2

1Profile & Strategy

Message from the Chairman About East Water Vision, Mission & Strategy Corporate Values Awards Received in 2013

Organization Structure

888

677

23455

Effects of business management with sustainability importance Risks Stakeholders connections Supply Chains System Memberships of the sustainable development network Materiality About this report

2Water Security

CONT

ENT

zation Structure

10101113131414

17202425272830

Information and Output on East Water Sufficient Operation Management

3Water Quality

Employees

with Energy Reservation4Water Efficiency

GRI-G4 Content Index 68

60606161

6262656667

4751

5657

3235

3738404244

5

Message from the 4. Campaign to reduce the amount of water usage to ease the production cost instead of raising the price The company realizes that the continual carelessness in water usage, especially in industry sector, will caused the company to endlessly explore, invest, and

increased cost of production, and, eventually, resulted in the consumers having to bear the burden of the elevated price.

On the other hand, the campaign should be the most effective approach. The company, as the seller, will be able to operate by

the internal operation for more cost-effectiveness. As well, the consumers, as the buyers, will not have to shoulder the rising price stemmed from the investment in developing new water resources.

The consideration regarding this issue indicates that the

from the entrepreneurship can all be advanced together.

The aforementioned matter will lead to the positioning of the sustainability strategies in 2014, which East Water deeply regards. These strategies will focus on pushing forward the campaign for the customers and water consumers to cut back and reduce water usage. The company will apply two more strategic measures including: - emphasizing water consumers on having their own water reservoir - focusing on caring for and checking up on each other among the consumers and the organization through communication channels established by the company, in which problems of both parties - the needs of water consumers and the water distribution process of the company - will be acknowledged

These campaigning and cooperative action building are considered as the major step advancing toward the creation of the control center that will enable the access of the equally shared water resource usage in the near future.

of resources among the water consumers, which is considered as the sustainability reinforcement for the whole system.

As for the year of 2014, the company has anticipated an upcoming vital challenge - the climate change. It will affect water level in

tremble the security of the organization. Nevertheless, the precautions has already been prepared in terms of exploring additional water resources from both natural source and private sector in order to ensure the customers that no matter what happens, the company will always be able to respond to the water consumption demand.

East Water is the business that runs with “water,” which is an important natural resource, yet has some “uncertainties” in disguise. This brings about a pivotal challenge for East Water in “water distribution security” to make water consumers be assured and secured of their businesses and their lives. As a result, “Water Security,” the notion that is highly regarded by the company was originated. To build “Water Security” of our own, the procedure is operated under three major principles as follows: 1. Having secured reservoirs interconnected with water grid system 2. Preparing supporting reservoirs for water from natural resources and private sectors 3. Keeping the quality standards of raw water used in the operation

However, the economy of the eastern region of Thailand in 2013 had evidently affected the “water distribution security” due to

estate area, in which the quantity of water used was changed accordingly with the economic growth. In addition, the industrial estate in Mabtaphut, which is the main service area of East Water, is in declining growth stage. In other words, the growth was beginning to decline due to several reasons, such as a terrain limitation, environment impact, as well as the political turmoil, which affected the tourism sector in Chonburi Province. In order to compensate the deterioration of industry and tourism sectors, these effects urged the company to take more interest in consumption area.

Moreover, in the past year, East Water had considered issues with

the sustainability of the organization as follows:

1. Operating business with environmental impact awareness In the past, the company has put a great effort to control the operation aiming for the least environmental impact.

constructing pipe network area The company has exceedingly

water distribution no less than those who reside at the end of pipelines. 3. Pricing issueusage, the higher price and vice versa, this issue is intended for every sector to gain access of the water distributed from the company equally. Additionally, in 2014, the company will continue to be more responsive to the issue.

CEO

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Since 1992, the government has voted for the Provincial Waterworks Authority (PWA) to establish Eastern Water Resources Development and Management Public Company Limited, or East Water in short. Then in 1997, East Water became one of the listed companies on the Stock Exchange of Thailand (SET) and was privatized through the listed stock entitled “EASTW”. Its mission is to engage in the development and management of the raw water pipeline systems for public distribution. In addition, the company also provides the consulting services for clean water production, along with water distribution system in the industrial estates, factories, as well as maintenance services, related equipment trade, consulting services for pipeline and other equipment and machines maintenance, and creating

all located in Thailand, and the operation center is located in Rayong Province. With the total length of 378 kilometers, the raw water pipelines are capable of distributing

water, covering the area of three provinces, Rayong, Chonburi, and Chachoengsao.

About East Water

4

management that grows in accordance with the country’s economy and expands to

ASEAN region”

Vision

Mission

Strategy

1. Managing the business for the suitable growth, and raise the product value 2. Developing the new business to support the continuous growth in medium term and long term

management tools4. Developing human resources, knowledge management, technology and innovation5. Having good corporate governance with a sense of responsibility toward communities, society and environment

1. To expand the investment and develop the water business as well as other relevant businesses for continuous and sustainable growth2. To increase the competitiveness with the right and up-to-date technology and innovation3. To develop the competency of the staff and improve its structure to be more appropriate

transparency according to the good governance principles5. To be responsible for communities, societies and environment and maintain good relationships with the stakeholders

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East Water has applied “corporate values” since 2009, which came around the principal values known as IACT. It corresponds to the company’s mission and vision and has been held as codes of conduct for every stuff ever since. IACT is deliberated on together with corporate mission and vision to create more systematic operation.

IACT stands for: I ntegrity A chievement Orientation C ustomer Service Orientation T eamwork and Leadership

CSRI Recognition Award from Corporate Social Responsibility Institute (CSRI), under The Stock Exchange of Thailand (SET) to honor and encourage listed companies for continuously operating their businesses with sustainable social responsibility

Awardsin 2013

Values

The excellent-leveled score of 95.5 (surpassed 93.5 marks from last year) from the assessment during 2013’s Annual General Meeting of Thai Investors Association

CSR-DIW in Supply Chain Award from Department of Industrial Works to promote common social responsibility toward community

assigned by TRIS Rating

5

6

Organization Structure

As a listed company on the Stock Exchange of Thailand, East Water has an obligation to follow the Public Limited Companies Act by forming organization structure in accordance

the Securities and Exchange Commission (SEC). It aims to support transparency for shareholders and customers in public and private sectors, as well as the people within

other committees have been stated as the charter in the committee’s manual. A committee comprises of no less than three independent or external committee persons to balance the power between the committees with any

Audit CommitteeManagement and

Investment Committee

Risk Management

Committee

President & CEO

Audit Department

Executive Vice President,

Operation

Project Planning

Department

Corporate

Communications DepartmentBusiness Development

Department

Human Resources

Department

Corporate Affairs

Department

Operation and

Customer Services

Department

Corporate Governance

and Nomination

Committee

President & CEO office and

Corperate Secretary

Executive Vice President,

Finance and Accounting

Finance and

Accounting DepartmentInformation Technology

Department

Regulation Enforcement

Operation Result Assessment

and Renumeration Committee

Board of Directors

Eastern Water Resources Development and Management Plc.

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Major Shareholders

Business Structure

Raw water business

Eastern Water Resources Development and Management PLC.

Water supply & wastewater treatment business

Universal Utilities Co., Ltd. (100%)

Chachoengsao Water Supply Co., Ltd. (100%)

Sattahip WaterworksKoh Lan WaterworksKoh Sichang WaterworksBorwin WaterworkKoh Samui WaterworksRayong Waterworks

Bangpakong Water Supply Co., Ltd. (100%)

Nakhonsawan Water Supply Co., Ltd. (100%)

Samet Utilities Co., Ltd. (55%)EGCOM Tara Co., Ltd. (15.88%)

Samet Utility Co., Ltd.(55%)

Water distribution business

Industrial water supply business

Shareholder Number of Shares Percentage (%)

1. Provincial Waterworks Authority 2. The Electricity Generating Public Company Limited 3. Norbax Inc.,13 4. Industrial Estate Authority of Thailand

7. Nortrust Nominees Ltd. 8. Aberdeen Long Term Equity Fund 9. Mr. Min Tieanworn 10. Aberdeen Growth Fund 11. Others

Total Number of Shares (Shares)

40.2018.728.214.572.452.081.401.181.020.99

19.18

100.00

311,443,190

40,779,100

23,252,925

17,000,000

Data as of December 27, 2013

8

Good Corporate Governanceoperating business in accordance with good corporate governance, along with the responsibilities toward communities,

shareholders. The stakeholders are also taken simultaneously into account

In the past year, the company had adjusted the application of Good Corporate Governance by focusing on SET’s Principles of Good Corporate Governance for Listed Companies 2012 to be the guidance for business management, also by implementing the principles as much as possible, and creating activities to promote the Good Corporate Governance of the company

levels to work with “Transparency, Honesty, Responsibility, and Competitiveness”

Management Policy

and Good Corporate Governance policy since 1 August 2003. Corporate Governance and Nomination Committee was assigned

Directors to review and revise progressively in keeping up with the current situations. To have new employees to comprehend

the documents regarding business ethics to put in practice

will be required to sign these documents to ensure the acknowledgement of the matters.

Principles and Regulations in ManagementThe Good Corporate Governance of the company comprises

as follows:1. Rights of Shareholders2. Equitable Treatment of Shareholders3. Role of Stakeholders4. Disclosure and Transparency

1. Rights of ShareholdersThe company recognizes the fundamental rights of the shareholders as the law and regulations indicated, as well as the equality and impartiality that shall be received.

2. Equitable Treatment of ShareholdersThe company ensures that all shareholders will be treated with fairness and equality regardless of the occurrence, such respecting the right to attend the shareholders’ meeting and to vote, granting the opportunity for the minor shareholders to nominate

advance.

3. Role of Stakeholders 3.1 Responsibilities toward StakeholdersThe company incorporates business philosophies focusing on responsibilities and equitable actions to assure the stakeholders as follows:1. Fiduciary duties toward stakeholders:

2. Responsibilities toward customers:Continue to manage and develop water resources and maintain other quality services to maximize customer satisfaction3. Responsibilities toward creditors:Follow every terms and conditions and refrain from concealing

refrain from spending loans for any purposes that go against the agreement4. Responsibilities toward employees:Respect the legitimate rights of every employee by creating safe and decent work environment, provide good welfare, offer fair work contracts according to the market, support an equal chance of advancement in career path, build good relationships among employees, and promote the sense of loyalty with the company5. Responsibilities toward business partners:Promote relationships between contractors, suppliers, and investors to help accomplish the maximum mutual interests through the principles of Good Corporate Governance

Operates with a sense of responsibility toward society by operating in agreement with the related regulations and law in order to prevent any effects that will cost lives and properties of people, society, and environment7. Responsibilities toward competitors:Compete and trade with fairness and lawfulness and refrain from

of competitors

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3.2 Policy of Non-involvement in Human Right Violation The company respects the equality and the rights of the employees by following the human right principles protected by the Constitution of the Kingdom of Thailand, Thai laws and other treaty obligations. The company will not take any actions that violate human dignity, right, and liberty, and will not be irrespective of their origins, races, languages, sexes, ages, physical or health conditions, personal statuses, economic or social statuses, religions, educations, political views, or personal matters unrelated to work.

3.3 Policy and Practice against Corruptions and Business FraudsThe company has shown its commitment by joining the Private Sector Collective Action Coalition Against Corruption supported

Commission (NACC).

and other employees from exploiting their power and position. They are to negate the offers such as money, gifts, recreations,

the persons or the organizations that may affect any decisions regarding their duties. In case of bestowing unusually expensive presents or souvenirs upon business associates are unavoidable, permission from the supervisor is required. Moreover, beside the fact that all employees’ opinions and suggestions concerning the subject are welcomed, the company has initiated trainings regarding Good Governance.

3.4 Filing ComplaintsThere are channels for the company to handle complaints, such as illegal or unethical practices, inaccurate accounting entries, or

E-mail : Audit Committee AC_EW@eastwater.com

Mail : Audit committee Eastern Water Resources Development and Management PLC.

10900

4. Disclosure of Information and Transparency

supervise the administration to provide an appropriate communicative system in order to spread important and effective

has already been audited by independent auditors, to companies with common interests. They also encourage the administration to reveal other information, and at the same time, to consider right ways to protect information that is unable to be revealed and has impacts on the company’s property investment decisions and the changes of property prices.

The information will be revealed and publicized through systems of the Stock Exchange of Thailand and via www.eastwater.com. The company provides connecting channels to facilitate customers

e-mail: IR@eastwater.com, and http://eastw-th.listedcompany.com/home.html

In addition, the company provides a compliance unit to look after the practices of rules and regulations that are associated with the Stock Exchange of Thailand and the Securities and Exchange Commission. The compliance unit also takes care of information disclosure through certain channels, such as websites of the company and the Stock Exchange of Thailand, and annual reports. This information has to be correct, adequate, complete and timely as determined by the law, in order to make

capabilities.

5. Boards of Directors’ Responsibilities

business management is one of the key factors that will bring the company to achieve its most important goal which is to

legally responsible for and must comply with the business management principles. The company also has to be responsible

company’s conglomerates and stakeholders.

10

Effects of business management with sustainability importance

Risks which are likely to affect East Water Group

The raw water pipeline management in the eastern seaboard is a business regarding the investment of the water distribution and pumping system and big water distribution pipelines. The company acquires raw water from larger raw water resources from the eastern region. The investment requires a large amount of money and approval from the Royal Irrigation Department who is responsible for the allocation of raw water. The Department gives importance to agriculture, consumptions, industries and the preservation of ecosystems, respectively.

The important changes and challenges that affect the company’s sustainability, both positively and negatively, include:1. Global Warming will affect the amount of water in reservoirs2. Consumers’ self-development of water resources might make them less dependent on the company’s business3. The building of a connecting pipeline from Pra Sae Reservoir to Khlong Yai Reservoir and the construction of the third Nong Pla Lai-Map Tha Phut Pipeline will make the Royal Irrigation Department give the company more opportunities to allocate water. Moreover, the Department will invest in developing a big raw water pipeline network in the eastern region. The pipelines include Pra Sae to Khlong Yai, Wang Tanod to Pra Sae and Phra Ong Chaiyanuchit

East Water Group’s duty in the future investments.

widespread throughout the central part of Thailand, caused many foreign companies with production base here to consider moving their production center to the eastern region, in which they are interested. This will make the demand of raw water for industries and consumptions in the eastern region grow constantly.

1. Risks which are likely to affect East WaterIn 2013, the Corporate Risks were discussed and considered to be likely to affect the company, as followed: 1.1 Water inadequacy It is necessary for the company to constantly follow up the amount of water in water resources to assure that the resources will always be have adequate amount of water for future use. 1.2 Damage to the company’s pipeline system The company provides the preventive maintenance program to constantly examine and repair pipelines. The company has bought the property insurance to cover for losses and damage that might occur to the pipelines. The insurance plan also provides responsibility and coverage for third parties and the business interruption. 1.3 The increase in Ft rate The Fuel tariff on electricity is the major cost for water distribution in the raw water and the water supply business. Therefore, the Ft rate, that is increased every four months, is a main factor that makes the cost of water distribution increase. 1.4 The quality of raw water in the rainy season and pollutions around water resources The quality of raw water is based on seasonal changes and raw water is likely to be turbid in the rainy season. These problems affect the quality of raw water that will be distributed to customers, and thus, increase high production cost to improve the quality of the water.

2. Risks which are likely to cause operations to cease 2.1 The cessation of water distribution due to power failure The company distributes water to customers day and night. The water reservoirs is essential in case of emergency, like when the company experiences power failure and when

Hence, the company needs to reserve water in reserved pand in order to always be able to distribute raw water to customers. 2.2 Risks from drastic accidents and natural disasters When natural disasters or drastic accidents, like earthquake or terrorism occur, the company has prepared emergency plans to handle the events that are likely to happen. It has also provided property damage and business interruption insurance, and as well as insurance plan that offers coverage for damage by the third party.

5. The electricity price adjustment made by the Provincial Electricity Authority will increase the production cost.

the company’s operating areas will make the company does its business effectively as planned as it is not banned from the communities.

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Stakeholders’ connectionsEast Water Group has conducted annual surveys on customers’ opinions and satisfactions to the company since 2009. The company will use information from the surveys in order to evaluate its performance and plan about the operations that will adequately and appropriately meets satisfactions and expectations of the stakeholders. The company has concluded demands and expectations of every group of main stakeholders in the previous year, as shown in the table below.

Rewarding compensations in the form of share prices and dividends

Adequate amount of raw water with constant water pressure

Demands and expectations are divided into three parts to suit three levels of employees, as followed:

and operation and management which follow the organization’s visions

rewards and welfare, and learning support

Adequate amount of water for consumptions and agriculture in every season

Hiring conditions and fast and transparent paycheck

Stakeholders Demands Expectations

Decent water quality which is able

economically

To be participated in water resources management and not feeling deprived of their rights

the transparent and updated hiring information in order to have an opportunity to present their work

1. Shareholders

2. Customers

3. Employees

4. Communities and society

5. Distributors and partnerships

3. Financial risksRisks from higher interest rates The company carries

its vast construction projects. The company will consider and decide about its investments thoroughly and carefully.

offer stable interest rates.

4. Risks from community’s objection to the company’s business operationsIn each year, the company necessarily needs to use large

amount raw water in water resources in the eastern region. This might affect the company’s overall image is using water in the community. Nevertheless, the company has divided its budget to spend on developing life quality and environment. The company will as well build good

constantly support local development projects in order to

company.

12

The company has used the above information to design its operating system, to set strategies and to make operation

Footnote: Ways of building partnerships between other groups of stakeholders are detailed in topics concerning those groups of stakeholders which are:1. Employees: Water Quality’s Issue 4 – support of employees’ rights and participation to create values of being East Water Group’s employees

plans that will satisfy each group of stakeholders and create the evaluation index of the company and employee.

Ways of building partnerships between each group of the company’s stakeholders are presented in the table below:

Sender

High-Level Executives

High-Level Executives

High-Level Executives

Executives (Operation Customer Service Dept.)

Executives(Operation Customer Service Dept.)

Executives(Operation Customer Service Dept.)

High-Level Executives

High-Level Executives

High-Level Executives

High-Level Executives and

Project Managers

High-Level Executives

High-Level Executives

High-Level Executives

High-Level Executives

High-Level Executives

IR Managers

IR Managers

Frequency

Every month

Twice/Year

4 times/Year

Everyday

As Required

As Agreed

Quarterly

1 time/Year

Every month

1 time/Month

1 time/Year

1 time/Year

1 time/Year

1 time/Year

Quarterly

Everyday

1 time/Year

One-way Two-way

Ways of Communications

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Methods of Communications

1. War Room Meeting

2. Customer and Sponsor Meeting

3. Customers’ visits and opinions

4. Customer (WAREE) & Company Website

5. Responses to inquiries and suggestions

of solutions

1. Company Website

2. Supplier & Key Partner Meeting

3. War Room Meeting

4. Progress of Project Review Meeting

5. Seminar EW meet Customers

1. Pre AGM Meeting

2. AGM Meeting

3. SET in the City

4. R Meeting with investors

5. Company Website (Investors’ Relations)

Receiver

Customers

Distributors/

Alliances

Stakeholders

2. Communities and society: Water Quality’s Issue 4 – acceptance and participate of people in the operating areas and in the society to support strength and stability of the operating procedures

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Supply Chains System

Memberships of the sustainable development network

The above diagram shows the company’s supply chains in

and partnership, the Royal Irrigation Department, to take care of reservoirs and to allow the company to legally use raw water or limit the use of the water. The Department

1. Working group of the Government and private sectors, established by the Federation of Thai Industries, that are jointly responsible for the management of water resources in the eastern region2. Water war room working groups in the eastern region which consist of industrial sectors, the Industrial Estate Authority of Thailand, the Federation of Thai Industries, The Water Institute for Sustainability and the Royal Irrigation Department3. The committee and the academic sector of the Thai Waterwork Association (TWWA)

4. The committee of Thai Hydrologist Association5. CSR Club Committee of the Thai Listed Companies Association

to be part of Thai private sectors to stand against corruption. The project is jointly developed by seven leading organizations, namely, the Thai Institute of Directors, the Thai Chamber of Commerce, the Thailand International Chamber of Commerce, the Thai Listed Companies Association, the Thai

Organizations, and the Federation of Thai Industries.

namely, Nong Kho Reservoir, Dok Krai Reservoir, Nong Pla Lai Reservoir, Nakorn Nuangkhet canal and Pra Sae Reservoir. In addition, there are water supply pumps from Rayong

are rented from the Ministry of Finance and are constructed and owned by the company.

Administrative,Finance Infrastructure

Legal, Accounting, Financial Management, IT, R&D.

Human resourcesManagement

Personal, Recruitment, Training,Staff planning, etc.

Product andTechnologyDevelopment

Design Construction and Supervision, Ceda and Control System

Procurement Supplier management, Subcontraction, Specification

Prim

ary

Act

vitie

sSu

ppor

tA

ctiv

ities

Profit Margin

Stakeholder

Satisfaction

Corporate SocialResponsibilities

Sales and Marketing(Pre - Sale)

Water ResourcesManagement andDevelopment

Raw Water Supplyand DistributionSystem

Repair and MaintenanceSystem

141414

MaterialityThe materiality or important issues that are featured in this sustainable report were discussed in meetings and selected by the company’s representatives from the executive level and employees from two important sectors:1. The Support Sector October 20132. The Operating Sector at the Rayong’s Operation

There are various important issues that were selected. First of all, The selection committee used the Stakeholder Inclusiveness procedures as the core of this report’s structure to connect the selected issues with the issues in which the stakeholders are interested. After connecting the issues, the committee would select and prioritize them by using the Materiality process. The next step involved an operating meeting with the assistants in order to select issues that are important to sustainable development. Lastly, all information was put into corresponding topics, which had been set, and was written as a report that sticks to the rules of the Global Reporting Initiative (GRI) G4. Appropriate issues presented in this sustainability report are divided in to two aspects, as followed:

1. The important issues that have impacts on the stakeholders within the organization

more opportunities in advancement

life and working life and creating happiness

punctually, accurate, complete and true to the accounting standards

business

working in operating areas

2. The important issues that have impacts on the stakeholders outside the organization

that must be taken into consideration are the amount of water, water pressure and the quality of water

areas

and local authorities)

in order to achieve customers’ demands, to reduce energy consumption and to costs least damages

About this reportThis sustainable development report was written to show the company’s performance and results that have impacts on economy, society and environment. East Water has written and published the sustainable development reports since 2011 and this is the third report which shows the company’s performance during January 1st to December 31st of 2013. The company has used the Core of the Global Reporting Initiative (GRI) – G4 to write this report which covers the entire performance of the company in every operating area.

Furthermore, East Water has determined important content by revising topics and issues received from its stakeholders. The company has accumulated opinions from meetings, interviews of the stakeholders outside the company to revise and put them into orders by external experts to make this report the most perfect and transparent.

This report is available to be downloaded from the East Water website.

Please contact the Public Relations Department through the information below, if there are any inquiries to the content of this report. Eastern Water Resources Development and Management Public Company Limited

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16

WATERSECURITY

“Water” is one of the most important natural resources. It

which is vital to lives in every steps of their biological clock. In fact, only three percent of entire water on earth can be used for consumption purposes contrasting the demand is continue to rise, not to mention the amount of water wasted in careless actions. Consequently, water, an

the needs in the future. This brings about the systematic water management to respond the demand in sustainable manners.

Due to the necessity of water management as mentioned above, Eastern Water Resources Development and Management Public Company Limited, or East Water, was

the operation, as well as respond to the demand in water usage of all sectors. The company has a mission in managing water grid in the Eastern Seaboard of Thailand, covering three provinces, Rayong, Chonburi, and Chachoengsao. The details are presented in the diagram below.

Therefore, East Water is concentrating on how to secure “water” resources managed by the company in terms of

2

Royal Irrigation Department

Eastern Water Resources Development and Management PLC.

For factories and industrial estates

For consumption

Mission: To develop and allocate water resources for agricultural sector through irrigation systems

Mission: To develop and manage raw water distribution pipeline system

and satisfy the customers and consumers. Thus, the essence of “water security” will facilitate the security and sustainable growth considering the core issues as follows:

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Water resources in East Water management to cover the area and meet the demand of every group of customers

Currently, the report shows that 15 main reservoirs located in the Eastern of Seaboard have been developed with the total capacity of 1,101.59 million cubic meters and the

Reservoir Province Capacity Average Usable Volume (mcm) (mcm/year)

2. Nong Kho Reservoir Chonburi 3. Mab Prachan Reservoir Chonburi 4. Nong Klang Dong Reservoir Chonburi 5. Huai Sak Nok Reservoir Chonburi

7. Huai Sapan Reservoir Chonburi

9. Khlong Rabom Dam Reservoir Chachoengsao

11. Khlong Si Yud Reservoir Chachoengsao 12. Dok Krai Reservoir Rayong13. Nong Plalai Reservoir Rayong14. Khlong Yai Reservoir Rayong

Total

117.0021.10

7.907.034.873.84

10.00

30.00325.0071.40

40.10248.00

1,101.59

15.7814.03

3.985.597.00

48.28493.00

50.93

1,520.05

usable volume of 1,520.05 million cubic meters per year as listed in the following table.

18

adequacy of water content of these main reservoirs with continuity and systematicness through various approaches. For example, in three main reservoirs (Dok Krai, Nong Plalai

In addition, in order to prepare for the upcoming dry season during January and May, the company will allocate water from Prasae Reservoir and reserve it in Nong Plalai Reservoir to have the year-end overall volume of the three reservoirs of 275 million cubic meters or more.

Chachoengsao

Reserved Pond is also used to support the operation in addition.Chonburi

Reserve Pond.Rayong is the main service area. Main sources of the company are as follows : Dok Krai Reservoir, Nong Plalai Reservoir, Khlong Yai Reservoir, and Prasae Reservoir.

Pump Station

Regulating WellRecieving Well

Emergency Pond

Industrial Estate

Factory

Main Water Source

Head Tank

Reserved Water Source

Existing Pipe Network

Existing Pipe Network

Constructing Pipe Network

Constructing Pipe Network

Raw Water Pipe Line (EW)

Raw Water Pipe Line (RID)

Consumption

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Action Plans for Water Resource Security

has created three action plans to promote water resource security as follows:1. Water allocation planning project and relationship building activities for the related institutions and organizations2. Khlong Tubma Reserve Pond developing project3. Construction pumping and pipeline system network Prasae Reservoir – Nong Plalai Reservoir The cumulated results according to the plan designated for each project are successful.

Measures against Drought

To manage the risk of water scarcity, the company has performed some additional operations to systematically prevent water shortage in 2013 and 2014 by running simulations to study the scarcity. Case study1. Average water volume in the reservoirs per year2. Water volume in the reservoirs according to 2004 and 2005 (2.5%)3. Twenty years lowest water volume in the reservoirs (5%)4. Water volume in the reservoirs according to 1997 (10%)

The company has prepared the measures against drought as follows:1. Coordinate with the Royal Rain Operation Center in the eastern region through the operation centers located in Chanthaburi (since February 2013) and Rayong (since April 2013)2. Allocate water from Prasae Reservoir – Khlong Yai Reservoir

December 20135. Decrease water allocation from Rayong to Chonburi and use water in Chonburi area to its full capacity

area in case of critical situations

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er V

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e (m

cm)

275.25 mcm = Stored water: 275.25 mcm

Jan

2013

Feb

2013

mar

201

3

Apr

201

3

May

201

3

June

201

3

July

201

3

Aug

2013

Sept

201

3

Oct

201

3

Nov

201

3

Dec

201

3

Jan

2014

Feb

2014

mar

201

4

Apr

201

4

May

201

4

June

201

4

July

201

4

Aug

2014

Sept

201

4

Oct

201

4

Nov

201

4

Dec

201

4

Preparation to store water in 2013

31 Jan 13 = 244.21 mcm

The beginning

of Apr – Aug: 180 mcm

The beginning

of Nov: 275 mcm

240 mcm = Year-end controlled

water volume: 245 mcm

Lowest volume: 31.7 mcm

Average water volume per year

The 2012-2013 water situation simulation of Dok Krai Reservior, Nong Plalai Reservior and Khlong Yai Reservior in case of there is water storage in both years

20122012 2013

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The company takes some effects from seasonal changes because the operation is regarding water resources. The demand for water consumption during dry seasons is extraordinarily high. However, most of the industry sector is not affected at all. Some customers have created their own water reserve pond to harvest rainwater and reduce the use of water provided by the company during rainy seasons.

As for the seasonal effects toward raw materials of the company, such as the amount of water stored in the reservoirs which varies by season - the more during the wet and the less during the dry, especially the drought in 2005, it cannot prevent the company from the continuous water distribution to the customers.

Seasonal changes which affects weather conditions and may affect the business

Maintaining water pressure and pipeline system for the

To supply raw water, the company has signed contracts sales with three groups of customers as follows:1. Industry Estates: including the estates in the authorization of Industrial Estate Authority of Thailand (IEAT), the estates that IEAT is a co-investor, and private industrial estates and parks

2. General Industry Parks3. Consumers: mostly including providing wholesale services to an organization in the government sector, which is Provincial Waterworks Authority, except some cases, such as Queen Sirikit Hospital, Nikhom-sang-ton-eng Rayong, and Mabkha District Administrative Municipality

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Regarding water grid management, the system comprises of four main raw water pipeline systems, including:

1. Nong Plalai – Mab Ta Phut Pipeline System 2. Dok Krai – Mab Ta Phut Pipeline System 3. Nong Plalai – Nong Kho Pipeline System 4. Chachoengsao – Chonburi Pipeline System

Considering the capacity of each pipe in the system, the percentage of utilization has increased exponentially as shown in the table below, especially of Dok Krai – Mab Ta Phut, which reached its full 100% capacity in 2011. Due to the demand assessment in the future, the company has installed the third Nong Plalai – Mab Ta Phut pipelines to extend the utilization capacity to 105 million cubic meters per year and to serve the consumption demand within the next ten years.

Area Pipeline System Capacity Utilization, % (cbm/day) 2008 2009 2010 2011 2012 2013

Nong Plalai – Mab Ta Phut (3rd line) 288,000 4%

Chachoengsao Chachoengsao - Nakhon 205,479 29% 15% 28% 28% 33% 23%

The percentage of Pipeline System Utilization

The quality standards of services consist of pressure and quantity of water according to the contract and the Customized Service Level (CSL), which are evaluated separately in accordance with each customer group. The evaluated results show that the service area of Pluak Daeng

area because of its location that is neighboring the pumping station of Nong Kho Reservoir, which causes some of the customers to be provided water with considerably high pressure. However, it has no damaging effects for their production lines. The average pressure of every customer

in the area is in an estimated 3.0 bars. Nevertheless, if there are any changes in water pressure of each pipeline, the Operation and Customer Service Department will always

another step toward the production management system of the customers. In order to meet customer’s satisfaction, water pressure should be no less than 1.0 bars compared to Societe du Canal de Provence Company, which exceeds

than 2.0 bar.

22

The company is willing to reduce the Non - Revenue Water

that the company has developed leak management as the decreasing rate of the company’s NRW compared to the competitors has improved since 2012.

However, the evaluation also depends on the size of the water grid and the number of distribution point. To control

expert from Societe du Canal de Prouence (SCP) France is

Non-Revenue Water Reduction

borrowed to inspect and assess the pipeline system as well as other tools and controlling equipment. The results indicate that the distribution and pipeline system of the company has to be equipped with some additional technologies, especially the gauging technique to calculate the price, which is already planned to be changed into the automatic billing system in a few years in order to create

monthly calibration procedure.

The pipeline systems are controlled with Supervisory Control and Data Acquisition (SCADA) system, which is up-to-date and able to control the distribution of all 15 stations in three provinces at once from the Operation

system that helps reduce the labor used and the resolve the delay in water distribution.

Water Distribution System Maintenance

The percentage of pipelines and other equipment being maintained and repaired according to the annual maintenance plan is presented in the below chart. The operation supports the NRW reduction and provides 100% availability of the system.

BETTERpercentage

East Water

2552 2553 2554 2555 2556E

SCP Target

100

98

96

94

92

90

88

The Availability of Pipeline Controlling System

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Action Plans to Maximize the Capacity of Water Grid

The Customer Service Improvement (CSI) team conducts the availability percentage statistics of pipeline system to be the information for daily, monthly, and yearly system and equipment watch. The team also concludes and presents the accumulated results to the management in form of a report to improve overall operation. In 2007, the company has a discontinuity in providing water distribution service

throughout 20 years of service (except during the scheduled maintenance) and has never been stopped ever since.

In 2013, the Company ceaselessly develops its capability in water distribution to the customers with adequacy and continuity, which is the development to ensure the highest customer satisfaction in terms of services and distribution quality, as well as to reduce the NRW. In order to achieve the matters, six main action plans have been created as follows: 1. The ongoing project to enhance distribution capability in Laem Chabang

Phra - Chonburi pipelines (Regulating Well) 3. Construction control

5. Water distribution management

The company relentlessly maintains the reliability in the water allocation and distribution system by stipulating the goals aimed to prevent any damages to the machines and other equipment that may stop the operation or cause malfunctions of water distribution system in the main pipelines. However, the break in the distribution for the period of a scheduled maintenance is limited within eight hours, and the Class A machine must be kept running at all time.

The operating results according to the plan of each project are considered successful.

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Cooperation between the related government and public sectors to promote strength and security in operation process Currently, in the Eastern Seaboard area, there are no major competitors in operating the business regarding pipeline system development and water distribution for industrial customers and individual consumers. Moreover, chances for the direct competitors to emerge are also very minimal because the

on major reservoirs authorized by the Royal Irrigation Department, and then concentrating on other replaceable water resources, such as underground water, which has some limitations in

those new entrepreneurs from entering the business is the considerable amount of investment in water distribution through pipelines concerning the pipeline installation, pumping stations, water reservations, and the pipeline connecting operations that have to cut through the public spaces. Hence, the cooperation from government sector and state enterprises

elevate the cost.

On the other hand, East Water, which is founded upon the Government’s vote, has an advantage when it comes to cooperation from the government sector. The operations with

government and public sectors are described below:

1 Operations in accordance with the contract and cooperation among partners of contract to maximize the

provide services that require long-term contracts or concessions from government sector, promoting cooperation with the government department, which is a party of contract, is a vital essence to the operation.

Currently, the company has the important contracts, concessions, and permits from the government sector as follows:

Reservoir, Dok Krai Reservoir, Nong Plalai Reservoir, Prasae

Khet

operate from the Ministry of Finance with a reasonable returns during the period of the contract.

December 2013, the company signed the 11 contracts with Provincial Waterworks Authority and Local Administration Organizations.

2 Water War RoomIn 2005, the drought affected the industry sector and the people in the eastern region, which brought about the incorporation of industrial entrepreneurs. The Water War Room was created to be the information and water management center of the eastern region and to solve the problem cooperatively. The members include the Royal Irrigation Department, East Water, the Industrial Estate Authority of Thailand, and the Water Institute for Sustainability under the Federation of Thai Industries. The executives of each related organization are to take the suggestions and advices consequential to the Water War Room in consideration for the collective solutions. The important matters in water management consist of the number of water demand in the future along with the details of water resources, weather conditions, and the quality of water. This information is to be used in the assessment of water situations, risks, and water management plans for the future and consistently presented during the meeting. The Water War Room is the model that shows a great promise in resolving the problems cooperatively.

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Corporate social responsibility operations to gain social and community acceptance and promote the stability in the operation process

The company has initiated policy on Corporate Social Responsibility (CSR) as a framework since before the foundation

scheme and strategic plan in accordance with CSR are also created, reviewed, and revised over time to operate several kinds of CSR activities regarding the development of life and environment quality of communities inside and outside the service area. In doing so, the objectives and needs of the communities and the company’s visions are merged together. To follow the highly regarded notion, “when water is secured, every life on earth is secured as well,” the company creates a three-dimensioned framework for the development of community, society, and environment as follows:

1. Basic Infrastructure development is about developing the fundamental public utility concerning water for the community to have access to clean water and have better well-being in the long run through various activities projects, such as:Community pipeline system project is operated by recovering

and repairing the pipeline system for the community to

dependency. In 2013, East Water successfully ran the project for 3,803 households in Rayong.

is the free of charge

area by providing mobile drinking water trucks installed with Reverse Osmosis (RO) technology to hand out bottled and plastic-glassed drinking water, along with free vending machines featured RO technology, as well as free raw water.

support to the Director His Majesty´s Private Affairs Division,

mission. has progressed

for more than 250 schools during 2011-2013 and each includes the continuous assessment follow-up.

is

the project incorporated with government sector in both central and local administrations conducted by mainly monitoring the quality of water in the upstream side of the reservoirs.

the project is incorporated with various government

District of Rayong, along with release 1,500,000 aquatic animals.

2. Socio-Economy is the framework for social and economic development in accordance with the basic way of life, which proceeds through the distinctive projects and activities, such as the meeting of community network, increasing revenue by reducing expenses according to the

Foundation, and Friends meet Friends Project.

3. Life-Long Education is the foundation of long-term changes and development focused on providing all types of education - formal, informal, and non-formal - of the community through the projects, including East Water Young Leader Camp, Rayong Knowledge Park (RK Park), and 3R Water Management Innovation Contest (Reduce, Reuse, Recycle).

The 3R Water Management Innovation Contest, in corporation with the Ministry of Natural Resources and Environment, is the important highlight of the previous year. The innovation will be put into practice in the business and communities. In 2013, hopefuls from 40 universities all across the country participated in the contest.

26

Communication channels between East Water, society, and community

Sender Receiver Medium Frequency Communication Form One-way Two-way

1. The meeting of community, Provincial Administrative Organization, Municipal Administrative Organization, and other government sector

2. The business open house3. The network meeting and vocational training project4. East Water Young Leader Camp5. Company’s website

Community

Community

Executive

Corporate Communications

Department

Every quarterEvery year

As requested30 times/year

2 times/yearUpon Activity

XX

XX

XXX

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To provide essential data and information to be ready to use, the company has determined its operations to meet the ISO 9001 and the ISO 14001 quality standards. Therefore, this results in clear operating procedures, such as keeping quality data and indicating power of approval, which make operation investigation effective by internal examiners and external assistants of the company. The company has prepared its basic structures of information technology by examining strategic plans, operating plans and needs of regular customers. There are three crucial goals, as followed:

1. Information correction, accuracy and reliability 2. Up-to-date information 3. Safety and secrecy

The company installed a computer program which stores and provides information technology on the computer networking hosts and the standardized computer networking equipment at the host computer operating room, located

program also features the Server Facilities system that meets the Data Center’s standard, to ensure customers that the data and information are available at any time and always accessible.

Systems creating assurance in the stability of information technology

power for 8-10 hours2. Precision Air-Conditioning Unit with humidity control3. Water Leak Detector System4. Fire Alarm, Smoke Detector and Automatic Fire

management which supports the stability reinforcement of the company’s administration

substances which cause no damages to computer hardware 5. Environmental Monitoring System which monitors surrounding environment and operating conditions of computer hardware – this system will inform supervisors via SMS and put the information on the event logs

host computer operating room

gateway control system by proximity card and computerized systems

In addition, East Water also extends maintenance agreements with contractors every year to ensure that the quality of its basic structures of information technology will make the data and information ready to be used at all times. The Information Technology Storage System and the Supervisory Control and Data Acquisition (SCADA) usually provides information backups every quarter and every year in case of emergency and safety of the database, which stores backup information at other place.

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The systematic risks management which supports stability and reliability in East Water Law ComplianceThe company established the legal department and the CG section to be directly responsible for giving opinions about law compliance of the company’s business, as well as to promote law and ethics compliance to other institutions. Each sector will evaluate itself every year by following the principles, regulations and laws appeared in the Law Compliance Check List.

Planning to handle risks of the company 1. Important corporations by the company’s executives: Executives in the high level should participate in the strategic planning to create a nice working atmosphere that will contribute to the company’s achievements and strategic objectives. Therefore, the executives are devoted to taking part in planning each strategies altogether. They also organize the risks evaluation of every operation to ensure that there are measures to control the risks which are likely to take place. Moreover, the executives monitor and evaluate the company’s performance in many ways, like an annual report using Key Performance Indicators (KPIs), risks management plans, advancement of projects, problems

and obstacles, issues on examination and evaluation of the

with the ISO standards and related regulations. Internal Auditors (IA) will report in the Management Meeting (MM Meeting). If the company’s performance is not as successful

to the problems, and make improvements. Issues that are likely to cause high-level risks to the company will be discussed in the Risks Management Committee meeting in order to reduce, transfer, or cease the operations that cause the risks. Departments, responsible for the internal investigations, have to solve problems that they have agreed to do so with the investing committee. 2. Enterprise Risks Management (ERM): The company focuses on responding to emergency and continuity in operation through the Enterprise Risks Management, beginning in April to June every year. Executives and managers from every department will collaborate with the Enterprise Risks Management to indicate and evaluate the risks and put

levels:

Nevertheless, the company divides the risks into two levels to provide convenience in managing risks, and inventing measures to reduce and protect risks and annual risks management plan, which have to be approved by the Risks Management Committee. After that, the company will follow the risks control plan, write reports regarding the results, and revise risks management plan in every quarter with the committee. If the company faces the risks affecting environment, it will hold the evaluation of the emergency according to the ISO 14001 standards to indicate and revise protection measures and prepare to respond to the environmental emergency, as shown in the diagram below.

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Enterprise Risk Management : ERM

Business Continuity Plan: BCP

will continue its operations despite the occurrence of

Plan consists of:

operations and water distributions to customers

Each plan connects to and supports one another. The company organizes practices of these plans at least once a year.

Continous Process

Vision Mission & Value

Evaluate & Review for Improve

Corporate Level Strategic

Bussiness Group

- Risk Management Plan- Business Continuity Plan

Day-to-Day operations and Decision making

Process

Set

Monitoring

& Evaluation

RiskResponse

Control

Activities

AssessRisks

Identify

Event

BOD

All departments

All employees

ERM, Executives & Vice Presidents

303030

supports strength and stability in operations

part. For this part of the report, the company will discuss its systematic management of the Supply Chains System, as followed:1. The supplier supervision by the ISO standards: The company follows the ISO9001 standards for its quality management in order to supervise important suppliers and

partners registration. The Procurement Department will examine

and the ISO 14001 standards, environmental conversation, the past performances, and negative behaviors to society. This

approved by high-level executives.

2. The thorough and concise procurement supervision: Every time there is a purchase, buyers will write Terms of References (TOR) to indicate the scopes of procurement and other importantly special conditions to suppliers. When both parties reach the sale contract agreement, buyers will be responsible for the quality control of the supplied work only for the service, and the Warehouse Department will be responsible for the spare parts examination. Meanwhile, big

taken care of by the Engineering Department until those projects are complete. The company will evaluate suppliers every time they deliver products and services in order to see whether the

receive fewer points, they have to improve their performances

3. The process of creating values in investments: The company creates values in investments by reducing failures and controlling costs, as concluded below: 1) Investment Cost: The company has to study investment appropriateness according to procedures determines by data and information of its corporations and other related factors. This will bring about the accuracy in estimating sales in the future and the ability to invest in adequate amount of water

in the right period of time. When analyzing a project, the

worthiness, risks, and environment, both the Environmental Impact Assessment (EIA) and the Health Impact Assessment

is approved, employees will have to write a report on its operation, budget, and advancement to executives and the related committee. The report will indicate problems and obstacles in operating the project, as well as control costs of the project and effectively prevent failures in operations.

2) Operating Expense: There is an expense control by determining the limitations of budget which has to be

Expense Control is improved and revised in the second quarter of the year to make the expenses compatible with the income and make them follow the changing situations. In addition, the company also controls the main expenses, like the cost of electricity, and distributes water on the Off Peak and the On Peak periods to reduce the cost. Moreover, it organizes an energy consumption project to promote the appropriate use of resources. 3) The accurate prediction of customers’ demands will not bring about waste of investment funds or losses of interests that are obtained from the supply of the investment funds sources used in the project.

Additionally, the company also reduces of the procurement cost by accumulating the purchases of many sectors and

audit assistants and internal auditors for the whole company group. This empowers the company’s price bargain to distributers.

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32

WATERQUALITY3WATER QUALITY that is sustainable, for East Water, does

not mean just focusing on the “water”. While the water produced and managed by our organization must be high-quality, up to our standard, and suitable for consumption, the quality of our human resources and internal management must also be on the same high quality level. Therefore, WATER QUALITY, considered sustainable by the Company, covers the various aspects as follows in this part of the report.

The quality of the raw water coming into our water management process must meet the standard and must be suitable for uses.The water quality of surface water resources can be categorized into 5 groups according to their uses. Each quality group can be described in details as follows: Group 1 Natural water resources without any kind of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection needed 2. Natural breeding of common aquatic organisms 3. Ecosystem conservation of the water resources

Group 2 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Aquatic animal conservation 3. Fishery 4. Swimming and water sports

Group 3 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Agriculture

Group 4 Water resources with particular kinds of waste-water contamination. These water resources can be used for: 1. Consumption and general uses, with the regular process of disinfection and water quality improvement needed 2. Industry

Group 5 Water resources with particular kinds of waste-water contamination. These water resources can be used for transportation.

Every month, the Company has delivered the samples of raw water collected from each water resource that has been distributed to the customers for the monthly quality analysis. Each sample was tested on 44 parameters. This report, however, is focusing on the 4 main parameters - pH, dissolved oxygen, turbidity, and chloride – which are the indicators for the salinity of the water.

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Parameter 1 pH (Potential of Hydrogen ion)

The pH levels of East Water’s resources were in the normal range, between 5-9, according to the quality standard of surface water resources of Group 2, 3 and 4.

Parameter 2 DO (Dissolved Oxygen) which is the amount of oxygen dissolving in the water.

In 2013, the average DO was 4.40 according to the quality standard of surface water resources of group 3

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present.

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Parameter 3 Turbidity

The average turbidity of East Water’s resources was less than 30 NTU, except for the Rayong River’s annual average which

The high chloride level would increase the salinity of the water. Most of our chloride levels were less than 50 mg/L, except for the Chacheonsao’s annual average which was

was 8,408 mg/L. These two sites had higher chloride levels than the previous year because of the seawater intrusion that tends to keep rising. The future prevention and solution plans to abate this intrusion will be necessary.

Parameter 4 Chloride

The US Environmental Protection Agency (EPA) has set the standard level of chloride in tap water at lower than 250 mg/L. The Company, therefore, would stop draining and distributing raw water for the tap-water producing customers when the chloride level increases over 250 mg/L, and over 50 mg/L for the customers in the industrial estates.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present.

Note : Rayong Area has used the data of Reservoir Nong Pra Lai, Reservoir Dok Krai and Reservoir Kholong Yai to present.

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Work environment and safety management in the workplace The Corporate Affairs Department is responsible for the

also responsible for the work environment at the operation centers, which are registered as factories and must abide by the Factory Act enforced by the Ministry of Industry, and facilitates the transportation between the work areas too.

Health, Safety, and Hazard Prevention

We are determined to ensure that the quality standard of our employees’ health, occupational health, environment, and safety are high.

As for the safety aspects, the Company has arranged for the assessments of health, safety, and hazard prevention, and we issued the plans and preventive measures to control our operations according to the incident prevention plan. We monitor all incidents and systematically assess the results, then issue monthly reports to the Safety, Health and Environment Committee. This committee monitors the processes using the important indicators as seen in the table below.

In 2013, the Company arranged the action plans for safety, occupational health, and work environment. The activities and actions taken were as follows: 1. The management of safety, occupational health, and work environmentThe details of the activities already proceeded were as follows:

monitor the assets along the pipeline

pipeline

Phra reservoir

Lai pump station 2-3

Goals Indicators

In order for EW to support all the employees in the aspects of health, safety, and hazard prevention.

1. Numbers of annual medical examination for employees (1 time/year/each employee)2. Numbers of the workplace air quality examination (2 times/year/each area)3. Amount of work hours without accident and Numbers of accidents4. Examination results on Workplace lighting and Noise level (less than 90 decibels) 5. Numbers of unusual entries to the working areas by all the staff and visitors

adjusted the plans in accordance with the regulations All the activity plans had the complete details describing their goals, indicators, frequency, persons in charge, activity duration, and reference to the laws (if necessary).

2. The operations done by the safety committee The committee held the regular monthly meeting and arranged the monitoring of the safety management as stated in the article 1, and also assessed of work environment, safety, occupational health, and hygiene as stated in the article 4

on every level The appointment documents were processed within the legitimate time frame.

36

4. The assessment of environment, safety, occupational health, and hygiene in the workplace The Safety, Health and Environment Committee conducted the regular safety audits every month and cooperated with other units in the Company to take these following actions in compliance with the complete safety standard.

1) The assessment on safety and hygiene

cranes

and operational areas

suppression systems

Engineer or higher)

physicians

personnel in order to put it into practice

Equipment) for the staff, according to their job characteristics and risks

2) The assessment on work environment and work conditions

measurements on these subjects : lights, noises, heat, air quality in the building and chemical concentration

water in the operational areas

5. The preparation of safety documents and reports for the government agencies

These documents and reports were, for example, accident investigation report, safety operation report by the safety

(for the Department of Labour Protection and Welfare), examination report on the parts and components of the stationary cranes, elevator safety report, building examination report, and the request documents for the possession of dangerous materials.

Last year, the Company had prepared and processed all the above-mentioned documents promptly and completely, therefore there was no warning for the delay or the absence of any document from any government agency.

emergency drills

operational areas, and pump stations in Rayong, Chonburi, and Chacheonsao

in the pump station building in Nong Kho, and the booster pump at Dok Krai Reservoir and Nong Plalai Reservoir

7. The support for safety activities and events

safety, occupational health, and environment

organized the preventive measures

The training exercises for employees on the subject of health, safety, and occupational health according to the exercise plans on safety, health, and environment

group of employees according to their job characteristics, risks, and job roles, as follows:

employees

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construction foremen

The constant and professional care for both physical and mental health of the employeesThe human resources department arranged the constant annual health examination for the employees and organized

The fair and indiscriminate criteria

The criteria for the fair selection of new employeesThe Company has declared these criteria for the selection of new employees since 2010. The two main criteria are

each different position

(MS Word, Excel, Power Point). The candidates for the

application softwares related to their work.

license is preferred when apply for an engineer position,

are preferred for the candidates of the other professional positions.

As seen above, the Company has set the fair criteria for the educational background without differentiating the types

or rankings of the institutes. In case that the candidates graduated abroad, we only require that the institutes are OCSC-approved, but we still require the same level of GPA as those graduated from domestic institutes. As for the

the necessary knowledge and competencies for the positions. The important facts about the criteria for employee selection is that the Company does not hold the sex of any candidate as an important criterion, except for when the applied positions require that the employees must work in the

particular positions will be considered on a case-by-case basis.

The above-mentioned criteria for employee selection state our organization’s principles of the fair and indiscriminate

that the male-to-female ratios of the new employees were close in 2013.

other activities to create the “Happy Workplace” such as occasional activities, the constant blood donation events - awarded by Phramonkutklao hospital for having been a constant supporter of blood donation for over 5 years, religious activities, and the promotion of the recreational activities by

survey result on the work environment was higher than 3.5 (high level) in 2013.

male

female

0

2

4

6

8

10

Q1 Q2 Q3 Q4

numbers

New Employees in 2013

9

7

3

5 5

8

2

0

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We promote employees’ rights and participation in order to create value of being East Water’s employeesThe details of communication channels currently used in the organization can be concluded as follows;

Leaders and chief executives have been emphasizing on corporate culture or TCC – Teamwork, Communication, and Coaching. There are several internal communication channels for instance meetings, emails, phone calls, SMS alert including LINE application to inform all employees of the news simultaneously and rapidly. In addition, employees are allowed to send their feedbacks and complaints directly

In case of emergency, CEOs will call upon a meeting, consider options together and opt for the most appropriate one.

Then, they will notify directors of all departments and everyone involved via LINE groups immediately.

Formality Channels

1. CEO Mail box2. CEO - Employee Meeting3. MM Meeting

5. Outing

7. Meeting for Strategies and KPIs8. Monitoring9. Coaching

10. Welfare Committee Meeting11. Security Committee Meeting12. Meeting for Customer Service Improvement13. Intranet, Notice, E-mail

1. Walk & Talk with Employees 2. Meet & Meal with Employees

4. Employee’s Parties & Clubs5. Lunch Talk & Tea Time

7. Phone Calls & LINE Application

Frequency

up to considerationonce a yearMondays

every month

once a year

once a year

once a yearevery month

up to consideration

every quarterevery monthevery month

everyday

up to considerationup to consideration

up to consideration

up to considerationup to consideration

occasionally

everyday

Form

alIn

form

al

Types of Communication

1-way 2-way

X X X X

X

X X X X X X X

X X X X X X X

X

Sender

Chief executivesChief executivesChief executivesChief executives/

Corporate Committee

Chief executives

Chief executives

Chief executivesChief executivesChief executives/

ExecutivesWelfare CommitteeSafety Committee

Executives

Chief executives

Chief executivesChief executives/

ExecutivesChief executives/

ExecutivesExecutivesExecutives

employees/Executivesemployees/Executives/

Chief executives

Receiver

All employeesAll employees

ExecutivesExecutives

Manager

Manager

All employeesAll employeesAll employees

ExecutivesAll employeesOperation-level

employeesAll employees

All employeesChief executives/

ExecutivesAll employees

All employeesAll employeesemployees/Executives

All employees

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The selection process for the committee was as follows;

Employees’ Participation under East Water’s Welfare CommitteeAccording to the law, welfare committee in a workplace is an intermediary who conveys requirements of employees to employers, provides consultation and conducts an audit to examine the organizational welfare management. The establishment of “welfare committee” is not only an act manipulated by the law (Labour Protection Law 1998), but also an encouragement for employees to discuss with their employer (the Company) about welfare management and this committee has become a communication channel between employer (the Company) and employees.

In 2013 our company selected welfare committee from

Corporate Communications2. Miss Pitima Patthamanon Employee Relations Manager3. Miss Amornlak Sukmak Safety Engineer

5. Mr. Suriya Graichang Technician (Electricity)

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Support the Improvement of Employees’ DevelopmentApproaches of Personnel DevelopmentRegarding personnel development, the Company focuses on both individual and organization development to yield both short-term and long-term results as presented below.

In 2013 the company initiated an individual development plan (IDP) in order to evaluate and monitor its employees whether they were working in accordance with job descriptions and requirements. In 2014 an approach of individual development plan is to develop employees’ knowledge, skills and capabilities with the ratio of 70-20-10. The purpose is that employees can develop themselves through actual performance or on-the-job training (70%), learning from

others (20%) and formal learning such as training (10%) – all are presented in the diagram below.

70 on-the-job training such as routine work, extra work, assignments, projects, job rotation, etc.20 learning from others such as coaching, consultation, knowledge exchanging 10 training, formal learning, self-learning

Personnel Development

Emphasis

Resu

lts

Organization Development

Succession PlanCareer Development

Performance ManagementIndividual Development

Individual

long

ter

m

Organization

Shor

t te

rm

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Performance Evaluation Human resources department arranges evaluation twice a year. In the evaluation document, employees can identify the job they are interested in and the career path they would like to pursue. During the evaluation, supervisor will inform employees about the expected performance, weakness & strength, and possibility & methods of development. When a position is vacant, human resources department will make an internal announcement so that the interested employees can apply for it. Human resources department will make a decision from the candidates’ application forms, evaluation result, potential, and possible career path. When it is necessary to transfer staff, executives will make a mutual understanding with the staff before transferring

them. The staff must be aware that it is not a punishment, but an opportunity for them to learn new things and to develop themselves to have more insights.

Individual KPIs and Core Competency & Functional Competency. Supervisors must monitor, coach and evaluate including provide two-way communication to the team. The team will be made aware of the evaluation results so that there will be further improvement and development. The data from the evaluation will be used for future human resources management schemes, for instance, promotion, fair salary adjustment and employees’ development.

Employees’ Potential Development

In order to develop employees, there are several approaches besides class room training, for instance,

education and being a coach themselves. To develop each skill needs different approaches.

Regarding other sections’ development systems, the Company

processes to get the results, such as talent management which reinforces professionalism and prepares talents for a new working pattern or for transferring to a new unit, career path management, and succession plan which prepares existing employees for executive-level positions

organization.

Analyze requirementfor organizational

competencies

Set a list of competencies required

for each position

Evaluate individual’s competencies

Develop employeesto increase

competencies

Evaluate the development of

employees’ competencies

Evaluate the systems and capacities of each level

The PersonnelCapability

ManagementProcess

42

The company has set up Knowledge Management (KM) unit since 2010 in order to manage organizational knowledge. KM unit is responsible for gathering all knowledge related to the company’s mission and core competencies, processing them, setting priorities and structure. There are 2 categories - core process and support process. Regarding KPIs of the

Knowledge management, sharing & conveying

unit, team members of each category, including talents and employees who are about to resign, must keep a record of at least 2 topics of knowledge per year. In 2011, the company began to use Moodle software as KM Intranet to manage all the knowledge.

Moreover, the company has provided training courses in accordance with core organizational competencies and has also sent employees to attend interesting seminars of prestigious institutes. In 2013, there were various courses

System, Functional Competency

Non-Finance, Labour Law, and leadership programs such as EDP (Executive Development Program), Management Skills, and Functional Competency, for instance.

of King Prajadhipok’s Institute, and courses of Thai Institute of Directors (IOD)

there were also the courses on managerial skills and foreign

employees since 2007 to participate in dharma practice courses at various dharma retreats. The Company is also aware of the importance of spiritual development that will help its employees to live their lives happily. The employees can attend such courses anywhere that are convenient for them to go and these periods will be counted as training days (work days), and not leave.

Knowledge Management of East Water

Select Knowledge

Create Innovation

person

Gather, Search, Manage Knowledge

Create Access to Knowledge

Apply

Convey, Share, Learn

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Channels of Sharing Knowledge (Internal)

Channels of Sharing Knowledge (External)

Details

It was arranged every other Friday, in the afternoon. Employees shared their stories with colleagues with the same interest.

The project was organized when EW employees attended both

own experiences and knowledge to colleagues while having lunch.

The aim was to present the knowledge of the previous year from each

The aim was to announce the news inside the organization, to share knowledge from domestic and international sources about water, to communicate between units, and to urge employees’ participation with fun quizzes

The aim was to provoke employees’ thinking and to promote innovations in the workplace by encouraging employees to develop innovation in

The aim was to share the interviews of EW executives and employees, various knowledge, company’s vision and mission, English lessons (English Delivery) and hot news with EW.

Activities

1. Tea Time

2. Lunch Talk

3. KM–Day

4. EWG Journal, EWG News

5. Innowave Project

Details

The aim was to make a good relationship and create a two-way communication channel which led to learning and mutual understanding between East Water and customers. The activity was to visit customers every quarter and on every special occasion to ask about their satisfaction and to join together in CSR activities.

The aim was to provide new knowledge to customers, local mass media, tenants and business partners. The attendants could listen to experts of various professions lecturing on current issues, especially on water management which was directly related to the Company’s business.

Activities

1. Customer Relationship Management (CRM)

2. Seminars

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Good welfare creates employees’ good quality of life, which leads to work-life balance and happiness.

Formerly, the Company provided the same welfare scheme to all employees. Later, in 2007, the company made a survey on employees’ satisfaction on welfare and found that employees had different needs, depending on their gender, age, marital status, number of children, children’s age. Consequently, the Company began to use a new

13 different categories which covered employee’s health care, parent’s health care, children’s health care, tuition fee and recreational expenses such as traveling and sports. The expenditure framework was set approximately 80,000 baht/employee/year. Furthermore, in 2012 the company

meant employees could claim for full amount. The purpose was to help employees who suffered serious illnesses or received major operations. In 2013, East Water raised the

burden. The Company realized that compensation was a factor that raised employees’ satisfaction and participation.

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46

WATEREFFICIENCY4

East Water’s business is pumping raw water and distribution to customers who have no alternative water sources and cannot supply enough backup source of water for use throughout the year. Customers then choose to use raw water service through the Company’s pipeline. According to the principle, water transportation through the pipeline system is the most economic method. Therefore, in the life cycle of the Company’s customers, there are a very small number of customers who stop receiving raw water from the Company and turn to getting raw water from other service providers instead.

The Company uses the concept in designing a working process and creating innovation of the process according to the requirements. So, the Company focuses on bringing new technologies to be considered in designing a process including the time frame, products, cost control, factors of

to the diagram below.

Development Team

Input Data1) Voice of customers (VOC)2) Strategic plan of the organization3) Knowledge and Core Competency4) A change of technology5) Business imperative

Important Regulation1) Related law and regulation2) Transparency, mobility and Balance & Check maintaining3) Low risk4) Reduce time/ reduce redundancy

Work System needs to be reviewed

Maintain in ISO & KPIs system follow up

New Product/Service New Product/Service

Design by using a new product/service

development process

New activity/processDesign new activity/

process using Job/Task Analysis

Analyse the task / process to consider

alternatives for improvement and scope

Select/ decide / approve the test or experiment

Test new products or services / implement and determine performance

indicator

Follow up and evaluate

performance

No

Yes

Introduce to ISO 9001 & 14001 system and put into practice

No No

Yes

Feasibility Study / Worthiness of investment

in new products

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Customer Service Improvement (CSI) requires that the needs of customers in terms of quality and quantity of supply are surveyed to monitor the change in quality that exceeds Service Level as set by Customer (Customized Service Level : CSL). That value will be set and stored to alert in the SCADA database as criteria for monitoring water use.

changes in order to reduce the impact that may affect the customer’s production system and to monitor and quickly solve the Company’s problem. In the future, the Company plans to survey other needs to improve the service to be more effective.

From the implementation of the process for improving the service quality of the CSI Committee above, the customer segmentation will be analyzed and improved with the

The key process is a process in raw water pumping and distribution pumping raw water as a network which currently links to

areas with adequate water supply to the areas in need. It is a process of delivering value to customers by ensuring

The main points of the operation that show the effectiveness of the service are as follows:1. Service and customer care to create maximum satisfaction

Chief executives will behave as a role model to encourage attention to customers and stakeholders. Information science and modern technologies are adopted for using in data analysis and communication. The performance is regularly controlled and followed according to the table below

focus on service providing and responding to different

(key customers with high potential) and who are the second most importance by considering the data and information of customers in 3 dimensions namely high or low revenue yield customers, potential customers with a big or small business, customers who make a highest or lowest impact on corporate reputation by word of mouth communication. Each index will be rated and all indexes in every dimension will be evaluated. The segmentation is for preparation of the plan and service providing frequency and organizing CRM activities and holding a meeting to report and review the progress and constantly review the working methods for improvement at the CSI Committee meeting on a monthly basis.

Sender Receiver Communication Method Frequency Type of Communication One-Way Two-Ways

Chief Executive

Chief Executive

Chief Executive

Executive (Operation and Customer Service Department)

Executive (Operation and Customer Service Department)

Executive (Operation and Customer Service Department)

Employee(Operation and Customer Service Department)

1. Water War room meeting

2. Customer Meeting and reception

3. Customers visit and comment

4. Customer (WAREE & Company Websites)

5. Respond to complaints, suggestions and solutions

7.Online Metering System

Every month

2 times/year

4 times/year

Every day

As request

According to the

agreement

Everyday

X

X

X

X

X

X

X

Cust

omer

s

Customer Service Orientation

48

2. Systematical evaluation of customer satisfaction, expectation and customer loyalty with the well-planned stepsThe Company evaluates the customer satisfaction, expectation and customer loyalty by conducting a customer satisfaction survey at least 2 times a year. The survey is divided into 5 parts:

customer loyalty to the company 4) Image of the company and 5) Additional Required Services. Open-ended questions on

In addition to customer satisfaction surveys following our policy for the internal quality and environment management system, the companies also have external organizations (Third Party) namely: Kasetsart University, Sriracha Campus conducted the customer satisfaction survey to compare the results with what we have got by ourselves. Moreover the Company also conducts the survey on the customer satisfaction and corporate image directly with the raw water customers and with entrepreneurs in each industrial estate that receive the Company’s raw water. The survey results will be analyzed in three key areas.1. Expectation; to identify opportunities to improve the process or the product / service to serve the customer needs even better.2. Engagement and Image; to study vision and attitudes

of customers to services in both positive and negative issues. To understand and set up method to maintain customers’ loyalty and decrease opportunities that the customers switch their services to others.3. Satisfaction; to maintain the level of satisfaction from services and 4. Dissatisfaction / Complaint; to determine the corrective actions.

In conclusion, the analysis result and Prevention Action and Improvement Plan will be reported to the Management Meeting (MM) through the Quality System Management Committee Representative (QMR) with conferences to review the adequacy of the performance in each area.

Step Description Customer and Stakeholder Satisfaction Evaluation Team

Marketing Communication Department and Third Party

1 Design the questionnaire

Test and revise 2

Conduct the customer and group satisfaction

surveys.

3

review the assessment method using the input data from VOC, past assessment

results from stakeholders

Set up evaluation factor and conduct survey focus group by employee/customers

the questionnaire by using the suggestions from the test survey results to improve the questionnaire before actual use.

Make an appointment with customers/stakeholders to conduct a face-to-face interview.

Assess the customer and stakeholder group

satisfaction.

4 Evaluate customer satisfaction survey results using statistical methods.

Analyze customer and stakeholder groups’

needs.

5 Compare the results with another benchmark result and implement them for improvement.

dissatisfaction, suggested areas of improvement, compliments and general suggestions. In addition, the surveys are conducted to cover plan of water - utilization and projects in future to get information of trend and mapping water usage by customers.

The marketing department will conduct the customer satisfaction surveys to learn about the customer satisfaction level. The process of survey is described below.

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3. Hearing to Voice of customer (Voice of Customer: VOC)

a variety of channels as below:

Listening and Learning Method

Analysis and

Forecast Process

Root Cause

Analysis

Root Cause

Analysis

Root Cause

Analysis

Information Needed

1. The needs and

expectations of our

current and future

customers.

2. Customer’s water

receiving plans to

understand the tendency

and direction.

3. Performance and

availability of equipments

and machines

1. Survey of satisfaction/

dissatisfaction including

the expectations

2. Customer perception of

the corporate image

1. An issue of a complaint

and request from

customers.

2. Problems that

customers give priority to.

Opportunities for Contact

Sales visit

Costomer site visitMeeting during the meter record

write-down

meeting during maintenance/meter

calibration

Operation Meeting

technical seminar training to give

knowledge to customers

Open House

war room meeting

relationship building activities

(Entertainment & Lifestyle)

Satisfaction Survey by Internal Processes

(Internal Survey)

External Agency Hired Satisfaction Survey

(External Survey).

Customer Seminar Event

Phone Call

E-mail

Letter

Control Ceter

Website

Utilization to Achieve

Customer Focus

1. Create opportunities in

expanding business with the

existing potential customers

and new customers in the

future.

2. Plan the water supply

delivery plan to meet

customer demand and the

future project investment plan

to support the growth

direction.

3. Provide technical

consultation to achieve the

highest customer satisfaction.

Plan the service improvement

plan to best meet the needs

and expectations of our

customers in order to maintain

existing customers and to

serve as information for

service system improvement.

Rapidly determine plans to

Prevent mistakes in order for

constant improvement of

products and services, in a

bid to reduce frequency

of complaints and move

towards.

Askin

g qu

estio

ns d

urin

g vi

sit/S

ale

call

Satis

fact

ion

Surv

eyIn

form

atio

n an

d Re

ceip

t of

Com

plai

nt

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EW

RD

ld

MPL

CEa

ster

n W

ater

Res

ourc

es D

evel

opm

ent

and

Man

agem

eEa

ster

n W

ater

Res

ourc

es D

evel

opm

ent

and

Man

agem

e

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If customers detect a malfunction in the water system, they can obtain information support service, submit the complaint via the Control center that is available 24 hours, or contact the responsible person directly.

4. Handling customer complaintsThe Company has provided multiple channels to listen to the voice of the customer as shown in the diagram in (1.2) including a phone communication channel and E-mail channel: marketing@eastwater.com which enable the whole Company’s management team to be informed about the service request or complaints from customers at the same time to perform the service or resolve the issue entirely. Moreover the marketing department has prepared an operation (Work Procedure), service and customer complaint handling manual according to the quality management system (ISO 9001) and environmental management system (ISO 14001).

For the compliants, the processes are follows:1. Determine the compliant issue : from the error or mis-conduct in operating procedure The Marketing Department will record the issue as the customer’ compliants and resolve the reason of the compliants. The matters will be reported to CSI Committee which consist of : Steering Committee and Executive who will assign policy to related

2. Determine the compliant issue : not the error from East Water. The Customer Service Department will record the issues as service suggestions.

Control Center(Map Ta Phut)

(24-hour hotline operation)

Assistant to the Director, Operation and Customer Services Mr. Pipat Puangsuk

Tel : 081-9120922, Email : pipat@eastwater.com

(Water distribution service / maintenance service & equivalence test / information request)

Mr. Cherdchai Pitiwacharakul

Email : marketing@eastwater.com

monthika_pot@eastwater.com

Email : wuthiwas_num@eastwater.com

Tel : 081-8283359 or ext.2455Email : piyachat_cha@eastwater.com

Email : jiratchya_dae@eastwater.com

Water Distribution Service DivisionDivision Manager: Mr. Suphatat Saphiman

Email : suphatat@eastwater.com

Marketing DivisionDivision Manager: Mr. Chokchai Tawisuwan

Tel : 081-8252895Email : chokchai_taw@eastwater.com

Maintenance DivisionDivision Manager: Mr. Tawatchai Uttakawapi

Tel : 085-4875018 Email : tawatchai.u@eastwater.com

Marketing Division (Rayong)

Email : saengrawee@eastwater.com

East Water Hotlines

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Examples of remarkable design and innovation of the Company include:1. The Company has implemented a Knowledge Management work system which brought about knowledge center in both theoretical and practical aspects of water production and water loss reduction. This system started from the year

technology of producing tap water from sea water. This technology is used by Universal Utilities Company Limited, a subsidiary that produces tap water for Koh Srichang, Koh Lan and Koh Samui. It can solve the problem of shortage of water supply in the area. There is also an implementation of membrane technology in tap water production process and in wastewater treatment, in which design, installation and implementation of water production system by membrane

3. The Company has developed the program that calculates non-revenue water. The program links up with a database of water users and it has been already registered as the

The use of technology in important work systems

copyright owner. Internal Quality Audit and Internal Environmental Audit (IQA & IEA) will be monitored quarterly according to ISO requirements through a process of internal audit (IA) by audit department. This is to ensure that the operation is in accordance with the prescribed procedure and results in achieving the key requirements.

Key technologies that demonstrate the effectiveness of the Company’s work system in the late 2014 are as follows:1. Use of technology within the organization to improve work performanceThe Company has implemented Enterprise Resource planning (ERP) system for improving supporting work system in order to connect procurement process, inventory management

2. Online Metering System- Customer Service departmentOnline Metering System is the system that Company developed in order to increase effectiveness in taking care of water users through facilitating technologies which can be put in order as follow:

For all services requests and compliants, Marketing Department is required to inform the customer upon the matter is settled and request the customer to evaluate service of the resolve compliant issue. Then the Marketing Department is responsible to prepare summary report of service of resolve compliant present to MM on monthly basis in order to improve operating procedure to be

5. Expanding customers bases and increase salesMarketing and sale strategies are continually performed in accordance with marketing and economic situations. The processes of collecting information are conducted closely to existing and potential customers who wish to use water

or water consumption expansion through many channels and activities such as questionaires, visiting and survey customers’ satisfaction. In addition, there are expansion on customers base of raw water to potential customers and increasing volume of sale to existing customers for some period of time and expand area of concession with improve pipeline system and network to cover areas of service. The marketing department will summarize the data of water utilization with growth plan of raw water and send to the

that information, study the possibility of providing the service and to determine the development opportunities for innovative products and services and to expand others business.

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appear as shown below.

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aspects

Previously, employees had to write down the meter numbers

consumption. Water users and also those who involved can check hourly, weekly and monthly via the web site. It can be logged in via PCs, smart phones and tablets.

Center System.

3. SCADA SystemThe Company provides water pumping service using SCADA system to control the pumping of water. The Company also collects information on raw water consumption of each customer which enables the Company to monitor the use of raw water of every customer all the time.

East Water currently has total 85 SCADA stations.

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SCADA Control Center System Conceptual

Diagram describing how SCADA System works.

SCADA functions consist of 2 parts as follows:1. Main functions – Monitoring fundamental systems including:

including:

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Modernize Central Control Room

4. Central Control Center Project This project has been initiated in order to respond to the need of SCADA communication system enhancement,

water resource management, distribution, and water grid management, due to its capability of storing each customer’s water usage data.

In addition, the said system will also facilitate customers with self-monitoring for their water usage, providing current and previous logs – weekly, daily, or even hourly – on East Water’s website

The Company has a plan to arrange a technical seminar on the Central Control Center Project so as to provide all customers with understanding of technological knowledge, as well as strengthening good relationships in order to advance together sustainably.

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Performance Enhancement Projects with Energy Reservation

Due to the fact that the Company’s pumping stations consume electricity worth 20 million baht a month, which is likely to increase year by year, the Company has to come up with billing-control projects, some of which have been already initiated and reduced electricity usage. They can

ProjectsThese projects are to enhance water pumping capability by improving pumping stations or water grid, including:

1) Standby-Generator Installation for Dok Krai Pumping StationThis is a project to install two standby diesel generators, which help reduce electricity cost amounted at approximately 250,000 baht a month.

2) Mab Kha Emergency Pond ProjectThis is a project to build a pond as a water supply for the area of Rayong province, in case of any breakdown of pumping stations, as well as being capable of distribute water resource during on-peak period instead of activating pumping machines at Nong Pla Lai, thus reducing electricity cost amounted at approximately 100,000 baht a month.

3) Hub Bon Emergency Pond ProjectThis is a project to build a pond as a water supply for the

pumping stations, as well as being capable of distribute water resource during on-peak period without fully activating pumping machines at Nong Pla Lai 1 and overhaul pump

the electricity cost is lower, thus reducing cost amounted at approximately 200,000 baht a month.

4) Dok Krai Overhaul Pump Enhancement ProjectThis is a project to reduce friction in the overhaul pump by fabricating ceramics inside the pump casting kit, as well as overhauling the pump system which is done every 5 years. The result is seen as 3% decrease of energy used for the pump, and damage-prevention.

5) Dok Krai–Mab Ta Phut and Nong Pla Lai–Mab Ta Phut Pipeline Link at the Dok Krai Pumping Station Entrance ProjectThis project is to reduce friction of raw water in the pipeline system, equalizing the average friction of raw water in both pipelines at all times, thus reducing the electricity cost

6) Inline Booster Pump ProjectThis project is to link discharge head of Nong Pla Lai 1 to the suction head of overhaul pump, enabling the overhaul

volume while reducing electricity consumed, resulting in the decrease in electricity cost amounted at approximately 200,000 baht a month.

7) Nong Pla Lai–Mab Ta Phut and Mab Ta Phut–Sattahib Pipeline Link at Mab Ta Phut Pumping Station ProjectThis project is to link discharge head of Nong Pla Lai–Mab Ta Phut to the suction head of Mab Ta Phut Pumping

while reducing electricity consumed.

8) Suction System Installation for Bang Pakong Pumping Station ProjectThis project is to install a suction system that pumps water from the bang Pakong River from the Chachoengsao pipeline, reducing the electricity cost amounted at approximately 1 million baht a month (3 months a year, only when the

River).

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InnoWAVE Project 2

9) Pump Installation and Procurement for Reservoirs Project

water volume for customers’ usage during droughts and

tanks to directly distribute to customers, saving energy used for pumping. This reduces the electricity cost amounted at

only when the system cannot directly pumps water from

Energy Management ProjectsThese projects are to manage energy usage without additional expenses and can be initiated immediately.

1) Lowering the Pool Level of Mab Kha Pumping StationPreviously, the pool level must be maintained at 20 meters out of the maximum pool level at 25 meters. It has now been lowered to around 15 meters in order to reserve energy used for pumping, resulting in 2% decrease in energy consumption.

2) Adjusting Discharge Valves According to the Water LevelPreviously, the pool level must be maintained at 20. It has now been lowered to around 15 meters in order to reserve energy used for pumping, resulting in 2% decrease in energy consumption. 3) Activating Pumps at Stations with the Lowest Electricity Cost

Water distribution within Rayong area can be pumped from 2 resources: Dok Krai Pump Station with TOD electricity billing rate, and Nong Pla Lai Pump Station with TOU electricity billing rate. Therefore, Dok Krai Pump Station will be mainly used during daytime due to cheaper electricity rate, while Nong Pla Lai Pump Station will be mainly used during nighttime.

Alternative Energy ProjectsWater-Cooling Air-Conditioning System ProjectThis project is to install water-cooling system with fan blowing past water pipes, using water coolness to lower room temperature, reducing load on the air-conditioning system. Pilot systems have been installed at overhaul pump stations, resulting in reduction in cost amounted at

In addition to initiated projects mentioned above with solid results, the Company also has other planned projects which are currently under preparation, some of which are still in very early experimenting stage and some are under study whose results will be seen in the next year’s report.

Project #2” which is further developed from The New Wave Project (EW) and Innovation Award 2012 (UU). This project is open for all group companies, focusing on free creativity, encouraging employees to present their Process Innovation with out-of-the-box and innovative thinking.

The project’s purposes included: 1) To encourage Front

bring prized innovations to further development for the

the Company’s business development in the future.

product and service quality, so as to offer highest satisfaction to customers.

58

Total number of participants and entries in the Project

The results are as shown in the picture.

First Runner-Up Prize: 30,000 baht

First Runner-Up Prize: 30,000 baht

Honorable Mention Prizes: 15,000 baht

Honorable Mention Prizes: 15,000 baht

Buoy Team

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1. Business Performance

Revenue

Remark:

Year (in Million Baht) 2009 2010 2011 2012 2013

Selling Administrative ExpensesFinancial Institution InterestGovernment and local authorities taxesCosts for enhancement of quality of life and environmentShareholders’ dividend

Cost for income distribution to stakeholders Year (in Million Baht) 2009 2010 2011 2012 2013

Service Areas

Total

Rayong area

Pluakdaeng - Bowin

Water Capacity (in million m3)

Chonburi

Chachoengsao

169.83

23.24

75.37

9.51

277.95

SUSTAINABLE WATER UTILITY MANAGEMENT

PERFORMANCE5 728.03

1,220.52 827.45

2,775.08 1,344.72 908.70

3,210.79 1,528.55

212.97 104.77

18.82

582.30 121.95

254.31

325.42

32.10

131.89

52.42

32.23

149.47

82.49

44.07 732.04 158.84

340.35

318.22

155.83

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3. Non-Revenue Water (NRW)

4. Summary of water quality from the company’s raw water resources in 2013

Dokkrai reservoirNongplalai reservoirKlongyai reservoirPrasae reservoirRayong riverChachoengsao water pump stationSuanson water pump station

Samnakbok raw water reservoir

Nongkho reservoir

water resource pH DO(mg/L)

Turbidity(NTU)

Choloride(mg/L)

7.457.787.87

7.427.207.217.807.417.52

5.02

4.404.924.724.97

5.795.88

22.473.79

8.497.34

18.3325.258.50

39.33

123.928,408.50

51.3321.7511.25

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average 2013 Average 2012

62

5. Results of Information Technology system protection and safety preparation

6. Personnel Output

6.1 Employee Figures

IT Performance Results 2008 2009 2010 2011 2012 2013

Network break downDown TimeSystem SecuritySystem Availability

Indicators Target

< 2 Times/Y0 min0 Time100%100%

00 min0 Time100%100%

00 min0 Time100%100%

00 min0 Time100%100%

00 min0 Time100%100%

00 min0 Time100%100%

00 min0 Time100%100%

SCP

01 min0 Time100%100%

Categorized by region (in person)Central region 113Eastern region 42Total 155

Categorized by rankManagerial Level Supervisory Level Operational Level Total

(in person)927119155

Categorized by employment (in person)Permanent employee 152Temporary employee 3Total 155

Categorized by Gender

Categorized by rankCategorized by employment

6%

17%

77%

Managerial Level

Categorized by rank

Supervisory Level

Operational Level

54%

46%

54%

46%

98%

2%

98%

2%

72%

28%

72%

28%

female

Eastern regionTemporary employee

Central regionPermanent employee

male

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6.2 Results of the company’s operations on health, occupational health, environment and employees’ safety

2. Company’s operations on health, occupational health and environment

Parameter

FormaldehydeCarbon MonoxideCarbon DioxideRespiration DustTemperature (0 C)

LegionellaMeasurement of light intensity to not be lower thanMeasurement of volume level to not be overMeasurement of heat

Control Value

39

1000150

22.5-25.590.01000pass

90

-

2010

0.290.1514

< 10025.285.7ND*pass

pass

pass

2012

0.220.7455

< 10024.487.3ND*pass

pass

pass

2013

<0.1<1

<10025

85.9ND*pass

pass

pass

2014

5.3750

2385.3ND*pass

pass

pass

Health check-up results

100% of the employees underwent a health

check-up in 2013 and did not have any occupational

related diseases

Goals

1. To provide wastewater treatment system of the company’s building to meets standards

2. To provide properly working environment for employees

3. To provide waste disposal and management system according to laws and regulations

4. Employees at operating areas will be required for a health check-up and check environmental-related risks and hearing problems

5. Death, injuries and occupational-related illnesses, personal leaves, and the number of people who die in work operation

Indicators

Measure the wastewater quality of the company’s building

level at not over than 40 mg/L.)

1. Noise level in the workplace is not over 90 decibels and temperature does not go above 25.5 degrees Celsius.2. Light intensity measurement takes place once a year.

Waster and hazardous waster were disposed as the laws and regulations indicated

1. Each employee is provided with a health check-up once a year.2. The hours of safety without accidents and personal leaves (2012-2013)

1. The number of people who die from accident in work operation2. The number of injured people3. The number of people who face occupational-related illnesses

2013

Pass the standards

Pass the standards

Measure once a year

Record the waste disposal and classify

the waste

Once a year

590 , 920 hours

0 person/year

0 person/year0 person/year

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6.3 Results of employee’s potentials development

Total = 7,928 hours – average of 52.24 hours per person/year

Other results of human resources development1. Total courses in the entire year were divided into two groups, as followed:

Average of 2 courses per person/year

2. Total numbers of hours in the entire year were divided according to levels of the employees, as followed:

hours per person

hours per person

hours per person

Numbers of training hours in 2013 (monthly)

hour

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

training course

Project planning

Management

Operating and

customer service

Finance and

accountingAudit

President& CEOOffice

CorporationCommunication

InformationTechnology

BusinessDevelopment

Human Resources

President& CEO

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2010 2011 2012 2013

6.4 Employee satisfaction results

7. customer service output

7.1 overall results from satisfaction survey in 2013

70.6

77.0

70.6

72.872.8

76.4

Satisfaction Engagement

78.0

Percentage

76.0

74.0

72.0

70.0

68.0

66.0

4.07

4.21

customer

direct customer

Chonburi

indirect customer3.63

4.234.19

4.20Chachoengsao

Rayong

Satisfaction Score : Excellent (5)

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7.2 Services and complaints

8. Information on Suppliers and Tenants

8.1 Suppliers Proportion

average satisfaction rate2555 2556

month

JanFebMarAprMayJunJulAugSepOctNovDec

Average

target satisfaction rate

4.85

4.79

4.50

4.755.004.084.504.92

4.754.754.754.754.754.754.754.754.754.754.754.75

4.75

4.405.00

4.895.005.004.754.405.005.00

4.78

77.6

68.0

74.2

32.0

25.822.4

General

Approved Vendor Lists (AVL)EW UU OVERALL

Service Request and Complaint Score : Excellent (5)

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Summary of completed Energy Reserve programs

Remark:

Detail

Improvement of water distribution system 1. Installation of backup generator at Dokkrai water pump station2. Construction of Mabkha raw water basin3. Construction of Hub-born raw water basin4. Water pump stations pressure enhancement project

Nongplalai-Mabtapud pipelines at the entrance of Dokkrai water pump station

9. Procurement and installation of water pumps for raw water reserves

Energy Management1. Lowering of water level at Mabkha water lifting station2. Adjustment of water control valves in accordance with water level3. Effective operation of water pumps at stations that acquire the lowest electricity cost

Total

Construction cost(Baht)

10,000,00025,000,00040,000,0002,000,0002,000,0003,000,000

32,000,000

12,000,000

---

132,000,000

Saving cost(Baht/year)

3,000,0001,200,0002,400,0001,800,0001,080,000

720,000

2,400,0003,000,000

3,000,000

720,000720,000720,000

68

“ “

GRI-G4Index

General Standard Disclosure

Pages

2

10-11

3333

7

38-39

13n/a

28

Provide a statement from the most senior decision-maker of the organization (such as CEO, chairman, or equivalent senior position) about the relevance of sustainability to the organization and the organization’s strategy for addressing sustainability.Provide a description of key impacts, risks, and opportunities.

Report the name of the organization.Report the primary brands, products, and services.Report the location of the organization’s headquarters.Report the number of countries where the organization operates, and names of

Report the nature of ownership and legal form.Report the markets served (including geographic breakdown, sectors served, and types

Report the scale of the organization - Report the total number of employees by employment contract and gender.- Report the total number of permanent employees by employment type and gender.- Report the total workforce by employees and supervised workers and by gender.- Report the total workforce by region and gender.- Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors.

Report the percentage of total employees covered by collective bargaining agreements. Describe the organization’s supply chain.

size, structure, ownership, or its supply chain Report whether and how the precautionary approach or principle is addressed by the organization.

1. Provide a statement from the most senior decision-maker of the organization (such as CEO, chairman)

G4-1

G4-2

G4-3G4-4G4-5

G4-7G4-8

G4-9G4-10

G4-11

G4-12G4-13

G4-14

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Pages

5, 8, 9

13

14

14

141414n/a

14

1111

11-12

List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: - Holds a position on the governance body- Participates in projects or committees - Provides substantive funding beyond routine membership dues

equivalent documents

statements or equivalent documents is not covered by the report.

Report Content.

Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

Provide a list of stakeholder groups engaged by the organization.

Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any

process. Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

G4-15

G4-17

G4-18

G4-19G4-20G4-21G4-22

G4-23

G4-24G4-25

G4-27

70

6. Governance

7. Ethics and Integrity

Pages

14141414

14

4-5

Date of most recent previous report (if any).Reporting cycle (such as annual, biennial).Provide the contact point for questions regarding the report or its contents.- Report the ‘in accordance’ option the organization has chosen.- Report the GRI Content Index for the chosen option (see tables below).- Report the reference to the External Assurance Report, if the report has been externally assured. GRI recommends the use of external assurance but it is not a requirement to be ‘in accordance’ with the Guidelines.- Report the organization’s policy and current practice with regard to seeking external assurance for the report.- If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. - Report the relationship between the organization and the assurance providers.- Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.

Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.

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

G4-33

G4-34

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“ “

Economic Performance

Energy

Labor Practices and Decent Work

Employment

Water

Overall

Supplier Environmental Assessment

ECONOMICS

SOCIAL

ENVIRONMENTAL

Pages

Direct economic value generated and distributeFinancial implications and other risks and opportunities for the organization’s activities due to climate change

Total number and rates of new employee hires and employee turnover by age group, gender and region

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

G4-EC1G4-EC2

G4-LA1

G4-LA2

Occupational Health and Safety

Reduction of energy consumptionReductions in energy requirements of products and services

Total water withdrawal by source

Total environmental protection expenditures and investments by type

Percentage of new suppliers that were screened using environmental criteria

G4-EN7

G4-EN8 G4-EN9

G4-EN31

G4-EN32

20

1718

72

Training and Education

Local Communities

Customer Health and Safety

Customer Privacy

SOCIETY

PRODUCT RESPONSIBILITY

Pages

Average hours of training per year per employee by gender, and by employee categoryPrograms for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endingsPercentage of employees receiving regular performance and career development reviews, by gender and by employee category

local communities

health and safety impacts are assessed for improvementResults of surveys measuring customer satisfaction

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer date.

G4-LA9

G4-LA10

G4-LA11

G4-SO2

G4-PR1

G4-PR5

G4-PR8

42