Airports of Thailand Public Company Limited 333 Cherdwutagard Road, Srikan Don Mueang, Bangkok 10210 Thailand Tel. (66) 2535 1111, Fax. (66) 2535 4061 E-mail : [email protected] www.airportthai.co.th

CSR REPORT 2011 Airports of Thailand Public Company Limited

CSR REPORT 2011

Airports of Thailand Public Company Limited

Contents 3

Message from the Chairman

5

Message from the President

7

Operations of Airports of Thailand Public Company Limited

8

Vision, Mission and Organizational Culture

11

Reporting Guidelines

15

Corporate Governance

17

Corporate Social Responsibility Operations

36

Prizes for Success

38

The Company Committee’s CSR Engagement

39

GRI Content Index

2

Corporate Social Responsibility

Message from the Chairman

(Mr.Piyapan Champasut) Chairman

(Mr.Tirapol Noparumpa) Chairman

(17 February 2009 - 9 March 2011)

(9 March - 19 September 2011)

Airports of Thailand Public Company Limited (AOT) is determined to achieve leadership in Asia’s airport business by focusing on enhancing competitive capacity and service quality of responsible airports. We aim to become an integral mechanism in powering the country’s economy alongside efficient social development. As the Chairman of AOT, I realize the importance of Corporate Social Responsibility (CSR) and the engagement of the committee in achieving such goals. Therefore, we have established the practices to develop the organization toward strength alongside social responsibility both internal and external by nurturing all members of staff at AOT to show devotion to their work, discipline, service mind, love, and creativity. Moreover, we consider increasing the values of corporate management to sustainably benefit society and environment. For over 32 years, AOT has conducted its business while maintaining its focus and presence in improving the quality of life for people in society, protecting and remedying the environment, endorsing social responsibility through various projects that allow employees and the general public to participate such as coustructing the Border Patrol Police school, monitoring of environmental impact protection and mitigation measures, sufficiency economy camp for the balance of economy, society and environment, etc. In order to drive forward the CSR process to be implemented throughout the organization, AOT has initiated the CSR Master Plan for the fiscal years of 2011-2014 as its first enterprise plan regarding CSR. This plan’s clear and concrete rules and practices are expected to bring about the most efficient and productive implementation in accordance with the organization’s missions. Moreover, AOT has conducted the first AOT CSR report for the year 2011 based on the reporting framework set by GRI (Global Reporting Initiative) for publishing information on airport operations along with our social responsibility initiatives as well as being an intermediary of communication to create better understanding between the corporate and stakeholders. This report will also be used as a guideline for CSR operation and value adding to the organization toward sustainable development. In the name of AOT’s committee, I am delighted to have participated in driving and supporting the organization’s CSR operation toward its tangible completion for society. The information on our CSR operation 2011 can be reviewed in this CSR report. Corporate Social Responsibility

3

Message from the Chairman As I am taking a position of the Chairman of Airports of Thailand Public Company Limited (AOT), I am very delighted to be involved in continuing and carrying forward our Corporate Social Responsibility initiatives in order to bring about concrete practices with both senior management and other employees. I am aware that AOT’s operation does not only support the country’s air transport, but also be responsible for society and environment as well as efficient use of energy. By using clean energy with the intention to reduce emission of greenhouse gas allows AOT to generate the least impact on society, and that would make the organization and society live peacefully together. Yet, the achievement in CSR operations is going to be a policy and an explicit and ongoing guideline. Creating value and adding absolute benefit on society have to be established from our determination, collaboration, and engagement from employees throughout the organization. As a result, good quality of life would be delivered to both people and society efficiently and sustainably.

Air Chief Marshal (Sumet Photimanee) Chairman of AOT (29 September 2011)

4

Corporate Social Responsibility

Message from the President Airports of Thailand Public Company Limited (AOT) realizes the importance of Corporate Social Responsibility (CSR) which focuses on conducting business under ethics and good governance, just operation, engagement in community development and environment conservation. AOT is determined to advance Thai airports toward possessing universality and being accepted in the global level, so that our passengers will receive comfort and safety. This also involves increasing the capacity in the continually growing number of passengers. Meanwhile, AOT also places importance on saving the environment by measuring the Airport Carbon Footprint and establishing the standards for controlling green house gas emissions from airport operations. The ultimate goal is to become an environmental friendly airport or so called “Green Airport.” Furthermore, AOT gives support and sponsorship to youth’s education, along with buildings and equipment relating to education, art, culture, and religion, in order that children’s potentials can be cultivated with virtues and ethics. The aim is to make them talented and honorable members of society, and prepare them for the elevation of educational standards of Thai youth. AOT’s CSR operations place significance and focus on both CSR-in-process and CSR-after-process. The CSRin-process aims to prepare the organization for the needs of customers and create values for the organization, society and environment. On the other hand, CSR-after-process is implemented through continuous engagement in social responsibility and addition of value to society at large. I sincerely hope that AOT’s success in CSR engagement will arise from the continuous collaboration between the employees corporate-wide and various groups of stakeholders. This, for AOT, is an important factor to drive the organization and society toward sustainable development on a solid foundation.

(Mr. Serirat Prasutanond) President (1 July 2009 - 31 March 2011) Corporate Social Responsibility

5

Message from the President Airports of Thailand Public Company Limited (AOT) has been continually operating on socially responsible practices. As AOT is an entity that responsible for 6 main airports in Thailand, which are Suvarnabhumi Airport, Don Mueang International Airport, Chiang Mai International Airport, Hat Yai International Airport, Phuket International Airport and Mae Fah Luang - Chiang Rai International Airport, AOT then place importance on communities surrounding the airport. AOT has program and project on looking after these communities, both on education, environment, religion, community economy support, and environmental stewardship. Moreover, AOT has extended these outcomes on social responsibility to the national level with the aim of allocating opportunity, sharing happiness and generosity to overall society. Achievements on social responsibility of AOT originate from internal employee engagement and prioritization of CSR in the executive level. As a consequence, since I become the President of AOT, I am pleased to participate in creating the organization and sustainable society. And, I am going to underline together with encourage socially responsible conducts to efficiently and persistently move forward through each and every employee.

Flying Officer (Anirut Thanomkulbutra) President

6

Corporate Social Responsibility

Operations of Airports of Thailand Public Company Limited Airports of Thailand Public Company Limited or AOT was registered in the Stock Exchange of Thailand on 11 March 2004 with the registration No. PCL. 0107545000292. AOT’s engagements involve airport operation and any other services related to aviation and transport, with the key enterprises being airport management, operation and development. AOT intends to be an aviation hub, tourism center, and leading international air freight of Asia and the world in response to the government policy in Thailand tourism and air transport promotion by continual development of buildings and airport facilities in order to support increasing air traffic and passengers. Close cooperation with other agencies both public and private sectors on related airport operation is implemented for service development and immediate problem-solving response. The 6 airports in its responsibility include: • Suvarnabhumi Airport • Don Mueang International Airport • Chiang Mai International Airport • Hat Yai International Airport • Phuket International Airport • Mae Fah Luang-Chiang Rai International Airport These 6 airports offer both domestic and international flights, with Suvarnabhumi airport as the major national airport which opened on September 28, 2006. The airport aims to support the constantly increasing number

Company Names

of air traffics and can now house 45 million passengers and 3 million tonnes of cargo per year, as well as 76 flights per hour. At present, the major shareholder is the Ministry of Finance holding 70% of shares, while the rest belongs to institutions and general investors. The organization’s registered capital is 14,285,700,000 Baht and the number of ordinary shares amounts to 1,428,570,000 shares, worth 10 Baht each. AOT’s headquarter is located at 333 Cherdwutagard Road, Si Kan, Don Mueang, Bangkok 10210. The contact points include telephone: 0 2535 1111, fax: 0 2535 4061 or 0 2504 3846, and website: www.airportthai.co.th. The total number of employees and workers is 4,684 (as of 30 September 2011). AOT’s revenues come from 2 important branches of operations: Aeronautical Revenues and Non-Aeronautical Revenues. Aeronautical Revenues, for instance, Landing and Parking charges and Passenger Service charges. Non-Aeronautical Revenues, for instance, office and space rents, service charges and concession revenues. Moreover, AOT invests in 9 subsidiary companies and related companies to airport operation, which are divided into 1 subsidiary company, Suvarnabhumi Airport Hotel Company Limited, in which AOT holds 60% of the shares, and 8 related companies, in which AOT holds 1.43 – 10% of the shares. The details are as follows: Type of Business

Suvarnabhumi Airport Hotel Hotel service Company Limited Airport Duty Free Company Limited Duty free retail Thai Aviation Refuelling Company Limited Hydrant pipeline network and refuelling service Phuket Air Catering Company Limited Airline catering service Airport Associate Company Limited Limousine services Don Mueang International Airport Hotel Airport hotel management Company Limited Bangkok Aviation Fuel Services Aviation fuel provider Public Company Limited Trade Siam Company Limited Electronic Data Inter Change : EDI Thai Airports Ground Services Cargo warehouses, apron and aircraft Company Limited mechanical services

Shares Held (%) 60.00 10.00 10.00 10.00 10.00 9.00 4.94 1.50 1.43

Corporate Social Responsibility

7

Vision, MISSION and Organizational Culture Vision

• AOT is Asia’s Leading Airport Business

Missions

• To operate the airports with exclusive standards, to service from the heart with advanced technology, to create added value and to feel responsibility toward society and community



AOT’s Management Practices

Toward achieving the vision, AOT aims to create understanding with the customers and make sustainable profits through the administration which shows responsibility toward shareholders, society and environment. To accompany this determination, AOT has set 3 key Strategic Themes as follows: 1) Increase Value to Customers and Customer First 2) Strive for Economic Profit 3) Corporate Social Responsibility (CSR) and Good Corporate Governance Under these Strategic Themes, AOT has determined 4 key strategies to achieve the goals, with the details as follows:

Strategies Practices Increase • Develop sufficient infrastructure and facilities sufficiently to meet the needs of customers both competitiveness airlines and passengers who are expected to increase continuously. • Supervise the safety standards and security by following the ICAO and TSA USA standards, including operating according to the airport operation examination plan as stipulated in the Aerodrome Manual and the Aerodrome Safety Management System (SMS) • Place importance on the improvement of service quality to customers, airlines, airport operators and related agencies by focusing on improving service quality in various aspects, improving the facilities, caring for airport atmosphere and environment, as well as building relations with airlines, government agencies and other commercial operators for cooperation • Increase cost competitiveness by focusing on increasing efficiency of financial spending, decreasing costs for both employee-related and operation-related, and managing investment according to the plan • Develop information technology for airport operation by using efficient and up-to-date information technology to respond the needs of airlines and passengers and introducing the simulation system to manage facilities for maximum efficiency, and evolve toward 100% Networking Airport which can rapidly link information system across airports, headquarter and related agencies Develop business • Develop aviation business by emphasizing building relationships with the customers and stakeholders and marketing to maintain the customer base of both passengers and airlines, and supporting the development of marketing innovation to increase air traffic volume and putting the focus on creating selling pitch and uniqueness to expand related businesses • Develop non-aeronautical businesses to be profitable and share equal proportion as aeronautical revenues by increasing the efficiency of using asset and unused land of Suvarnabhumi and Don Mueang International airports • Manage marketing by focusing the development of modern customer relations management such as arranging the complete database of all groups of customers for use in analysis and increasing the efficiency in airport operation marketing Organization • Develop the information technology regarding organization administration to drive the corporate management toward toward being ‘High Performance Organization,’ support key missions in various aspects such as human high efficiency resources management and development, organization assessment, communication and public relations within the organization, customer relations management and marketing, risk management, and administration for increasing economics value (EVM and BSC), as well as setting the Business Intelligent system as a tool for the executives’ administration and decisions

8

Corporate Social Responsibility



Strategies Practices

• Develop the human resources management system by increasing the efficiency in human resources administration and development, organizing the corporate structure to include a division responsible for marketing, especially allocating appropriate number of workforce to be in line with job content both quality and quantity, vocational development, suitable succession of positions and various aspects of human resources development • Develop corporate image including publicity of Corporate Brand or Corporate Identity from the geographical or cultural strengths or local symbols by applying to the offered services Encourage • Nurture responsibility toward society and environment by setting clear and concrete guidelines and responsibility toward regulations in CSR operation, setting the airport environmental supervision committee, swiftly solvingsociety, environment problems of environmental impact on the communities surrounding the airports, and placing importance and good corporate on stipulating regulations on the appropriate Carbondioxide (CO 2) emission of airlines governance and reducing the use of unclean energies and the rise of CO2, with the aim of being Low Carbon Airport • Manage organization under the good corporate governance principles in every level of the organization to achievetransparency, accountability, and in compliance with the Good Corporate Governance regulations according to the Stock Exchange of Thailand

AOT’s CSR Concepts and Directions

Air transportation inevitably causes impact of aviation on environment and surrounding communities. This impact of aviation on environment can be divided into 2 levels as follows: Global Level The impact of this level results from air transports which are linked across countries and regions of the world; therefore, the impact is not limited within the geographical boundaries or the jurisdiction of each country, but affects the global outlook. The major impact from aviation is the emission of air pollution, most of which is greenhouse gas, which contributes to the global climate change. Nowadays, it is estimated that the emission of greenhouse gases into the earth’s atmosphere from air transports amounts to approximately 2% of all emissions from all activities and is likely to continue increase continuously. Local Level The impact in the local level results from airport operations and activities related to aviation industry; therefore, the impact is complicated and varies in the nature of pollutants, impact and receptors. The major impacts of aviation in the local level are • Aircraft Noise • Wastewater Management • Waste Management • Drainage System • Transportation & Infrastructure

• Land Use In order to develop and increase the value of the organization, society and environment, as well as reduce such impact, AOT has set the strategies for showing responsibility toward society, environment and good corporate governance in the AOT Corporate Plan (fiscal years 2010-2014) and devised the first AOT social responsibility model scheme (fiscal years 2011-2014). This model scheme serves to set the directions for clear and concrete CSR operation. Moreover, AOT has assigned a committee to oversee the environment of the airport to swiftly deal with the environmental impact on the communities surrounding the airports, encouraged the establishment of an environment fund in conjunction with related agencies and all affected sectors, and giving importance on stipulating regulations on the appropriate Carbondioxide (CO2) emission from airlines, as well as reducing the use of unclean energies and the rise of CO2, to aim for the position of Green Airport. Also, 3 aspects of Core Concept have been affixed regarding CSR operation which are educational support, society, community relations and environment, and culture, religion and sports. Under the concept of building social responsibility, AOT emphasizes the theme “Preserve the Air” to reduce air pollution and impact on the community and environment, which is a major impact of the business. The criteria used in AOT’s CSR operation cover the important dimensions as follows: 1

Data from IPPC (Intergovernmental Panel on Climate Change) 2007 Corporate Social Responsibility

9

Spatial Dimension is the measure in determining the directions of operation based on areas, which can be divided into • Operations within countries and societies • Operations within communities and surrounding areas • Operations within the organizations Impact Dimension is the measure in determining the directions of operation based on the impact, which can be divided into • Direct impact of operation • Indirect impact of operation For the theme “Preserve the Air”, AOT aims to improve air quality, conserve the environment, especially the area surrounding the airports, and encourage creative ideas and innovations to save the environment by setting the operational scope in 3 aspects as follows: Nice People, Nice Air This activity operates in the levels of countries, societies, communities and surrounding areas and focuses on the development of people and community. The activity covers all dimensions including education, art, culture, religion and sports, for example, the Great Community, Pleasant Weather, and Good Education project, the Airport of Infinite Learning project, and the Good Youth Support project. Clean Air This activity operates in the levels of countries, societies, communities and surrounding areas and focuses on reducing the environmental impacts in terms of pollution such as dust, smoke, greenhouse gases, noise pollution, waste disposal, and waste water, including the use of clean and alternative energies. The activity works on campaigning and encouraging new innovations such as the Green Airport project, the alternative energies project, and the air quality improvement project. Deep Breath This activity operates in the level of organizations and considers the key practices of CSR in other important aspects such as good corporate governance, transparency, equality, fairness, efficiency. It also focuses on fair business and responsibility toward consumers, respect of the labor’s rights and impartial treatment toward employees to provide them with good quality of life and opportunities to show their potentials, receiving training and practice their skills, and fostering of charitable spirits in the employees to help society. AOT’s CSR operation is done through a number of projects and activities both in the form CSR-in-process

10

Corporate Social Responsibility

Nice People Nice Air Clean Air

Deep Breath

Air Preservation

AOT, we care for the environment and society and CSR-after-process. The former involves operation with responsibility toward society alongside the main processes of the business to prevent impact of operation by considering making profits with social responsibility, while the latter means operation with responsibility toward society to support public benefits or relieve public disasters and care for education, Buddhism, art, traditions, customs and culture. AOT adheres to the belief of “Safety and Service are our Priorities” by holding safety and security as the heart of operation, being conscious of the meaning of service while giving service, collaborating in harmony and teamwork, placing the corporate goals over personal goals, continuously learning, studying the changes in matters related to the organization’s business and the business of opponents to ensure competitiveness and improving themselves for better skills in techniques in operation. Moreover, AOT emphasizes transparency, responsibility and verification toward operations, customers, shareholders, society and the country to lay a solid foundation on values and organizational culture regarding social responsibility, which is integral to further sustainable growth of the organization and society.

Reporting Guidelines This 2011 AOT’s CSR Report (the fiscal year of 1 October 2010 – 30 September 2011) is a corporation-wide report. It is the first report published to communicate with the public and stakeholder groups the understanding in the organization’s CSR directions and operations, which will benefit in creating mutual understanding, progress monitoring and awareness in the impact of the organization’s activities or operations. The organization’s important information is gathered via 2 main information technological systems, namely AIMS (Airport Information Management System) and MIS (Management Information System). AIMS is central to the effective administration and management of Suvarnabhumi Airport in various aspects and linked to other information technological systems internal and external of the airport including government agencies, state enterprises, airlines, and airport operators. AIMS relies on the processing and displaying of data, images, and voices for the purpose of controlling, monitoring and decision making involved in airport operation and airport management. The mechanisms of AIMS (Core System) can be divided into 7 systems as follows: • Airport Operation Database: AODB such as aviation information processing system, airport equipment controlling and commanding system and passenger information system, etc.



Stakeholders Shareholders Employees



• Airport Management such as accounting and finance, human resources management and revenue collection, etc. • Control and Command Center such as emergency control and command center and security control center, etc. • Computer and equipment system • Computer network within the airport • Interface with sub-systems in the airport and external organizations • Others such as information training and maintenance, etc. MIS is employed at the AOT headquarter and at regional airports, which can be divided into 3 systems: • Airport operations • Administration and finance • Airport operation support Moreover, information technological system is implemented in support of other operations such as E-document, engineering and technological information gathering system,E-meeting and Internet/Intranet system. AOT’s operations place importance on the rights of all groups of stakeholders both internal and external, including the improvement and development of the organization which stem from the stakeholder engagement as follows:

Treatment toward Stakeholders • Aims to adequate represent the shareholders in transparent business conduct by considering the long-term economic value and satisfactory returns • Operates with integrity, honesty and justice by considering both major and minor shareholders and for the benefits of the stakeholders as a whole • Administers for the growth, security and satisfactory returns for the shareholders • Prevents any vain loss of damage of AOT properties • Discloses true, sufficient, consistent and timely monetary and non-monetary information involving the business and turnover that reflects the organization’s real financial status • Encourages continuous and thorough development and distribution of knowledge and abilities of employees at all levels

Corporate Social Responsibility

11



Stakeholders

Treatment toward Stakeholders • Suvarnabhumi Airport has signed Sister Airport Agreements with Narita International Airport Japan; Munich International Airport, Federal Republic of Germany; Incheon International Airport, Republic of Korea; Beijing Capital International Airport, People Republic of China; and Austin-Bergstrom International Airport, United States of America; to provide employees the opportunities to exchange knowledge, technology and experiences on airport operations, including cooperation in any kinds of aviation business in order to develop the services and push airports toward being among the top 10 airports with best service of the world including airports management and variety of aviation businesses in order to develop the management system of Suvarnabhumi Airport. • Keeps the working environment safe for life and property of the employees • Arranges a complaint process in case problems arise between employees or between employees and superior so employees have the right to file a complaint through the process set by AOT • Top-level executives allow employees of all levels to give suggestions which may be beneficial to the organization. • Employees are treated equally and equitably and provides confidence in quality of working conditions, remuneration and fair and appropriate welfare. • Supports and encourages employees to understand ethics and the roles of employees to ensure ethical behaviors throughout AOT Government • Strictly conducts business under the laws and regulations of the overseeing agencies • Supports government projects for the purpose of the utmost benefits for society at large and maintains sound relationship with government agencies, gives complete and correct information as requested by the government agencies to show transparency and build mutual confidence and trust Society, Community • Sets up a department responsiblefor social, community matters which are Corporate Communications and environmental Office and Environmental Department, Special Affairs Department, Suvarnabhumi / Don Mueang International Airport and all regional airports are responsible for looking after local communities nearby the airports along with continuous operations of main business • Holds activities for communities inside and outside operational areas of operational sites to support education, sports, culture, and career development for the better quality of life in the communities • Places importance on coexisting with the communities and society within the operational sites by creating sound understanding and collaborating in solving problems to continuously build confidence in communities and society Business Partners • Complies with contracts, agreements or other conditions to AOT’s business partners based on impartial and fair returns • Increases the communication channel via website in order to facilitate business partners and stakeholders in coordinating in terms of commercial activities, processes in space rental, contracts, and authorization forms for engagement in business. This contact point also has AOT divisions supervising the customer relations management. Competitors • Behaves within the rules of sound competition by using “Airport of Smiles” strategy to continuously improving all services to satisfy the passengers with impression of smiles. • Compete fully, independently and fairly, offering competitive deals based on Airports Council International guidance which governs the standard of services that related to aviation services and facilities worldwide.

12

Corporate Social Responsibility

 



Stakeholders Creditors

  Treatment toward Stakeholders

• Treats creditors with fairness, responsibility and transparency by strictly complying with the terms of contracts and financial bonds made with the creditors, including paybacks, care of collateral and other terms • Not uses the capital gained from loans in any ways which are contradictory to the contracts made with the loaners • Not uses dishonest means or conceals information and facts, which may be adverse to the creditors Debtors • Follows the contracts, agreements or terms made with debtors with no discrimination in debts handling, negotiates with debtors in advance to collaborate in finding solutions to problems and prevent damage in unfeasible cases, uses good governance in consistently reporting the accurate and timely active debt information to debtors. • Follows the laws, regulations and terms related to treatment toward debtors Customers and • Creates satisfaction and confidence for customers and the general public by ensuring safety, qualified the general public service and good impression, as well as continuously and seriously elevating the standards of the organization • Gives complete, accurate and up-to-date information and news about qualified service without deviating from the facts and maintains sound and sustainable relationship • Creates a mechanism to assist customers and the general public in complaining about the safety, services and facilities, and satisfaction, then proceeds with the utmost capacity to ensure that customers and the general public are swiftly responded to Outsourced • AOT administrates large airports and consists of numerous employee outsourcing agencies that Employees are directly responsible for delivering services to passengers. Therefore, AOT has assigned to regularly provide a personnel training for outsourced employees in order to be capable to work efficiently. • Suvarnabhumi airport has arranged an annual seminar in order to improve quality of service to be impressed by passengers under a seminar project “Neighbor.” Outsource workers have also participated in the seminar as well.

Corporate Social Responsibility

13

The identification and selection of stakeholders are based on equality and balance for mutual benefits, apart from the coverage of fundamental rights, which will bring about secure and sustainable development in the future. Nevertheless, for the CSR reporting content to be complete in economics, environment and society aspects, AOT has allowed its employees to engage in the determining the reporting content through a workshop entitled “Sustainability Report” held on 25 and 27 July 2011, at the AOT headquarter, with 52 participants featuring executives and employees. The workshop gives knowledge and guidelines in conducting a report according to the reporting scope set by GRI (Global Reporting Initiative). This workshop gives the participants an opportunity to study the principles and processes of reporting, determine the reporting content, as well as select the aspects and indicators to be reported. These indicators will then go through a Materiality Test according to the GRI reporting scope to discover the significant indicators and relevant indicators to the organiza-

How to report Principles

What to report Standard Disclosures

Content

Strategy and Analysis

Quality

Organizational Profile

Boundary

Report Parameters

Disclosure Items

Government, Commitment and Engagements

Disciosure on Management Approach and Performance Indicatiors

Economy Sector Supplements

tion. Furthermore, the significant aspects and indicators for the Airport Operators Sector Supplement were also considered. The meeting has selected the indicators to be included in this report in the economics, environment and society aspects as follows: The economics aspect focuses on economic potentials by considering economic value, potentials for domestic and international airport services, and employees’ welfare and benefits after retirement. The environment aspect emphasizes action to reduce impact on the environment with the focus on energy preservation, water consumption and sustenance, air quality, greenhouse gases emission reduction, noise impact mitigation and waste disposal. The society aspect places importance on employment, operational safety and health and training for employees’ potential enhancement, as well as prevention and mitigation of significant negative impact on community.

Environment

Society

Electric Utilities, Financial Services, NGOs, Food Processing, Mining and Netals, Airport Operators Sector

Reference : GRI G3 Guidelines

The details of the topics in each indicator stated in the report are explained in the GRI Reporting Framework Index. This Reporting Framework will be used as guidelines

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Corporate Social Responsibility

for the evaluation of the organization’s performance for its improvement. This CSR report will be developed for better completion and continued in the coming years.

Corporate Governance The operation and administration of AOT are based on the Best Practice for Corporate Governance 2007 published by the Stock Exchange of Thailand, under each of the following aspects. Shareholders’ Rights AOT realizes the importance of shareholders and their rights as the owners who control AOT through the elected AOT Board. Shareholders have the right to make decisions concerning significant changes, receive protection involving the basic rights such as voting, receiving share of profits, authorizing other persons to attend meetings and vote, giving opinions and inquiring in the meeting to determine significant matters of AOT, and receive accurate, sufficient and timely news from AOT through a number of methods such as the Stock Exchange of Thailand, AOT’s website, direct inquiry with the company’s secretary, and the Investor Relations Center. AOT also conducts airport visits to help the shareholders understand AOT’s business and receive the appropriate returns. Equal Treatment toward Shareholders AOT treats all shareholders equally and fairly. For example, we allow minor shareholders, who hold proportion of shares not less than 100,000 shares by means of a single shareholder or multi-shareholder, to propose agendas in the shareholders’ general meetings and nominate the names of persons with adequate qualifications to be considered as committee for AOT’s annual shareholders’ general meetings prior to the meeting. Moreover, we give notification of the meeting agendas in advance so the shareholders can study the information to accompany their considerations before making any decisions, facilitating shareholders who are unable to attend the meeting in person to appoint any other person as a proxy of such shareholder. In terms of voting, we provide voting ballots for every agenda which use the barcode system in recording and displaying the results of the vote, allowing the shareholders to vote individually in electing the committee. There are measures to prevent the use of internal information for the gains of committee, executives, finance and accounting directors recently elected by notifying them responsibilities to inform possessions held by such shareholder, spouse, and children under legal age that hold AOT securities to the Securities and Exchange Commission under section 59 of the Securities and Exchange Act B.E.2535. All of this is to ensure transparency, clarification and verification. Roles of Stakeholders AOT places importance on all groups of stakeholders including AOT’s employees and executives, affiliates, shareholders,

customers, government, investors, business partners, creditors, society, communities, and other related organizations. In doing so, AOT provides care and protection of the basic rights of these stakeholders according to related laws and regulations such as the tending of operational environment and health, safety in life and property, support and welfare in various aspects and compliance with contracts, agreements or other terms, as well as communication channel and exchange of information, suggestions, opinions and complaints from all groups of stakeholders for mutual benefits. Disclosure and Transparency AOT emphasizes the accuracy, completeness, timeliness, credibility and equal accessibility of information which needs to be notified to the Stock Exchange of Thailand and the shareholders. In preparing this information, AOT has established the Corporate Secretary Office to oversee the disclosure of information to the Stock Exchange of Thailand and the Investor Relations Center to inform and answer questions to investors and shareholders. Apart from the standard disclosure through the methods of the Stock Exchange of Thailand, the disclosure of significant information, such as annual report which publish financial and non-financial data, good governance policy, company information, press releases, both in Thai and in English, on the AOT website, is being continuously improved so that shareholders and the public can receive up-to-date and beneficial information. The Committee’s Responsibility Since 2006, the AOT Board has devised the good governance policy in writing which has been constantly revised. On 1 October 2009, the Board agreed on clarifying the employee-related policy, adding social and environmental policy, and the role and duty of the Board for more completion. In the fiscal year of 2011, AOT improved its 4th and 5th good governance policy twice in one year, i.e., on 25 November 2010 and on 17 August 2011 respectively. The improvements were about structure and the Board's composition. Owning to this, the good governance policies are posed as guidelines for the Board, executives, and all employees of AOT to adhere to. In addition, it will promote AOT as an organization with efficiency in conducting business, good governance and operations, integrity in business, transparency and accountability. AOT also put importance on conflict of personal and corporate interest by obviously setting up regulations for committees, executives, and employees. They are required to report interest and the interest of those involved in order to avoid the exploitation of duty from pursuit of personal gain. Corporate Social Responsibility

15

The AOT Board has appointed Miss Shanalai Chayakul as the corporate secretary to take responsibility for giving suggestions regarding laws and regulations noteworthy for the AOT Board and executives and oversee the activities of the AOT Board, as well as coordinate the compliance with the committee and shareholders’ resolutions to be in accordance with the AOT good corporate governance. Ever since 2002, AOT has emphasized good governance by declaring the code of conduct to show the determination in conducting business with good governance, transparency and credibility, which are all important factors to add value to the organization and all groups of stakeholders. The AOT authorized the changes in the AOT Code of Conduct dated 1 October 2009 and renamed it to be the AOT Good Corporate Governance Handbook Revised No.1, to be clear and suitable with the governance structure of AOT. The content includes the good governance policy, AOT’s corporate governance guidelines, AOT code of conduct, and good common practices, and has been compiled and distributed as a manual for the committee, executives and all employees, all of whom have to sign in the testimony to hold AOT corporate governance as their operational principles. This is to ensure that AOT will develop the appropriate management system for the utmost benefits of the shareholders, along with considering its stakeholders and its responsibility toward society and the environment. The details can be viewed on the AOT website (www.airportthai.co.th) under the title “Good Corporate Governance.” This manual is also used in the human resources administration by being featured as part of the orientation documents for new employees, inserting the good corporate governance in the fundamental training course for employees by the Human Resources Development Department according to the Annual Personnel Development Plan, holding activities in support of good governance and publicizing AOT good governance manual, hosting a talk on the related ethics to the administration of the organization to which the committees, executives of all levels and AOT employees are invited to attend and which has been recorded and publicized on the Intranet so employees who missed out can view. In terms of communication and information exchange, stakeholders can contact AOT through various channels such as the website www.airportthai.co.th where they can contact/complain to a number of divisions in the Comment section under the subject “Contact Us.” On the other hand, to propose suggestions or complaints can be done through the comment boxes stationed at all airports under the responsibility of AOT. AOT has set up an Investor Relations Center to take responsibility for communicating the information that reflects the

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Corporate Social Responsibility

true value of the organization, discloses accurate, timely and transparent information in order that asset analysts, shareholders, organizational investors, general investors, and other related agencies can present the works, and notifies AOT’s information to the related persons according to the regulations of the Stock Exchange of Thailand to build confidence and enhances good image and attitude for stakeholders. The activities held throughout the fiscal year of 2011 can be concluded as follows: • Company Visit 41 times / year • Conference Call/ Telephone Call/E-mail 414 times / year • Analyst Briefing 1 time / year • Roadshow 4 times / year Domestic 1 time / year International Besides, AOT organized a visit for shareholders at airports under its responsibilities such as Phuket International Airport on 25 February 2011 with totally 50 participants. For coordination and suggestions on investor relations to the executives of AOT, investors or interested persons can contact AOT’s Investor Relations Center directly through 4 channels: • Telephone: 0 2535 5900 • Fax: 0 2535 5909 • E-mail : [email protected] • Mailing Address: Investor Relations Center, Airports of Thailand Public Company Limited 333 Cherdwutagard Road, Si Kan, Don Muang, Bangkok 10210

Internal Control

AOT places importance on internal control on business conducting and keeps consistent evaluation. The internal control structure has 5 standard components which are environment control, risk assessment, control activities, information and communication control and evaluation follow - up. This is to ensure that the system can be proceeded appropriately for the changing circumstances and consistent with the acceptable risk level. Moreover, AOT performs the Control Self Assessment (CSA) as stipulated by the Office of the Auditor General of Thailand on Internal Control Standards B.E. 2544 by presenting the internal control report to the Audit Committee via the committee’s secretary to evaluate the sufficiency and propriety of internal control, prevent and fix of the damage which may be caused to AOT properties, including find solutions and recommendations to reduce or eliminate any risk before presenting this internal control report to the senior officer for authorization and to the AOT President and AOT Board for acknowledgement.

Corporate Social Responsibility Operations Operation Based on Corporate Social Responsibility Guidelines of Securities and Exchange Commission (SEC)

AOT emphasizes and integrates the Corporate Social Responsibility Guidelines prepared by Listed Company Corporate Social Responsibility Support Team, Securities and Exchange Commission (SEC), which also corresponds with the CSR policies, set by State Enterprise Policy Office (SEPO). The practices can be divided into 8 aspects as follows: 1. Good Corporate Governance AOT provides dutiful and responsible management which is transparent, equal, fair, efficient and accountable, which will stimulate trust and confidence in shareholders, investors, stakeholders and all related persons. This will also lead to growth and stability in the company’s sustainable economy, as detailed in the ‘Corporate Governance’ chapter. 2. Fair Business Conduct AOT places importance on the internal control system and Control Self Assessment: CSA for each department in order to prevent damage, as well as find solutions and suggestions to reduce the impact and eliminate possible risk factors. Furthermore, AOT takes into account consistent monitoring and evaluation, and prepares a clear written good corporate governance manual for all employees to follow. 3. Respect for Human Rights and Fair Treatment toward Labor As AOT recognizes that human resources are important business factors to increasing value and productions, working environment and conditions have been improved so that employees can have better quality of life and opportunities to display their potentials, receive training and increase working skills, for example, improved safety in the working environment, training courses and site visit both within and outside the country. 4. Responsibility toward Consumers AOT has improved the standards of products and services to meet universality and accessibility. Risks are considered which may harm consumers and products and services are developed to benefit consumers such as pre-boarding passenger and luggage security, and improvement of airport facilities and services. 5. Engagement in Community and Society Development AOT hosts social activities and/or engages in strengthening communities and societies affected from the company’s product and service manufacturing processes, poses

as the community’s good corporate citizenship, invents measures to reduce and stop the negative impact of operational processes on the community and society in order to allow the community and society to gain strength and be developed sustainably, for example, support and encourage education, sports, art, culture, religion and reduction of pollutants such as dust, smoke, greenhouse gases, noise impact, garbage, and wastewater, etc. 6. Environmental Conservation The increase in world population, economic growth and overconsumption of natural resources all contribute to environmental pollution and global warming, which affect both humans and the ecosystem. Regarding environmental conservation as everyone’s duty, AOT aims to improve the quality of life and handles environmental problems such as restoring and improving the environment of the communities surrounding the airports and using clean and alternative energies. Moreover, AOT emphasizes complete operation under the purpose of prevention, reparation and reduction, and Environmental Impact Assessment (EIA), as well as monitoring of environmental quality. 7. Innovations and Innovation Publicity from Corporate Social Responsibility Suvarnabhumi Airport has installed permanent Airport Noise Monitoring System (ANMS) to monitor noise impact of airport on the communities surrounding the airport, monitor noise impact from airplanes in the airport areas, and inspect flight routes, altitude, type of airplanes which have received complaints of being noisy or emitting pollution, and adopt BNR (Biological Nutrient Remove) wastewater treatment in the form of modified activated sludge, which is only available in few places in Thailand (approximately 10) and the world, to ensure that the treated water is usable and clean for the environment. Furthermore, AOT has developed a plan to construct an international passenger terminal and renovate the existing passenger terminal into a domestic passenger terminal for Phuket International Airport (fiscal years of 2009-2013) by using the LEED (Leadership in Energy and Environmental Design) criteria, which is the design principles of energy saving and environmental friendly buildings set by U.S. Green Building Council (USGBC). The designs under the Phuket International Airport Development Project are based on LEED-NC (New Construction), the evaluating criteria for medium-and-large-sized buildings and public buildings, and strive for the Platinum level Corporate Social Responsibility

17

of approval, which is the highest level of LEED. This is to increase the capacity to support the volume of air traffic and become the aviation center of the region, including increase the service efficiency of Phuket International Airport. 8. Social and Environmental Reporting AOT has compiled the first Corporate Social Responsibility report according to the GRI reporting scope to disclose information and reflect the organization’s CSR operations in economic, social and environmental aspects. This report will also serve as guidelines for improving CSR operations in the future.

AOT Aims toward Being Green Airport

AOT aims for all its 6 airports to be environmental friendly airports, by planning the Green Airport Master Plan spanning from 2011-2017. In this year, the plan is in the rules preparation and project design documents processes. The goal of the project is to save energy and reduce the amount of carbon by 10% within 2014. The steps of operation to assess management and reduce carbon dioxide (CO2) emission for the purpose of being ‘Low Carbon Airport’ can be divided into 4 steps as follows: • Mapping by labeling Carbon Footprint • Reduction by managing toward Carbon Reduction • Optimization by engaging external organizations in preparing carbon footprint and reducing CO2 emission • Neutrality by neutralizing directly emitted CO2 AOT has developed Clean Development Mechanism (CDM) under this Master Plan such as Solar Farm project, Biogas from Waste project, and solar energy and vehicular engine efficiency increasing project. Moreover, the plan emphasizes Green Airport Operation in terms of clean and low emission energy or renewable energy such as requiring all operational vehicles in the luggage sorting area below the terminal to run on electricity and Airport Limousine and Airport Shuttle Bus on natural gases. AOT also reduces GHG Emission by installing Fixed Ground Electrical Power Supply to generate electricity to airplanes while transferring passengers in order to reduce the use of auxiliary unit of airplanes in the apron which causes high level of greenhouse gases emission, and installing solar energy electrical system to generate electricity to noise measurement equipment and all communication systems in the noise measurement station. As for the Green Building, AOT has designed big buildings in the airports, especially the passenger terminal at Suvarnabhumi Airport, to save energy,

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Corporate Social Responsibility

both in terms of electricity and air conditioning. AOT aims to utilize as much natural light as possible and cools the buildings by using energy from hot water, which is a byproduct from electricity production, reducing a great amount of use of electricity from common systems.

Membership in International Associations

Since the third quarter of 2007, AOT has joined the Airport Service Quality Program or ASQ, a program of Airport Council International (ACI), which is located in Geneva, Switzerland. In 2011, over 180 leading airports all over the world participated in the program. The airports will survey the satisfaction of passengers by using the same standards of questionnaire across the globe to gather information on 34 topics regarding airport services such as transport system, boarding pass checking, immigration checking, stores, restaurants, cleanliness and atmosphere within the terminal, etc. Then, the airports will collect the questionnaires and return them to the program for processing and preparing result report, then ranking the member airports in comparison with the other participating airports in the program. Each year, the program awards five best participating airports in the world and in each category by passenger volume and region. In 2011, Suvarnabhumi Airport is placed in the category of best airports which have over 40 million passengers/ year, including 16 other airports. The leading airports in this category are Changi Airport, Republic of Singapore; Chek Lap Kok Airport and Beijing Capital International Airport of the People’s Republic of China; and Dubai Airport, United Arab Emirates. Joining the program yields AOT a clear insight into the satisfaction level of passengers at Suvarnabhumi Airport in each service aspect, which will be employed as guidelines for service improvement according to the international standards of service provision, and shows AOT the methods and practices of improving service quality of other leading airports. AOT aims for Suvarnabhumi Airport to become the world’s leading airport in excellence of service, and has developed clear policies and objectives to improve the service quality of Suvarnabhumi Airport to receive ranking as in the top 10 airports with best service in the world. Constant and continuous improvement results in increasing passenger satisfaction for Suvarnabhumi Airport. The rankings by ASQ show that Suvarnabhumi Airport has gradually gained better position by placing 41st in 2007, 28th in 2008, and 24th in 2009. Despite the

Establishment of Joint Agreement with Beijing Capital International Airport

Establishment of Joint Agreement with Incheon International Airport

Establishment of Joint Agreement with Austin-Bergstrom International Airport

Establishment of Joint Agreement with Munich Airport

fall to 45th in 2010, which resulted from the increased number of passengers by 120,000–140,000 people per day in average, inevitably affecting service, in 2011, Suvarnabhumi Airport has managed the density and encouraged employees to provide service with courtesy and generosity. Also, AOT allowed Chiang Mai International Airport to join the ASQ program in the beginning of 2011, showing AOT’s determination to enhance service quality in all airports under AOT’s responsibility toward being world class airports in terms of service. In addition, AOT has established joint agreements with 5 leading airports including Munich Airport, signed on 16 December 2009; Incheon International Airport, on 23 February 2010; and Narita International Airport on 8 July 2010. 2 more joint agreements were established in 2011, which are Beijing Capital International Airport, signed by Mr. Serirat Prasutanond, the President of AOT, and Mr. Zhang Guanghui, the President and CEO of Beijing Capital International Airport Company Limited at Beijing Capital International Airport, People’s Republic of China, on 22 February 2011, and Austin-Bergstrom

Establishment of Joint Agreement with Narita International Airport

International Airport, signed by Mrs. Supaporn Burapakusolsri, Senior Executive Vice-President in Planning and Finance, and Mr. Jim Smith, Executive Director of City of Austin Department of Aviation, which is the airport management unit of Austin-Bergstrom International Airport (ABIA), United States of America, on 6 September 2011. The establishment of Sister Airport Agreements has the purposes of elevating the service quality of airports in AOT’s responsibility toward competitive position with other international airports and benchmarking with internationally successful airports, as well as increasing other opportunities for AOT as follows: (1) To elevate the airport quality and administration level (2) To learn and disclose new technologies (3) To receive On the Job Training (OJT) (4) To exchange opinions and experiences (5) To generate new ideas to improve services (6) To welcome business collaboration Corporate Social Responsibility

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Airport Service

AOT’s administration, services and security are based on a number of standards including ISO9001, ISO14001, ISO18001, Annex 14 and Annex 17 of International Civil Aviation Organization: (ICAO), Air Navigation Act B.E. 2497, Airports Authority of Thailand Act B.E. 2522 and its amendments, the Royal Decree Defining the Authority, Rights and Benefits of Airports of Thailand Public Company Limited B.E. 2545, the Royal Decree Determining the Time for Repealing Airports Authority of Thailand B.E. 2545, Standard Qualifications Act for Board of Directors and State Enterprise Officials B.E. 2518 and its amendments, Public Limited Company Act B.E. 2535 and its amendments, Securities and Exchange Act, the Regulation of the Civil

Aviation Board, and the regulation of the Office of Prime Minister of Thailand on National Security B.E. 2552. All this is to ensure that passengers in every airport receive international standard service and security. In 2011, AOT accommodated 109 scheduled airlines, which can be divided into 97 mixed passenger-cargo airlines and 12 pure cargo airlines. The air traffic volume of AOT's 6 airports amounted to 441,440 flights, with the total of 66,300,666 passengers and 1,408,068 tonnes of cargo and postal shipments. The details by type according to each airport are as follows: (Information between 1 October 2010, and 30 July 2011)

Flight Types International Domestic Amount Amount of Inbound and of Inbound and Outbound Outbound Number of Freight and Number Freight and Aircraft Number of Postal Shipment of Aircraft Number of Postal Shipment Airports Movement(s) Passenger(s) (Tonnes) Movement(s) Passenger(s) (Tonnes) Suvarnabhumi 212,959 37,386,227 1,281,611 75,581 10,414,358 52,607 Don Mueang 2,507 28,798 24 45,001 3,944,078 7,110 Chiang Mai 3,746 345,320 109 27,054 3,335,070 20,419 Hat Yai 1,635 204,152 - 12,043 1,630,416 14,826 Phuket 27,389 4,136,812 9,499 27,721 4,069,593 18,088 Mae Fah Luang-Chiang Rai 152 9,497 - 5,652 796,345 3,775 Total 248,388 42,110,806 1,291,243 193,052 24,189,860 116,825

Number of Aircraft Movements by Type of Movement and Time Period (October 2010 – September 2011) Suvarnabhumi Airport

Unit : Flight

Daytime (06.00 - 17.59)

Nighttime (18.00 - 05.59)

Flight Type

Inbound Outbound Inbound Outbound

Commercial Passenger Flights Commercial Cargo Flight General Aviation Flight State and Military Aviation Flights* (4,346 Flights) Total

80,407 83,183 57,042 54,284 2,718 3,352 3,325 2,691 420 395 350 373

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Corporate Social Responsibility

- - - 83,545 86,930 60,717 57,348

Don Mueang International Airport Flight Type Commercial Passenger Flights Commercial Cargo Flights General Aviation Flights State and Military Aviation Flights * (27,067 Flights) Total

Unit : Flight

Daytime (06.00 - 17.59)

Nighttime (18.00 - 05.59)

Inbound Outbound Inbound Outbound 15,535 4 949

19,334 6 1,294

6,700 1 577

- - - 16,488 20,634 7,278 3,108

Chiang Mai International Airport Flight Type Commercial Passenger Flights Commercial Cargo Flights General Aviation Flights State and Military Aviation Flights * (6,105 Flights) Total

Unit : Flight

Daytime (06.00 - 17.59)

Nighttime (18.00 - 05.59)

Inbound Outbound Inbound Outbound 9,418 - 1,527

10,331 - 1,532

4,311 - 142

Flight Type

3,386 153

- - - 10,945 11,863 4,453 3,539

Hat Yai International Airport

2,878 230

Unit : Flight

Daytime (06.00 - 17.59)

Nighttime (18.00 - 05.59)

Inbound Outbound Inbound Outbound

Commercial Passenger Flights 4,629 4,625 2,121 2,128 Commercial Cargo Flights - - - General Aviation Flights 81 82 7 5 State and Military Aviation Flights * (7,738 Flights) - - - Total 4,710 4,707 2,128 2,133

Phuket International Airport Flight Type Commercial Passenger Flights Commercial Cargo Flights General Aviation Flights State and Military Aviation Flights * (901 Flights) Total

Unit : Flight

Daytime (06.00 - 17.59)

Nighttime (18.00 - 05.59)

Inbound Outbound Inbound Outbound 17,465 - 562

17,268 - 550

9,324 - 205

9,518 218

- - - 18,027 17,818 9,529 9,736

Corporate Social Responsibility

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Mae Fah Luang-Chiang Rai International Airport

Unit : Flight

Daytime (06.00 - 17.59)

Flight Type

Nighttime (18.00 - 05.59)

Inbound Outbound Inbound Outbound

Commercial Passenger Flights 1,884 1,807 767 844 Commercial Cargo Flights - - - General Aviation Flights 246 241 5 10 State and Military Aviation Flights * (843 Flights) - - - Total 2,130 2,048 772 854 Remark - Commercial passenger flights means regular charter flights and domestic non-scheduled flights that transport passenger and cargo. - Commercial cargo flights means fights that transport only cargo. - General aviation flights means business and executive flights, technical flights and domestic non-scheduled flights that are operators, not airlines. - *State and military aviation flights cannot be separated into time periods as the data is not recorded in AOT's flight information system. AOT receives data from the Aeronautical Radio of Thailand Company Limited.

Total Number of Passengers by Airport Use (October, 2010 – September, 2011) Passenger(s) Embarked and Disembarked Transit Airport Disembarked Embarked (1) (2) Suvarnabhumi Don Mueang Chiang Mai Hat Yai Phuket Mae Fah Luang – Chiang Rai Total

23,170,077 1,999,432 1,810,228 911,539 4,093,196

23,020,771 1,971,155 1,869,275 922,080 4,069,101

46,190,848 3,970,587 3,679,503 1,833,619 8,162,297

1,609,737 2,289 887 949 44,108

Total 47,800,585 3,972,876 3,680,390 1,834,568 8,206,405

410,548 395,285 805,833 9 805,842 32,395,020 32,247,667 64,642,687 1,657,979 66,300,666

Remark - Number of embarked and disembarked passengers comprised origin-and-destination passenger and transfer passenger - Number of Total passengers calculated from (1) embarked and disembarked passengers which are origin-and-destination passenger and transfer passenger, and (2) transit passenger - Ratio of transfer passenger at Suvarnabhumi Airport is approximately 20% of embarked and disembarked passengers

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Corporate Social Responsibility

Direct Economic Value of AOT

From the AOT business operations and the CSR operations under Nice People - Nice Air, Clean Air and Deep Breath strategies of the year 2011, it can represent the AOT economic value as illustrated below:

Economic Activities

Amount (Baht)

Direct economic value generated • Revenues Direct economic value distributed • Operating costs • Employee wages and benefits • Payments to providers of capital • Payments to government • Community Investment Economic value retained

29,480,697,964.65 9,286,187,122.71 3,934,107,126.08 2,971,786,898.45 1,529,297,653.08 6,546,779.00 11,752,772,385.33

Note : The information above is cited from the international Accounting Standard (IAS)

Employee Information and Personnel Development Plan

AOT recognizes that personnel is significant resources and is directly associated with the quality of each aspect of the organization’s operation; therefore, AOT determines and pays its employees in the appropriate rate with the market’s return rate. The returns for employees include salary, bonus, per diem and other supports such as medical support, accommodation for working upcountry, educational support, etc., and benefits from provident fund which AOT joined on 28 March 1994, and to which AOT deposits money for each member on the same day as the members, according to the years of employment, as follows: (1) Employees with fewer than 10 years of employment, AOT supports 9% of salary (2) Employees with more than 10 years of employment but no more than 20 years, AOT supports 10% of salary (3) Employees with more than 20 years of employment

but no more than 25 years, AOT supports 12% of salary (4) Employees with more than 25 years of employment, AOT supports 15% of salary Employees have the option to pay their monthly savings in the rate of 2-15% of their salary according to their years of employment. The total amount of the money will be given to employees once they are deceased, retire or have their employment terminated with no guilt as stated in the Provident Fund regulations, and the money will be paid once in total. In the year 2011, AOT provides budget for this provident fund with amount of 247.985 million Baht which is sufficient for all eligible employees. AOT is aware of fair operating practices toward our employees to be in line with the State Enterprise Labour Relations Act, B.E. 2543, which is a law considering on labor protection and relations in the state enterprise sector in order to protect employee benefit not being less than the minimum standard of labor protection law. It is certain that AOT does not have forced labor, child labor, or any actions against collective bargaining of employees. The numbers of

Personnel Information by Type and Operational Site (As of 30 September 2011)

Employee Information Total Number of Employees Number of Employees by Gender • Male • Female Number of Employees by Age Groups • Under 30 Years Old

2011 4,272 2,703 1,569 734 Corporate Social Responsibility

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Personnel Information by Type and Operational Site (As of 30 September 2011) (Continued)

Employee Information • From 30 to 50 Years Old • Over 50 Years Old Number of Employees by Level • Executive Employees (From level 9 Onward) • Operational Employees (Not Above level 8) Number of Employees by Site • Headquarters • Suvarnabhumi Airport • Don Mueang International Airport • Chiang Mai International Airport • Hat Yai International Airport • Phuket International Airport • Mae Fah Luang-Chiang Rai International Airport



Worker Information Total Number of Workers Number of Workers by Gender • Male • Female Number of Employees by Age Groups • Under 30 Years Old • From 30 to 50 Years Old • Over 50 Years Old Number of Employees by Site • Headquarters • Suvarnabhumi Airport • Don Mueang International Airport • Chiang Mai International Airport • Hat Yai International Airport • Phuket International Airport • Mae Fah Luang-Chiang Rai International Airport



Total Personnel Information • Total number of workforce • Number of employees • Number of workers

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Corporate Social Responsibility

2011 2,690 848 86 4,186 1,159 2,353 169 167 143 175 106 2011 527 428 99 367 160 222 122 22 33 107 31 2011 4,684 4,272 (91.20%) 527 (8.80%)

New and Retired Personnel (As of 30 September, 2011)

Personnel Information

2011

Number of all new employees 288 (6.74%) Number of retired employees (Resignation and Retirement) 45 (1.05%) Number of New Employees by Age Groups • Under 30 years old 196 (4.59%) • Between 30 – 50 years old 92 (2.15%) • Over 50 years old Number of New Employees by Gender • Male 155 (3.63%) • Female 133 (3.11%) Number of New Employees by Site • Headquarters 95 (2.22%) • Suvarnabhumi Airport 201 (4.71%) • Don Mueang International Airport 6 (0.14%) • Chiang Mai International Airport 6 (0.14%) • Hat Yai International Airport 13 (0.30%) • Phuket International Airport 11 (0.26%) • Mae Fah Luang-Chiang Rai International Airport 11 (0.26%) Number of Retired Employees by Age Groups • Under 30 years old • Between 30 – 50 years old • Over 50 years old 45 (1.05%) Number of Retired Employees by Gender • Male 29 (0.68%) • Female 16 (0.37%) Number of Retired Employees by Sties • Headquarters 27 (0.63%) • Suvarnabhumi Airport 66 (1.54%) • Don Mueang International Airport 11 (0.26%) • Chiang Mai International Airport 2 (0.05%) • Hat Yai International Airport • Phuket International Airport 2 (0.05%) • Mae Fah Luang-Chiang Rai International Airport -

Human Resources Development

Training to develop AOT’s human resources in the fiscal year of 2011 can be concluded as follows: • Airport Management Training Program/Training Courses 112 • General Management Training Program/Training Courses 78

• Functional & Operations Training Program/Training Courses 165 • Soft Skills Training Program/Training Courses 73 The training hours by level and gender of employees (As of 30 September 2011) are as follows:

Corporate Social Responsibility

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Employees’ Training Hours

2011

Average Training Hours (hrs./person/year) Average Training Hours by Gender (hrs./person/year) • Male • Female Average Training Hours by Level of Employees (hrs./person/year) • Executive level (level 9 and over) • Operational level (Not above level 8)

The training courses in the AOT Human Resources Development Plan include • Successive programs/training courses according to the annual human resource development plan - Airport Courses such as Orientation, Airport Operations and the 3 levels of Airport Management: Basic, Intermediate, and Advance - Operation Courses such as Instrument Rating Ground: IRG, Private Pilot License: PPL, Airport Safety, Accident/Incident Investigation and Root Cause Analysis, Baggage Conveyer System Revision, Body Armor Practice Revision, and Emergency Light System Revision, etc. - Business and General Management Training Courses such as Standard Course of International Accounting for Committee and Operators, IT Auditing, Foreign Languages (Japanese, Korean, Chinese), Work Manual Preparation, and Occupational Safety Manual and Regulations Preparation, etc. - Courses for AOT Board and High Level Executives such as Director Accreditation Program by Thai Institute of Directors, Senior Executives' Justice Management Program by the Office of the Administrative Courts, Seminars based on State Enterprise Quality Evaluation System by State Enterprise Policy Office (SEPO), and Seminars on inequality reduction and business opportunity generation by Thailand Development Research Institute, etc. - Training, Conference, and Seminars Abroad such as ACI Asia-Pacific Human Resource Best Practice Seminar in Malaysia, International Visitors Leadership Project in the United States of America, Senior Crisis Management Seminar in

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Corporate Social Responsibility

13.87 15.45 11.16 8 14

the United States of America, Advance Imaging Technology International Policy Summit in the United States of America, and the 28th ASEAN International Airports Association Conference in Republic of Singapore, etc. • Additional Programs/Training Courses - AOT’s Public Airport Manager Courses - Training Programs based on support plan for employees’ learning, under the joint agreements established between Suvarnabhumi Airport and other international airports (Sister Airport Agreement) - State Enterprise Performance Appraisal: SEPA - AOT’s Competency Development Program - English Proficiency Development Program for AOT employees by self-learning via E-Learning system made by “Tell me more”

CSR Training

AOT showed its emphasis on employee engagement by joining CSR Day hosted by the collaboration between Corporate Social Responsibility Institute (CSRI), the Stock Exchange of Thailand, and Thaipat Institute. The topic of the training was Fundamental CSR Engagement, with the aim to instill CSR understanding in employees so they can practice both CSR-inprocess and CSR-after-process. The event was held on 10-11 August 2011, and attended by 75 employees. The participants presented CSR operations regarding customers, business partners, communities, environment, colleagues, inferiors, and department/division. Also, there were brainstorming activities to propose interesting organizational CSR practices, including success indicators in the forms of input, output, outcome, and impact, which are beneficial for the organization’s CSR operation planning. Furthermore, on 18 August 2011, AOT held an event for “CSR Day” workshop result presentation at the

Safety and Occupational Health Operation

Auditorium of AOT Headquarter. The judges present at the event included Miss Shanalai Chayakul, the Corporate Secretary, Mrs. Monrudee Gettuphan, Vice President of Business Management Department, Mrs. Toompetch Boonyaridh, Vice President of Corporate Communication Office, and Natnuntapong Buabutr, a lecturer from Thaipat Institute. Out of the 8 competing activities, 4 were awarded, which are “Tiny Lunch Boxes for the World,” to reduce garbage from take-away food, “Bonus for Fewer Papers” and “Reduce and Think Before Use” to reduce the use of paper and encourage communication through information technology, and “AOT HAPPY OFFICE(S)” to arrange areas which resemble the beauty, refreshment, and pleasantry of the home for the employees. All of these activities will be adapted to use in AOT.

Safety and Occupational Health Operation Safety, Occupational Health and Working Environment Administration and Management AOT realizes the importance of safety, occupational health and working environment management. In 2011, AOT has improved the organizational structure by adding the Aerodrome Standardization and Occupational Health Line, which covers departments exclusively responsible for airport standards and occupational health and working environment. Also, AOT has designated occupational safety divisions in every airport in AOT’s responsibility, with particular supervising personnel, to ensure that all operations, activities or projects of the airport will not cause hazardous effects on the employees, property or contractors working in the company. Safety Training AOT holds trainings and courses both required by laws and additional to increase beneficial knowledge such as the

training courses for the safety officers in all levels, Basic Fire Recue and Fire Fighting course, Accident Investigation and Reporting courses, Ergonomics courses for airport officers, Basic First-Aid Training courses, the annual fire drills, Safety Laws in the previous year courses, and practices, and Accident Cause and Prevention courses, etc. Working Environment Evaluation and Health Checkup for Employees Working among Risk Factors AOT evaluates the working environment such as lights and noises, especially loud noises, which are the main risk factors at work to affect officers in the airport areas in order to determine measures and practices to prevent and fix. This is to ensure that employees work in sound working environment, are free of occupational diseases and have good sanitation. Apart from maintaining safety and arranging working environment as stipulated by laws, AOT also organizes annual health checkup and gathers data of employees working among risk factors in the previous years for proper health checkup based on the risk factors and preparation of employees’ personal health book. The operation is expected to be completed for all airports in the fiscal year 2012, which will provide risk employees with complete health checkup that covers risk factors and offers systematic health monitoring information which can be conveniently searched, inspected and analyzed. Employees’ Accident Statistics (Only Those Resulting in Absenteeism) The continuous safety campaigns and accident prevention caused the trend of accidents resulting in absenteeism rate to decrease. In 2007, the figure of accidents resulting in absenteeism was 9 times and continually dropped until in 2011, such accidents occurred only 3 times. (Data as of 30 september 2011) Corporate Social Responsibility

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Graph showing number of accidents causing absences from work

(time)

10 8 6 4 2 0

2007 2008 2009 2010 2011

The information of AOT employees in accidents or sickness from operation in 2011 is as follows:

AOT Employees in Accidents or sickness from Operation

2011

Total number of Employees in Accidents or sickness from Operation Number of Employees in Accidents or sickness from Operation by Gender • Male • Female Number of Employees in Accidents or sickness from Operation by Case • Injured and Treated • Death Medical Expenses/Other Compensations by Case (Baht) • Injured and Treated • Death

3 2 1 3 1,316,192 -

Remark: Data as of 30 September 2011

Injury Frequency Rate: IFR and Injury Severity Rate: ISR (Only Those Resulting in Absenteeism) IFR and ISR of injuries are the figures reflecting the number of employees who were injured to the point of being absent from work (persons/million working hours) and

the number of days lost from accidents (days/million working hours) respectively. Since 2007, the IFR and ISR of injuries have been decreasing. In 2011, IFR accounted for 0.43 and ISR 7.25 (Data as of 30 September 2011)

Graph showing injury frequency rate

Graph showing injury severity rate

(individual/million working hours)

(day/million working hours)

2

50

44.56 44.56

40 1

1.09

30

0.87 0.42

0

28

0.39

0.43

2007 2008 2009 2010 2011 Corporate Social Responsibility

20 10 0

6.29

4.46

6.46

7.25

2007 2008 2009 2010 2011

Taking care of the employees’ health and safety so that employees are safe, healthy, not injured or sick or develop conditions from working is considered as the important responsibility of the organization; therefore, AOT aims to support and encourage consistent and continuous safety, occupational health, and working environment operations, in terms of improving working environment, risk and unsafe conditions according to the correct practices and methods. Moreover, AOT has developed a working safety manual with the content covering characteristics of most AOT’s operations for employees to study and employ as guidelines for safety at work, as well as increase the efficiency of accident prevention and reduction and occupational diseases prevention.

Society and Environment Conservation Efforts Social Engagement and Development AOT has involved in social engagement and development plan under our guidelines “Air Preservation” which bring about 3 strategies. For the “Nice People, Nice Air”, AOT has intended to support in educations, arts, religions, and sports by proceeding many aspects of activities, for example, build and continually support a Border Patrol Police school in Chiang Rai, Tak, Mukdaharn, Chantaburi, and Narathiwat provinces, arrange a Thai encyclopedia contest for school surrounding Suvarnabhumi airport, launch a project called “Livable Community with Good Air and Be Knowledgeable” by appointed Thevaklongtrong school, locates in the south of Suvarnabhumi airport, to be a master school and learning center, hold a student football competition between 6 schools surrounding the AOT airports and bring the winner of each school to compete for AOT CUP, arrange an annual student drawing contest on topic “Love the Forest, Love the Water, and Love the Air,” and take employees a mediation center. For the “Clean Air” strategy, AOT has collaborated with government sector to carry out environmental projects, such as the signing of a memorandum of cooperation in promoting environmental management with the Department of Environmental Quality Promotion and the Office of National Buddhism in the “Do good to the Earth, Reduce Carbon, Reduce Global Warming” project, collaboration with the Pollution Control Department in the “Strengthening Community in Smoke Pollution and Open Burning Management” at Wiengpapao sub-district, Chiang Rai province. And for the “Deep Breath” strategy, AOT has conducted activities to pass on knowledge to employees as well as employee engagement in creating a socially-responsiblerelated project in order to perform within an organization, along with encouraging establishment of volunteering spirit among employees. For instance, reforestation of mangrove forest in Samutprakan area, AOT Senior Volunteering project offering basic knowledge on fire fighting for the 6 surrounding schools conducted by AOT’s airport firefighter and rescue staffs, border patrol police school visit together with planting trees and treat student lunch. In addition, AOT holds programs concerning safety such as safety helmets campaigns for students in schools near the AOT headquarter to encourage children to take precautions in using motorcycles, which corresponds with

Mr.Nirandra Theeranartsin, Senior Executive Vice President (Regional Airports) and Acting President ( 1 May – 30 September 2011), and AOT officials jointly planted mangrove forest at Chulachomklao Fortress, Samutprakan province.

the cabinet's resolution that allocates all government agencies and state enterprise premises to be 100% helmet areas. In 2011, AOT has conducted this campaign in 4 schools by offering safety helmets to students and school personnel to prevent dangers from riding motorcycles. In order to support community economy, Suvarnabhumi Airport also provides an area for community free market to community members to sell their commodities at the airport, and also annually arrange “Suvarnabhumi Fair” as an opportunity for community members to sell their OTOP (One Tumbon, One Product) products. Wastewater Management and Water Recycle Suvarnabhumi Airport used water in the amount of 5,496,573 cubic metres per year (data between October 2010 and September 2011) and treats wastewater by the BNR (Biological Nutrient Remove) system in the form of Modified Activated Sludge, which is only available in few places in Thailand (approximately 10 locations around the world). The efficiency of this system eliminates the wastewater’s pollutants in the form of BOD, Nitrogen, and Phosphorus, which are substances that cause the spread of water weeds, thus polluting the water origin. Consequently, treated wastewater from Suvarnabhumi’s central effluent treatment system can be released into public water sources with no harm to the environment, no problems of weeds growth and also with potential to increase the quality of the receiving water sources. Efficiency of wastewater Treatment 1. 99% of BOD can be treated. (The impurity of water upon entering the system is 250–300 milligrams per liter but the impurity of water after treatment is 2-4 milligrams per liter. Other effluent treatment system can reduce BOD to 10-20 milligrams per liter and the standard industrial effluent which Suvarnabhumi Airport has to meet is not over 20 milligrams per liter.) 2. 85% of Nitrogen can be treated. (The impurity of water upon entering the system is 60-70 milligrams Corporate Social Responsibility

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per liter but the impurity of water after treatment is 7-9 milligrams per liter. Other effluent treatment system can reduce Nitrogen to 10-12 milligrams per liter. 3. 80% of Phosphorus can be treated. (The impurity of water upon entering the system is 7-10 milligrams per liter but the impurity of water after treatment is 1.5-2 milligrams per liter. Other effluent treatment system can reduce Phosphorus to 4-6 milligrams per liter

The amount of wastewater entering the central treatment system, which is 2,378,346 cubic metres per year (information between October 2010 and September 2011), has been treated and recycled to generate economical and environmental value according to the Zero Discharge principle. This principle discharges no pollution into the environment/ community (the discharge into environment/community equals zero). The treated wastewater is used for further purposes.

Quality of Treated Wastewater Analysis INFLUENT AND EFFLUENT QUALITY (FULL SUITED ANALYSIS) Parameter

Unit Standard Oct. 10 Nov. 10 Dec. 10 Jan. 11 Feb. 11 Mar. 11 Apr. 11 May. 11 Jun. 11 Jul. 11 Aug. 11* Sep. 11

1. Temperature ํC - 2. pH - 6.0-9.0 3. DO mg/L - 4. Alkalinity mg/L - 5. Color & - - Odor 6. BOD mg/L 10 7. COD mg/L - 8. SS mg/L 30 9. VSS mg/L - 10. Oil&Grease mg/L - 11. Ammonia mg/L - 12. Nitrate mg/L - 13. Nitrite mg/L - 14. TKN mg/L - 15. Total mg/L 10 Nitrogen 16. Total mg/L 2 Phosphorus 17. Chloride mg/L - 18. Copper mg/L - 19. Cadmium mg/L - 20. Chromium mg/L - 21. Lead mg/L - 22. Manganese mg/L - 23. Nickel mg/L - 24. Mercury mg/L - 25. Zinc mg/L - 26. Arsenic mg/L - 27. Total Colonies/ - Standard ml Plate Count 28. Fecal MPN/ - Coliform 100 ml Bacteria

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27 30 29 29 28 29 30 28 29 30 - 30 6.95 6.98 6.98 7.21 7.36 7.00 7.00 7.15 7.25 7.80 - 7.01 3.98 4.78 4.93 4.91 4.55 3.96 4.50 4.85 4.88 4.91 - 3.95 62 98 118 82 160 70 112 86 138 170 - 76 Ligh Ligh Ligh Ligh Ligh Ligh Ligh Ligh Ligh Ligh - Ligh yellow yellow yellow yellow yellow yellow yellow yellow yellow yellow yellow 3 4 6 3 4 3 3 2 4 4 - 4 27 37 46 31 45 35 38 33 36 27 - 38 3.2 7.0 4.8