Making the Business Continuity Plan (BCP) and Improvement of Enterprise Resource Planning System (ERP) in part of maintenance and asset management

Making the Business Continuity Plan (BCP)

The company has succeeded in Business Continuity Plan (BCP) for the organization, especially in part of the information technologies, to accommodate the event of a crisis. The scheme is due to the improvement of the Company's internal control procedures according to the Committee of Sponsoring Organization of the Treadway Commission (COSO) as the comment of KPMG Phoomchai Business Advisory Limited.

Improvement of Enterprise Resource Planning System (ERP) in part of maintenance and asset management

The Company has cooperated with Metropolitan Expressway Co., Ltd. (“MEX”) for improvement of Enterprise Resource Planning System (ERP) in part of Don Muang Tollway maintenance and asset management due to the system and equipment on Tollway is very important for service according to the concession. The objective of this improvement is to develop data collection, maintenance plan and analyze types of maintenance for efficiently manage budget and manpower to control the Company’s expenses. In the second quarter of 2015, the Company implemented the as plan.

Improvement of Internal Control Process

The Company went through a high level review of internal control process provided by KPMG Phoomchai Business Advisory Ltd. (KPMG) in order to certain that internal control, compliance procedures, corporate governance policies and accounting systems can meet the demands of the exchange and applicable regulation of Committee of Sponsoring Organization of the Treadway Commission (COSO). KPMG advocated the robust preparation, ongoing government and transparency for readiness of a listing.

The official launched the using of Smart Purse card and Study on the improvement of traffic management and surveillance system

The official launched the using of Smart Purse card

For satisfaction and convenience to Tollway users, the Company initiated a business corporation with Thai Smart Card Company Limited, as “Smart Purse”, service provider and a subsidiary of CP All Public Company Limited who operated “7-eleven” convenience store, to provide trial service in toll payment by using Smart Purse card in order to be an alternative toll payment since 2010 and then got an approval from the Department of Highway, as Tollway concession holder, for commercial service in 2012. Then, The company has official launched the using of Smart Purse card for toll payment in January 2013. Moreover, the Company has managed for public relation and marketing campaign throughout the year to stimulating 7-cards and Smart Purse card usage for toll payment.

Study on the improvement of traffic management and surveillance system

The existing traffic management and surveillance systems have been operated 24 hours for 18 years. At present, there is new technology and system to efficient working process for operating staffs, enhance efficiency and accuracy in order to provide better traffic information to Tollway users. The current Communication & Control Center and IT Data Center, which is located at the ground floor, may face a risk of flooding situation. Therefore, the Company considers to upgrade the existing traffic management and surveillance systems together with relocate the Communication & Control Center and IT Data Center to the second floor of Head Office, which will secure the systems operating during the occurrence of flood as Business Continuity Plan. As a result, the Company had completed the system improvement plan by jointly studying with Metropolitan Expressway Co., Ltd. (“MEX”) of Japan, who is the experienced operator of the elevated expressway, at grade expressway, and tunnel totally around 300 kilometers in Tokyo, Japan. The studying process leads to knowledge exchange between entities abs bring the Company towards international standard.

The change in accounting standards and Implement of Enterprise Resource Planning System

The change in accounting standards

The Company completed its early adoption of the new accounting standard in accordance with the revised Thai Financial Reporting Standards (TFRS) inorder to comply with the International Financial Reporting Standards (IFRS) since 1 January 2011 and continuing until present in order to achieve transparency in disclosing the financial information and preparation for listing in the Stock Exchange of Thailand.

Implementation of Enterprise Resource Planning System

Enterprise Resource Planning (ERP) System was employed within the Company to manage and internally control its overall database and working processes via information technology system. This project implementation was aiming to reduce the processes, duplication and data error in order to straighten the internal control system and enhance efficiency. ERP system of SAP Business One (SAP B1) was selected whereby Kernel Consulting Company Limited was the implementer while KPMG Phoomchai Nusiness Advisory Ltd. Was the advisory. With the success of implementation ERP system of SAP B1 has commenced and able to “Go Live” on 1 January 2011.

Issuance bond in total amount of Baht 7,000 million and the first year of dividend payment

In December 2010, the Company successfully its debenture in total amount of Baht 7,000 million, comprising 7 series with 3-10 years tenor at average coupon of 4.84%, in order to make principal prepayment to all financial creditor under the credit facilities agreement. According to the bong issuance, the Company is able to lock up its financial cost or fixed interest rate in the long term. Besides, all loan securities had been released and wipeout all control over cash on hand under cash flow waterfall mechanism by the Security Agent. This will also help the Company for its business expansion project. Moreover, This is the first year of dividend payment.

Signing Memorandum of Agreement Amending the Concession Agreement No.3/2007

During 1997 – 2007, the Company had negotiated with various parties in order to resolve its financial crisis due to the government in breach of the terms and conditions under the concession agreement. As a result, the Company and Department of Highway encountered with the severe financial impacts together with continuous losses in operations since the commencing its business, which brought the highest retained losses of the Company in 2006 up to Baht 5,601 million. In this connection, the Company had entered into debt restructuring process in many occasions with financial creditors as well as construction contractors during 1998 to 2008. Besides, the Company had continuously negotiated with the government entities during the past periods in order to reduce such impacts without entering into any court disputes. Finally, the Company could achieve the settlement and then entered into the Memorandum of Agreement Amending the Concession Agreement No. 3/2007 on 12 September 2007. The major improvements included that the toll rates would be adjusted in accordance with the agreed rates without prior consent from any party and the concession period was extended to 11 September 2034. As the result, the Company’s financial position gradually improved, which was considered as the turnaround point for the Company’s financial position and led to various financial restructuring and improving, i.e. new strategic partner, refinancing of creditor loans, corporate bond issuance, and the preparation for listing the Company’s common shares on the Stock Exchange of Thailand.

Construction of Northern Extension Project and Signing Memorandum of Agreement Amending the Concession Agreement No.2/1996

The government required the Company to extend its Tollway to km.26+700 to overcome the notorious road bottleneck in front of the Don Mueang Airport, which the government believed that the solution for the problem was to extend the Tollway Project. In this regards, the government provided soft loan financing in the amount of Baht 8,500 million to refinance the Company’s existing debts, improve the toll rate, extend the concession period from 2014 to 2021, and the Ministry of Finance to subscribe the Company’s newly issued share in amount of Baht 3,000 million. Therefore, the Company agreed to undertake such extension of the Tollway and entered into the Memorandum of Agreement Amending the Concession Agreement No.2/1996 on 29 November 1996

Signing Memorandum of Agreement Amending the Concession Agreement No.1/1995

The Company has signed Memorandum of Agreement No.1/1995 Amending the Concession Highway Agreement on 27 April 1995 and increased the registered capital to Baht 3,622 million for sale to existing shareholders for use in construction project.

Original Tollway Project officially commenced to the public and became a Public Company Limited

Original Tollway Project has been officially commenced to the public on 14 December 1994. Then, The company has registered for its name change and became a Public Company Limited, namely Don Muang Tollway Public Company Limited and increased the registered capital to Baht 3,500 million for sale to existing shareholders for use in construction project.

Signing the Tollway Concession Agreement

The Company entered into the Tollway Concession Agreement with the Department of Highway on 12 August 1989 to construct the elevated toll road from km. 5+700 at Din Deang to km. 21+100 at Don Muang in total approximate length of 15.4 kilometers, called “Original Tollway”.

Established with the registered capital of Baht 1,304 million.

Registering the formation of a limited company by Dyckerhoff & Widmann Company Limited and Sri Nakhon Kanyotha Company Limited under the name of Don Muang Tollway Company Limited with the registered capital of Baht 1,304 million on 18 April 1988.