FINANCIAL STATEMENTS QUARTER ENDED 31 MARCH 2000

AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders of Electricity Generating Public Company Limited I have reviewed the accompanying consolidated and company balance sheet of Electricity Generating Public Company Limited as at 31 March 2000, and the related consolidated and company statements of income, changes in shareholders' equity and cash flows for the three-month periods ended 31 March 2000 and 1999. 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 the generally accepted auditing standard applicable to review engagements. This standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. I have not performed an audit, and, accordingly, I do not express an audit opinion. Based on my review, nothing has come to my attention that causes me to believe that the consolidated and company financial statements referred to above are not presented fairly, in all material respect, in accordance with generally accepted accounting principles. As described in note 2 to the consolidated and company interim financial statements, the Group changed its accounting policies as follows: (a) In the fourth quarter of 1999 the Group changed its accounting policy in respect of capitalisation of deferred pre-operating expenses and other deferred expenses to expense such cost as incurred. (b) In accordance with the Thai Accounting Standard No. 41, "Interim Financial Reporting", the Group reviewed its accounting policy in respect of major repair and maintenance expenses in the interim financial statements. As a result of this review, major repair and maintenance expenses are recorded as and when incurred in the interim financial statements. The Group, therefore, accounted for the changes in accounting policies retrospectively by adjusting to the opening retained earnings as at 1 January 1999 and the comparative statement of income for the three-month period ended 31 March 1999 has been restated accordingly for the above changes. I have reviewed the adjustments that they are appropriately made. I have audited the consolidated and company financial statements for the year ended 31 December 1999 of Electricity Generating Public Company Limited in accordance with generally accepted auditing standards and expressed an unqualified opinion on those statements in my report dated 4 February 2000. The consolidated and company balance sheets as at 31 December 1999, presented for comparative purpose, are part of the audited financial statements which I have audited and issued a report thereon as stated above, and I have not performed any other auditing procedures subsequent to the date of that report. NANGNOI CHAROENTHAVEESUB Certified Public Accountant (Thailand) No. 3044 PricewaterhouseCoopers ABAS Limited Bangkok 28 April 2000 Electricity Generating Public Company Limited Balance Sheets As at 31 March 2000 and 31 December 1999 Consolidated Company Unaudited Audited Unaudited Audited Notes 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 ASSETS Current Assets Cash on hand and at banks 1,628,591 1,680,603 1,588,779 1,413,456 Short-term investments Deposits at banks and financial institutions 7,796,062 6,662,914 5,807,439 6,121,494 Marketable securities 10 189,096 95,478 265,249 171,631 Deposits at banks and financial institutions used as collateral 4,7,8 7,297,921 5,932,414 - - Trade accounts receivable, net 10 900,787 1,448,837 - - Amounts due from related companies 10 37,268 19,312 8,327 13,679 Spare parts and supplies, net 2,106,346 1,883,303 - - Other current assets Interest receivable 117,279 111,539 47,062 50,648 Others 175,055 222,654 92,231 102,731 Total Current Assets 20,248,405 18,057,054 7,809,087 7,873,639 Non-Current Assets Long-term investments Deposits at financial institutions 48,312 48,312 - - Deposits at financial institutions used as collateral 4,7 3,569,959 3,740,991 - - Loans to related companies 10 32,490 32,490 75,200 75,200 Investments in subsidiaries and associates 5 488,091 480,850 13,945,903 12,788,857 Other long-term investments 5 230,503 227,981 230,503 227,981 Property, plant, and equipment, net 6 26,985,467 27,271,455 974,824 998,016 Other assets 87,823 38,956 19,654 19,972 Total Non-Current Assets 31,442,645 31,841,035 15,246,084 14,110,026 Total Assets 51,691,050 49,898,089 23,055,171 21,983,665 Director The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements Electricity Generating Public Company Limited Unaudited Balance Sheets (continued) As at 31 March 2000 and 31 December 1999 Consolidated Company Unaudited Audited Unaudited Audited Notes 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade accounts payable 111,109 169,715 - - Current portion of long-term loans and debentures 7,8 1,845,361 1,838,636 - - Amounts due to related companies 10 6,255 - 10,768 4,720 Other current liabilities Interest payable 955,635 220,141 178,630 78,904 Value added tax payable 155,898 122,124 - - Dividend payable 57,665 57,682 57,665 57,682 Others 149,609 182,408 37,552 79,999 Total Current Liabilities 3,281,532 2,590,706 284,615 221,305 Non-Current Liabilities Long-term loans 7 17,107,880 17,018,735 - - Debentures 8,10 13,469,818 13,469,818 5,000,000 5,000,000 Others 6,418 - - - Total Non-Current Liabilities 30,584,116 30,488,553 5,000,000 5,000,000 Total Liabilities 33,865,648 33,079,259 5,284,615 5,221,305 Shareholders' Equity Share capital 9 Authorised share capital 5,300,000 5,300,000 5,300,000 5,300,000 Issued and paid-up share capital 5,242,711 5,242,711 5,242,711 5,242,711 Premium on share capital 9 8,557,422 8,557,422 8,557,422 8,557,422 Unrealised gain on investments in marketable securities available for sales 45,230 41,144 45,230 41,144 Retained earnings Appropriated Legal reserve 235,041 235,041 235,041 235,041 Unappropriated 3,690,152 2,686,042 3,690,152 2,686,042 Minority Interest 54,846 56,470 - - Total Shareholders' Equity 17,825,402 16,818,830 17,770,556 16,762,360 Total Liabilities and Shareholders' Equity 51,691,050 49,898,089 23,055,171 21,983,665 The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Statements of Income For the Mthree-month periods ended 31 March 2000 and 1999 Consolidated Company Notes 31 March 31 March 31 March 31 March 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Revenues 10 Sales 2,347,420 2,152,734 - - Service income 26,972 18,466 - - Other income Interest income 182,014 175,432 59,997 35,247 Others 5,755 146,038 6,279 133,914 Total revenues 2,562,161 2,492,670 66,276 169,161 Expenses 10 Cost of sales 605,866 669,762 - - Cost of services 19,376 15,457 - - Administrative expenses 132,136 80,615 69,258 41,589 Interest expenses 769,660 743,921 99,726 - Currency exchange losses 34,906 228,878 - - Directors' remuneration 4,970 3,804 1,926 1,499 Total expenses 1,566,914 1,742,437 170,910 43,088 Operating profit (loss) 995,247 750,233 (104,634) 126,073 Shares of profit (loss) from subsidiaries and associates 7,240 (20,961) 1,108,745 604,047 Profit before tax 1,002,487 729,272 1,004,111 730,120 Income tax - (11,938) - (11,938) Profit before minority interest 1,002,487 717,334 1,004,111 718,182 Minority interest (1,624) (848) - - Net profit for the period 1,004,111 718,182 1,004,111 718,182 Basic earnings per share (Baht) 3 Profit before minority interest 1.91 1.37 1.92 1.37 Minority interest (0.01) - - - Net profit 1.92 1.37 1.92 1.37 Diluted earnings per share (Baht) 3 Profit before minority interest 1.89 1.36 1.89 1.36 Minority interest - - - - Net profit 1.89 1.36 1.89 1.36 The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Statements of Changes in Shareholders' Equity For the Mthree-month periods ended 31 March 2000 and 1999 Consolidated Company Notes 31 March 31 March 31 March 31 March 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Share capital 9 Beginning balance 5,242,711 5,227,092 5,242,711 5,227,092 Increase (Decrease) during the period - 1,000 - 1,000 Ending balance 5,242,711 5,228,092 5,242,711 5,228,092 Premium on share capital 9 Beginning balance 8,557,422 8,526,184 8,557,422 8,526,184 Increase (Decrease) during the period - 2,000 - 2,000 Ending balance 8,557,422 8,528,184 8,557,422 8,528,184 Unrealised gain on investments in marketable securities available for sales Beginning balance 41,144 - 41,144 - Increase (Decrease) during the period 4,086 48,155 4,086 48,155 Ending balance 45,230 48,155 45,230 48,155 Retained earnings Appropriated retained earnings Legal reserve Beginning balance 235,041 102,643 235,041 102,643 Increase (Decrease) during the period - - - - Ending balance 235,041 102,643 235,041 102,643 Unappropriated retained earnings Beginning balance - as previously reported 2,686,041 1,574,164 2,686,041 1,574,164 - adjustment resulting from change in accounting policy with respect to the write- offs of deferred pre-operating expenses and other deferred expenses 2(a) - (716,531) - (716,531) - as restated 2,686,041 857,633 2,686,041 857,633 Less: Appropriation for directors' bonus - (12,350) - (12,350) Net profit for the period - as previously reported 1,004,111 713,702 1,004,111 713,702 - adjustment resulting from change in accounting policy with respect to - write-off deferred pre-operating expenses and other deferred expenses 2(a) - 27,551 - 27,551 - major repair and maintenance expenses 2(b) - (23,071) - (23,071) - as restated 1,004,111 718,182 1,004,111 718,182 Ending balance 3,690,152 1,563,465 3,690,152 1,563,465 The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Statements of Changes in Shareholders' Equity (continued) For the Mthree-month periods ended 31 March 2000 and 1999 Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Minority interest Beginning balance 56,470 49,412 - - Increase (Decrease) during the period (1,624) (848) - - Ending balance 54,846 48,564 - - Total shareholders' equity 17,825,402 15,519,103 17,770,556 15,470,539 The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Statements of Cash Flows For the Mthree-month periods ended 31 March 2000 and 1999 Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Cash flows from operating activities Net Profit 1,004,111 718,182 1,004,111 718,182 Adjustments to reconcile net income to net cash: Depreciation 422,236 406,732 14,876 3,416 Unrealised exchange losses 35,129 235,120 - - Gains from disposal of marketable securities - (46,651) - (46,651) Provision for doubtful accounts 6,641 - - - Dividends received from other companies (2,426) - (2,426) - Shares of profit (loss) from subsidiaries and associates (7,240) 20,961 (1,108,745) (604,047) Minority interest (1,624) (848) - - Others 1,555 - - - Cash flows before changes in working capital 1,458,382 1,333,496 (92,184) 70,900 Changes in working capital : Deposits at banks and financial institutions used as collateral (1,136,650) (1,132,609) - - Trade accounts receivable 557,068 (261,765) - - Amounts due from related companies 2,634 (603) 5,352 (10,371) Spare parts and supplies (224,531) (36,147) - - Other current assets 1,446 (42,895) 14,086 (10,503) Other assets (867) 23 318 533 Trade accounts payable (58,606) (92,477) - - Amounts due to related companies (11,723) (828) 6,046 - Other current liabilities 752,631 555,802 57,262 (57,741) Other liabilities (4,916) - - - Net cash receipts (payments) from operating activities 1,334,868 321,997 (9,120) (7,182) Cash flows from investing activities Net purchases of property, plant and equipment (132,303) (79,850) 8,317 (37,884) Investment in subsidiaries (48,300) (164,890) (48,300) (100,000) Investments in marketable securities (92,055) 113,687 (92,055) 113,687 Dividends received from associates 9,500 - - - Dividends received from other companies 2,426 - 2,426 - Net cash payments from investing activities (260,732) (131,053) (129,612) (24,197) The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Statements of Cash Flows (continued) For the three-month periods ended 31 March 2000 and 1999 Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Cash flows from financing activities Additional paid-up share capital of subsidiaries - 8,100 - 3,000 Receipt from long-term borrowings 10,000 - - - Net cash receipts from financing activities 10,000 8,100 - 3,000 Net increase (decrease) in cash and cash equivalents 1,084,136 199,044 (138,732) (28,379) Cash and cash equivalents, beginning balance 8,340,517 2,462,001 7,534,950 2,141,726 Cash and cash equivalents, ending balance 9,424,653 2,661,045 7,396,218 2,113,347 Cash and cash equivalents are made up as follow : Cash in hand and at banks 1,628,591 837,373 1,588,779 755,689 Short-term investments 7,796,062 1,823,672 5,807,439 1,357,658 9,424,653 2,661,045 7,396,218 2,113,347 Supplementary information for cash flows : Interest paid 21,116 72,729 - - Tax paid - 9,748 - 9,748 The notes to the consolidated and company interim financial statements on pages 10 to 19 are an integral part of these interim financial statements. Electricity Generating Public Company Limited Unaudited Notes to the Consolidated and Company Interim Financial Statements For the three-month periods ended 31 March 2000 and 1999 1 Accounting policies The interim consolidated and company financial statements are prepared in accordance with the accounting principles generally accepted in Thailand. However, the primary statements (i.e. balance sheets, statements of income, changes in shareholders' equity and cash flows) are presented in the full format as prescribed by the Ministerial Regulation No. 7 (B.E. 2539) in accordance with the Securities and Exchange Commision's and the Stock Exchange of Thailand's requirements, rather than in the condensed format as required by Thai Accounting Standard No. 41, "Interim Financial Reporting". The accounting policies used in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year (more)