SD Report 2015 English Revision

ENGLISH VERSION

Table of Content

Message from Chief Executive Officer 1

About Moong Pattana International 2

Moong Pattana’s Direction to Sustainability Development 3

Governance of Sustainability Development 5

Factor to Sustainability Development 6

Dedication for Human Resources Development 7

Support and Creation of Shared Value 12

Creation of Memorable Customer Experience 20

Development of Sustainable Relationship with Alliances 23

Reduction of Environmental Impacts 24

Good Corporate Governance 25

2015 Sustainability Development Results 26

2016 Sustainability Development Plans 27

SUSTAINING DEVELOPMENT REPORT 2015

MOONG PATTANA INTERNATIONAL PUBLIC COMPANY LIMITED Page 1 From 27

Message from Chief Executive Officer Moong Pattana International PCL. (“MPI”) continue striving to integrate sustainability into our day to

day operation processes, aiming of continuity assuring the short and long-term benefits to all of our

stakeholders. We are committed to deliver the high levels of sustainability development, and aim to bring our

expertise creating positive social and economy impact under Creating Share Value (CSV) platform. It’s a

reflection of our strong commitment to improve quality of life and solving social issues of Thai society and

communities.

From over 30 years experiences in baby and mom industry with strong leadership position of Pigeon

product, MPI is today well perceived as “the expert in baby and mom product” among customers and partners

in the industry. The key activities were built around our expertise, providing the education, knowledge and

workshop to prolong the breastfeeding period in order to create the bonding and happy moment cycle. To

encourage and promoting the breastfeeding among moms, we continue providing the consultancy to moms and

the medical personals in hospital including the breastfeeding consultation rooms in both upcountry and Bangkok

hospital.

People development is our priority. We consistently promote our people to unlock personnel’s

potential and continue emphasizing the human resources management i.e, Selection and recruiting,

Compensation and benefits, Career development and Employee relation. We encourage our people to take part

in creating share value with strong social contribution mind set and good corporate governance leading to the

successful implementation of sustainability development.

The business result could not be accomplished without embedding the sustainability as part of business

strategy to create share value and making the social and economy impact. MPI will continue striving to deliver

the commitment of the sustainability development implementation. The strategic framework has been

developed and promoting the inclusion of sustainability activities into our business practices as the

sustainability journey. This will also include the structure and systematic approach to support the initiatives

aligning to the corporate growth and sustainability strategy.

We will encourage our employees for their ongoing commitment towards sustainable development and

giving it forward to communities, society, customers and business partners.

Ms.Suwanna Chokdee-anand Mrs.Sureeporn Anuvatudom

Chief Executive Officer Joint-Chief Executive Officer



About Moong Pattana International

VISION

"Striving for excellence in products and service with business ethic and integrity of

business operation, fulfilling customer and investor expectations whilst

achieving utmost relationship with business partners."

Found and established as the distributor of Pigeon kitchenware and mothercare & baby accessories, since 1981

Moong Pattana International Public Co. Ltd. has been a distributor of consumer products with constantly-

growing sales :

In year 2015 The Company increased its registered capital to 200 million Baht, and prepare short and long

term plan to increase distribution channel for new business. In addition to develop and increase the capability

to be the secure and sustaining distributor.



Moong Pattana’s Direction to Sustainable Development

Moong Pattana International Public Co. Ltd. aims to develop sustainability to our business to ensure short and

long-term benefits of its stakeholders, mutual and consistent growth of business partners or alliances with the

Company, and well-being of the community and society.

To enhance business’s growth together with the stakeholders, the Company realizes the importance of

promoting Creation of Shared Value and social responsibilities by its personnel; hence, Sustainability

Development has been embedded as part of daily assignments, business operations, and organizational culture

with clear direction in strategies. The Company has also integrated Sustainability Development as part of the

business strategies of the organization with constant reviews and revisions for improvement. By adhering

Sustainability Development to the organization’s Core Values, the company cares for results, implementations,

care for customers, personnel’s development, creation of innovations, and attaining and retaining of

relationships with business partners by considering impacts from business operations to all stakeholders not

only in terms of economics, community, and society but also environment in accordance to the following

concept of building a sustainable organization:

Decrease environment

impact

Manage operation

by certified standard

Dedication for HRD

Respects to human

right & equity treatment

Manage by corporate

governance

Sustainable profit

Striving to society

& community

development

Support & assist Social and

business sectors

Concentrated in products

safety & responses to

consumer need.

Focus on innovation

& sustaining in products

Emphasized & responsible

on consumer

Creation of memorable

& sustainable relation

with alliances

Core Value

Operation Excellence

Partnership

Employee

Customer Centric

Promote innovation in

decreasing environment impact

of product & packaging through

supply chain by international

standard



Based on the concept, the Company holds the belief that the Core Values adhered by the staffs, which are

Operation Excellence, Partner, Employee, and Customer Centric, would be the driver to Sustainability

Development for the organization, combined with the consideration to lower environmental impacts and

interests of stakeholders and community / society of the Company.

Human resources development are regarded as the key factor to Sustainability Development. Personnel are

valuable resources who propel economy, community, and environmental-impacts reduction. Believing in

human resources’ potential, the Company aims to develop leaders and quality employees at all levels; thus,

such developments are initiated at all levels from skills enhancement to leadership evolvement for long term.

Furthermore, the Company supports and connects with its business partners to form long-term and sustainable

relationships with its alliances and all stakeholders to include promoting customers experience on products /

services or sharing of memorable moments with the Company through various activities, such as, Pigeon Little

Moment Club and Meet the Expert, etc., in order to ensure customer satisfaction. Moreover, the Company

always keeps stakeholders’ interest on top of mind and carries the intention to operate business in which its

products distributed lead to positive environmental impacts.

Accordingly, the strategy for Sustainability Development advances the Company’s capability to provide

beneficial products to community. Thus, never-ending and consistent enhancement of operations promotes and

propels the concept of responsibilities and Creation of Shared Value within the community, leading to

Sustainability Development, which is one component of operations, or the organization’s culture, along with

creating values to economy, community, and environment including shareholders, employees, customers,

partners, and alliances of the Company and community / society to ensure short and long-term benefits of all

parties.



Governance of Sustainability Development Sustainability Development is one of the strategies of the Company which has attained full support from the

Company’s Board of Directors, Chief Executive Officer, and executives of all divisions. Hence, the Company

emphasizes and has integrated Sustainability Development as part of the operations of all divisions and has

appointed a Sub-Committee consisted of executives and employees from each of the divisions to altogether

create shared value to the organization and community. The duties of the Sub-Committee are :

• Establishing the direction and approach of Creation of Shared Value (CSV) in the society, which is the

operations replacing the previously-active Corporate Social Responsibility (CSR)

• Executing the communication to all employees, business partners, and related parties to ensure

awareness, understanding, and realization of CSV

• Budgeting, monitoring, and evaluating progress and results, including the report of CSV by different

divisions, and reviewing plans and budget to ensure consistent effectiveness

• Operating in accordance to approved plans and budget, which may include appointing personnel,

divisions or establishing assignments to external experts

• Promoting constant exchange of knowledge, success, and experience in CSV among internal and

external divisions

• Meeting the Creating Shared Value Sub-Committee and consistent reporting CSV operations to the

Chief Executive Officer



Factor to Sustainability Development

CREATING SHARED VALUE

FOR SUSTAINABLE GROWTH



Dedication for Human Resources Development

The Company believes that Human Resources are the mechanism which moves the organization forward in

strategic development and drives the Company’s business operations to success. Thus, personnel are fairly and

equally treated in terms of career opportunities, remunerations, trainings, safe workplace environment, and

values as quality personnel. Not only the Company trusts that personnel are its most valuable resource, but are

they also valuable to their family and community.

Based on this concept, the Company’s priority has always been development of human resources, both as people

and professionals, and has established guidelines for the development with focus to promote knowledge,

competency, and business knowledge and understanding in order to strive for their Operation Excellence,

proactively enhance their potential for business expansion, and build personal pride as part of the organization

set within the Core Values of the Company, including to influence their social responsibilities through their

engagement in the community and society as quality personnel of the organization with value for the society.

During 2011 – 2014, the Company’s business has consistently grown and required highly-competent teams;

hence, the Company has restructured and supported its personnel to realize their career advancement by

promoting many to management, hiring new employees, and developing personnel’s potential simultaneously,

especially in the area of business knowledge and understanding, to include consistent monitoring of each of the

operations to ensure the right personnel management for the right circumstances of the Company. Such

personnel management is consisted of five (5) areas:

1. Recruitments

Appropriate tools as the following are leveraged in order to recruit capable and quality personnel to join the

organization:

� Competency & Experience-Based Interview to select the right personnel for the right needs of the

business

� Dominant, Influential, Steady, and Conscientious Assessment (DISC) to ensure that the personnel’s

attitude matches the job and culture of the organization



In accordance to Good Corporate Principles and Business Code of Conduct of the Company, the policy has

been clearly established in writing, incorporated just and transparent recruitment and hiring processes. The

Company’s recruitment proceeds in form of group interviews to evaluate suitability in knowledge, competency,

skills, and work experience appropriate for the positions without discriminating genders, nationalities, and

religions, and remunerations are competitively comparable to those of the similar business sector.

In 2015 the Company’s total employees were 138, of which 45 were new hires.

2. Remunerations and Beneficial Rights

The Company has established remunerations based on positions, responsibilities, and competency of employees

and provides rights and benefits to its employees based on their necessities and needs. Market comparable

analysis of remunerations and benefits of businesses in the same sector has been constantly completed to ensure

proper remunerations, rights, and benefits for the employees.

The Company considers remunerations raise based on the organization’s achievement and the average wage of

the industry with similar type of business and justly integrates the raise as part of annual performance

evaluation, in which direct reports review performance of their staffs against the target, as well as behavior,

dedication, and conduct, and communicate the results and remunerations clearly in writing.

� Executive 6

� Management/

Supervisor

� Staff 72

60

ถกถจ 66 72 ถกถจ 23 22

Total Employee 138 Classified by employee level

New Employee 45



Furthermore, the Company promotes forming of employees’ group to monitor hiring conditions, rights, and

benefits for employees to ensure that the Company appropriately meets employee satisfaction and needs. For

instance, a Welfare Committee, who oversees, follows-up, and provides recommendations in terms of welfare

management of the Company to enable effective operations aligned with the needs of employees, is presently

consisted of seven (7) elected employees whose terms do not exceed two (2) years. Ninety (90) percent of

employees exercised their right to elect the Welfare Committee.

The Company focuses on supporting its employees’ well-being. In addition to the annual checkup, company

also providing of Influenza vaccine to the employees.

3. Development of Potential for Career Advancement

The Company has consistently held human resources development as it priority, especially the enhancement of

capability limit and potential of its employees in Core Competency, Management Principles, and Functional

Competency, leading to their opportunities for career advancement during the Company’s experience of

consistent business growth.

In 2015, Moong Pattana emphasized on improving knowledge and competent based on the organization’s set

standards concurrently with revising Individual Developmental Plan to ensure business-circumstances

suitability and promoting growth of the employees’ Career Path of related fields to their capability by providing

just, transparent, and clear promotions, in which Senior Management and relevant direct reports altogether

evaluated, selected, and provided reasons behind their considerations.

Moreover, company also arrange the In-house Training to develop employee who work in Demand & Supply

Planning Group, which is important for the business in FMCG and developed knowledge about the analysis of

the efficiency of sales activity for sales man and other concern employee to enhance their working capability.



For Senior Management, the Company realizes the imperative of developing employees to succeed key

positions with the organization in the future, and the evaluation of retiring employees within the next five (5)

years found Senior Executives at 66 percent. Therefore, the Company has developed Succession Plan for Senior

Vice President position and above. The plan comprises of development in various critical areas such as

leadership, vision, and management conduct in accordance to the Code of Conduct to build the confidence of

gaining future fully-competent and knowledgeable Senior Executives in both operations and management.

As for Division Managers and mid-level and entry-level managers, the propelling force of the Company, Job

Rotation has been promoted for diverse learning opportunities along with skills enhancement in management

and coaching and comprehension in Business Model, all of which are regarded as preparations for future steps

to join Senior Management. Job Rotation has been implemented in various divisions such as Sales, Finance,

and Accounting, etc.

For operations staffs, the majority of the Company’s workforce, the Company also focuses on promoting their

intellectual curiosity, both in their field of responsibilities and fundamental knowledge about distributions

business, including their consciousness to public interests and the value of sustainable success in the long term.

The Company’s policy promoted and embedded the mindset of lowering cost as part of the Cost Saving

Initiative (CSI), which influenced all employees to cut cost by eliminating waste and to be engaged in preserving

resources to ensure the highest effectiveness of the Company.

Additionally, the Company’s personnel had also undergone the development of potential, knowledge, and

capability through various approaches; such as, expert sharing, executive coaching, knowledge sharing, on-the-

job training, and sites visit, etc. Each level of employees had completed the following hours of training:



4. Employee Relations

Diversity and team work among personnel are imperative; thus, the Core Values and organizational culture

have been promoted to influence employees on mutual respect of their differences which, as the result, leads to

their cohesiveness. Such bond is also believed to be the critical factor of employees’ workplace happiness,

driving their ability to handle their assignments as consistently trained and developed, leading to efficient results

and the success of organizational operations.

The following activities were held in 2014 to promote employee relations:

• New-Year Food Offerings held to celebrate New Year in which

executives and employees altogether offered foods to monks. The

activity also allowed the Chief Executive Officer to meet

employees at all levels and provided blessing, data, information,

and movement both internal and external to the organization.

• New-Year Party held for employees to relax, enjoy the moment,

and reminisce the past year successes together.

• Water-Sprinkling held on Song Kran (Thailand’s New year), in

which employees sprinkled water onto a Buddha image and

over hands of revered elders to receive wishes for blessing as part of Thai culture.

Furthermore, in this year company give

the opportunity to all employee to vote

for changing their bank account to new

bank. This is present that company

focus on employee opinions before

decision to implement any policy which is concern with employee, who are considered as important

stakeholder of company.



5. Internal Communication

The Company realizes the importance of communicating with its employees the information and movement of

the organization in terms of business, operations, Creation of Shared Value (CSV) and various internal activities

through different communicating channels to ensure adequate coverage of updates for the employees; for

instance, employees’ meeting, electronic newsletters, publication boards, posters, morning screens. This is

include the Initiative of "Stay Connected" campaign by allowing employees to bring smart phones to register

and install a system to be able to communicate with the company e-mail system apart from sending text

messages via SMS or S line. or SMS or LINE messages through mobile phones, etc. which can be done earlier.

In order to ensure that employees receive ongoing news of adequate and thorough.

Support and Creation of Shared Value The Company has developed awareness of Creation of Shared Value and social responsibilities to employees

started since their orientation, which would cover the Vision and Sustainability Development of the

organization. Afterward, the employees would continuously engage in several socially responsible activities

and multiple programs that contribute to the community. The Board of Directors has appointed a

Sub-Committee to implement the policy and direction and throughout the year hold activities which created

shared value to the community

Donation and Support as a Provider

Company and employees had always donated and / or provided

support through charities directly to the receiving parties. One of the

most important event in this year is the donation to the "Emergency

Home, Association for the Promotion of the Status of Women", under

the royal patronage of HRH PrincessSoamsawali. This is a home for

women and children who have victim from such as not ready pregnant,

HIV, abandonment, physical or mental abuse, and so on. M

Although the Company is the distributor of mother care and baby accessories, the Company has continued to

support breastfeeding and breast-milk promoted programs, through many marketing activities by selecting

Khun Ple Jariyavadee Spencer was chosen as the model mom of inspiration in order to pass on encouragement

to mothers and to support the breast feeding campaign through Pigeon Support Breastfeeding program.



A picture from the “Pigeon Support Breastfeeding” communication campaign with an inspirational

mother named Ple Jariyavadee Spencer.

The company hold activities that promote breastfeeding by having marketing activities in hospitals. Activities

include the support of building breastfeeding rooms in different hospitals, giving information to pregnant

mothers and special activities for members of the Pigeon Little Moments Club which now has 47,000 members

in the group. The Pigeon Little Moment Club gives opportunities to receive counsel on raising children and

personal care from expert doctors. Members can join activities arranged by the club throughout the year.

Provide support to build breastfeeding rooms in more than 25 hospitals nationwide



Seminar Activity “Being a Mother professional of pumping” by cooperation between

Pigeon and expert doctor at Khon Khaen Hospital

Besides of this, Pigeon has providing a special communication channel for consumer to approach us via

www.pigeonlittlemomentsclub.com and www.facebookcom/PigeonLittleMomentsClub where our employees

also altogether worked with experts to advise and answer any questions about the products or breastfeeding

approaches through Live Chat on the website for prompt, professional response to consumer needs.

Communication with customers through various medias was critical. The Company ensured accurate and non-

conduct controversial messages to customers and, in return, received their recommendations; such as customer

surveys, analysis of customers’ compliments, complaints, and requests through Call Center and multiple social

medias, and marketing survey, etc. The Company kept customers’ information confidential and do not

wrongfully them for self or others’ benefits.

Skills Development through Foundation of Education

With Human Resources Development as one of the priorities, in addition to personnel development, the

Company also provides support starting from foundation of education, opportunity to enhance skills for career

and life benefits, and development of leadership for the future. The Executives believe that the Company, as

the citizen of the organization, is responsible to provide opportunity for education and development for

personnel of the Company, business alliances, and the community by developing quality and ethical leaders for

the organization and community who will eventually lead to the nation’s strength.

The company began building foundation for Human Resources Development by supporting both schools and

school-programs development with institutions of education in order to provide students stable bases and career

opportunities. The Company had signed the Memorandum of Understanding (MOU) with multiple institutions



of education such as Dhonburi Rajabhat University, Southeast Bangkok College and several Institutions of

Vocational Education, etc., striving to develop training programs and performance evaluations, in which the

students gained practical training and experience for real-life uses as well as the best possible work processes

and the chance to become full-time employees at the Company. Established in 2012, 40 students have joined

the program, and the Company will continue to support the program by signing MOU with incremental

institutions of education in the future.

The Company was pleased to support the community and believed that being a company with good corporate

governance and care for community would help develop sustainability to all stakeholders and the nation’s

communities.

Operations in Occupational Health and Safety and Operational Safety and Security

Quality in occupational health and safety and operational safety is imperative, and the Company intends for all

employees to remain healthy and safe in operations and to be environmental friendly and responsible for nearby

communities as part of the Company’s mission. The focus has been systematically developed and described in

the Code of Conduct, Occupational Health and Safety, as the following :

1. The Company supports employees to work safely, and work safety is the highest priority of all employees.

2. The Company holds all employees as valuable resources; hence, safety, occupational health and safety,

and workplace safety are the Company’s key policies.

3. The Company supports the development and improvement of workplace environment and safe operations

to ensure workplace safety by providing sufficient tools, equipment, and safety of operational conditions,

influencing employees to realize potential dangers in workplace, suggesting preventions.

“I have worked with Moong Pattana since 2014, starting as an

apprentice in the Cooperative Education Program and got the

opportunity to work as permanent employee, in the position of

Accountant – AR. I was delighted and proud to join with Moong

Pattana. I would like to thanks the companies for giving me a chance

to work here".

From the apprentice to permanent

employee

Ms.Chayanit Wongthatip



4. The Company would always maintain and continuously raise level of workplace environment, work areas,

and cleanliness for safety and health and safety which relates to overall work quality and good health of

employees.

5. The Company supports and promotes safety activities which propel self-consciousness of employees such

as training, influencing publications, and safety competitions, etc.

6. Employees must strictly comply with requirements in safety, occupational health and safety, and

workplace environment; violations or ignorance may lead to disciplinary actions in accordance to the

Company’s rules.

7. All employees must strictly perform 5S (Sort, Set, Shine, Standardize, Sustain) in workplace to prevent

incidents and work-related sickness.

8. The Company consistently supports the Completely Check Completely Find Out Program to achieve the

goal of reducing internal incidents and those external within responsibilities scope of the assignment to

zero (0).

9. The Company periodically reviews and evaluates safety operations for consistent improvement planning.

10. The Company has established the policy in which all with authority must lead by example and are

responsible in terms of safety, occupational health and safety, and workplace environment of all their team

members to be in compliance to the Company’s established rules.

11. The Company has established the policy in which all employees are responsible for operational safety for

oneself and co-workers by complying with the Company’s rules of safety, occupational health and safety,

and workplace environment.

12. All employees play a role in incidents prevention and environment preservation; the Company welcomes

recommendations from employees and would consider and appropriately improve to ensure the highest

safety possible to employees.

Occupational Health and Safety

Management of occupational health and safety and safety and security of the Company includes strictly

complying with relevant rules and requirements, providing safe workplace environment, and promoting well

being, in which the Company encourages all employees to consistently engage in developing quality

occupational health and safety and safety and security and ensures their awareness of own safety and nearby

communities by having the following operating policies:

1. Monitoring progress and strictly complying with regulations on safety, occupational health and safety,

and environment by adhering to the above statement.



2. Developing and improving management system on safety, occupational health and safety, and

environment to meet international standards.

3. Managing and implementing safety, occupational health and safety, and healthy environment in

workplace for zero work-related incident, injury, and sickness and influencing the mindset, knowledge,

and comprehension in safety, occupational health and safety, and environment to all employees and

contractors.

4. Consistently developing and improving operations in safety, occupational health and safety, and

environment by establishing clear targets and evaluating systematically.

Operational Safety

In order to ensure safety, occupational health and safety, and environment on operations move into the same

direction, the Company has established “Safety, Occupational Health and Safety, and Workplace Environment”

Policy” for compliances from executives and employees. The Company has appointed a Safety, Occupational

Health and Safety, and Workplace Environment Committee consisted of executive-level members to establish

approaches and plans, to evaluate the operations, and to develop and consistently improve the operations on

safety, occupational health and safety, and workplace environment to ensure coverage of operations at all levels.

Operating Results

Occupational Health and Safety

In 2015, the Company and Sikarin Hospital held an annual checkup programs

for employees, in which each program was appropriately based on employees’

age, to prevent serious sickness; for example, checkup for Cervical Cancer and

Benign prostatic hyperplasia for female and male employees with 35 years of

age or older, etc., to provide supplemental checkup programs with discounts

and related information and activities, such as publicizing news and

knowledge to employees, by focusing on information on seasonal-sicknesses

prevention and office-related sickness; for instance, sickness from using office equipments, diabetes, and

hypertension, etc.

Meanwhile, the Company worked with Department of Labor on hosting White Project by

campaigning to promote non-drugs workplace, holding drugs testing, especially for frontline

employees, and publicizing and communicating to employees negative consequences from using

drugs. The company also gets the certified form Department of Labor in “The Standard on

Prevention and Solution to Drug Problems in an Establishment”



Operational Safety

The company has consistently implemented preventions for safety, occupational health and safety, and

workplace environment, in which the Safety, Occupational Health and Safety, and Workplace Environment

Committee would follow-up on implementing progress by holding progress-report meeting monthly to provide

safety and prevent risks of potential injuries and incidents for employees and operations-related personnel,

always enhancing employees’ skills, knowledge, and competency on the uses of safety and incidents-preventing

equipments, and holding annual emergency drills in compliance to rules and regulations and local necessities,

such as:

� Fire and evacuation drill – once per year

� Basic fire-extinguishing training

� Safe-driving training

� Evaluation of at-risk spots in workplace

Year 2015, the company had provided our employee who works in the position of Driver at total 11 persons to

join the project of safety driving under campaign “HINO SMART DRIVER” which take 3 days 2 nights.

Number of Accident

� Accident without Absence 0

� Accident with Absence 1

� Deadly Accident 0

� Total 1

Updated as of December 31st , 2015



Respect to Human Rights

The Company was aware of the value of human resources and intended for employees to take pride in

organization through creation of engaging work environment and equal career opportunities. Employees would

gain tremendous and consistent developmental support in order to achieve valuable and outstanding business.

Such principle has been clearly established in the Business Conduct, specifically employee treatment, which

details: treating each of employees with respect in his/her honor, pride, and human rights; that all employees

would not commit any violating or threatening acts, whether verbal or in-action, to others on basis of

nationalities, genders, religions, ages, and physical and mental disabilities; making priority of equitable and fair

treatment to all employees of every level. Especially in terms of remunerations and promotions, the Company

would disregard genders and compare the following with the labor market: qualifications, experience,

educations, knowledge, competency, and skills. Human Resources is responsible for communicating to

employees their compliance duties to Code of Conduct and providing Code of Conduct (Employee Version)

book to all new employees as well as disclosing on the Company’s website.

Moreover, the Company has established guidelines for recruiting employees and business partners in strict

compliance to Labour Law including child hiring or work forcing; the Company also ensured operations

appropriately oriented to safety and security and health safety. In 2015, there was neither a report nor a

complaint in regard to violation of human rights.

Business Conduct, Employee Treatment, is entailed:

1. Providing remunerations just and appropriate to knowledge, competency, responsibility, and

performance

2. Maintaining workplace environment that is safe for life and asset of employees

3. Appointing and transferring, to include rewarding and disciplining employees, must be proceeded with

fairness and on basis of knowledge, competency, and suitability of employees

4. Realizing importance of developing knowledge, competency, and skills of employees by providing

consistent and equal opportunity suitable to positions and levels

5. Strictly complying with employees-related laws and regulations

6. Equitably listening and taking opinions and recommendations on basis of employees’ professional

knowledge from employees at all levels, including work-related complaints which would receive serious

considerations and actions to ensure highest benefits to all parties and cohesive working relationship

7. Maintaining and promoting teamwork and sharing mindset among teammates, supporting, and

supportively coordinating with assignments and the Company



8. Respecting of rights of employees within the same organization, not harmfully criticizing, and not taking

credits of others’ work

Political Engagement with Responsibilities

Responsibly engaging in politics, the Business Conduct, specifically political rights, includes encouraging

employees to use their personal right as a citizen rightfully to the constitution and laws. Employees are also

prohibited from using assets or resources of the Company, whether directly or indirectly, for benefits of any

political parties or groups.

Communicating and Providing Information

The Company focuses reporting data and information of the organization to all stakeholders, to include opening

to recommendations and suggestions from various groups for improvement of operations. In addition to internal

communication with employees, direct communications with shareholders, analysts, and investors through

websites, printed media, and various activities, the Company also focuses on communicating with consumers

to ensure understanding and seeking feedback for improving response to the needs of customers and consumers

in quality and satisfaction.

Creation of Memorable Customer Experience

The Company believes that memorable customer experience on products and services of the Company is the

critical foundation for the Company to sustainably develop and grow with modern and highly-efficient

technology. The Company validates every step of products quality to ensure that products are in high quality

and safe by validating productions, logistics, inventories, sales, and delivery to customers. The Company also

strictly selects business partners and consistently reviews for quality by ensuring high standard of processes

and equipment as well as accurate controls and validating systems along with increasing employees’ knowledge

in order for customers to receive the highest benefits.

In 2015, the Company focuses on Excellence Operations as one of the DNA of the Company by understanding

and educating partner which is shop and consumer as follow:

The Company is determined to improve and delivery quality, high standard products and services that match

customers’ needs; hence, the Company enhances its employees’ potential, especially salespeople who possess



professional expertise and experience in their field, to ensure their readiness in skills, competency, and

determination to delivery excellent services to customers. The Company also consistently validates their

products knowledge and sales-relevant skills both in theory and actual operations every quarter.

Trade Partnership Program drive by the cooperation among Sales, Marketing, and Customer Relation team to

support business partner by providing knowledge and suggestions on managing modern shops such as shelving

products adhering to planogram, Bringing innovative new products according to the need of consumers to

partners shop, and also bringing innovation of new sales promotion model to return benefit to stores and

consumer, Introducing in-dept product knowledge to partner shop altogether with the implementation of the

campaign on sales volume measurement from partner shop to consumer. This is a result for partner shop who

participated the program could increase sales volume and create the sustaining relationship with company.

The Company is obligated to deliver the best possible products and services to customers with socially-

conscious responsibility in quality, safety, and communication from organization to citizens.

The Company has been focusing on the development and distribution of various quality and affordable products

in order to meet differentiated needs and lifestyles of the target groups.

The Company would set a policy of marketing target to include clear marketing plan which complies with the

overall strategy of the organization. Marketing implementation is consisted of market researching, advertising,

sales promoting, and customer relationship managing, etc., along with pricing that must comply with the policy

and annual marketing plan.

In the previous year, regarding implementation of marketing and distributing, the Company hosted several

activities to communicate with target customer of each product line; for instance, “Thailand Breast Feeding

Day by Pigeon” which is an important step for Pigeon to serve the community through campaigning,

encouraging and supporting breastfeeding by gathering of breastfeeding mother throughout the country to show

their power and make statistics in regards to breastfeeding at the same time. There were 410 breastfeeding



mothers who participated in the activity. This awesome number was also recorded in Thailand’s Book of

Records.

“Thailand Breast Feeding Day by Pigeon” event at Chalerm Prabaramee Building Soi Soonvijai

Giving information to new pregnant mothers to support and promote breastfeeding by cooperate with expert

doctor to arrange the seminar to develop the understanding and techniques about breastfeeding. This event

arrange in the hospital in Bangkok and other province.

Or the communication under brand V-care by Khun Nicha- Ms. Nutthanicha Dungwattanawanich, a star and

Brand Ambassador of V-care within the new campaign called “V-care… the Origin of Beautiful Skin”. The

Company organized makeup workshop to giving the right knowledge and technic in makeup for healthy skin

by the expert and well known face skincare.



Development of Sustainable Relationship with Alliances

While the Company’s business was growing, the Company consistently enhanced and expanded its network of

strategic partners, producers, service providers, private / governmental offices, and the community, etc. Thus,

it was imperative that the Company retained these relationships by considering long-term and sustainable

benefits of all parties.

Joining forces with the alliances have been proven a great success; such as, producers who, together, developed

new products for consumers, contractors who specialized in operations, and advising companies, etc. Therefore,

alliances selection became a critical factor to Sustainability Development as the Company comprehended the

essential of having alliances of reputation, Business Conduct, professionalism, and consideration of employees’

well-being. Operations management of the alliances also aligned and was certified to the same standard as the

Company. Conclusively, the Company focused on developing and growing with its alliances by learning about

advantages and drawbacks of each other to create even better results going forward into the future.

In M 015, the company has arranged the supplier meeting for the

first time, in June M M , 2015. There are N O main supplier, 3N

participants joined this meeting. The company has made com-

munication about a change of important working process, the

raise standard of product quality inspection, and the request for

the cooperation to enhance the ability of the supplier to work for

the product quality improvement for customer and consumer

satisfaction. In this meeting the company also clearify the

understanding of the supplier code of conducts.

Furthermore, in this year company alliances are continue to

expand its business growth by expand the investment, get many

rewards and certified standard for example ; Yoshino

Moongpattana (Thailand) Company Limited or YMP invested in

new machines that were imported from Japan at an approximate

value of 144 million Yen to support the customer’s demand on production, Pigeon Industries (Thailand)

Company Limited or PIT was awarded as the best manufacturer in the country for 14 consecutive years by the

Labor Ministry. In 2015, PIT received the AEO certificate (Authorized Export Operator) which was certified

by the Department of Customs as a valid exporter with credibility with systems that maintain safety until the

consumer receives their goods, and Thai Pigeon Company Limited or TP has received the certifications of ISO



50001 Energy Management System in 2015 additional from others certified standard which obtained previously

such as the certified by the Thai Industrial Standard Institute, and the Japan Industrial Standard (JIS)

Reduction of Environmental Impacts

Although the Company operates business as distributor of consumer

products, with its dedication to develop and present products that are

great and environmental friendly, over the past year the Company and

its alliances had held multiple environmental programs:

• Carton Rotation Program with the objective of reducing heat and

trash from papers usage. Presently, the Company has

implemented the program with business partners by reusing

cartons for nipples and baby bottles products.

• Cost Saving Initiative with the objective for employees to seek

and search cost reduction approaches, especially by realizing

negative impacts from operational processes. In 2015, the Company achieved cost reduction in several

areas: assembly, logistics, power usage, and documents usage, etc. Great amount of unnecessary cost had

been reduced; such success occurred as the result of the partnership among employees and between

employees and business partners.

Furthermore, the Company and its business partners consistently seek approaches to reduce environmental

impacts; for example, logistics management based on routes and delivery to distribution centers instead of

branches throughout the country, etc. The Company also established Business Conduct with partners to describe

its expectations for partners in regard to honest business operations and implementation principles on labor,

health and safety of employees, and environment; the company has supported, promoted, and encouraged

partners to ethically operate business as well as followed-up and evaluated the implementation of Supplier

Conduct by partners to ensure the objectives were being achieved.



Good Corporate Governance

The Board of Directors and the Executives of Moong Pattana International Public Co. Ltd. realizes the essence

of good corporate governance which is a critical factor influencing the company to sustainably achieve its

business target in the long-term.

Therefore, the Board approved the Company’s Good Corporate Governance and has communicated to

employees at all levels as the principles for business operations. Annually, the Board reviews and makes

necessary revisions to ensure suitability of the Good Corporate Governance to potential changes driven by

business operations, marketing environment, environment, and domestically and internally-related laws.

The Company also discloses the Corporate Governance and Code of Conduct on the Company’s website to

ensure understanding and as the operating standards and principles of employees at all levels and information

for shareholders, stakeholders, investors, and other interested parties. Moreover, in order to establish and

disclose supporting guidelines to influence compliance with Code of Conduct, the Company would review and

communicate the guidelines and Principles of Good Corporate Governance and Code of Conduct to employees

and mandate signing of acknowledgement. New hires would complete the signing of their acknowledgement

of the principles during the orientation prior to start working. Last, the Company would follow-up on

compliances with the mentioned Conducts through internal audits processes.

In 2015, the Company complied with the Good Corporate Governance Principles as classified into five (5)

major categories: Rights of Shareholders, Equitable Treatment of Shareholders, Role of Stakeholders,

Disclosure and Transparency, and Responsibilities of the Board. Details of activities related to Good Corporate

Governance of the Company are disclosed in the 2015 Annual Report, Corporate Governance section.

Anti-Corruption Policy

In addition to operating the business to ensure excellent operating results, quality products and services at

international standard, society-conscious awareness to drive growth and Sustainability Development, and

keeping up with changes in economics and society, the Board of Directors also adhered to and realized the

essence of transparency of the organization and had established Anti-Corruption Policy in order to allow

directors, executives, and all employees to take part, as citizens, in serving the community and the country. The

Company had already announced the policy and the intention to join Collective Action Coalition of Thailand’s

private sector and to work with the Private Sector Collective Action Council (CAC) against corruption, with

the next step of attaining an official agreement.



Results of 2015 Sustainability Development

Financial Operating Results

2015 2014 2013

Financial Statement (Million Baht) Total revenues 682.38 714.10 732.77

Gross profit 353.50 352.50 309.04

Profit before interest, corporate income tax,

and depreciation 89.30 74.61 75.35

Net profit 74.74 57.74 59.05

Remunerations for employees: salaries, wages, 131.82 139.19 107.22

expenses of development, and other benefits

Dividends 36.00 24.00 24.00

Financial cost 2.54 2.32 1.59

Corporate income tax 0.25 0.97 3.70

Profitability Ratio

Return on assets (ROA) 10.07 8.47 8.15

Return on equity (ROE) 14.73 12.95 14.33

Per Value (1 Baht)

Earnings per share 0.56 0.48 0.49

In 2015, the Company has displayed excellent operating results especially Company’s higher net profit in

comparison to prior year from Baht 57.74 million to Baht 74.74 million or increased earnings per share from

Baht 0.48 per share to Baht 0.56 per share in 2014 and 2015 respectively. However, the Company has continued

to consistency focus on employees’ development for sustainable growth as presented on expenses related to

employees’ benefits to including other expenses and holding of training courses to constantly enhance

employees’ potential performance in the organization.



2016 Sustainability Development Plans

In 2016, the Company continues to implement more of Sustainability Development by focusing on the

cooperation between the personnel within the organization and the stakeholders in order to create shared value

and responsibilities to the society; the Company’s Sustainability Development Plans are as the following:

Documents

SD Report 2015 English Revision