CONSOLIDATED FINANCIAL STATEMENTS QUARTER 1/1999

AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders of Siam Makro Public Company Limited I have performed a review of the accompanying company and consolidated balance sheets of Siam Makro Public Company Limited as at 31 March 1999 and 1998 and the related company and consolidated statements of income, retained earnings, changes in shareholders' equity and cash flows for the three- month periods then ended. These financial statements are the responsibility of the Company's management. My responsibility is to issue a report on these financial statements based on my review. I conducted my review in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of the financial statements, making an analytical review of pertinent financial data, and making inquiries of officials of the company who have responsibility for financial and accounting matters. This review is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I express no opinion on the financial statements which I have reviewed. Based on my review, I am not aware of any material modifications that should be made to the aforementioned interim company and consolidated financial statements for them to be in conformity with generally accepted accounting principles. PRASAN CHUAPHANICH Certified Public Accountant (Thailand) No.3051 PricewaterhouseCoopers ABAS Limited Bangkok 28 April 1999 The accompanying financial statements are not intended to present the financial position, results of operations, and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. Unaudited Reviewed Siam Makro Public Company Limited Page 2 Balance sheets and consolidated balance sheets as at 31 March 1999 and 1998 The company only Notes 1999 1998 (Baht' 000) (Baht' 000) ASSETS Current assets Cash in hand and at banks 2,007,858 903,609 Short-term investments 2 Bill of exchange - 1,137,000 Other 340,000 220,000 Accounts receivable - trade, net 3 2,330 2,577 Amounts due from subsidiary and affiliated companies 4 163,567 504,695 Short-term loans to subsidiary companies 4 140,600 452,800 Inventories, net 5 2,026,213 2,188,042 Other current assets VAT receivable - - Purchase discount receivable 65,000 16,000 Prepayment 9,700 25,210 Other 61,079 46,829 Total current assets 4,816,347 5,496,762 Loans to a subsidiary company 4 1,178,400 1,178,400 Investments in subsidiary companies 6 1,626,185 1,063,803 Property, plant and equipment, net 7 5,604,817 5,217,611 Other assets Deferred development rights, net 8 - - Pre-opening and start-up expenses, net 9 138,038 166,533 Deposits 4 314,854 311,271 TOTAL ASSETS 13,678,641 13,434,380 The consolidation Notes 1999 1998 (Baht' 000) (Baht' 000) ASSETS Current assets Cash in hand and at banks 2,082,888 983,238 Short-term investments 2 Bill of exchange - 1,137,000 Other 361,000 220,000 Accounts receivable - trade, net 3 4,669 3,430 Amounts due from subsidiary and affiliated companies 4 537 4,874 Short-term loans to subsidiary companies 4 - - Inventories, net 5 2,184,727 2,391,068 Other current assets VAT receivable 26,260 45,999 Purchase discount receivable 71,506 22,611 Prepayment 13,205 31,807 Other 70,622 56,781 Total current assets 4,815,414 4,896,808 Loans to a subsidiary company 4 - - Investments in subsidiary companies 6 - - Property, plant and equipment, net 7 8,888,548 8,548,944 Other assets Deferred development rights, net 8 32,405 43,524 Pre-opening and start-up expenses, net 9 152,219 182,728 Deposits 4 59,175 54,750 TOTAL ASSETS 13,947,761 13,726,754 The notes to the financial statements on pages 8 to 20 form an integral part of these financial statements. Auditor's report page 1. The company only Notes 1999 1998 (Baht' 000) (Baht' 000) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Loans from bank - 506,700 Accounts payable - trade 5,087,821 4,799,378 Amounts due to subsidiary and affiliated companies 4 44,919 34,226 Other current liabilities Accounts payable - other 190,732 75,145 Accrued income tax 130,311 137,105 Accrued expenses 138,856 158,191 VAT payable 69,177 48,626 Forward exchange contract payable 92 - Other 52,053 29,509 Total current liabilities 5,713,961 5,788,880 Other liabilities Provision for retirement benefits 150,438 124,587 Provision for warranty claim - - TOTAL LIABILITIES 5,864,399 5,913,467 Shareholders' equity Share capital 10 2,400,000 2,400,000 Share premium 3,290,152 3,290,152 Legal reserve 163,947 138,910 Retained earnings 1,960,143 1,691,851 TOTAL SHAREHOLDERS' EQUITY 7,814,242 7,520,913 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 13,678,641 13,434,380 The consolidation Notes 1999 1998 (Baht' 000) (Baht' 000) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Loans from bank - 506,700 Accounts payable - trade 5,288,900 5,003,599 Amounts due to subsidiary and affiliated companies 4 28,669 30,486 Other current liabilities Accounts payable - other 204,063 97,662 Accrued income tax 163,799 165,495 Accrued expenses 161,030 184,350 VAT payable 69,177 48,626 Forward exchange contract payable 92 - Other 55,538 37,704 Total current liabilities 5,971,268 6,074,622 Other liabilities Provision for retirement benefits 161,937 130,435 Provision for warranty claim 314 784 TOTAL LIABILITIES 6,133,519 6,205,841 Shareholders' equity Share capital 10 2,400,000 2,400,000 Share premium 3,290,152 3,290,152 Legal reserve 163,947 138,910 Retained earnings 1,960,143 1,691,851 TOTAL SHAREHOLDERS' EQUITY 7,814,242 7,520,913 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 13,947,761 13,726,754 Director Director . Date 28 April 1999 Unaudited Reviewed Siam Makro Public Company Limited Page 3 Statements of income and consolidated statements of income for the three-month periods ended 31 March 1999 and 1998 The company only Note 1999 1998 (Baht' 000) (Baht' 000) REVENUES Sales 7,202,422 7,502,567 Other income Interest income 50,001 84,113 Service income 103,719 92,920 Other 58,668 42,690 TOTAL REVENUES 7,414,810 7,722,290 EXPENSES Cost of sales 6,635,181 6,888,655 Selling and administrative expenses 617,301 630,812 Interest expenses 5,305 9,079 Directors' remuneration 360 360 TOTAL EXPENSES 7,258,147 7,528,906 Net income before tax 156,663 193,384 Income tax (48,000) (57,500) Net income before share of profit from subsidiary companies 108,663 135,884 Share of profit from subsidiary companies 25,904 2,099 NET INCOME FOR THE PERIOD 134,567 137,983 STATEMENTS OF RETAINED EARNINGS Retained earnings brought forward 1,825,576 1,553,868 Net income for the period 134,567 137,983 Retained earnings carried forward 1,960,143 1,691,851 EARNINGS PER SHARE 11 Net income 0.56 0.57 (More)