FINANCIAL STATEMENTS SECOND QUARTER 2000

AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders and the Board of Directors of Electricity Generating Public Company Limited I have reviewed the accompanying consolidated and company balance sheets of Electricity Generating Public Company Limited as at 30 June 2000, the related consolidated and company statements of income for the three-month and six-month periods ended 30 June 2000 and 1999, and the related consolidated and company statements of changes in shareholders' equity and cash flows for the six-month periods ended 30 June 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 standard of auditing 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 policy in (a) retrospectively by adjusting to the opening retained earnings as at 1 January 1999. The comparative statements of income for the three-month and six-month periods ended 30 June 1999 and the comparative statements of changes in shareholders' equity and cash flows for the six-month period ended 30 June 1999 have been restated accordingly for the changes in both (a) and (b). 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 24 July 2000 Consolidated Company Unaudited Audited Unaudited Audited 30 June 31 December 30 June 31 December Notes 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 ASSETS Current Assets Cash on hand and at banks 15 (a) 2,452,716 1,680,603 2,354,771 1,413,456 Short-term investments - Deposits at banks and financial institutions 4,661,606 6,662,914 4,331,513 6,121,494 - Marketable securities 13 418,641 95,478 492,456 171,631 Short-term investments used as collateral 4,8,9 - Deposits at banks and financial institutions 5,499,424 5,932,414 - - - Marketable securities 442,038 - - - Trade accounts receivable, net 13 1,798,880 1,448,837 - - Amounts due from related companies 13 26,767 19,312 2,378 13,679 Spare parts and supplies, net 2,211,255 1,883,303 - - Other current assets - Interest receivable 102,395 111,539 30,449 50,648 - Others 271,753 222,654 93,529 102,731 Total Current Assets 17,885,475 18,057,054 7,305,096 7,873,639 Non-Current Assets Long-term investments - Deposits at financial institutions 49,752 48,312 - - Long-term investments used as collateral 4,8 - Deposits at financial institutions 2,300,579 3,740,991 - - - Marketable securities 1,462,660 - - - Loans and advance to related companies 13 32,490 32,490 25,200 75,200 Investments in subsidiaries, joint venture, and associates 5 474,841 480,850 13,845,433 12,788,857 Other long-term investments 5 475,293 227,981 475,293 227,981 Property, plant, and equipment, net 6 28,417,235 27,271,455 967,500 998,016 Goodwill 11 (a) 410,719 - - - Other assets 7 443,073 38,956 27,113 19,972 Total Non-Current Assets 34,066,642 31,841,035 15,340,539 14,110,026 Total Assets 51,952,117 49,898,089 22,645,635 21,983,665 Director Consolidated Company Unaudited Audited Unaudited Audited 30 June 31 December 30 June 31 December Notes 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Bank overdraft and short-term loans from financial institution 172,432 - - - Trade accounts payable 110,370 169,715 - - Current portion of long-term loans and debentures 8,9 2,610,284 1,838,636 542,650 - Amounts due to related companies 13 1,688 - 1,321 4,720 Other current liabilities - Interest payable 253,180 220,141 78,630 78,904 - Value added tax payable 152,222 122,124 - - - Dividend payable 108,658 57,682 108,658 57,682 - Others 217,540 182,408 15,395 79,999 Total Current Liabilities 3,626,374 2,590,706 746,654 221,305 Non-Current Liabilities Long-term loans 8 17,959,872 17,018,735 - - Debentures 9 12,799,626 13,469,818 4,457,350 5,000,000 Total Non-Current Liabilities 30,759,498 30,488,553 4,457,350 5,000,000 Total Liabilities 34,385,872 33,079,259 5,204,004 5,221,305 Shareholders' Equity Share capital 10 Authorised share capital 5,300,000 5,300,000 5,300,000 5,300,000 Issued and paid-up share capital 5,243,971 5,242,711 5,243,971 5,242,711 Premium on share capital 10 8,559,942 8,557,422 8,559,942 8,557,422 Unrealised gains on investments in marketable securities - available for sale 65,445 41,144 65,445 41,144 Retained earnings Appropriated Legal reserve 235,041 235,041 235,041 235,041 Unappropriated 3,337,232 2,686,042 3,337,232 2,686,042 Minority Interest 124,614 56,470 - - Total Shareholders' Equity 17,566,245 16,818,830 17,441,631 16,762,360 Total Liabilities and Shareholders' Equity 51,952,117 49,898,089 22,645,635 21,983,665 three-month period Consolidated Company Notes 30 June 30 June 30 June 30 June 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Revenues 13 Sales 2,285,061 2,120,071 - - Service income 18,948 35,481 - - Other income - Interest income 197,778 178,376 62,348 37,227 - Others 51,640 14,918 11,482 19,555 Total revenues 2,553,427 2,348,846 73,830 56,782 Expenses 13 Cost of sales 638,190 560,834 - - Cost of services 13,675 32,925 - - Administrative expenses 116,346 105,241 63,601 46,843 Interest expenses 786,741 731,014 100,000 - Currency exchange losses (gains) 271,223 (195,992) (3,501) - Directors' remuneration 2,864 4,752 1,838 1,708 Total expenses 1,829,039 1,238,774 161,938 48,551 Operating profit (loss) 724,388 1,110,072 (88,108) 8,231 Share of profit (loss) of subsidiaries and associates (13,249) 23,301 800,419 1,126,824 Profit before tax 711,139 1,133,373 712,311 1,135,055 Income tax - 1,784 - 1,784 Profit before minority interest 711,139 1,131,589 712,311 1,133,271 Loss attributable to minorities (1,172) (1,682) - - Net profit for the period 712,311 1,133,271 712,311 1,133,271 Basic earnings per share (Baht) 3 Profit before minority interest 1.36 2.16 1.36 2.16 Loss attributable to minorities - - - - Net profit for the period 1.36 2.16 1.36 2.16 Diluted earnings per share (Baht) 3 Profit before minority interest 1.34 2.14 1.34 2.14 Loss attributable to minorities - - - - Net profit for the period 1.34 2.14 1.34 2.14 six-month period Consolidated Company 30 June 30 June 30 June 30 June Notes 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Revenues 13 Sales 4,632,482 4,272,805 - - Service income 45,920 53,948 - - Other income - Interest income 379,791 353,626 122,345 72,474 - Others 57,396 160,955 17,761 153,469 Total revenues 5,115,589 4,841,334 140,106 225,943 Expenses 13 Cost of sales 1,244,178 1,230,596 - - Cost of services 33,051 48,382 - - Administrative expenses 248,360 186,183 132,859 88,432 Interest expenses 1,556,401 1,474,427 199,726 - Currency exchange losses (gains) 306,130 32,886 (3,501) - Directors' remuneration 7,834 8,556 3,764 3,207 Total expenses 3,395,954 2,981,030 332,848 91,639 Operating profit (loss) 1,719,635 1,860,304 (192,742) 134,304 Share of profit (loss) of subsidiaries and associates (6,008) 2,340 1,909,164 1,730,871 Profit before tax 1,713,627 1,862,644 1,716,422 1,865,175 Income tax - 13,723 - 13,723 Profit before minority interest 1,713,627 1,848,921 1,716,422 1,851,452 Loss attributable to minorities (2,795) (2,531) - - Net profit for the period 1,716,422 1,851,452 1,716,422 1,851,452 Basic earnings per share (Baht) 3 Profit before minority interest 3.27 3.53 3.27 3.54 Loss attributable to minorities - (0.01) - - Net profit for the period 3.27 3.54 3.27 3.54 Diluted earnings per share (Baht) 3 Profit before minority interest 3.23 3.49 3.24 3.50 Loss attributable to minorities (0.01) (0.01) - - Net profit for the period 3.24 3.50 3.24 3.50 Consolidated Company 30 June 30 June 30 June 30 June Notes 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Share capital 10 Beginning balance 5,242,711 5,227,092 5,242,711 5,227,092 Increase during the period 1,260 15,619 1,260 15,619 Ending balance 5,243,971 5,242,711 5,243,971 5,242,711 Premium on share capital 10 Beginning balance 8,557,422 8,526,184 8,557,422 8,526,184 Increase during the period 2,520 31,238 2,520 31,238 Ending balance 8,559,942 8,557,422 8,559,942 8,557,422 Unrealised gains on investments in marketable securities available for sale Beginning balance 41,144 - 41,144 - Increase during the period 24,301 65,778 24,301 65,778 Ending balane 65,445 65,778 65,445 65,778 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 the change in accounting policy with respect to the write-offs of deferred pre-operating expenses and other deferred expenses 2(a) - (716,530) - (716,530) - as restated 2,686,041 857,634 2,686,041 857,634 Less: Dividend 14 (1,048,542) (663,968) (1,048,542) (663,968) Less: Appropriation for directors' bonus (16,689) (21,804) (16,689) (21,804) Net profit for the period - as previously reported 1,716,422 1,745,534 1,716,422 1,745,534 - adjustment resulting from the changes in accounting policies with respect to - write-offs of deferred pre-operating expenses and other deferred expenses 2(a) - 55,396 - 55,396 - reversal of accrued major repair and maintenance expenses 2(b) - 50,522 - 50,522 - as restated 1,716,422 1,851,452 1,716,422 1,851,452 Ending balance 3,337,232 2,023,314 3,337,232 2,023,314 Consolidated Company 30 June 30 June 30 June 30 June Notes 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Minority interest - Subsidiaries Beginning balance 56,470 49,412 - - Decrease during the period (2,795) (2,531) - - Ending balance 53,675 46,881 - Joint venture 11(a) Beginning balance - - - - Increase during the period 70,939 - - - Ending balance 70,939 - - - Total minority interest 124,614 46,881 - - Total shareholders' equity 17,566,245 16,038,749 17,441,631 15,991,868 Consolidated Company 30 June 30 June 30 June 30 June 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Cash flows from operating activities Net Profit for the period 1,716,422 1,851,452 1,716,422 1,851,452 Adjustments to reconcile net income to net cash provided by operations : - Depreciation and amortisation 846,245 822,310 31,318 10,755 - Unrealised currency exchange losses (gains) 319,626 40,954 (3,501) - - Gains on disposal of marketable securities (212) (49,900) (212) (49,900) - Reversed provision for doubtful accounts (40,222) - - - - Dividends received from other companies (9,994) (90,113) (9,994) (90,113) - Share of (profit) loss of subsidiaries and associates 6,008 (2,340) (1,909,164) (1,730,871) - Minority interest (2,795) (2,531) - - Cash flows before changes in operating assets and liabilities 2,835,078 2,569,832 (175,131) (8,677) Changes in operating assets and liabilities: (excluding the effects of acquisition) - Investments used as collateral 356,871 (10,033) - - - Trade accounts receivable (217,819) (206,021) - - - Amounts due from related companies 4,365 - 11,301 - - Spare parts and supplies (327,953) (144,042) - - - Other current assets (25,164) (8,796) 29,401 2,485 - Other assets 7,611 2,012 (3,659) 2,513 - Trade accounts payable (90,632) (124,302) - - - Amounts due to related companies (35,706) - (3,400) - - Other current liabilities 45,841 (102,190) (21,874) (30,867) Net cash receipts from (payments in) operating activities 2,552,492 1,976,460 (163,362) (34,546) Cash flows from investing activities Acquisition of joint venture, net of cash acquired (1,043,883) - (1,050,000) - Investments in subsidiaries and associates (156,975) (112,367) (207,088) (100,000) Long-term investments in others (248,021) (30,000) (247,376) - Net purchases of property, plant and equipment (218,288) (231,481) (783) (171,547) Investments in marketable securities (299,436) 132,490 (299,436) 132,490 Investments in marketable securities - held to maturity used as collateral (50,007) - - - Loans repaid from (made to) related companies 13,357 (34,461) - (31,600) Dividends received from subsidiaries - - 2,154,147 1,057,506 Dividends received from associates and other companies 19,494 90,113 9,994 90,113 (more)