CONTENTS Message from the Board of Directors ................................................................................................................. 005 Board of Directors ........................................................................................................................................................... 008 Vision & Mission ............................................................................................................................................................... 011 Corporate Social Responsibility Report / Sustainable Development Report ................................. 013 Report of the Audit Committee ............................................................................................................................... 023 Report of the Executive Board ................................................................................................................................ 025 Report of the Risk Management Committee ................................................................................................... 026 Report of the Corporate Governance Committee ......................................................................................... 027 Report of the Nominating and Compensation Committee ....................................................................... 029 Report of the Sustainable Development Committee ................................................................................... 030 Financial Highlights .......................................................................................................................................................... 031 Policy and Overview on Business Operation ................................................................................................... 033 Nature of Business .......................................................................................................................................................... 036 Business Structure ........................................................................................................................................................... 037 Revenue Structure ............................................................................................................................................................ 039 Changes during the year ............................................................................................................................................. 040 Industry and Competitive Analysis ....................................................................................................................... 044 Risk Factors ......................................................................................................................................................................... 046 Shareholders ........................................................................................................................................................................ 050 Dividend Policy ................................................................................................................................................................... 053 4IBSFIPMEJOHTPG4BNBSU$PSQPSBUJPO1DMJO4VCTJEJBSJFTBOE"èMJBUFE$PNQBOJFT............. 054 Management Structure ................................................................................................................................................... 060 Corporate Governance ................................................................................................................................................... 081 Internal Control, Risk Management and Anti-Corruption ........................................................................... 112 Connected Transactions ............................................................................................................................................... 118 Financial Ratios .................................................................................................................................................................. 126 Management Discussion and Analysis 2013 .................................................................................................... 128 Report of the Board of Directors’ Responsibility on the Company’s Financial Statements ............................................................................................................ 133 Independent Auditor’s Report .................................................................................................................................... 134 Financial Statements ....................................................................................................................................................... 136 Remuneration of the Auditors ................................................................................................................................... 231 Directors, Managements and Company Secretary of the Company and Major Subsidiaries ........................................................................................................... 232 General and Others Information ............................................................................................................................... 263 Samart Corporation Pcl. 002 I 2013 Annual Report Samart Corporation Pcl. 2013 Annual Report I 003 Samart Corporation Pcl. 004 I 2013 Annual Report Samart Corporation Pcl. 2013 Annual Report I 005 Samart Corporation Pcl. 006 I 2013 Annual Report Samart Corporation Pcl. 2013 Annual Report I 007 Samart Corporation Pcl. 008 I 2013 Annual Report Samart Corporation Pcl. 2013 Annual Report I 009 Samart Corporation Pcl. 010 I 2013 Annual Report Samart Corporation Pcl. 2013 Annual Report I 011 Samart Corporation Pcl. 012 I 2013 Annual Report Samart Corporation Pcl. Corporate Social Responsibility Report / Sustainable Development Report CSR activities of the Company in the past were mainly about the arrangement of projects on innovation promotion, charity events and donations. However, after the Company obtained information through CSR training courses from the SEC and SET, the Meeting of the Board of Directors No. 5/2013 on November 12, 2013 resolved to approve on FTUBCMJTINFOUPGUIF4VTUBJOBCMF$PNNJUUFF.BJONJTTJPOTPGUIJT$PNNJUUFFBSFUPDPODSFUFMZEFÇOFQPMJDZBOE guideline on social and environmental responsibility operations so that they can be used as guidelines on monitoring their progress and assessment of CSR operations to report to the Board of Directors. In the Board of Directors No. 6/2013 on December 18, 2013, the corporate social responsibility policies have been approved as follows: CSR Policy 1. To conduct business based on good governance principle as well as social and environmental responsibility by QSJNBSJMZUBLJOHJOUPDPOTJEFSBUJPOCFOFÇUTPGBMMTUBLFIPMEFST 2. To build up corporate culture that can encourage all employees to have conscious mind while performing duties BOEBMTPUPIBWFWPMVOUFFSTQJSJUXIJDIJTXJMMJOHUPEFWPUFFGGPSUTBOEQFSTPOBMUJNFGPSCFOFÇUTPGDPNNVOJUJFT BTBXIPMF 3. To promote and educate the employees at all levels on social and environmental awareness to serve as guidelines POTPDJBMBOEFOWJSPONFOUBMDPOTFSWBUJPOBOEEFWFMPQNFOUUISPVHIPVUUIFPSHBOJ[BUJPO 4. To encourage on creation of social and environmental projects or activities. CSR policies comprise 9 operating principles of conduct as follows: 1. Organization Governance Promote and make good governance principle become corporate culture, adhere to responsibilities for all stakeholders with transparency and auditability. The Board of Directors of the Company realized on the importance of the good Corporate Governance which will be the fundamental factor for improving standard of business operation to create more transparency, competitiveness BOETUSFOHUIFOUIFDPOÇEFODFPGBMMTIBSFIPMEFST JOWFTUPSTBOEPUIFSSFMBUFEQBSUJFT5IVTXSJUUFO$PSQPSBUF Governance Policy and Business Ethics, which complied with the 2012 Corporate Governance Principles of the Stock Exchange of Thailand (“SET”), have been provided for practices of directors, managements and employees of the Company. The Company has the Corporate Secretary Division which is the compliance unit to supervise and oversee the operations of the Company, the directors and the managements to ensure that they have been DPSSFDUMZDPNQMJFEXJUIUIFSFHVMBUJPOTPGUIF4&5 UIF0èDFPG4FDVSJUJFTBOE&YDIBOHF$PNNJTTJPO l4&$m BOE the Public Company Limited Act including other relevant laws. More details on Corporate Governance initiatives undertaken by the Company in 2013. Detail, are provided under “Corporate Governance”. During the past year, the Company has strongly observed the Corporate Governance Principles and from the evaluation results of the Corporate Governance operations of the listed companies for 2013, the Company has been evaluated as Excellence (5 stars) and was ranked in Top Quartile of the group of companies with a market capitalization of Baht 3,000-9,999 million from a total of 526 listed companies surveyed by the Thai Institute of Directors Association in cooperation with the SEC and SET. However, the Company still determines to keep on improving the Corporate Governance operations on continued basis. Moreover, the Company and its subsidiary, Samart Telcoms Pcl. received SET Awards on Top Corporate Governance Report Awards together with 10 other companies from overall 532 listed companies in the Stock Exchange of Thailand. 2013 Annual Report