote quality of life • Medical check-up

Daily Ad-hoc Annually

• Public hearing • Visit, meeting, discussion • Increase of green space • Improvement of the area • Project design that takes sustainability of the area into account • Complaint box

Ad-hoc Daily Regularly Regularly Regularly Weekly

• 15

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SUSTAINABLE POLICY

• 17

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

Policy

Strategy

Operation

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

3 principles 2 conditions

Moderation

Reasonableness

• 3 principles 1. Moderation

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

SelfImmunity

Ethics

2. Reasonableness

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

3. Self-Immunity

Emphasize human resources development. Establish strategies that are suitable for all economic situations. Focus on risk management.

• 2 conditions 1. Knowledge

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

2. Integrity

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

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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6 G R E E N LP N

Corporate Governance Principle and Responsibility (G4-56)

Corporate governance principle is the system of rules, practices and management processes by which a company is directed, including morality, integrity, ethics and favorable behaviors such as the operation that is transparent, auditable and independent. At present, the principle of corporate governance is widely applied in the management of an organization to build and promote, its capacity and efficiency. It also helps build faith and trust in the organization which entail continuous development.

Risk Management (G4-2) All aspects of risks are managed and controlled. The stakeholders are crucial for the business growth and thus are taken into account while managing risks for long-term benefits both at present and in the future. The rate of remuneration is decided based on the competitive situation and performance of the Company. Risks are reduced by reserving cash to maintain the liquidity of the Company.

20 Miles March Philosophy Constant pacing is one of the practices of the Company to ensure that we will not stop stepping forward by maintaining a constant pace both in time of difficulties or opportunities to create sustainable growth. The 20 Miles March philosophy which focuses on constant pacing is applied in the establishment of the growth and development target of all the departments and operational processes of the Company to ensure that the results are assessable and regularly improved.

Sustainable Development of the Company is based on sufficiency, stability and careful risk management. The development of knowledge is emphasized to increase an efficiency of the operation and capacity of staff as well as to build unity with business alliances as it has always been done throughout the years of the operation of the Company.

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Anti-Corruption Action (G4-SO4)

As a property developer that must involve with various government agencies, the Company has established an Anti-Corruption Policy indicating that all processes of the operation must be strictly in compliance with law. Compliance Risk is also included in the business plan. Transactions done with the government have regularly been monitored. Furthermore, it is required that all staff are to strictly abide by the regulations, Code of Conduct and Anti-Corruption Policy of the Company in order to enhance the responsibility and integrity of the organization. Integrity is identified as one of the core values of staff. All staff must be informed of anti-corruption practices and trained about core values of the organization in the orientation session for new staff.

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

Corruption Risk Assessment The process of corruption risk assessment of all departments is as follows 1. Risk Assessment and Reporting: All departments in the organization will assess risk in their department once every quarter. The information shall be compiled and presented to the Risk Assessment Committee for consideration. 2. Risk Management: The Risk Assessment Committee will assess, analyze and prioritize risks. The risk management guideline and strategy will be identified and proposed to the Audit Committee and the Board of Directors at least once a year. 3. Communication: Risk management guideline will be communicated to all departments for compliance and implementation.

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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6 G R E E N LP N

Supply Chain Management

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

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

UNICA T MM O

IM EN

SESS AS

MMUNICA CO

MEA SU RE

COMMIT

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

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

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

Supply chain risk management (G4-EN33) When establishing the operational target, risks must be taken into consideration and discussed with LPN Team as some companies may not have the capacity to achieve the operational target. The communication between LPN Team and the Company and among members of LPN Team themselves is also crucial. It ensures that the business is operated in the same direction and that the supply chain is efficient. Moreover, the society nowadays has become more aware of environmental impacts from the project development. The reputation of the Company could be destroyed as a result of the operation of LPN Team. Therefore, the Company, as a client, has cascaded the concept of environmental and social responsibility to LPN Team to raise awareness and encourage their participation in environmentally and socially responsible operation. The operational standard of both project design and project management is established, implemented and closely monitored.

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SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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6 G R E E N LP N

LPN and Sustainable Development

BOTTOM LINE

GREEN LPN

STAKEHOLDERS

PROCESSES

Value Organization GREEN ENTERPRISE PROFIT ECONOMIC

STAFF

01 Project Location SHAREHOLDERS

GREEN FINANCIAL MANAGEMENT

GREEN DESIGN CONCEPT

SUPPLY CHAIN

ENVIRONMENT

& Marketing 05 Sale Management CUSTOMERS

PLANET ENVIRONMENT

GREEN COMMUNITY MANAGEMENT

Customers’

06 Experience

Management

NEIGHBORS

GREEN CONSTRUCTION PROCESS

03 Design Concept 04 Financial Management

PEOPLE SOCIAL

GREEN MARKETING MANAGEMENT

02 Land Purchase

07 Construction Management 08 Handover Management

LABORS

RESIDENTS

09 Moving Preparation 10 Community Management

• 23

All through 27 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. “6 GREEN LPN” concept is developed from our extensive experiences in property development and community management as the guideline for the management of impacts of the ten core operational processes on eight groups of stakeholders.

GREEN LPN concept is the guideline for the management of impacts of the

core operational processes on

ผู้มีส่วนได้เสียจาก

groups of stakeholders

กระบวนการหลักของการดำ�เนินงาน LPN 6-8-10 PLATFORM

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

PROFIT ECONOMIC

PEOPLE SOCIAL

PLANET ENVIRONMENT

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

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

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

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

24 •

6 G R E E N LP N

6 GREEN LPN All through the 27 years, the business operation of the Company has always been done in a socially and environmentally responsible manner in all processes. “6 Green LPN” concept is developed from our extensive experiences in property development and community management as a practice to ensure a balanced and sustainable operation for the benefit of all stakeholders. At present, 6 Green LPN concept is inclusive of six aspects of environmental and social responsibility as follows:

GREEN ENTERPRISE

GREEN FINANCIAL MANAGEMENT

GREEN DESIGN CONCEPT

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

The appropriate returns and growth of the organization.

The product design that is environmentally responsible.

GREEN MARKETING MANAGEMENT

GREEN CONSTRUCTION PROCESS

GREEN COMMUNITY MANAGEMENT

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

The management of environmental and social impacts from construction process.

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

8 STAKEHOLDERS

â&#x20AC;˘ 25

(G4-25)

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

SHAREHOLDERS

STAFF

CUSTOMERS

SUPPLY CHAIN

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

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

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

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

NEIGHBORS

RESIDENTS

LABORS

ENVIRONMENT

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

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

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

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

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

26 •

6 G R E E N LP N

10 PROCESSES

(G4-12)

The Company does not only aspire to be a “Value Organization” that gives importance on organizational management and human capital but also to take responsibility towards all stakeholders in all operational processes. Usually, the responsibility of a real estate developer comes to an end after the product or condominium units are handed over to customers. However, the Company realizes how significant it is to ensure that the quality of life of the residents of the projects developed by the Company is enhanced and taken care of as they have trust in Lumpini brand and decide to make our condominium unit their “home”. This is the beginning of the development of “Vibrant Community” concept which is an after-sale service offered both in terms of building management and community management. The concept has been implemented for more than 20 years. The responsibility towards all stakeholders of the Company has started from the policy level within the organization through to the ten core processes of the property development of the Company as follows:

Project Location

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

Sale & Marketing Management

Customers’ Experience Management

Construction Management

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

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

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

• 27

Land Purchase

Design Concept

Financial Management

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

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

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

Handover Management

Moving Preparation

Community Management

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

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

“Vibrant Community Strategy” is one of the core strategies of the organization. The Company does not only manage the building but also the quality of life, society and environment and promote “Togetherness, Care And Share” culture.

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

28 â&#x20AC;¢

6 G R E E N LP N

Sustainable Development Goals In order to ensure that the operation of all departments is driven toward sustainable development, the Company has been establishing the vision for the business operation for more than 15 years. Appropriate growth of the Company has been identified in the vision to develop and drive the organization forward. The business plan as well as a short-term goal are also established annually both in terms of value and profits to be in accordance with the mission towards all stakeholders. Also, it is to create the balance of profits, deliver the operational values to the customers and take responsibility for the environmental and social impacts as a result of the project developement. At present, the business of the Compamy is operated in consistence with the fifth cycle of the vision which is the second cycle focusing on sustainable development. 2017 will be the first year of the new vision cycle as well as the Year of Shift. The sustainable development goals of the Company aim to develop and strike a balance in economic, social and environmental aspects of the business operation in order to achieve continuous growth upon corporate responsibility and governance.

1 NO POVERTY

2 ZERO HUNGER

HEALTH 3 GOOD 4 QUALITY AND WELL-BEING EDUCATION

5 GENDER QUALITY

WATER 6 CLEAN AND SANITATION

7 AFFORDABLE AND CLEAN

WORK 8 DECENT AND ECONOMIC

HEALTH 10 QUALITY 9 GOOD AND WELL-BEING EDUCATION

11 SUSTAINABLE CITIES AND

12 RESPONSIBLE CONSUMPTION

13 CLIMATE ACTION

15 LIFE ON LAND 14 LIFE BELOW WATER

ENERGY

GROWTH

COMMUNITIES

JUSTICE 16 PEACE, 17 PARTNERSHIPS FOR THE GOALS AND STRONG INSTITUTIONS

AND PRODUCTION

• 29

The sustainable development goals of the Company SD GOALs

Sustainable Strategy

Sustainable Development Goals

End poverty in all its forms everywhere

• Social Enterprise • GREEN Marketing Management

• Give back to the society by supporting the “Social Enterprise” in order to create job, quality of life and honor of underprivileged women • Upgrade the consumer quality life by giving an opportunity to own their first house

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

• GREEN Enterprise • GREEN Construction Process • GREEN Community Management

• Arrange appropriate working environment and safety • Take responsibility that may effect to the environment such as wastewater treatment, safety of working place and waste segregation • Develop the product and service under the concept of “Vibrant Community For All”

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

• L.P.N. Academy

• To improve the knowledge, skill, and attitude to staff through L.P.N. Academy • Provide the education to underprivileged women to protect them from social exploit • Improve the internal trainer to give a knowledge and value of organization • Knowledge and experiences gained are also shared with the public

Achieve gender equality and empower all women and girls

• GREEN Enterprise

• Non-discrimination or sex discrimination • Equal remuneration for women and men

Ensure availability and sustainable management of water and sanitation for all

• GREEN Design Concept • GREEN Construction Process • GREEN Community Management

• Reduce the water by using water saving sanitary ware • Wastewater treatment before re-use or wastewater discharge • Promote the campaign of water saving

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

30 •

6 G R E E N LP N

SD GOALs

Ensure access to affordable, reliable, sustainable and modern energy for all

Sustainable strategy • GREEN Design Concept • GREEN Community Management

Sustainable Development Goals • Promote the energy efficiency in community • Establish the activity campaign of reducing the energy • Study of alternative energy • Design the building to using the energy efficiency to reduce of using the electric power that are non-reusable

Promote sustained, • GREEN Enterprise inclusive and • GREEN Financial sustainable economic Management growth, full and productive employment and decent work for all

• Manage the technology and labor • Create job, make revenue and make profit from operation • Make a yield and growth of the Company and its subsidiaries • Apply to get a certification of level 4 in Anti-Corruption project

Build resilient • GREEN Enterprise infrastructure, promote inclusive and sustainable industrialization and foster innovation

• Support the innovation to all process, product, service in term of business model

Reduce inequality within and among countries

• GREEN Enterprise • GREEN Marketing Management

• Fair and equal treatment of all stakeholders

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

• GREEN Enterprise • GREEN Community Management

• Develop the “Vibrant Township Model” under the FBLES+P strategy • Create the culture of living in Lumpini Community “Togetherness, Care and Share”

SD GOALs

Ensure sustainable consumption and production patterns

Sustainable Strategy • GREEN Enterprise • GREEN Design Concept • GREEN Construction Process • GREEN Community Management

Take urgent action to • GREEN Design combat climate change Concept and its impacts • GREEN Construction Process

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

• GREEN Enterprise • Out Process Corporate ESR to Community ESR

• 31

Sustainable Development Goals • Pay the attention to environment in all process • Make the awareness of environment responsibility with the resident by promoting the Green, Clean, Lean activity • Develop Building Information Modeling (B.I.M) to be used in the development of all projects • Follow the process of Green design concept (86 articles) standard in all community.

• Design and Develop the community that are environmentally friendly under Green design concept standard (86 articles) and Green Construction process standard (73 articles)

• Setting the organization goals to reach the UN Sustainable Development Goals (SDGs) and support the other organizations such as Thai Red Cross Society

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

32 •

6 G R E E N LP N

LPN Sustainable Strategy The operation of property development business directly impacts the environment and society especially the development of large-scale projects. It can be seen that low quality properties usually cause serious environmental and social problems. The Company has thus given importance on business operation that is environmentally and socially responsible as well as incorporated the Corporate Environmental And Social Responsibility (CESR) into the business plan in order to pave the way towards sustainability. We do not only focus on CESR In Process along the thinking of “6 GREEN LPN” but also on CESR Out Process by supporting activities that promote “Togetherness, Care And Share” culture. The awareness on responsibility is raised among staff in all departments and cascaded to the residents of “Lumpini” community following the concept of “Corporate Environmental and Social Responsibility to Community Environmental and Social Responsibility”. A budget that is proportional to the sales volume of the Company is set aside to support the activities on this matter. Moreover, the Company has established organizations, the operation of which is separated from the core business operation of the Company but is partly related to the business processes. The purpose of the organizations is not to seek profits but to support the society. This is considered CESR As Process. The two organizations are L.P.N. Academy, the center for human resources development and knowledge sharing and Lumpini Property Service and Care Co., Ltd., the center for the development of quality of life of underprivileged women.

Components in the Operation of the Corporate Environmental and Social Responsibility of the Company 1. CESR (In Process)

The responsibility towards the impacts of all processes of the business operation of the organization on the stakeholders, environment and society. 2. CESR (Out Process)

The participation in and support for environmental and social activities that are not related to the operation of the organization. 3.CESR (As Process)

The support for and implementation of environmental and social activities that are not involved with the core business of the organization but are partly related to the business process.

IN PROCESS GREEN ENTERPRISE

GREEN CONSTRUCTION PROCESS

L.P.N. ACADEMY

GREEN FINANCIAL MANAGEMENT

6 GREEN LPN

GREEN DESIGN CONCEPT

AS PROCESS TOGETHERNESS CARE AND SHARE

GREEN MARKETING MANAGEMENT

GREEN COMMUNITY MANAGEMENT

SOCIAL ENTERPRISE

AS PROCESS FROM CORPORATE ESR TO COMMUNITY ESR

OUT PROCESS

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

IN PROCESS

â&#x20AC;¢ 33

34 •

6 G R E E N LP N

GREEN ENTERPRISE The Business Strategy that Emphasizes the Management for Sustainability and the Management of Human Capital. 1. Sustainability Management GREEN ENTERPRISE

1. Appropriate Growth and Profit

In accordance with sustainable policy of the organization, the Company has developed the management guideline and strategy by establishing appropriate growth and profit target to achieve sustainable and substantial return. 2. Affordable House

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

Adhering to sufficiency economy philosophy which promotes social well-being, the Company has developed affordable home at an appropriate price as well as created a great quality of life for lower-middle income earners. 3. Good Quality of Life in Great Culture

Apart from developing residential condominiums, the Company also enhances the quality of life of all members of the community. The projects are equipped with convenient facilities and safety systems. More importantly, “care and share” culture is promoted through various activities to raise awareness of a harmonious community. 4. Balanced Profit for Stakeholders

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

• 35

The Company is against all forms of corruption, whether it be internal or external, by establishing concise operational process to reduce risks, communicating the importance of anti-corruption policy to employees, identifying integrity as one of the values of the organization, declaring the intention against corruption, complying with law and regulations and paying taxes. 7. Environmental and Social Awareness and Responsibility

The Company takes responsibility for the operational impacts and promotes environmental and social awareness and responsibility by promoting integrity in the organization and encouraging participation in the society through various environmental and social activities. 8. Giving Back to the Society

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

MARKETING MANAGEMENT

IN PROCESS - 6 GREEN LPN

6. Anti-Corruption

CONSTRUCTION PROCESS

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

COMMUNITY MANAGEMENT

5. Risk Management and Corporate Governance

DESIGN CONCEPT

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

36 •

6 G R E E N LP N

2. Management of Human Capital 1. Corporate Value

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

C L A S S I C

Cost with Quality is the project management that realizes the importance of the careful utilization of

resources and the efficiency of project management which focuses on the reduction of direct costs and hidden costs as well as the reduction of extra expenses in all departments. Lateral Thinking is the new way of thinking that is flexible and different without any fear of obstacles in order to improve, change, develop and create new products and services. The implementation and assessment of the new process must be facilitated. The aim is to add value to the products and services as well as the growth of the organization. Alliance is the way of treating long-time and trustworthy business alliances with trust and fairness with the willingness to collaborate and develop the work continuously as if being in the same organization for the achievement of the common goal. Speed with Quality is the commitment to achieve the target before the deadline while maintaining the quality of the operation. The operational process has always been improved to seek the process that is least time-consuming and increase the efficiency of the operation.

Respect for Stakeholders Service-Mindedness is the care for all groups of stakeholders at all times by putting ourselves in their shoes and showing willingness and enthusiasm to provide full services that exceed their expectations in order to add value to the services and create good impression. Integrity is the action towards the organization and related business partners which is honest,

responsible, transparent, fair and ethical.

Collaboration is the sense of collaboration, commitment, responsibility and kindness of all staff in

the organization and the volunteer spirit and awareness on sharing for the achievement of the common goal.

Dynamic

- Alliance A

LPN TEAM

S - Service-Minded

Customer Centric

COMMUNITY MANAGEMENT

S - Speed with Quality

FINANCIAL MANAGEMENT

L - Lateral Thinking

DESIGN CONCEPT

Cost Leadership

MARKETING MANAGEMENT

- Cost with Quality C

ENTERPRISE

Corporate Value

IN PROCESS - 6 GREEN LPN

Core Competency

â&#x20AC;¢ 37

CONSTRUCTION PROCESS

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

- Integrity I

Corporate Governance

C - Collaboration

ONE LPN

38 â&#x20AC;˘

6 G R E E N LP N

2. Vibrant Organization

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

6 Factors of Vibrant Organization

1. Staff

2. Work

3. Workplace

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

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

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

4. Remuneration

5. Career Opportunity

6. Pride in the Organization

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

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

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

â&#x20AC;¢ 39

DESIGN CONCEPT MARKETING MANAGEMENT COMMUNITY MANAGEMENT

CONSTRUCTION PROCESS

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

3. Learning and Growth

4. Work-Life Balance

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

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

40 •

6 G R E E N LP N

GREEN ENTERPRISE

GREEN ENTERPRISE OPERATION • Promotion of Organization Values The Company has urged the staff to be knowledgeable of and truly understand the values of the organization and apply those values in everyday operation. The knowledge of staff and operational process has regularly been reviewed all through the year through LPN Way manual and other materials. The assessment has also continuously been done to establish a standard behavior of all staff. In 2016, the trainings and activities organized are as follows: Orientation and trainings are organized for new staff to build their knowledge and understanding on the values of the organization. The trainings are organized for three days every month. The total of 12 trainings and orientation sessions have been organized with the participation of 322 staff. Staff’s knowledge and understanding on the values of the organization is reviewed via LPN Way in Action: Lateral Thinking training course. Four training sessions have been organized with the participation of 108 staff.

The Company encourages staff to always act in accordance with the values of the organization and LPN Way by giving out C-L-A-S-S-I-C Points for staff to accumulate. “Praising Staff with Great Conduct Along LPN Way” activity is organized. The total of 175 staff who are praised by outsiders are granted a certificate. The Seeds project is organized to promote creativity in the organization. The total of 124 projects are submitted.

“Hunting the Dream” competition is organized to test the knowledge and understanding on the values of the organization. The competition is participated by 250 staff. Site visits are organized to ensure that staff in the field e.g. at sales office and project sites understand the values of the organization.

Staff’s knowledge on organization values is refreshed through LPN Way in Action and Dream Hunting activities. The activities are participated by

Knowledge and understanding of all staff is assessed online. The assessment is done twice a year. The first assessment is participated by 1,405 staff and the second one is participated by 1,480 staff.

The total of

322

new staff

is trained on organization values.

358

The Seeds project is organized to promote creativity in the organization. The total of

124

innovative ideas are summited.

staff.

The total of

175 is praised by others.

staff

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

â&#x20AC;˘ 41

ENTERPRISE

â&#x20AC;˘ Vibrant Organization

Recruitment and Hiring

In 2016, there are the total of

The Company seeks to select and recruit staff whose qualifications are consistent with LPN Way. The recruitment and selection criteria will focus on decent grades and participation in voluntary activities. Moreover, the candidates will have to pass the test specifically designed for each position, the interview by the Human Resources Management Department as well as the hiring department to ensure that their qualifications are suitable for the opening position.

406

new staff recuited. Female

Male

127

In 2016, there are the total of 406 new staff recruited, 127 of which are male and 279 are female. The total of 369 staff have offered their resignation, 123 of which are male and 246 are female.

279

staff

Recruitment of New Staff and Resigned Staff by Gender, Age and Region (G4-LA1, G4-LA12) Recruitment of New Staff by Gender

Recruitment of New Staff by Age

Resigned Staff by Region

Staff (Persons)

450 400 350 300 250 200 150 100 50 0

400 332

134 116

Gender

Male Female

344 251 183 182

7 15

<30

30-50

>50

Age (Years)

450 400 350 300 250 200 150 100 50 0

Newly recruited

Resigned

438 380

27 19

21 13

DESIGN CONCEPT MARKETING MANAGEMENT

IN PROCESS - 6 GREEN LPN

CONSTRUCTION PROCESS

Moreover, there are clear policy, principles and regulations on human capital management. The promotion, performance evaluation, calculation of income, remuneration and other benefits will be subject to the performance and working capacity of staff regardless of their gender, sexual orientation or physical disability. The Company has also made the best attempt to create jobs for the disabled by setting the percentage of hiring people with disabilities in the organization. There are a number of disabled workers in the Company who are proud that they are able to provide for themselves and their families.

COMMUNITY MANAGEMENT

The Company upholds gender equality in workplace and respects the human rights of people. The decision-making of the recruitment process will be based on the capacity of the applicants. Gender, sexual oriental or other personal matters not related to work will not be taken into consideration. The types of employment include temporary employment, daily employment and permanent employment. Prior to being permanently employed, it is required that there will be a probation period of three months, during which the person will receive basic employment benefits such as medical fee and full compensation in case of accident in the workplace.

FINANCIAL MANAGEMENT

Employment Equality

15 21

5 7

Bangkok Nonthaburi Patumtani Samutprakarn Pattaya/ Udorntani Chonburi

8 6 Cha-am

Region

42 â&#x20AC;˘

6 G R E E N LP N

Performance Evaluation

The performance evaluation system of the Company is effective, fair and able to reflect the efficiency of staff. PA-1 form is used to evaluate the performance of staff every quarter so that the performance evaluation is concretely done. It also provides an opportunity for staff to improve their performance in a timely manner. Moreover, force ranking and bell curve systems are utilized to evaluate the performance of staff in each department. Rewards are paid to staff based on their performance to ensure fairness. Promotion and Position Changing

The Company promotes and develops the learning of staff by giving them a chance to change their positions, whether it be changing department, position or company to benefit both staff and organization in the long term. Career path and growth are also promoted among administrative staff (generalist) and professional staff (specialist). In 2016, the total of 181 staff from 1,261 staff or equivalent to 14.35% of all permanent staff are promoted. Opportunities are also provided to staff who have been working in the same department for at least five years to submit a request for a transfer to other department or company. There are 8 staff expressing their interest in doing so. The Human Resources Management Department has considered the request and approved the transfer as appropriate. Human Rights of the Underprivileged

The Company is committed to enhance the skills, quality of life and pride of disabled staff so that they are able to reach their full potential and have dignity at work. Various activities and trainings are organized specially for disabled staff such as computer training and voluntary activities. Disabled staff with talents are also encouraged to showcase their abilities on many occasions.

Staff Care The Company does not only promote fair employment but also staff care scheme to enhance their happiness in the workplace. Appropriate working environment and atmosphere is arranged and occupational health and safety of staff and their property is promoted. Welfare and other benefits are provided e.g. health insurance, medical check-up and provident fund. Activities for staff and their family are held such as Family Day and Family Trip. Scholarships are also awarded to children of staff. Furthermore, the Company provides an opportunity for staff to negotiate with the employer via the Welfare Committee. The elected 28 members of the Committee account for 0.88% of all staff. The term of office is two years. In 2016, the Welfare Committee has done the followings: 1. Revise the medical expense limit. 2. Increase options for medical care. 3. Provide Hepatitis B vaccine. 4. Arrange a massage session for staff every Friday. 5. Arrange for a medical doctor to be at the office headquarters every Thursday to provide medical advice to staff. Maternity leave and returning to work (G4-LA3)

37staff

take maternity leave

of which have returned to work

staff are taking further leave

has already resigned

The total of 24 staff takes maternity leave in 2015, 18 of which are still employees of the Company and six have already resigned.

Injury rate, absentee rate, work-related fatalities and occupational diseases by gender and region in 2016 (G4-LA6, G4-LA7) Injury/ Occupational Disease Injury Absent Fatality

Gender Male

4 3 0

region

Female Bangkok Pattaya

11 7 0

13 8 0

2 2 0

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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In 2016, a medical check-up is provided to

staff

ENTERPRISE

1,034

12 15

12 10

High blood glucose level

BMI (Obese)

Categories High blood pressure

High blood cholesterol level

Result of the Assessment of Engagement and Happiness at Work via Six Factors Engagement of staff : Average score in 2016

= 64%

, similar to that of 2015

2016

2015

64%

2014

59%

Happiness at Work via Six Factors : Average score in 2016

= 77%

, similar to that of 2015

2016

77%

2015

77%

2014

75%

DESIGN CONCEPT

MARKETING MANAGEMENT

The result of the annual medical check-up reveals that the number of staff with high blood pressure, high blood glucose level and high blood cholesterol level has increased from 2015. The Company thus invites medical doctors to provide medical advice to staff on a weekly basis and arranges for the group of staff with health risks to see a doctor to follow up the results. Moreover, activities to promote health of staff are organized such as a football match and muscle flexibility competition. Healthcare issue is also included in the orientation of new staff.

IN PROCESS - 6 GREEN LPN

2016

CONSTRUCTION PROCESS

70 60 50 40 30 20 10 0

2015

COMMUNITY MANAGEMENT

% of staff

FINANCIAL MANAGEMENT

Annual Medical Check-up Result in 2015 and 2016

44 •

6 G R E E N LP N

Result of the Engagement Survey of Staff in the “6 Factors of Vibrant Community”

Work : Happiness Score

Workplace : Happiness Score

Corporate: Happiness Score

Revenue: Happiness Score

Opportunity: Happiness Score

People: Happiness Score

75% 77% 83% 74% 77% 79% • Organization of Learning and Growth

• Work-Life Balance

% satisfaction in learning and development from the Engagement survey

% work-life balance from the Engagement survey

100% 80%

100%

77%

76%

78%

80%

60%

40%

20%

2014

2015

2016

The average score in 2016 is

= 1%

higher than that in 2015. In 2016, the satisfaction in learning and development as well as happiness of staff is reflected in the score which is higher than that in 2015.

66%

70%

72%

2014

2015

2016

The average score in 2016 is

= 2%

higher than that in 2015. In 2016, the work-life balance of staff is reflected in the score which is higher than that in 2015.

â&#x20AC;˘ 45

Staff can submit complaints or suggestions to the company through Engagement survey or Organization Development Department to improve the operation of the Company.

The Policy on Protection for Employees Who Inform on or Disclose of Wrongful Conduct or Non-Compliance with Laws and the Code of Conduct or Whistleblower Policy has been established to receive complaints from staff and ensure that the information of the informant/complainant is kept confidential to protect the identity of the complainant. Complaints or suggestions on the operation of the Company can be submitted via various channels as follows: 1. Directly inform the Chief Executive Officer. 2. Send a message to the Chief Executive Officer on WhatsApp. 3. Submit complaints/suggestions via the special P.O. Box no. 21. 4. Submit complaints/suggestions via the Suggestion Box. 5. Provide information in the Engagement survey. 6. Contact Organization Development Section, Human Resources Management Department. In 2016, there is no complaint from staff. However, there are 41 suggestions and recommendations submitted to the Suggestion Box. The pressing issues have already been taken care of and referred to related departments for further action. As for those related to staff welfare, the Company has raised the issues with the Welfare Committee for consideration and appropriate action.

DESIGN CONCEPT MARKETING MANAGEMENT CONSTRUCTION PROCESS

â&#x20AC;˘ Complaints from Staff and Actions Taken (G4-LA16)

COMMUNITY MANAGEMENT

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

46 •

6 G R E E N LP N

HIGHLIGHT “The Seeds: Idea Suggestion Year 2” “The Seeds: Idea Suggestion” competition was initiated in 2015 to encourage and support staff to come up with new innovations both in terms of operational process and product value. The Company promotes participation of staff in creating new innovations as well as teamwork and out of the box thinking. The project is well-received by staff and the objectives are as follows:

1To promote lateral thinking and foster creativity in a sustainable manner.

2To promote teamwork and out-of-the -box thinking and embrace new ideas and

changes.

3To increase knowledge and creative

skills of all staff to be applied in the operation.

“The Seeds” Awards 1. Innovation Award First Prize :

Equipment used to continuously lift up the lid and pump of the treatment tank Second Prize :

Double blade window water wiper

Third Prize :

Equipment used to remove water supply hose 2. Reprocess Award

Staff are given an opportunity to select a topic for development and suggest their ideas to improve the operation of the Company in various aspects such as reducing time, reducing costs, initiating innovations, increasing quality, enhancing safety and increasing management efficiency. The total of 124 projects is submitted which is 51 projects or 70% more from the previous year. This year, the prizes are divided into two categories. All of the projects submitted can be implemented to improve the operational standard and reduce costs of around 4,200,000 THB per year.

First Prize :

“Reduce Working Hours, Increase Efficiency” project Second Prize :

“Move and Count” project Third Prize :

“Communicate to the Heart with Line@” project

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

â&#x20AC;˘ 47

70%

is the percentage of staff participating in the Seeds Project

The number of projects submitted from staff has increased from that of the previous year by

51 The budget and prizes are

The total number of projects submitted is

124 3 4.2 million 9 253,600 THB.

Costs reduced are

(excluding indirect costs that can be reduced but not assessable)

THB per year.

projects

focus on safety

projects

focus on innovation

Expenses or costs saved are

33,870

THB.

projects

focus on reducing time

15 12

projects

focus on reducing costs

projects

focus on increasing efficiency

projects

focus on other topics

48 •

6 G R E E N LP N

HIGHLIGHT Promoting Integrity in the Workplace The Company emphasizes the importance of anti-corruption compliance and promotes integrity and ethics in the workplace on a regular basis. Anti-corruption policy and regulations have been established and the punishment for staff who are found guilty of a misconduct is clearly communicated to all staff. Workshops are organized to reduce corruption and misconduct within the organization and to promote anti-corruption norm in the workplace. The Company frequently shares and exchanges viewpoints with staff and performs corruption risk assessment in the departments with the likelihood of corruption or violation of regulations. The operational process of all departments in the Company has been improved to request for Level 4 Certification from the Collective Action Coalition Against Corruption (CAC). In addition, anti-corruption practices are included in the orientation session for new staff as well as the Community Management Training Course (CMTC). New staff must be trained and informed of the anti-corruption policy. In 2016, the Company has introduced the training course on “Sustainable Business Operation” with Mr. Amornsuk Noparumpa, Chairman of the Board of Directors, as a special trainer. It is to raise awareness of all staff, inclusive of directors and operational ones, on the significance of ethical business operation in order to enhance the sustainability of the business operation of the Company. The content of the training course is as follows:

1Failure or deterioration of an organization comprises:

• Failure in business operation • Misconduct of staff • Misconduct of an organization

2Business Code of Conduct comprises: • Human and labor rights • Environment, health and safety • Anti-corruption measures • Gifts and organization of reception • Conflict of interest • Political activity • Use of information and property

• Disclosure of information and communication • Transaction of LPN • Trade competition • Anti-money laundering measure • Duty of directors and staff

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The total of 308 staff attends the training. However, there are seven cases of corruption in 2016. All the seven cases which have already gone through a thorough investigation process are as follows:

Stealing from the Company:

cases

Stealing from staff:

case

Staff corruption:

case

A Fact-Finding Committee has been appointed to investigate all the cases above and to determine the punishment in accordance with the regulations of the Company. At the same, the operational process is improved and anti-corruption measures strengthened in order to prevent reoccurrence of corruption in the future.

Mr. Amornsuk Noparumpa, Chairman of the Board of Directors, is the special trainer to raise awareness of the importance of ethical business operation.

50 â&#x20AC;˘

6 G R E E N LP N

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

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

â&#x20AC;˘ Accountability Financial Statement The Company realizes the importance of the accuracy and transparency of the financial statement and has arranged appropriate and efficient internal control system. Significant information is disclosed in the notes to financial statement along with the explanation and analysis to ensure that the accounting information is accurate and complete for the utmost benefit of the shareholders and investors in using the financial statement. The components of the accountable financial statement are as follows: 1. Transparency

The financial statement of the Company is prepared in a transparent manner in accordance with the good corporate governance principles. The appropriate and efficient internal control system is arranged. The Board of Directors of the Company has appointed an Audit Committee comprising four independent directors, three of whom are knowledgeable in finance and accounting, to review the accounting policy and audit the quality of the financial statement as well as the internal control system. The report of the Audit Committee will be included in Form 56-1 and the Annual Report of the Company. 2. Auditability

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

â&#x20AC;˘ 51

4. Measurability

In order to ensure the transparency of the audit standard which will entail the sustainability of the Company, the financial statement of the Company is prepared in accordance with the financial reporting standard as prescribed by the Accounting Profession Act B.E. 2547. The brief items in the financial statement are prepared in compliance with the notification of the Department of Business Development, the Ministry of Commerce in 2011 regarding the requirement for the brief items to be shown in the financial statements, and in compliance with the regulations of the Securities and Exchange Commissions regarding the Preparation and Presentation of Financial Statements under the Securities and Exchange Act B.E. 2535. 5. Discipline

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

DESIGN CONCEPT

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

MARKETING MANAGEMENT

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

CONSTRUCTION PROCESS

6. Financial Risk Management

COMMUNITY MANAGEMENT

3. Disclosure without Hidden Agenda

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

ENTERPRISE

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6 G R E E N LP N

GREEN FINANCIAL MANAGEMENT

OPERATION Details

2016

Direct economic value generated Revenues • Revenue from sale and services • Interest income • Gain from selling assets • Other income Total economic value generated

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

99.7% 0.0% 0.0% 0.3% 100.0%

10,749,536,733.83 658,613,293.35 1,471,176,658.15 1,025,794,953.12 34,664,137.10 13,939,785,775.55

77.1% 4.7% 10.6% 7.4% 0.2% 100.0%

Economic value distributed • Operating costs • Employee wages and benefits • Payments to providers of capital • Payments to government • Community investments Total economic value distributed

Economic value retained

710,849,623.27

7.4%

0.3%

Payments to government

10.6%

Other income

Community investments

Payments to providers of capital Direct economic value generated

4.7%

99.7%

Economic value distributed

Employee wages and benefits

Revenue from sale and services

0.2%

• 20 Miles March Growth Strategy

77.1%

Operating costs

-12% Growth

Million THB 18,000

16,700

15,000

12,445

12,000 9,000 6,000 3,000 0

1,944 2546 2003

2,478 2547 2004

3,583

2548 2005

5,020

2549 2006

6,824

7,304

8,592

2550 2007

2551 2008

2552 2009

13,483

14,401

14,600

12,960

10,047

2553 2010

2554 2011

2555 2012

2556 2013

2557 2014

2558 2015

2559 2016

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

business.

Debt to Equity Ratio Result 2015 0.7 : 1

Target 2016 1:1

Result 2016 0.5 : 1

% Gross Profit Margin Result 2015 31.1 %

Target 2016 +- 30 %

Result 2016 31.3 %

3. Earning per Share The earning per share is the portion of a company’s net profit from the operational performance each year to be allocated to shareholders as dividends. It indicates the profit from the investment of the company. The Company will present the information on the earning per share to the Annual General Meeting of Shareholders to seek approval for dividend payment. This is the true indicator of the operational efficiency of the Company. The Company has identified the target of the earning per share and dividend payment at the appropriate amount and proportion for shareholders to enable the Company to continually invest, expand and compete in the market. It will also reassure the shareholders of the profitable returns for sustainable growth. % Earning per Share

Result 2015 55.0 %

Target 2016 ≥ 50 %

Result 2016 61.0 %

ENTERPRISE FINANCIAL MANAGEMENT DESIGN CONCEPT MARKETING MANAGEMENT

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

The Company has identified the gross profit margin target that is appropriate with the operation. It is also compared with that of the competitors in the market to indicate the efficiency of the business operation of the Company.

IN PROCESS - 6 GREEN LPN

• Indicators

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

CONSTRUCTION PROCESS

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

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COMMUNITY MANAGEMENT

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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6 G R E E N LP N

HIGHLIGHT “Year of Shift” for Business Continuity The policy of the Company is to regularly and transparently disclose the Business Continuity Plan (BCP) to communicate the financial management direction to shareholders to build their confidence. It is also to ensure that the returns will appropriately be allocated and financial risks are properly managed to build up the economic stability and sustainable growth of the Company. From 2015 to 2016, the economy has entered into recession and will potentially remain so for another couple of years. Apart from managing risks, the Company has prepared the Business Continuity Plan (BCP) which is planned out step-by-step and categorized the situation by the level of severity. Since there are no prospects for economic recovery in 2017, the Company has decided that it would be a “Year of Shift”. The core business strategy is revised and the business operation direction of the Company and four subsidiary companies is established to suit the current circumstances and enable the Company to generate more income from subsidiary companies by providing services to other companies and expand the customer base to be inclusive of not only middle to lower-middle income earners but also the upper-middle ones. Furthermore, the projects launched will be those located in inner Bangkok. The marketing strategy is also revised and the brand image is enhanced to be consistent with the change of target customers. Additionally, the business plan and target of Pornsanti Co., Ltd. (PST), a subsidiary company, are revised to increase the sales volume and profit from horizontal projects and community malls. The construction processes are developed in order to increase product quality and cost efficiency as well as shorten the construction period. At the same time, Lumpini Property Management Co., Ltd. (LPP) will provide full community management service to other companies while the business and shareholding structure of Lumpini Project Management Service Co., Ltd. (LPS) will be changed to generate more income, expand the business base and get ready to provide full project management services to other real estate companies. As for Lumpini Property Service and Care Co., Ltd. (LPC), a subsidiary company established to create job opportunities and income for underprivileged women, the plan is to revise the operational plan to create income for the disabled and the elderly and officially become a social enterprise. All of the above are measures taken to achieve the “Era of Sustainability”.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 55

The year 2017 is the “Year of Shift” and the brand image is revised.

The target customers are revised to include not only middle to lower-middle income earners but also upper-middle ones in order to respond to the current situations where there are no prospects for economic recovery.

56 •

6 G R E E N LP N

GREEN DESIGN CONCEPT The Product Design that is Environmentally Responsible.

GREEN DESIGN CONCEPT

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

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

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

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

Innovation in Design (G4-EN7)

The condominium unit is designed to have an awning and a porch to reduce the heat from sunlight that directly enters the units. The lighting and air conditioning system are to be efficient and suitable to reduce electricity use. Renewable energy such as solar power is used for garden lighting. The Community Management Department is responsible for managing energy usage in the condominium to be as efficient as possible while also being safe at the same time. Material and Resources (G4-EN1)

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

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

ENTERPRISE DESIGN CONCEPT

Energy Efficiency (G4-EN7)

MARKETING MANAGEMENT

It is focused on the efficiency of sustainable community management under “F-B-LE-S+P” strategy i.e. the management of infrastructure and convenient facilities in the project, the management of budget, the promotion of discipline and culture of living together, the conservation of environment in the community and appropriate use of energy, the management of the security system and other regulations and the development of the capacity of staff involved in community management.

IN PROCESS - 6 GREEN LPN

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

FINANCIAL MANAGEMENT

Indoor Environment Quality

CONSTRUCTION PROCESS

Water Efficiency (G4-EN10)

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COMMUNITY MANAGEMENT

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

58 â&#x20AC;˘

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

â&#x20AC;¢ 59

DESIGN CONCEPT MARKETING MANAGEMENT COMMUNITY MANAGEMENT

CONSTRUCTION PROCESS

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

The condominium unit is designed to have an awning and a porch to reduce the heat from sunlight that directly enters the units.

60 •

6 G R E E N LP N

GREEN DESIGN CONCEPT

OPERATION The Company stresses the significance of project design and development, therefore, the design and layout of the project are carefully planned to reduce impacts on the environment as well as conserve energy. It is developed from sustainable design which focuses on sustainable use of resources and minimum environmental impacts. Green project design also aims to create a great living environment and promotes health and quality of life of the residents in order to build “Vibrant Community For All”.

The above concept has paved the way to the development of LPN Green Design Standard which is developed along with LPN Green Construction Process Standard to prevent and reduce impacts from project development on environment and society. In 2016, the Company has strengthened the standard as the design technology and capability of the design team develop in order to respond to severe environmental problems. The environmentally responsible product design standard has been upgraded from 7 Sections 50 Topics to 9 Sections 86 Topics. The section on universal design is introduced in response to the changing living condition in the Thai society. The nine sections of the green condominium design standard are as follows: Section 1 Location and Environment (8 topics)

i.e. to select appropriate project location to avoid traffic problems and provide green space larger than that required by law. Section 2 Water Efficiency (14 topics)

i.e. to use water-conserving sanitary ware and use treated wastewater in the project for efficient use of water. Section 3 Energy and Air (7 topics) (G4-EN7)

Green project design also aims to create a great living environment and promotes health and quality of life of the residents.

i.e. to design the condominium units to have an awning and a porch to reduce heat from sunlight and design the lighting and air conditioning system to be suitable for use. The energy consumption reduction plan is also in place.

Section 8 Universal Design (Condominium Units) (14 topics)

Section 6 Indoor Air Quality (Condominium Unit) (3 topics)

Section 9 Innovation in Design (6 topics)

i.e. to select environmentally friendly and safe materials and to design the unit to allow natural light into the room.

i.e. to install handrails, alarms, convenient facilities and build a bathroom with separate dry and wet area.

i.e. to include unique innovative design of the Company in the checklist to further minimize impacts of project design.

LPN Green Design Standard has been applied in all projects. However, Section 8: Universal Design (Condominium Units) will only be implemented when a request from a joint owner with special needs is submitted. Section 9: Innovation in Design will be applied in LPN Signature Green Project.

The materials used are environmentally friendly and safe. The condominium units are designed to suit the needs of all age groups. Handrails are installed, convenient facilities are provided and the dry and wet area in the bathroom is separated.

FINANCIAL MANAGEMENT

IN PROCESS - 6 GREEN LPN

i.e. to use environmentally friendly materials to take into consideration the health and welfare of the residents and to ventilate the common area.

i.e. to install handrails, build ramps instead of stairs at changes of level and designate parking spaces for those with special needs.

DESIGN CONCEPT

Section 5 Indoor Air Quality (Common Area) (6 topics)

i.e. to use domestic projects and environmentally friendly materials. The buildings are designed to maximize the economic value of the materials and reduce waste of materials that would have to be discarded back to the environment.

MARKETING MANAGEMENT

Section 7 Universal Design (Common Area) (28 topics)

CONSTRUCTION PROCESS

Section 4 Construction Materials and Resources (3 topics)

ENTERPRISE

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COMMUNITY MANAGEMENT

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HIGHLIGHT LPN and Energy-Efficient Building Design All through 27 years of developing more than 129 residential condominium projects under “Lumpini” brand, the Company is well aware that we are able to play an important role in reducing environmental impacts and conserving energy. Long-term energy management plan has thus been prepared to enhance energy efficiency in existing projects and design energy-efficient buildings in newly constructed projects. Lumpini Ville Lasalle-Bearing is the model of energy-efficient buildings. The energy monitoring system has been installed in the project for three months. The information compiled allows the Company to understand the users’ behavior and patterns of electricity use. It is analyzed to be used as a guideline for energy conservation in different aspects e.g. policy, equipment, electricity system work and management for proper and efficient energy management. It has also been used in building and project design in order to reduce environmental impacts which is in accordance with the Green Building Standards of the United States.

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In order to demonstrate our strong commitment in promoting energy conservation, the Company has submitted the assessment form for energy-efficient building to comply with the Building Energy Code of the Department of Alternative Energy Development and Energy Conservation, Ministry of Energy. Five systems in the building are assessed, namely, building envelope system, lighting system, air conditioning system, water heating equipment and renewable energy usage. All the ten buildings from three projects have passed the assessment criteria and regulations of the Ministerial Regulations Prescribing Type or Size of Building and Standard, Criteria and Procedure in Designing Building for Energy Conservation B.E. 2552. The details are as follows: 1. All four buildings of Lumpini Park Petchakasem 98 pass the criteria of combined energy usage. The combined energy used is 33% lower than the standard. 2. All four buildings of Lumpini Ville Onnut-Ladkrabang pass the criteria of combined energy usage. The combined energy used is 41% lower than the standard. 3. Both buildings of Lumpini Park Rama 9-Ratchada pass the criteria of combined energy usage. The combined energy used is 45% lower than the standard. As a consequence of the assessment above, the Company is granted Energy Efficient Building Award 2016 from the Department of Alternative Energy Development and Energy Conservation in Building Energy Code Awards 2016 event.

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6 G R E E N LP N

GREEN MARKETING MANAGEMENT The Fair Marketing Strategy for the Customers and Competitors. 1. Product Strategy

GREEN MARKETING MANAGEMENT

Green marketing management is the marketing activities that are fair to the customers and competitors. The marketing strategy is designed to be in accordance with our determination to build the first high quality home at affordable price for the middle to lower-middle income earners in order to create a great quality of life and society for the residents in a responsible manner both before and after project handover. The marketing policy of the Company is fair, respects consumers’ right and treats the competitors with fairness. The 6Ps Marketing Strategy is as follows: 1. Product Strategy 2. Pricing Strategy 3. Place Strategy 4. Promotion Strategy 5. People Strategy 6. Process Strategy

The Company strives to deliver unique product values both in condominium units and common area to the customers. The product values are developed from knowledge and experiences in project development and “Vibrant Community For All” community management strategy to accommodate the lifestyle of the residents. The construction standard is strictly controlled and the construction materials are carefully selected in order to build condominium units that are perfect to live in. 2. Pricing Strategy

The selling price is affordable and set to be lower than that of the competitors’ projects targeting the same group of customers by managing costs and expenses in all production processes. The profit and terms and conditions of the installment payment for down payment are determined in line with the status of the target group. The Company also provides financial management services to customers to facilitate their loan application and create an opportunity for them to own a home. 3. Place Strategy

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

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ENTERPRISE

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6. Process Strategy

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

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

5. People Strategy

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

DESIGN CONCEPT MARKETING MANAGEMENT CONSTRUCTION PROCESS

4. Promotion Strategy

COMMUNITY MANAGEMENT

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

All staff realize the importance of customer’s satisfaction and are trained on service-mindedness.

66 •

6 G R E E N LP N

GREEN MARKETING MANAGEMENT

OPERATION The Company puts customers first. Customer Experience Management is thus identified as the core strategy for the business operation of the organization to ensure fair treatment of customers and competitors. This year, the emphasis is put on matching services with customer lifecycle and improving customer satisfaction to build brand loyalty. This is a part of our sustainable development goals. Customer care is provided during the three following periods:

Before a purchase

During a purchase

After a purchase

The information provided to potential customers must be accurate and match their needs, enabling them to make an informed decision and be impressed with the services.

The customers must be informed of the project progress and operational process of the Company so as to build up their confidence in the product and service value as well as to get ready to move in. The schedule of various activities, for example, to buy-to sell agreement signing, submission of loan application and condominium unit handover are communicated to customers.

After the condominium unit is handed over and the customers move in, their quality of life and safety are taken care of under the concept of “Vibrant Community For All”.

The atmosphere at the launch of Lumpini projects

• 67

Exper ienc es a fter m

30. Maids at Juristic Person Office 29. Security Officers at Juristic Person Office 28. Building Maintenance Workers 27. Administrative Officers of Juristic Person 26. Community Managers 25. Condominium Units 24. Common Properties 23. Convenient Facilities

ing buy ore bef

32. Maintenance Officers after Ownership Transfer in ng 31. Security Relation Officers ovi

Touchpoint Wheel Joint Owners/Residents (Co-owner)

Customers

10. Condominium Unit Handover Activity 11. Ownership Transfer Office 12. Juristic Person Office 13. LPN Payment Card

22. Bank Officers 14. Installment Payment Follow-up System 21. Officers of Business Alliances s 15. Mobile App. s ce 20. Construction Officers E x p e ri g pro n i y u e b n 16. Ownership Transfer Officers c g e s d u ri n 19. Customer Experience Management Officer 18. LPN Staff 17. Finance Officers

In addition to providing standardized services to build positive experiences at all touch points, the Company conducts a performance evaluation through customer satisfaction survey in nine processes and 21 touch points that are directly in contact with the customers. Overall, the customer satisfaction has increased, especially in sales and community management under “Vibrant Community For All” concept. The average score of satisfaction with services is 93% and the average net promoter score of customers who receive ownership transfer service, joint owners, residents and joint owners committee members is 46%. The scores reflect the customer’s confidence in “Lumpini” brand.

MARKETING MANAGEMENT

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

IN PROCESS - 6 GREEN LPN

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

CONSTRUCTION PROCESS

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

COMMUNITY MANAGEMENT

• Satisfaction and Complaint Management

DESIGN CONCEPT

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

68 •

6 G R E E N LP N

Satisfaction Score (G4-PR5) 100 80 60 40 20 0

98 97 96

97 97 96

85 85 84

92 94 93

92 93 94

91 91 93

91 93 93

92 92 95

2014 2015 2016

94 92

The average Satisfaction Score in 2016

Call Center

Sale

Construction Transfer

Annual General Meeting

93%

Committee Repair after Brokerage Community Member Ownership Business Maid Transfer

Net Promoter Score 80 60 40 20 0

Call Center

Sale

44 43

Construction Transfer

44 49 46

46 45

55 36 36

2014 2015 2016

The average Net Promoter Score in 2016

49%

Committee Repair after Brokerage Community Member Ownership Business Maid Transfer

Annual General Meeting

• Summary of Satisfaction 2016 02

Land Purchase

Project Location Selection

Project Design

Financial Management

Sale & Marketing Management

Call Center 96% Sale Officer 96%

Customer’s Experience Management

Construction Management

Handover Management

Moving Preparation

010

Community Management

บร�หารชุมชน

Security Officer Lumpini Maid Handover activity HOM Officer PMD Officer Bank Officer Product

Net Promoter Score (2015 = 44%)

95% 92% 99% 96% 84%

49%

Community Manager Community Administrative Officer Community Mechanic

96% 96%

CSD Officer BBD Officer Facility Solution

94% 95% 93% 87%

93%

Satisfaction Score (2015 = 93%)

Community Receptionist Community Service Officer

91% 92%

94% 95%

93%

In 2017, the standard score is set at 85% which is similar to that of the previous year. But the calculation method will be more rigorous and the Company will find ways to increase the Net Promoter Score and develop the service standard.

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

4. Take action to solve the problem and record the outcome in the system and inform the customer of the proposed solution. 5. Related department reports the outcome of the action taken to the Customer Experience Management Department and executives 6. Contact the customer to follow up on the issue 7. Prepare a monthly report to be submitted to the executives and related department 8. File the report and share interesting case studies with other staff in the knowledge sharing session

Customer/ Resident

Executive

Start Receive complaints

2. inform the related department within one day and record it in the complaint system 3. Related department acknowledges the complaint and contacts the customer within one day after being informed of the complaint

Customer Experience Management Departmet (CEM)

FINANCIAL MANAGEMENT CONSTRUCTION PROCESS

Related Department

Report the complaint and record it in the system

Copied on the complaint report

Receive the complaint report

Investigate the nature of the problem

Take action to solve the problem

Explain the proposed solution to the customer

Report the outcome

Report the outcome Follow up on the outcome Complaint report File the report End of the process

COMMUNITY MANAGEMENT

Process

DESIGN CONCEPT

The Complaint Management Process of the Company

MARKETING MANAGEMENT

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

ENTERPRISE

â&#x20AC;˘ 69

IN PROCESS - 6 GREEN LPN

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

70 •

6 G R E E N LP N

• Complaints in 2016 In 2016, there is no major complaint issue from the customers, residents or other related persons. However, the Company has compiled and categorized the complaint issues to be used as case studies to develop and improve the operation especially that involves the delivery of product and service values to customers. The complaints are categorized into two groups as follows: Group 1: Product Value

Group 2: Service Value 1.

Product Value

1. Complaints about products

2. Complaints from neighboring houses

Service Value

1. Complaints about Community Management

2. Complaints about provision of service

บร�หารชุมชน

• Unfinished repair work in condominium units • Leaks or broken equipment

• Loud noise or dust problems from construction site

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

• Manner of staff and quality of services provided

• Number of Complaints in 2016 There are 603 complaints submitted, decreasing 203 complaints (25%) from 2015 with the tendency to decrease further in the future. Since smart phone makes communication easier, the problems are solved in a timely manner. Even though the number of complaints account for 0.5% of the number of customers (119,225 units), the Company still stresses the significance of all complaints received. As for touch points, there are 340 complaints submitted, decreasing 41 complaints (11%) from the previous year. There are 235 complaints submitted on F-B-L-E-S Management, decreasing 145 complaints (39%). Furthermore, the customers who are impressed with the services have submitted 134 compliments to the Company which is the highest number. The Company praises the staff who receive a compliment from customers in order to set example for other staff and encourage them to keep up the good work.

Number of Issues : 870

15% 870 issues

Suggestions (133 issues)

15%

Compliments (134 issues)

70% Complaints (603 issues)

â&#x20AC;˘ 71

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

Communication Channels 2016

FINANCIAL MANAGEMENT

LPN Care 184 complaints IN PROCESS - 6 GREEN LPN

352 complaints 184 complaints

Call Center 204 complaints 253 complaints 204 complaints

Website 214 complaints

CONSTRUCTION PROCESS

201 complaints 214 complaints

COMMUNITY MANAGEMENT

4 Categories of Complaints Complaints in 2016 : 603 Complaints

People (S-E-R-V-I-C-E-S) 340 complaints

L 158

Environment (In/Out/As Process) 5 complaints (G4-EN34)

56%

Product Value (Q-C-S-E-S) 23 complaints

F 55

39%

603 complaints

B 1

Service Value (F-B-L-E-S) 235 complaints Parking space, electricity, water supply

Top Five Touch Points

Community Manager:

Community Administrative Officer:

Community Security Officer:

increasing 14 complaints from the previous year, regarding the follow up of work

decreasing 24 complaints from the previous year, regarding making mistakes and being negligent

81 complaints

DESIGN CONCEPT

2015

1 complaint

MARKETING MANAGEMENT

Personal: 1 complaint

43 complaints

39 complaints

increasing 2 complaints from the previous year, regarding impoliteness

S 17

E 4

Common Noise problem, Garbage area fee is regulations, charged cigarette twice. problem

Keycard, gate barrier

Sale Officer:

Community worker:

27 complaints

increasing 2 complaints from the previous year, regarding not following up work and not being responsive

24 complaints

decreasing 5 complaints from the previous year, regarding being ignorant and not following up work

72 â&#x20AC;˘

6 G R E E N LP N

Complaint Management Guideline

1. Increase the speed of response from within eight hours to three hours to better address the customer complaints and identify appropriate timing for solving the problems in accordance with the category of complaints (within three, five and seven days). 2. Develop the standard of services provided by organizing a training on how to deal with complaints from customers and how to upgrade the quality of services provided to customers at touch points. 3. Randomly monitor the quality of services provided through a mystery shopper to look for defects and improvements. The assessment will be done by the third party who does not have any interest in the outcome of the assessment. 4. Manage the complaints in accordance with the level of severity and impacts on customers.

3 Hours The average response time to complaints is shortened from within 8 hours to

only

hours.

Complaint Management by Category (603 Complaints) Level of severity High

Category 2 Complaints that are very serious making the customers so upset that they may stop buying the service from the Company - The repair work is not finished properly

43 complaints

= 7%

= 0%

Category 3 Complaints that are frequent

but do not affect the customersâ&#x20AC;&#x2122; decision not to buy the service from the Company - Unpuntuality, not making appointment in advanced - Errors and mistakes - Delay in following up work

- cigarette - noise problem - regulations

254 complaints

serious and affect the Company immediately

0 complaint

Category 4 General complaints

Low

Category 1 Complaints that are very

= 42%

306 complaints Frequency

= 51% High

Preventing Customer Complaints

Information consumption behavior has vastly been changed as a result of social media. Words and comments travel fast online. The customers in the social media expect a quick response. As statistics show, Line is the most used and popular communication channel as it is convenient and quick. The information can be sent right away and the receiver can respond back immediately. Last year, the Company focuses on the communication with customers while they are making a reservation to buy condominium units. Line is the program used as a communication tool to minimize the problem of losing contact with the customers while they are making a reservation to buy condominium units as well as to build confidence on the responsibility of the organization. The Company communicates through Line by providing information on the project, the loan application process, the living regulations and other information to the customers in advance to prevent possible complaints in the future. The Company can also make enquiries and keep the customers informed of the services provided. The communication with customers during a purchase starts in quarter two, resulting in 64% decrease of project complaints and 94% satisfaction score. It is because of the quick response and the right information provided to the customers to match their needs.

94%

satisfaction score of the communications through LINE to the customers

64% decrease of project complaints

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 73

• Mystery Shopper ENTERPRISE

Apart from ensuring high standard of all touch points, the Company also monitors the performance of staff via mystery shoppers who will observe and assess the quality of services provided. The defects in services will be improved and the service standard will be established to create great experiences for customers and residents. The mystery shopper will monitor the followings

Knowledge & Competency

Customer Approach Personality

Display Room /Facilities

Parking & Sign

CONSTRUCTION PROCESS

Dress Code

Environment

Cleanliness

COMMUNITY MANAGEMENT

Sales Technique /Follow up

DESIGN CONCEPT

Location

MARKETING MANAGEMENT

Greeting

IN PROCESS - 6 GREEN LPN

Research Methodology

FINANCIAL MANAGEMENT

1. Staff (dress code, how they greet and interact with customers, information provided, knowledge about the product, personality and follow-up of customer needs) 2. Place (cleanliness, convenience, environment and location)

74 •

6 G R E E N LP N

HIGHLIGHT Communicating Through Line The percentage of communication channel used by Thais

It is found that losing contact with customers after they have reserved to buy a condominium unit is the main reason for customers’ loss of confidence in project development of the Company. The Company has studied the consumers’ behavior and look for the best channel to communicate with the customers on a regular basis to minimize complaints on new projects launched. The information from the survey conducted by Zocial Inc. shows that more than 33 million Thais are using Line to communicate. It is the two-way communication channel that is most accessible, private and most popular in Thailand.

99% 84% 56% 41%

Therefore, Line has been chosen as a tool to communicate with customers. At present, there are Line groups in 14 projects.

Lpark-PKS98

817

Members

LV-NI

492

Members

LP-24

325

Members

776 126

Members

703 89

Members

436

Here is home

LV-SK76

372

223

254

Members

LP-BN

Members

LV-RPB

Members

LB-CA

LPN-Exclusive

LV-RR2

LS-PM

223

Lpark-PKS98 #2

LX-TS

LSV-CA

149

30%

Members

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

â&#x20AC;˘ 75

Taking Care of Customers through Line

The communication topics are selected from the list of frequently asked questions. The content is simplified so that it would be easy to communicate and understand. Other information that may be useful for the residents is also communicated. In addition, there are activities to build relationship with the customers and promotes participation in the community. Line facilitates two-way communication. Within three hours of receiving questions or requests from customers, a response must be made to ease customersâ&#x20AC;&#x2122; concerns. Example of Communication Topics

Reservation - Documents that the customers will receive after paying the reservation fee - Payment method for down payment installment payment - Discount offered for direct installment payment

Down Payment Installment - How to maintain a good credit while paying down payment installment - Project progress - Happy Lumpini Activity - Invitation to submit loan application

Submission of Loan Application - Documents for loan application - Interest rate - Contract signing date - Copy of title deed collection date - Condominium unit inspection date

Ownership Transfer - Ownership transfer expenses - Follow up of repair work

- Introduction of Juristic Person Officers - Turning on electricity and water supply - Decoration - Introduction of BBD - Introduction of maids

Handover - Communicate and monitor - Regulations - Payment method for other expenses - Recreational activities - AGM date

Other general information, important dates, festival and activities and news update

Outcome of Communicating Through Line

After Line is used as a communication tool, the satisfaction of customers on communication and response from the Company is as high as 96%. The number of complaints in projects has decreased by 64%. As a consequence of the success in minimizing the gap between the Company and customers who have reserved to buy condominium units through the use of Line, there is a plan for the Communication Management Team to use the same tool to communicate with the residents in the community after moving in.

the satisfaction of customers on communication and response from the Company is as high as

96%

76 •

6 G R E E N LP N

HIGHLIGHT Baan Sarn Fun Project Baan Sarn Fun Project is initiated in 2012 to help those who wish to own the very first house fulfill their dream. The objective of the project is consistent with the operational policy of the Company. The assistance will be provided to customers who have regularly made installment payment for the down payment but financial institutions reject their loan application. It could be because the customers have debt burdens, have a history of late payments, their gross income or years of service fail to meet the criteria of the financial institution or are freelancers and thus do not have sufficient documents to support their loan application. Financial tools are applied to manage the customers’ credit such as providing recommendations to enhance the customers’ financial discipline and ensuring that the documents required for loan application are complete. More importantly, the Company provides the opportunity for the customers of “Baan Sarn Fun” project to move into the condominium developed by the Company so as to save costs while they are preparing for loan application and help upgrade their quality of life. At present, “Baan Sarn Fun” project has been implemented for the fifth consecutive year. The owners of 664 condominium units, the ownership of 372 or 56.2% of which have already been transferred, from 26 projects have joined the program with the combined installment value of 685.63 million THB. The payment of installments of around 4.37% of the condominium units is overdue. In 2016, the loan approving criteria of many financial institutions has become very strict as a result of increasing household debts so there are as many as 291 condominium unit owners requesting to join the program which is equivalent of 676% increase from 43 condominium units in 2015. The Company thus needs to prepare a plan to manage risks by managing loans together with financial institutions and being assertive with the customers joining the program to manage the percentage of the overdue payment and cancellation rate to be lower than 3% in 2016. The target in 2015 was 5%.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

Status

Unit

1. Customers joining the program 2. Ownership transferred 3. Request for cancellation of the agreement 4. Payment overdue so the agreement is cancelled. 5. Customers being in the middle of the agreement period

664 372 24

685.63 406.75 39.34

100.00% 56.02% 3.61%

14.15

4.37%

239

225.40

35.99%

56.02%

35.99% Customers being in the middle of the agreement period

Ownership transferred

Percentage

The target for late-paying customers in 2016 is less than

5% 1.53%

Customers joining the Program 664 Unit

In 2016, the payment of

4.37% Payment overdue so the agreement is cancelled

Value (million THB)

â&#x20AC;˘ 77

3.61% Request for cancellation of the agreement

of customers are overdue. The target for late-paying customers in 2017 is less than

78 •

6 G R E E N LP N

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

GREEN CONSTRUCTION PROCESS

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

Safety standards of LPN are very strict so as to prevent accidents. The safety of construction materials and buildings are ensured on a regular basis.

â&#x20AC;˘ 79

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

Safety of Workers and Participants

People Management

Cost Control and Management

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

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

The Company ensures the safety of construction workers and related parties during construction by establishing a strict operational standard in terms of safety to prevent any accidents that may occur. Moreover, the safety of construction equipment and buildings has always been monitored. The Company also stresses the importance of occupational health and good quality of life of construction workers. It is to manage the impacts on the stakeholders. The Company gives importance to the labor rights and quality of life of the construction workers that are normally ignored by other business operators, the responsibility towards neighboring communities of the construction site as well as mutual growth and development with the business alliances or trade partners. The communities and environment surrounding the construction site are also developed.

DESIGN CONCEPT MARKETING MANAGEMENT

IN PROCESS - 6 GREEN LPN

Quality of Product

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

CONSTRUCTION PROCESS

Environmental Responsibility

COMMUNITY MANAGEMENT

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

80 â&#x20AC;˘

6 G R E E N LP N

GREEN CONSTRUCTION PROCESS

OPERATION The construction process is managed with the concept of Q-C-S-E-S+P in order to build high quality products to be delivered to the customers on schedule. It is also to be responsible for the environment and surrounding communities and prevent impacts from construction. LPN Green Project Development Checklist has been established as a construction standard. The operational processes and new technology and innovations are initiated to enhance the efficiency of construction management. In the previous year, the Company has managed the impacts of construction process on environment and society by strictly adhering to the Green Construction Process Standard. It is well aware that the construction process can impact the external society in various aspects. New technology and innovations have been utilized to increase the operational efficiency, minimize environmental impacts and prevent impacts on neighboring communities and the society at large by implementing Q-C-S-E-S+P strategy. The main objective is to be in compliance with the environmental and social responsibility policy. Furthermore, the Company puts emphasis on building great relationship with neighboring communities and residents. In all projects developed, an ad hoc team will be sent into the construction site to build understanding with, present the information on the project to and obtain comments and suggestions from nearby communities. The information will be filed and analyzed to find solutions to their concerns. This is done from the start of the construction until the project is handed over to the customers. In 2016, Green Construction Process Standard has been applied in seven projects that are under construction. Prior to developing the projects, related teams will organize a meeting with LPN Team to come up with an appropriate operational procedure for each project and set an objective to achieve more than 80% of the topics in the Green Standard Checklist. Monitoring has also been done to ensure that the procedure is implemented properly.

The actions taken on environmental responsibility and safety of construction workers and related persons in 2016 are as follows: The Outcome of the Monitoring of the Implementation of the Checklist on the Prevention and Reduction of Environmental Impacts from Project Management (7 Sections, 73 Topics) Project

Lumpini Park Petchakasem 98 (Phase 2)* Lumpini Ville Nakornin-Riverview Lumpini Mixx Teparak-Srinakarin Lumpini Ville Sukhumvit 76-Bearing Station Lumpini Township Rangsit-Klong 1 Lumpini CondoTown RomklaoSuvarnabhumi The Lumpini 24 Lumpini Place Rama 4-Ratchadapisek Lumpini Ville Ratchapruek-Bangwaek

Goal Operational Per(No. of Outcome centage Topics)

71 71 70 71 68 73

54* 70 69 65 64 63

76% 99% 99% 92% 97% 86%

73 70 70

66 65 62

90% 93% 89%

* Note: The architectural work of Lumpini Park Petchakasem 98 (Phase 2) has just begun so not all the topics in the Checklist are implemented.

In 2016, the average performance on Green Construction Process Standard is

93%

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

â&#x20AC;˘ 81

ENTERPRISE

â&#x20AC;˘ Environmental Management on Construction Site

2. Noise level

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

3. Vibration

The monitoring of the level of vibration has been done vertically, transversely and longitudinally.

It is found from the monitoring of the four aspects of environmental quality that the monitoring outcome of all projects meets the standards with the exception of the following projects: Lumpini Place Rama 4-Ratchadapisek: the average noise level over a 24-hour period (in January) and the level of noise nuisance (in January-November) exceed the standard. It is because the noise meter is installed near the entrance/ exit of the project where concrete pump trucks are parked and operated during pile work. It is an inappropriate location so the noise meter is moved somewhere else. Lumpini Ville Ratchapruek-Bangwaek: BOD (in August) exceeds the standard. The Company has asked Pasicharoen District Office to dispose the waste and improve the efficiency of the wastewater treatment system of restrooms to control the amount of waste to be treatable.

DESIGN CONCEPT

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

MARKETING MANAGEMENT

The monitoring of air quality has been done on the following parameters: Total Suspended Particulate (TSP), Particular Matter (PM-10), Sulfurdioxide (SO2), Nitrogendioxide (NO2), Carbonmonoxide (CO) and Total Hydrocarbons (THC).

CONSTRUCTION PROCESS

4. Quality of treated water

COMMUNITY MANAGEMENT

1. Air quality

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

Environmental quality monitoring (G4-EN22)

82 â&#x20AC;˘

6 G R E E N LP N

Outcome of the Monitoring of Air Quality in 2016 Outcome of the Air Quality Monitoring Total Suspended Particulate

Project

(TSP) (mg/m3)

Particular Matter

(PM-10) (mg/m3)

Sulfurdioxide

SO2 (mg/m3)

Nitrogen dioxide

Carbonmonoxide

NO2 (ppm)

CO (ppm)

Lumpini Park Petchakasem 98 (Jan-Nov 2016) Lumpini Ville Nakornin-Riverview (Jan-Sep 2016) Lumpini Mixx Teparak-Srinakarin (Jan-Oct 2016) Lumpini Ville Sukhumvit 76-Bearing Station (Jun-Nov 2016) Lumpini Township Rangsit-Klong 1 (Jan-Nov 2016) Lumpini CondoTown Romklao-Suvarnabhumi (Jan 2016) The Lumpini 24 (Jan 2016) Lumpini Place Rama 4-Ratchadapisek (Jan-Aug 2016) Lumpini Ville Ratchapruek-Bangwaek (Sep-Nov 2016)

0.075 - 0.197 0.096 - 0.264 0.090 - 0.189 0.077 - 0.152 0.052 - 0.313 0.151 0.196 0.138 - 0.286 0.095 - 0.215

0.026 - 0.109 0.038 - 0.094 0.047 - 0.087 0.015 - 0.075 0.023 - 0.112 0.065 0.086 0.064 - 0.110 0.044 - 0.103

0.003 - 0.015 0.003 - 0.007 0.003 - 0.005 0.003 - 0.006 <0.002 <0.002 <0.002 <0.002 - 0.003 <0.002

0.012 - 0.028 0.014 - 0.045 0.012 - 0.046 0.011 - 0.093 0.012 - 0.027 0.026 0.025 0.021 - 0.026 0.020 - 0.022

1.4 - 3.1 1.6 - 5.4 0.8 - 2.6 1.3 - 3.6 0.72 - 1.42 1.04 1.30 0.85 - 1.15 0.97 - 1.34

Standard Score

>0.331

>0.121

>0.301

>0.172

>30.03

Reference :

Total Hydrocarbons THC

(ppm)

0.7 - 1.1 0.7 - 1.7 0.6 - 1.2 0.4 - 0.9 3.2 - 3.81 3.46 3.25 3.17 - 3.54 3.14 - 3.32 -

1 Ambient Air Quality Standards, Notice of the National Environment Board No. 24, B.E. 2547 2 Nitrogenoxide Level, Notice of the National Environment Board No. 33, B.E. 2547 3 Ambient Air Quality Standards, Notice of the National Environment Board No. 10, B.E. 2540

Outcome of the Monitoring of Noise Level in 2016 Project

Lumpini Park Petchakasem 98 (Jan-Nov 2016) Lumpini Ville Nakornin-Riverview (Jan-Sep 2016) Lumpini Mixx Teparak-Srinakarin (Jan-Oct 2016) Lumpini Ville Sukhumvit 76-Bearing Station (Jun-Nov 2016) Lumpini Township Rangsit-Klong 1 (Jan-Nov 2016) Lumpini CondoTown RomklaoSuvarnabhumi (Jan 2016) The Lumpini 24 (Jan 2016) Lumpini Place Rama 4-Ratchadapisek (Jan-Aug 2016) Lumpini Ville Ratchapruek-Bangwaek (Sep-Nov 2016) Standard Score

Outcome of the Monitoring of Noise Level Leq 24 hrs (dB(A))

Lmax (dB(A))

59.9 - 67.7

92.5 - 107.8

63.7 - 69.8

95.2 - 113.8

59.0 - 69.4

96.0 - 108.5

63.3 - 64.7

97.5 - 112.7

54.7 - 69.9

86.5 - 103.6

60.7

93.6

69.6

108.3

60.1 - 72.7*

92.7 - 108.9

58.7 - 65.1

87.1 - 99.1

>70

> 115

Reference : Background Noise Level, Notice of the National Environment Board No. 15, B.E. 2540 Note : The average noise level over a 24-hour period (Leq 24 hrs) at Lumpini Place Rama 4-Ratchadapisek exceeds the standard for one month (in January) from the monitoring of 11 months (January-November 2016).

Outcome of the Monitoring of Vibration Level in 2016 Project

Lumpini Park Petchakasem 98 (Jan-Nov 2016) Lumpini Ville Nakornin-Riverview (Jan-Sep 2016) Lumpini Mixx Teparak-Srinakarin (Jan-Oct 2016) Lumpini Ville Sukhumvit 76-Bearing Station (Jun-Nov 2016) Lumpini Township Rangsit-Klong 1 (Jan-Nov 2016) Lumpini CondoTown RomklaoSuvarnabhumi (Jan 2016) The Lumpini 24 (Jan 2016) Lumpini Place Rama 4Ratchadapisek (Jan-Aug 2016) Lumpini Ville RatchapruekBangwaek (Sep-Nov 2016) Standard Score

Outcome of the Monitoring of Vibration Level Transverse (mm/sec)

Vertical (mm/sec)

Longitudinal (mm/sec)

0.254 - 2.67 0.508 - 2.54 0.508 - 2.94 0.254 - 2.54 0.508 - 1.90 0.381 - 4.57 0.127 - 2.03 0.381 - 3.56 0.254 - 4.57 0.762 - 2.03 0.508 - 1.14 0.508 - 1.52 0.350 - 1.15 0.25 - 1.08 0.375 - 1.03 0.25

0.575

0.325

0.625

0.825

0.725

0.508 - 1.75 0.60 - 1.83 0.50 - 1.63 0.375 - 0.90 0.20 - 0.85 0.425 - 0.95 > 5.00

Reference : Notice of the National Environment Board No. 37, B.E. 2553 Re: Vibration Measurement to Prevent Impacts on Buildings

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ENTERPRISE

Outcome of the Monitoring of Water Quality in 2016

TKN (mg/L)

Sulfide (mg/L)

FCB (MPN/ 100 mL)

7.0 - 7.7 7.2 - 7.8 7.5 - 7.9 7.2 - 7.8

16.4 - 25.9 13.9 - 26.2 14.2 - 22.8 16.2 - 20.3

283 - 388 175 - 402 282 - 412 386 - 456

16.6 - 19.3 15.8 - 18.8 17.4 - 18.6 17.8 - 18.5

0.16 - 0.37 0.18- 0.4 0.15 - 0.32 0.25 - 0.35

4.0 - 7.1 4.2 - 8.7 4.1 - 10.2 4.2 - 4.9

10.1 - 23.8 9.7 - 21.7 10.4 - 27.6 14.7 - 23.6

0.18 - 0.66 0.21 - 0.64 0.26 - 0.71 0.36 - 0.69

328 - 778 431 - 782 312 - 623 508 - 804

1-6 2 2 2-4 2 - 23*

<0.1 <0.1 <0.1 <0.1

<2 <2 <2 <2 <2 - 3

3.4 - 15 3.8 4.2 3.6 - 12.0 3.6 - 29.0

<0.06 <0.06 <0.06 <0.06 <0.06

1.8 - 3,500 <1.8 <1.8 <1.8 - 3,500 -

7.03 - 8.32 2.0 - 6.0 156 - 308 7.46 2.0 202 8.37 6.0 224 7.19 - 7.98 2.0 - 11.3 248 - 318 6.78 - 7.9 4.5 - 25 140 - 222

Standard Score1

5.0-9.0

> 30

> 500

> 20

> 0.5

> 20

> 35

> 1.0

Score2

5.0-9.0

> 40

> 500

> 30

> 0.5

> 20

> 35

> 1.0

Standard

Standard Score3

> 4,000

Reference : 1 Standard of the Control of Wastewater Disposal from Buildings (Type A: More Than 500 Rooms), Notice of the Ministry of Natural Resources and Environment B.E. 2548 2 Standard of the Control of Wastewater Disposal from Buildings (Type B: More Than 100 Rooms but Not Exceed 500 Rooms), Notice of the Ministry of Natural Resources and Environment B.E.2548 3 Surface Water Quality Standards categorize the water quality by use (the third category is the water resource that water used in certain activities is disposed into and can be used for: (1) Consumption: it has to be sterilized and go through water treatment process. (2) Agriculture: Notice of the National Environment Board No. 8, B.E. 2537 Note : The BOD score of Lumpini Ville Ratchapruek-Bangwaek exceeds the standard for one month (in August) from the monitoring of five months (July-November).

Waste Management (G4-EN 23) Waste in construction site can be divided into two categories.

1. Construction waste

2. Household waste of construction workers

Most of the waste is reusable such as wood scraps, cement, gypsum and metal scraps. Other valuable waste such as scrap iron will be sold.

There are garbage corners in all construction sites. The waste bins will be arranged for each type of waste and categorized by color to promote waste segregation.

DESIGN CONCEPT

G&O (mg/L)

MARKETING MANAGEMENT

SS (mg/L)

IN PROCESS - 6 GREEN LPN

BOD (mg/L)

CONSTRUCTION PROCESS

TDS (mg/L)

COMMUNITY MANAGEMENT

Project

TSS (mg/L)

FINANCIAL MANAGEMENT

Project pH -

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Management of Waste in Construction Site

Type of Waste and Management of Waste

Construction Waste Wood scraps, metal scraps, aluminum scraps

Cement, gypsum

Sell

Landfill

Household Waste from Construction Workers Collected and sent to related government agency for disposal

The amount of waste is surveyed in seven projects, namely, Lumpini Place Rama 4-Ratchadapisek, Lumpini Ville NakorninRiverview, Lumpini Township Rangsit-Klong 1, Lumpini Mixx Teparak-Srinakarin, Lumpini Ville Sukhumvit 76-Bearing Station, Lumpini Ville Ratchapruek-Bangwaek and Lumpini Park Petchakasem 98 (Phase 2). It is found that most of the waste generated in all projects is construction waste, except for Lumpini Park Petchakasem 98 (Phase 2). The majority of waste generated in Lumpini Park Petchakasem 98 (Phase 2) is from construction workers since the construction has just started and pile work and foundation work are being done. In each project, construction waste is used to build new equipment for use at the site and accommodation of construction workers such as shoe racks, waste bins, barrier gate at parking lot and ashtrays.

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Safety and occupational health (G4-DMA) 1. First aid training and training on medicine use

LPN TEAM 30 from Junior Red Cross Office, Thai Red Cross Society L.P.N. Academy Construction workers 71 from Health Service Center 41, Klongtoey Lumpini Township Rangsit-Klong 1 Construction workers 290 from Health Service Center 41, Klongtoey Lumpini Place Rama 4-Ratchadapisek Lumpini Ville Nakornin-Riverview Lumpini Ville Sukhumvit 76-Bearing Station Construction workers 100 from Health Service Center 41, Klongtoey Lumpini Ville Ratchapruek-Bangwaek

DESIGN CONCEPT

Venue

trainings

on safety and occupational health are organized.

2. Exercise session

Is the special activity regularly organized for construction workers during the Morning Talk. It is to reduce stress and help workers relax before work. The session lasts for half an hour.

3. Promotion materials on safety and occupational health

Are produced to promote safety of construction workers. Telephone numbers of rescue units are also put up on various spots in the construction site and accommodation of construction workers. In case of emergency, they will be able to call for help immediately.

COMMUNITY MANAGEMENT

CONSTRUCTION PROCESS

Trainer

MARKETING MANAGEMENT

1 2 3

Participant

IN PROCESS - 6 GREEN LPN

Quarter

FINANCIAL MANAGEMENT

Are organized for construction workers and staff working at the construction site so that they are able to accurately and safely use medicines as well as be able to perform basic life support in case of accidents in the construction site. Six trainings have already been organized as shown in Table.

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Promotion of quality of life of construction workers (G4-DMA) 1. The accommodation of construction workers are inspected

to make sure that the living quarter is safe and in good environment. Improvements will be made if it is found that the accommodation is not safe or unfit to live in so as to enhance the living conditions of construction workers. It is found from the inspectations of accommodation of construction workers in nine projects (12 inspections) that all the accommodations are in great conditions. The inspections are done in the following nine projects. 1. Lumpini ParkBeach Cha-am 2. Lumpini Ville Nakornin-Riverview 3. The Lumpini 24 4. Lumpini Township Rangsit-Klong 1 (inspected twice) 5. Lumpini Place Rama 4-Ratchadapisek 6. Lumpini Park Petchakasem 98 7. Lumpini Mixx Teparak-Srinakarin 8. Lumpini Ville Sukhumvit 76-Bearing Station 9. Lumpini Ville Ratchapruek-Bangwaek (inspected twice) 2. The registration of construction workers is prepared.

5. Annual medical check-up is conducted for construction workers

There is a record of construction workers living in each unit in order to ensure decent living conditions. Should there be a case of emergency, the assistance can be provided in a timely manner.

Of Lumpini Township Rangsit-Klong 1 and Lumpini Mixx Teparak-Srinakarin by doctors and nurses from Karunvej Hospital. No serious epidemic disease is detected. But it is found that the majority of migrant workers have stomach ulcer and high blood pressure.

3. Random drug testing is conducted among construction workers

In seven projects, namely, Lumpini Place Rama 4Ratchadapisek, Lumpini Ville Nakornin-Riverview, Lumpini Township Rangsit-Klong 1, Lumpini Mixx Teparak-Srinakarin, The Lumpini 24, Lumpini Ville Sukhumvit 76-Bearing Station and Lumpini Ville Ratchapruek-Bangwaek. Drug abuse is not found. 4. Offer a vaccination service for construction workers

Institute for Urban Disease Control, Ministry of Public Health and Epidemic Control Department, Health Office, Bangkok Metropolitan Administration offer a vaccination service for construction workers to provide protection against diphtheria, tetanus, measles and mumps. The total of 609 workers at Lumpini Park Petchakasem 98 and Lumpini Ville Ratchapruek-Bangwaek is vaccinated. Migrant workers are also vaccinated against elephantiasis.

6. Free lunch and haircut are provided for construction workers

To build up their spirit. The Environmental and Social Management Department in collaboration with Coordination and Activities Department and LPN Team organize the activity for construction workers in six projects. Details are shown in Table below. Quater

Project

No. of Participants

1 2

Lumpini Park Petchakasem 98 Lumpini Mixx Teparak-Srinakarin Lumpini Ville Nakornin-Riverview Lumpini Place Rama 4-Ratchadapisek Lumpini Ville Ratchapruek-Bangwaek Lumpini Ville Sukhumvit 76-Bearing Station

500 1,000 800 400 555 785

3 4

ENTERPRISE

â&#x20AC;¢ 87

projects.

609 The total of

construction workers are vaccinated against diphtheria, tetanus, measles and mumps.

A medical check-up is provided to construction workers in

projects.

4,040 The total of

construction workers are provided with free lunch and free haircut.

DESIGN CONCEPT MARKETING MANAGEMENT

Random drug testing is conducted among construction workers in

IN PROCESS - 6 GREEN LPN

projects.

CONSTRUCTION PROCESS

FINANCIAL MANAGEMENT

Inspections of accommodation of construction workers for improvement are done 12 times in

COMMUNITY MANAGEMENT

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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â&#x20AC;˘ Neighboring communities High-ranking executives of the Company will visit neighboring communities and related governmental agencies to build understanding and good relationship with them, particularly the residents of the houses or buildings adjacent to the project and are directly affected in terms of noise, dust and traffic. It will be ensured that the construction will be done in accordance with the project design and the given timeframe.

Care for neighboring houses (G4-EN22) 1. The environmental standard of the construction site and neighboring houses is established to be suitable with the project environment and area. 2. The neighboring residents will be informed three days in advance when there is to be noisy activities from the construction site such as pile work. 3. The hours that the work with loud noise can be operated are limited between 8.00-19.00h. Noisy activities will also be avoided on weekends so that neighboring communities will not be disturbed.

4. Officers of the Company will visit the neighbors to build a good relationship with them and listen to their problems and concerns over the construction impacts. 5. A suggestion box is put up in front of the project to provide an opportunity for the neighboring residents to make complaints or suggestions.

Management of relationship with neighboring communities Apart from minimizing the impacts from construction, the Company would build relationship with neighboring communities by coordinating with the leaders of the communities and surveying the common area of the communities as well as other agencies surrounding the project site before the construction starts. Special attention will be given to the area adjacent to the project site or sensitive area. Information on the concerns over environmental problems, possible impacts from construction and social and environmental activities that the communities would like the Company to support will be collected. The Company will organize environmental and social activities in the communities to build good relationship with them and minimize the number of complaints. In 2016, the Company develops the area around Lumpini Ville Sukhumvit 113 which is being constructed. The details are as follows: 1. The infirmary of the community is improved.

Before

3. The library is improved.

After

Before

After

Before

After

and the medicine cabinet is installed.

2. The toilets are renovated.

Before

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

â&#x20AC;˘ 89

â&#x20AC;˘ The guideline for the care for neighboring houses to minimize the impacts

1. Survey the environment around the project

Before pile work

Start

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

Before pile work / Weekly

3. Establish pollution prevention measures

Before pile work

Put up canvas for dust and noise prevention,

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

4. Monitor the environment and follow up

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

Build relationship with neighboring residents

Establish pollution prevention measures

Monitor the surrounding environment and communities

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

No problems found

6. Compile the information

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

7. Assess the performance

Compile information

Monthly

IN PROCESS - 6 GREEN LPN

Survey the environment Compile preliminary information

CONSTRUCTION PROCESS

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

Assess the performance

End

Implement the measures

Problems found

Take action to solve the problem

COMMUNITY MANAGEMENT

Contractor

FINANCIAL MANAGEMENT

Construction Department

DESIGN CONCEPT

Timeframe

MARKETING MANAGEMENT

Operational Process

ENTERPRISE

from construction (G4-EN34)

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HIGHLIGHT Improving the Standard of Construction Workersâ&#x20AC;&#x2122; Accommodation After the incident of fire in the accommodation of construction workers at Lumpini Township Rangsit-Klong 1 in 2015, the Company has tightened fire prevention measures in projects under construction as well as investigated the cause of fire for long-term prevention. It is found that the fire spread quickly because the accommodation was made out of wood. The construction materials of accommodation of construction workers have thus been changed from wood to fire-resistant materials. Metal sheets are used for roofing in place of galvanized iron sheets because of its fire-resistant quality and many other qualities such as

1Not leaking as there are no seams 2Being strong and durable 3Being fire-resistant 4Being reusable

A signboard indicating the living regulations in the accommodation is put up in three languages.

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Moreover, the occupational health standards and the environment around the accommodation of construction workers are improved, for example,

Male and female restrooms are separated. Languages other than Thai are also used in the construction site for better understanding of construction workers.

Restrooms for male and female workers are separated. Common kitchen area is built. Cooking is prohibited in the living area. Maids are provided to clean the common area everyday. Fire department connections are tested at least twice a month. Workers are trained on how to use a fire hose properly. Fire extinguishers are regularly inspected at least once a month. A signboard indicating the living regulations in the accommodation is put up in three languages. Outdoor spraying of mosquito and bug repellent is done at least twice a month. Garbage stored near the accommodation is cleared out every weekend to control mosquitoes and get rid of bugs and mice, all of which are carriers of many diseases. The new housing standards are piloted at Lumpini Ville Ratchapruek-Bangwaek. The random inspection of accommodation of construction workers has also been done on a regular basis to promote health and safety and prevent accidents.

Fire extinguishers are installed in accommodation of construction workers and are inspected at least once a month.

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6 G R E E N LP N

HIGHLIGHT Building Information Modeling (BIM) From 2013, the Company has been applying Building Information Modeling system or BIM to the design and project development process in order to minimize errors in miscalculation of costs resulting from data incompletion. BIM is the technology that processes three-dimensional building information and links all information together such as building form, shape, size and height and construction materials used. It can also show numerical information as well as calculate building space, amount of construction materials needed and construction costs. The Company aims to use BIM to support all project management processes. The main objective is to accurately estimate the construction costs before setting the selling price to reduce operational risks. In terms of environmental and social responsibility, BIM can be used to calculate cost efficiency and minimize the use of consumable materials in design which will directly help reduce wasteful use of natural resources and control costs. For BIM technology to be used efficiently, the operational process and systems must be improved to link up all the information both internally and with trade partners or LPN Team. The operational strategy during the first two years has thus been focused on the provision of trainings to stakeholders through L.P.N. Academy and the development of standard manual for BIM operation so that BIM can be used efficiently in project management by foremen, designers and contractors. At present, BIM technology is fully implemented in project management. All the projects developed in 2016 are designed and planned, the construction materials are selected and the construction is managed on BIM. The system has also been developed for use in facility management so that the system and building maintenance can be done more conveniently and quickly.

LPN B.I.M. Road Map In 2013-2016

INTEGRATION

PROCESS PEOPLE & TECHNOLOGY

2013

2014

2015

2016

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

All projects developed in 2016 are designed and planned, the construction materials are selected and the construction is managed on BIM so the work can be done easily and quickly.

â&#x20AC;˘ 93

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GREEN COMMUNITY MANAGEMENT The Care for and Management of the Quality of Life of the Residents after the Handover of the Projects. GREEN COMMUNITY MANAGEMENT

The responsibility of real estate developers should not be ended when the “residence” is handed over to the customers. The building and environment should also be managed and maintained afterwards. However, the Company has realized that there are more to project development and thus developed building management guideline and community management strategy to promote gracious culture and harmony of living together in the society. During the past 27 years, the Company has created and handed over a “home” to members of more than 120,000 “Lumpini” families and taken care of the environment and quality of life of the residents and neighboring communities via “Vibrant Community” strategy. The Company does not only ensure the safety and standard of the equipment but also the safety of the community, the happiness of the residents as well as environmental awareness of the residents on a regular basis in accordance with the F-B-L-E-S+P guideline. It is developed from extensive community management experiences with the aim to deliver a great quality of life, environment and society to the residents. The details are as follows:

Facility Management

Budgeting Management

It is to maintain the efficiency of common properties whether it be architectural structure, convenient facilities and various systems in the building e.g. elevator, electricity generator, electrical system and sanitation system to ensure that all components of the building function normally and are safe to operate. It involves the management of budget for condominium juristic person to be in line with the policy approved by the Annual General Meeting of Joint Owners as well as the management of the stability of the fund for the financial stability of the community. A financial report that is easy to understand, transparent and auditable will also be prepared.

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

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

Internal staff i.e. executives, Community Managers and the management team, all of whom play an important role in promoting the sustainability of the community. The Company has developed their capacity through various training programs as well as promoted service culture for the success of the “Vibrant Community” strategy. Residents i.e. the residents in the project inclusive of the joint owners and renters. Different activities are organized by the management to promote the concept of co-existence in the community, reduce environmental impacts, promote a good society and create vibrant community. Juristic Person Committee i.e. the representatives of the stakeholders in the project. They drive forward the process of implementing the concept of vibrant community in the project by building the knowledge and understanding of the Chairman and committee members.

ENTERPRISE DESIGN CONCEPT

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

FINANCIAL MANAGEMENT

People Management

MARKETING MANAGEMENT

Environment Management

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

IN PROCESS - 6 GREEN LPN

Life Quality Management

CONSTRUCTION PROCESS

• 95

COMMUNITY MANAGEMENT

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

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GREEN COMMUNITY MANAGEMENT

OPERATION â&#x20AC;˘ Management of Quality of Life The Development of a Living Library in Community

In 2016, the Company aims to improve the library in the project to be living library that is suitable for all age groups to promote reading, learning and quality of life of the residents. The libraries in six projects, namely, Lumpini Place Ramindra-Laksi, Lumpini CondoTown Ramindra-Laksi, Lumpini Ville Bangkhae, Lumpini CondoTown Bangkhae, Lumpini Ville Onnut-Ladkrabang and Lumpini Ville Ladprao-Chokchai 4 are already renovated. In addition, the Company has conducted a survey to study the behavior of library users and their needs through the use of a questionnaire. The information compiled will be analyzed in order to improve and develop the library to suit the needs of the users. The survey is conducted in three projects, namely, Lumpini Place Ratchayothin, Lumpini Park Riverside-Rama 3 and Lumpini Park Pinklao. It is found that 75.4% of the residents have used the Living Library. The most popular activities are reading, relaxing, surfing the internet and meeting with friends. The satisfaction survey is conducted in four areas i.e. reading, information technology, atmosphere and staff. It is found that the satisfaction score of all areas are high of around 80-95%.

Most library users suggest that there should be more computers and power strips, wi-fi signal should be improved, the space in the library should be organized and the book borrowing and returning system should be improved.

The resident have used the Living Library

75.4%

The satisfaction score of all are high of around

80%

• 97

Green Space Management

COMMUNITY MANAGEMENT

CONSTRUCTION PROCESS

“Plant & Share” activity has been organized annually to encourage the residents to participate in maintaining and increasing the green space in Lumpini community. The target is to organize the activity in 115 communities. In 2016, the activity is organized in 111 communities (96.5% of the target) and more than 4,200 trees are planted. The activity to increase green space will differ depending on availability of space in each community, for example, planting trees in a blank space, growing a vertical garden and growing plants in a wide range of containers. The campaign to raise awareness about the benefits of eating vegetables is organized in collaboration with Thai Health Promotion Foundation. An exhibition to promote the benefits of eating vegetables, vegetable cooking workshop, backyard vegetable garden workshop and green market are organized. The pilot campaign is organized in four projects, namely, Lumpini Place Rama 9-Ratchada (Building A,B,C and D), Lumpini Ville Sukhumvit 109, Lumpini Tower and Lumpini Park Riverside-Rama 3. “Plant & Share” activity In 2016, the activity is organized in 111 communities

The activity is organized in

111

communities

More than

4,200 trees are planted

MARKETING MANAGEMENT

IN PROCESS - 6 GREEN LPN

• Environment Management

DESIGN CONCEPT

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

96.5% of the target

(115 communities)

98 •

6 G R E E N LP N

CLEAN Waste Management in Lumpini Community (G4-EN23) The Company stresses the significance of efficient waste management system. It is the crucial policy to promote the great environment appropriate for living and minimize environmental impacts. The information collected on the amount of each type of waste generated in the community shows that the actual amount of waste generated in the community is less than that estimated by the government. The waste can be categorized into three types i.e. general waste, recyclable waste and hazardous waste. The management of each type of waste is as follows:

5% Recyclable waste

1. General waste and kitchen waste account for 94%

of all the waste generated. There are waste containers on every floor which are cleared out twice a day at 10.00h and 16.00h by Community Service Officers. The waste will be segregated before putting into the garbage room. The District Office will collect the waste for disposal.

1% Hazardous waste

Proportion of Waste in Lumpini Community

94% General waste

2. Hazardous waste accounts for 1%

of all the waste generated. Containers are specifically set up for disposal of hazardous waste. The hazardous waste will be collected by the District Office once or twice a month and delivered to authorized agency for proper disposal. 3. Recyclable waste accounts for 5%

of all the waste generated. There are waste containers categorized for each type of waste i.e. paper, transparent plastic bottle, opaque plastic bottle, glass bottle, beverage can and beverage carton. The waste will be segregated and sold. The money earned will be used for community development purpose.

Furthermore, a variety of activities to promote waste segregation and participation of community members is organized such as “Bottle for Egg” and “Spotless Lumpini – Let’s Recycle” activities. The activities are organized in 111 communities (accounting for 96.5% of the target).

• 99

accounting for

96.5% LEAN Water Management in Community (G4-EN8, G4-EN10, G4-EN22) In 2016, the average water use in Lumpini community is 496,936 cubic meter per month. The water is distributed from Metropolitan Waterworks Authority (MWA) and Provincial Waterworks Authority (PWA). The details of the amount of water use from each source are as follows

The average used water or wastewater released is 397,570 cubic meter per month or accounts for 80% of all water in the community. The remaining 20% will be reserved for use. All the wastewater will be treated before being released into natural water resources.

1. Metropolitan Waterworks Authority

Wastewater treatment is done by the wastewater treatment system of Lumpini community and central wastewater treatment system of Bangkok Metropolitan Administration. Around 11% of the treated wastewater will be reused for watering plants, cleaning streets and cleaning water tanks. The other 89% of the treated wastewater will be released into natural water resources.

The total of 106 communities use the water distributed from MWA and the average water use is 466,367 cubic meter per month. 2. Provincial Waterworks Authority

The total of seven communities use the water distributed from PWA and the average water use is 30,569 cubic meter per month.

DESIGN CONCEPT MARKETING MANAGEMENT COMMUNITY MANAGEMENT

of the target

CONSTRUCTION PROCESS

“Bottle for Egg” and “Spotless Lumpini – Let’s Recycle” activities. The activities are organized in 111 communities

IN PROCESS - 6 GREEN LPN

FINANCIAL MANAGEMENT

ENTERPRISE

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

1 0 0 • 6 G R E E N LP N

Water Management in Lumpini Community Water Management The treated wastewater that passes the standard criteria is reused for watering plants, cleaning streets and cleaning wastewater tank.

Sources of Water : MWA/PWA Wastewater released into the treatment system

Treated wastewater is reused

11%

Treated wastewater is reused

11%

Treated wastewater is released into natural resources

89%

Energy management (G4-EN4, G4-EN6) The electricity used in condominium units accounts for 70% of all electricity used in the community. The other 30% is the electricity used in the common area and system works as follows: Air conditioners and other appliances Swimming pool and fitness equipment Main electricity system Lighting system

10% 10%

20% 20%

15%

Elevator system

Water pump system

20% Wastewater treatment system

Proportion of Electricity Use in Lumpini Community.

In 2016, the electricity used in system works and common area is 5,132,837 units per month (5,132 MW/per month), costing 18.99 million THB per month or 227.9 million THB per year. The energy conservation measures for the system works and common area are as follows 1) Use LED light bulbs • The Company has been implementing a campaign for communities to use LED light bulbs in place of fluorescent ones since 2014. At present, the total of 88 projects has used LED light bulbs and is able to save 1,408,309.32 THB per month (information from 2014-2016).

2) Manage engineering system • A number of machines in the common area are turned off for one hour every last Saturday of the month. It helps reduce 37,686 units of electricity and save 139,438 THB (information from January-November 2016). • Variable speed drive (VSD) is installed in air conditioners at Lumpini Tower. It helps conserve energy and enhance the durability of the air conditioning system. The average of 40,062 units of electricity is conserved per month, saving 145,387 THB per month (information from January-November 2016). • The pumps of the wastewater treatment system are no longer used. Instead, wastewater is directed to the central treatment system of the Bangkok Metropolitan Administration. It helps save electricity bill and minimize the risk of the treated wastewater not meeting the quality standards. • A study on the efficiency of energy use in condominiums is conducted and piloted at Lumpini Ville Lasalle-Bearing. A meter is installed with a software that can store and process the energy charge and show real-time electricity units used in the condominium. The result of the study reveals that the peak hours of electricity usage are from 22.00-24.00h and the off-peak hours are from 09.0017.30h. The findings will be used to analyze the pattern of the electricity use in condominiums in order to prepare an energy conservation plan and strategy.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED • 1 01

communities

competition is organized for the residents to reduce electricity use in their condominium unit. The competition will be judged on how much electricity charges each condominium unit can save.

are produced and communicated to the residents through various channels e.g. signboard and online media. It is to encourage the joint owners, the residents and staff to take part in energy saving activities.

The total of

communities

CONSTRUCTION PROCESS

participate in the activity

and can save 23,322.59 THB.

The winner of the competition lives at Lumpini Ville Onnut 46. The electricity charges of the winner have dropped

COMMUNITY MANAGEMENT

74.79% Electricity Saving

Use LED light blubs in place of fluorescent

Variable speed drive (VSD) is installed in air conditioners at Lumpini Tower.

Communities

and can save

THB/Month

1,408,309.32 THB/Month

DESIGN CONCEPT

and is participated by

• Campaign materials to promote energy conservation

MARKETING MANAGEMENT

is organized for one hour during Earth Hour (20.30-21.30h)

• “Lumpini Ruam Jai – Conserve Energy for the Earth #2”

IN PROCESS - 6 GREEN LPN

• Praying and meditation session

FINANCIAL MANAGEMENT

ENTERPRISE

3) Organize activities and produce campaign materials for energy conservation

145,387

1 02 • 6 G R E E N LP N

HIGHLIGHT From “Vibrant Community” to “Vibrant Community For All” The Thai society is becoming an ageing society as a result of continuous increase in elderly population. It affects the society in various aspects including employment, healthcare and provision of accommodation. The statistics of elderly population growth coincides with the data of Lumpini population collected by the Company for more than 20 years. It shows that child and elderly population have continuously increased annually. Before, the dominant population was the working age one. The “Vibrant Community” concept has thus been developed into “Vibrant Community For All” concept in order for the Company to be able to deliver a great quality of life and product and service value to the residents of all age groups. We are becoming an extensive family where children, teenagers and elderly people live happily under the same roof. More than 130,000 families in 143 projects in “Lumpini” community will experience the real pleasure of living. The Company is planning to develop both product and service at the same time. The aim is to create a “Vibrant Community For All” to be a model for other business operators in the Thai society. Population Proportion of All Age Groups in Lumpini Community

85%

More than

130,000

80 70

families

60 50 40 30

10%

10 0 children 1-10 years

teenagers 11-20 years

working age 21-59 years

elderly age 60 years

143

projects in “Lumpini”

• Product Development In 2016, the Company plans to develop the universal design to match the needs of all age groups by studying and analyzing the use of space in the common area and condominium unit. It has already been implemented in five projects, all of which are model communities which have concrete standard in managing a “Vibrant Community”, as follows 1. Lumpini Ville Lasalle-Bearing 2. Lumpini Park Riverside-Rama 3 3. Lumpini Place Rama 4-Kluaynamthai 4. Lumpini Place Narathiwas-Chaopraya 5. Lumpini Suite Rama 8

A Living Library for the residents of all age groups.

A stainless steel handrail and double toilet seat for children and adults are installed in common restroom.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED • 1 03

The findings from the study are used to develop the products both in old projects where residents have already moved in and new projects that are being developed. As for the new projects, the universal design concept in common area and condominium unit has been included in the Green Design Concept Standard so that all new projects of the Company are suitable for all age groups to live in. The emphasis is put on children and the elderly since special care is needed. As for projects that have already been developed, the universal design concept has been used to improve the existing common area and environment to accommodate the needs of all age groups. The improvement starts at Lumpini Ville Lasalle-Bearing. The model of improvement will be applied to other projects of the Company. The budget for improvement of the premises is 245,190 THB.

Common area for children where bumpers are installed and children’s tables and chairs are provided.

Anti slip tape is applied on the floor near the elevator entrance for safety reason.

Before, there was no handrail at the swimming pool.

The swimming pool after handrails are installed.

Ramps for wheelchairs are available.

The common area improvement budget at Lumpini Ville Lasalle-Bearing is

245,190 THB.

Outdoor exercise equipment for all age groups.

Universal design is the concept that is designed to match the livelihood of all age groups. LPN has applied this concept in the development of our “model community”.

1 0 4 • 6 G R E E N LP N

HIGHLIGHT • Community Management Development Apart from developing products that support the concept of “Vibrant Community For All”, the Company has also stresses the significance of after-sale service which is a part of F-B-L-E-S+P community management strategy. The Company has collaborated with both government and private organizations such as Bangkok Metropolitan Administration, Health Department of Bangkok Metropolitan Administration, Disease Control Department of Ministry of Public Health, Thai Health Promotion Foundation and Lumpini members to support and upgrade the quality of life of city dwellers. The activities organized are as follows: 1. Promotion of Community’s Well-being: with Bangkok Metropolitan Administration and Thai Health Promotion Foundation

The project is the collaboration among three organizations, namely, Bangkok Metropolitan Administration, Thai Health Promotion Foundation and the Company, to develop the well-being of Lumpini community members under the concept of “Let’s Create Happiness in Vibrant Community For All.” It is done through managing the knowledge on community management and building the capacity of Community Managers to come up with a model of the management of the quality of life of condominium residents and how to promote their physical, mental, intelligent and social well-being. In 2016, a range of activities has been organization. The workshop on “The Learning from the Experiences of Model Community Management” is organized to learn from community management experiences of the Company and use the lesson learned as a guideline for the organization of activities to promote well-being of condominium dwellers. Other activities are organized in Lumpini communities to communicate and promote the knowledge on well-being to the community members such as eating 400 grams of vegetables activity, medical check-up and exercise sessions. Moreover, the capacity of Community Managers are developed so that they would be able to drive forward and design activities that will promote well-being of the residents as well as be a facilitator of activities that are appropriate for the lifestyle and interest of all community members. The condominium committee and residents also take part in designing the activities. The pilot activities are organized in five projects i.e. Lumpini Place Rama 9-Ratchada, Lumpini Park Pinklao, Lumpini Megacity Bangna, Lumpini CondoTown Ramindra-Laksi and Lumpini CondoTown BodindechaRamkamhaeng.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED • 1 0 5

2. Promotion of Health: with Department of Disease Control and The Office of Disease Prevention and Control 13

Health and wellness of community members is another goal of the management of quality of life of residents in “Vibrant Community”. The Company, Condominium Juristic Persons, Department of Disease Control and The Office of Disease Prevention and Control 13 have worked together to ensure health and wellness of community members. Exhibitions are set up to provide health knowledge to the residents. Advice on various health issues such as diabetes, heart disease and contagious disease prevention is provided. A team of health officers provides medical check-up to the residents. The activities are held for the first time at Lumpini CondoTown Ramindra-Ladplakao and there is a plan to organize the activities in many other communities. 3. 10th Seminar of Chairman of Condominium Juristic Person Committee

The Company has invited the Chairman of Condominium Juristic Person Committee of more than 120 communities to attend the 10th Seminar of Chairman of Condominium Juristic Person Committee. The main issue for discussion in the seminar is “Vibrant Community For All”. It is to provide a platform for Chairman of Condominium Juristic Person Committee and other participants to share ideas and exchange experiences in order to prepare for community development and organization of activities that are suitable for different age groups. The focus is on three aspects of “Vibrant Community” management strategy as follows: - Facility Management - Life Quality Management - Security Management After the seminar, the Chairman of Condominium Juristic Person Committee of each community has worked with Condominium Juristic Person Committee to adopt the ideas and knowledge learned from the brainstorming session to develop each and every Lumpini community to be vibrant community so that the residents of all age groups can live together with happiness in “care and share” culture. 4. Establishment of Kids Club and Senior Club

It is found from the survey that the proportion of child and elderly population has been increasing annually. The Company has thus support the idea of establishing Kids Club and Senior Club in order to create age-appropriate and enjoyable activities for the clubs’ members. The activities of the Kids Club will focus on the development of learning of children and parents, relationship building activities and emotional development. As for activities of the Senior Club, the emphasis will be put on health activities, activities to build physical strength and recreational activities. At present, both clubs are being set up. However, 11 pilot activities have already been organized in 2016.

1 0 6 â&#x20AC;¢ 6 G R E E N LP N

OUT PROCESS

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED • 1 07

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

us and then surrounding communities (Corporate ESR to Community ESR)”. The concept is the origin of community management policy which aims to create “Vibrant Community For All” in all projects developed by the Company and to be a leading example for other real estate business operators. The environmental and social activities are core activities implemented annually by the Company and Lumpini Volunteer Clubs.

TOGETHERNESS CARE AND SHARE

The Amount of Blood Donated in 2015 and 2016

In 2016, the Company aims to provide the National Blood Center, Thai Red Cross Society with one million cc. of blood under “1,000,000 cc. Lumpini Sharing for Friends” campaign. All through the year, blood donation activities are promoted to invite the general public to donate blood at blood donation mobile units of the Company. This year, the total of 2,929 blood units is received or equivalent to 1,025,150 cc., exceeding the target by 2.5%. Blood donation mobile units are available in seven Lumpini projects as follows:

Volume of Blood Donated (Units)

- Lumpini Tower - Lumpini Sukhumvit 77 - Lumpini CondoTown Ramindra-Nawamin - Lumpini Ramindra-Laksi - Lumpini CondoTown Bodindecha-Ramkamhaeng - P.S.T. City Home - Lumpini Megacity Bangna (new mobile unit launched in July 2016)

1,200 800

2016

758

600 400

249 289

200

260

342

290 348

318 348

282 299

194 0

0 LUM-T

SK77

LT-RN

LT-BR

PST

LM-BN

projects

In 2016, the donation of

The amount of blood received is

units of blood is received.

higher than the target.

2,929 2.5 %

OUT PROCESS

1,000

2015 1,092

Environmental and Social Activities of Lumpini Volunteer Clubs

1. Blood Donation Activities

Environmental and Social Activities of the Company

1 0 8 • 6 G R E E N LP N

2. “Summer of Kindness through Blood Donation” Activity

The activity has been organized to prepare for a surge in the demand for blood during Songkran holidays as a result of increasing accidents. The campaign to raise awareness on the importance of blood donation and blood reserve is run. The Company has been supporting the project for many years. Ms. Surasawadi Suewaja, Managing Director of Lumpini Property Service and Care Co., Ltd. (LPC) is the representative from the Company to donate a fund to the National Blood Service Center, Thai Red Cross Society to sponsor the production of t-shirts to be given out as souvenir to those who donate blood between 11-17 April 2016 at the National Blood Service Center, Henri Dunant Road. The total amount of blood received is 13,156 units.

The total amount of blood received from “Summer of Kindness through Blood Donation” Activity is

13,156

units

3. Support for Social Activities (G4-EN31)

The Company has been supporting the organization of social activities of communities and government agencies in order to give back to the society. In 2016, the Company supports the social activities of 18 communities and government agencies as follows: 1. Kittiwong Temple, Mae Hong Sorn Province 2. National Blood Service Center, Thai Red Cross Society 3. Chaichimpleewittayakom School 4. Police Friends for Friends Club 5. Foundation for Slum Child Care 6. Foundation for the Blind in Thailand 7. Ban Nongbuatong School, Supanburi Province 8. Merit making activity of the Faculty of Science, Thammasat University 9. Nongmaidaeng Sub-district Office, Chonburi Province 10. Saimai District Office 11. Tesabarn Dan Samrong Kindergarten 12. Chulalongkorn Watergate Police Station 13. Ratchathevi District Office 14. The National Council on Social Welfare of Thailand 15. Pasicharoen District Office 16. Wat Ampawa School 17. Lumpini Youth Center 18. Wat Daokanong School

Volunteers from LPN help organize the school library at Ban Nongsamrong School.

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED • 1 0 9

4. Relationship Building with External Organizations (G4-DMA, G4-EN31)

Relationship building is done through the development of communities and government agencies near the projects developed by the Company and the support for environmental conservation activities. Development of communities and government agencies

The Company supports the development of communities and government agencies as well as temples and schools near the projects developed by the Company. The areas developed are public area and service area in government offices. It is to improve the environment and landscape of the area as well as build good relationship with communities. The details of the activities are shown in Table

• Saimai District Office Development

Development of Communities and Government Agencies

Chantornsook Temple Saimai District Office Laksi District Office Chulalongkorn Watergate Police Station

The area is renovated. The area is renovated. The area is renovated. 1. Air conditioners are donated to be installed in the service area. 2. The other area in the Police Station is renovated. Dansamrong Kindergarten The area is renovated. Pasicharoen District Office The area is renovated.

Before renovated

After renovated

• Laksi District Office Development

Before renovated

After renovated

Support for environmental conservation

Apart from ensuring environmental conservation internally, the Company also promotes environmental conservation outside the organization by sponsoring waste segregation equipment and promotional materials as well as supporting the organization of environmental activities. The details of the activities are shown in Table.

Support for Environmental Conservation Activity

Waste segregation activity Provision of recycle waste containers

Supported Agency

Huamark School

(1 time)

Prakhanong District Office Klongtoei District Ofice Meenburi District Office Faculty of Veterinary Science, Chulalongkorn University

(3 sets) (5 sets) (3 sets) (2 sets)

Environmental and Social Activities of the Company

Status

OUT PROCESS

Community/Government Agency

Environmental and Social Activities of Lumpini Volunteer Clubs

Quarter

1 1 0 â&#x20AC;˘ 6 G R E E N LP N

Merit making activity (G4-DMA)

The activity was organized to raise fund for the construction of Somdej Phra Puttajarn Meditation Building at Chantornsook Temple, Patumthani Province (near Lumpini Township Rangsit-Klong 1) on 13 November 2016. The total of 279,999 THB was donated to the temple. The total of

279,999 THB was donated to the temple

Merit making activity at Chantornsook Temple

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

1. Donation activity in Lumpini community

The activity is organized to encourage the residents to donate goods and money for various foundations and non-profit organizations such as Yuwapat Foundation (Pan Kan shop), Wat Suankaew, Foundation for the Blind in Thailand, Baan Nokkamin Foundation and Mirror Foundation. The total of 117 communities have already organized the activity.

The total of

117

communities have already organized the activity

• “Save Our Community” activity: organized by the residents of Lumpini Place Narathiwas-Chaopraya. • Cleaning Nimmarnnoradee Temple activity: organized by the residents of Lumpini Ville Bangkhae. • Donation of goods and provision of free lunch to Wat Bangplerng Orphanage: organized by the residents of Lumpini Ville Sukhumvit 109-Bearing. • “Sharing Kindness with Blind Children” activity: organized at Thammamik Wittaya School by the residents of Lumpini Place Pinklao. • “Free Lunch for Kids” activity: organized at Baan Nokkamin Foundation by the residents of Lumpini Place Srinakarin-Huamark. • Donation of goods and provision of lunch activity: organized at Banglamung Home for Boys by the residents of Lumpini ParkBeach Jomtien. • Road lines painting activity: organized by the residents of Park View Vibhavadi. • Donation of goods and provision of lunch activity: organized at the Nursing Home for Elderly Women by the residents of U Delight Bangsue. • Opening activity of an almshouse at Nimmarnnoradee Temple and Nimmarnnoradee Temple School: organized by the residents of Lumpini CondoTown Bangkhae. • Donation of goods activity: organized at Baan Nokkamin Foundation by the residents of Lumpini Ville OnnutPattanakarn. • Cleaning activity: organized at Nimmarnnoradee Temple by the residents of Lumpini CondoTown Bangkhae. • Cloth dying activity: organized by the residents of U Rangsit-Muangake.

Environmental and Social Activities of the Company

Lumpini Volunteer Clubs are established by joint owners to run environmental and social activities. The Company has continuously been supporting and sponsoring the activities of the Clubs. In 2016, the activities organized are as follows:

The activity is organized by the residents to develop the surroundings in the community and public area nearby. Goods and money are also donated to support many foundations. The 12 activities organized are as follows:

OUT PROCESS

Environmental and Social Activities of Lumpini Volunteer Clubs

2. Voluntary activity in community

Environmental and Social Activities of Lumpini Volunteer Clubs

FROM CORPORATE ESR TO COMMUNITY ESR

• 111

112 •

6 G R E E N LP N

3. Activities of Five Lumpini Volunteer Clubs

The Company promotes and supports environmental and social activities organized by the residents and joint owners in accordance with the concept of “Corporate CESR to Community CESR”. At present, there are organized groups and volunteer clubs known as “Lumpini Volunteer Club.” In 2016, Lumpini Volunteer Clubs have organized the total of eight environmental and social activities as follows: “We Heart the Ocean: Mangrove Planting, Beautiful Corals” activity

Goods are donated to support activities of the Royal Thai Marine Corps. Five hundred mangrove trees and 160 corals are planted at Marine Bay, Sattahip, Chonburi Province. The activity is participated by 185 participants.

660

corals

and mangrove trees are planted.

The activity is participated by

185

participants

“Broom Making” activity

“Kindness Sharing: From Lumpini to Ayodhaya” activity

Brooms are made and broom-making equipment of 10 kilograms are given to Pamafai Temple, Prachinburi Province. The donation of 5,000 THB is also made for the foundry of three Buddha images and 3,000 THB for maintenance of the temple. The activity is participated by 41 participants.

Lunch is provided and goods and money are donated for the elderly at Wasanawes Home. Scholarships are offered to and recreational activities are organized for the orphans at Bangplerng Temple. The activity is participated by 45 participants.

Broom-making equipment of

The activity is participated by

kilograms are provided.

participants

“12 August Half-Marathon 2016”

Walk-run activity is organized to raise fund for Queen Sirikit Center for Breast Cancer Foundation, Chulalongkorn University, Thai Red Cross Society. It was participated by 748 runners.

Raise fund for Queen Sirikit Center for Breast Cancer Foundation

The activity is participated by

748

participants

Scholarships are awarded to the orphans and lunch is provided for the elderly.

The activity is participated by

participants

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

“School Painting and Travelling in the Land of Pra Samut Chedi” activity

The activities include donating goods and sponsoring scholarships for students in remembrance of the late King Bhumibol Adulyadej and standing for a moment of silence in tribute to the late King Bhumibol Adulyadej. Other activities include providing free lunch to the orphans, making merit and donating money to the temple. The activities are organized at Sakaew Temple School, Angtong Province with the participation of 158 participants.

Donating goods, sponsoring scholarships for students and making merit at the temple

The activity is participated by

158

participants

Painting of Ban Kunsamut school buildings, providing lunch to students, organizing recreational activities

Awarding scholarships

10,009 THB

“Sharing of Love: From Lumpini to the Kids” activity

The activities include providing lunch to the orphans, sponsoring scholarships, cleaning Manam Beach and team building activity at Father Ray’s Children Home, Chonburi Province. It is participated by 82 participants.

Providing lunch to the orphans, sponsoring scholarships and cleaning Manam Beach

The activity is participated by

participants

OUT PROCESS

The activities are divided into two groups (by age and interest) as follows: • Group 1: painting of Ban Kunsamut school buildings, providing lunch to students, organizing recreational activities and awarding scholarships of 10,009 THB. The paint, painting equipment and painters are from Fair 9350 Co., Ltd. (valuing 34,000 THB). • Group 2: making merit at Sakla Temple and taking a field trip to study the ecology system of the mangrove forest at Phra Chulachomklao Fort.

Environmental and Social Activities of the Company

The activities are divided into two sessions as follows: • Morning session: the activity is organized at Buddha Utthayan of Phra Buddha Metta Prachathai under the Royal Patronage of Her Majesty the Queen, Tipsukontaram Temple. The activities include food offering to 48 monks, walking with lighted candles in hand around the temple, offering Tripitaka to the temple and planting trees. • Afternoon session: the activity is organized at Elephant Conservation Center Kanchanaburi (Home for Old Elephants). The activities include stirring and kneading sticky rice, planting crops as elephants’ food and bathing elephants.

“Loving is Sharing: Fulfilling the Dream of the Children” activity

Environmental and Social Activities of Lumpini Volunteer Clubs

“Elephant Conservation on the Auspicious Occasion of Her Majesty the Queen’s 84th Birthday Anniversary” activity.

• 113

1 1 4 • 6 G R E E N LP N

4. Ruamjai Band Club Activity

LPN Ruamjai Band Club is the musical band established by the members of Lumpini community who love music and would like to share the love of music and happiness with others. Moral support and good thoughts are shared through meaningful music and lyrics. The band also sponsors scholarships and study equipment to students. The show is performed in different venues. In 2016, two activities are organized as follows: Ruamjai Band Club Activities in 2016 No.

Venue

Activities

Thai Red Cross Children Home

- Performing music - Playing games - Chatting with children to build their moral - Teaching the children to play music instruments - DIY cap and origami activity - Sponsoring scholarships, study equipment, snacks and milk to the children (valuing 15,000 THB).

Ramathibodi Hospital

- Performing music for the patients, staff and people visiting the hospital. - Chatting with the patients to build their spirit - Making a donation of 32,451.25 THB for the construction of Chakri Naruebodindra Medical Institute. - Sharing happiness through Facebook: condo lumpini

Sponsoring scholarships, study equipment, snacks and milk to the children valuing

15,000

THB

Making a donation of

32,451.25

THB for the construction of Chakri Naruebodindra Medical Institute

AS PROCESS

â&#x20AC;¢ 115

SUSTAINABLE POLICY

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

1 1 6 â&#x20AC;˘ 6 G R E E N LP N

L.P.N. ACADEMY

1. Competency-Based Development L.P.N. ACADEMY

In 2016, the policy of the Company is to focus on the development of leadership competency of executive staff and coaching skills of managerial staff in order to develop good and decent leaders. The emphasis is also put on capacity development of operational staff to develop their capacity and professional attributes. The information on organizational growth, the recruitment of successors, promotion, position changing, performance evaluation and remuneration consideration is systematically linked with the Human Resources Department. It is to enhance the efficiency of human resources management and development as well as build and maintain the most valuable resource that will take the organization forward as â&#x20AC;&#x2DC;value organization in a sustainable mannerâ&#x20AC;&#x2122;.

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

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

Leadership Competency Leadership

Functional Competency

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

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

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

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED

• 117

2. Functional Competency Development

3. Leadership Competency Development

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

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

Outcome of Leadership Competency Development

The development of leadership competency is very crucial to the success of the organization as leaders are directly responsible for leading and motivating a team to achieve the target. LPN has developed the leadership competency of middle to high-level executives (level 8-13) in seven aspects of competency.

2015

7. Entrepreneur Mindset

77.22 73.30

71.50 72.70

67.25 75.54 73.80 71.79 6. Innovation Mindset

Average

2016

This year, the competencies on Interpersonal Relationship and Leading and Motivating Others have improved. It is because in 2015-2016, L.P.N. Academy has intensely developed the coaching culture so the scores in “people” aspects have improved. However, the competency on Innovative Thinking must continuously be developed by providing a platform specifically for developing the competency.

AS PROCESS

Analysis:

L.P.N. ACADEMY

2014

5. Driving Change

4. 3. Motivating & Interpersonal Leading People Relationship

SOCIAL ENTERPRISE

2013

71.50 78.07 74.00 72.66

2. Strategic Execution

73.25 81.48 79.68 76.40

1. Envision the Future

74.00 80.83 80.97 75.33

76.00 81.85 82.65 73.85

90 80 70 60 50 40 30 20 10 0

75.50 77.71 77.94 72.50

• Leadership Competency Development

1 1 8 • 6 G R E E N LP N

2. Development and training Managerial & Leadership Course (G4-LA10)

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

Community Mgt.

e e ntivnanc e v Pre ainte &M

e Cour

Electiv

Sale Mgt. ect Proj

Lea

oac

C r as

e ctiv kill Effe isory S erv Sup

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Functional Course

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Managerial & Leadership Course

The Seeds #2

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Code of Conduct Core LPN Way Course

1. Core Course

2. Managerial Course

the course focuses on building a good attitude towards LPN operational standard such as LPN Way, Code of Conduct, LPN Services Culture, social responsibility and participation in organization development towards sustainability.

the course focuses on the development of management knowledge, skills and competency and coaching such as Leader as a Coach training, Manager as a Coach training and The Seeds #2 project. Management trainings are conducted in four levels as follows: • • • •

High-level executive development plan (Level 11-13) Middle-level executive development plan (Level 8-10) Entry level manager development plan (Level 5-7) Operational staff development plan (Level 2-4)

L. P. N . DEVELOPMEN T PUB LI C COMPA N Y LI MI TED â&#x20AC;˘ 1 1 9

Functional Course

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

It is the course that builds the knowledge and skills of staff in all departments. The staff are able to choose which topic they would like to learn such as English for Communication, Mind Map, Learning from Movies, etc. The Learning Ratio of 70 : 20 : 10

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

70% 70%

On the Job Training

10% refers to learning from trainings and workshops.

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

10% Training 1) Standard Course of the Organization 1.1 LPN Way 1.2 RMTC 1.3 SD, CESR, CG and LPN Green Workshop 1.4 SERVICES 2) Leadership and Management 4) Activity to Promote Learning Course 4.1 Book Briefing 2.1 L.8-13 : Leader as Coach 4.2 Knowledge Sharing 2.2 L.5-7 : Manager as Coach 4.3 Learning Delivery 2.3 L.2-4 : The Seeds #2 4.4 E-Learning 4.5 Morning Talk 3) Professional Course 4.6 Mind Map 3.1 Sale and Transfer 4.7 Learning from Movies 3.2 Project Management 3.3 Community Management 5) External workshops 3.4 Maintenance Work and trainings 3.5 Community Service 6) Business Simulation 3.6 Brokerage Business Mobile Technology

L.P.N. ACADEMY

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

4) Job Enrichment and Job Enlargement

Efficient Development Training

AS PROCESS

20%

1) Morning Talk 2) Sharing After Training or Knowledge and Experience Sharing 3) New Staffâ&#x20AC;&#x2122;s On the Job Training

SOCIAL ENTERPRISE

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

1 2 0 â&#x20AC;˘ 6 G R E E N LP N

Outcome of the Development and Training (G4-LA9)

In 2016, the Company aims to create learning and development opportunity for no less than 85% of staff. They must attend development training of no less than 56 hours/person/year. In 2016, the average training hours of staff is 85 hours/person and can be categorized by level and gender as follows:

85%

Male

Training Hours

Total Average Total - High-ranking executive (L.11-13) 664.90 110.82 691.70 - Middle-ranking executive (L.8-10) 5,310.10 165.94 3,394.50 - Entry level manager (L.5-7) 17,823.60 79.93 17,300.50 - Operational staff (L.2-4) 28,967.00 65.39 21,941.00

Level

The Company aims to create learning and development opportunity for no less than

Female

Staff

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