Total 1,647,942 1,783,653 1,107,460 1,361,376 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 Notes to the Interim Consolidated and Company Financial Statements For the three month period ended 31 March 2000 and 1999 (UNAUDITED) 1 Accounting Policies The interim consolidated and company financial statements are prepared in accordance with accounting principles generally accepted in Thailand. However, the primary statements (i.e. balance sheets, statements of income, changes in shareholders' equity, retained earnings 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 Commission'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 ended 31 December 1999. The Group has implemented the following new Thai Accounting Standards, effective 1 January 2000, in these interim financial statements: TAS 43 - Business Combinations TAS 44 - Consolidated Financial Statements and Accounting for Investment in Subsidiaries TAS 45 - Accounting for Investment in Associates TAS 47 - Related Party Disclosures The comparatives, where appropriate, have been adjusted or extended to take into account the requirements of those newly effective standards. Costs that incur unevenly during the financial year are recognised as expense 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. Income tax expense is recognised based on the best estimate of the weighted-average annual income tax rate expected for the full financial year. The estimated average annual tax rate used is 30% These interim financial statements should be read in conjunction with the 1999 annual financial statements. 2 Segment Information For financial accounting purposes the Group divides its core business into two areas: Packaging & Consumer products and Technical products & Imaging. Non-core operations are grouped as Others. The results of operations for the period ended 31 March 2000 and 1999 are summarised below: Financial information by business segments-Group (Unaudited) For the three month period Packaging & Technical 2000 1999 ended 31 March Consumer Products & Others Total Total Products Imaging Baht Baht Baht Baht Baht million million million million million Sales 2000 1,857.7 818.1 87.8 2,763.6 - 1999 1,899.1 767.5 72.2 - 2,738.8 Operating profit (loss) before interest excluding proportion attributable to minority interests 2000 227.2 25.1 16.8 269.1 - 1999 309.2 35.2 (7.5) - 336.9 Minority interests proportion in operating profit before tax (7.9) 14.9 Operating profit before interest 261.2 351.8 General corporate expenses (55.6) (46.5) Other financing (expenses) income (3.8) 10.3 Interest expense (37.4) (45.2) Gain on foreign exchange 2.9 2.9 Net income before income tax 167.3 273.3 Income tax (47.7) (79.0) Net income before minority interests 119.6 194.3 Minority interests 23.6 (5.2) Net income after minority interests 143.2 189.1 As at 31 March 2000 and 1999 property, plant and equipment, net of accumulated depreciation and amortisation, were allocated as follows (Unaudited) For the three month period Packaging & Technical 2000 1999 ended 31 March Consumer Products & Others Total Total Products Imaging Baht Baht Baht Baht Baht million million million million million Property, plant and equipment: 2000 5,770.8 333.9 227.2 6,331.9 - 1999 5,859.6 247.0 337.6 - 6,444.2 General assets used 22.7 793.7 Total property, plant and equipment - net 7,054.6 7,237.9 Financial information by business segments - Company (Unaudited) For the three month period Packaging & Technical 2000 1999 ended 31 March Consumer Products & Others Total Total Products Imaging Baht Baht Baht Baht Baht million million million million million Sales 2000 717.0 445.9 4.8 1,167.7 - 1999 834.5 559.9 6.7 - 1,401.1 Operating profit (loss) before interest 2000 66.5 24.8 ( 7.1 ) 84.2 - 1999 87.7 32.9 (3.6) - 117.0 General corporate expenses (55.6) (46.5) Other financing (expenses) income (3.8) 10.3 Interest expense (8.6) (3.6) Gain on foreign exchange 0.7 0.3 Operating Profit 16.9 77.5 Share of profits of subsidiaries and associates 128.7 123.7 Net income before income tax 145.6 201.2 Income tax (2.4) (12.1) Net profit 143.2 189.1 As at 31 March 2000 and 1999, property, plant and equipment, net of accumulated depreciation and amortisation, were allocated as follows (Unaudited) For the three month period Packaging & Technical 2000 1999 ended 31 March Consumer Products & Total Total Products Imaging Baht Baht Baht Baht million million million million Property, plant and equipment: 2000 29.2 35.3 64.5 - 1999 10.2 21.1 - 31.3 General assets used 722.7 793.7 Total property, plant and equipment - net 787.2 825.0 3 Accounts Receivable and Notes Receivable, net Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Accounts receivable - trade 2,764,174 2,877,330 1,077,056 1,083,958 Installment receivables 249,123 266,471 249,123 266,471 Less :Unearned interest on installment contracts (36,560) (41,603) (36,560) (41,603) 2,976,737 3,102,198 1,289,619 1,308,826 Less : Allowance for doubtful accounts (149,316) (150,534) (120,570) (122,935) 2,827,421 2,951,664 1,169,049 1,185,891 Aging analysis is as follows: Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Less than 6 months 2,772,081 2,880,079 1,123,389 1,119,559 Over 6 months to 12 months 40,857 58,993 21,439 45,936 Over 12 months 163,799 163,126 144,791 143,331 2,976,737 3,102,198 1,289,619 1,308,826 4 Earnings per Share Basic earnings per share is calculated by dividing the net profit attributable to shareholders by the weighted-average number of ordinary shares outstanding during the period (2000: 158,812,500 shares; 1999: 158,812,500 shares). 5 Property, Plant and Equipment, net (Unaudited) For the three month period ended 31 March 2000 Consolidated Company Baht'000 Baht'000 Cost or valuation Beginning balance 12,662,112 1,509,991 Additions 222,257 16,132 Disposals (25,784) (67,630) Ending balance 12,858,585 1,458,493 Impairment provision Beginning balance (182,071) - Decrease 47,079 - Ending balance (134,992) - Net cost or valuation, ending balance 12,723,593 1,458,493 Accumulated depreciation Beginning balance 5,516,580 699,359 Depreciation charges for the period 175,301 31,194 Disposals (22,900) (59,293) Ending balance 5,668,981 671,260 Net book amount, ending balance 7,054,612 787,233 Net book amount, beginning balance 6,963,461 810,632 6 Long-term Liabilities Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Baht loans from financial institutions 480,113 491,863 - - Foreign currency loans from financial Institutions 2,197,010 2,202,073 1,940,861 1,940,839 Other loans 3,398 4,402 - - Total loans outstanding 2,680,521 2,698,338 1,940,861 1,940,839 6 Long-term Liabilities (Continued) Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Loan repayment within a period: Not exceeding one year 130,145 118,212 - - More than 1 year but not exceeding 2 years 177,462 179,707 - - More than 2 year but not exceeding 3 years 2,099,643 2,100,517 1,940,861 1,940,839 More than 3 year but not exceeding 4 years 143,645 144,360 - - More than 4 year but not exceeding 5 years 117,071 138,172 - - More than five years 12,555 17,370 - - Total loans outstanding 2,680,521 2,698,338 1,940,861 1,940,839 Less : Amounts repayable within one year included in current liabilities (130,145) (118,212) - - Total long-term liabilities 2,550,376 2,580,126 1,940,861 1,940,839 The figures for foreign currency loans from financial institutions shown above disclose foreign currency borrowings at exchange rates prevailing on the balance sheets date or, where relevant, at exchange rates based on various foreign exchange contracts entered into to fix the exchange rate at which such foreign currency borrowings will be repaid in future. Loans are repayable in various annual installments at a weighted-average rate of interest of 6.26% per annum as at 31 March 2000 (as at 31 December 1999: 6.26% per annum) for foreign currency loans, and at a weighted-average rate of 7.52% per annum as at 31 March 2000 (as at 31 December 1999: 7.52% per annum) for Baht loans. Hedging costs for US dollar denominated loans vary between 7.23% and 7.25% per annum as at 31 March 2000 (as at 31 December 1999: 7.23% and 7.25% per annum). In December 1997 the Company crystallized a gain on its long term principal only swaps, amounting to Baht 1,428,946,000, of which Baht 973,516,000 was received in cash and the remaining Baht 455,430,000 relating to loans due in 2002 will be received in 2002. The movements in the borrowings can be analysed as follows: (Unaudited) For the three month period ended 31 March 2000 Consolidated Company Baht'000 Baht'000 Opening balance 2,698,338 1,940,839 Loss (profit) on exchange rate of unpaid loan 103,652 (50,294) Unrealised loss (gain) on financial hedging agreements (108,715) 50,316 Repayment of borrowings (12,754) - Ending balance 2,680,521 1,940,861 7 Share Capital and Premium on Share Capital (Unaudited) For the three month period Number of Ordinary Share ended 31 March 2000 Shares Shares Premium Total Baht'000 Baht'000 Baht'000 Opening balance 158,812,500 1,588,125 3,751,380 5,339,505 Issue of shares - - - - Closing balance 158,812,500 1,588,125 3,751,380 5,339,505 As at 31 March 2000, the total registered number of ordinary shares is 158,812,500 shares (31 December 1999: 158,812,500 shares) with a par value of Baht 10 per share (31 December 1999: Baht 10 per share). All issued shares are fully paid. 8 Contingencies The Company was contingently liable as guarantor of credit facilities for related parties at 31 March 2000 to the extent of Baht 415.1 million. 9 Subsequent Events After balance sheet date, subsidiaries of the company declared and paid dividends as below: (Unaudited) Dividend Group Declaration per share holding % of Date (Baht) (shares) holding Thai Glass Industries Public Company Limited 21 April 2000 34.81 57,784,147 98.78 % Rubia Industries Co.,Ltd. 28 April 2000 16,666.67 11,964 99.70 % 10 Capital Commitments Consolidated Company Baht'000 Baht'000 Capital commitments as at 31 March 2000 (unaudited) 153,000 - Capital commitments as at 31 December 1999 (audited) 137,430 - 11 Cash Flows from Operating Activities Reconciliation of net profit to cash flows from operating activities: (Unaudited) Consolidated Company For the three month period ended 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Profit before tax 167,276 273,273 145,656 201,177 Interest expense 56,511 68,635 36,574 43,343 Currency swap cost 33,947 32,910 33,947 32,239 Share of profits less losses in subsidiary and associated companies 9,992 (4,135) (128,690) (123,674) Interest income (19,044) (23,452) (27,940) (39,741) Profit before adjustments non-cash items 248,682 347,231 59,547 113,344 Allowance for doubtful accounts (1,218) 3,905 (2,365) 3,922 Depreciation and amortisation (note 5) 175,301 165,433 31,194 29,961 Reverse provision on suspended business segment (45,000) - - - Goodwill amortization 46 - - - Deferred charges written off - 1,634 - - Book value of property, plant and equipment written off 1,551 235 264 14 Gain on disposal of property, plant and equipment (1,437) (1,753) (873) (1,369) Provision for staff retirement benefits 17,407 11,478 10,351 5,994 (Gain) loss on conversion of foreign currency borrowings (539) 27 22 78 INCREASE (DECREASE) IN WORKING CAPITAL Accounts receivable 125,461 (249,560) 19,207 56,216 Inventories (160,968) (60,285) (77,918) (32,948) Other current assets (46,109) 14,393 3,772 (4,068) Other assets (12,101) (219) (8) 9 Accounts and notes payable 29,285 120,673 (28,554) 118,864 Accounts payable - related parties - - 94,578 143,249 Accrued expenses 70,392 115,100 600 36,470 Other current liabilities (169,839) (21,206) (23,535) (36,123) Loans from directors and employees (1,558) (849) (1,571) (863) Long-term lease deferred income (1,402) (1,402) (1,402) (1,402) Staff retirement benefits (37,409) (42,804) (28,811) (29,291) Other liabilities (108) (10,427) (108) (10,212) Net cash inflow from operating activities 190,437 391,604 54,390 391,845 12 Related Party Transactions The following material transactions were carried out with related parties: i) Sales of goods and services (Unaudited) Consolidated Company For the three month period ended 31 March 31 March 31 March 31 March 2000 1999 2000 1999 Baht' 000 Baht' 000 Baht' 000 Baht' 000 Berli Jucker Specialties Ltd. - - 15,896 - ii) Purchases of goods and services (Unaudited) Consolidated Company (more)