Beginning balance 1,898,816 1,591,564 1,172,158 1,187,298 Ending balance 718,566 1,729,929 118,976 979,769 Analysis of cash and cash equivalents Cash on hand and at banks 3,287 1,807,741 266 995,203 Deposits with financial institutions 810,573 - 120,365 - Bank overdrafts (95,294) (77,812) (1,655) (15,434) Total 718,566 1,729,929 118,976 979,769 The notes to the interim consolidated and company financial statements on pages 9 to 26 are an integral part of these interim financial statements. 1 Accounting Policiesm 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 30 June 2000 and 1999 are summarised below: Financial information by business segments Group (Unaudited) For the three month period Packaging & Technical 2000 1999 ended 30 June Consumer products & Others Total Total products Imaging Baht Baht Baht Baht million Baht million million million million Sales 2000 1,881.1 859.4 71.2 2,811.7 1999 1,908.4 735.9 92.6 2,736.9 Operating profit (loss) before interest excluding proportion attributable to minority interests 2000 175.2 32.4 61.8 269.4 1999 346.0 31.9 (26.7) 351.2 Minority interests proportion in Operating profit before tax 1.0 (9.1) Operating profit before interest 270.4 342.1 General corporate expenses (97.0) (60.4) Other financing (expenses) income (1.4) 4.9 Interest expense, net (35.0) (39.5) Loss on foreign exchange (17.0) (3.6) Gain (loss) on disposal of investment 39.6 (3.6) Net profit before income tax 159.6 239.9 Income tax (40.6) (75.0) Net profit before minority interests 119.0 164.9 Minority interests 37.9 5.5 Net profit after minority interests 156.9 170.4 Financial information by business segments Company For the three month period ended 30 June (Unaudited) Packaging & Technical 2000 1999 Consumer products & Others Total Total products Imaging Baht Baht Baht Baht million Baht million million million million Sales 2000 772.3 434.0 (4.8) 1,201.5 1999 913.9 507.8 6.2 1,427.9 Operating profit (loss) before interest 2000 46.6 17.2 7.1 70.9 1999 97.8 31.3 (2.9) 126.2 General corporate expenses (57.0) (60.9) Other financing (expenses) income (1.4) 4.9 Interest income (expenses) 21.1 - (Loss) gain on foreign exchange (0.2) 3.4 Loss on disposal of investment (1.5) (3.6) Operating Profit 31.9 70.0 Share of profits of subsidiaries and associates 133.3 114.6 Net profit before income tax 165.2 184.6 Income tax (8.3) (14.2) Net profit 156.9 170.4 Financial information by business segments Group For the six month period (Unaudited) ended 30 June Packaging & Technical 2000 1999 Consumer products & Others Total Total products Imaging Baht Baht Baht Baht million Baht million million million million Sales 2000 3,738.8 1,677.5 159.0 5,575.3 1999 3,807.5 1,503.4 164.8 5,475.7 Operating profit (loss) before interest excluding proportion attributable to minority interests 2000 402.4 57.5 78.6 538.5 1999 655.2 67.1 (34.2) 688.1 Minority interests proportion in operating profit before tax (6.9) 5.8 Operating profit before interest 531.6 693.9 General corporate expenses (152.6) (106.9) Other financing (expenses) income (5.2) 15.2 Interest expense (72.4) (84.7) Loss on foreign exchange (14.1) (0.7) Gain (loss) on disposal of investment 39.6 (3.6) Net profit before income tax 326.9 513.2 Income tax (88.3) (154.0) Net profit before minority interests 238.6 359.2 Minority interests 61.5 0.3 Net profit after minority interests 300.1 359.5 As at 30 June 2000 and 1999 property, plant and equipment, net of accumulated depreciation and amortisation, were allocated as follows (Unaudited) For the six month period Packaging & Technical 2000 1999 ended 30 June Consumer products & Others Total Total products Imaging Baht Baht Baht Baht million Baht million million million million Property, plant and equipment: 2000 5,861.1 244.2 203.6 6,308.9 1999 5,819.0 292.9 252.1 6,364.0 General assets used 723.0 772.3 Total property, plant and equipment net 7,031.9 7,136.3 Financial information by business segments Company (Unaudited) For the six month period Packaging & Technical 2000 1999 ended 30 June Consumer products & Others Total Total products Imaging Baht Baht Baht Baht million Baht million million million million Sales 2000 1,489.3 879.9 0.0 2,369.2 1999 1,748.4 1,067.7 12.9 2,829.0 Operating profit (loss) before interest 2000 113.1 42.0 0.0 155.1 1999 185.5 64.2 (6.5) 243.2 General corporate expenses (112.6) (107.4) Other financing (expenses) income (5.2) 15.2 Interest income (expense) 12.5 (3.6) Gain on foreign exchange 0.5 3.7 Loss on disposal of investment (1.5) (3.6) Operating Profit 48.8 147.5 Share of profits of subsidiaries and associates 262.0 238.3 Net profit before income tax 310.8 385.8 Income tax (10.7) (26.3) Net profit 300.1 359.5 As at 30 June 2000 and 1999, property, plant and equipment, net of accumulated depreciation and amortisation, were allocated as follows For the six month period ended 30 June (Unaudited) Packaging & Technical 2000 1999 Consumer Products & Total Total Products Imaging Baht Baht Baht million Baht million million million Property, plant and equipment: 2000 29.0 39.4 68.4 1999 11.7 25.2 36.9 General assets used 723.0 772.3 Total property, plant and equipment net 791.4 809.2 3 Trade Accounts Receivable and Notes Receivable, net Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 30 June 31 December 30 June 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Accounts receivable trade 2,302,824 2,877,330 1,106,488 1,083,958 Installment receivables 222,964 266,471 222,964 266,471 Less : Unearned interest on installment contracts (30,904) (41,603) (30,904) (41,603) 2,494,884 3,102,198 1,298,548 1,308,826 Less : Allowance for doubtful accounts (148,135) (150,534) (118,275) (122,935) 2,346,749 2,951,664 1,180,273 1,185,891 Aging analysis is as follows: Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 30 June 31 December 30 June 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Less than 6 months 2,300,575 2,880,079 1,132,744 1,119,559 Over 6 months to 12 months 18,279 58,993 15,489 45,936 Over 12 months 176,030 163,126 150,315 143,331 2,494,884 3,102,198 1,298,548 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) Consolidated Company Baht'000 Baht'000 For the six month period ended 30 June 2000 Cost or valuation Beginning balance 12,662,112 1,509,991 Additions 315,874 55,116 Disposals (38,775) (77,009) Write off (345,322) (6,366) Transfer to property for closed (23,960) - Exchange translation 36,899 - Ending balance 12,606,828 1,481,732 Impairment provision Beginning balance (182,071) - Decrease 95,943 - Ending balance (86,128) - Net cost or valuation, ending balance 12,520,700 1,481,732 Accumulated depreciation Beginning balance 5,516,580 699,359 Depreciation charges for the period 349,472 63,292 Disposals (36,615) (68,667) Write off (340,408) (3,694) Transfer to property for closed (288) - Ending balance 5,488,741 690,290 Net book amount, ending balance 7,031,959 791,442 Net book amount, beginning balance 6,963,461 810,632 6 Long-term Liabilities Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 30 June 31 December 30 June 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Baht loans from financial institutions 547,786 491,863 - - Foreign currency loans from financial institutions 263,206 2,202,073 - 1,940,839 Other loans 2,413 4,402 - - Total loans outstanding 813,405 2,698,338 - 1,940,839 6 Long-term Liabilities (Continued) Consolidated Company (Unaudited) (Audited) (Unaudited) (Audited) 30 June 31 December 30 June 31 December 2000 1999 2000 1999 Baht'000 Baht'000 Baht'000 Baht'000 Loan repayment within a period: Not exceeding one year 158,574 118,212 - - More than 1 year but not exceeding 2 years 192,774 179,707 - - More than 2 years but not exceeding 3 years 178,530 2,100,517 - 1,940,839 More than 3 years but not exceeding 4 years 146,938 144,360 - - More than 4 years but not exceeding 5 years 105,101 138,172 - - More than five years 31,488 17,370 - - Total loans outstanding 813,405 2,698,338 - 1,940,839 Less : Amounts repayable within one year included in current liabilities (158,574) (118,212) - - Total long-term liabilities 654,831 2,580,126 - 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 7.72% per annum as at 30 June 2000 (as at 31 December 1999: 6.26% per annum) for foreign currency loans, and at a weighted average rate of 7.01% per annum as at 30 June 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 December 1999. 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 analyzed as follows: (Unaudited) For the six month period ended 30 June 2000 Consolidated Company Baht'000 Baht'000 Opening balance 2,698,338 1,940,839 Additional loan 90,924 - Profit on exchange rate of unpaid loan (1,402) - Unrealised gain on financial hedging agreements (627) - Repayment of borrowings (1,973,828) (1,940,839) Ending balance 813,405 - 7 Share Capital and Capital Surplus (Unaudited) Ordinary Share Donated For the six month period ended Number of Shares Premium Surplus 30 June 2000 Shares Baht'000 Baht'000 Baht'000 Opening balance 158,812,500 1,588,125 3,751,380 36,868 Issue of shares - - - - Closing balance 158,812,500 1,588,125 3,751,380 36,868 As at 30 June 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 30 June 2000 to the extent of Baht 466.5 million. 9 Subsequent Events On 4 July 2000, the company sold 208,073 shares of Berli Prospack Company Limited to P.T.Dynaplast at price Baht 64 per share, totalling Baht 13,316,672. 10 Capital Commitments Consolidated Company Baht'000 Baht'000 Capital commitments as at 30 June 2000 (unaudited) 118,070 - 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 six month period ended 30 June 30 June 30 June 30 June 2000 1999 2000 1999 (more)