INTERIM FINANCIAL STATEMENT Q2-1999

AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders of Electricity Generating Public Company Limited I have performed a review of the accompanying company and consolidated balance sheets of Electricity Generating Public Company Limited as at June 30, 1999 and 1998, and the related company and consolidated statements of income (loss), changes in shareholders' equity and statements of cash flows for the second quarters and six-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 and consolidated 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. As described in note 3 to the financial statements, the company has changed its accounting policy in respect of valuation of investments to be in accordance with the accounting standard number 40. NANGNOI CHAROENTHAVEESUB Certified Public Accountant (Thailand) No. 3044 PricewaterhouseCoopers ABAS Limited Bangkok July 16, 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 Electricity Generating Public Company Limited Page 2 Company and consolidated balance sheets as at June 30, 1999 and 1998 Notes The company only 1999 1998 (Baht'000) (Baht'000) ASSETS Current assets Cash in hand and at banks 783,377 33,035 Short-term investments Deposits at banks and financial institutions 1,727,712 2,816,693 Deposits at banks and financial institutions used as collateral 6 - - Marketable securities 232,526 199,726 Account receivable-trade - - Advance and loans to related companies 5 61,405 1,139 Spare parts and supplies, net - - Other current assets Interest receivable 19,292 59,015 Others 73,271 128,709 Total current assets 2,897,583 3,238,317 Deposits at financial institutions - - Deposits at financial institutions used as collateral 6 - - Investments in and loans to subsidiaries, associates and others 7 12,881,271 9,026,435 Property, plant and equipment, net 8,9 1,010,435 603,182 Other assets, net 6,395 17,401 TOTAL ASSETS 16,795,684 12,885,335 Notes Consolidation 1999 1998 (Baht'000) (Baht'000) ASSETS Current assets Cash in hand and at banks 932,467 42,850 Short-term investments Deposits at banks and financial institutions 2,016,728 3,043,910 Deposits at banks and financial institutions used as collateral 6 5,658,150 5,690,015 Marketable securities 154,164 89,823 Account receivable-trade 1,529,542 1,703,709 Advance and loans to related companies 5 53,316 23,845 Spare parts and supplies, net 1,928,365 2,002,499 Other current assets Interest receivable 68,890 156,850 Others 151,504 209,850 Total current assets 12,493,126 12,963,351 Deposits at financial institutions 54,695 54,695 Deposits at financial institutions used as collateral 6 3,649,059 2,788,099 Investments in and loans to subsidiaries, associates and others 7 1,205,391 285,255 Property, plant and equipment, net 8,9 28,043,522 29,143,910 Other assets, net 786,889 954,680 TOTAL ASSETS 46,232,682 46,189,990 The notes to the financial statements on pages 7 to 22 form an integral part of these financial statements. Auditor's report page 1. Notes The company only 1999 1998 (Baht'000) (Baht'000) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 5 - - Current portion of long-term loans and debentures 8, 9 - - Other current liabilities Interest payable - - Value added tax payable - - Others 193,204 50,402 Total current liabilities 193,204 50,402 Long-term loans 8 - - Debentures 9 - - TOTAL LIABILITIES 193,204 50,402 MINORITY INTEREST - - Shareholders' equity Share capital 5,242,711 5,227,092 Share premium 8,557,422 8,526,184 Unrealised gain on investments in marketable securities available for sales 65,778 - Legal reserve 102,643 19,793 Retained earnings (accumulated deficit) 2,633,926 (938,136) TOTAL SHAREHOLDERS' EQUITY 16,602,480 12,834,933 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 16,795,684 12,885,335 Notes Consolidation 1999 1998 (Baht'000) (Baht'000) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 5 152,059 119,875 Current portion of long-term loans and debentures 8, 9 2,258,580 1,572,787 Other current liabilities Interest payable 140,970 153,183 Value added tax payable 141,337 114,522 Others 346,376 470,366 Total current liabilities 3,039,322 2,430,733 Long-term loans 8 17,529,013 20,909,732 Debentures 9 9,015,371 9,968,802 TOTAL LIABILITIES 29,583,706 33,309,267 MINORITY INTEREST 46,496 45,790 Shareholders' equity Share capital 5,242,711 5,227,092 Share premium 8,557,422 8,526,184 Unrealised gain on investments in marketable securities available for sales 65,778 - Legal reserve 102,643 19,793 Retained earnings (accumulated deficit) 2,633,926 (938,136) TOTAL SHAREHOLDERS' EQUITY 16,602,480 12,834,933 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 46,232,682 46,189,990 Director Date July 16, 1999 Unaudited Reviewed Electricity Generating Public Company Limited Page 3 Company and consolidated statements of income (loss) for the second quarters and the six-month periods ended June 30, 1999 and 1998 The company only Notes 1999 1998 second second quarter six-month quarter six-month (Baht'000)(Baht'000) (Baht'000) (Baht'000) REVENUES Sales 5 - - - - Service income - - - - Other income Interest income 37,227 72,474 128,089 231,851 Others 19,555 153,469 38,394 78,919 TOTAL REVENUES 56,782 225,943 166,483 310,770 EXPENSES Cost of sales 5, 10 - - - - Cost of services - - - - Administrative expenses 46,843 88,432 54,273 97,335 Interest expenses - - - - Exchange losses (gains) 11 - - - - Directors' remuneration 1,708 3,207 1,242 2,770 TOTAL EXPENSES 48,551 91,639 55,515 100,105 Net income (loss) before share of profits (lossses) from subsidiaries and associates and income tax 8,231 134,304 110,968 210,665 Share of profits (losses) from subsidiaries and associates 1,025,385 1,624,953 (418,576) 3,263,222 Income tax (1,784) (13,723) - - Minority interest - - - - NET INCOME (LOSS) FOR THE PERIOD 1,031,832 1,745,534 (307,608) 3,473,887 EARNINGS (LOSS) PER SHARE Net income (loss) (Baht) 1.97 3.33 (0.59) 6.65 Consolidation Notes 1999 1998 second second quarter six-month quarter six-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) REVENUES Sales 5 2,120,071 4,272,805 2,269,637 4,806,385 Service income 35,481 53,948 8,525 16,167 Other income Interest income 178,376 353,626 396,897 711,735 Others 38,219 163,295 40,410 85,944 TOTAL REVENUES 2,372,147 4,843,674 2,715,469 5,620,231 EXPENSES Cost of sales 5, 10 634,427 1,281,118 1,010,890 1,748,387 Cost of services 32,925 48,382 11,695 30,141 Administrative expenses 133,087 241,579 120,950 229,624 Interest expenses 731,014 1,474,427 829,329 1,718,141 Exchange losses (gains) 11 (195,992) 32,886 1,046,822 (1,584,809) Directors' remuneration 4,752 8,556 3,772 8,266 TOTAL EXPENSES 1,340,213 3,086,948 3,023,458 2,149,750 (More)