FINANCIAL STATEMENTS FOR THIRD QUARTER

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 September 2000, the related consolidated and company statements of income (loss) for the three-month and nine-month periods ended 30 September 2000 and 1999, and the related consolidated and company statements of changes in shareholders' equity and cash flows for the nine-month periods ended 30 September 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 respects, 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 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 (loss) for the three-month and nine-month periods ended 30 September 1999 and the comparative statements of changes in shareholders' equity and cash flows for the nine-month period ended 30 September 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 10 November 2000 Consolidated Company Unaudited Audited Unaudited Audited Notes 30 September 31 December 30 September 31 December 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 ASSETS Current Assets Cash on hand and at banks 15 (a) 2,128,989 1,680,603 1,411,080 1,413,456 Short-term investments - Deposits at banks and financial institutions 3,468,163 6,662,914 2,825,529 6,121,494 - Marketable securities 13 69,392 95,478 143,207 171,631 Short-term investments used as collateral 4,8,9 - Deposits at banks and financial institutions 6,796,662 5,932,414 - - - Marketable securities 723,711 - - - Trade accounts receivable, net 13 2,059,792 1,448,837 - - Amounts due from related companies 62,784 19,312 7,682 13,679 Spare parts and supplies, net 2,350,636 1,883,303 - - Other current assets - Interest receivable 124,953 111,539 15,264 50,648 - Others 273,713 222,654 92,545 102,731 Total Current Assets 18,058,795 18,057,054 4,495,307 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 2,509,823 3,740,991 - - - Marketable securities 1,614,157 - - - Loans to related companies 13 32,490 32,490 25,200 75,200 Long-term loans to other company 9,750 - - - Investments in subsidiaries, joint ventures, and associates 5 393,726 480,850 14,931,834 12,788,857 Other long-term investments 5 2,182,124 227,981 2,182,124 227,981 Property, plant, and equipment, net 6 30,826,091 27,271,455 953,324 998,016 Goodwill 11 (a), (b) 796,728 - - - Other assets 7 470,964 38,956 26,166 19,972 Total Non-Current Assets 38,885,605 31,841,035 18,118,648 14,110,026 Total Assets 56,944,400 49,898,089 22,613,955 21,983,665 Director Consolidated Company Unaudited Audited Unaudited Audited Notes 30 September 31 December 30 September 31 December 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Bank overdrafts and short-term loans from financial institutions 172,347 - - - Trade accounts payable 272,722 169,715 - - Current portion of long-term loans and debentures 8,9 3,100,507 1,838,636 542,650 - Amounts due to related companies 2,225 - - 4,720 Other current liabilities - Interest payable 983,926 220,141 178,630 78,904 - Value added tax payable 93,016 122,124 - - - Dividend payable 303,743 57,682 107,513 57,682 - Others 312,821 182,408 18,091 79,999 Total Current Liabilities 5,241,307 2,590,706 846,884 221,305 Non-Current Liabilities Long-term loans 8 21,089,740 17,018,735 - - Debentures 9 12,799,626 13,469,818 4,457,350 5,000,000 Other liabilities 6,257 - - - Total Non-Current Liabilities 33,895,623 30,488,553 4,457,350 5,000,000 Total Liabilities 39,136,930 33,079,259 5,304,234 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 103,081 41,144 103,081 41,144 Retained earnings Appropriated Legal reserve 235,041 235,041 235,041 235,041 Unappropriated 3,167,686 2,686,042 3,167,686 2,686,042 Translation adjustments (81,505) - - - Minority interest 579,254 56,470 - - Total Shareholders' Equity 17,807,470 16,818,830 17,309,721 16,762,360 Total Liabilities and Shareholders' Equity 56,944,400 49,898,089 22,613,955 21,983,665 Consolidated Company Notes 30 September 30 September 30 September 30 September 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Revenues 13 Sales 2,514,713 2,182,356 - - Service income 59,478 14,728 - - Other income - Interest income 138,154 162,664 22,342 24,266 - Others 45,329 25,977 3,687 24,015 Total revenues 2,757,674 2,385,725 26,029 48,281 Expenses 13 Cost of sales 982,117 712,958 - - Cost of services 46,704 16,505 - - Administrative expenses 173,483 334,419 85,066 59,815 Interest expenses 856,563 752,998 100,000 - Currency exchange losses 788,535 968,900 3,501 - Directors' remuneration 1,790 4,955 1,790 1,910 Total expenses 2,849,192 2,790,735 190,357 61,725 Operating loss (91,518) (405,010) (164,328) (13,444) Share of loss of subsidiaries, joint venture and associates (81,115) (82,836) (8,720) (419,751) Loss before tax (172,633) (487,846) (173,048) (433,195) Income tax 3,024 - - - Loss before minority interest (175,657) (487,846) (173,048) (433,195) Loss attributable to minorities (2,609) (54,651) - - Net loss for the period (173,048) (433,195) (173,048) (433,195) Basic loss per share (Baht) 3 Loss before minority interest (0.33) (0.93) (0.33) (0.83) Loss attributable to minorities - (0.10) - - Net loss for the period (0.33) (0.83) (0.33) (0.83) Diluted loss per share (Baht) 3 Loss before minority interest (0.33) (0.92) (0.33) (0.82) Loss attributable to minorities - (0.10) - - Net loss for the period (0.33) (0.82) (0.33) (0.82) Consolidated Company Notes 30 September 30 September 30 September 30 September 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Revenues 13 Sales 7,147,195 6,455,161 - - Service income 77,203 68,676 - - Other income - Interest income 517,945 507,763 144,687 96,740 - Others 102,725 186,958 21,448 177,484 Total revenues 7,845,068 7,218,558 166,135 274,224 Expenses 13 Cost of sales 2,226,295 1,929,735 - - Cost of services 54,803 64,887 - - Administrative expenses 418,342 534,422 214,423 148,247 Interest expenses 2,412,964 2,218,897 299,726 - Currency exchange losses 1,094,665 1,001,812 - - Directors' remuneration 9,623 13,511 5,554 5,117 Total expenses 6,216,692 5,763,264 519,703 153,364 Operating profit (loss) 1,628,376 1,455,294 (353,568) 120,860 Share of profit (loss) of subsidiaries, joint venture and associates (87,124) (80,496) 1,900,444 1,311,120 Profit before tax 1,541,252 1,374,798 1,546,876 1,431,980 Income tax 3,024 13,723 - 13,723 Profit before minority interest 1,538,228 1,361,075 1,546,876 1,418,257 Loss attributable to minorities (8,648) (57,182) - - Net profit for the period 1,546,876 1,418,257 1,546,876 1,418,257 Basic earnings per share (Baht) 3 Profit before minority interest 2.93 2.60 2.95 2.71 Loss attributable to minorities (0.02) (0.11) - - Net profit for the period 2.95 2.71 2.95 2.71 Diluted earnings per share (Baht) 3 Profit before minority interest 2.90 2.57 2.92 2.68 Loss attributable to minorities (0.02) (0.11) - - Net profit for the period 2.92 2.68 2.92 2.68 Consolidated Company Notes 30 September 30 September 30 September 30 September 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 61,937 47,749 61,937 47,749 Ending balance 103,081 47,749 103,081 47,749 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 Consolidated Company Notes 30 September 30 September 30 September 30 September 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Retained earnings (continued) 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) 1,620,810 171,862 1,620,810 171,862 Net profit for the period - as previously reported 1,546,876 1,515,454 1,546,876 1,515,454 - adjustment resulting from the changes in accounting policies with respect to - write-offs of deferred pre- operating expenses and other deferred expenses 2(a) - (80,707) - (80,707) - major repair and maintenance expenses 2(b) - (16,490) - (16,490) - as restated 1,546,876 1,418,257 1,546,876 1,418,257 Ending balance 3,167,686 1,590,119 3,167,686 1,590,119 Translation adjustments (81,505) - - - Minority interest - Subsidiaries Beginning balance 56,470 49,412 - - Increase (decrease) during the period (4,465) 45,932 - - Ending balance 52,005 95,344 - Joint ventures 11(a), (b) Beginning balance - - - - Acquire during the period 527,249 - - - Ending balance 527,249 - - - Total minority interest 579,254 95,344 - - Total shareholders' equity 17,807,470 15,635,988 17,309,721 15,540,644 Consolidated Company 30 September 30 September 30 September 30 September 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Cash flows from operating activities Net profit for the period 1,546,876 1,418,257 1,546,876 1,418,257 Adjustments to reconcile net profit to net cash provided by operations : - Depreciation and amortisation 1,333,656 1,250,942 51,850 26,306 - Unrealised currency exchange losses (gains) 1,254,361 1,026,493 - - - Gains on disposal of marketable securities (118) (50,819) (118) (50,819) - Reversed provision for doubtful accounts (37,501) - - - - Dividends received from other companies (9,994) (90,113) (9,994) (90,113) - Share of (profit) loss of subsidiaries, joint venture and associates 87,124 80,496 (1,905,272) (1,311,120) - Translation adjustment 10,261 - - - - Minority interest (8,648) (57,182) - - Cash flows before changes in operating assets and liabilities 4,176,017 3,578,074 (316,658) (7,489) Changes in operating assets and liabilities: (excluding the effects of acquisition) - Investments used as collateral (1,110,314) (1,749,906) - - - Trade accounts receivable (214,336) (282,599) - - - Amounts due from related companies (9,541) (32,939) 5,997 (29,145) - Spare parts and supplies (377,409) (85,846) - - (more)