AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders and the Board of Directors of Berli Jucker Public Company Limited: I have reviewed the accompanying consolidated and company balance sheets of Berli Jucker Public Company Limited as at 31 March 2000, and the related consolidated and company statements of income, changes in shareholders' equity, retained earnings and cash flows for the three month period ended 31 March 2000. 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 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 provide 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. The consolidated and company balance sheets as at 31 December 1999 of Berli Jucker Public Company Limited, presented herewith for comparative purpose, are components of consolidated and company financial statements for the year ended 31 December 1999 which were audited by another auditor, whose report dated 23 February 2000 expressed an unqualified opinion thereon. The consolidated and company statements of income, changes in shareholders' equity, retained earnings and cash flows for the three month period ended 31 March 1999, presented herewith for comparative purpose, are components of the consolidated and company interim financial statements for the three month period ended 31 March 1999 which were reviewed by another auditor, whose report dated 12 May 1999 stated that he was not aware of any material modifications that should be made to those statements for them to be in conformity with generally accepted accounting principles. ANOTHAI LEEKITWATTANA Certified Public Accountant (Thailand) No. 3442 PricewaterhouseCoopers ABAS Limited Bangkok 12 May 2000 Berli Jucker Public Company Limited Balance Sheets As at Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Notes Baht'000 Baht'000 Baht'000 Baht'000 ASSETS Current Assets Cash on hand and at banks 291,895 474,078 212,097 373,045 Short-term investments Deposits with financial institutions 521,457 669,456 - - Bills of exchange 1,020,000 800,000 1,000,000 800,000 Others 20 20 20 20 Trade accounts and notes receivable, net 3 2,827,421 2,951,664 1,169,049 1,185,891 Short-term loans and advances to related parties 12 191,350 167,324 1,031,047 966,729 Lease receivable from a related party 12 - - 22,500 31,500 Inventories, net 1,702,779 1,541,810 511,216 433,298 Other current assets Deferred income tax - current 124,084 134,518 101,389 103,722 Accrued income 41,501 30,758 85,594 104,383 Others 208,507 174,928 84,447 62,211 Total Current Assets 6,929,014 6,944,556 4,217,359 4,060,799 Non-Current Assets Investments in related parties 12 65,195 75,186 5,729,575 5,546,718 Long-term investments 220,916 220,916 220,866 220,866 Deferred tax assets - - 128,780 128,592 Property, plant and equipment, net 5 7,054,612 6,963,461 787,233 810,632 Other assets Terminated currency swap receivable 455,430 455,430 455,430 455,430 Others 82,785 64,074 6,300 6,508 Total Non-Current Assets 7,878,938 7,779,067 7,328,184 7,168,746 TOTAL ASSETS 14,807,952 14,723,623 11,545,543 11,229,545 Director Director The notes to the interim consolidated and company financial statements on pages 8 to 22 are an integral part of these interim financial statements. Berli Jucker Public Company Limited Balance Sheets As at Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Notes Baht'000 Baht'000 Baht'000 Baht'000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Bank overdrafts and loans from financial institutions 509,220 372,718 104,637 887 Trade accounts and notes payable 1,586,171 1,556,885 403,873 432,427 Trade accounts payable - related party 12 - - 273,625 179,047 Current portion of long-term borrowings 6 130,145 118,212 - - Short-term loans and advance from related parties 12 17,241 17,263 31,240 22,505 Other current liabilities Accrued expenses 604,744 590,258 206,110 173,778 Others 315,493 480,674 187,318 210,692 Total Current Liabilities 3,163,014 3,136,010 1,206,803 1,019,336 Non-Current Liabilities Loans from directors and employees 4,024 5,582 3,981 5,553 Long-term borrowings 6 2,550,376 2,580,126 1,940,861 1,940,839 Deferred tax liabilities 310,137 294,822 - - Other liabilities Long-term lease deferred income 115,994 117,396 115,994 117,396 Staff retirement benefits 202,961 222,963 81,358 99,818 Others 13,765 13,872 52,352 52,459 Total Non-Current Liabilities 3,197,257 3,234,761 2,194,546 2,216,065 Total Liabilities 6,360,271 6,370,771 3,401,349 3,235,401 Shareholders' Equity Share capital 7 Registered share capital 1,588,125 1,588,125 1,588,125 1,588,125 Issued and paid-up share capital 1,588,125 1,588,125 1,588,125 1,588,125 Paid-in capital 7 Premium on share capital 3,751,380 3,751,380 3,751,380 3,751,380 Donated surplus 36,868 36,868 36,868 36,868 Retained earnings Appropriated Legal reserve 223,534 218,744 158,813 158,813 Reserve for business expansion 87,401 87,401 85,000 85,000 Unappropriated 2,558,859 2,420,412 2,625,981 2,482,744 Translation adjustment of foreign currency financial statements (101,973) (108,786) (101,973) (108,786) Minority interests 303,487 358,708 - - Total Shareholders' Equity 8,447,681 8,352,852 8,144,194 7,994,144 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 14,807,952 14,723,623 11,545,543 11,229,545 The notes to the interim consolidated and company financial statements on pages 8 to 22 are an integral part of these interim financial statements. Berli Jucker Public Company Limited Statements of Income For the three month period ended (Unaudited) Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Notes Baht'000 Baht'000 Baht'000 Baht'000 Revenues Sales 12 2,763,576 2,738,772 1,167,696 1,401,079 Other operating income Interest income 19,044 23,452 27,940 39,741 Gain on foreign exchange 2,931 2,863 753 344 Others 92,720 10,431 34,275 49,791 Total revenues 2,878,271 2,775,518 1,230,664 1,490,955 Expenses Cost of sales 2,145,833 1,973,116 918,607 1,090,286 Selling and Administrative expenses 459,964 440,973 219,822 256,988 Interest expenses 56,511 68,635 36,574 43,343 Directors' remuneration 946 1,094 946 944 Other operating expenses Currency swap cost 33,947 32,910 33,947 32,239 Other financing expense (income) 3,802 (10,348) 3,802 (10,348) Total expenses 2,701,003 2,506,380 1,213,698 1,413,452 Operating profit 177,268 269,138 16,966 77,503 Share of profit/(loss) of subsidiaries and associates (9,992) 4,135 128,690 123,674 Profit before tax 167,276 273,273 145,656 201,177 Income tax (47,692) (78,969) (2,419) (12,099) Profit before minority interests 119,584 194,304 143,237 189,078 Profit attributable to minorities 23,653 (5,226) - - Net profit for the period 143,237 189,078 143,237 189,078 Basic earnings per share 4 Profit before minority interests 0.75 1.22 0.90 1.19 Profit attributable to minorities 0.15 (0.03) - - Net profit for the period 0.90 1.19 0.90 1.19 The notes to the interim consolidated and company financial statements on pages 8 to 22 are an integral part of these interim financial statements. Berli Jucker Public Company Limited Statements of Changes in Shareholders' Equity For the three month period ended (Unaudited) Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Notes Baht'000 Baht'000 Baht'000 Baht'000 Share Capital 7 Beginning balance 1,588,125 1,588,125 1,588,125 1,588,125 Increase during the period - - - - Decrease during the period - - - - Ending balance 1,588,125 1,588,125 1,588,125 1,588,125 Paid-in capital Premium on Share Capital Beginning balance 3,751,380 3,751,380 3,751,380 3,751,380 Increase during the period - - - - Decrease during the period - - - - Ending balance 3,751,380 3,751,380 3,751,380 3,751,380 Donated surplus Beginning balance 36,868 36,868 36,868 36,868 Increase during the period - - - - Decrease during the period - - - - Ending balance 36,868 36,868 36,868 36,868 Retained Earnings Appropriated retained earnings Legal reserve Beginning balance 218,744 116,873 158,813 57,750 Increase during the period 4,790 - - - Decrease during the period - - - - Ending balance 223,534 116,873 158,813 57,750 Reserve for business expansion Beginning balance 87,401 87,401 85,000 85,000 Increase during the period - - - - Decrease during the period - - - - Ending balance 87,401 87,401 85,000 85,000 Unappropriated retained earnings Beginning balance 2,420,412 2,036,926 2,482,744 2,098,450 Increase during the period 143,237 189,078 143,237 189,078 Decrease during the period (4,790) (14,960) - (14,960) Ending balance 2,558,859 2,211,044 2,625,981 2,272,568 Translation adjustment of foreign currency financial statements Beginning balance (108,786) (106,775) (108,786) (106,775) Increase during the period - - - - Decrease during the period 6,813 - 6,813 - Ending balance (101,973) (106,775) (101,973) (106,775) Minority Interests Beginning balance 358,708 435,379 - - Increase during the period - 17,857 - - Decrease during the period (55,221) (1,291) - - Ending balance 303,487 451,945 - - Total 8,447,681 8,136,861 8,144,194 7,684,916 The notes to the interim consolidated and company financial statements on pages 8 to 22 are an integral part of these interim financial statements. Berli Jucker Public Company Limited Statements of Retained Earnings For the three month period ended (Unaudited) Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Appropriated retained earnings Legal reserve Beginning balance 218,744 116,873 158,813 57,750 Increase during the period 4,790 - - - Decrease during the period - - - - Ending balance 223,534 116,873 158,813 57,750 Reserve for business expansion Beginning balance 87,401 87,401 85,000 85,000 Increase during the period - - - - Decrease during the period - - - - Ending balance 87,401 87,401 85,000 85,000 Unappropriated retained earnings Beginning balance 2,420,412 2,036,926 2,482,744 2,098,450 Increase during the period 143,237 189,078 143,237 189,078 Decrease during the period (4,790) (14,960) - (14,960) Ending balance 2,558,859 2,211,044 2,625,981 2,272,568 Retained earnings at end of the period 2,869,794 2,415,318 2,869,794 2,415,318 The notes to the interim consolidated and company financial statements on pages 8 to 22 are an integral part of these interim financial statements. Berli Jucker Public Company Limited Statements of Cash Flows For the three month period ended (Unaudited) Consolidated Company 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Notes Baht'000 Baht'000 Baht'000 Baht'000 Cash flows from operating activities 11 190,437 391,604 54,390 391,845 Cash flows from investing activities Acquisition of subsidiary, net of cash acquired (38,593) (3,621) (88,593) (203,621) Purchases of property, plant and equipment (218,751) (37,376) (16,132) (22,597) Purchases of short-term investments - (20) - (20) Deferred charged paid - (4,954) - - Loans and advances (to) from related parties (24,048) (3,666) (46,583) 24,549 Proceeds from disposals of property, plant and equipment 2,769 5,318 8,946 1,510 Proceeds from disposals of investments in associates (net of cash equivalents disposed) - - 26,250 - Interest received 17,594 13,198 24,268 29,364 Dividend received - - 15,188 - Net cash payments from investing activities (261,029) (31,121) (76,656) (170,815) Income tax paid (98,424) (86,546) (4,143) (5,695) Cash flows from financing activities Decrease in long-term borrowings (15,940) (10,121) - - Gain on currency swap contracts received (4,524) 3,469 - 2,559 Currency swap cost paid - (665) - - Dividends paid (2,847) - - - Interest paid (58,547) (74,531) (38,289) (43,816) Net cash payments from financing activities (81,858) (81,848) (38,289) (41,257) Net increase (decrease) in cash and cash equivalents (250,874) 192,089 (64,698) 174,078 Beginning balance 1,898,816 1,591,564 1,172,158 1,187,298 Ending balance 1,647,942 1,783,653 1,107,460 1,361,376 Analysis of cash and cash equivalents Cash on hand and at banks 291,895 1,856,967 212,097 1,377,318 Deposits with financial institutions 521,457 - - - Bills of exchange 1,020,000 - 1,000,000 - Bank overdrafts (185,410) (73,314) (104,637) (15,942) (more)