6 GREEN LPN

LIVABLE LIVING EXPERIENCE

• MESSAGE FROM CHAIRMAN

• VISION & MISSION FOR SUSTAINABLE GROWTH

• LPN WAY: MOVING THE ORGANIZATION TOWARDS SUSTAINABILITY

• OUTSTANDING OPERATION PERFORMANCE

• DEVELOPMENT BUSINESS STRATEGY MAP 2024

• AWARDS OF PRIDE

• SUSTAINABLE DEVELOPMENT GOALS

•

• LPC SOCIAL ENTERPRISE

• LPN ACADEMY

• INNOVATION

• ABOUT L.P.N.

• STAKEHOLDER ENGAGEMENT & MATERIALITY ANALYSIS

•

PROCESS

•

MESSAGE FROM THE CHAIRMAN

I would like to express my gratitude to the executives, staff members and trade partners who have dedicatedly supported the operation and to all shareholders for your faith and trust. Every support is the driving force for the Company to develop the best product and service incessantly as it is our determination to build “Livability” that creates real pleasure of living for every Thai people in a sustainable manner.

Dear All Shareholders,

In the year 2023, Thailand declared its participation in the United Nations Sustainable Development Cooperation Framework calling for the Decade of Action for Sustainable Development. This declaration occurred at the Sustainable Development Goals (SDG) Summit 2023, held in New York City, United States. Thailand aims to promote investment in the green economy and implement the Thailand Green Taxonomy to encourage investment for sustainability. In addition, it has set an investment target for businesses related to Sustainable Development Goals (SDGs) of no less than 1.6 trillion baht in the year 2030.

Under such policies and directions to drive economic growth, L.P.N. Development Public Company Limited, as one of the real estate businesses that has been consistently following sustainable development principles in our organizational development since its establishment in 1989, has been incorporating sustainable living innovations into the development of all projects from design to handover and post-handover care, considering the three key components of sustainable development: Environmental, Social, and Governance (ESG).

Environmental: Since its establishment, the Company has prioritized environmental concerns in developing its residential projects from construction phases to project handover. It implements the Net Zero Waste concepts in its residential development to minimize waste generated in construction sites. Furthermore, it aims to reduce CO2 emissions by at least 20% by 2032 in order to help solve the Climate Change problem and take part in driving Thailand toward a low carbon society. This aligns with the government’s goal to lead Thailand towards a low-carbon society in 2030, as mandated in the commitments made at the 26th United Nations Framework Convention on Climate Change Conference of the Parties (COP26) held in 2021.

Social: The Company emphasizes project development that takes social impacts into consideration. It also creates opportunities for the organization’s human resources that are parts of the society as well as all stakeholders. Additionally, it focuses on providing

care and assistance to communities and societies surrounding the projects developed and managed by LPN. The aim is to create a decent society under the ‘Livable’ concept, integrating both internal and external organizational operations.

Governance: LPN is a business organization that places importance on corporate governance, considering the benefits for all stakeholders, both in terms of financial returns and social value returns. This includes sharing knowledge and creating employment opportunities for the underprivileged through LPC Social Enterprise, Co., Ltd. LPN utilizes innovation to enhance and streamline its processes, aiming to increase efficiency, reduce costs and minimize work processes in order for the Company to maintain employment and profitability and ensure favorable returns to all stakeholders, including sharing profits back to the society.

Under the aforementioned management approach in 2023, a year in which Thailand continued to face economic volatility and uncertainty due to global geopolitical issues, the Company has been able to drive organizational profitability and implement sustainable organizational management policies. This was achieved through the wholehearted cooperation of every team member.

(Amornsak Noparumpa)

Chairman of the Board

SUSTAINABILITY GOALS

The Board of Directors considers and approves the vision, mission, strategy and business plans of the Company, subsidiary companies and associated companies. The vision of the Company has been revised every three years in order for the Company to achieve sustainable growth targets by taking into account the balance of both quantitative and qualitative rewards for all stakeholders as well as social and environmental responsibilities. The operation of the Company is in accordance with the principles of good governance. A mission statement is developed annually to reflect the changing environments. The organization is driven by the LPN Way which is derived from the extensive experiences in business operation.

Vision 2023-2025

Increase performance in financial dimensions while maintain equilibrium and accountability towards stakeholders for sustainability.

Commitments to Stakeholders

Shareholders Staff Customers LPN Team

Enhance operating results in the financial aspect under risk management and good governance.

Develop staff potential to be equipped with skills, knowledge and work with responsibilities.

Create valuable, quality and caring “livable” society.

Jointly develop work processes for business advancement and growth.

Neighbors Residents Labors Environment

Responsible, remedy and handle impacts from operations, including promote engagement and good relationship. Deliver “Real Pleasure of Living” under “Livable Home” strategy with affordable prices for all customer groups.

Maintain quality of life, safety and occupational health through supporting alliances’ operations.

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

LPN WAY: MOVING THE ORGANIZATION TOWARDS SUSTAINABILITY

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 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”.

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

COST WITH QUALITY

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

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

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

The focus on the development of the working and problemsolving process that is quick and attentive to details for the quality of the work and the completion before deadline to be one step ahead of others.

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

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

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

OUTSTANDING OPERATION PERFORMANCE

Percentage of Employees Passing Integrity Tests

DEVELOPMENT BUSINESS STRATEGY MAP 2024

FINANCIAL

Sustainability

CUSTOMER

Create Value for our customers: to meet and beyond their needs, demands, and expectations through products and services.

INTERNAL

Decision are made on the basic of best available Information and a culture of continuous improvement and commitment to the consequences.

Increase sales revenue and backlog

Achieve a positive financial position

Manage dept liabilities and liquidity

Our communities’ and residents’ outcomes are “Pride to belong”.

Value for money, quality and care

Enhance brand experience

Deliver a quality living and society

Develop and embed ESG goals into our operating process and structure to sustain our business

ORGANIZATIONAL CAPABILITIES

Our staff are proficient, capable, compassionate and committed to delivery the best result.

Our organizational structure and systems support the delivery of outstanding outcomes and responsive to impact of change.

Human Capital

Engaged & Empowered Workforce

Develop talented, empowered and accountable workforce

Strengthen staff communication and engagement

Develop a culture of self learning, and continuous improvement

• Develop systematic thinking and result-oriented skills

Information Capital

Consequence & Data-driven Based

Promote enquiry and research to develop, share and apply new knowledge

Develop IT capability for better accessing, understanding and evaluation of information

Promote objective-drive and cost-benefit decision making

Organizational Capital

Responsive & Livable Organization

Promote team-based organization and goaldirected alignment

• Develop expertise in business deliverable procedures across business units and partners

Strengthen stakeholder -centric collaboration

• Green Enterprise Management

Business Operation Direction in 2024

2024 is another year in which the real estate business continues to experience the economic uncertainty and volatility following the uncertainty from the protracted war between Russia and Ukraine that has been going on since 2022, the geopolitical tensions between China and Taiwan, the conflict between Israel and Hamas and the conflict in the Korean Peninsula. China’s economic slowdown has a direct impact on world economic growth. According to a forecast by the International Monetary Fund (IMF) and the World Bank, global economic growth is projected at 3 to 3.1% in 2024. For the Thai economy in 2024, the Bank of Thailand and the Office of National Economic and Social Development Council have projected that the growth will be in the range of 2.2% and 3.2% with an average of 2.7%. Such trends directly affect the real estate business. Although the government has a real estate stimulus policy extending the reduced ownership transfer fee (from the normal rate of 2% to 1%) and the mortgage registration fee (from 1% to 0.01%), the proportion of household debt burden plus informal debt burden that is higher than 100%, causes a decrease in debt capacity of housing buyers. As a result, the financial institutions are much stricter in approving housing loans. In 2023 alone, the average loan rejection rate was 60%.

Under such circumstances, L.P.N. Development Public Company Limited has adjusted its 2024 business strategy by striking a balance (Rebalance) in management and housing development including balancing the use of the Company’s resources to achieve maximum efficiency, and balancing stakeholder returns. The 3 main elements or 3Ps, consisting of Profit, People (Society) and Planet (Environment), are taken into consideration in the operating approaches of the following 4 dimensions.

1. Organizational Management Dimension

In 2024, the Company focuses on organizational management that takes into account the balance of using existing resources to create value for the organization. Expertise from each division is brought in to ensure work harmonization from land procurement to project development and after-sales service. Competencies of all affiliated companies are united to support the work in 2024, i.e. using the real estate research and development work of an affiliate named L.W.S. Wisdom and Solution Company Limited in selecting locations and developing projects. LPS Project Management Company Limited provides engineering services whereas LPP Property Management Company Limited is responsible for comprehensive after-sales services for both condominiums and residential homes.

This work process will play an important role in propelling the organization and enabling it to manage from upstream to downstream, i.e. from land selection to after-sales service. The purposes of this are to add value to every project developed by the Company and to respond to the needs of today’s buyers who focus on buying housing that suits their unique lifestyle.

2. Financial Dimension

In 2024, the Company gives precedence to balanced growth and adopts the “1 Reduction, 2 Increases” policy, i.e. “reducing expenditure, increasing financial liquidity, and increasing revenue”.

How to reduce expenditure

1. Accelerate the liquidation of 11-billion-baht inventories to reduce interest costs and project maintenance costs by increasing compensation for employees who help with sales.

2. Use financial instruments to reduce the loan rejection rate in collaboration with financial institutions, to reduce resale burden caused by loan rejected customers

3. Manage finance costs through the management of interest expense costs that is appropriate for market conditions and revenue-generating capability of the organization.

How to increase financial liquidity

Implement the price strategy to accelerate the sale and transfer of the existing inventory. The goal is to sell inventory worth 4,500-5,000 million baht, out of the 11,000-million-baht inventory, in order to increase financial liquidity and use the fund for future project development.

How to increase revenue

1. Improve the revenue-generating capability of affiliated companies by letting them provide services externally and reduce their dependence on the parent company by enabling them to generate profits and pay dividends back as income to L.P.N.

2. Optimize investment portfolios by using the Company’s fund to further its investments into businesses that generate appropriate returns to increase revenue for the organization.

3. Customer Dimension

2024 is the year in which the Company emphasizes developing products and services that respond to customer insight. After analyzing customers’ behaviors and needs from Big Data, the Company adjusts its project development plan in response to the needs of the new generation. This year the plan is to launch 6 new projects - 1 residential condominium project and 5 residential home projects - with a combined value of 6.52 billion baht to meet the buyers’ greater demand for residential homes.

4. Employee Dimension

2024 is the year in which the Company pays more attention to the mid-level employee development so that they can become a mechanism in propelling the organization and developing housing that meets the needs of the new generation. The Company also applies digital technology in their skill development to increase their efficiency at work.

The main goal of the operating approach of the 4 dimensions is to rebalance the organization and drive it toward sustainable growth (Rebalance for Sustainable Growth) by using the organization’s existing resources, including financial resources, organizational resources and human resources, to the maximum efficiency.

The Company also applies digital technology in their skill development to increase their efficiency at work.

AWARDS OF PRIDE

L.P.N. Development Public Co., Ltd. won a Corporate Governance award.

The Company achieved the corporate governance scoring at an “Excellent” level of recognition (5 stars) in the 2023 Thai Listed Companies’ corporate governance assessment conducted by the Thai Institute of Directors Association (IOD) with support from the Stock Exchange of Thailand (SET).

Sustainable Development Goals

The Company has been establishing a vision to serve as a guideline for business operation for more than 20 years in order to ensure that the operation of all departments in the organization is moving towards sustainable development. Each vision is strengthened and appropriate growth target is determined to develop and drive the organization forward. The business plan and short-term goal are identified annually both in terms of values and finance to be in conformity with the mission towards all stakeholders. It is to generate a sound profit, bestow the values of the operation on the customers and be responsible for the environment and society.

In 2023, which was the first year of the new vision, the Company has continued to prioritize driving the organization towards sustainability. However, this year, real estate businesses still faced challenges from various factors. Although the coronavirus pandemic subsided, people still needed to live their lives cautiously. In addition, there were economic recessions and the prolonged Russia-Ukraine war. Therefore, this year, the Company had to operate with caution, under tight risk management, and adapt to various impacts in order to safely lead the organization and all stakeholders through the crisis.

Regarding the main goal for organization’s growth, the Board of Directors places importance on and sets organization’s goals that are in line with the 2030 Agenda for Sustainable Development that includes 17 Sustainable Development Goals (SDGs) set by the United Nation. The goals in various issues are as follows:

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

Make well-being a significant agenda of the company.

Enhance well-being and occupational safety of staff. Design projects with the residents’ well-being in mind.

Provide educational opportunity to underprivileged women.

Support gender equality in the organization.

Develop projects that protect and restore water-related ecosystem.

Design with water-use efficiency in mind.

Employment, Wages and Income Distribution

Enhance well-being and occupational safety of construction workers.

Be responsible for possible impacts on the environment and society. Take care of the quality of life and the safety of residents of all ages.

Promote schooling for underprivileged children living in construction worker camps.

Treat employees in a fair and equal manner.

Treat wastewater before it is reused or discharged.

Encourage the reuse of treated wastewater.

Encourage wastewater treatment within the community before discharging good quality water to public waterways.

Reuse treated wastewater in the communities.

Design buildings to be energy efficient to reduce energy use.

Create jobs, income and operational profits.

Carry on anti-corruption operation. Encourage integrative researches to enhance the adjustment to become a sustainable organization in the property development industry.

Treat all stakeholders equally.

Respect human right and give significance to providing equal opportunity to people with disability.

Develop projects to ensure access for all to adequate and safe housing.

Develop projects in densely populated areas in response to the increase in population.

Develop projects that have green and public spaces accessible by everybody.

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

Promote a sustained and sustainable economic growth of stakeholders.

Support process innovation, product innovation and service innovation and business model innovation.

Establish a policy to promote a full and productive employment and decent work for all women and men.

Establish an energy consumption management plan within the projects.

Regularly organize activities to promote energy conservation.

Treat all stakeholders equally.

Build a Livable Community for all to encourage the creation of participatory and sustainable societies.

SDGs

Emphasize the importance of environment in all operational processes.

Establish a plan for an efficient use of natural resources.

Promote waste recycling and reduction in the organization.

Raise awareness and integrate climate change measures into the organizational policies and strategies.

While designing, keep in mind the projects’ overall energy consumption efficiency and water consumption rate.

Take into consideration impacts on existing ecosystem while developing a project.

Design environmentally friendly projects by applying Green Design Concept Standard.

Use the universal design concept while designing the projects so that everybody can use project space without discrimination.

Identify the organizational goals in accordance with international goals.

Collaborate with other organizations to develop various technology and knowledge.

Efficiently manage and use natural resources in the construction.

Establish a specific policy to eliminate hazardous waste and pollution from the construction.

Promote recycling and reduction of construction waste.

Develop environmentally friendly project.

Control negative impacts caused by construction process using the LPN Green Construction Process Standard.

Establish a plan for an efficient use of natural resources in the community.

Promote recycling and reduction of household waste.

Avoid and prevent possible negative impacts on ecosystem of the project area during the construction operation.

Conserve the ecosystem within the project to ensure its abundance and sustainability.

Provide standardized services in a fair manner.

LPN’S GREEN JOURNEY

LPN’s sustainable development path

In developing its real estate business, LPN is well aware that maximizing profits alone is not the effective approach to lead the organization and all groups of stakeholders towards sustainable growth. The Company, therefore, adheres to and adopts “Sufficiency Economy” philosophy of His Majesty King Bhumibol Adulyadej the Great, King Rama IX, as a guideline for its business operations. In addition, the sustainable development principles that focus on 3 dimensions: Profit, People and Planet, especially, in the environmental dimensions. There are many processes in real estate development that may have a wide impact, such as the design process, construction process and housing care process.

In the past, the Company has been seeking knowledge and applying principles of international green building design to the project design and development which is made into standard, such as LPN Green Design Concept and LPN Green Construction Process. LPN gives importance to the environment from concept design and development of concrete practice under the 6 GREEN LPN concept which was formulated into strategy for sustainable development, as well as improve the process to respond to current environmental changes by adopting Eco-Design & Zero Waste concept under Sustainable Organization goal.

In 2023, the company continued to focus on implementing environmental and social responsibilities, and installed solar rooftops in every project's sales office and sample house. To increase the use of renewable energy and add value to residential projects. The Company determined targets to assess carbon footprint of the organization with the objective to become a Carbon Neutral Organization.

6 GREEN LPN

Green Design Concept and Green Construction Process Standard

First LPN Signature Green Project

First LEED Certified Project

Dream House Project Livable Community Model

The Seeds: Idea Suggestion

Green Design Concept and Green Construction Process Standard for Housing

BEC Awards

The Seeds: Idea Suggestion #2

Construction Camp Site - Quality Improvement Project

100% BIM Implementation

LPN Signature Course

Year of Shift

ISO 14001 and ISO 9001

Kick-off year

Product Development Center

Green Enterprise Standard

Green Marketing Management Standard

Green Financial Management Standard

Year of Change

Lumpini Property Management Co., Ltd. achieves ISO 9001: 2015

LPC Social Enterprise Co., Ltd. achieves ISO 9001: 2015

Lumpini Project Management Service Co., Ltd. achieves ISO 9001: 2015 and ISO 14001: 2015

LPC Social Enterprise Co., Ltd. certified as the first group of SE

TREES Certification Anticipated

Green Community Management Standard Service Development Center

Year of Excellence

LPN Zero Waste Management Project 2022 Kick off

Year of Proficiency

LPN Zero Waste Management Project 2022

LPN Carbon Neutral Organization

Year of Empowerment

LPN Carbon Neutral Organization

LEED Certification Anticipated (Punn Tower)

Year of Business Transformation

LPN Carbon Neutral Organization

LPN 6 Green Development

CESR PROJECT

Carbon Footprint for Organization

for the Year 2023

The Carbon Footprint for Organization is considered one of the responsibilities an organization holds towards the environment and society. This involves disclosing information regarding the quantity of greenhouse gas emissions resulting from various activities conducted by the organization, such as fuel combustion, the use of electricity and various types of refrigerants, waste management, and employee commuting. These emissions are quantified in terms of tons of carbon dioxide equivalent (tonCO2e).

The Company has conducted an assessment of greenhouse gas emissions from its operations and activities throughout the year and has compiled an organization’s greenhouse gas emissions report using data from the year 2023 (data from January to December 2022). Green Style Co., Ltd. served as the consultant, and the Greenhouse Gas Management and Certification Unit at University of Phayao served as the verification body. According to the assessment of the organization's greenhouse gas emissions for the year 2023, the Company emitted 43,327 tons of carbon dioxide equivalent (tonCO2e) per year. The details of greenhouse gas emissions in each scope are as follows:

Scope 1: The organization’s direct greenhouse gas emissions amounted to 348 tonCO2e.

Scope 2: The organization’s indirect greenhouse gas emissions amounted to 1,688 tonCO2e.

Scope 3: The organization’s other indirect greenhouse gas emissions amounted to 41,291 tonCO2e.

2023 Carbon Footprint for organization Certificate

On 21 September 2023, the Company had the honor of being invited by the Thailand Greenhouse Gas Management Organization (Public Organization) to attend a ceremony of appreciation and presentation of the Carbon Footprint Certification for the year 2023. Mr. Prapansak Rakchaiyawan, Chairman of the Corporate Environmental and Social Responsibility Committee, represented the Company at the ceremony. In this event, a total of 37 companies and organizations participated in receiving the certification.

Ceremony of Appreciation and Presentation of Carbon Footprint Certification for the Year 2023

Over the past four years, the Company has continuously conducted its Carbon Footprint for Organization. During this time, the Social and Environmental Management Division has summarized the organization's greenhouse gas emissions quantities (on an annual basis). This data will serve as a basis for planning future strategies to reduce greenhouse gas emissions.

For the year 2024, LPN has set a target to reduce greenhouse gas emissions by 2.5%, following the Science-based Targets (SBT) approach.

• Organization’s Greenhouse Gas Emissions Dashboard, 2019 to 2023

6,539

57,934

Thailand Carbon Neutral Network

In 2023, LPN applied to join the Thailand Carbon Neutral Network to demonstrate its commitment and contribute to driving and supporting greenhouse gas reduction efforts.

Climate Care Collaboration

The Climate Care Collaboration project is a joint initiative between the Stock Exchange of Thailand (SET), businesses, civil society, and the government to sustainably manage the environment. The project aims to reduce greenhouse gas emissions and achieve balanced environmental management. The Climate Care Collaboration is divided into three platforms as follows:

Care the Bear is a project aimed at reducing greenhouse gas emissions from events or activities such as training sessions, award ceremonies, and conferences. The project evaluates and measures the reduction of greenhouse gas emissions using the following six criteria:

1) Encouraging the use of public transportation or carpooling.

2) Reducing energy consumption from electric appliances or switching to energy-saving devices.

3) Minimizing the use of paper, plastic, and packaging materials.

4) Avoiding the use of Styrofoam for packaging or for event decoration.

5) Designing events using reusable decoration materials.

6) Minimizing food waste generated from events.

LPN has implemented the Care the Bear platform to measure the reduction of greenhouse gas emissions from various activities, such as the 2023 shareholder meeting of L.P.N. Development Public Company Limited and the “2023 LPN Business Direction Press Conference & Thank You Party". LPN has reduced greenhouse gas emissions by a total of 5,133 kilograms of carbon dioxide equivalent (kgCO2e), which is equivalent to planting 570 trees.

The Company has participated in two projects, namely "Care the Bear" and "Care the Whale," and is currently studying the feasibility of joining the "Care the Wild" project.

Care the Whale is a project aimed at reducing greenhouse gas emissions through waste management, from the source to the destination, utilizing the principles of the Circular Economy to handle waste properly, thus reducing the amount of waste going to landfills. The project was originated by the Stock Exchange of Thailand, together with civil society, private sector and public sector located along Ratchadaphisek road. Later on, it expanded to various areas, to address environmental issues, particularly waste problems. The goal is to reduce waste generation and greenhouse gas emissions. The project includes data collection using the Care the Whale Calculator tool, which calculates the amount of waste generated and converts it into greenhouse gas emissions quantity. LPN has utilized this tool to calculate the amount of waste in its head office, aiming to determine how the Company’s waste management practices can effectively mitigate greenhouse gas emissions and enhance organizational waste management efficiency.

In 2023, the total amount of waste generated within the organization was divided into general waste and food waste, totaling 4,416 kilograms, accounting for 72.87%. Additionally, recyclable waste amounted to 1,644 kilograms, constituting 27.13%. The combined quantity of waste generated was 6,060 kilograms. Hazardous waste was publicized to be disposed of in the hazardous waste bins located in the common area of the Lumpini Tower.

The project includes data collection using the Care the Whale Calculator tool, which calculates the amount of waste generated and converts it into greenhouse gas emissions quantity.

Care the Bear

Care the Whale

• Summary of the amount of waste at the head office in 2023

Total Waste Output (KG)

6,060

Recycle and General (%)

1,644 4,416 General Waste

Recycle Volume

Recycled by Category (KG)

Plastic 215 Can 4 Paper 1,425

Waste Volume by Year, Quarter, Month (KG)

Care the Wild

Care the Wild is a greenhouse gas absorption initiative through reforestation by adopting the "Plook Pong (Plant & Protect)" strategy. Participating companies can donate funds for tree planting and forest maintenance. They can also participate in tree-planting activities in collaboration with the project and local communities. The goal is to ensure that 100% of the planted trees survive and grow. The companies and the project jointly monitor the reforestation progress for a minimum of 10 years, conducting assessments at least twice annually. The companies can conduct field visits to assess tree growth, discuss about problems with communities, and expand conservation efforts beyond reforestation.

“Yaek Laek Tung” Project

Efficient waste management is considered a key factor in reducing greenhouse gas emissions. Therefore, in 2023, the Company increased awareness and importance of waste management. Data analysis on the amount of waste generated in the office was conducted to find ways to engage employees and motivate them to reduce waste in a concrete way. Thus, the “Yaek Laek Tung” (Separate, Exchange and Earn) Project, a collaboration between L.P.N. Development Public Company Limited and SCG Chemicals Public Company Limited, was initiated. The project encourages employees in the head office as well as co-owners and entrepreneurs in Lumpini Tower to segregate waste and sell it through the Wake up Waste application for recycling. Participants are provided with knowledge to increase the value and ensure proper waste segregation. In addition to increasing income for the ones who sell recyclable waste, the project also facilitates efficient waste sorting, reducing the time required for waste management before entering the recycling process. This activity commenced on Wednesday, 22 March 2023, at Lumpini Tower and is scheduled to be held regularly every last Wednesday of each month. The date, time, and purchase prices for recyclable waste will be publicized two weeks prior to the event to allow co-owners and everyone to have time to segregate and sell their waste accordingly.

Throughout the project implementation period in 2023, a total of 8,223 kilograms of recyclable waste were collected. This helped reduce greenhouse gas emissions by 38,057 kilograms of carbon dioxide equivalent (KgCO2e) (data as of December 2023).

Due to the implementation of this project, the Company applied for certification for reducing the quantity of greenhouse gas emissions from the "Yaek Laek Tung" activity from the Thailand Greenhouse Gas Management Organization (Public Organization) under the Low Emission Support Scheme (LESS). On Friday, 21 September 2023, Mr. Prapansak Rakchaiyawan, Chairman of the Corporate Environmental and Social Responsibility Committee, represented the Company and received a certificate of honor at the Climate Care Forum 2023: Time To Reduce "Reduce-For-the World" event organized by the Stock Exchange of Thailand and the Thailand Greenhouse Gas Management Organization (Public Organization). This event was organized to recognize alliances’ collaborative efforts to reduce greenhouse gas emissions serving as a model for other organizations to adapt and implement sustainably. This initiative aims to foster behavioral changes within organizations to collectively reduce and manage resources wisely, thereby contributing to substantial reductions in greenhouse gas emissions.

Publicity Materials and Purchase Prices for Each Type of Recyclable Waste Atmosphere at the Launch

of the “Yaek Laek Tung” Project

Ceremony to Present Certificates of Honor at the Climate Care Forum 2023: Time To Reduce 'Reduce-For-the World'

Energy Management within the Organization

Based on the senior management's concepts and policies regarding electricity management within the organization, relevant units have developed guidelines and action plans for electricity conservation to align with the organization's environmental goals. These include selecting energy-efficient light bulbs with appropriate luminous flux, switching on and off electricity during lunch breaks, and replacing old air conditioners in the office, as well as installing Solar Rooftop in the projects’ sales offices. Details of energy usage within the organization are as follows:

The average electricity usage at the head office increased by 0.3% in 2023 compared to 2022. However, this increase in electricity usage proportionally decreased due to the replacement of air conditioners in Zone A, 36th floor in July 2023. This led to a 34% reduction in electricity usage from July to December 2023. Electricity Usage

• Graph Comparing Electricity Usage at the Head Office between 2022 and 2023

Electricity usage at the sales and customer service offices increased by 60% in 2023 compared to 2022 since the Masion 168 Muang Thong project had electricity consumption in its model homes and Club House. In addition, four new projects were launched, namely Park 168 Nopparat - Ramindra Project, Residence 168 Ratchaphruek Project, Villa 168 Westgate Project, and EARN by L.P.N. Project.

• Graph Comparing Electricity Usage at Sales Offices between 2022 and 2023

Units of Electricity Usage at Sales Office

Solar Rooftop Installation

As a result of the Solar Rooftop installation policy in the sales office to convert solar energy into electricity for use in the sales office, in 2023 rooftop solar panels were installed in all sales offices as follows:

1) Lumpini Seaview Project

2) Place 168 Pinklao Project

3) Lumpini Ville Pakkret - Chaengwattana Station Project

4) Ville 168 Bang Wa Project

5) Lumpini Park Phetkasem 98 Project

6) Lumpini Condo Town Ekachai 48 Project

7) Park 168 Project

8) Nopparat Ramindra Project

9) EARN by L.P.N. Project

The installation of Solar Rooftop was able to reduce greenhouse gas emissions by a total of

31,733 kilograms of carbon dioxide equivalent (KgCO2e).

The installation of Solar Rooftop was able to reduce greenhouse gas emissions by a total of 31,733 kilograms of carbon dioxide equivalent (KgCO2e). Additionally, it helped reduce electricity consumption from the grid by approximately 38% of the total electricity usage. This translated to an average electricity cost savings of 40,000 Baht per year.

In 2023, the Company has applied for certification for reducing greenhouse gas emissions from the installation of Solar Rooftop in the sales offices of 9 projects from the Thailand Greenhouse Gas Management Organization (Public Organization) under the Low Emission Support Scheme (LESS). The certification results will be announced in February 2024.

1. Lumpini Seaview Cha-am

2. Lumpini CondoTown Ekachai 48

3. Lumpini Park Phetkasem 98

4. Lumpini Ville Chaengwattana - Pakkret Station

5. Place 168 Pinklao

6. Ville 168 Bang Wa

7. Park 168 Nopparat - Ramindra

8. Park 168 Onnut 16

9. EARN by L.P.N. Project

17 July - 20 December 2023 Total 1 Activity 31,733.00 Solar Rooftop Project @ LPN Sale Gallery Certified Period for Greenhouse Gas Reduction/Sequestration Amount of Greenhouse Gas Reduced and Sequestrated (kgCO2eq)

1 January - 31 July 2023

13 June - 20 December 2023

12 June - 20 December 2023

1 January - 20 December 2023

16 June - 30 November 2023

14 June - 20 December 2023

22 June - 20 December 2023

Water Usage

The average water usage at the head office increased by 23% in 2023 compared to 2022. This was due to the fact that in 2022, there was still partial Work From Home arrangements, causing the average water usage in 2022 to be lower than the actual usage.

• Graph Comparing Tap Water Usage at the Head Office between 2022 and 2023

Units of Water Usage at Head Office

Water usage at the sales and customer service offices increased by 147% in 2023 compared to 2022. This increase was due to the expansion of green areas and the installation of sprinklers to care for plants in all projects. In addition, there was a swimming pool cleaning and water changing at the Maison 168 Muang Thong project.

• Graph Comparing Tap Water Usage at Sales Offices between 2022 and 2023

Units of Water Usage at Sales Office

SUSTAINABLE POLICY 01

SUSTAINABLE POLICY

In order to attain organizational sustainability goal, it is essential that personnel in all levels share common understandings and visions of the same goal. Thus, LPN compiles and refines sustainable development concepts into knowledge which is embedded within the organization and being used as guidelines for all sectors to implement. These principles are important and solid foundations for operational strategies of the Company.

Foundation of Sustainable Development Based on the Philosophy of Sufficiency Economy

Since the establishment of the Company, it has been conducting 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:

Sustainability Guideline and Performances

3 principles 2 conditions 4 dimensions

Consist

• 3 Principles

1 1

Moderation

Regularly assess the Company potentials and risks in order to set an appropriate growth rate. Seek adequate profits from business operation by not exploiting or taking advantage of customers or society. Use the world’s resources with gratitude.

Return the products and the profits to the society.

• 2 Conditions

Analyze the economic situation and other factors before identifying targeted customers and projects.

Take into consideration quality of life of the residents in all aspects, both products and service, with the “Livable Community” concept.

Create a balance of benefits for all stakeholders.

Consider the impacts of the business operation in all dimensions.

Emphasize continual human resources development.

Operate business with caution by establishing suitable strategies for economic situations.

Continuously develop innovation, tools and process for business operation.

Focus on risk management in order to prepare for upcoming crisis.

Assess impacts on stake holders and stakeholder risks throughout the whole process.

Strive to be a learning organization, encourage knowledge and skill sharing and integrate various fields of knowledge for the most efficient operation by putting LPN Academy at the core of the mobilization.

Identify “integrity” and “honesty” as ones of the corporate values leading to corporate governance which is the cornerstone of business operation, as well as comply with good corporate governance principles.

In every step of business operation, the impact must be taken into account and the balance of the following four dimensions must be created.

Economy - generate adequate income and profits and do not take advantage which will cause negative effects in other dimensions.

Society - build a good relationship with communities and wider society, be a good global citizen and respect all stakeholders.

Environment - use the resources with gratitude in the most efficient and effective manner and reduce the impact on the environment.

Culture - be a part of a wholesome culture conservation, respect diversity and conduct business on good ethical principles.

We believe that sufficiency and adequacy will bring about balanced and sustainable growth.

POLICY AND SUSTAINABLE MANAGEMENT GOAL

The business operation of the Company has always been done in a socially and environmentally responsible manner in all processes and in every step. This is to prevent and minimize possible environmental and social impacts and take proper care of stakeholders according to the organization’s sustainability management guideline or LPN Platform 3-6-8-10, which has been refined and constantly developed throughout 35 years of its operation. Triple Bottom Line framework, a principle of sustainability development that focuses on the 3 ultimate components in economy, society and environmental 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 components of our business operation are as follows:

3 P

Create the balance of adequate and regular profits from the operation on the basis of good corporate governance, responsibility and transparency in business operation, appropriate risk management and the consideration for profit-sharing with all stakeholders.

Take social responsibility not only for internal stakeholders but also external parties including trade partners, customers, residents and neighboring communities, construction workers as well as the national society at large.

Reduce the impacts of the project development (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.

LPN AND SUSTAINABLE DEVELOPMENT

Commercial Value Chain

Usually, the responsibility of a real estate developer comes to an end after the product or condominium units are handed over to customers. On the contrary, the Company realizes how significant it is to ensure that the quality of life of the residents of the projects developed by the Company is enhanced and taken care of as they have trust in Lumpini brand and decide to make our condominium unit their “home”. This is the beginning of the development of “Livable Community” concept which is an after-sale service offered both in terms of building management and community management. The concept has been implemented for more than 35 years. The responsibility towards all stakeholders of the Company has started from the policy level within the organization. It follows the Philosophy of Sufficiency Economy that emphasizes on creating integrated values in all sectors for sustainable development and focuses on using the information obtained from the study, research and development and the use of technology for decision-making based on good governance that takes into account all stakeholder groups in all 10 core processes of the property development of the Company as follows:

6 GREEN LPN

All through the 35 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:

3 GREEN ENTERPRISE GREEN DESIGN CONCEPT GREEN MARKETING MANAGEMENT

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

The product design that is environmentally responsible.

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

6 GREEN FINANCIAL MANAGEMENT GREEN COMMUNITY MANAGEMENT GREEN CONSTRUCTION PROCESS

The appropriate returns and growth of the organization.

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

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:

1 2 3 4

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

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

refer to those who are interested in the project developed by the Company and have reserved to buy and made a down payment. In the future, when the project is completed, the customers will become joint owners /residents. In addition, the customers also refer to those who are interested in renting the Company’s condominium units and have made rental contracts and paid rental fees. In the future, this group of customers may become buyers and residents.

CHAIN

refers to trade partners or business alliances of the Company who take part in the design and construction of projects as if they are one of the staff of the Company. The objective is to achieve the mutual goal. LPN team also refers to co-investors in project development. They can be persons or companies.

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

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

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

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

PROCESS 01

Project Location

10 PROCESSES

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.

PROCESS 02

Project Development

Process Specification

Projects are analyzed and development goals are set in order to specify project’s characteristic and size and development steps, including brand and product value that will be delivered to customers, by considering the return on investment, the location suitability and the project development pattern.

1

2

3

PROCESS 03

Land Purchase

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.

PROCESS 04

Design Concept

Products are designed with environmental and social responsibility in mind in response to the needs that are in ‘balance’ with every dimension of living. It uses the LPN Green Design Concept Standard which is developed by LPN and is consistent with internationally accepted Green Building Standard. This is to standardize the product making it a residence that promote resource conservation and truly minimize environmental impact.

PROCESS 05

Sales & Marketing Management

The marketing activity of the Company is “Human 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.

& Marketing Management

Financial Management

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

Operational standard is set and the procurement inspection is regularly and concisely performed according to international standard. This includes choosing quality and environmentally friendly materials and promoting the use of materials that contained recycled content to reduce the natural resource consumption.

GRI : 102-9 Supply chain 102-16 alues,principles,standards,and norms of behaviour

The Company does not only apply Q-C-S-E-S+P strategy in its management, but also keeps in mind the impact on surrounding society, community and environment in every dimension. Moreover, it manages possible risks during construction by cooperating with alliances and following the Green Construction Process Standard strictly. Project Management

The quality of condominium units and common area is fully inspected before the condominium units are handed over to reassure the customers that they receive up-tostandard and good quality products. As a preparation before moving in, the Livable Community policy and residential rules are communicated and informed to residents to create understanding, acceptance and happiness in living together.

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

Mangement

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.

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 LPN Academy, the center for human resources development and knowledge sharing and LPC Social Enterprise 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

In Process

The responsibility towards the impacts of all processes of the business operation of the organization on the stakeholders, environment and society.

Out Process

The participation in and support for environmental and social activities that are not related to the operation of the organization.

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

Sustainable Development Goals

GREEN ENTERPRISE

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

The Company placed an importance on and operated its business with social and environmental responsibility in all processes and in every step. This was to prevent and mitigate possible environmental and social impacts. The Company maintained its concepts and practices to take proper care of 8 groups of stakeholders according to the 6 Green LPN strategy which would lead t o a sustainable business conduct. Corporate policy and operational standards across all areas of the business have been establish ed. The Company also mitigated and alleviated burdens or impacts on stakeholders of these crises in full capacity. The tasks were divided into 2 categories namely Sustainability Management and Human Capital Management

1. Sustainability Management

Appropriate Growth and Profit

The Company has developed the management guideline and strategy by establishing appropriate growth and profit target giving sustainable and substantial returns to all stakeholders. In the past year, the Company has taken into account the development and sustainable solutions in a more systematic manner since it was the year that real estate businesses experience the consequence of the COVID-19 crisis.

Affordable Home

Adhering to the Philosophy of Sufficiency Economy which promotes social well-being, the product development policy of the Company intends to build residence that is “suitable” for living as well as create a better quality of life for residents in every dimension.

3. Good Quality of Life in Great Culture

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

4. Balanced Profit for Stakeholders

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

5. Risk Management and Corporate Governance

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

6. Anti-Corruption

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

7. Environmental and Social Awareness and Responsibility

The Company takes responsibility for the operational impacts with the 6 GREEN LPN and operational standards in every departments. It also promotes environmental and social awareness and encourage staff participation through various environmental and social operations and activities.

8. Giving Back to the Society

Operating through LPC Social Enterprise Co., Ltd., an affiliated company of L.P.N. Development Group, the Company takes part in building a great society by creating job opportunities for underprivileged women so that they have stable jobs, earn income to enhance their families’ quality of life and develop a better quality of life for themselves. In addition, the Company also imparts knowledge and experiences to the society.

2. Human Capital Management

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:

INTEGRITY

COLLABORATION

2. Livable Organization

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

6 Factors of Livable Organization

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.

4. 2. 5.

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

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

3. Learning & Growth

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.

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

3. 6.

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.

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

4. Work-Life Balance

The Company takes care of the quality of life of staff and encourages them not to over work and to spend time with their family.

The Company sets appropriate working hours per week and encourages all staff to take annual leave.

GREEN ENTERPRISE OPERATION

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

Sustainability Management

Managing an organization for sustainability is main philosophy of the Company and the heart of 6 GREEN LPN. It is integrated in all aspects of the Company’s operation i.e. Green Financial Management, Green Design Concept, Green Marketing Management, Green Construction Process or Green Community Management. The Sustainability Management under Green Enterprise concept covers structural management operation of the organization which aims to be an organization with good governance.

Risk Management

Opportunity and risks are present together in every process of business operation. In 2023, the Company has adjusted its strategy to be in line with the overall economic situation including the situation of the real estate business that has been affected by the Coronavirus Disease (COVID-19) pandemic so that there is a concise operational standard to assess and be cautious of possible risks in various dimensions. These risks might bring damage the organization. More details of policies and risk management plans for 2023 can be found in Form 56-1 One Report / Annual Report 2023.

• Sustainability Risk Assessment

The Company realizes that real estate development business operation has significant impacts on various stakeholders. In 2023 the Company has expanded its revenue base from related service business to increase income and reduce expenses. At the same time, the Company’s important policies are communicated to employees at all levels for acknowledgment via the Company’s communication channels so that they can take parts in the risk management. This enables the Company to supervise the risk management efficiently. Due to the impacts of COVID-19 pandemic, the Company has adjusted its business operation policy by adding marketing channels, online sales and project visits through 3D Virtual technology, preventing the outbreak and risks in worker camps and maintaining the Green Construction Process standard under the Q-C-S-E-S+P strategy to reduce construction impacts on stakeholders. The Company adopts technology and innovation from the international green building standards and develops them together as a project management guideline for LPN operation. This reduces the neighboring communities’ complaints on construction work and brings about safety for workers working on construction sites. It also reduces the possible negative impact on the organization’s reputation which is important for maintaining the sustainability of the Company.

• Revision of Risk Management Policy and Internal Control

Risk management policy of the Company is in accordance with the risk management and internal control principle. Risk management policy has been regularly reviewed in order for the policy to be in accordance with changing situations and the current circumstances that involve various factors and change rapidly from internal and external factors. This is to reduce impacts by reducing the risks to an acceptable level. The Audit Committee, who is independent from the Executive Committee, is responsible for proposing risk management guidelines and providing risk management recommendations to the Executive Committee. Furthermore, the Committee monitors the management and reviews and revises the internal control system together with the auditors on a quarterly basis. The issues include the operation, use of resources and assets to prevent any mistake, damages or corruption, credibility of financial reports and compliance with rules and regulations are examined so that the internal operation of the organization is smooth, transparent according to the good governance and corporate governance principles and in line with organizational strategy.

Good Governance and Management Structure

The Company adheres to the good corporate governance principle when conducting business. Good management structure and clear division of responsibility and management which enable checks and balances on the basis of fairness, equality and transparency accountability are important characteristics for good corporate governance.

Having fair and transparent management structure supports good corporate governance and helps develop business competitive ability of the Company. The management which bases on honesty, integrity, virtue and ethics contributes to transparent and accountable cooperation between stakeholders and the organization. This enables the organization to operate with higher efficiency, effectiveness and stability as well as sustainable growth. It will add economic value to the operation, build the confidence of shareholders, investors and stakeholders and reflect social responsibility of the organization.

The Board of Directors, thus, established core corporate governance principles of the Company and subsidiary companies in which the Company is holding more than 90% of shares as follows:

• Treat all shareholders and stakeholders equally and fairly.

Dedicate to the Company and perform duties with caution and transparency for the highest benefits of the organization, shareholders, investors and all stakeholders.

The Company has established the Code of Conduct for the Board of Directors and staff as a principle and guideline for the compliance with the corporate governance. In 2023, the Company applied technology in trainings and propagated communications about anti-corruption policies and procedures in the form of training, online employee orientation, and add tools for online review through learning clips, to facilitate employees to be able to learn anytime and anywhere.

• Communicating and reviewing the Code of Conduct - No. of staffs completing the revision test (Cumulative) 1,574 staffs.

Communicating and reviewing the Code of Conduct

The management structure of the Company in 2023 comprises six subcommittees under the organizational structure as follows:

• Corporate Environmental and Social Responsibility Committee

This Committee has been established to provide oversight of the Company and subsidiary companies’ environmental and social responsibility. The focus is on the possible impacts on stakeholders.

The Board of Directors participates in the corporate operation on social and environment responsibility through this Committee. The Board of Directors appoints an appropriate person to take up the position of the Chairman of the Committee. The Chairman of the Committee is responsible for selecting qualified persons from every department of the Company, subsidiary companies and affiliated companies to be committee members. At the end of 2023, the Committee has 24 members including the Chairman of the Committee.

The composition of this Committee is truly an association for sustainability. It is a cooperation between highest-level executives of the Company, subsidiary companies and trade partners in order to consider all environmental, economic, social and good governance risks and impacts as reflected by prominent stakeholders who have influence on the decision-making of the organization. (See more details regarding names of committee members in the 2023 Annual Report (Form 56-1 One Report).)

Good Governance and Management Structure

The Company has publicly announced the Corporate Governance Policy on www.lpn.co.th under “Investor Relation” topic and “Good Corporate Governance” subtopic which allows stakeholders and public an easy access to the policy. The Board of Directors as the highest authority in the organization has to abide by this good practice. It is one of the significant sustainability issue that the highest-level executives must take parts in moving it forward. The principles established by Corporate Governance Policy are as follows:

• Establish Clear Leadership Role and Responsibilities of the Board as the head of the organization who creates sustainable values for the business

• Define Objectives and Goals for Business Sustainability

• Strengthen Board Effectiveness

• Nominate and Develop High-Ranking Executives and Personnel Management

• Nurture Innovation and Responsibility Business

• Strengthen Effective Risk Management and Internal Control

• Ensure Disclosure and Financial Integrity

• Ensure Engagement and Communication with Shareholders

Anti-Corruption

The Company conducts its business according to the human rights principles as stipulated in the Constitution of the Kingdom of Thailand, which mandates "equality, non-discrimination and fair treatment of employees." In the year 2023, there were no complaints regarding human rights violations or corruption within the organization. Details of our operations are as follows:

• Communication and training on anti-corruption and promotion of ethics within the organization

The outcomes of communication and training on anti-corruption and the promotion of ethics within the organization are detailed as follows:

1) Learning and testing knowledge on Personal Data Protection Act and employee ethics

The Company conducted learning and testing sessions on the Personal Data Protection Act and employee ethics once every quarter. The details are as follows:

• In Quarter 1,463 employees participated in knowledge review. 100% of them passed the test.

• In Quarter 2,450 employees participated in knowledge review. 98% of them passed the test.

• In Quarter 3,408 employees participated in knowledge review. 89% of them passed the test.

• In Quarter 4,253 employees participated in knowledge review. 99% of them passed the test.

2) Developing and producing clips to provide knowledge on ethics review and the Personal Data Protection Act (PDPA) in 2023

The development of tools for knowledge review on ethics was facilitated through the Microsoft 365-Engage platform including "Ethics Intensive Review” room, "PDPA Intensive Review” room, and "Knowledge for New Employee” room.

3) The Ethics Mailbox (Mailbox 21)

has been renewed and monitored for complaints throughout the year 2023. There were no complaints received through the Ethics Mailbox in 2023.

4) Investigations are conducted when there are suspicions of a serious breach of discipline by employees

One such case was brought forward by the CEO, prompting the formation of a committee to investigate. No wrongdoing was found. The investigation findings have been reported to the CEO.

• Communication and training on anti-corruption policies and procedures (general staff)

Average Hours of Ethics Training per Person in Q1, Q2 and Q3 Number of employees

Onboarding for new executives

Orientation for new employees

PDPA for sales department

Learning through video clips (times)

Reviewing via Yammer (times)

Completing review questions (people)

• Establish a corruption risk assessment

• Revise anti-corruption measures on a regular basis

• Establish various complaint channels for staff to notify the act of corruption or misconduct as follows

Directly inform the Chief Executive Director or the supervisors.

The Suggestion Box in the office.

Send a message to the Chief Executive Director or the supervisors on WhatsApp. The organizational commitment questionnaire. Submit complaints by post. Inform the Organization Development Section, Human Resources Management Department.

Fair Employment and Diverse Workforce

In 2023, as the COVID-19 pandemic situation began to ease, the Company adheres to the effective and fair recruitment process similar to the previous year, even this would involve more complicated tasks. Employees must pass specific knowledge test for each position and an interview in order to ensure that the organization will recruit personnel who have full qualifications and are suitable for the position according to LPN’s employment guidelines. In 2023, there are new employees in each business line as follows:

Real Estate Development Business

Number of new employees 1,985 persons

Number of resigned employees 1,790 persons

Recruitment of new employees and resignation of existing employees: real estate development business

• By Gender (persons)

• By Age Range (persons)

• By Region (persons)

Service Business

Number of

Recruitment of

• By Gender (persons)

• By Age Range (persons)

• By Region (persons)

Employee Recruitment and Resignation

1) Recruitment of business development personnel

In 2023, 1,985 new employees were recruited, comprising 1,841 females and 144 males.

2) Resignation of business development personnel

In 2023, 1,790 employees resigned, consisting of 1,660 females and 130 males.

Recruitment – Resignation (Business Development Line)

Recruitment and Resignation of Business Development Personnel between 2022 and 2023

3) Recruitment of service personnel

In 2023, 2,556 new employees were recruited, comprising 1,206 females and 1,350 males.

4) Resignation of service personnel

In 2023, 1,683 employees resigned, consisting of 803 females and 880 males.

Recruitment – Resignation (Service Line)

Recruitment and Resignation of Service Personnel between 2022 and 2023

Treatment of staff

It is the Company policy to treat all staff in an equal manner and this extends to staff in the affiliated companies and in the LPN team. Importance is placed on all areas including appropriate remuneration and welfare benefits, occupational safety and health for all and well-being of staff and their family members. Details are as follows:

1. Health care for employees who have a high likelihood or risk of developing occupational diseases

The Company plans and specifies the annual medical check-up period for all employees. Unfortunately, the COVID-19 outbreak has caused the postponement of the annual medical check-up. However, the Company has monitored the health of employees who are at risk of occupational disease. Most of their health are within normal range. In 2023, 14 employees were injured at work. Most of them were minor injuries and there was no work-related fatality.

2. Maternity leave and post-natal leave

The Company policy is to enhance quality of life of staff. The staff’s families are considered an important factor to make staff perform their work happily and efficiently. The Company supports pregnant staff to take a full period of maternity leave according to law, while being remunerated fully.

Table : Maternity Leave and Post-Natal Leave of Development Personnel in 2023

Maternity Leave

Post-Natal Leave

Returning to Work

Resigning after Maternity Leave

Table : Maternity Leave and Post-Natal Leave of Service Personnel in 2023

Maternity Leave

Post-Natal Leave

Returning to Work

after Maternity Leave

3. The Impacts and complaints regarding unfair labor practices: In 2023, there were no complaints.

4. Ratio of standard wages to minimum wages

Ratio of Standard Wages to Minimum Wages

• อัตราส่วนของค่าจ้างมาตราฐานเปรียบเทียบกับค่าแรงขันตํา

The Company pays its employees higher wages than the minimum wage set by the Ministry of Labor, categorized by region. The details of wage payments in 2023 are outlined in Tables.

Table : Comparison of Standard Wages of the Company between 2022 and 2023 (Business Development)

Employees, Levels 1-4 (Bachelor's Degree)

Community Service Staff

Average Wage Rates Overall

Table : Comparison of Standard Wages of the Company between 2022 and 2023 (Service)

Employees, Levels 1-4 (Bachelor's Degree)

Security and Cleaning Staff

Average Wage Rates Overall

The Company pays its employees higher wages (salary) and remuneration than the minimum wage set by the Ministry of Labor, categorized by region. The details of wage payments in 2023 are outlined in Tables.

Table : Comparison of Wages and Remuneration of the Company between 2022 and 2023 (Business Development)

Employees, Levels 1-4 (Bachelor's Degree)

Community service staff

Average Wage Rates Overall

Table : Comparison of Wages and Remuneration of the Company between 2022 and 2023 (Service)

of Wages Paid by the Company Exceeding

Employees, Levels 1-4 (Bachelor's Degree)

Security and cleaning staff Average Wage Rates Overall

5. Welfare Committee in the Workplace

The Company has established a new Health and Safety Working Group, with 7 members appointed for each subsidiary, exceeding the legal requirements. This is effective from 1 May 2023 to 30 April 2025.

6. Organizational workforce divided by gender and age in 2023 separated by business lines

• Proportion of management and employees divided by regions: real estate development business

High-Ranking Executives

Assistant Managing Directors

Department Managers

Division Managers

Staffs

• Proportion of management and employees divided by regions: service business

7. Remuneration, welfare and other benefits in 2023

In 2023, although the Company is worryingly concerned about the pandemic and the economy which consistently affect the overall residential property development business, it continues to focus on policies and welfares. They are important matters affecting livelihood and well-being of the employees. The Company is well aware of the necessity and importance of maintaining several welfare programs that help alleviate the burden of employees during difficult times. The Company has managed the risks and adopted policies that have the least impact on the important staff welfare. Details are as follows.

• Welfare • Other benefits

• Life/Accidental insurance

• Group health insurance

• Grant welfare

• Loan welfare

• Child scholarship

• Provident fund

• Influenza vaccination services

• Bonus

• Annual wage adjustment

• Annual level adjustment

Work-Related Injuries and Illnesses Ratio

Human Rights Performance

The Company recognizes and respects human dignity and equality of individuals without any discrimination. Employees of the Company and its subsidiaries must treat each other and all stakeholders with respect and dignity. The employees, while performing their duties, need to conduct themselves properly in accordance with the Company’s rules and regulations and good traditions without causing any negative impact on the image of the Company.

Furthermore, the Company has realized the importance of labor. It will fairly treat both Thai and immigrant workers in compliance with labor laws, rules, regulations and labor related restriction.

In addition, the Company encourages staff with disability to take part in the Company’s activities. It organizes training courses on human rights for staff and community service staff. There have been aspects of human rights promotion (for staff with disability), including:

Grievance about human right impacts 2023

No grievance

• Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanism

No grievance about labor practices

• Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanism

No grievance about human right impacts

• Communication and training on human rights policy for employees

In 2023, the following activities were carried out:

1) Producing media tools to support employee learning:

Video clips were produced for learning and review of the Personal Data Protection Act (PDPA), and employees had to complete quizzes in 2023.

2) Supporting learning processes and communication for hearing-impaired employees:

Sign language interpreters were utilized for employees with hearing impairments during departmental meetings and in the People Talk, an employee communication activity, held every Friday throughout the year 2023.

The Use of Sign Language Interpreter in People Talk program

3) Promoting employee health care:

Promoting employee health care by arranging for recording and reporting of employees' weight, as well as promoting monthly measurement of blood pressure and blood glucose level. Additionally, there was a physician available for consultation every Thursday.

4) Enhancing the potential of employees with disabilities in various aspects as follows: Measurement of Blood Glucose Level and Blood Pressure

- Sports Promotion: Encouraged employees to participate in the athlete training camp organized by the Sports Authority of Thailand from February to October 2023. Employees competed as national team athletes, winning first place in the lawn bowling competition, team category.

- Educational Support: Encouraged employees with disabilities to further their studies at a higher education level.

Training to Enhance Employee Knowledge and Skills

1) Promoted self-learning behaviors through various company learning channels, including:

• Every Friday People Talk communication activities, where knowledge is shared by CEO, department managers, and knowledgeable employees,

• Knowledge banks in the Microsoft 365-Engage tool within various knowledge rooms,

• Collection of case studies for learning purposes,

• Training sessions and enrollment of employees in knowledge-based courses.

2) Enhanced learning processes:

Every Friday afternoon each department would take turns to share knowledge to all employees, including Sharing Business Knowledge, Sharing Department Knowledge and Sharing Employee's Portfolio.

3) Developed an assessment framework to measure the knowledge levels of all employees on a quarterly basis by categorizing knowledge tests into three groups:

General knowledge, department-specific knowledge, and knowledge related to ethics and regulations.

Personnel Management in the Organization (Development Line)

In 2023, the Company managed and took care of its personnel in the organization as follows:

1) Employee health check-up for 2023

focused on customized health check-up, along with continuous monitoring of health check-up results.

2) Additional benefits were provided in 2023 as follows:

- Remote working - work from home

- Flexible hour

- Workcation leave

- Employees being allowed to dress in modest casual attire for work

- SHE Coffee discounts and complimentary birthday coffee

- HAPPY FRIDAY activity: "Relaxation Massage for Body Comfort" every Friday by LPC

- Club activities with financial support

- Recreational activities fostering interdepartmental relationships

- Providing two electric massage chairs in the Relax Room for relieving fatigue

- Distributing one bottle of nasal spray (COVITRAP) to each employee to prevent the spread of COVID-19 during the Songkran festival

- Providing 745 scholarships for the year 2023 to employees' children, with a sum of 2,980,000 baht

- Organizing seasonal influenza vaccine injections for the year 2023.

- Installing 44 air purifiers on the 36th floor, at various spots throughout the office

- Opening windows during lunch breaks to reduce carbon dioxide levels in the office

3) Caring for and assisting employees with their health needs.

- Providing assistance and care, including arranging a rehabilitation center for community service employees who had strokes, enabling them to return to living with their children in the future.

- Visiting and caring for an employee who had pancreatic cancer, while the Company continued to pay the salary during treatment, to assist with the medical expenses.

- Visiting and providing care for a consultant of the Company who had a herniated disk.

- Campaigning and providing employees with self-care health knowledge through the "Hear Me: Sharing Beneficial Stories" program.

- Conducting online training on the topic of "Health Talk: Tips for Longevity, Preventing NCDs, High Blood Pressure, and High Cholesterol" by Dr.Kanapon Phumratprapin, to raise awareness among employees about the dangers of Non-Communicable Diseases (NCDs).

Example of Health Knowledge Content, 'Hear Me: Sharing Beneficial Stories'

- Providing employees with self-check blood glucose test kits and weighing scales for daily health checks and self-care.

- Conducting health surveillance for employees on 25 October 2023, by checking cholesterol levels, including total cholesterol, LDL cholesterol and triglycerides, of 121 employees whose levels were above normal during the annual health check.

- Organizing Run for Health activities on 2 and 9 December 2023, at Benjasiri Park.

4) The Company's Board of Directors considered approving the payment of performance-related bonuses for 2023 for employees

Atmosphere of Run for Health activities divided into:

- Real Estate Development Business Group at a rate of 1 time the monthly salary, totaling 20 million baht.

- Social Enterprise Business Group at a rate of 1 time the monthly salary, totaling 31.5 million baht.

5) In 2023, employees had an average of 59 training hours per person per year at the L.P.N. Academy.

Supply Chain Management

The Company is confident that having good relationships with trade partners does not only bring about collaborative success but also build a strong collaboration in going through crisis. The fact that the organization and stakeholders, in this case ‘trade partners’, are able to survive the 1997 economic crisis and continue operating their business operation indicates that business operation of the organization can truly create sustainability in the society.

Although strong identity and values of LPN together with concise risk management play a part in getting the Company through the economic crisis, having good trade partners who are cooperative and supportive during tough time is the turning point and has contributed to the Company’s success until now.

For more than 20 years, the “trade partners” have become “alliances” and are turned into “business alliances”. Now they have become “LPN Team” sharing business development and growth and working as if we are a part of each other. Thus, there are collaboration in every process of operation throughout the Company’s supply chain aiming to achieve the highest goal in supply chain management of the organization.

The Company realizes that to build this kind of business’s supply chain collective values and collective success must be create d. Operating profits do not guarantee business’s survival should there be another economic crisis. Creating collaborative responsibilities and tight bonds that allow business alliances to operate their business indicates that the Company can also maintain its business operation and both can achieve sustainable growth together.

The Supply Chain Management Process

The staff of the Company and LPN Team communicate with each other on a regular basis. It is two-way communication via WhatsApp and Microsoft 365 so that all participating parties are able to learn, share ideas and be up-to-date which generate utmost operational efficiency.

COMMIT

ASSESS

LPN finalizes the business plan.

LPN and LPN Team have a meeting to:

• Recognize the plan and establish collaborative goals.

• Listen to each other’s opinion and expectation.

• Identify and consider any impact that may happen while working together.

• Develop a possible risk prevention plan.

ENGAGE MEASURE

Participation of LPN and LPN Team in each project development.

IMPLEMENT

LPN and LPN Team operate in accordance with the established work plan.

LPN and LPN Team organize a monthly meeting.

• Follow-up the work, assess the performances and analyze problems to improve the operation or adjust the operational plan as appropriate. This will help increase the efficiency of the operation in the supply chain.

Sustainable Development Goals

GREEN FINANCIAL MANAGEMENT

The Strategy to Achieve Appropriate Return and Organization Growth

Green Financial Management is the management of finance with the objective of achieving stable and sustainable business growth, operating performance that have appropriate and continuous profitable growth and balanced allocation of profit among all stakeholders. The financial ratio and expenses of the Company and subsidiary companies are properly managed to suit the income target and business plan of the organization. It includes the distribution of the dividend at the rate of no less than 50% of net income to shareholders, the appropriate remuneration for executives and staff as well as the establishment of selling price of condominium units to be cheaper than those of the competitors for the benefit of the customers. The Company has also allocated a budget to promote the quality of environment and society during project construction.

Furthermore, the preparation of the financial statement is transparent and auditable. Documents have been prepared on a quarterly basis to communicate the performance of the Company to the shareholders in order to build their confidence and showcase the importance of the financial discipline and financial risk management.

Accountability Financial Statement

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

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.

3. Disclosure without Hidden Agenda

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.

4. Measurable

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.

6. Risk Management

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

Green Financial Management Standard Checklist of LPN

Financial Management Standard Checklists

1st Standard In terms of goals, determine appropriate returns and growth of the organization.

1.1 Result of the Board of Directors’ consideration on business plan in terms of feasible and tangible operating results based on review of the Management Committee (MC).

1.2 Result of the Board of Directors’ consideration on budgets which are appropriate according to the business plan in terms of incomes and expenses based on review of the Management Committee (MC).

1.3 Determine a date to review and adjust business plan in terms of operating results to suit the situation based on review of the Management Committee (MC) and propose to the Board of Directors for approval.

2nd Standard Generate a balanced return or modest operating profits and continuously on the basis of good corporate governance, as well as distributing returns to all groups of stakeholders.

2.1 Criteria for distribution of annual dividends to shareholders from the Company’s operating results.

2.2 Criteria for distribution of annual bonuses to employees from the Company’s operating results.

2.3 Conditions for entering into business transactions with alliances and trade partners.

2.4 Conditions for entering into financial transactions with financial institutions.

3rd Standard There is effective internal control and good governance regarding internal control and financial risk management.

3.1 Create a system to control as much risk as possible (operation manual).

3.2 Check that the works are in accordance with the operation and evaluation manual.

3.3 Review and develop control system in order to keep up with events and increased risks in each situation.

4th Standard Financial statements and disclosure of reliable financial statement management and tax information, based on transparency and auditability.

4.1 Result of random tax inspection of the Revenue Department.

4.2 Results of auditing financial statements of auditors in accordance with accounting standards. 4.3 Results of reporting and disclosure of information in accordance with the rules and regulations of the Stock Exchange of Thailand and the Office of the Securities and Exchange Commission (SEC).

Green

GREEN FINANCIAL MANAGEMENT OPERATION

The Strategy to Achieve Appropriate Return and

Organization Growth

Profit-Sharing and Balancing Wealth with Stakeholders

Under the framework of Green Financial Management principle, the Company gives emphasis on profit-sharing and balancing wealth with stakeholders in an appropriate proportion to create economic value added which is a part of the country’s economic mobilization as follows.

1. Focusing on providing appropriate returns to trade partners and business alliances in terms of conducting business in both investment and construction processes.

2. Providing appropriate remuneration and welfare to staff and the teams so that they have good quality of life and good welfare.

3. Providing appropriate dividend payment to investors and shareholders.

4. Conducting business with transparency and paying tax to the government for the country’s development.

5. Allocating appropriate budget to community investment to develop a better quality of life for community and society.

Achieving an Appropriate Return and Organization Growth as of 31 December 2021, 2022 and 2023

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 to ensure that it is appropriately conducted. Financial risks are managed for continuous and steady growth and profits are generated from effective operational system. The operational performance is disclosed in detail in the Annual Report of the Company including the main indicators that support the sustainability operation.

A goal to Maintain Appropriate Returns and Sustainable Corporate Growth

Goal setting to maintain the returns and the corporate growth plays a part in determining the direction of business operation so that the corporate can sustain its returns and growth sustainably. This is done through the following financial indicators.

1. Debt to Equity Ratio

The Company maintains its policy that identifies the debt to equity ratio at 1:1. It creates the Company’s discipline and financial strength, reduces the risk of over indebtedness and, at the same time, maintain an appropriate growth rate.

2. Gross Profit Margin

The Company has identified the gross profit margin target that is appropriate with the operation and no less than the gross profit margin of the competitors in the market. The comparison to the competitors in the market is done to indicate the efficiency of the business operation.

3. Dividend per Net Profit Ratio

The Company has identified the target of the earning per share and dividend payment at the proportion of no less than 50% so that shareholders receives appropriate returns. At the same time, the Company is able to maintain its investment money for continuous business expansion by considering the market competition ability for a sustainable growth.

Indicators

1. Debt to Equity Ratio

21.44%

53.61%

The debt to equity ratio or debt ratio is calculated by dividing a company’s total liabilities by its shareholders’ equity. 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 indicates that the company’s major financing is done by its shareholders/own resources more than by creditors which will positively enhance growth and competitiveness in the market.

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 socially and environmentally responsible which is against the policy to create a balance among all stakeholders of the Company.

3. Dividend per Net Profit Ratio

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.

Sustainable Development Goals

GREEN DESIGN CONCEPT

The Environmentally Responsible Design of Products

GREEN Design concept is the environmentally responsible design of products. The Company gives importance to the “Balance” of design and development of project from the process of designing the product and the layout of the project to minimize environmental impact and better suit all living lifestyles.

The Environmentally Responsible Design of Products Green Design Concept

1. Strategic Location

The location must be close to convenient facilities, public transportation system and express ways to reduce environmental impacts from large-scale project development as well as energy usage in transport.

2. LPN Green Design Concept Standard

LPN’s buildings are designed with an aim to generate a holistic approach to performance while creating spaces that are reliable, safe, comfortable and truly responding to residents’ needs. In the designing LPN has followed the LPN Green Design Concept Standard developed from the Green Building Standard of the U.S.A or LEED (Leadership in Energy and Environmental Design) and the Green Building Standard of Thailand or TREES (Thai’s Rating of Energy and Environmental Sustainability). Energy saving, environmental conservation and worthy utilization of resources are taken into consideration.

In addition, the Company has also applied international well-being standards like the WELL building standard in the design so that it can promote the living quality. Residents would, then, have good and sustainable physical and mental health. Main topics of the LPN Green Design Concept Standard are as follows:

2.1

Sustainable Site Development Water Efficiency

The environmental impacts from project development are minimized by selecting the project locations which are highly populated on a main road and near convenient facilities. It must also be close to public transportation system and express ways which will directly help ease the traffic and reduce energy usage.

2.2

LPN opts for water-conserving sanitary ware within the projects according to the Green Label standard. Treated wastewater is used for the irrigation of green space in the project to reduce water usage as well as the discharge of wastewater into public drainage system.

2.3 2.5

LPN’s building design is an energy-efficient design. Having skylights lets in the natural light which will minimize the need for electric lighting. Insulation sheets and tinted glasses are installed to reduce heat transfer from outside which can save air-conditioning electricity. In addition, all LPN buildings must be assessed in accordance with the Building Energy Code of the Ministry of Energy since the design phase. This will ensure that the actual energy consumption can be reduced as set forth.

2.4

Material and Resource

To ensure good quality products, the Company meticulously selects building materials considering from the durability, low maintenance and environmental friendliness. To reduce the use of primary resource, the design of LPN follows the Modular System concept to avoid material cutting and reduce residues. In addition, LPN also promotes the use of materials that contain recycled materials to reduce natural resources consumption. It also has a policy to promote the use of domestically produced products.

For healthy living and a good quality of life in every dimension, LPN gives emphasis on the design of space that promotes the creation of good and pollution-free health, the design of well-ventilated common areas and the installation of air purifier to enhance indoor air quality. Green space and exercising space both outdoors and indoors are provided to encourage residents’ exercising activities. In addition, the universal design principle is used to ensure that everybody in the community can fully and equally benefit from the space. In addition, the focus is on building discipline and culture of living together under the “Livable Home” concept.

3. Real Pleasure of Living

With an intention to deliver the “Real Pleasure of Living”, every inches of LPN projects are designed using the information from our research and development so that the products and services can respond best to the needs of target groups in term of living and lifestyle. Moreover, the Company gives an emphasis to the increase of living value by developing common area and green space into community activity area in accordance with the “Livable Home” concept.

Sustainable Development Goals

GREEN MARKETING MANAGEMENT

The marketing activities that are fair to the customers and competitors

The marketing strategy of the Company 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:

1P 4P 2P 5P 6P 3P

Product Strategy

The Company strives to deliver unique product values both in condominium units and common area to the customers. The product values are developed from knowledge and experiences in project development to accommodate the lifestyle of the residents.

Price Strategy

By managing costs and expenses in all production processes, the selling price of the product is affordable and competitive. 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.

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.

Promotion Strategy

In conducting sales promotion, the Company takes the benefits of customers and the Company into account. The sales conditions are fair and clear. The advertisement is creative with no hidden agenda.

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 regular basis to bring about positive customer experiences and build up sales volume from referral. The net promoter score (NPS) measuring customer loyalty is the guarantee for after-sale services. There are also various channels for submission of complaints and suggestions for service improvement.

Process Strategy

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

Green Marketing Management Standard Checklist of LPN

In 2023, the Company has fulfilled all criteria as outlined in the Green Marketing Management Standard Checklists.

The Company has established Green Management Standard Checklist to be used as a standard for fair operation of marketing communication in response to the Green Marketing Management Strategy of the organization. The checklist is a voluntary code of ethics that the organization establishes by itself and use it for internal evaluation to ensure that marketing activities or ma rketing communication are done in a fair manner in order to create the best experience for customers and maintain social responsibility at the same time.

The 7P principle comprising of Product, Price, Place, Promotion, People, Process and Physical is used to identify each practice As a result, there shall be a sustainable marketing management standard, straightforward and unexaggerated advertisement of products and services and advertising messages that do not take advantages of consumers nor lead to misunderstanding of essential issues.

Green Marketing Management Standard Checklist

• Hand over product values as promised.

• Inspect the products prior to each handover.

• Provide an insurance and a post-handover service.

• Price and payment condition are appropriate and match the target groups.

• Profits are appropriate and match the target groups.

• Sales office is ready to serve customers as specified.

Promotion

• Launch clear and transparent advertisement and sales promotion with no hidden agenda and no attack on competitors.

• Promote home ownership with “Baan Sarn Fun” project.

Product Price Place People Process

• Establish Human Touchpoints.

• Train and educate the staff and include the Code of Conduct trainings.

• Establish a clear and accurate communication standard for salesperson to communicate with customers.

• Do not violate Right to Privacy.

• Sales and purchase condition must be in line with the regulation of the Office of Consumer Protection Board (OCPB).

• All types of sales documents must be clear, transparent, unambiguous, no hidden agenda, and verifiable.

• Train salespersons to become product and financial consultant.

• Give justice to customers in case of a loan rejection or a cancellation of purchase agreement out of necessity and provide them refunds.

• Provide complaint channels for customers to report any problem regarding products or services.

Physical Evidence

• Hand over “Livable” as advertised i.e. having Co-Dining or Co-Living area.

GREEN MARKETING MANAGEMENT OPERATION

The marketing activities that are fair to the customers and competitors

Customer Experience Management through Touch Point

Customer Experience Management through Touch Point is provided at 3 periods: before purchase, during purchase, and after purchase. LPN gives importance to the most important stakeholder of the organization which is the customer. The emphasis is put on creating good customer experience, analyzing, developing and matching customer service with customer life cycle and improving customer satisfaction to build brand loyalty. This is a part of our sustainable development goals.

Before a purchase

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

During a purchase

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

Channels for Building Customer Experience

After a purchase

After the condominium unit is handed over and the customers move in, their quality of life and safety are taken care of and managed under the concept of “Livable Home”.

The Company creates customer experiences through both human and non-human touch points. The corporate touch points are identified as follows.

Channels for Receiving Customer Feedback

Customers are given the opportunity to express their opinions on product improvement and development, including having channels for receiving complaints and suggestions to solve problems for customers. LPN has established complaint management process to handle complaints via 5 different channels, both online and offline, to facilitate customers and allow them to conveniently choose the communication channel that suits their lifestyle.

Call Center

Tel 02-689-6888, every day from 8.30-19.00 hrs.

From the above channels, the Company received a total of 432 feedbacks for development. They are categorized as follows:

Complaint

Compliment

Suggestion

Note: From June 2023 onwards, only feedbacks for development by LPN were counted.

• Customers’ Feedback 2019-2023 (case)

In 2023, although the Company received slightly fewer complaints compared to the previous year, the Company still pays attention to customer feedbacks in all matters which are very important information for improvement of the Company’s services.

Complaint Management Process

The Company compiles and categorizes complaints so that the information can be used in the operational development and improvement, particularly those involve the delivery of product and service values to customers. The complaints are categorized into two groups i.e. Product Value and Service Value. Each step of feedback and complaint management process is as follows:

- LPN Care, Website, Call Center, Line, Facebook

- Direct call to staff

- External website e.g. pantip.com

- Executives

Inform the related department within one day and record it in the complaint system

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

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

Related department reports the outcome of the action taken to the Customer Experience Management Department and executives

Contact the customer to follow up on the issue

Prepare a monthly report to be submitted to the executives and related department File the report and share interesting case studies with other staff in the knowledge sharing session

Customer Satisfaction Survey

Service Evaluation system was used to evaluate the level of satisfaction with services and the Net Promotor Score (NPS) this year. Customer satisfaction will be evaluated right after services are rendered. The system will report the evaluation result if it failed to reach the Company’s standard. The Company will contact the customers to get more details about the unsatisfied services or the customers’ needs for further improvement.

• Service Satisfaction 94%

In 2023, the overall customers’ service satisfaction was 94 percent, which was above the benchmark (85 percent). The satisfaction was measured directly from customers through the service evaluation system and inquiry calls (data as of 31st December 2023).

• Net Promoter Score: NPS 99%

The Net Promoter Score was measured directly from 2 groups of customers, namely, customers who visit - subscribe to purchase condominium unit and the condominium juristic person committee through the service evaluation system to reflect their loyalty to recommend or tell others about the Company’s products and services. In 2023, the Net Promoter Score was 99 percent, which was higher than the specified benchmark (40 percent).

• Environmental impact Complaints

In 2023, there were no environmental impact complaints.

Complaint Management Guideline for Sustainability

In addition to handling complaints or feedbacks from customers, the Company is also looking for ways to prevent the same complaints from recurring by using complaints as an example case for relevant employees.

1 Hour

Respond within an hour of receiving the complaint.

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

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

GREEN CONSTRUCTION PROCESS

The Management of Environmental and Social Impacts from Construction Process 5

Sustainable Development Goals

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 desig n 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:

LPN Construction Management Strategy

Quality of Product Safety of Workers and Participants

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.

Cost Control and Management

The costs are carefully controlled and managed not to exceed the estimated amount. Both direct and indirect costs and operation expenses are managed to maintain the benefits of all stakeholders.

Speed of Delivery

It is to ensure that the construction and operational process are completed in a timely manner to reduce the risk of project delay.

Environmental Responsibility

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

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 Company also stresses the importance of occupational health and good quality of life of construction workers.

People Management

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

GREEN CONSTRUCTION PROCESS OPERATION

The Management of Environmental and Social Impacts from Construction Process

The LPN Green Construction Process Standard has evolved continuously since 2016. It was established in collaboration with business alliances in the construction sector. It aims at preventing impacts from construction activities. This standard has been developed from international environmentally friendly construction criteria such as the US LEED Rating System, TREES Green Building Rating System of the Thai Green Building Institute including pollution control standards from the Pollution Control Department, Ministry of Natural Resources and Environment so that the LPN’s standard can cover all dimensions of operations.

The standard for condominium projects is divided into 7 sections in accordance with the project development steps from the pre-construction work to the handover and the welfare of workers’ camps. The standard comprises of 71 operations and the goal is to achieve more than 90% of those in every under-construction projects.

The Green Construction Process Standards for residential projects is still under development. In the pilot version of the standard, there are 4 sections as follows:

1. Studying and surveying neighboring buildings and doing pre-construction work including general work, 2. Construction of roads, bridges, dams and internal wastewater management, 3. Construction of model houses and common buildings, 4. House construction.

There are 47 items in total. They will be tested in residential construction projects. Data is collected for standard improvement and further goal setting. It is scheduled to be officially used in 2023.

Construction Pollution Prevention

All construction activities taking place within the LPN project must strictly comply with the established construction standard s. There will be measurements, data collection and processing at every step of the operation to prevent pollution or damage to the environment and neighbors. Such standards will cover 4 types of pollution control as follows:

Water Pollution

LPN emphasizes on managing wastewater that comes from construction activities. Temporary drainage ditches are built to prevent water in the construction site from flowing out to neighboring areas. There are sedimentation ponds and treatment ponds within the construction site. All wastewater must be treated to a standard before being released to the public system.

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

Air Pollution

LPN has strict operational measures to prevent dust and air pollution no matter it is prevention of soil erosion, restriction of areas for activities that cause dust, covering buildings with canvases during construction or water springling to reduce dust emissions. The air quality within the construction project will be measured by experts every month to ensure that the amount of dust does not exceed the set standards.

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

Noise and Vibration Pollution

During construction, noise and vibration created by several activities may disturb neighbors. Therefore, LPN has taken measures to control and prevent noise and vibration in all activities that may pose such risks, such as piling, using noisy equipment or moving large construction materials. The measurement tool will be used and the results will be recorded at all times.

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.

Construction Waste Pollution

The problem from construction waste is another issue that can have a wide impact. Moreover it is the cause of other pollution. LPN, therefore, has established measures to manage waste originated by project development. The waste generated from construction activities will be segregated and disposed of according to the type of waste, e.g., general waste, hazardous waste, and recyclable waste.

Safety and Living Quality of Construction Workers

In addition to managing the construction process to deliver quality products to customers, the Company also gives importance to the care and the promotion of we are of construction workers who are the work force behind the completion of the construction process. We believe that construction workers should have the same quality of life as employees working in other departments of the organization.

The Company also focuses on building good quality of life for all staffs from personal hygienic level by organizing various projects, including annual physical examination, provide first aid training and training on appropriate use of generic drugs, vaccination against diphtheria, tetanus and rubella, random drug tests, development of LPN Green Construction Camp on continuous basis to ensure the well-being and welfare of the workers in construction camp, to have an environment that is suitable, hygienic and safe for living. In addition, the Company has also built a child care center which is a child-specific safety area where parents can leave their children while they go to work. The center will arrange someone to look after and teach the children during that time as well as organize other activities to boost employees’ morale at the workplace.

The Guideline for the Care for Neighboring Houses to Minimize the Impacts from Construction

Besides dealing with impacts of the construction, it is the Company’s policy to build relationship with neighboring communities. Coordinating with community leaders, the Company’s officers will visit and survey the public space of the communities and related agencies surrounding the projects before construction. The priority is given to the areas that are adjacent to the project or the sensitive zones which may be affected more than other areas. The neighbors will be asked for their opinion on environmental problems, possible impacts of the construction, concerns relating to the construction as well as their environmental and social activities that need support. The Company will help coordinating and taking action in order to build good relationship with them and minimize subsequent complaints

Survey the environment around the project

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

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.

Establish pollution prevention measures

Put up canvas for dust and noise prevention, clear up the site, build temporary houses for workers, etc.

Monitor the environment and follow up the progress

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

Take action to solve the problem

Should there be any impacts or damages caused by the construction, they must be resolved immediately.

Compile the information

6.1 Feelings of neighboring residents

6.2 Problems and solutions

6.3 Points for improvement and outcome

Assess the performace

Survey the environment Compile preliminary information

Build relationship with neighboring residents

Establish pollution prevention measures

Implement the measures

Monitor the surrounding environment and communities

Problems Found No Problems Found

Take action to solve the problem

Assess the performance

Green Construction Process Standard Checklist of LPN

1. Green Construction Process Standard Checklists

Construction activities will be monitored according to the Green Construction Process Standard Checklists, developed to prevent and minimize environmental impacts from construction activities and ensure that all projects adhere to the same quality standards. The assessment results of the operations are detailed as follows:

Results of Green Construction Process Standard Checklists Assessment

Project Result

Residence 168 Ratchaphruek

Maison 168 Muangthong

Lumpini Place Chaengwattana - Pakkret Station

Lumpini Ville Charan - Fai Chai

Lumpini Condo Town Ekachai 48

EARN Bang Wa

Venue 24 Ratchaphruek

PUNN

2. Training on Basic Knowledge for Construction Workers

Accidents can occur at any time in construction work. Therefore, having basic knowledge, whether it be in providing assistance or administering initial first aid, and working safely, is crucial for both employees and construction workers.

2.1 Basic first aid and use of household remedies training is provided to employees and construction workers to ensure they have the knowledge to provide timely assistance. This training focuses on developing skills in the proper use of common household medications. It demonstrates how to assist injured individuals in various scenarios such as scalding by hot water, being bitten by poisonous animals, or loss of consciousness. In 2023, the training programs were conducted for construction workers in two projects namely,

1) Lumpini Ville Charan - Fai Chai,

2) Lumpini Condo Town Ekachai 48.

2.2 Training and fire drills in construction worker accommodation are conducted to equip workers with the skills to extinguish fires, to use fire extinguishers during emergencies and to take correct actions in a fire.

2.3 Knowledge of work practices training is provided to ensure that employees and workers have the knowledge to perform their tasks safely in construction areas.

Atmosphere of First Aid and Household Remedy Training at Lumpini Ville Charan - Fai Chai Project

Atmosphere of Fire Drills in Construction Workers' Accommodation

Atmosphere of Training on Work Practices in Construction Areas

3. Taking Care of the Quality of Life of Construction Workers

The LPN Team provides health check-ups for construction workers, along with lunch, to boost morale and motivation among the workers.

4. Welcoming Government Officials

The Lumpini Ville Charan - Fai Chai Project cooperated with government agencies from Bangkok Metropolitan Administration and officials from the Bangkok Noi District Office who conducted inspection visits and measured air quality, particularly PM 2.5 dust particles. The results of the measurements met the legal standard. Furthermore, police officers and officials from the Ministry of Labor visited to conduct inspections on labor practices, which followed legal requirements.

Atmosphere of Health Check-ups and Lunch Provision for Construction Workers

Atmosphere of Government Agency Visits to the Lumpini Ville Charan - Fai Chai Project

Waste Management in Construction Sites

Waste at construction sites can be divided into two categories i.e., construction waste and household waste of construction workers. Each category needs to be managed differently. Household waste created by construction workers or general waste will be collected and sent to related government agency for disposal. Regarding construction waste, even though the LPN projects have been designed using modular system to reduce wastage of material to the minimum since the beginning of the process, it is still unavoidable to generate scrap or construction waste. The Company has a specific waste management procedure which includes segregation of waste by type, control of dumping areas, measures for material relocation from the project front as well as a policy to reuse some construction materials in next projects.

Type of Waste and Management

Construction Waste

Sustainable Development Goals

GREEN COMMUNITY MANAGEMENT

Management of Quality of Life of Residents after Handover

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 35 years, the Company has created and handed over a “home” to members of more than 130,000 “Lumpini” families and taken care of the environment and quality of life of the residents and neighboring communities via “Livable Home” strategy. The Company does not only ensure the safety and standard of the equipment but also the safety of the community, the happiness of the residents as well as environmental awareness of the residents on a regularly basis in accordance with the F-B-L-E-S+P guideline. It is developed from extensive community management experiences with the aim to deliver a great quality of life, environment and society to the residents. The details are as follows:

FFacility Management

It is to maintain the efficiency of common properties including facility usage management during the Covid 19 outbreak. There must be cleanliness standards and social distancing while using, no matter they are architectural structure, convenient facilities or 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.

BBudgeting Management

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

L ELife Quality Management

It is the management of the quality of life of residents encouraging them to comply with the regulations of condominium and single home, ensuring their comfort and convenience and issuing COVID-19 prevention measures in the residential area. This is to entail the harmony of living together happily and “Togetherness, Care and Share” culture. Various activities are organized to build good relationship within the family and for community development among “Lumpini” members.

Environment Management

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

SSecurity & Safety Management

The security and safety management starts from designing the project plan, inspecting and maintaining the standard of equipment system such as closed-circuit television, alarm system and communication system and training security officers regularly, including COVID-19 prevention training and hygiene project monitoring. Participation of community members and related government agency is also promoted to enhance the utmost security of the members of the community.

PPeople Management

The Company gives importance to the management of related persons in community management work whether it be Community Management Department, Juristic Persons Committee or the residents to ensure their cooperation and satisfaction. The problems and conflicts of residents that may affect the community are also managed. The focus is on attitude and skills of staff. Communication approaches are established to enhance knowledge and understanding on community management of Juristic Persons Committee especially the Chairman so that they are on the same page. The following components are important in building sustainable communities.

• 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.

GREEN COMMUNITY MANAGEMENT OPERATION

Management of Quality of Life of Residents after Handover

The Green Community Management Strategy is established in response to “Livable Community” concept of the Company. Two important groups of stakeholders are customers and neighboring communities. We need to consider our customers as our family members and ensure that they, together with neighboring communities, have a good quality of life in accordance with the FBLES+P guideline which includes Facility, Budgeting, Life Quality, Environment, Security and Safety Management and People Management. The performance in 2023 are as follows:

Juristic Persons:

Number of Communities:

Number of Children and Youth:

Areas: (sq.m.)

Families:

Electricity Management

1) Electricity usage in M&E work and common areas of condominium buildings

(1) Lumpini Project: The average electricity usage was 60,459 megawatts, costing an average of 285.9 million baht per year. Its greenhouse gas emissions were 35,187 tons of carbon dioxide equivalent (cumulative data from January to December 2023).

(2) Non-Lumpini Projects: These projects are divided into two categories. Projects under contracts with juristic persons (B2C) had an average electricity usage of 19,115 megawatts, costing an average of 90.4 million baht per year, and emitting 11,127 metric tons of carbon dioxide equivalent greenhouse gases. Projects undertaken with entrepreneurs (B2B) had an average electricity usage of 13,571 kilowatt-hours, costing an average of 64.1 million baht per year, and emitting 7,900 metric tons of carbon dioxide equivalent greenhouse gases (cumulative data from January to December 2023).

2) Electricity usage reduction

The electricity consumption in 2023 increased by 10.36% compared to 2022. (data calculated from projects aged 3 to 8 years). This increase is due to all projects implementing applicable electricity-saving measures, such as replacing light bulbs with LED bulbs, adjusting wastewater treatment systems, and turning off electricity in common areas for 1 hour every Saturday of the 3rd and 4th weeks of the month.

in Lumpini Community

Water Management in Lumpini Community

1) Water usage

In 2023, the volume of water usage was 12,000,174 cubic meters per year, increasing by 14.22% compared to 2022.

2) Wastewater treatment of the project

Wastewater of 149 juristic persons was treated in the on-site wastewater treatment system. Wastewater of 47 juristic persons was treated in external treatment services. 0.18% of the treated wastewater was reused while the remaining 99.82% was discharged into the public drainage system. Qualified

Waste Management in Lumpini Community

Waste Management in Lumpini Community was categorized into four types: food waste, general waste, recyclable waste, and hazardous waste. Separate waste containers with clear signage indicating the different types of waste were installed at various points. Data collection on waste quantities showed that the segregation of recyclable waste from other types of general waste increased by 7.46% because in 2023 LPP adjusted its waste management approach by segregating waste in collaboration with Recycle Day.

Proportion of Waste Generated

/ kitchen waste Recycleable waste Hazardous waste

Proportion (%) of Segregated Waste by Type, Comparing between 2022 and 2023

Waste disposal is equivalent to emitting 1,000 TonCO2 per month. (Calculated by the formula: amount of waste in kilograms x 1.14 general waste + paper)

Waste Management System

Maids

Segregate waste

Recyclable

Waste Segregation in Collaboration with Recycle Day

Currently, LPP manages a total of 273 condominiums, categorized into 4 types: Lumpini projects, non-Lumpini projects, village-type projects, and other building types. In 2023, LPP will adjust its waste management approach to be more comprehensive following the proposed policy approved by the Company's Board of Directors. The waste will be managed from its source to its final destination. The initial implementation will begin with residential condominium projects managed by the Lumpini group. According to the survey, it was found that there are currently 165 projects out of 234 that segregate recyclable waste, accounting for 70% of all projects with waste segregation (all Lumpini projects segregate recyclable waste). On average, waste was sold twice a month. Waste from 135 projects was sold to individual recyclable waste buyers (Saleng). Waste from 30 projects was sold to companies that purchase through the application system.

Information collected on waste management problems occurred from selling waste to individual recyclable waste buyers (Saleng), showed that there were issues regarding orderliness and cleanliness in the collection and transportation processes, as well as the outfits of the collectors. Additionally, there was a lack of reference prices for daily transactions, and sales reports could not be verified immediately and concretely. There were also limitations in transportation in terms of frequency and volume. Therefore, in order to achieve the goal of integrated waste management for carbon footprint reduction, we held a joint meeting with relevant management teams (LPP and LPC SE) and the waste buyer and transporter company (Recycle Day Co., Ltd.), which LPP had previously used the service, to expedite problem-solving and enhance efficiency in managing recyclable waste within the project.

Five Criteria for selecting prototype projects to concretely develop recycling waste segregation practices that align with environmental conservation policies of the management to reduce greenhouse gas emissions, as well as promote a waste segregation culture and enhance the project's positive image are shown in Table

Committee supports waste segregation approach.

No. of condominium units in the projects (2 projects per size)

Percentage of occupied units

Frequency of projects’ recyclable waste collection

Projects with cleaning services

- Opportunities for learning, promoting, and convincing residents to participate in the activity

- Prototypes of each size to be able to scale up and extend to projects of similar size after the prototype projects have been tested according to the process.

- an appropriate amount of waste generated by residences

- Basic collection methods and processes are in place.

- There are principles, processes, and policies for segregation from the organization, enabling quick learning and scalability.

In 2023, 30 projects participated in the activity with Recycle Day, accounting for 12.82% of all projects with waste segregation. This contributed to a total collected waste quantity of 10,671,609.73 kilograms. Among these, recyclable waste amounted to 1,438,644.95 kilograms, constituting 13.48%. The most commonly found recyclables were cardboard, accounting for 39.50%, followed by PET plastic bottles at 29.63%, and glass bottles at 23.70% of all recyclable waste.

This reduced greenhouse gas emissions by 2,887,239.59 kilograms of carbon dioxide equivalent which was equivalent to planting 304,940 trees.

Activity to Promote Online Loy Krathong

This reduced greenhouse gas emissions by 2,887,239.59 kilograms of carbon dioxide equivalent which was equivalent to planting

304,940 trees.

This activity was organized to conserve water sources and preserve the environment in accordance with the organization's policy. There were 222 employees participating in the activity, accounting for 12% of the total service staff in the organization. The total budget for this activity was 1,836 baht, equivalent to 8.3 baht per person.

OUT PROCESS 03

OUT PROCESS

ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

Blood Donation Project

In 2023, the Company procured and delivered reserve blood to the National Blood Center, with a target to procure a volume of reserve blood greater than or equal to 1.75 million cc. As a result, a total cumulative reserve blood volume of 1,960,300 cc was obtained, representing 112% (cumulative data from January to December 2023). This marked a 23% increase compared to 2022. During 2023, there were a total of 21 blood donation units in the Lumpini community as follows:

1. Lumpini Tower (LUM-T)

2. Lumpini Sukhumvit 77 (L-SK77)

3. Lumpini Condotown Ramindra - Nawamin (LC-RN)

4. Lumpini Group Ramindra - Laksi (RL)

5. Lumpini Condotown Bodindecha - Ramkamhaeng (LC-BR)

6. P.S.T. City Home (CTH)

7. Lumpini Megacity Bangna (LM-BN)

8. Lumpini Ville Chaengwatthana - Pakkret (LV-CP)

9. Lumpini Park Nawamin - Si Burapha (LPark-NS)

10. Lumpini Park Pinklao (LPark-PK)

11. Lumpini Township Rangsit - Klong 1 (LTS-RK1)

• Graph Illustrating the Blood Volume (cc) in 2023

12. Lumpini Place Ratchayothin (LP-RYT)

13. Lumpini Park Riverside - Rama 3 (LPark-RS RM3)

14. Lumpini Condotown Romklao-Suvarnabhumi (LC-RS)

15. Lumpini Ville Onnut - Pattanakarn (LV-OP)

16. Lumpini Ville Lasalle-Bearing (LV-LB)

17. Lumpini Mixx Thepharak - Srinagarindra (LX-TS)

18. Lumpini Place UD - Posri (LP-UP)

19. The Politan Rive (Sanam Bin Nam)

20. The Metropolis

21. IDEO O2

Furthermore, the Company has sponsored the production of promotional t-shirts for the project, amounting to 200,000 baht, on World Blood Donor Day, to be distributed to blood donors annually.

Supporting Social and Environmental Activities

The Company supported social and environmental activities of external organizations, especially communities, temples, schools, and other external agencies, including various public spaces. It helped develop the areas, improve the environment, and give donations to activities that have continuously been beneficial to society. In 2023, the Company spent 109,630 baht in total (from the budget of the Social and Environmental Management Department only) in supporting social and environmental activities. The supported activities included:

1. Sponsoring educational equipment for Wat Pho Riang School: baht

2. Children's Day event at Wat Pho Riang community: baht

3. Children’s Day event at Sam-In community: baht

4. Sponsoring Children’s Day event at Bangrak District Office: baht

5. Sponsoring educational equipment for Ban Maeloui School: baht

6. Donating to Ruamkatanyu Foundation: baht

7. Sponsoring automatic water pumps for the Bangkok Noi Police Station: baht

8. Sponsoring bookshelves along with books for the Children's Discovery Museum Bangkok 1 (Chatuchak): baht

the Company spent 109,630 baht in total (from the budget of the Social and Environmental Management Department only) in supporting social and environmental activities.

AS PROCESS 04

ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

Sustainable Development Goals

Environmental and Social Activities As Process

In term of environmental and social responsibility As Process, LPN has established a special Corporate for Environment and Social Responsibility (CESR-As Process), namely LPC Social Enterprise Co., Ltd. It is formally certified by Ministry of Social Development and Human Security. The objective is to help enhancing the quality of life of underprivileged women following a social enterprise concept.

Apart from the operation as a social enterprise, L.P.N. Academy is also founded particularly for staff competency development. It has an ongoing performance in the previous year.

LPC Social Enterprise AS PROCESS

The real estate development business of LPN involves various types of services especially cleaning services. Most of the employees in this company group are women with low income, families to feed, and education lower than elementary level. Thus, importance is given to this group of stakeholders. The Company established Lumpini Property Service and Care Co., Ltd. to take care of this group of employees. It has been transformed to LPC Social Enterprise Co., Ltd. in order to provide an opportunity for underprivileged women in a sustainable manner.

LPC Social Enterprise Co., Ltd. has been established in 2011 as a social enterprise. It is an organization designed to help enhancing the quality of life of underprivileged women. It provides an opportunity for the ‘underprivileged women’ to work and support themselves with dignity.

The Company has defined ‘Underprivileged Women’ as follows:

1. Having low level of education (illiterate or elementary level).

2. Being a single mother.

3. Being exploited by former employers.

4. Being an elderly person (retired).

5. Being a person with disability (holding a disability card).

1. Community Service Staff Recruitment

In 2023, there were 2,694 new community service staff. 1,680 of them met the criteria for underprivileged, accounting for 62%, and 1,014 of them did not meet the criteria for underprivileged, accounting for 38%.

Proportion of Community Service Staff Recruitment by Quarter Compared to 2022

2. Promoting Volunteerism

They are public service activities involving cleaning various areas and facilities such as public spaces, bus stops, overpasses, religious places, and government offices. In 2023, there were 2,841 activities conducted in public places (cumulative data from January to December 2023).

3. Promotion of Good Deeds

Community service staff collected lost property and provided assistance to the residents a total of 141 times (an increase of 42% compared to 2022) (cumulative data from January to December 2023). The Company regularly shows appreciation to staff who do good deeds through the Line @ LPC Friend platform every month, to foster recognition and a sense of pride in their doing good deeds.

4. Education Promotion

4.1 Promoting education for community service staff

Education for community service staff is divided into 5 levels, as detailed in Table.

Table : Details of Education Promotion for Community Service Staff in 2023 compared to 2022

Promoting Education for Community Service Staff 2022 2023 Notes Increase (Decrease) %

1. Preschool

2. Primary School 3. Middle School 4. High School 5. High Vocational School

Three staff resigned.

1. Three staff graduated and furthered their studies in high school.

2. Three new students

3. Two staff graduated but didn’t furthered their studies.

1. One graduated.

2. One didn’t further their studies.

3. Three new students

Two staff resigned.

4.1 Supporting the education of community service staff’s children

The Company provided 630 scholarships to children of community service staff (valued at 4,000 baht each), amounting to a total value of 2,520,000 baht. These scholarships are awarded to community service staff who have been employed for at least 1 year, with a maximum of 2 scholarships per staff member. Additionally, there were 84 scholarships awarded to children of staff who excel academically. Scholarships, valued at 5,000 baht each, are awarded at the high school, vocational, and high vocational levels. Scholarships, valued at 10,000 baht each, are awarded at the bachelor's degree level. The total amount is 575,000 baht.

5. Encouraging Financial Discipline

Atmosphere of the 2023 Scholarship Award Ceremony for Children of Employees Excelling Academically

“I Love Saving” project encourages community service staff to save money. When staff members complete 12 months of saving, the Company will contribute an additional 600 baht per year, totaling 73,200 baht. A total of 122 staff are participating in the project.

6. Promoting Good Health

A hundred percent of eligible community service staff attended the annual health check-ups arranged for community service staff who have been employed for at least 1 year. Additionally, there was a flu vaccination program, with 96% of community service staff receiving vaccinations, while the remaining 4% did not receive vaccinations due to illness, pregnancy, or resignation.

7. Promoting Income Generation

Generating additional income for community service staff

LPN organizes relaxation massage sessions for employees every Friday. LPC has, therefore, arranged for community service staff who have received training in Thai massage to provide massage services to gain additional income. Participants will earn an average income of 800 baht per person per day.

The supplementary vocational training program "Thai Massage" aimed at promoting an extra job among community service staff. There were 7 participants in 2023. The training cost was 3,900 baht per person. Trainees received a vocational certificate in November 2023 and were able to apply their skills in supplementary professions. From the start of the program until present, a total of 61 staff members have completed this training course. Out of these, 18 staff members have utilized the acquired knowledge and skills to pursue side-gigs, with an average monthly income ranging from 1,000 to 2,000 baht per person.

Certificates for Employees who Completed the Thai Massage Course (150 Hours)

Atmosphere of the 2023 Annual Health Check-up

Atmosphere at the Relaxation Massage Booth

7.2 The supplementary vocational training program "Thai Massage"

7.1

8. Creating Opportunities and Developing Dignity

Certificates were granted to 170 community service staff upon completion of the "Service Community Management Training Course (SCMTC) " to prepare them for leadership roles.

9. Creating Happiness among Employees

9.1 A ceremony to present long service awards

A ceremony to present long service awards to 146 community service staff who have completed 10, 15, and 20 years of service.

9.3 The annual outing activity

The annual outing activity for 250 community service supervisors and “Jaew” coordinators in Kanchanaburi province.

9.2 The "Senior Management Meeting with Community Service

Supervisors' Activity aims to express gratitude to employees who have contributed their physical and mental efforts to their work to the fullest extent of their abilities. They delivered high-quality services to customers, resulting in a satisfaction score of 96%, and achieving and exceeding set revenue targets. Additionally, the meeting was to disseminate the 2024 organizational policies.

9.4 The "Same Rice Pot" project

The "Same Rice Pot" project provides each community service staff in each project with 1 bag of rice, weighing 3 kilograms per bag, for communal cooking and sharing. A total of 5,510 bags were distributed, amounting to a total cost of 418,760 baht.

The 2023 Long Service Award Ceremony

Atmosphere of Outing Activity in Kanchanaburi

Presentation of Jasmine Rice to Community Service Staff

Atmosphere of "Senior Management Meeting with Community Service Supervisors' Activity"

9.5 The Company gave New Year gift sets

The Company gave 2,858 New Year gift sets (consumable items), with a total value of 394,100 baht, to all community service staff members at the community service supervisors’ meeting.

9.6 DIY Activity for Community Service Staff

DIY Activity for Community Service Staff involved repurposing old uniforms into usable items such as bags, pillowcases, pillows, tissue box covers, and sportswear. The awards were given to recipients in two categories. In the team category, five awards were presented (out of 23 teams), and in the individual category, five awards were presented (out of 11 individuals).

10. Evaluation of Happiness of Community Service Staff (evaluated twice a year)

is divided into 6 aspects as follows:

(1) Work aspect: Appropriateness of tasks and timely completion of work each day.

(2) Workplace aspect: Atmosphere, convenience, and safety at work.

(3) Organizational aspect: Fairness, care, and confidence in the organization's stability.

(4) Compensation aspect: Wages, benefits, days off, and leave.

(5) Opportunity aspect: Career growth and knowledge enhancement.

(6) People aspect: Supervisors, colleagues, and management.

The overall score from the evaluation of community service staff's happiness was 96%, which increased by 5% compared to 2022.

The overall score from the evaluation of community service staff's happiness was

Atmosphere of Community Service Staff Receiving New Year's Gift Sets

Atmosphere of the DIY Competition to Repurpose Old Uniforms of Employees into Usable Items

11. Evaluation of the Quality of Life of Community Service Staff (evaluated

once per year)

is divided into 4 aspects as follows: (1) Financial Aspect (2) Education Aspect (3) Health Aspect (4) Livelihood Aspect

The evaluation result of the quality of life showed that 98% of employees had better quality of life, which increased by 2% compared to 2022. Additionally, after working with LPC, the quality-of-life score improved by over 50%.

Evaluation Results of the Quality of Life

98% Improved Comparing between 2022 and 2023

Years of service of staff whose quality of life

Comparing between 2022 and 2023

Age range of staff whose quality of life improved < 50%

12. Promoting Products and Services of the Enterprise Groups within the Value Chain of LPC

by purchasing brooms from the "Association for Parents of Person with Intelligence Disability of Thailand" in Sa Kaeo Province, totaling 150,000 baht.

Atmosphere of the Field Visit to the Enterprise on 18 December 2023

13. Environmental Promotion in the Workplace

Production of microorganism liquid for internal use in 2023 decreased by 36% compared to 2022.

Examples of Microorganism Liquid Production in Various Projects

Social Enterprise

Standard Checklist of LPN

Social Enterprise Standard Checklist of LPN

LPC’s not-for-profit operations have been focused on helping societies for many years. Thus, LPC has created Social Enterprise Standard Checklists (22 lists) to increase the efficiency of the operations. Social Enterprise Standard Checklists are divided into 2 categories as follows:

Category 1

Qualifications of “Social Enterprise” which consist of 5 sub-categories as follows:

1) Social objectives identification (3 items)

2) Major income (1 item)

3) Fair employment system and policy (4 items)

4) Social-friendly operational process (3 items)

5) Profit management (3 items)

Category 2

Responsibility for the impact on the stakeholders of the social enterprise which consists of 1 subcategory, namely the quality of life of community service staff (8 items)

Summary of Performance

3. No dividend paid to shareholders 5. Recruitment of underprivileged women from surrounding communities and provincial areas

6. Paying a higher wage than required by law (Minimum wage: 388 baht) 7. Providing more welfare benefits than required by law (Two welfare benefits as required by law are the minimum wage and the compensation fund of the Social Security Office.)

8. Putting happiness before profits

Delivering quality services according to the set standard

14. Determining proper profits (before additional welfare, bonuses and allowance)

15. Providing educational support for staff and children of staff to create educational opportunities.

16. Providing emergency assist funds (a zero-interest loan)

17. Creating proper jobs for retired elderlies

18. Procuring consumer goods and providing to staff at low cost

19. Providing health care plan to staff

20. Planning to develop signature courses

21.

LPN Academy

Under the environmental and social responsibilities, LPN also places importance on continuous personnel development and builds on people excellence so that staff can apply their knowledge and skills to create value for themselves and the organization. In addition to develop personnel of the organization, LPN Academy also has a policy to share knowledge and experience to external organization as well.

After the COVID-19 epidemic crisis began to alleviate, LPN Academy has held training sessions as usual, including off-site and promoting online training, which is in line with the organization’s policy to adopt digital transformation and focus on promoting self-learning for staffs to have more channels and learning formations.

Meanwhile, the Company also emphasizes on competency -based development to continuously enhance the potential of personnel, in both knowledge and skill aspects and

characteristics or attitudes as expected by the organization. Personnel competency would be assessed as in the previous year to measure individual behavior that reflects competency of each aspect. The assessment results would be applied in Individual Development Plan (IDP) and tools that supervisors can use for team development plan. The development of personnel competency consists of 3 aspects as follows:

Staff Development Policy

In 2023, the company had a policy that focused on developing the competencies of personnel to be talented, good, and healthy for employees at all levels in order to develop personnel to have potential and professional qualities through various learning formats, both offline and online. Link the data systematically with the Human Resource Department to develop career paths, recruit successors, shift positions, and annual performance assessments, including consideration of remuneration, to ensure efficiency in human resource management and development. Including the creation and retention of personnel to lead the organization to become a “value organization” by establishing an “L.P.N. Academy” that determines the systematic and effective development and training of the company’s personnel and all subsidiaries.

The following summarizes the performance of the LPN Academy training given to staff members of the company and its subsidiaries in the year 2023:

1. Competency - Based Development

The main task of L.P.N. Academy is to develop competencies together with the management to encourage personnel to be enthusiastic about self-development in terms of knowledge, skills, and characteristics or attitudes to meet the organization’s expectations. Competency assessments are conducted annually in various forms to measure the behavior of individuals that reflect each competency to what extent they express themselves. The objective is to identify gaps and use them to plan individual training development, as well as being a tool that supervisors can use to plan team development.

Personnel competency development consists of 3 aspects as follows:

1. Core competency development (C-L-A-S-S-I-C) is developing knowledge, skills, and characteristics that everyone in the organization needs by reviewing, encouraging their implementation, elevating the use of core competencies to create excellent results (Strive for EXCELLENCE) in every task of each employee.

2. Leadership competency development refers to the development of knowledge, skills and characteristics of leaders through practical use in conjunction with employee activities such as leadership in club activities or LPN CLUBs.

3. Functional competency development refers to the development of knowledge, skills, and characteristics those personnel in each line of work need to have to perform their duties according to the nature of work to achieve the set goals. SELF DEVELOPEMENT

FOR EXCELLENCE

Leadership Competency Development Outcomes

Because leaders have direct obligations and responsibilities to lead teams and motivate them to achieve their goals, developing their leadership competencies is crucial to the success of the business. Therefore, the LPN Academy has carried out leadership competency development for middle to senior executives (levels 8-13). In 2023, L.P.N. Academy promoted the creation of a Coaching Culture at the management level and supervisors in team development to implement individual development plans and provide opportunities for employees to volunteer to participate in more activities of the company. To apply knowledge to practice as a leader, such as volunteering as a host and moderator in “People Talk”, volunteering to lead club activities in LPN CLUBS, and encouraging employees to conduct more Self-Learning in an online format, promoting learning through Digital, continuous learning and development.

2. Development and Training

In 2023, the company focused on promoting the development of knowledge and skills, both self-development and providing training courses for employees.

2.1 Self-Development

The company has provided opportunities for employees to participate in self-learning through the following channels:

• Activities to enhance new knowledge, skills and experiences for employees continuously throughout 2023 such as:

o Participating in sharing knowledge and experiences through “People Talk” every Friday.

o The 6 clubs for employees are

- Photo Club

- Language Club

- Excel Club

- Health Club

- Music Club and

- Chef Club

The activities of all six clubs provide opportunities for employees to apply their knowledge and increase their experience and skills every month.

• Employee knowledge assessment activities through a quarterly knowledge test in which employees will take a knowledge test and their development results through

- General Knowledge Test

- Task-specific Test

- Code of Conduct Review Test

2.2 The Project Management Course

The Project Management Course focuses on developing knowledge, skills, and competencies in project management through curriculum development and teaching through faculty from Thammasat University. The participants were selected from employees with outstanding performance in each task at a different level and then participated in the personal development process.

2.3 In 2023, the company has implemented the training plan that has been set as follows:

MANAGERIAL & LEADERSHIP COURSE

Core Course

Managerial Course

• Managerial & Leadership Course

The company has formulated a development and training plan to develop knowledge and skills by focusing on the development of knowledge, skills and competencies in management individuals, teams, and tasks, and leadership building to develop leadership competencies to meet the competency level expected by the company. The training plan has been divided into 2 courses:

1 The Core Course focuses on fostering a positive attitude and working according to LPN’s standards, such as the LPN Way, Code of Conduct, LPN SERVICES, and Social Responsibility and Participation for Sustainable Corporate Development, etc.

2. The Managerial Course focuses on developing knowledge, skills, and competencies in management and coaching, such as Team Leader Excellence, The six Critical Practices for Leading a Team, Unlock Your Potential, etc. There are 4 managerial courses:

- Senior Management Development Plan (Levels 11-13)

- Middle Management Development Plan (Levels 8-10)

- Supervisory Development Plan (Levels 5-7)

- Operational Employee Development Plan (Levels 2-4)

• Functional Course plans to develop knowledge and skills according to the nature of the company’s work. It focuses on enhancing knowledge, skills, and characteristics in the job by analyzing weaknesses, strengths, past performance, and the needs of the profession. Prepare a training plan according to the types of work, which are salestransfer-consignment, project management, community management, maintenance, community service, and support work.

• An Elective Course is a course to enhance the knowledge and skills of employees in all lines of work. Employees can choose to learn about the topics available in this course according to their interests, such as occupational safety courses, legal knowledge courses in community management, etc.

Learning Approach in the Proportion of 70:20:10

The company has adopted a learning proportion of 70:20:10 in planning, developing, and training employees, which led to on-the-job training and learning through the surrounding society to continuously improve and promote the application of knowledge gained in the classroom to the workplace.

COACHING

TRAINING

70 means learning the internal processes in the workplace and various supports.

20 means learning through society and people by exchanging, mentoring, or giving consultation and advice through social networks.

10 refers to learning in the form of training, workshops, and online learning (ZOOM, MS Teams).

Development and Training Outcomes

In 2023, the company aims to create learning and development opportunities for employees by encouraging them to continuously develop themselves by learning on the company’s self-learning platforms. Employees at each level of the organization have an average number of hours of learning and self-development of 34.29 Hours per person, divided by level and gender of employees as follows:

Employees in each category by gender

and

(Levels 8-10)

(Levels 5-7)

(Levels 1-4)

3. Promoting the Development of Speakers within the Organization

In 2023, L.P.N. Academy coordinated weekly employee communication activities and encouraged employees to rotate alternately to practice as a live host and as a presenter, sharing content, knowledge, and experience through weekly employee communication activities, enhancing experiences and feelings of pride for employees who have been given opportunities. This opportunity had been provided to all departments, with many departments participating and dividing their duties as speakers on each topic, which included managers and employees in the same line of work as well.

In addition, in 2023, L.P.P. Academy provided 35 training courses taught by 50 internal instructors of the company. The course aimed to develop the company’s work and review knowledge and skills. The core intensive course that used internal lecturers was the “Signature” course for each field of work, such as the New Staff Preparation Course, Introduction to Community Management and Maintenance (CM/P&M New Staff) Service Course, LPN SERVICES Code Courses, Digital Literacy Course, Community Manager Development Course (CMTC), Community Building Law Course in Community Management, Compliance to ISO Course, Legal Knowledge Course in Community Management, Mentor Development Course, and Line of Work Development Course, etc.

4. Promoting Self-Learning through an Online System (E-Learning)

L.P.P. Academy provided 35 training courses taught by 50 internal instructors of the company. The course aimed to develop the company’s work and review knowledge and skills.

In 2023, LPN Academy and the Information Technology Department developed the LPN Academy website and the L.P.P. Academy website to serve as a learning channel, facilitate employees in reviewing knowledge, facilitate training registration, and provide a tool for assessing knowledge and understanding after training. In addition, the company has developed an online system to record knowledge and benefit from self-learning by continuously improving the Viva Engage learning tool. Furthermore, there are courses on digital literacy for employees to easily learn through online channels, and employees can access learning on smartphone devices through the Line OA application: LPN Friends and L.P.P. Friends, such as knowledge set in work and real estate business; learning materials and service techniques to make an impression at work; management knowledge; and practical line of work knowledge. These courses will promote online learning to increase learning opportunities and support employees in accessing learning resources more conveniently.

5. Development of a Signature Course to Create Qualified Professional Personnel.

In 2023, L.P.N. Academy and L.P.P. Academy initiated the core courses to develop professional employees in each field of work to develop intensive potential in the dimensions of leadership building, management, and team management, including value service delivery to create service excellence in the workplace. Throughout 2023, the academy has created efficient 94 employees from the following courses:

- Develop professional community manager through CMTC 1 class 36 persons

- Develop professional community service head through SCMTC 2 classes 58 persons

6. Promotion of Basic Education and Advanced Education at the Vocational Level through Bilateral Programs

In 2023, the Academy developed bilateral cooperation projects with public educational institutions and organized bilateral courses with 12 educational institutions as follows:

1. Kanchanapisek Nongjok Industrial and Community Education College

3. Srisamrong Industrial and Community Education College

5. Bangkok College of Industrial Technology

7. Siam Technological College (Siamtech)

9. Prachinburi Industrial and Community Education College

11. Chitralada Technology Institute

2. Nawamintrachutit Industrial and Community College

4. Minburi Technical College

6. Phraramhok Technological College

8. Prachinburi Vocational College

10. Rasi Salai Technical College

12. Donmuang Technical College

The objective is to promote education so that students receive vocational training that meets their field of work and enhances their work experience before graduation. With students ranging from vocational certificates to high vocational certificates (Electrical, Machine, and Electronics). To participate in this program, participants must have the following qualifications:

1. Vocational certificates or high vocational certificates.

2. Technician-related fields (electrical, electronic, and mechanical)

The Academy provides support for students entering vocational training as follows:

1. Allowance

2. Educational Support

Currently, there are 46 people participating in the project.

7. Budget for Development, Training, and Seminars

3. Accident Insurance during Vocational Training

Therefore, in 2023, the company supported the budget for the implementation of development, training, and seminars through LPN Academy with a total amount of 8,616,454 baht, with details as follows:

- Training Center expenses: 3,292,069 Baht

- Internal training expenses: 4,693,387 baht

- External training expenses: 630,998 baht

Internal training expenses: 4,693,387 baht Training Center expenses: 3,292,069 Baht

External training expenses: 630,998 baht

4. Skills Training

INNOVATION DEVELOPMENT

L.P.N. Development PCL is an organization that gives precedence to innovation development and promotes an atmosphere to foster innovation in all operational processes. “Lateral thinking” is identified as one of the core competencies of the organization that will motivate new innovative creations of products and services of the organization. The innovative operation of the Company can be categorized into three levels as follows:

1. Strategic Innovation

is the innovation that supports the vision and strategy of the organization e.g. Digital Transformation, development of Livable Home concept, Virtual Reality (VR). The Company has applied Digital Transformation to facilitate employees to work from home. It also increases efficiency of expense and cost management and improves internal organizational management to suit today’s growing digital era such as applying more sales technology and touchless 3D-visual or VR tours of a project.

2. Product & Service Innovation

is adding value to a product through innovation such as

- designing projects according to the Green Building Standards,

- developing condominium units and residential homes that promote well-being of residents,

- developing energy-efficient buildings by installing solar panels in common areas of residential condominiums to save energy,

- installing EV chargers at residential condominiums and homes to support the usage of electric vehicles which is a new energy-saving alternative,

- applying Smart Living Technology in sustainable development concepts to ensure that the Company’s products and services best meet customer needs. The Company uses the Design Thinking process in combination with Big Data and customer feedback to develop products and services that can meet their needs, create new experiences for customers, and accurately improve the issues that cause both current and next-generation customers dissatisfaction.

3. Process Innovation

is the implementation of a significantly improved operating process or provision of services to enhance team efficiency and increase Service Excellence in order to meet customer needs and continually up-level the work. In 2023 the Company has focused on developing work processes to complement diverse lifestyles of its residents through the development of digital transformation services to reduce mistakes at work and labor consumption, such as organizing project management data on Connect Dashboard and managing workflow with QR Auto Report. This includes using technology, instead of traditional practices, in human resource development in each line of work to create understanding and ensure team cohesiveness. It is, then, stored in the organizational knowledge bank for future competitiveness development. QR technology is used for tracking maintenance works. Aircon Saver, a Smart Living Technology, is provided for residents.

ABOUT L.P.N.

Company Name : L.P.N. Development Public Co., Ltd.

Type of Business : Listed company in the Stock Exchange of Thailand

Stock Symbol : LPN

Registration Date : 21 June 1989

Registered Capital : 1,454,198,768 THB

Registration Number : 0107537002303

Country of Operation : Thailand

Head Office : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Tungmahamek sub-district, Sathorn, Bangkok 10120

Contact Number : Tel. 02-689-6888

Website : www.lpn.co.th

Type of Business Operation and Affiliated Companies

L.P.N. Development Public Co., Ltd. (LPN)

Develop residential condominium.

Pornsanti Co., Ltd. (PST)

Develop real estate projects other than residential condominium.

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

Lumpini Project Management Service Co., Ltd. (LPS) Provide comprehensive real estate development service.

LSS Solution Security Guard Co., Ltd. (LSS) A business providing comprehensive security services.

LPC Social Enterprise Co., Ltd. (LPC) Provide community services.

LWS Wisdom and Solution Co., Ltd. (LWS) Provide product and service research and development services in real estate business.

PW GROUP Engineering Co.,Ltd. Building improvement and engineering systems service provider

Types of Products

The Company and subsidiary companies conduct businesses in two business groups i.e. real estate development business and real estate related service rendering business. The details are as follows:

1. Real Estate Development Business

L.P.N. Development Public Company Limited operates real estate development business with an aim to sell residential projects targeting middle to lower-middle income earners (Focus Strategy). Since 2017, the target group of customers and the product development have been expanded to include lower-middle to upper income earners. The differentiation strategy in creating uniqueness in terms of products and services is applied. The condominiums units and common area of the projects developed by the Company are developed under “LPN Design” concept which is in accordance with the Principles of Universal Design. The common area is specially designed as a co-living space for the residents of all age groups. Moreover, after-sale service in the form of community management under “Livable Community for All” strategy has been developed. The strategy helps create the uniqueness of the Company and builds confidence among customers.

The Company has identified the position of each product for clarity and to cover the Company’s target group. The products of the Company are categorized by objectives into two groups, namely, the urban residential condominium and vacation condominium project and the residential home project. In 2023, the Company launched a new master brand “168” to modernize brand image and products in response to the needs of new generations. The new brand comprises mid-to high-end residential condominium projects and residential home projects at various price levels.

1.1 The urban residential condominium:

Apart from developing residential condominiums in Bangkok and peripheral area, since 2012 the Company has also developed projects in other provinces i.e. Chonburi, Udonthani, Phetchaburi and Pattaya. The brand positioning is as follows:

1) “The Lumpini”

It is the premium brand developed for the special occasion of the 24th year of operation of the Company. The project is located on the highest potential location in Soi Sukhumvit 24 surrounded by convenient facilities. The Lumpini is perfect for luxurious, high class living reflecting the success of a superior life.

2) “Lumpini Suite”

It is the high-end brand developed in response to residential needs of business owners or high-ranking executives who are in search of aesthetic life that is simple and yet luxurious. The location for the development of such projects, therefore, is in central business district near major transportation systems such as BTS and MRT stations and major expressways. The project is fully equipped with amenities. The number of units is minimal so the residents are able to enjoy the privacy.

3) “The Selected by L.P.N.”

It is the mid-to-high-end brand whose product value is developed to match the unique lifestyle of target groups in each project. The first project development is located opposite to Kasetsart University. Therefore, the project is developed as a campus condominium. The design of common areas is perfect for studying i.e. spaces for group working, quiet reading corners and areas for brainstorming, exercising, and outdoor activities.

4) “Lumpini Place”

It is the mid-to-high-end brand developed for the working-age target group. The project location is in densely populated area and near main streets. It may be in or around central business districts and is conveniently located near modern transportation system. The project is fully equipped with technologies and amenities for everyday living. “Lumpini Place” is the model of City Condo along BTS and MRT route with the price of around one million THB developed by the Company since 2001. It was initiated under “LPN Design” concept which focuses on the functionality of space. City Condo projects are successful and positively received by the customers since it meets the needs of the working people in the city.

5) “Lumpini Park”

It is the mid-to-high-end brand developed for large-scale community. “Suan Ruam Jai,” a community park which is a green and shady area where family members and residents of the projects can do activities together, is initiated to add value to the product and service. It is in line with the concept of creating a “Livable community” in which residents live together in harmony under “Togetherness, Care and Share” culture. The first project is Lumpini Park Pinklao.

6) “Lumpini Ville”

It is a mid-end brand developed from “Lumpini Place” for professionals looking for their first private homes for the convenience in transportation and privacy. The project is located in densely populated area and near workplace and convenient facilities such as department stores, schools, etc. “Lumpini Ville” brand is thus an alternative for young people who want to live a life of their own while still maintaining a close bond with their family.

1.2

7) “Lumpini CondoTown”

It is the mid-to-low-end brand focusing on building a residence for a great quality of life of those who just start their career and are freelancers. The locations of the projects will be in the fringe of urban-outer area which is densely populated. This is a large group of people who are in need of a residence. It is to be the first quality home and the starting point for those who are about to start their lives and build a happy family.

8) “Lumpini Township”

It is the large-scale, mid-to-low-end brand developed to create an opportunity of owning a home at an affordable price. The “Livable Township” strategy is initiated for middle-and lower-income groups. The first project with over 10,000 units is developed on a 100-rai plot of land is “Lumpini Township Rangsit-Klong 1" The project is fully equipped with convenient facilities such as various recreational areas for a large number of residents, a community mall and convenient stores to enhance the quality of life as well as great environment and society for the residents.

Vacation Condominium Project:

In addition to living in urban area, which is close to workplace and amenities, the Company has initiated the development of a vacation condominium as the second home. The pilot project is firstly developed in Pattaya and then Cha-am in Phetchaburi Province.

1) “Lumpini ParkBeach”

It is the mid-to-high-end brand developed from “Lumpini Park” which combines the atmosphere of Suan Ruam Jai with the liveliness of the seaside atmosphere. The first project developed is Lumpini ParkBeach Jomtien. All the condominium units are designed to have the ocean view. The price is also extremely affordable. Since the project is well-received, the Company has decided to develop another project of the same brand in Cha-am, Petchaburi Province in 2015.

2) “Lumpini Seaview

Jomtien”

It is the mid-end brand for professionals who would like to buy a vacation home by the beach. “Lumpini Seaview Jomtien,” is the first project developed in Pattaya, not far from “Lumpini ParkBeach Jomtien” which is the first resort condominium of the Company. It is designed as an affordable vacation home for the customers in the middle-income range who are the main target customers of the Company. The residents can enjoy panoramic view of the ocean. The project is managed under the “Livable Community” concept and provides services that cater to the lifestyle of people who want to stay at a resort style condominium.

1.3 Residential Home Project

In 2011, to build on the customer base, the Company has expanded the scope of project development to middle to lower-middle residential homes and townhouses, applying the strengths of the residential condominium development namely LPN Design, effective cost management and after-sales service according to “Livable Community for All” strategy. In 2017 the Company expanded the development of projects to cover customers who want premium homes. The product position set by the Company is as follows:

1) “BAAN 365”

It is a flagship project of premium single house and townhome of the Company. The location is meticulously selected. The first project is developed on Rama 3 Road as it is right in the city and yet private. It responds to the need of customers with high purchasing power who tend to expand their family and prefer a city home that can accommodate 3 generations under one roof.

2) “Lumpini Townplace”

It is the mid-to-high-end housing brand developed for professionals (35 years older). The Company has selected locations that can be accessed from several routes and are close to amenities making everyday life more perfect. It fits the new normal city lifestyle perfectly. The design of the common area and the body of the house are suitable for living. Materials are of good quality. It improves the quality of life and social quality.

3) “Lumpini Townville”

It is the mid-end housing brands developed to meet the needs of residential condominium customers who want to expand the functional space. It is suitable for professionals 25-35 years of age who want to expand their family due to an increase in family members. The house is designed to meet their needs providing proper space allocation to all members at an affordable price. The interior is very functional with the living room, the kitchen, the bedrooms and the elderly room. The provided common areas such as gardens and clubhouses serve as gathering places for residents allowing them to perform social activities together under the “Togetherness, Care and Share” concept.

Nowadays, the definition of home is changing to be more than a place to live that serves every aspect of life, not just as a place to relax. A home must reflect yourself and can adjust the space to respond to changing lifestyles both personal space and work area. Supports every need of the family so that they can spend time together to the fullest and most comfortable living. Ready to have peace of mind with technology that makes everything easy.

Condominium

1) “Place 168”

This mid-to high-end brand located in prime business districts is developed as a continuation of the Lumpini Place brand, a prototype of the Company’s City Condominium. Commuting is convenient since projects are either on main road or near major public transportation nodes. Its residential design supports the lifestyles of new-gen urban people. The design of new functions for living moves life forward. Technologies are utilized to make life easier. Spaces for relaxation and work are created in order to fulfill the desire to succeed professionally and personally.

2) “Park 168”

This mid-to high-end brand is developed as a continuation of Lumpini Park brand. Its design emphasizes on living urban life in harmony with nature. Proper technologies are selected in order to create balance in life. Residents can rest in relaxing green atmosphere and dwell in happiness that infiltrates everyday life.

3) “EARN”

A brand developed by the company for investment in a potential location. With the concept of life-long easy earnings for the investors and the joyful living for the residents.

Housing

1) “Residence 168”

As a new definition of premium home, the Residence 168 brand pays attention to every detail in life. Designed with understanding, it clearly reflects resident’s personalities. It is outstanding, unique and charming and complements every aspect of life at any moment to ensure that this place is the most perfect place for you.

2) “Villa 168”

This is a mid-to high-end resort-style detached-home brand, designed for privacy and for residents to enjoy the best moment. It is suitable for those who want to relax in a quiet, private and resort-like atmosphere, experience a comfort life with no rush and be ready for the best moment that can happen every day.

3) “Maison 168”

This is a mid-to high-end townhome brand developed to perfectly meet lifestyle of people nowadays. The house is simple but airy and full functional.

4) “Haus 24”

This mid-end detached-home brand offer new-generation houses for modern living. It is developed to accommodate small single families, offers privacy and caters to lifestyle that prefers convenient living and working conditions. Each function in the house can be freely adjusted to suit every lifestyle of modern families.

5) “Venue 24”

This mid-to low-end brand is designed according to lifestyle of new-gen urban families which is considered the utmost importance. It caters to needs of anybody looking for a full functional house to start a family. Areas are adjustable which provide flexibility for current and future living.

2. Real Estate Related Service Rendering Business

It is the policy of the Company to provide after-sale services to customers in all projects. Six subsidiary companies are established to provide various services related to property development as follows:

LPP Property Management Co., Ltd. (LPP)

1.1 Community management

It is responsible for community management that focuses on adding value of services delivered after the project is handed over to the customers via “Livable Community” strategy which is developed into “Livable Community for All” strategy. It is to uphold the reputation and value of the projects developed by the Company and residential communities. Professional community management team will manage the property, budget, quality of life, environment, safety and stakeholders such as residents, community management team and condominium juristic person committee under F-B-L-E-S+P strategy.

1.2 Management of residential condominiums, offices and commercial buildings

is responsible for management of common assets and common areas for the sake of building efficiency. It does not only make the building suitable for its use but also take care of operational efficiency under an adequate and suitable environment. Other services include providing management service for rental asset management system, setting up and operating condominium management system and managing office buildings, commercial buildings, superstores or other business buildings as required by clients. In addition to providing building management services and building supervision to ensure the suitability of the building for its uses, the company supervises the operational efficiency under a suitable and worthwhile environment starting from planning, controlling, evaluating, managing database and auditing by personnel and teams who have high experiences in all fields.

1.3 Brokerage services

It focuses on managing residential condominium units that the buyers (investors) wish to rent out or sell. The renters are also carefully selected to ensure the safety of the community.

1.4 Engineering service

is responsible for providing comprehensive condominium engineering services according to customers’ needs. The operation includes supervision of the maintenance and repair of condominiums, such as electrical system, sanitation system, fire prevention system, air-conditioning system, building painting work, etc. Work plan and cost control plan are done by our expert and experienced personnel for the highest benefits such as repairing the interior of condominium units, designing and renovating wastewater treatment system and improving M&E system.

provides project management service to the Company and subsidiary companies. The company is supported by more than 20 companies in LPN Team. In 2017, the business base is expanded to include service rendering to external organizations. The emphasis is put on project management in order to deliver product values to customers as well as quality management, costs control and management, speed of completion, environmental responsibility and safety of construction workers and related parties under “Q-C-S-E-S+P” strategy. In 2019 the company has achieved ISO 9001:2015 Quality Management System Certification and ISO 14001:2015 Environmental Management System Certification.

is responsible for security services by integrating people and system technology. It focuses on providing services to projects developed by the Company to support the comprehensive community service policy, supervise security performance and maintain the quality of “Livable Community” management. In addition, the company provides comprehensive security services to external projects as well.

is responsible for community service works. It provides cleaning services and comprehensive services to both internal projects developed by the Company and external projects. It was originally called LPP Property Management Co., Ltd. Established with an aim to create jobs, incomes and dignity to underprivileged women, it has expanded the target groups to persons with disabilities and elderly people. In 2013 the company has been among the first group of companies that were certified as social enterprises by the Department of Social Development and Welfare, Ministry of Social Development and Human Security.

is responsible for providing product and service research and development to the Company and subsidiary companies. The company also provides consultation and research services on green operation, sustainable development and Building Information Modeling (B.I.M.) to the Company and other domestic and international organizations outside LPN Group.

is responsible for providing maintenance services for building improvements and engineering systems such as sanitary systems, fire protection systems, air conditioning system and building architectural improvements for all types of buildings.

2. LPS Project Management Co., Ltd. (LPS)

4. LPC Social Enterprise Co., Ltd. (LPC)

5. LWS Wisdom and Solution Co., Ltd. (LWS)

6. PW Group Engineering Co., Ltd. (PWG)

3. LSS Solution Security Guard Co., Ltd. (LSS)

STAKEHOLDER ENGAGEMENT & MATERIALITY ANALYSIS

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

Stakeholder (8S)

SHAREHOLDERS

Treatment of Stakeholder

• Respect basic shareholders’ rights in accordance with the law and Articles of Association.

• Treat all stakeholders equally.

• Have a mechanism in place that will ensure shareholders that they will receive accurate information and a sound profit and dividend according to the policy of the Company.

• Monitor connected transactions, determine measures to prevent conflict of interest and prevent the use of internal confidential information for personal benefit.

SUPPLY CHAIN

STAFF

CUSTOMER

Business alliances are trade partners of the Company. It is the network of entrepreneurs such as architects, engineers, consultants, construction companies, construction materials manufacturers, transport companies and security services providers.

• Promote collaboration among “alliances” by developing LPN Team which is treated as a subsidiary company of the Company.

• Offer appropriate return, do not exploit trade partners or only take into account the profit of the Company, conduct business based on fairness.

• Set out clear purchasing policy. All trade partners must submit a cost proposal and the Company will select the one with fair and reasonable price and high-quality services based on the purchasing guideline of the Company.

• Treat staff with fairness in regard to career opportunity, remuneration and appointment or transfer, all of which should correspond to the performance of each staff and business success of the Company.

• Establish a short-term structure of remuneration of staff which is decided from the profit of the Company and the staff’s contribution to the success of the Company each year.

• Consider the overall remuneration of staff based on Key Performance Indicators (KPIs). The remuneration rate must be in accordance with the market rate. The knowledge, ability, experience and performance of each staff will be taken into account, as well as equality and fairness, inflation rate and Gross Domestic Product.

• Offer annual bonus based on the annual performance of the Company.

• Provide welfares e.g. health insurance, annual medical check-up, provident fund, financial loan, financial aid in case of death of staff’s parents or spouse and fitness area.

• Promote work-life balance of staff and regular workplace inspection. Provide safety equipment to staff and organize fire drills.

• Give importance to and be responsible for all customers on a regular basis. Enhance customers’ satisfaction and confidence, develop products, be liable for the quality and standard of products as promised, improve customer service quality and maintain customer confidentiality.

• Establish a Call Center and Customer Experience Management Department Tel. 02-689-6888 to receive complaints.

Concern and Expectation

• Generate appropriate growth and profit.

• Take environmental and social responsibilities.

• Generate a balanced return for all stakeholders.

• Adhere to corporate governance principles.

• Manage risks.

• Act against corruption.

• Respect shareholders’ right.

• Implement 6 GREEN LPN policy to achieve sustainable development.

• Promote unity.

• Establish a joint business plan.

• Share knowledge.

• Generate a balanced return.

• Support organizational development process of trade partners.

• Build environmental and social awareness to mutually achieve growth and development.

• Promote work-life balance.

• Promote learning and career advancement.

• Promote “Livable Organization” concept and happiness at work.

• Build capacity and promote organization values.

• Provide appropriate remuneration and welfare.

• Promote equality and basic rights.

Method of Promoting Participation

• Annual Report and Sustainable Development Report

• Annual General Meeting of Shareholders

• Shareholders’ Newsletter

• Project visit

• Meeting with analysts

• Meeting with Investors and Fund Managers

• Project progress report

• Meeting with LPN Team (Executive Level)

• Meeting with LPN Team (Operational Level)

• Training and knowledge sharing

• Relationship building activities

• Happiness at Work Survey

• LPN Academy

• Activities promoting participation

• Staff Relations Team

• Performance Evaluation

• Internet website and email

• Executive Knowledge Sharing

• Welfare Committee

• WhatsApp / Line OA

• Build affordable home with appropriate and fair price.

• Promote product and service value and brand’s credibility.

• Enhance customers’ satisfaction and manage complaints.

• Respect consumers’ rights.

• Call Center

• Various activities

• Satisfaction Survey

• Lumpini Family Day

• Touchpoint

• Customer Experience Management

• Market Research

• www.lpn.co.th

• Line OA

Stakeholder (8S)

RESIDENTS

Treatment of Stakeholder

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

LABORS

• Enhance the quality of life of construction workers and provide necessities of life such as food and sanitation. Accommodation of construction workers in construction sites is inspected to ensure the cleanliness and tidiness of the site and provide assistance if needs be. Various activities are regularly organized, for example,

- Provision of free haircut and lunch to construction workers.

- Drug test.

- Monitoring the amount of waste at the site for proper waste management.

- First aid training and training on medicine use.

- Annual medical check-up and vaccination.

NEIGHBORS

• Monitor the environmental quality in construction sites.

• Manage wastewater and waste in Lumpini communities.

ENVIRONMENT

• Establish a clear policy and guideline to build awareness of staff, trade partners and communities managed by the Company.

• Appoint a Corporate Environmental and Social Responsibility Committee to monitor the operation and ensure that it is in line with the policy. A Charter is to be established. Crucial operational processes are to be supervised by high-ranking executives.

• Apply the Triple Bottom Line (3P- Profit, Planet, People) approach in the operation, establish 3-6-8-10 guideline i.e. 6 GREEN LPN, 8 Stakeholders, 10 Processes and emphasize CESR In Process. The concept of 6 GREEN LPN includes the six areas of environmental and social responsibilities as follows:

1. Green Enterprise

2. Green Design Concept

3. Green Financial Management

4. Green Marketing Management

5. Green Construction Process

6. Green Community Management

• Regularly organize CESR Out Process activities.

Concern and Expectation

• Promote product and service value.

• Enhance customers’ satisfaction and manage complaints.

• Respect consumers’ rights.

• Promote “care and share” culture.

• Promote participation in CESR activities.

• Promote learning among youth residents.

• Provide an opportunity for the residents to decide the guidelines for management of community.

Method of Promoting Participation

• Annual General Meeting of Joint Owners

• Mobile App

• Call Center

• Various activities

• Satisfaction Survey

• Lumpini Family Day

• Chairman of Juristic Persons Seminar

• Touchpoint

• Customer Experience Management

• Market Research

• www.lpn.co.th

• Line OA

• Ensure safety at work.

• Enhance the quality of life and sanitation of construction workers.

• Offer standard remuneration rate and respect basic rights.

• Treat all workers equally.

• Minimize noise, dust and impacts from construction.

• Be open to suggestions.

• Comply with the Environmental Impact Assessment Report.

• Take sustainability of the neighboring area into consideration in project design.

• QCSES+P

• Activities promoting the quality of life of construction workers

• Medical check-up

• Public Hearing

• Visiting, Meeting, Discussing

• Increase of Green Space

• Space Improvement

• Sustainable Project Design

• Suggestion Box

• Minimize construction impacts.

• Campaign for waste segregation in communities managed by the Company.

• Promote energy conservation.

• Use resources efficiently.

• Promote sustainable project design.

• Raise CESR awareness in communities managed by the Company.

• Create jobs and enhance quality of life of underprivileged women.

• Share knowledge with other organizations via LPN Academy.

• 6 GREEN LPN

• LPN Green Signature Project

• QCSES+P

ABOUT THIS REPORT

Report Preparation Guideline

Sustainable Development Report 2023 is the ten sustainable development report of L.P.N. Development Public Co., Ltd. The first one was published in 2014 to monitor and disclose the information on the positive and negative impacts of the operation of the organization on the economy, environment and society. It also aims to disseminate the concept of business operation of the Company which is based on sustainable development as well as the Philosophy of Sufficiency Economy i.e. moderation, reasonableness and self-immunity together with Knowledge and Morality as reflected in 6 Green LPN management concept.

The information included in the Report is compiled between 1 January and 31 December 2023. The preparation of the content of the Report, particularly the general information of the organization, management guideline and operational key performance indicators, is in conformity with the Global Reporting Initiative Standard (GRI Standard): Core Option which is different from the previous year report. The linkage between the business operation of the organization and the Global Sustainable Development Goals 2030 (SDG2030) is also presented in this Report.

Defining Report Content and Boundary

The reporting framework and content is defined mainly upon the significance and benefit of the content. Material sustainability aspect is assessed along with sustainability context, stakeholder inclusiveness and completeness of the content in accordance with GRI Sustainability Reporting Guidelines.

Defining Material Aspects and Boundary Process

Identifying Sustainability Topics

A number of sustainability topics have been identified in the Sustainability Report 2023, all of which are relevant to real estate development and construction industry and substantively influence the expectation, assessment and decision of stakeholders on the organization’s responsible operation. Sustainability aspects will be assessed following the GRI Sustainability Reporting Guidelines.

Furthermore, the considered sustainability aspects are being reconsidered. Feedback from each stakeholders, operational guidelines and sustainability assessments by different agencies are taken into consideration together with other existing aspects so that the consideration for significant aspects in 2023 are more completed.

Prioritizing Material Aspects

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

Validating Material Aspects

The working group proposed the sustainability topics to the Chairman of the Board of Directors, the highest-ranking executive of the organization, for endorsement so as to ensure that such topics are inclusive of possible impacts of the Company’s operation and are of importance to each group of stakeholders. The topics will be used as a guideline for the planning of sustainable operation and preparation of the Sustainability Report. The materiality of the report is identified and shown in the diagram on prioritizing materiality aspects in accordance with the analysis of the Company Materiality Aspects in page 132.

Reviewing

The Company made use of the feedback of the stakeholders on the Sustainability Report 2022 to develop the Sustainability Report 2023.The contents are reviewed whether they are relevant to the sustainability topic of the organization so that the operation of the Company achieves sustainable development goals that are most relevant and significant to the organization. In addition, the feedback is used to determine the direction of socially responsible operation of the organization in the next phase. In 2023, stakeholders are able to send their feedback and suggestions on sustainable and responsible operation through a number of channels provided by the Company as well as the attached questionnaire.

Dissemination Channels

• Website: http://www.lpn.co.th: “Sustainability Report” in “Good Corporate Governance” under “Investor Relations”

Contact Person for the Preparation of Sustainability Report and Sustainable Operation

Ms. Monnaphat Suphakitchanusan

Brand Development Department, Brand Management Division

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

Tel : 02-285-5011-6

Email : bnd@lpn.co.th Fax : 02-285-5017

Stakeholders

Employment,

Customer health and safety

Supplier human rights practices

Marketing communication and dissemination of information to customers

Economic performance

Anti-corruption

Local community and social grievance mechanism

Diversity and equal opportunity

Equal

Market presence

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

Section 1: General Information

1.1 Relationship with the Company

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

Section 2: Report Content and Presentation

2.1 Your awareness and understanding of the overall operation of the Company is increased.

2.2 Your awareness and understanding of the operation on sustainability of the Company is increased.

2.3 The content of the Report reﬂects important operations of the Company as expected.

2.4 The content is clear.

2.5 The content is easy to read and understand.

2.6 The content is useful.

2.7 The report layout is beautiful

2.8 Overall, you are satisﬁed with the Report.

Section 3: Sustainability Reporting Improvement

3.1 This Report addresses the issues that are of your interest.

Strongly Agree

Agree Disagree

Strongly Disagree

Yes No (please specify the issues that you are interested in and should be included in the next Sustainability Report.)

3.2 Other comments or suggestions

Please submit the form to:

Department of Brand Development

L.P.N. Development Public Co., Ltd.

Address : 1168/109, 36th Floor, Lumpini Tower, Rama 4 Road, Thung Mahamek sub-district, Sathorn, Bangkok 10120

Email : bnd@lpn.co.th

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