Analysis of the company performance and financial position for Quarter 2/2002 The company performance Overall performance The net income for Quarter2/2002 of Central Pattana Public Company Limited was 242.0 Million Baht, increased by 40.2 Million Baht or 20% from the same quarter of prior year despite the reassessed valued added tax for the year 1997-2000 of 51.3 Million Baht, by the Revenue Department. Exclude this item, net income should sharply increased by 45% Q-O-Q. Revenues Total revenues which comprised of Rental & Service income, Food & Beverage sales and other income for the second quarter of the year 2002 amounted to 880.4 Million Baht, increased by 170.6 Million Baht from the same quarter of last year and increased by 33.7 Million Baht from the first quarter of this year. This is mainly due to increase in rental and service income of shopping centers, which resulted by high demand of new retailers, especially entertainment, fashion and restaurants. Cost of sales and Administrative expenses Cost of sales Cost of sales which comprised of cost of rental and service and cost of food and beverage sales for the second quarter of 2002 was 414.0 Million Baht, increased by 27% from the same quarter of last year. This is mainly due to the consolidation of Central City Bangna and increase in a number of utility units consumed as a result of higher occupancy rate. Administrative expenses Administrative expenses were people cost, advertising and promotion expenses, insurance and depreciation. The consolidated administrative expenses of the second quarter was 90.6 Million Baht, increased by 11.1 Million Baht or 14% Q-O-Q because of renovation cost and promotion expenses of Central City Bangna, advertising expenses for the opening of Major Cineplex at Central Plaza Ratchada Rama3 and personnel expenses for Central Plaza Rama2. Return on Equity Return on Equity (ROE) for this quarter was 21.8%, increased by 11.2% from the same quarter of prior year due to continuous growth of company's performance. Financial Position Assets As at June 30,2002, total assets amounted to 15,282.4 Million Baht, increased from December 31, 2001 by 538.4 Million Baht or 36 due to the increase in construction and development cost of Central Plaza Rama2, Central Airport Plaza Chaingmai Phase2B and renovation cost of Central City Bangna. Liabilities As at June 30, 2002, total liabilities amounted to 10,833.9 Million Baht, increased from December 31,2001 by 319.5 Million Baht or 3% due to an issuance of short-term bill of exchange. Shareholders' Equity The Shareholders' Equity increased by 218.9 Million Baht from December 31, 2001 due to the increase in net profit from operation. Key Ratio 31 Dec. 2001 30 Jun. 2001 30 Jun. 2002 LIQUIDITY RATIO Current Ratio 1.32 2.09 0.83 Account receivables turnover in days 13 15 10 PROFITABILITY RATIO Gross Profit Margin 52.6% 54.0% 53.0% Net Income Margin 20.2% 26.8% 26.0% Return On Equity (ROE) 14.9% 20.0% 21.8% EFFICIENCY RATIO Return on Assets (ROA) 4.8% 7.4% 6.3% FINANCIAL POLICY RATIO Debt to Equity 2.5 1.7 2.4 Interest Coverage 6.9 6.7 5.8