บร ษ ท อาร ซ แอล จ าก ด (มหาชน)

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1 บร ษ ท อาร ซ แอล จ าก ด (มหาชน) Regional Container Lines Public Company Limited PRESS RELEASE FINANCIAL RESULTS AS AT 2 ND QUARTER OF YEAR 2002 As Thai Baht and Singapore Dollar strengthened against US dollar in the second quarter of year 2002, the net profit of Regional Container Lines Public Company Limited had recorded a 284% increase over the same quarter last year at THB634 million. The first half net profit of 2002 stood at THB900 million and which is THB833 million higher than previous year when the Group was only recording a net profit of THB67 million in the first half of In 2Q2002, the Group recorded an unrealized exchange gain of THB422 million while an unrealized exchange loss of THB185 million was being recorded for the same quarter last year. Besides the unrealized exchange gain from the Group s US$ denominated debt; the Group also recorded lower operating expenses in 2Q2002 when comparing to the same quarter last year. Total expenses before exchange loss, tax and loss on disposal of vessel was down by 9% at THB2.7 billion. The savings were mainly due to higher efficiency achieved of our tonnage through the slot exchange program & faster equipment turnaround and cost reduction at all levels of operation activities. In 2Q2002, to improve the overall fleet efficiency, the Group had disposed a 21 years old vessel and suffered a book loss of THB48 million on loss of disposal. The Group s turnover for the second quarter was down by 13% at THB3.11 billion compared to THB3.56 billion for the same quarter last year. The reduction in turnover was partly due to the weakening of US$ against the regional currencies as the Group income is US$ based and partly due to the freight rate erosion being carried forward from second half of From a quarter to quarter basis, 2Q2002 turnover is 4% up against 1Q2002 and which had shown clear signs that the freight rate erosion had been stabilized. Regional Container Lines PLC August 13, 2002

2 2001-1H2002 Earnings Statement in Baht all figures base on financial statements reported to SET 1st Quarter Half-Year 9 months Yearend 1st Quarter Half-Year (million baht) Freight income 3, , , , , , Total revenues 3, , , , , , Cost of freight and operations 2, , , , , , Gross profit , , , , Administrative expenses EBIT before Fx and Impairment , , , Depreciation Amortization EBITDA before Fx and Impairment , , , , Interest expense Earnings before tax, Fx and Impairment Taxes paid Net earnings before realised Fx and Impairment Foreign exchage gain (loss) (365.19) (550.18) (207.30) (804.41) : Unrealised Fx gain (loss) (365.35) (525.05) (176.50) (729.45) : Realised Fx gain (loss) 0.16 (25.13) (30.80) (74.96) Net earnings after realised Fx gain (loss) but before Impairment costs Loss on impairment of assets Minority interest (3.04) (0.91) (1.87) Net earnings for the period (98.25) (297.61) EXCHANGE RATE : AVERAGE RATE FOR EARNING STATEMENTS THB : 1 USD THB : 1 SGD SGD : 1 USD Regional Container Lines

3 2001-1H2002 Earnings Statement in US$ 1st Quarter Half-Year 9 months Yearend 1st Quarter Half - Year (million US$) Freight income Total revenues Cost of freight & operations Gross profit Administrative expenses EBIT before Fx and Impairment Depreciation & Armortisation EBITDA before Fx and Impairment Interest expenses Earnings before income tax Taxes Net earnings (before FX account) Foreign exchange accounts : FX gain : Fx loss Net earnings after Fx but before Impairme Loss on impairment of assets Minority interest Net earnings for the year Regional Container Lines

4 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES REPORT AND INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED 30 JUNE 2002

5 Report of Independent Auditor To The Board of Directors and Shareholders of Regional Container Lines Public Company Limited I have reviewed the accompanying consolidated balance sheet of Regional Container Lines Public Company Limited and its subsidiaries as at 30 June 2002, and the related consolidated statements of earnings for the three-month and six-month periods ended 30 June 2002, changes in shareholders equity, and cash flows for the six-month period ended 30 June 2002, and the separate financial statements of Regional Container Lines Public Company Limited for the same periods. These financial statements are the responsibility of the Company s management as to their correctness and the completeness of the presentation. 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 provides 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 accompanying financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles. The consolidated financial statements of Regional Container Lines Public Company Limited and its subsidiaries and the separate financial statements of Regional Container Lines Public Company Limited for the year ended 31 December 2001, were audited in accordance with generally accepted auditing standards by another auditor of our firm, who expressed an unqualified opinion on those statements under his report dated 18 February The balance sheet as at 31 December 2001, as presented herein for comparative purposes, formed an integral part of the financial statements which have been audited and reported on by that auditor

6 The consolidated statements of earnings for the three-month and six-month periods ended 30 June 2001, changes in shareholders equity and cash flows for the six-month period ended 30 June 2001 of Regional Container Lines Public Company Limited and its subsidiaries and the separate financial statements of Regional Container Lines Public Company Limited, as presented herein for comparative purposes, formed an integral part of the interim financial statements which were reviewed by the aforementioned auditor who reported, under his report dated 3 August 2001, that nothing had come to his attention that caused him to believe that those financial statements were not presented fairly, in all material respects, in accordance with generally accepted accounting principles. Vissuta Jariyathanakorn Certified Public Accountant (Thailand) No Ernst & Young Office Limited Bangkok : 2 August

7 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES BALANCE SHEETS (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY Note 30 June December June December 200 (Unaudited (Audited) (Unaudited (Audited) but reviewed) but reviewed) ASSETS Current assets Cash and cash equivalents 1,738, ,532 1,079,321 67,375 Trade accounts receivable 2,247,226 2,093, Less : allowance for doubtful accounts (36,565) (40,761) - - Trade accounts receivable, net 2 2,210,661 2,052, Trade accounts receivable - related pa 2,5 12,003 12,344 1,977,783 2,126,719 Material supplies 135,136 93,930 4,701 4,471 Other current assets 137, ,913 36,427 38,859 Total current assets 4,234,029 3,145,991 3,098,232 2,237,479 Non-current assets Property investments held for long-term investme 3,733 3, Investments accounted for under equit 3 103,431 98,508 1,264, ,430 Other long-term investments 32,277 35, Property and premises, net 2,572,519 2,620,159 25,879 27,014 Vessels and equipment, net 11,988,166 12,482,570 5,084,962 5,207,276 Other non-current assets 19,700 34,694 16,178 30,662 Total non-current assets 14,719,826 15,275,743 6,391,538 5,676,382 TOTAL ASSETS 18,953,855 18,421,734 9,489,770 7,913,861 The accompanying notes are an integral part of the financial statements.

8 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES BALANCE SHEETS (Continued) (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY Note 30 June December June December 200 (Unaudited (Audited) (Unaudited (Audited) but reviewed) but reviewed) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable 1,321,184 1,433,518-1,460 Trade accounts payable - related partie 5-10, , ,572 Current portion of finance lease creditors 168, , Current portion of long-term loans 4 1,655,928 1,718, , ,844 Promissory notes 6 1,000,000-1,000,000 - Other current liabilities 188, ,754 41,869 49,968 Total current liabilities 4,333,982 3,497,788 1,689, ,844 Non-current liabilities Finance lease creditors, net of current portion 368, , Long-term loans, net of current portion 4 7,192,778 8,376, ,864 1,031,695 Debentures 1,000,000 1,000,000 1,000,000 1,000,000 Total non-current liabilities 8,561,143 9,852,216 1,766,864 2,031,695 Total liabilities 12,895,125 13,350,004 3,456,464 2,870,539 Shareholders' equity Share capital Registered 66,300,000 ordinary shares of Baht 10 each 663, , , ,000 Issued and paid-up 66,300,000 ordinary shares of Baht 10 each (31 December 2001 : 63,666,287 ordinary shares of Baht 10 each) 7 663, , , ,663 Share premium 3,073,190 2,986,278 3,073,190 2,986,278 Translation adjustment 724, , , ,462 Retained earnings Appropriated - statutory reserve 63,666 63,666 63,666 63,666 Unappropriated 1,508, ,253 1,508, ,253 Equity attributable to Company's shareholders 6,033,306 5,043,322 6,033,306 5,043,322 Minority interest - equity attributable to minority shareholders' of subsidiaries 25,424 28, Total shareholders' equity 6,058,730 5,071,730 6,033,306 5,043,322 TOTAL LIABILITIES AND SHAREHOLDERS' EQUI 18,953,855 18,421,734 9,489,770 7,913,861 The accompanying notes are an integral part of the financial statements.

9 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES EARNINGS STATEMENTS FOR THE THREE-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY Revenues Freight income 3,084,992 3,532, , ,903 Share of profit from investment accounted for under equity method - subsidiaries ,474 24,723 Share of profit from investment accounted for under equity method - associated companies 5,743 4,739 5,743 4,739 Gain on exchange 422, Other income 22,336 22, Total revenues 3,535,161 3,560, , ,141 Expenses Cost of freight and operation 2,519,729 2,775, , ,663 Administrative expenses 193, ,050 24,131 18,625 Loss on disposal of vessel 48, Loss on exchange - 184,993 20, Total expenses 2,761,768 3,167, , ,861 Earnings before interest and income tax expenses 773, , , ,280 Interest expenses (138,221) (225,137) (33,154) (41,737) Corporate income tax (1,917) (253) 171 (160) Earnings after income tax 633, , , ,383 Net loss (earnings) - minority interest of subsidiaries 967 (1,826) - - Net earnings for the period 634, , , ,383 Basic earnings per share (Unit : Baht) Net earnings Weighted average number of shares (Thousand s 65,982 63,666 65,982 63,666 The accompanying notes are an integral part of the financial statements.

10 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES EARNINGS STATEMENTS FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY Revenues Freight income 6,053,416 6,879, ,898 1,304,299 Share of profit from investment accounted for under equity method - subsidiaries ,405 - Share of profit from investment accounted for under equity method - associated companies 12,331 5,818 12,331 5,818 Gain on exchange 482, Other income 40,990 48,998 1,453 4,495 Total revenues 6,588,880 6,934,675 1,309,087 1,314,612 Expenses Cost of freight and operation 4,987,757 5,467, , ,868 Administrative expenses 369, ,593 42,327 37,651 Loss on disposal of vessel 48, Share of loss from investment accounted for under equity method - subsidiaries ,926 Loss on exchange - 550,183 26,777 8,008 Total expenses 5,406,211 6,417, ,506 1,160,453 Earnings before interest and income tax expenses 1,182, , , ,159 Interest expenses (281,091) (444,826) (66,195) (85,871) Corporate income tax (3,070) (2,242) (4) (1,150) Earnings after income tax 898,508 69, ,382 67,138 Net loss (earnings) - minority interest of subsidiaries 1,874 (2,663) - - Net earnings for the period 900,382 67, ,382 67,138 Basic earnings per share (Unit : Baht) Net earnings Weighted average number of shares (Thousand s 64,830 63,666 64,830 63,666 The accompanying notes are an integral part of the financial statements.

11 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 (Unit : Thousand Baht) CONSOLIDATED Issued and Retained earnings Minority paid-up Share Translation Statutory interest of share capital premium adjustment reserve Unappropriatedsubsidiaries Total Balance - beginning of the y 636,663 2,986, ,059 63, ,863 31,245 5,383,774 Translation adjustment - - 1, ,619 Net earnings for the period ,138-67,138 Increase in minority interest ,676 3,676 Balance - end of the period 636,663 2,986, ,678 63, ,001 34,921 5,456,207 Balance - beginning of the y 636,663 2,986, ,462 63, ,253 28,408 5,071,730 Ordinary share increase 26,337 86, ,249 Translation adjustment - - (23,647) (23,647) Net earnings for the period , ,382 Decrease in minority interes (2,984) (2,984) Balance - end of the period 663,000 3,073, ,815 63,666 1,508,635 25,424 6,058,730 The accompanying notes are an integral part of the financial statements.

12 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 (Unit : Thousand Baht) THE COMPANY ONLY Issued and paid-up Share Translation Retained earnings Statutory share capital premium adjustment reserve Unappropriated Total Balance - beginning of the year ,663 2,986, ,059 63, ,863 5,352,529 Translation adjustment - - 1, ,619 Net earnings for the period ,138 67,138 Balance - end of the period 636,663 2,986, ,678 63, ,001 5,421,286 Balance - beginning of the year ,663 2,986, ,462 63, ,253 5,043,322 Ordinary share increase 26,337 86, ,249 Translation adjustment - - (23,647) - - (23,647) Net earnings for the period , ,382 Balance - end of the period 663,000 3,073, ,815 63,666 1,508,635 6,033,306 The accompanying notes are an integral part of the financial statements.

13 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY Cash flows from operating activities Net earnings 900,382 67, ,382 67,138 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities :- Depreciation 321, , , ,132 Share of (profit) loss from investment accounted for under equity method - subsidiaries - - (871,405) 225,926 Share of profit from investment accounted for under equity method - associated companies (12,331) (5,818) (12,331) (5,818) Loss on short-term investment revaluation Loss on disposal of fixed assets 48, Decrease in allowance for doubtful accounts (4,196) (8,567) - - Amortisation of excess of cost of investments over net book value of the subsidiaries - 11, Unrealised exchange (gain) loss (465,916) 525,049 29,833 8,895 Minority interest (1,874) 2, , , , ,644 Operating assets (increase) decrease Trade accounts receivable (161,679) (660,305) 55 (31,135) Trade accounts receivable - related parties 341 (26,945) 47,909 (419,214) Material supplies (41,206) 13,516 (230) 1,420 Other current assets (7,630) (145,827) 2,306 (15,020) Other assets 14,994 (15,827) 14,484 (11,288) Operating liabilities increase (decrease) Trade accounts payable (112,334) 25,970 (1,460) (4,858) Trade accounts payable - related parties (10,434) (68,404) (192,593) 128,335 Finance lease creditors (96,640) 329, Other current liabilities 35,924 (19,470) (8,099) (14,413) Net cash provided by operating activities 407, ,989 30,126 48,471 The accompanying notes are an integral part of the financial statements.

14 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS (Continued) FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2002 AND 2001 CONSOLIDATED (Unit : Thousand Baht) THE COMPANY ONLY Cash flows from investing activities Decrease (increase) in property, premises, vessels and equipme 171,972 (357,615) 2,174 (5,144) Decrease (increase) in investments accounted for under equity method (44,488) Decrease in property investments held for long-term investments , Dividend received from associated company 7,000 7,000 7,000 7,000 Decrease in other long-term investments 3, Decrease in translation adjustment (23,647) (4,587) - - Net cash provided by (used in) investing activities 159,535 (330,562) 9,174 (42,632) Cash flows from financing activities Increase in short-term loans from financial institutions - (19,769) - - Issuance of promissory notes 1,000,000-1,000,000 - Decrease in long-term loans (798,977) (700,258) (140,603) (138,444) Cash received from capital increase 113, ,249 - Net cash provided by (used in) financing activities 314,272 (720,027) 972,646 (138,444) Net increase (decrease) in cash and cash equivalents 881,280 (654,600) 1,011,946 (132,605) Cash and cash equivalents at beginning of period 857,532 1,228,280 67, ,318 Cash and cash equivalents at end of period 1,738, ,680 1,079, ,713 Supplemental cash flow information :- Cash paid during the period for :- Interest expenses 234, ,141 69,524 91,820 Corporate income tax 1,104 5, The accompanying notes are an integral part of the financial statements.

15 REGIONAL CONTAINER LINES PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO INTERIM FINANCIAL STATEMENTS 1. GENERAL INFORMATION 1.1 Going concern issue Although the economic crisis in Thailand and other countries in South East Asia, which occurred in mid 1997, has eased to a certain extent, its remaining adverse effects are expected to continue to impact on the business environment. However, the accompanying financial statements have been prepared on the going concern basis assuming that the realisation of assets and settlement of liabilities and obligations will occur in the ordinary course of business of the Company and its subsidiaries. 1.2 Basis for the preparation of the interim financial statements These interim financial statements are prepared in accordance with Accounting Standards Pronouncement No. 41 Interim financial statements, with the Company choosing to present condensed interim financial statements. However, additional line items are presented in the balance sheets, and the related statements of earnings, changes in shareholders equity, and cash flows, as in the annual financial statements. These interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events and circumstances so as not to duplicate information previously reported. These interim financial statements should therefore be read in conjunction with the latest annual financial statements. 1.3 Basis of consolidation These consolidated financial statements include the financial statements of Regional Container Lines Public Company Limited and its subsidiaries ( the Group ) and have been prepared on the same basis as that applied for the consolidated financial statements for the year ended 31 December There have been no changes in the composition of the Group during the current period

16 The consolidated financial statements for the three-month and six-month periods ended 30 June 2002 include the financial statements of an overseas subsidiary. These financial statements were prepared by the management of the subsidiary, and have not been reviewed by its auditor. Assets of the subsidiary included at 30 June 2002 amount to Baht 65 million, and total revenues included for the three-month and six-month periods then ended amount to Baht 14 million and Baht 24 million, respectively. 1.4 Significant accounting policies The interim financial statements are prepared using the same accounting policies and methods of computation as were used for the financial statements for the year ended 31 December 2001, except that during the current quarter, a Singaporean subsidiary revised the estimated useful life of its containers from 6 years to 10 years to reflect a more realistic period over which the containers are expected to be used by the subsidiary. The change had the effect of increasing consolidated earnings for the three-month and six-month periods ended 30 June 2002 by Baht 20 million and Baht 39 million, respectively. 2. TRADE ACCOUNTS RECEIVABLE/TRADE ACCOUNTS RECEIVABLE - RELATED PARTIES The balances of trade accounts receivable are classified by aging as follows :- (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY 30 June 31 December 30 June 31 December Under 90 days 2,190,879 2,046, days 47,070 25, days 6,002 12, Over 365 days 3,276 8, Total 2,247,227 2,093, Less : Allowance for doubtful accounts (36,566) (40,761) - - Net 2,210,661 2,052, A part of trade accounts receivable of subsidiaries as at 30 June 2002 and 31 December 2001 have been pledged to secure credit facilities granted by banks

17 The balances of trade accounts receivable - related parties are classified by aging as follows :- (Unit : Thousand Baht) CONSOLIDATED THE COMPANY ONLY 30 June 31 December 30 June 31 December Under 90 days , , days , , days , ,237 Over 365 days - - 1,055,118 1,240, ,977,783 2,126,719 Trade accounts receivable - related parties of overseas subsidiaries 12,003 12, Total 12,003 12,344 1,977,783 2,126, INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD The Company Only (Unit : Million Baht) Percentage directly Share capital issued owned by the Investment Company s name and fully paid Company Cost method Equity method 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December Percent Percent Investments in subsidiaries Subsidiaries operating in Thailand a) Asian Bulk Shipping Co., Ltd. Baht 25 Million Baht 25 Million b) RCL Logistics Co., Ltd. Baht 1 Million Baht 1 Million Subsidiaries operating in Singapore c) RCL Investment Pte. Ltd. S$ 10 Million S$ 10 Million (1,222) (1,399) d) Regional Container Lines Pte Ltd. S$ 42.5 Million S$ 42.5 Million ,173 1,173 2,595 2,437 e) RCL Feeder Pte Ltd. S$ 20.5 Million S$ 20.5 Million (496) (1,030) f) RCL Service SA USD 10,000 USD 10, g) RCL Holdings Ltd. S$ 0.3 Million S$ 0.3 Million h) RCL Ship Management Pte. Ltd. S$ 0.3 Million S$ 0.3 Million

18 (Unit : Million Baht) Percentage directly Share capital issued owned by the Investment Company s name and fully paid Company Cost method Equity method 30 June 31 December 30 June 31 December 30 June 31 December 30 June 31 December Percent Percent Subsidiary operating in Hong Kong i) Regional Container Lines (H.K.) Ltd. HK$ 4 Million HK$ 4 Million Subsidiary operating in the People s Republic of China j) Regional Container Lines USD 1 Million USD 1 Million Shipping Co.,Ltd. Total investments in subsidiaries 2,102 2,102 1, Investment in associated company Associated company operating in Thailand i) TIPS Co., Ltd. (Port operating) Baht 100 MillionBaht 100 Million Total investment in associated company Total investments accounted for under equity method 2,122 2,122 1, The accumulated shares of the profit of the associated company, as at 30 June 2002 and 31 December 2001, are calculated from the financial statements of the associated company, which were unreviewed/unaudited by that company s auditor. CONSOLIDATED (Unit : Thousand Baht) 30 June December 2001 The Company s investment in associated company 75,589 70,257 The subsidiaries investments in associated companies 27,842 28,251 Total investments accounted for under equity method 103,431 98,

19 4. LONG-TERM LOANS These loans have been secured by the mortgage of most of the vessels of the Company and the subsidiaries, and the property of the subsidiaries, and are guaranteed by the Company. During the current quarter, the Company refinanced Baht 97.3 million loan at interest rate of 8.5% per annum with USD 2.27 million loan at interest rate of LIBOR + 2.5% per annum. 5. RELATED PARTY TRANSACTIONS a) The Company and its subsidiaries have business dealings with their customers through regional shipping agents (third parties and related parties) of which a substantial part is through their related companies. Such transactions have been determined in the ordinary course of business. b) In addition to the matter discussed in a), during the periods, the Company had other significant business transactions with its subsidiary, associated and related companies (related by way of shareholding or common shareholders and/or common directors). Such transactions, which have been concluded on the terms and basis as determined between the Company and those companies, are charged for prices approximating market prices, except for charter hire fees, which are determined at cost plus a margin or at prices comparable to cost. The transactions are summarised below :- (Unit : Million Baht) For the six-month periods ended 30 June 2002 and 2001 CONSOLIDATED THE COMPANY ONLY Transactions with subsidiaries : Charter freight income Container pooling expenses Transactions with related parties : Commission expenses

20 The outstanding balances of the above transactions have been presented in the balance sheets as follows :- (Unit : Million Baht) CONSOLIDATED THE COMPANY ONLY 30 June December June December 2001 Trade accounts receivable - related parties Subsidiaries RCL Service SA RCL Feeder Pte Ltd ,349 1,357 Related parties Others ,978 2,127 Trade accounts payable - related parties Subsidiaries RCL Ship Management Pte Ltd Related parties Others PROMISSORY NOTES During the period, the Company issued Baht 1,000 million of negotiable one-year promissory notes, bearing interest at rates of 4.5 per annum, payable quarterly. 7. SHARE CAPITAL On 2 April 2002, the Company s board of directors approved the allocation of an additional 2,633,713 shares with a par value of Baht 10 each to a security company, at a price of Baht 43 per share

21 8. THE COMPANY S CORPORATE INCOME TAX The Company s operating results for the six-month period ended 30 June 2002 can be divided into BOI promoted activities and non-boi promoted activities as follows :- (Unit : Baht) THE COMPANY ONLY For the six-month period ended 30 June 2002 Tax payer number Total Total BOI NON-BOI BOI Promoted Promoted Promoted Revenues Freight income 283,462, , ,553, ,897,503 Share of profit from investment accounted for under equity method subsidiaries - 871,404, ,404,904 Share of profit from investment accounted for under equity method - associated - 12,331,255-12,331,255 companies Gain on exchange ,263,212 15,263,212 Other income 221,912 1,230,010 1,151 1,453,073 Total revenues 283,684, ,848, ,817,384 1,324,349,947 Expenses Cost of freight and operations 182,454, ,380 90,072, ,401,901 Administrative expenses 28,371, ,329 13,162,640 42,327,062 Loss on exchange 42,039, ,039,894 Interest expenses 20,769, ,915 44,961,618 66,195,264 Total expenses 273,635,626 2,131, ,196, ,964,121 Earnings before income tax 10,048, ,716,815 6,620, ,385,826 Corporate income tax - (3,281) - (3,281) Net earnings for the period 10,048, ,713,534 6,620, ,382, BANK GUARANTEES As at 30 June 2002, there were outstanding bank guarantees of approximately Baht 53 million (31 December 2001 : Baht 49 million) issued by the banks on behalf of the Company and its subsidiaries in respect of certain performance bonds as required in the normal course of business of the Company and its subsidiaries

22 10. COMMITMENT As at 30 June 2002, overseas subsidiaries had outstanding commitments in respect of lease agreements payable of approximately Baht 42 million (31 December 2001 : Baht 55 million). 11. FINANCIAL INFORMATION BY SEGMENT The Company s and its subsidiaries operations involve mainly a single industry segment, the business of feeder and vessel operations, and are carried on in geographic area in Thailand, Singapore, Hong Kong, Taiwan and other countries around the South China Sea. Financial information of the Company and its subsidiaries presented by geographical segment are as follows :- (Million Baht) CONSOLIDATED For the six-month period ended 30 June 2002 Thailand Singapore Hong Kong China Total Elimination Grand Total Freight income 485 6, ,122 (1,069) 6,053 Gross profit , ,066 Other income 41 Share of profit from investments accounted for under equity method - associated companies 12 Gain on exchange 482 Administrative expenses (370) Loss on disposal of vessel (49) Interest expenses (281) Corporate income tax (3) Minority interest 2 Net earnings for the period 900 Property, premises, vessels and equipment 5,114 9, ,599 (38) 14,561 Others 4,393 Total assets 18,

23 (Unit : Million Baht) CONSOLIDATED For the six-month period ended 30 June 2001 Thailand Singapore Hong Kong China Total Elimination Grand Total Freight income 1,306 6, ,045 (1,165) 6,880 Gross profit , ,413 Other income 49 Share of profit from investments accounted for under equity method - associated companies 6 Administrative expenses (401) Interest expenses (445) Loss on exchange (550) Corporate income tax (2) Minority interest (3) Net earnings for the period 67 (Million Baht) CONSOLIDATED As at 31 December 2001 Thailand Singapore Hong Kong China Total Elimination Grand Total Property, premises, vessels and equipment 5,235 9, ,143 (40) 15,103 Others 3,319 Total assets 18, RECLASSIFICATION OF ACCOUNTS Certain amounts in the financial statements for the three-month and six-month periods ended 30 June 2001 have been reclassified to conform to the current period classification, with no effect on previously reported net earnings or shareholders equity. 13. APPROVAL OF INTERIM FINANCIAL STATEMENTS These interim financial statements have been approved by the directors of the Company