The interim financial statements were authorised for issue by the executive directors on 9 November PDF Free Download

Note Contents 1 General information 2 Basis of preparation of the interim and new Thai Financial Reporting Standards 3 Changes in accounting policies 4 Related party transactions 5 Accounts receivable - trade and others 6 Available-for-sale investments 7 Investments in subsidiaries 8 Investments in associates 9 Investments in related companies 10 Investment properties 11 Property, plant and equipment 12 Accounts payable - trade and others 13 Employee benefit obligations 14 Segment information 15 Basic earnings per share 16 Dividends 17 Amalgamation of local subsidiaries 18 Commitments with non-related parties 19 Events after the reporting period 20 Thai Financial Reporting Standards not yet adopted 21 Reclassification of accounts 19

These notes form an integral part of the. The interim were authorised for issue by the executive directors on 9 November 2011. 1 General information Charoen Pokphand Foods Public Company Limited, the Company, is incorporated in Thailand and has its registered head office at 313 C.P. Tower, Silom Road, Kwaeng Silom, Khet Bangrak, Bangkok 10500, Thailand. The Company was listed on the Stock Exchange of Thailand on 21 December 1987. The ultimate parent company of the Company and subsidiaries (together referred to as the Group ) is Charoen Pokphand Group Company Limited which is incorporated in Thailand. The principal businesses of the Group are operating in agro-industrial and integrated food businesses. The Group s business operations are located throughout Thailand and overseas. The businesses are divided into 2 main segments as follows: 1) Livestock business comprises chicken, duck and pigs 2) Aquaculture business consists of shrimp and fish The two main businesses are vertically integrated, sourcing raw materials for animal feed production, manufacturing animal feed, breeding animals, farming animals for commercial purposes, processing meat, producing ready-to-eat food products, and selling their products to both domestic and overseas markets. The Group s main products are divided into 3 main categories as follows: 1) Animal feed 2) Animal farm products such as animal breeder, live animal, meat, etc. 3) Processed foods and ready meals Details of the Company s subsidiaries as at 30 September 2011 and 31 December 2010 were as follows: Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 Thailand operations and businesses related to operations in Thailand Livestock business Direct subsidiaries 1) Bangkok Produce Merchandising Public Company Limited Animal feed raw materials distribution and broiler integration Thailand 99.44 99.44 2) Bangkok Agro-Industrial Products Public Company Limited Animal feedmill and livestock farming Thailand 99.98 99.98 3) Bangkok Food Products Co., Ltd. Animal feedmill, livestock farming and food processing plant Thailand 99.99 99.99 4) Charoen Pokphand Northeastern Public Company Limited Animal feedmill and livestock farming Thailand 99.61 99.61 20

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 5) Charoen Pokphand Industry Co., Ltd. Animal feedmill and livestock farming Thailand 99.99 99.99 6) CPF Food Products Co., Ltd. Broiler chicken integration Thailand 99.99 99.99 7) C.P. Agro-Industry Co., Ltd. Livestock farming Thailand 99.99 99.99 8) C.P. Merchandising Co., Ltd. Investment and international trading Thailand 99.99 99.99 9) B.P. Food Products Co., Ltd. Animal feedmill and livestock farming Thailand 99.99 99.99 10) Bangkok Farm Co., Ltd. (1) Livestock farming and processing plant Thailand 99.99 99.99 11) Rajburi Foods Co., Ltd. Animal feedmill and livestock farming Thailand 99.99 99.99 12) Universal Food and Marketing Co., Ltd. Wholesale and retail food products Thailand 99.99 99.99 13) International Pet Food Co., Ltd. Pet food production and distribution Thailand 99.99 99.99 Indirect subsidiaries 1) CPF Trading Co., Ltd. Wholesale and retail food products Thailand 99.99 99.99 2) CPF Premium Foods Co., Ltd. Food processing plant Thailand 99.99 99.99 3) CPF Logistics Co., Ltd. Transportation services Thailand 99.99 99.99 4) C.P. Food Products Co., Ltd. (2) Restaurant Thailand 99.99 99.99 5) CPF Food Trading Co., Ltd. Importer and distributor of processed The People s meat and ready meals Republic of China 100.00 100.00 6) Charoen Pokphand (Taiwan) Co., Ltd. * Importer and distributor feedstuff additives and animal vaccines Taiwan 29.17 29.17 7) CP Foods (UK) Limited Importer and distributor of processed United 8) CPF Europe S.A. Importer and distributor of processed meat and ready meals Belgium 99.99 99.99 9) CPF Denmark A/S Importer and distributor of processed meat and ready meals Denmark 52.00 52.00 10) CPF Tokyo Co., Ltd. Importer and distributor of processed meat and ready meals Japan 99.99 99.99 11) Fusion Abbey Park Limited Importer and distributor of processed United 12) Fusion Alfrick Limited Importer and distributor of processed United 13) Fusion Bracewell Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-14) Fusion Bransford Limited Importer and distributor of processed United 15) Fusion Broadway Limited Importer and distributor of processed United 16) Fusion Brothwood Limited Importer and distributor of processed United 17) Fusion Calis Limited Importer and distributor of processed United 18) Fusion Carnoustie Limited Importer and distributor of processed United 19) Fusion Charlton Limited Importer and distributor of processed United 20) Fusion Crowle Limited Importer and distributor of processed United 21

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 21) Fusion Dalaman Limited Importer and distributor of processed United 22) Fusion Defford Limited Importer and distributor of processed United 23) Fusion Dormington Limited Importer and distributor of processed United 24) Fusion Driscoll Limited Importer and distributor of processed United 25) Fusion Dumbleton Limited Importer and distributor of processed United 26) Fusion Eastoe Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-27) Fusion Elmbridge Limited Importer and distributor of processed United 28) Fusion Everton Limited Importer and distributor of processed United 29) Fusion Exning Limited Importer and distributor of processed United 30) Fusion Fethiye Limited Importer and distributor of processed United 31) Fusion Gatley Limited Importer and distributor of processed United 32) Fusion Gocek Limited Importer and distributor of processed United 33) Fusion Gray Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-34) Fusion Grimley Limited Importer and distributor of processed United 35) Fusion Guarlford Limited Importer and distributor of processed United 36) Fusion Haddenham Limited Importer and distributor of processed United 37) Fusion Hadzor Limited Importer and distributor of processed United 38) Fusion Hallow Limited Importer and distributor of processed United 39) Fusion Harper Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-40) Fusion Hartford Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-41) Fusion Haverhill Limited Importer and distributor of processed United 42) Fusion Hawstead Limited Importer and distributor of processed United 43) Fusion Head Street Limited Importer and distributor of processed United 44) Fusion Heath Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-45) Fusion Irvine Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-22

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 46) Fusion Kaitaia Limited Importer and distributor of processed United 47) Fusion Kroma Limited Importer and distributor of processed United 48) Fusion Krone Limited Importer and distributor of processed United 49) Fusion Lidgate Limited Importer and distributor of processed United 50) Fusion Lineker Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-51) Fusion Littleworth Limited Importer and distributor of processed United 52) Fusion Madeley Limited Importer and distributor of processed United 53) Fusion Mcmahon Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-54) Fusion Mountfield Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-55) Fusion Moyes Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-56) Fusion Newlands Limited Importer and distributor of processed United 57) Fusion Niamh Limited Importer and distributor of processed United 58) Fusion Pershore Limited Importer and distributor of processed United 59) Fusion Priest Lane Limited Importer and distributor of processed United 60) Fusion Ratcliffe Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-61) Fusion Reid Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-62) Fusion Richardson Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-63) Fusion Samui Limited Importer and distributor of processed United 64) Fusion Saxham Limited Importer and distributor of processed United 65) Fusion Sharp Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-66) Fusion Sheedy Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-67) Fusion Soham Limited Importer and distributor of processed United 68) Fusion Southall Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-69) Fusion Stevens Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-70) Fusion Stowmarket Limited Importer and distributor of processed United 23

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 71) Fusion Swaffham Limited Importer and distributor of processed United 72) Fusion Thetford Limited Importer and distributor of processed United 73) Fusion Turgay Limited Importer and distributor of processed United 74) Fusion Uzumlu Limited Importer and distributor of processed United 75) Fusion Van Den Hauwe Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-76) Fusion Wadborough Limited Importer and distributor of processed United 77) Fusion Wellington Limited Importer and distributor of processed United 78) Fusion Whistler Limited Importer and distributor of processed United 79) Fusion Wright Limited Importer and distributor of processed United meat and ready meals Kingdom 52.00-80) Fusion Yamac Limited Importer and distributor of processed United Aquaculture business Direct subsidiaries 1) Klang Co., Ltd. (3) Shrimp processing plant Thailand 99.99 99.99 2) Seafoods Enterprise Co., Ltd. (2) Shrimp processing plant Thailand 99.99 99.99 3) Pokphand Aquatech Co., Ltd. (2) Aquatic feed production and distribution and aquaculture farm Thailand 99.99 99.99 4) C.P. Food Products, Inc. Importer and distributor of seafood United States products of America 100.00 100.00 Direct and indirect subsidiary 1) Thai Prawn Culture Center Co., Ltd. (4) Shrimp farming and processing plant Thailand - 99.90 Indirect subsidiary 1) CP Foods West, Inc. Importer and distributor of food United States products (operations wound up of America 100.00 100.00 in September 2010) Other businesses Direct subsidiaries 1) CPF Training Center Co., Ltd. Training center service provider Thailand 99.99 99.99 2) CPF IT Center Co., Ltd. Information technology service provider Thailand 99.99 99.99 Overseas operations Direct subsidiaries 1) Charoen Pokphand Foods Kenya Co., Ltd. Animal feedmill and livestock farming Kenya 99.99 99.99 24

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 2) Charoen Pokphand Foods Philippines Corporation 3) Charoen Pokhand Foods (Malaysia) Sdn. Bhd. (Formerly Calibre Nature (M) Sdn. Bhd.) Animal feed production and distribution and shrimp hatchery business Philippines 99.99 99.99 Investment in aquaculture integration business Malaysia 100.00 100.00 4) CPF Investment Limited Investment British Virgin Islands 100.00 100.00 5) C.P. Aquaculture (Beihai) Co., Ltd. Aquatic feed production and The People s distribution and aquaculture Republic of farming China 100.00 100.00 6) C.P. Aquaculture (Dongfang) Co., Ltd. Shrimp hatchery business The People s Republic of China 100.00 100.00 7) C.P. Aquaculture (Hainan) Co., Ltd. Aquaculture farming The People s Republic of China 100.00 100.00 Direct and indirect subsidiaries 1) Charoen Pokphand Foods (Overseas) LLC. Animal feedmill and livestock farming Russia 99.99 99.99 2) Charoen Pokphand (India) Private Limited Animal feedmill and livestock farming India 99.99 99.99 3) C.P. Standart Gida Sanayi ve Ticaret A.S. Chicken integration Turkey 100.00 100.00 Indirect subsidiaries 1) A.P.P. Enterprise, Inc. * Property lease-out Philippines 39.60 39.60 2) Arbor Acres (Taiwan) Co., Ltd. * Livestock farming Taiwan 16.21 16.21 3) Asia Aquaculture (M) Sdn. Bhd. Shrimp farming and processing plant Malaysia 100.00 100.00 4) Bright Excel Investments Limited Investment British Virgin Islands 100.00 100.00 5) C.P. Laos Co., Ltd. Animal feedmill and livestock farming Laos 99.61 99.61 6) Charoen Pokphand Enterprise (Taiwan) Co., Ltd. * Chicken integration and livestock farming Taiwan 32.41 32.41 7) Charoen Pokphand (Taiwan) Investment Limited Investment Bermuda Islands 100.00 100.00 8) Charoen Pokphand (USA), Inc. Broiler chicken integration (operations United States wound up in March 2004) of America 99.97 99.97 9) Chia Tai Lianyungang Co., Ltd. * Investment Hongkong 32.41 32.41 10) Chun Ta Investment Co., Ltd. Investment Taiwan 100.00 100.00 25

Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December 2011 2010 11) Coinaton Investments Limited Investment British Virgin Islands 100.00 100.00 12) CPF Agro LLC. Livestock farming Russia 99.99 99.99 13) Forward Pass Limited Investment British Virgin Islands 100.00 100.00 14) Lianyungang Chia Tai The People s Agro-industry Development Republic of Co., Ltd.* Animal feedmill China 22.69 22.69 15) New Splendid Holdings Limited Investment British Virgin Islands 100.00 100.00 16) Plenty Type Limited * Investment Cayman Islands 32.41 32.41 17) Star Feedmills (M) Sdn. Bhd. Aquatic feed production and distribution Malaysia 100.00 100.00 18) Ta Chung Investment Co., Ltd. Investment Taiwan 100.00 100.00 19) Taiwan Sizzler Co., Ltd. (2) Restaurant Taiwan 32.41 32.41 (1) Transferred the principal activity, food processing, to CPF Food Products Co., Ltd. (2) In the process of liquidation (3) Transferred the principal activities, shrimp farming and processing plant, to the Company (4) Registered the completeness of liquidation in the second quarter of 2011 * The Company has the power to govern those companies. 2 Basis of preparation of the interim and new Thai Financial Reporting Standards 2.1 Statement of compliance The interim issued for Thai reporting purposes are prepared in the Thai language. This English translation of the interim has been prepared for the convenience of readers not conversant with the Thai language. The interim are prepared on a condensed basis in accordance with Thai Accounting Standard No. 34 (revised 2009) Interim Financial Reporting; including related interpretations and guidelines promulgated by the Federation of Accounting Professions ( FAP ); applicable rules and regulations of the Thai Securities and Exchange Commission. The interim are prepared to provide an update on the for the year ended 31 December 2010. They do not include all of the financial information required for full annual but focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim should be read in conjunction with the for the year ended 31 December 2010. The Group has applied new and revised Thai Financial Reporting Standards ( TFRS ) that have been issued during 2010 by the FAP for the preparation of the interim for the three-month and nine-month periods ended 30 September 2011. Details are as follows: 26

TFRS TAS 1 (revised 2009) TAS 2 (revised 2009) TAS 7 (revised 2009) TAS 8 (revised 2009) TAS 10 (revised 2009) TAS 12 TAS 16 (revised 2009) TAS 17 (revised 2009) TAS 18 (revised 2009) TAS 19 TAS 23 (revised 2009) TAS 24 (revised 2009) TAS 27 (revised 2009) TAS 28 (revised 2009) TAS 33 (revised 2009) TAS 34 (revised 2009) TAS 36 (revised 2009) TAS 37 (revised 2009) TAS 38 (revised 2009) TAS 40 (revised 2009) TFRS 3 (revised 2009) TFRS 5 (revised 2009) Topic Presentation of Financial Statements Inventories Statement of Cash Flows Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Income Tax Property, Plant and Equipment Leases Revenue Employee Benefits Borrowing Costs Related Party Disclosures and Financial Statements Investments in Associates Earnings per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Investment property Business Combinations Non-current Assets Held for Sale and Discontinued Operations The adoption of these new and revised TFRS has resulted in changes in the Group s accounting policies. The effects of these changes are disclosed in note 3 to the interim. Except for the changes referred to above, accounting policies and methods of computation applied in these interim are consistent with those applied in the financial statements for the year ended 31 December 2010. In addition to the above new and revised TFRS, the FAP has issued during 2010 a number of other TFRS which become effective for beginning on or after 1 January 2013 and have not been adopted in the preparation of these interim. These new and revised TFRS are disclosed in note 20 to the interim. 2.2 Presentation currency The interim are presented in Thai Baht. All financial information presented in Thai Baht has been rounded in the notes to the interim to the nearest million Baht unless otherwise stated. 2.3 Use of judgements and estimates The preparation of interim in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. 27

In preparing these interim, the judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the for the year ended 31 December 2010. Except for the changes principally derive from the adoption of new and revised TFRS from 1 January 2011. Measurement of employee benefit obligations The calculation of the employee benefit obligations is subject to the assumptions on discount rate, salary increase rate and mortality rate as set out in note 13 to the interim financial statements. 2.4 Financial information reviewed by other auditors The interim of all subsidiaries and associates included in the preparation of the consolidated interim for the three-month and nine-month periods ended 30 September 2011 and 2010 were reviewed by the Company s auditors, except for the interim for the three-month and nine-month periods then ended of certain foreign subsidiaries and associates which were reviewed by other auditors. Financial information reviewed by other auditors are as follows: Statement of financial position as at 30 September 2011 Total assets of subsidiaries 24,755 Direct and indirect investments in associates 4,340 Total 29,095 Three months Nine months Statement of income for the three-month and nine-month periods ended 30 September 2011 Total revenues of subsidiaries 14,430 40,335 Share of profit of associates 415 966 Total 14,845 41,301 Statement of income for the three-month and nine-month periods ended 30 September 2010 Total revenues of subsidiaries 13,156 37,934 Share of profit of associates 121 405 Total 13,277 38,339 28

3 Changes in accounting policies 3.1 Overview From 1 January 2011, the Group has changed its significant accounting policies consequent to the adoption of new and revised Thai Financial Reporting Standards ( TFRS ) as set out in note 2 to the interim are as follows: Presentation of Accounting for investment properties Accounting for employee benefits Details of the new accounting policies adopted by the Group and the impact of the changes in each accounting policies on the interim are included in notes 3.2 to 3.4 to the interim. The impacts of 2011 and 2010 equity are summarised as follows: Note financial financial statements statements Statement of financial position Equity at 1 January 2010 - as previously reported 54,979 44,641 Changes as a result of the adoption retrospectively - Measurement of investment properties 3.3 (159) (7) Equity at 1 January 2010 - restated 54,820 44,634 Equity at 31 December 2010 - as previously reported 61,103 48,118 Changes as a result of the adoption retrospectively - Measurement of investment properties 3.3 (159) (7) Equity at 31 December 2010 and 1 January 2011 - restated prior to retained earnings adjustment 60,944 48,111 Changes as a result of an adjustment to retained earnings as at 1 January 2011 - Accounting for employee benefit obligations 3.4 (2,307) (847) Equity at 1 January 2011 - restated 58,637 47,264 3.2 Presentation of From 1 January 2011, the Group has applied TAS 1 (revised 2009) Presentation of Financial Statements. Under the revised standard, a set of comprises: Statement of financial position; Statement of income; Statement of comprehensive income; Statement of changes in equity; Statement of cash flows; and Notes to the. 29

For the statement of comprehensive income, the Group is required to present all changes in non-equity, such as currency translation differences and revaluation differences on assets as other comprehensive income in the statement of comprehensive income. Comparative information has been re-presented so that it also is in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on reported profit or earnings per share. 3.3 Accounting for investment properties From 1 January 2011, the Group has applied TAS 40 (revised 2009) Investment property, which has been applied retrospectively in accordance with the transitional provisions of the revised standard. New accounting policy The Group has selected the cost model for accounting for its investment properties, which has been applied retrospectively, including the reversal of any amount held in revaluation surplus for the investment properties recorded in equity and deferred tax liabilities to present the value of investment properties at cost model. Previous accounting policy Prior to the year 2011, investment properties were presented under the account, Land held for future projects and were measured using the revaluation model. Revaluation changes were recognised in equity in accordance with the provision of TAS 16 Property Plant and Equipment. The impacts on 2011 and 2010 were as follows: 31 December 31 December 2010 and 2010 and 30 September 1 January 30 Sebtember 1 January 2011 2011 2011 2011 Statement of financial position Decrease in revaluation differences on assets 8 159-7 Decrease in land held for future project - (1,121) - (98) Decrease in property, plant and equipment (29) - (48) - Increase in investment properties 17 893 48 88 Decrease in deferred tax liabilities 4 69-3 30

3.4 Accounting for employee benefits From 1 January 2011, the Group has applied TAS 19 Employee Benefits. The Group has selected to adjust retained earnings as at 1 January 2011 in accordance with the transitional provisions of the revised standard. New accounting policy The Group s obligations in respect of post-employment benefits under defined benefit plan is recognised in the based on calculations performed by a qualified actuary using the projected unit credit method. Previous accounting policy Prior to the year 2011, the Group recorded certain obligations on the provision recognition. The impacts on 2011 were as follows: Note financial financial statements statements Statement of financial position as at 1 January 2011 Decrease in investments in associates (19) - Increase in deferred tax assets 944 367 Increase in employee benefit obligations (3,232) (1,214) Decrease in retained earnings 2,216 847 Increase in other components of equity (35) - Decrease in non-controlling interests 126 - Statement of income for the three-month period ended 30 September 2011 Increase in employee benefits expenses 13 132 37 Decrease in profit before income tax expense 132 37 Decrease in basic earnings per share (in Baht) 0.02 0.01 Statement of income for the nine-month period ended 30 September 2011 Increase in employee benefits expenses 13 376 111 Decrease in profit before income tax expense 376 111 Decrease in basic earnings per share (in Baht) 0.06 0.02 4 Related party transactions Related parties are those parties considered to be related to the Group. Related parties have the ability, directly or indirectly, to control the Group or exercise significant influence over the Group in making financial and operating decisions or where the Group and parties are subject to common control or common significant influence from the ultimate parent company of the Group. 31

The pricing policies for particular types of transactions are explained further below: Transactions Sale of goods Purchase of raw material and goods Purchase and sale of property, plant and equipment Purchase and sale of investments Interest income/interest expense Dividend income Rental and service fees Technical service fees Insurance premium Trademark license fee Other income/other expenses Pricing policies The price list of the Group The price list of the suppliers Fair value Fair value Source of fund cost plus fund management expenses Right to receive dividends Standard rates as specified by the lessors or service providers Rate per quantity of feed production/rate per sale value of animal feed Standard rates as specified by the insurers Rate per sales value under trademark Standard service rates as specified by the service providers 4.1 Significant transactions for the three-month and nine-month periods ended 30 September 2011 and 2010 with related parties For the three-month periods ended 30 September2011 and 2010 (a) Revenues Subsidiaries Sale of goods - - 7,986 6,239 Dividend income - - 351 1,407 Interest income - - 469 313 Rental, service and other income - - 2 16 Associates and related companies Sale of goods 2,494 2,051 276 152 Software application income 7 8 - - Training and seminar income 8 3 - - Rental, service and other income 13 10 5 1 (b) Expenses and others Ultimate parent company Purchase of raw materials and goods 1,648 1,404 592 640 Technical service fees 109 127 31 28 Trademark license fees 14 17 4 3 32

For the three-month periods ended 30 September2011 and 2010 (Continued) (b) Expenses and others (Continued) Subsidiaries Purchase of raw materials and goods - - 3,720 3,749 Software application fees - - 65 37 Rental and service fees - - 15 17 Training and seminar fees - - 12 10 Purchase of equipment and others - - - 1 Interest and other expenses - - 3 1 Associates and related companies Purchase of raw materials and goods 3,816 3,243 508 681 Rental and service fees 313 288 138 121 Construction costs of buildings, structures and others 166 80 80 27 Purchase of equipment and others 77 25 62 16 Insurance premium 56 52 23 22 Trademark license fees 7 - - - Software application fees 7 7 - - Other expenses 290 272 79 56 For the nine-month periods ended 30 September 2011 and 2010 (a) Revenues Subsidiaries Sale of goods - - 20,130 17,592 Dividend income - - 3,217 4,604 Interest income - - 1,267 888 Gain on sale of property, equipment and others - - - 15 Rental, service and other income - - 2 46 Associates and related companies Sale of goods 7,348 5,866 683 498 Dividend income 15 19 13 19 Interest income - 3 - - Software application income 19 16 - - Training and seminar income 13 7 - - Rental, service and other income 45 38 7 3 33

For the nine-month periods ended 30 September 2011 and 2010 (Continued) (b) Expenses and others Ultimate parent company Purchase of raw materials and goods 4,805 4,030 1,857 1,762 Technical service fees 301 280 82 74 Trademark license fees 39 30 12 8 Subsidiaries Purchase of raw materials and goods - - 9,197 9,564 Software application fees - - 155 110 Rental and service fees - - 45 41 Training and seminar fees - - 28 26 Purchase of equipment and others - - - 2 Interest and other expenses - - 6 3 Associates and related companies Purchase of raw materials and goods 8,993 7,711 1,196 1,683 Rental and service fees 878 809 376 336 Construction costs of buildings, structures and others 509 219 185 92 Purchase of equipment and others 198 85 167 53 Insurance premium 160 159 70 65 Trademark license fees 21 19 - - Software application fees 21 20 - - Other expenses 758 679 193 140 4.2 Balances as at 30 September 2011 and 31 December 2010 with related parties 4.2.1 Accounts receivable - trade and others 30 September 31 December 30 September 31 December Subsidiaries C.P. Merchandising Co., Ltd. - - 1,447 1,991 Bangkok Produce Merchandising Public Company Limited - - 582 315 34

4.2.1 Accounts receivable - trade and others (Continued) 30 September 31 December 30 September 31 December CP Foods (UK) Limited - - 388 347 CPF Europe S.A. - - 258 213 C.P. Food Products, Inc. - - 232 317 CPF Trading Co., Ltd. - - 188 247 CPF Premium Foods Co., Ltd. - - 179 3 Charoen Pokphand Northeastern Public Company Limited - - 154 200 CPF Food Products Co., Ltd. - - 125 253 CPF Food Trading Co., Ltd. - - 111 107 Bangkok Agro-Industrial Products Public Company Limited - - 95 65 B.P. Food Products Co., Ltd. - - 68 86 C.P. Agro-Industry Co., Ltd. - - 59 55 Charoen Pokphand Foods (Overseas) LLC. - - 43 41 CPF Tokyo Co., Ltd. - - 13 48 Other - - 35 42 Total - - 3,977 4,330 Associates CP ALL Public Company Limited 854 617 - - Counter Service Co., Ltd. 158 280 3 6 C.P. Retailing and Marketing Co., Ltd. 157 149 7 5 PK Agro-Industrial Products (M) Sdn. Bhd. 68 - - - Allianz C.P. General Insurance Co., Ltd. 51 59 42 52 Other 24 36 19 7 Total 1,312 1,141 71 70 Related companies Charoen Pokphand Intertrade Singapore (Pte) Ltd. 271 260 5 3 35

4.2.1 Accounts receivable - trade and others (Continued) 30 September 31 December 30 September 31 December C.P. Consumer Products Co., Ltd. 115 118 - - Perfect Companion Group Co., Ltd. 85 69 38 36 Advance Pharma Co., Ltd. 75 13 71 10 Shanghai Lotus Supermarket Chain Store Co., Ltd. 54 23 - - Farm Pichit Thai Livestock Co., Ltd. 34 24 - - Chester's Food Co., Ltd. 23 27 - - Chia Tai Food Product (Shanghai) Co., Ltd. 12 18 7 7 Tacham Agriculture- Industrial Company Limited 11 12 - - Tacham Farm Co., Ltd. 10 23 - - Chia Tai Aquaculture (Zhuhai) Co., Ltd. 10 39 - - C.P. Intertrade Co., Ltd. 5 62 - - Yongan Chai Tai Co., Ltd. - 73 - - Other 57 71 25 25 Total 762 832 146 81 Grand total 2,074 1,973 4,194 4,481 4.2.2 Short-term loans 36 Outstanding balance 30 September 31 December Average 2011 2010 balance Subsidiaries C.P. Merchandising Co., Ltd. 10,550 4,850 6,189 Bangkok Food Products Co., Ltd. 2,600 2,475 2,739 CPF Food Products Co., Ltd. 2,250 2,150 1,966 Bangkok Produce Merchandising Public Company Limited 2,000 3,050 1,455 Bangkok Agro-Industrial Products Public Company Limited 1,485 2,035 1,902

4.2.2 Short-term loans (Continued) Outstanding balance 30 September 31 December Average 2011 2010 balance Charoen Pokphand Northeastern Public Company Limited 1,260 1,280 1,326 Charoen Pokphand Industry Co., Ltd. 1,050 1,165 1,109 Rajburi Foods Co., Ltd. 730 1,105 921 B.P. Food Products Co., Ltd. 240 565 434 CPF IT Center Co., Ltd. 235 185 210 CPF Investment Limited 178-77 C.P. Aquaculture (Beihai) Co., Ltd. 131 127 128 International Pet Food Co., Ltd. 120 120 120 C.P. Aquaculture (Hainan) Co., Ltd. 93 90 91 C.P. Aquaculture (Dongfang) Co., Ltd. 85 82 83 C.P. Food Products, Inc. 31 30 30 CPF Premium Foods Co., Ltd. - 160 46 CPF Training Center Co., Ltd. - 50 42 Total 23,038 19,519 18,868 The Company computes the average movement from the outstanding balances of short-term loans at the end of each month excluding accrued interest income. 4.2.3 Accrued dividend income 30 September 31 December 2011 2010 Subsidiaries Charoen Pokphand (India) Private Limited 354 - Bangkok Produce Merchandising Public Company Limited - 418 Rajburi Foods Co., Ltd. - 165 Charoen Pokphand Northeastern Public Company Limited - 194 B.P. Food Products Co., Ltd. - 186 Charoen Pokphand Industry Co., Ltd. - 133 Bangkok Agro-Industrial Products Public Company Limited - 112 C.P. Agro-Industry Co., Ltd. - 100 Bangkok Food Products Co., Ltd. - 400 Total 354 1,708 37

4.2.4 Accrued interest income 30 September 31 December 2011 2010 Subsidiaries 54 2 4.2.5 Long-term loans Outstanding balance 30 September 31 December Average 2011 2010 Balance Subsidiaries Charoen Pokphand Foods (Overseas) LLC. 1,460 1,585 1,586 Bangkok Agro-Industrial Products Public Company Limited 1,300 1,600 1,467 Bangkok Food Products Co., Ltd. 1,300 1,600 1,467 Charoen Pokphand Northeastern Public Company Limited 780 960 880 Charoen Pokphand Industry Co., Ltd. 520 640 587 B.P. Food Products Co., Ltd. 500 650 583 CPF Investment Limited 356 344 347 Total 6,216 7,379 6,917 Less current portion (1,756) (1,475) Net 4,460 5,904 The Company computes the average movement from the outstanding balances of long-term loans at the end of each month excluding accrued interest income. 4.2.6 Accounts payable - trade and others 30 September 31 December 30 September 31 December Ultimate parent company Charoen Pokphand Group Company Limited 299 206 94 61 38

4.2.6 Accounts payable - trade and others (Continued) 30 September 31 December 30 September 31 December Subsidiaries Bangkok Produce Merchandising Public Company Limited - - 326 241 Bangkok Agro- Industrial Products Public Company Limited - - 58 127 Bangkok Food Products Co., Ltd. - - 51 57 Charoen Pokphand Northeastern Public Company Limited - - 18 20 Rajburi Foods Co., Ltd. - - 14 16 CPF IT Center Co., Ltd. - - 13 - CPF Food Products Co., Ltd. - - 12 19 C.P. Agro-Industry Co., Ltd. - - 5 4 CPF Trading Co., Ltd. - - 4 8 CPF Training Center Co., Ltd. - - 4 3 Other - - 5 8 Total - - 510 503 Associates C.P. Retailing and Marketing Co., Ltd. 72 39 - - C.P. Vietnam Corporation (Formerly C.P. Vietnam Livestock Corporation) 28 26 26 2 C.P. Cambodia Co., Ltd. 10 - - - Retailink (Thailand) Co., Ltd. 6 2 - - Allianz C.P. General Insurance Co., Ltd. 5 1 - - Arbor Acres Thailand Company Limited. 4 - - - PK Agro-Industrial Products (M) Sdn. Bhd. - 24 - - Other 7 15 2 1 Total 132 107 28 3 39

4.2.6 Accounts payable - trade and others (Continued) 30 September 31 December 30 September 31 December Related companies C.P. Poly-Industry Co., Ltd. 66 51 41 25 K.S.P. Equipment Co., Ltd. 64 50 34 24 CNC International Co., Ltd. 59 66 - - C.P. Intertrade Co., Ltd. 57 30 5 8 True Leasing Co., Ltd. 45 47 22 21 Kasetphand Industry Co., Ltd. 44 43 29 17 Qingdao Chia Tai Co., Ltd. 34 10 - - Dynamic Transport Co., Ltd. 33 60 21 19 Ceneplex Co., Ltd. 26 19 18 15 Freewill Solutions Co., Ltd. 22 28 - - C.P. Interfood (Thailand) Co., Ltd. 21 21 - - Advance Pharma Co., Ltd. 17 13 6 6 Other 163 2 42 51 Total 651 440 218 186 Grand total 1,082 753 850 753 4.2.7 Short-term borrowings Outstanding balance 30 September 31 December Average 2011 2010 balance Subsidiaries Thai Prawn Culture Center Co., Ltd. - 49 27 C.P. Agro-Industry Co., Ltd. 100-45 Total 100 49 72 The Company computes the average movement from the outstanding balances of shortterm borrowings at the end of each month excluding accrued interest expense. 40

4.3 Balances of loans/borrowings and interest rates Balances of loans/borrowings and interest rates as at 30 September 2011 and 31 December 2010 were as follows: Average Balance with Balance with interest rate fixed interest rate floating interest rate (%) 30 31 30 31 30 31 September December September December September December 2011 2010 Short-term loans to subsidiaries 309 299 22,729 19,220 7.48 6.37 Long-term loans to subsidiaries 5,860 7,035 356 344 6.89 5.56 Short-term borrowings from subsidiaries - - 100 49 2.25 1.00 4.4 Key management personnel compensations Key management personnel compensations consist of: Three-month periods ended 30 September Short-term employee benefits 112 163 50 71 Post-employment under defined benefit plans 2-1 - Total 114 163 51 71 Nine-month periods ended 30 September Short-term employee benefits 415 536 181 223 Post-employment under defined benefit plans 8-3 - Total 423 536 184 223 As at 30 September Employee benefit obligations 274-88 - Total 274-88 - 41

4.5 Commitments As at 30 September 2011 and 31 December 2010 the Group had commitments with related parties as follows: 4.5.1 Capital commitments 30 September 31 December 30 September 31 December Contracted but not provided for Mainly represents contracts for construction of buildings and structures and purchase of machinery and others 85 54 65 9 4.5.2 Commitments under operating lease agreements 30 September 31 December 30 September 31 December Within one year 611 675 298 341 Over one year but within five years 948 997 310 332 Over five years 52 82 - - Total 1,611 1,754 608 673 The Company and certain subsidiaries had lease agreements with related parties covering office premises (including related facilities service agreement), land, farms and vehicles for periods of 1 to 10 years, expiring during 2011 to 2020. 42

4.6 Significant agreements As at 30 September 2011 the Group had the following significant agreements with related parties. 4.6.1 Technical service agreements The Company and certain subsidiaries had technical service agreements with the ultimate parent company, Charoen Pokphand Group Company Limited ( CPG ). Under the terms of the agreements, CPG agrees to research and develop the raw material ingredients for the production of animal feeds for the Company and subsidiaries. In this regard, the Company and subsidiaries are committed to pay the technical service fee, which is calculated from the feed production quantity dependent upon the types of feed as stipulated in the agreements, to CPG. The minimum service fee ranges from Baht 0.1 million to Baht 1.3 million per month. These agreements shall be in effect starting from 1 July 2007 to 30 June 2010. The Company and certain subsidiaries have extended the agreements for an additional period until 31 December 2011 with the same conditions and fee rates. In addition, two foreign subsidiaries had agreements to obtain the technical service assistance relating to animal feed manufacturing from CPG. The foreign subsidiaries are committed to pay service fees to CPG in accordance with the terms and conditions stipulated in the agreements. 4.6.2 Trademark agreements The Company and certain subsidiaries had trademark agreements with the ultimate parent company, Charoen Pokphand Group Company Limited ( CPG ), for the right to use trademark. In this regard, the Company and subsidiaries are committed to pay the trademark license fees to CPG at the rates of 0.2% and 0.4% of the sale value of each product as stipulated in the agreements. These agreements shall be in effect starting from 1 January 2009 to 31 December 2011. A subsidiary had a trademark agreement with a related company, Star Marketing Co., Ltd. ( STAR ), for the right to use STAR trademark. In this regard, the subsidiary is committed to pay the trademark license fee to STAR, which is calculated from the sale value under the trademark at the rates as stipulated in the agreement. This agreement shall be in effect starting from 1 January 2008 to 31 December 2012. 4.6.3 Application system service agreement A subsidiary had an application system service agreement with a related company, Freewill Solutions Co., Ltd. ( Freewill ). Under the terms of the agreement, Freewill agrees to provide the subsidiary the application system service. In this regard, the subsidiary is committed to pay the application system service fee to Freewill at the agreed rate stipulated in the agreement. This agreement shall be in effect starting from 1 January 2009 to 31 December 2013. 43

4.6.4 Service agreements for import and export transactions The Company and certain subsidiaries had service agreements with a related company, C.P. Intertrade Co., Ltd. ( CPI ). Under the terms of the agreements, CPI agrees to provide documentation services and others relating to import and export transactions of the Company and subsidiaries. In this regard, the Company and subsidiaries are committed to pay the service fees to CPI at the agreed rate stipulated in the agreements. These agreements shall be in effect since 1 July 2011 to 30 June 2013. 5 Accounts receivable - trade and others Note 30 September 31 December 30 September 31 December Related parties 4 2,074 1,973 4,194 4,481 Other parties 13,700 13,839 3,169 3,324 Total 15,774 15,812 7,363 7,805 Less allowance for doubtful accounts (382) (427) (36) (39) Net 15,392 15,385 7,327 1 7,766 Bad and doubtful debts expense (reversal of allowance for doubtful accounts) for the: - three-month period ended 30 September 28 11 (1) 17 - nine-month period ended 30 September (14) 11 (3) 28 The outstanding balances of the problem accounts receivable - trade and others as at 30 September 2011 and 31 December 2010 classified by aging were as follows: 30 September 31 December 30 September 31 December Periods over credit terms: Over 3 months to 6 months 6 11-3 Over 6 months to 12 months 29 21-9 Over 12 months 308 334 36 45 Total 343 366 36 57 44

6 Available-for-sale investments Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: 2011 2010 At 1 January 1,374 630 Acquisitions/additional investments 230 - Currency translation differences 2 (6) Changes in fair value (279) 430 At 30 September 1,327 1,054 At 31 December 1,374 Details of available-for-sale investments Available-for-sale investments as at 30 September 2011 and 31 December 2010 were as follows: Ownership interest (both direct and indirect) (%) 30 31 30 31 30 31 September December September December September December 2011 2010 Marketable securities Equity securities held as available-for-sale - at fair value True Corporation Public Company Limited - at cost 1.75 1.75 1,510 1,280 - - Siam Makro Public Company Limited - at cost 1.01 1.01 10 8 - - Changes in fair value (193) 86 - - Total 1,327 1,374 - - 45

7 Investments in subsidiaries Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: At 1 January - - 21,080 19,708 Acquisitions/additional investments - - 1,261 1,489 Proceeds from liquidation of subsidiaries - - (416) (42) At 30 September - - 21,925 21,155 At 31 December - 21,080 46

Details of investments in subsidiaries and dividend income Investments in subsidiaries as at 30 September 2011 and 31 December 2010, and dividend income for the nine-month periods ended 30 September 2011 and 2010 were as follows: Ownership interest Dividend income (%) Paid-up capital Cost method Impairment At cost - net for nine months ended 30 31 30 31 30 31 30 31 30 31 30 30 September December September December September December September December September December September September Non-marketable securities Bangkok Produce Merchandising Public Company Limited 99.44 99.44 600 600 1,230 1,230 - - 1,230 1,230 835 388 Bangkok Agro-Industrial Products Public Company Limited 99.98 99.98 1,500 1,500 2,981 2,981 - - 2,981 2,981 75 787 Thai Prawn Culture Center Co., Ltd. - 41.00-36 - 16 - - - 16 - - Bangkok Food Products Co., Ltd. 99.99 99.99 667 667 1,174 1,174 - - 1,174 1,174-193 Klang Co., Ltd. 99.99 89.50 300 300 336 298 - - 336 298 - - Charoen Pokphand Northeastern Public Company Limited 99.61 99.61 300 300 1,282 1,282 - - 1,282 1,282 209 672 Charoen Pokphand Industry Co., Ltd. 99.99 99.99 167 167 709 709 - - 709 709 84 330 CPF Food Products Co., Ltd. 99.99 75.00 2,800 2,800 3,744 2,849 - - 3,744 2,849 - - CPF Training Center Co., Ltd. 99.99 99.99 20 20 20 20 - - 20 20 - - 47

Details of investments in subsidiaries and dividend income (Continued) Ownership interest Dividend income (%) Paid-up capital Cost method Impairment At cost - net for nine months ended 30 31 30 31 30 31 30 31 30 31 30 30 September December September December September December September December September December September September CPF IT Center Co., Ltd. 99.99 99.99 250 250 250 250 - - 250 250 - - Seafoods Enterprise Co., Ltd. 99.99 99.99 20 20 20 20 - - 20 20 - - C.P. Agro-Industry Co., Ltd. 99.99 99.99 400 400 547 547 - - 547 547 36 80 C.P. Merchandising Co., Ltd. 99.99 99.99 1,850 1,850 1,850 1,850 - - 1,850 1,850 1,249 879 B.P. Food Products Co., Ltd. 99.99 99.99 345 345 335 335 - - 335 335 155 293 Bangkok Farm Co., Ltd. 99.99 99.99 42 42 99 99 - - 99 99-34 Pokphand Aquatech Co., Ltd. 99.99 99.99-400 - 400 - - - 400-560 Universal Food and Marketing Co., Ltd. 99.99 99.99 62 62 62 62 - - 62 62 - - Rajburi Foods Co., Ltd. 99.99 99.99 470 470 715 715 - - 715 715 223 388 International Pet Food Co., Ltd. 99.99 99.99 60 60 60 60 - - 60 60 - - C.P. Aquaculture (Beihai) Co., Ltd. 100.00 100.00 236 236 236 236 - - 236 236 - - C.P. Aquaculture (Dongfang) Co., Ltd. 100.00 100.00 144 144 144 144 - - 144 144 - - C.P. Aquaculture (Hainan) Co., Ltd. 100.00 100.00 126 126 126 126 - - 126 126 - - C.P. Food Products, Inc. 100.00 100.00 212 212 306 306 - - 306 306 - - C.P. Standart Gida Sanayi ve Ticaret A.S. 25.39 25.39 2,341 2,341 511 511 - - 511 511 - - 48

8 Investments in associates Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: Note At 1 January - as previously reported 14,601 10,556 290 290 Impact of changes in accounting policies 3 (19) - - - At 1 January - restated 14,582 10,556 290 290 Share of profit of associates 2,976 1,872 - - Dividend income from associates (1,374) (1,016) - - Currency translation differences (24) (379) - - Equity in associates - (524) - - Acquisitions/additional investments 6,279 3,454 493 - Disposals (103) (16) - - Other (2) 2 - - At 30 September 22,334 13,949 783 290 At 31 December 14,601 290 50

Details of investments in associates and dividend income Investments in associates as at 30 September 2011 and 31 December 2010, and dividend income for the nine-month periods ended 30 September 2011 and 2010 were as follows: Ownership interest (both direct and indirect) Dividend income (%) Paid-up capital Cost method Equity method Impairment At equity - net for nine months ended 30 31 30 31 30 31 30 31 30 31 30 31 30 30 September December September December September December September December September December September December September September 2011 2010 Marketable security CP ALL Public Company Limited 31.25 28.83 4,493 4,493 12,898 7,124 16,898 10,611 - - 16,898 10,611 1,335 978 Total 12,898 7,124 16,898 10,611 - - 16,898 10,611 1,335 978 Non-marketable securities Nava 84 Co., Ltd. 25.00 25.00 1,203 1,203 301 301 160 160 - - 160 160 - - Ross Breeders Siam Co., Ltd. 49.99 49.99 70 70 35 35 81 83 - - 81 83 22-12 Allianz C.P. General Insurance Co., Ltd. 24.46 24.46 300 300 74 74 137 139 - - 137 139 4 7 Arbor Acres Thailand Co., Ltd. 49.99 49.99 4 4 2 2 168 161 - - 168 161 13 19 C.P. Aquaculture (India) Private Limited 31.70 31.70 192 192 175 175 560 498 - - 560 498 - - C.P. Cambodia Co., Ltd. 25.00-880 - 493-550 - - - 550 - - - 51

Details of investments in associates and dividend income (Continued) Ownership interest (both direct and indirect) Dividend income (%) Paid-up capital Cost method Equity method Impairment At equity - net for nine months ended 30 31 30 31 30 31 30 31 30 31 30 31 30 30 September December September December September December September December September December September December September September 2011 2010 C.P. Vietnam Corporation (Formerly C.P. Vietnam Livestock Corporation) 29.18 29.18 1,493 1,493 291 291 2,130 1,572 - - 2,130 1,572 - - Charoen Pokphand Holdings (Malaysia) Sdn. Bhd. 49.66 49.66 353 353 176 176 1,650 1,377 - - 1,650 1,377 - - Total 1,547 1,054 5,436 3,990 - - 5,436 3,990 39 38 Grand total 14,445 8,178 22,334 14,601 - - 22,334 14,601 1,374 1,016 The Company accounts for its investment in ordinary shares of an associate (CP ALL Public Company Limited), which is a listed company in the Stock Exchange of Thailand, in the consolidated by the equity method. As at 30 September 2011 the fair value of this investment was Baht 67,065 million (31 December 2010: Baht 50,874 million). 52

The interim financial statements were authorised for issue by the executive directors on 9 November 2011.