NANCIAL STATEMENTS FOR THIRD QUARTER

- Other current assets (40,828) 35,271 45,571 8,619 - Other assets (5,464) (25,174) (6,224) 2,384 - Trade accounts payable 31,060 (119,707) - - - Amounts due to related companies (29,112) (4,093) (4,721) - - Other current liabilities 694,230 512,500 79,676 (65,355) Net cash receipts from (payments in) operating activities 3,114,303 1,825,581 (196,359) (90,986) Cash flows from investing activities Acquisition of joint venture, net of cash acquired (1,526,972) - (2,102,467) - Investments in subsidiaries and associates (200,700) - (247,049) (241,500) Long-term investments in others (1,884,648) (330,001) (1,872,660) (300,000) Net purchases of property, plant and equipment (326,662) (276,600) (2,300) (186,403) Investments in marketable securities 3,115 133,408 3,115 133,408 Investments in marketable securities - held to maturity used as collateral (50,007) - - - Loans to related companies 3,759 - - - 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 Net cash receipts from (payments in) investing activities (3,962,621) (383,080) (2,057,220) 553,124 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 financing activities Issue of ordinary shares 3,780 46,857 3,780 46,857 Issue of ordinary shares of subsidiaries, associates and joint venture 58,000 103,500 - - Repayment of short-term loans (86) - - - Repayment of long-term loans and debentures (911,061) (730,505) - - Payment of dividend (1,048,680) (620,803) (1,048,542) (620,803) Net cash payments in financing activities (1,898,047) (1,200,951) (1,044,762) (573,946) Net increase (decrease) in cash and cash equivalents (2,746,365) 241,550 (3,298,341) (111,808) Cash and cash equivalents, beginning balance 8,343,517 2,462,000 7,534,950 2,141,726 Cash and cash equivalents, ending balance 5,597,152 2,703,550 4,236,609 2,029,918 Cash and cash equivalents are made up as follows : Cash on hand and at banks 2,128,989 604,763 1,411,080 441,188 Short-term investments 3,468,163 2,098,787 2,825,529 1,588,730 5,597,152 2,703,550 4,236,609 2,029,918 Supplementary information for cash flows : Interest paid 1,538,115 1,449,053 200,000 - Tax paid 1,158 22,900 - 22,900 1 Accounting policies The interim consolidated and company financial statements are prepared in accordance with the accounting principles generally accepted in Thailand, and are presented in the condensed format as required by Thai Accounting Standard No. 41, "Interim Financial Reporting" with additional disclosures, in case of the primary financial statements (i.e. balance sheets, statements of income (loss), changes in shareholders' equity, and cash flows), based on the format prescribed by the Ministerial Regulation No. 7 (B.E. 2539) in accordance with the requirements of the Securities and Exchange Commission and the Stock Exchange of Thailand. 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 ended 31 December 1999 with the following additional policies. The Group has implemented the following new Thai Accounting Standards (TAS), effective on 1 January 2000, in these interim financial statements: TAS 41 - Interim Financial Reporting TAS 44 - Consolidated Financial Statements and Accounting for Investment in Subsidiaries TAS 45 - Accounting for Investment in Associates TAS 46 - Financial Reporting for Interest in Joint Venture TAS 47 - Related Party Disclosures The comparatives have been adjusted or extended to take into account the requirements of those newly effective standards. Goodwill represents the excess of the cost of acquisitions over the fair value of the Group's share of the net assets of acquired subsidiary undertaking and a joint venture at the date of acquisition. Goodwill on acquisition is reported in the consolidated balance sheets as goodwill. Goodwill arising on acquisitions of the Group is amortised using the straight line method over the periods of 16-20 years. Costs that are incurred unevenly during the financial year are anticipated or deferred in the interim report only if it would be also appropriate to recognise or defer such costs at the end of the financial year. Accounting policies of a joint venture - Conal Holdings Corporation (Conal) The power plants of the three subsidiaries of Conal are initially recorded at cost and are stated at historical cost less depreciation. Depreciation is calculated on the units of production method based on estimates. Whenever actual production of the two subsidiaries falls below a specified level, depreciation charged to operations shall be the base depreciation amount. The base depreciation amount is computed based on the straight line method over the estimated useful life of the power plants of 35 years. These interim financial statements should be read in conjunction with the 1999 annual financial statements 2 Changes in accounting policies (a) In the fourth quarter of 1999, in accordance with the Interpretation number 4 of the Institute of the Certified Accountants and Auditors of Thailand, dated 20 January 2000, the Group reviewed its accounting policy in respect of capitalisation of deferred pre-operating expenses and other deferred expenses. As a result of this review, the Group has changed its accounting policy to expense as incurred. (b) Commencing on 1 January 2000, 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. Prior to this, major repair and maintenance expenses were included in the interim financial statements based on the annual budget of major repair and maintenance, and this was in accordance with the regulation dated 3 February 1998 issued by the Stock Exchange of Thailand. The Group, therefore, accounted for the changes in accounting policy in 2(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 2(a) and 2(b). The above retrospective adjustments effect to the net profit (loss) and earnings (loss) per share included in the consolidated and company financial statements for the three-month and nine-month periods ended 30 September 1999 are as follows: 30 September 1999 Three-month Nine-month period period Baht'000 Baht'000 (a) write-offs of deferred pre-operating expenses and other deferred expenses (136,102) (80,707) (b) major repair and maintenance expenses (67,013) (16,490) Net profit (loss) increase (203,115) (97,197) Basic earnings (loss) per share increase (Baht) (0.39) (0.19) Diluted earnings (loss) per share increase (Baht) (0.38) (0.18) 3 Earnings (loss) per share Basic earnings (loss) per share is calculated by dividing the net profit (loss) attributable to shareholders by the weighted average number of ordinary shares in issue during the period (2000: 524,355,100 shares and 1999: 523,761,578 shares). For the diluted earnings (loss) per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The company has provided share warrants to the employees of the Group under the Employee Stock Ownership Plan (ESOP). 4 Investments used as collateral As at 30 September 2000, the reserves of the two subsidiaries of the company, Rayaong Electricity Generating Company Limited and Khanom Electricity Generating Company limtied, are for the purposes of repayment of loan principal and interest due within one year, amounted to Baht 4,946 million (31 December 1999: Baht 3,327 million). The remaining balances mainly represent Holding accounts of both subsidiaries and Borrower's accounts of KEGCO, totalling Baht 2,474 million as at 30 September 2000 (31 December 1999: Baht 2,570 million), which must be maintained in accordance with the loan agreements of the two subsidiaries. Investments are made up of deposits at banks, financial institutions and marketable securities. The movements in short-term and long-term investments in marketable securities can be analysed as follows: Investments in marketable securities Consolidated 30 September For the nine-month period ended 2000 Short-term Long-term Baht'000 Baht'000 ? Held to maturity, at cost - beginning balance as at 1 January 2000 - 250,000 - addition during the period - 50,007 - classification to current portion of long-term investments used as collateral - (27,132) - ending balance - 272,875 ? Available for sale - beginning balance as at 1 January 2000 - - - transfer from deposits at banks and financial institutions to investments in marketable securities 441,473 1,410,873 - additions during the period 1,090,650 1,740,021 - disposals during the period (818,194) (1,608,131) - unrealised exchange gains 7,918 17,372 - unrealised gains on investments in marketable securities 1,864 4,015 - at fair value 723,711 1,564,150 Total investments in marketable securities used as collateral 723,711 1,837,025 Gains or losses on revaluation of investments which are classified as available for sale are charged to shareholders' equity and recognised as income or expenses in the statements of income (loss) when such investments are sold. 5 Investments in subsidiaries, joint ventures, associates, and other long-term investments Consolidated Company 30 September 31 December 30 September 31 December 2000 1999 2000 1999 (Restated) (Restated) Baht'000 Baht'000 Baht'000 Baht'000 Investments in subsidiaries - - 12,925,652 12,788,857 Investments in joint ventures - - 2,006,182 - Investments in associates 393,726 480,850 - - 393,726 480,850 14,931,834 12,788,857 Other long-term investments 2,182,124 227,981 2,182,124 227,981 Total investments 2,575,850 708,831 17,113,958 13,016,838 5 Investments in subsidiaries, joint ventures, associates, and other long-term investments (continued) The principal subsidiaries, which are all incorporated in Thailand, are as follows: Company 30 31 September December 2000 1999 Ownership Cost Equity Cost Equity interest method method method method Business (%) Baht'000 Baht'000 Baht'000 Baht'000 Rayong Electricity Generating Electricity generating 99.99 4,700,000 6,150,043 4,700,000 6,518,272 Co., Ltd. Khanom Electricity Generating Electricity generating 99.99 4,850,000 5,804,871 4,850,000 5,547,372 Co., Ltd. EGCO Engineering and Services Power plant 99.99 310,000 267,061 210,000 80,692 Co., Ltd. and its subsidiary maintenance services and associates - Subsidiary - AGRO Energy Co., Ltd. Trading / delivery services of natural scrap - Associates - Amata Power-Esco Service Power plant operation Co., Ltd. - ESCO Wood Co., Ltd. Power plant equipment maintenance EGCO Joint Venture and Investing in power 99.99 447,720 424,322 447,720 510,444 Development Co., Ltd. and its energy projects associate - Amata-Egco Power Electricity generating Co., Ltd. EGCO Mining Co., Ltd. Mining and other 70.00 124,800 8,987 124,800 15,975 energy Egcom Tara Co., Ltd. Tap water business 70.00 289,800 270,294 241,500 116,102 EGCO Green Energy Co., Ltd. Investing in biomass 74.00 74 74 - - fueled electric generating plant 11,724,861 12,925,652 10,574,020 12,788,857 5 Investments in subsidiaries, joint ventures, associates, and other long-term investments (continued) The principal joint ventures, which is incorporated in Thailand, except Conal Holdings Corporation which is incorporated in Philippines, are as follows: Company 30 31 September December 2000 1999 Ownership Cost Equity Cost Equity interest method method method method Business (%) Baht'000 Baht'000 Baht'000 Baht'000 Gulf Electric Public Co., Ltd. (Gulf) Electricity generating 50.00 1,100,000 1,007,026 - - Conal Holdings Corporation (Conal) Investing in power energy business 40.00 1,002,467 999,156 - - 2,102,467 2,006,182 - - The financial statements of Gulf and Conal have been reviewed by its auditors. The principal associates, which are all incorporated in Thailand, are as follows: Consolidated as at 30 September 2000 Business Paid-up Portion of Cost method Equity method Dividend share capital Investment Baht'000 Baht'000 Baht'000 Baht'000 (%) Amata Power-Esco Power plant operation 2,000 50.00 1,000 1,522 - Service Co., Ltd. AGRO Energy Co., Ltd. Trading / delivery 500 99.99 500 500 - services of natural scrap Amata-Egco Power - Co., Ltd. Electricity generating 1,350,000 29.70 400,950 391,704 402,450 393,726 Consolidated as at 31 December 1999 Business Paid-up Portion of Cost method Equity method Dividend share capital Investment Baht'000 Baht'000 Baht'000 Baht'000 (%) AGRO Energy Co., Ltd. Trading / delivery 500 99.99 500 500 - services of natural scrap Amata Power-Esco Power plant operation 2,000 50.00 1,000 2,546 - Service Co., Ltd. ESCO Wood Power plant equipment 20,000 45.00 9,000 - - Co., Ltd. maintenance Amata-Egco Power Electricity generating 1,350,000 29.70 400,950 477,804 - Co., Ltd. 411,450 480,850 The investment in AGRO Energy Company Limited was accounted for under the equity method but not consolidated in the consolidated financial statements as at 31 December 1999 and 30 September 2000 because this subsidiary had not commenced its trading operation and its financial statements were immaterial to the Group. 5 Investments in subsidiaries, joint ventures, associates, and other long-term investments (continued) Other long-term investments comprise: as at 30 September 2000 Consolidated Company Available for sale Other investments Available for sale Other investments Baht'000 Baht'000 Baht'000 Baht'000 Marketable securities 1,877,217 - 1,877,217 - Others - 37,800 - 37,800 Add: Adjustment for changes in fair value 7,569 - 7,569 - 1,884,786 37,800 1,884,786 37,800 Advance payment in Nam Theun project 259,538 259,538 Total other long-term investments 2,182,124 2,182,124 as at 31 December 1999 Consolidated Company Available for sale Other investments Available for sale Other investments Baht'000 Baht'000 Baht'000 Baht'000 Marketable securities 189,189 - 189,189 - Others - 37,800 - 37,800 Add: Adjustment for changes in fair value 992 - 992 - 190,181 37,800 190,181 37,800 Total other long-term investments 227,981 227,981 6 Capital expenditures and commitments (more)