EVIEWED QUARTER-1 F/S AND CONSOLIDATED F/S

8. The company only 1998 1997 (Baht'000) (Baht'000) Property, plant and equipment, at cost Land 782,655 784,892 Buildings 3,282,669 2,807,687 Leasehold rights and leasehold improvement 182,894 188,596 Store equipment 2,257,239 1,935,567 Office equipment and furniture and fixtures 508,216 430,018 Motor vehicles 55,574 54,917 Construction in progress 28,659 76,341 7,097,906 6,278,018 Less: Accumulated depreciation (1,849,294) (1,333,378) Property, plant and equipment, net 5,248,612 4,944,640 Depreciation for the period amounting to Baht 153 million is charged to the statement of income (1997 : Baht 131 million). Unaudited Reviewed Siam Makro Public Company Limited Page 14 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued The consolidation 1998 1997 (Baht'000) (Baht'000) Property, plant and equipment, at cost Land 3,572,980 3,388,952 Buildings 3,415,430 2,812,752 Leasehold rights and leasehold improvement 245,913 188,596 Store equipment 2,522,650 2,093,915 Office equipment and furniture and fixtures 607,546 479,927 Motor vehicles 61,461 59,093 Construction in progress 56,583 81,674 10,482,563 9,104,909 Less: Accumulated depreciation (1,902,618) (1,337,482) Property, plant and equipment, net 8,579,945 7,767,427 Depreciation for the period amounting to Baht 169 million is charged to the consolidated statement of income (1997 : Baht 135 million). Deferred development rights, net 9. The balance is shown net of accumulated amortisation as follows : The consolidation 1998 1997 (Baht'000) (Baht'000) Accumulated amortisation 12,367 1,229 Unaudited Reviewed Siam Makro Public Company Limited Page 15 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued Pre-opening and start-up expenses, net 10. The balance is shown net of accumulated amortisation as follows : The company only The consolidation 1998 1997 1998 1997 (Baht'000) (Baht'000) (Baht'000) (Baht'000) Accumulated amortisation 243,270 186,988 244,766 186,989 Loans from bank 11. These represent loans from a foreign bank, equivalent to USD 15 million. The loans bear interest at the Singapore Inter Bank Offer rate plus 0.425% and will be due for repayment in August 1998. The company is required to comply with the terms and conditions as specified in the loan agreement. There is a forward exchange contract to cover this loan. Share capital 12. 1998 1997 (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 Unaudited Reviewed Siam Makro Public Company Limited Page 16 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued Earnings per share 13. Earnings per share is calculated based on the weighted average number of shares in issue during the period. Post balance sheet events 14. At the annual shareholders' meeting dated April 24,1998, it was unanimously resolved that dividends for the year ended December 31, 1997 be paid at Baht 0.85 per share. The dividends payable amounting to Baht 204 million has not been included in these financial statements. Contingent liabilities and commitment 15. (a) Bank guarantees As at March 31, 1998, the banks have given guarantees on behalf of the company and its subsidiaries as follows: The company only The consolidation (Baht'000) (Baht'000) Electricity 32,255 32,699 Sales of liquor and cigarettes 2,090 2,120 Others 480 2,180 34,825 36,999 (b) Letter of awareness As at March 31, 1998, the company has issued letters of awareness to a bank for a bank overdraft facility of subsidiary companies amounting to Baht 70 million. Unaudited Reviewed Siam Makro Public Company Limited Page 17 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued (c) Letter of credit As at March 31, 1998, the company has unused letter of credit facility amounting to Baht 165 million. (d) Lease agreement 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 subsidiaries are committed under these agreements are as follows : The company only The consolidation (Baht'000) (Baht'000) Due within 1 year 234,314 38,145 Due after 1 year but within 5 years 204,717 127,146 Due after 5 years 289,137 429,794 728,168 595,085 (e) Capital expenditure commitment As at March 31, 1998, the company and its subsidiaries 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 38,859 39,174 Unaudited Reviewed Siam Makro Public Company Limited Page 18 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued Financial instruments 16. The company's policy on risk management of liabilities in foreign currencies is to use financial instruments purchased in financial markets. For hedging purposes, the company has entered into forward exchange contracts to cover loan and purchase commitments in foreign currencies. As at March 31, 1998, deferred hedging cost arising under these contracts amounted to Baht 12.4 million. Bank overdrafts and loans facilities 17. As at March 31, 1998, the company has unused bank overdrafts and loans facilities with local banks and foreign banks as follows : The company only The consolidation Currencies (Amount) (Amount) (Unit : Million) (Unit : Million) Local banks - Bank overdrafts facilities Baht 95 115 - Loans facilities Baht 175 175 Foreign banks - Loans facilities USD 35 35 The loan facilities from foreign banks are available through January 24, 2001. Unaudited Reviewed Siam Makro Public Company Limited Page 19 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued Segmental information by business activity 18. The consolidation The consolidation for the first quarter ended March 31, 1998 for the first quarter ended March 31, 1997 Wholesale and Service Land Rental Elimination Total Wholesale and Service Land Rental Elimination Total Retail Business Business Business Retail Business Business Business (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) Sales and service income - Unaffiliated customers 7,708 186 - - 7,894 7,468 89 - - 7,557 - Intercompany - - 68 (68) - 240 - 58 (298) - 7,708 186 68 (68) 7,894 7,708 89 58 (298) 7,557 Gross profit 649 34 - - 683 757 16 - - 773 Other income 184 148 Selling and administrative expenses (648) (609) Interest expenses (9) (7) Directors' remuneration (1) (1) Income tax (71) (109) Net income before share of loss from an associated company 138 195 Share of loss from an associated company - (7) Net income 138 188 Property, plant and equipment, net book value as at March 31, 1998 and 1997 5,390 400 2,790 - 8,580 5,043 120 2,604 - 7,767 Other assets 5,132 4,428 Total assets as at March 31, 1998 and 1997 13,712 12,195 Unaudited Reviewed Siam Makro Public Company Limited Page 20 Notes to the financial statements and consolidated financial statements - March 31, 1998 continued The company and its subsidiary companies operate 3 major businesses as follows : - Wholesale business of merchandise and retail business of office supplies. - Automotive service centers, automated car wash and gas stations - Land investment and property leasing Sales to unaffiliated customers are presented at market price. The transfers price for intercompany sales are established by agreements between the company and its subsidiary companies. Property, plant and equipment of each business are for its own operations. Other assets mainly comprise cash in hand and at banks, inventories, amounts due from and loans to affiliated companies. Comparative figures 19. The presentation of financial statements for the first quarter ended March 31, 1998 is in accordance with the announcement by the Stock Exchange of Thailand dated February 28, 1997 which is effect from the second quarter of 1997. The comparative figures of 1997 financial statements have been amended accordingly. Auditors' report page 1.