NATURE OF BUSINESS

Business Overview

Shareholding Structure of the Company’s Group

  The shareholding structure of the Company’s Group as of December 31,
  2012, is as follows:

The details of the subsidiaries and affiliates in which ANAN holds
shares are as follows:

+---------+----+-----------------+-----------------+--------+--------+
| Company | Da | Type of         | Address         | Shareh | P      |
|         | te | Business        |                 | olding | aid-up |
|         | of |                 |                 | Prop   | C      |
|         | I  |                 |                 | ortion | apital |
|         | nc |                 |                 | in     | 2012   |
|         | or |                 |                 | 2012   | (M     |
|         | po |                 |                 |        | illion |
|         | ra |                 |                 |        | Baht)  |
|         | ti |                 |                 |        |        |
|         | on |                 |                 |        |        |
+=========+====+=================+=================+========+========+
| Ananda  | S  | Real Estate     | 99/1 Moo 14 Soi | 100.00 | 67.18  |
| Deve    | ep | Project         | Wind Mill       |        |        |
| lopment | te | Development:    | Village,        |        |        |
| One     | mb | landed housing  | Bangna-Trad     |        |        |
| Company | er | projects        | Road (Kilometer |        |        |
| Limited | 8, | located around  | 10.5),          |        |        |
|         | 20 | Suvanabhumi     | Bangpleeyai     |        |        |
|         | 05 | Airport Area    | Sub- District,  |        |        |
|         |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
| Ananda  | Fe | Real Estate     | 99/4 Moo 14 Soi | 100.00 | 300.00 |
| Deve    | br | Project         | Wind Mill       |        |        |
| lopment | ua | Development:    | Village,        |        |        |
| Two     | ry | condominium     | Bangna-Trad     |        |        |
| Company | 2  | projects        | Road (Kilometer |        |        |
| Limited | 8, | located near    | 10.5),          |        |        |
|         | 20 | railway mass    | Bangpleeyai     |        |        |
|         | 07 | transit         | Sub- District,  |        |        |
|         |    | stations        | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    | in Bangkok and  | Samutprakarn    |        |        |
|         |    | its peripheral  | Province 10540  |        |        |
|         |    | areas           |                 |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   Baan  | S  | Real Estate     | 3rd Floor,      | 100.0  | 700.00 |
|   N     | ep | Project         | 318/10-22 Soi   | 0^(/1) |        |
| iravana | te | Development:    | Sukhumvit 22,   |        |        |
|         | mb | landed housing  | Sukhumvit Road, |        |        |
| Company | er | projects        | Klongtoey Sub-  |        |        |
|         | 2  | located around  | District,       |        |        |
| Limited | 2, | Suvarnabhumi    | Klongtoey       |        |        |
|         | 20 | Airport area    | District,       |        |        |
|         | 06 |                 | Bangkok         |        |        |
|         |    |                 |                 |        |        |
|         |    |                 | 10110           |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   Bira  | Fe | To lease Bira   | 99/4 Moo 14 Soi | 99.78  | 45.00  |
|         | br | Circuit race    | Wind Mill       |        |        |
| Circuit | ua | tracks located  | Village,        |        |        |
|   One   | ry | near Pattaya    | Bangna-Trad     |        |        |
|         | 1  | City, Chonburi  | Road (Kilometer |        |        |
|         | 8, | Province รี      | 10.5),          |        |        |
| Company | 20 |                 | Bangpleeyai     |        |        |
|         | 03 |                 | Sub- District,  |        |        |
| Limited |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   Bira  | Au | To lease        | 99/4 Moo 14 Soi | 100.0  | 36.50  |
|   Kart  | gu | Go-Kart race    | Wind Mill       | 0^(/2) |        |
|         | st | tracks          | Village,        |        |        |
| Company | 1  |                 | Bangna-Trad     |        |        |
|         | 6, |                 | Road (Kilometer |        |        |
| Limited | 20 |                 | 10.5),          |        |        |
|         | 05 |                 | Bangpleeyai     |        |        |
|         |    |                 | Sub- District,  |        |        |
|         |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   Bira  | De | To sell Go-Kart | 99/4 Moo 14 Soi | 45.0   | 2.00   |
|   RT    | ce | parts           | Wind Mill       | 0^(/3) |        |
|   Kart  | mb |                 | Village,        |        |        |
|         | er |                 | Bangna-Trad     |        |        |
| Company | 1, |                 | Road (Kilometer |        |        |
|         | 20 |                 | 10.5),          |        |        |
| Limited | 08 |                 | Bangpleeyai     |        |        |
|         |    |                 | Sub- District,  |        |        |
|         |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   S     | De | To hold title   | 9/1 Moo 14 Soi  | 100.00 | 89.20  |
| riwaree | ce | of land to be   | Wind Mill       |        |        |
|   Deve  | mb | developed       | Village,        |        |        |
| lopment | er |                 | Bangna- Trad    |        |        |
|         | 2  |                 | Road (Kilometer |        |        |
| Company | 7, |                 | 10.5),          |        |        |
|         | 20 |                 | Bangpleeyai     |        |        |
| Limited | 10 |                 | Sub-District,   |        |        |
|         |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
|   The   | J  | To act as an    | 99/4 Moo 14 Soi | 99.98  | 1.20   |
|   Agent | an | agent in the    | Wind Mill       |        |        |
|   (P    | ua | sale/purchase   | Village,        |        |        |
| roperty | ry | of condominium  | Bangna-Trad     |        |        |
|         | 2  | units and       | Road (Kilometer |        |        |
| Expert) | 2, | procurement of  | 10.5),          |        |        |
|         | 20 | lessees for     | Bangpleeyai     |        |        |
| Company | 04 | condominium     | Sub- District,  |        |        |
|         |    | units           | Bangplee        |        |        |
| Limited |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
| The     | Au | To provide      | 99/4 Moo 14 Soi | 99.98  | 1.00   |
| Works   | gu | management      | Wind Mill       |        |        |
| Co      | st | services for    | Village,        |        |        |
| mmunity | 3  | condominiums    | Bangna-Trad     |        |        |
| Man     | 1, | and landed      | Road (Kilometer |        |        |
| agement | 20 | housings        | 10.5),          |        |        |
|         | 07 |                 | Bangpleeyai     |        |        |
| Company |    |                 | Sub- District,  |        |        |
| Limited |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+
| Bludeck | Fe | To operate a    | 189 Moo         | 99.96  | 233.00 |
| Company | br | sports club and | 12Rachedeva     |        |        |
|         | ua | restaurants     | Sub- District,  |        |        |
|         | ry |                 | Bangplee        |        |        |
| Limited | 2  |                 | District,       |        |        |
|         | 6, |                 | Samutprakarn    |        |        |
|         | 20 |                 | Province 10540  |        |        |
|         | 03 |                 |                 |        |        |
+---------+----+-----------------+-----------------+--------+--------+
| Ideo    | Au | Currently       | 99/4 Moo 14 Soi | 99.80  | 0.10   |
| Condo   | gu | dormant         | Wind Mill       |        |        |
| Condo   | st |                 | Village,        |        |        |
| Limited | 3  |                 | Bangna-Trad     |        |        |
|         | 1, |                 | Road (Kilometer |        |        |
|         | 20 |                 | 10.5),          |        |        |
|         | 07 |                 | Bangpleeyai     |        |        |
|         |    |                 | Sub- District,  |        |        |
|         |    |                 | Bangplee        |        |        |
|         |    |                 | District,       |        |        |
|         |    |                 | Samutprakarn    |        |        |
|         |    |                 | Province 10540  |        |        |
+---------+----+-----------------+-----------------+--------+--------+

Remarks:

/1 Held through its shareholding in ADO

/2 Held directly and indirectly through its shareholding in BCO

/3Held by BK, with the remaining 55% of the shares being held by the
persons with no conflict of interest with the Company

Nature of Business Operations

The Company’s main business is the development of condominium projects
located near railway mass transit stations in Bangkok and its peripheral
areas. Apart from its condominium development business, the Company also
develops landed housing and is engaged in the management of real estate
development projects.

The condominium projects developed by the Company under the name “Ideo”
are located near railway mass transit stations. The units within these
projects are priced at an average of approximately Baht 2 million to
Baht 4 million each. The target group of customers for the Company’s
condominium projects is the “Gen C” group. This target group consists of
customers aged 21 to 35 years who have just started their careers and
are looking for condominium units before marriage. In addition, the
Company also targets the “Baby Gen C” group, which consists of customers
looking for condominium units for their children who are studying in
tertiary institutions. The Company expects these two groups of
customers, when considering the purchase of condominium units, to
generally prefer condominium projects which are located near or adjacent
to railway mass transit stations.

The real estate development projects developed by ADO and BN, a
subsidiary of ADO, are landed housing projects, priced at approximately
Baht 1 million to Baht 5 million. These projects are located around
Suvarnabhumi Airport area, each bearing a resort style name under the
brand “Ananda”. The target group of customers consists of residents
living near or working at Suvarnabhumi Airport or its neighboring areas.

From 2005, the Company has operated other businesses through its
subsidiaries, such as the race tracks of Bira International Circuit and
the go-kart race tracks operated by BCO and BK.

The Company also operates a sports club named Bludeck through BD. This
sports club is a hybrid sports-social club providing services only for
its members. At this sports club, facilities include fitness areas, a
swimming pool, tennis courts, a basketball court, a futsal court and
badminton courts, as well as an Italian restaurant named Bacco.

At the end of 2010, the Company commenced the operation of two new
businesses in order to complement its main real estate development
business, through its subsidiaries, Agent and Works. Agent acts as the
agent in the sale or purchase of condominium units and procurement of
lessees for condominium unit owners. Agent will serve the Company’s
customers when these customers decide to purchase, sell or lease their
condominium units in the secondary market. Works provides management
services for condominiums and landed housing projects. Works allows the
Company to maintain high standards in the provision of condominium
management services to its customers upon completion of the Company’s
projects.

The Company also develops condominiums under its “Elio” brand. These are
situated within 600 m of a railway mass transit station. The units
within these projects are priced at approximately Baht 1 million to Baht
3 million. The target group of customers for Elio brand is the same Gen
C as for the main Ideo brand, but at a lower cost. The buildings are
typically 8 storeys and thus can be constructed more quickly than high
rise Ideos.