7. Capital Structure

  7.1 The Security of the Company and its Subsidiaries

  The Company’s Security

(Unit : Baht)

  ----------------------------------- ---------------- ---------------- ----------------
                                      2012             2011             2010

  Registered share capital :          356,313,243.00   323,921,130.00   328,345,090.00

  Par value                           1.00             1.00             1.00

  Paid-up share capital :                                               

  paid-up share capital at the        356,313,209.00   323,921,130.00   323,921,130.00
  beginning of the period                                               

  paid-up share capital at the end of 356,313,209.00   323,921,130.00   323,921,130.00
  the period                                                            

  Premiums on share capital :                                           

  premiums on share capital at the    149,420,557.75   149,420,557.75   149,420,557.75
  beginning of the period                                               

  premiums on share capital at the    149,420,557.75   149,420,557.75   149,420,557.75
  end of the period                                                     
  ----------------------------------- ---------------- ---------------- ----------------

The Subsidiary’s Security

Unit : Million Baht

+----------+--------+--------+--------+--------+--------+---------+
| Detail   | 2012   |        | 2011   |        | 2010   |         |
+----------+--------+--------+--------+--------+--------+---------+
|          | Plearn | SE-ED  | Plearn | SE-ED  | Plearn | SE-ED   |
|          | Patt   | Book   | Patt   | Book   | Patt   | Book    |
|          |        | Center |        | Center |        | Center  |
|          | Co.,   | Co.,   | Co.,   | Co.,   | Co.,   | Co.,    |
|          | Ltd.   | Ltd.   | Ltd.   | Ltd.   | Ltd.   | Ltd.    |
+----------+--------+--------+--------+--------+--------+---------+
| Au       | 169.48 | 0.10   | 170    | 0.10   | 170    | 0.10    |
| thorized |        |        |        |        |        |         |
|          |        |        |        |        |        |         |
| Share    |        |        |        |        |        |         |
| capital  |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+
| Book     | 10     | 10     | 10     | 10     | 10     | 10      |
| value    |        |        |        |        |        |         |
|          |        |        |        |        |        |         |
| (Baht    |        |        |        |        |        |         |
| per      |        |        |        |        |        |         |
| share)   |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+
| Issued   | 169.48 | 0.10   | 170    | 0.10   | 170    | 0.10    |
| and      |        |        |        |        |        |         |
| paid-up  |        |        |        |        |        |         |
| share    |        |        |        |        |        |         |
| capital  |        |        |        |        |        |         |
+----------+--------+--------+--------+--------+--------+---------+

7.2 Major Shareholders

(a) The List of the top 10 shareholders, according to article 258,
Securities Exchange Commission Act (B.E. 2535), as of November 23, 2012
(latest share register closed date) are as follows :

+------+--------------------------------------+----------+-----------+
| No.  | Shareholders                         | Number   | % of      |
|      |                                      | of       |           |
|      |                                      | Shares   | Paid-up   |
|      |                                      |          | Capital   |
+======+======================================+==========+===========+
| 1    | GMM Grammy Public Company Limited    | 45       | 12.64     |
|      |                                      | ,045,920 |           |
+------+--------------------------------------+----------+-----------+
| 2    | Mr. Rit Thirakomen                   | 25       | 7.10      |
|      |                                      | ,309,660 |           |
+------+--------------------------------------+----------+-----------+
| 3    | Krungsri Dividend Stock LTF          | 19       | 5.60      |
|      |                                      | ,967,090 |           |
+------+--------------------------------------+----------+-----------+
| 4    | Best Fortune Property and Loan Fund  | 14       | 4.19      |
|      |                                      | ,941,520 |           |
+------+--------------------------------------+----------+-----------+
| 5    | Mr. Pongsak Sivapatrakumpol          | 11       | 3.35      |
|      |                                      | ,935,926 |           |
+------+--------------------------------------+----------+-----------+
| 6    | THAI NVDR CO., LTD                   | 11       | 3.34      |
|      |                                      | ,885,516 |           |
+------+--------------------------------------+----------+-----------+
| 7    | Mr. Thanong Chotisorayuth            | 10       | 3.04      |
|      |                                      | ,834,716 |           |
+------+--------------------------------------+----------+-----------+
| 8    | Ms. Nanjana Pooworawan               | 7        | 2.17      |
|      |                                      | ,733,836 |           |
+------+--------------------------------------+----------+-----------+
| 9    | Ms. Nawan Pooworawan                 | 7        | 2.10      |
|      |                                      | ,482,703 |           |
+------+--------------------------------------+----------+-----------+
| 10   | Krungsri Dividend Stock Found        | 6        | 1.95      |
|      | (KFSDIV)                             | ,940,260 |           |
+------+--------------------------------------+----------+-----------+
| T    |                                      | 162      | 45.49     |
| otal |                                      | ,077,147 |           |
+------+--------------------------------------+----------+-----------+

Remarks : - The paid–up capital, as of November 23, 2012, is equal to
THB 356,313,209 Baht.

-   Investors can view the current Shareholder’s information from the
    Company’s website before the date of the annual Shareholder’s
    meeting.

Company’s ordinary shareholders (SE-ED) held by Thai NVDR co., ltd. of
9,393,780 shares or 2.64% of the paid up capital as of November 23,
2012. The details are as follows.

  ------- --------------------------------------- -----------------------
  No.     Shareholders                            Number of Shares

  1       UOB KAY HIAN PRIVATE LIMITED            4,950,000

  2       CHASE NOMINEES LIMITED                  4,443,780

  Total                                           9,393,780
  ------- --------------------------------------- -----------------------

  Remarks :
  http://www.set.or.th/set/nvdr/nvdrholder.do?symbol=SE-ED&language=th&country=US

  Distribution of Shares

Distribution of shareholding as on November 23, 2012 (Book closing date
of the last registration).

  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------
  Item           Share                                                                   Total                  
                 Distribution                                                                                   

                 Individual                           Juristic                                                  
                                                      individual                                                

                 Number         Shares        %       Number       Shares        %       Number   Shares        %

  Thai           4,708          236,754,231   66.44   41           117,212,391   32.90   4,749    353,966,622   99.34
  shareholders                                                                                                  

  Foreign        7              178,387       0.05    6            2,168,200     0.61    13       2,346,587     0.66
  shareholders                                                                                                  

  Total          4,715          236,932,618   66.49   47           119,380,591   33.51   4,762    356,313,209   100.00
  -------------- -------------- ------------- ------- ------------ ------------- ------- -------- ------------- --------

At the last registration date, there were 4,749 Thai national
shareholders totaling 353,966,622 shares (99.34%) which consist of 41
juristic persons and 4,708 individual shareholders, and 13 foreign
shareholders, totaling 2,346,587 shares (0.66%), which consisted of 6
juristic persons and 7 individual shareholders.

(b) Names of main shareholders who practically have material influence
in prescribing the company’s management policy operation is GMM Grammy
Public Company Limited.

7.3 Dividend Payment Policy

  Dividend Payment Policy of the Company

The Company declared a policy to pay dividend no less than 50% of the
net profit after the deduction of the corporate income tax based on the
separate financial statements by proposing that the dividends be paid on
an annual basis the year following the Annual General Shareholders’
Meeting, except the interim dividends payment. The Board of Directors
has legal right to approve the dividends payment and reports to the
shareholders to acknowledge in the following Shareholders’ meeting.

Dividend Payment Policy of the Subsidiary (Plearn Patt Co., Ltd.)

The Company can pay dividend payment from the subsidiary when the
Company withholds the capital reserve of no less than 5% of the annual
total profit, deducted by the accumulated deficit (if any) until the
reserve capital is accounted for no less than 10% of the registered
capital. The Company may not pay dividends from other sources except for
the profit money. In case the Company has an accumulated deficit, the
Company may not pay dividends. The dividends will be divided by the
numbers of shares evenly. However, the committee may pay occasional
interim dividends if the profit amount is sufficient to appropriately do
so and the committee will report it in the coming meeting. The dividend
can be paid within one month from the shareholders’ meeting date on the
date of the committee’s approval.

In addition, according to the Bill of Private Schools B.E. 2550 Section
45, the annual profits from the operation of schools in the system can
be allocated by the committee as follows :

1)  Schools in the system which are supported by the government allocate
    no more than 3% of the profit to the system’s school support fund
    assigned by the committee.

2)  No less than 10% of the profit is allocated to the capital reserve.

3)  No more than 40% of the profit is allocated to the licensee.

4)  In case there are other funds, the profit may be located to such
    funds. In case of no other funds available, the remaining profits
    may be allocated to the capital reserve.

  The Company’s dividend payments in the last 3 years are as follows :

+-------------------------+----------+----------+----------+----------+
| Dividend payment from   | Dividend | Dividend | Net      | Dividend |
|                         | payment  |          | profit   | payout   |
| operations results      | date     | Per      |          | ratio    |
|                         |          | share    | (        |          |
|                         |          | (Baht)   | Thousand |          |
|                         |          |          | Baht)    |          |
|                         |          |          |          |          |
|                         |          |          | [        |          |
|                         |          |          | separate |          |
|                         |          |          | f        |          |
|                         |          |          | inancial |          |
|                         |          |          | sta      |          |
|                         |          |          | tements] |          |
+-------------------------+----------+----------+----------+----------+
| Year 2012 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 8        | 0.10     | 54,219   | 65.72    |
|                         | /06/2012 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 6        | 0.10     | 70,411   | 50.60    |
|                         | /09/2012 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 6        | 0.10     | 42,072   | 84.69    |
|                         | /12/2012 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 22       | 0.11112* | 38,450   | 102.97   |
|                         | /05/2013 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2012     |          | 0.41112  | 205,152  | 71.40    |
+-------------------------+----------+----------+----------+----------+
| Stock Dividend*         |          |          |          |          |
|                         |          |          |          |          |
| The 1/2013 Board of     |          |          |          |          |
| Directors Meeting       |          |          |          |          |
| agreed to propose the   |          |          |          |          |
| Annual General          |          |          |          |          |
| Shareholders Meeting to |          |          |          |          |
| approve the dividend    |          |          |          |          |
| payment for the year    |          |          |          |          |
| 2012. The dividend will |          |          |          |          |
| be paid in the form of  |          |          |          |          |
| the Company’s common    |          |          |          |          |
| stock of no more than   |          |          |          |          |
| 35,631,320 shares, at   |          |          |          |          |
| THB 1 per share. This   |          |          |          |          |
| will be given to the    |          |          |          |          |
| Company’s shareholders  |          |          |          |          |
| at the rate of 10       |          |          |          |          |
| original shares per 1   |          |          |          |          |
| stock dividend or THB   |          |          |          |          |
| 0.10 per share (along   |          |          |          |          |
| with the cash dividend  |          |          |          |          |
| at the rate of THB      |          |          |          |          |
| 0.41112 per share as    |          |          |          |          |
| detailed above).        |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Year 2011 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 10       | 0.10     | 41,219   | 78.59    |
|                         | /06/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 8        | 0.10     | 79,937   | 40.52    |
|                         | /09/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 8        | 0.10     | 59,517   | 54.42    |
|                         | /12/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 24       | 0        | 42,162   | 85.37    |
|                         | /05/2011 | .11112** |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2011     |          | 0.41112  | 222,835  | 59.76    |
+-------------------------+----------+----------+----------+----------+
| Stock Dividend**        |          |          |          |          |
|                         |          |          |          |          |
| The 1/2012 General      |          |          |          |          |
| Meeting of Shareholders |          |          |          |          |
| approved the dividend   |          |          |          |          |
| payment for the year    |          |          |          |          |
| 2011. The dividend will |          |          |          |          |
| be paid in the form of  |          |          |          |          |
| the Company’s common    |          |          |          |          |
| stock of no more than   |          |          |          |          |
| 32,392,113 shares, at   |          |          |          |          |
| THB 1 per share. This   |          |          |          |          |
| will be given to the    |          |          |          |          |
| Company’s shareholders  |          |          |          |          |
| at the rate of 10       |          |          |          |          |
| original shares per 1   |          |          |          |          |
| stock dividend or THB   |          |          |          |          |
| 0.10 per share (along   |          |          |          |          |
| with the cash dividend  |          |          |          |          |
| at the rate of THB      |          |          |          |          |
| 0.41112 per share as    |          |          |          |          |
| detailed above).        |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Year 2010 :             |          |          |          |          |
|                         |          |          |          |          |
| Cash Dividend           |          |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 1             | 11       | 0.10     | 46,248   | 70.04    |
|                         | /06/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 2             | 8        | 0.10     | 68,039   | 47.61    |
|                         | /09/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 3             | 9        | 0.10     | 51,381   | 63.04    |
|                         | /12/2009 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| - Quarter 4             | 27       | 0.43     | 71,316   | 195.31   |
|                         | /05/2010 |          |          |          |
+-------------------------+----------+----------+----------+----------+
| Total for Year 2010     |          | 0.73     | 236,984  | 99.78    |
+-------------------------+----------+----------+----------+----------+
| Remark * Rate of        |          |          |          |          |
| dividend per share      |          |          |          |          |
| which is paid from net  |          |          |          |          |
| profit after corporate  |          |          |          |          |
| tax in the financial    |          |          |          |          |
| statement for           |          |          |          |          |
| individual company is   |          |          |          |          |
| proposed by the board   |          |          |          |          |
| of directors, where by  |          |          |          |          |
| such rate will be       |          |          |          |          |
| decided at the annual   |          |          |          |          |
| general shareholder’s   |          |          |          |          |
| meeting on April 25,    |          |          |          |          |
| 2013, and the rate is   |          |          |          |          |
| calculated from common  |          |          |          |          |
| shares stated on        |          |          |          |          |
| November 23, 2012.      |          |          |          |          |
+-------------------------+----------+----------+----------+----------+