ONSOLIDATED FINANCIAL STATEMENTS QUARTER 1/1999

The company only 1999 1998 Subsidiary companies : Investment Dividend Investment Dividend (Baht'000) (Baht'000) (Baht'000) (Baht'000) Makro Properties Limited 1,251,298 - 1,118,194 - Makro Auto Care Company Limited 215,306 - (23,116) - Makro Office Centre Company Limited 159,581 - (31,275) - 1,626,185 - 1,063,803 - The consolidation 1999 1998 Subsidiary companies : Investment Dividend Investment Dividend (Baht'000) (Baht'000) (Baht'000) (Baht'000) Makro Properties Limited - - - - Makro Auto Care Company Limited - - - - Makro Office Centre Company Limited - - - - - - - - Unaudited Reviewed Siam Makro Public Company Limited Page 15 Notes to the financial statements and consolidated financial statements 31 March 1999 continued Property, plant and equipment, net 7. The company only 1999 1998 (Baht'000) (Baht'000) Property, plant and equipment, at cost Land 782,655 782,655 Buildings 3,726,591 3,282,669 Leasehold rights and leasehold improvement 412,700 182,894 Store equipment 2,471,337 2,257,239 Office equipment and furniture and fixtures 551,469 508,216 Motor vehicles 50,246 55,574 Construction in progress 54,573 28,659 8,049,571 7,097,906 Less: Accumulated depreciation (2,414,651) (1,849,294) Provision for the disposal of obsolete and lost equipment (30,103) (31,001) Property, plant and equipment, net 5,604,817 5,217,611 Depreciation for the period amounting to Baht 150,858,556 is charged to the statement of income. (1998 : Baht 153,203,651 ) The consolidation 1999 1998 (Baht'000) (Baht'000) Property, plant and equipment, at cost Land 3,572,980 3,572,980 Buildings 3,894,981 3,415,430 Leasehold rights and leasehold improvement 470,851 245,913 Store equipment 2,751,160 2,522,650 Office equipment and furniture and fixtures 655,461 607,546 Motor vehicles 55,330 61,461 Construction in progress 62,366 56,583 11,463,129 10,482,563 Less: Accumulated depreciation (2,540,727) (1,902,618) Provision for the disposal of obsolete and lost equipment (33,854) (31,001) Property, plant and equipment, net 8,888,548 8,548,944 Depreciation for the period amounting to Baht 169,292,303 is charged to the consolidated statement of income. (1998 : Baht 168,658,828) Unaudited Reviewed Siam Makro Public Company Limited Page 16 Notes to the financial statements and consolidated financial statements 31 March 1999 continued Deferred development rights, net 8. The balance is shown net of accumulated amortisation as follows : The consolidation 1999 1998 (Baht'000) (Baht'000) Accumulated amortisation 23,486 12,367 Pre-opening and start-up expenses, net 9. The balance is shown net of accumulated amortisation as follows: The company only 1999 1998 (Baht'000) (Baht'000) Accumulated amortisation 300,874 243,270 The consolidation 1999 1998 (Baht'000) (Baht'000) Accumulated Amortisation 306,201 244,766 Share capital 10. 1999 1998 (Baht'000) (Baht'000) Authorized share capital : 240,000,000 shares of Baht 10 each 2,400,000 2,400,000 Issued and paid up share capital : 240,000,000 shares of Baht 10 each 2,400,000 2,400,000 Earnings per share 11. Earnings per share is calculated based on the weighted average number of shares in issue during the period. Unaudited Reviewed Siam Makro Public Company Limited Page 17 Notes to the financial statements and consolidated financial statements 31 March 1999 continued Contingent liabilities and commitment 12. Dividends At the board of directors' meeting dated 17 March 1999, it was unanimously resolved that dividends for the year ended 31 December 1998 be paid at Baht 0.85 per share totalling Baht 204 million, and the declaration of such payment be presented to the annual general meeting dated 30 April 1999 for further confirmation and approval. The dividends payable has not been included in these financial statements. Bank guarantees As at 31 March 1999, the banks have given guarantees on behalf of the company and its subsidiary companies as follows : The company only The consolidation (Baht'000) (Baht'000) Electricity 35,933 37,520 Sales of liquor and cigarettes 2,101 2,131 Others 480 2,180 38,514 41,831 Letter of awareness As at 31 March 1999, the company has issued letters of awareness to a bank for a bank overdraft facility of subsidiary companies amounting to Baht 70 million . Lease agreements The company has entered into several land lease agreements with a subsidiary company and several building area lease agreements with external lessors. In addition, the subsidiary companies have also entered into building area lease agreements with external lessors. The future payments to which the company and its subsidiary companies are committed under these agreements are as follows : The company only The consolidation (Baht'000) (Baht'000) Due within 1 year 273,706 56,156 Due after 1 year but within 5 years 265,376 186,464 Due after 5 years 502,035 622,134 1,041,117 864,754 Unaudited Reviewed Siam Makro Public Company Limited Page 18 Notes to the financial statements and consolidated financial statements 31 March 1999 continued Capital expenditure commitment As at 31 March 1999, the company and its subsidiary companies have capital expenditure commitments in respect of construction contracts and the purchase of fixed assets as follows : The company only The consolidation (Baht'000) (Baht'000) Capital expenditure commitments 44,857 62,647 Financial instruments 13. The company's policy on risk management of liabilities in foreign currencies is to use financial instruments purchased in the financial markets. For hedging purposes, the company has entered into forward exchange contracts to cover loan and purchase commitment in foreign currencies. Bank facilities 14. As at 31 March 1999, the company and its subsidiary companies have the following unutilised credit facilities available with local banks and foreign banks : The company only Currencies Amount (Unit : Million) Local banks - Bank overdrafts facilities Baht 95 - Loan facilities Baht 150 - Letter of credit facilities Baht 190 - Letter of guarantee facilities Baht 13 Foreign banks - Loan facilities USD 35 The consolidation Currencies Amount (Unit : Million) Local banks - Bank overdrafts facilities Baht 135 - Loan facilities Baht 150 - Letter of credit facilities Baht 224 - Letter of guarantee facilities Baht 25 Foreign banks - Loan facilities USD 35 The loan facilities from foreign banks are available through 25 January 2001. (More)