ROBINS : Annual Report 2003 by robins robins

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Message from The Preident

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General Information

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Financial Hightlights

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Nature of Business

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Organization Chart of The Group

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Risk Factors

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Shareholding Structure

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Organization Structure

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Management

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Internal Control

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Inter-Company Transactions

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Management Discussion and Analysis

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Financial Statements

ROBINSON

“ Ïπ®“°°√√¡°“√ºŸÈ®—¥°“√„À≠Ë Message from The President ⌫  ⌫⌫⌫⌫ ⌫⌫ ⌫ ⌫   ⌫   ⌫⌫   ⌦⌫ ⌫   ⌫ ⌫  ⌦ ⌫    ⌫⌫ ⌫    ⌫      ⌦ ⌦    ⌫        ⌫    ⌫  ⌫    ⌫⌫  ⌫  ⌫ ⌦         ⌫  ⌦ ⌫ ⌫  ⌫   ⌫⌫   ⌫ ⌫  ⌫       ⌦             ⌫    ⌫  ⌦   ⌫⌫⌫  ⌦    ⌦ ⌫      ⌫   ⌫⌦   ⌦⌫   ⌦ ⌫    ⌫ ⌫      ⌫⌫    ⌫           ⌫  ⌫   ⌫   ⌫⌫     ⌫  

⌫     2

ROBINSON

The year 2003 saw the Thai economy growing at an impressive rate, and all the signs indicate that growth will continue unabated. With greater consumer spending power, changing lifestyles and more varied demand, continuing growth has had a favourable effect on the business climate generally, including the retail business. In 2003 Robinson had re-launched its exciting new image building campaign to reposition the company under the concept of, "Robinsonâ&#x20AC;Ś Your Life Vitalizer". It was accompanied by significant improvements in its merchandising and services. Store ambience and dĂŠcor has undergone a stylish transformation both inside and out. At the same time, the company has conducted marketing activities designed to enhance customer satisfaction and attract new groups of customers. In terms of management, the company has revitalized its systems for product selection, purchasing and inventory, while implementing cost-saving programmes and space utilization programmes. These efforts allowed the Company to increase customer satisfaction and profitability which resulted in substantial growth in net profit in 2003. In view of financial position, after entering into Rehabilitation Plan since 2000, the Company has successfully implemented all major steps under the Plan, including the repayment of Notes ahead of the agreed schedule. In addition, the company has introduced a measure to reduce risks arising from the final repayment of Notes due in 2005 in the form of a Voluntary Debt Refinance Programme. It has obtained credit facilities to repurchase the outstanding Notes, and started the VDRP programme in the first quarter of 2004. The success of the company's endeavours has considerably strengthened its financial position. Today's retail market has a clear segmentation and consumers are familiar with services provided by each type of retail business, whether department store, discount store, supermarket, speciality store or convenience store. Higher purchasing power and customer awareness have meant that competition among retail operators is now focussed more on the product selection and presentation, rather than price alone. The company is well prepared for these changes in the market environment which is very favorable for the growth in the department store business. These market opportunities and its strong financial position make the company confident of continuing development future expansion. On behalf of the management, I would like to express my sincere gratitude to our customers for their continued support; and to our staff, business partners, shareholders, and all those with whom we work. It is my wish that we shall continue to have the benefit of your support working together in the years to come.

Preecha Ekkunagul president

ROBINSON

¢ÈÕ¡Ÿ≈∑—Ë«‰ª General Information     ⌫       ⌦          ⌫     ⌫    ⌫ ⌫   ⌫        ⌫  ⌫          ⌫           ⌫   ⌫   ⌫                                             ⌫     ⌫        4

ROBINSON

          

   

 

Robinson Department Store Public Company Limited, registration number Bor Mor Jor 115, is conducting the business of Department Store under the name "Robinson". At present, the businesses are operated throughout the country where there are totally 18 branches, comprising 9 branches in Bangkok and 9 branches in upcountry.

The Company's registered capital is Baht 11,106,677,330, which are fully paid-up of 1,110,661,113 ordinary shares, Baht 10 Par Value.

Head Office Address 2 Silom Road, Kwaeng Suriyawong, Khet Bangkok, Bangkok 10500 Tel. 0-2266-3340 Fax. 0-2236-5330

Central Administration Office 139 Ratchadaphisek Road, Kwaeng Dindang, Khet Dindang, Bangkok 10400 Tel. 0-2245-4811 Fax. 0-2247-5325 Location

Tel.

Robinson Department Store PCL. , Silom Branch

Fax.

0-2266-3340-50 0-2236-5533

2 Silom Road, Kwaeng Suriyawong, Khet Bangrak, Bangkok 10500

Robinson Department Store PCL. ,

Ratchadapisek Branch

0-2248-2626-35 0-2642-2047

139 Ratchadapisek Road, Kwaeng Dindang, Khet Dindang, Bangkok 10320

0-2247-5300-9

Robinson Department Store PCL. , Sukhumvit Branch

0-2651-1533-42

259 Sukhumvit Road, Kwaeng Klongtoey-Nue, Khet Wattana, Bangkok 10500

0-2252-5121

Robinson Department Store PCL. ,

0-2238-0052-61,

Bangrak Branch

0-2651-1560

1522 Charoenkrung Road, Kwaeng Bangrak, Khet Bangrak, Bangkok 10500

0-2267-3781-86 0-2235-2467

Robinson Department Store PCL. ,

0-2455-0143-45 0-2454-8350

Bangkae Branch

110/5 Moo 9, Petchakasem Road, Kwaeng Bangwa, Khet Phasricharoen, Bangkok 10160

Robinson Department Store PCL. , Srinakarin Branch

0-2721-8990-9

0-2721-9066

904/1 Moo 6, Srinakarin Road, Kwaeng Nhong Bon, Khet Pravej, Bangkok 10260

ROBINSON

¢ÈÕ¡Ÿ≈∑—Ë«‰ª General Information ⌫           ⌫  ⌫                         ⌫ ⌫           ⌫   ⌫               ⌫ ⌫          ⌫   ⌫      ⌫         ⌫ ⌫           ⌫   ⌫ ⌫           ⌫    ⌫      ⌫  ⌫  ⌫   ⌫ ⌫     ⌫      ⌫  ⌫   ⌫ ⌫         ⌫  ⌫  6

ROBINSON





             



   



  



 

Location

Robinson Department Store PCL. ,

Tel.

Rangsit Branch

Fax.

0-2958-0800-39 0-2958-0899

161 Moo 2, Phaholyothin Road, Tumbol Prachatipat, Amphur Thanyaburi, Pathumthani 12130

Robinson Department Store PCL. ,

Ramintra Branch

0-2947-5320-62 0-2947-5400

5/7 Moo 7, Ramintra Road, Kwaeng Kannayao, Khet Kannayao, Bangkok 10230

Robinson Department Store PCL. ,

Lardya Branch

0-2437-0111,

0-2439-4296

99 Lardya Road, Kwaeng Somdejchaopraya, Khet Klongsarn, Bangkok 10230 0-2437-0104-5

042-242777

042-248780

076-256500-12

076-223304

075-318012-20

075-318010

074-220150

074-220157

053-203640-59

053-283129

CR Ubon Ratchatani(Thailand) Co., Ltd.

045-241887,

045-241268

221 Chayangkool Road, Tumbol Naimuang, Amphur Muang,

045-242-866

CR Udonthani(Thailand) Co., Ltd. 277/2 Phajak Road, Tumbol Makkaeng, Amphur Muang, Udonthani 41000

CR Phuket(Thailand) Co., Ltd. 36 Dilokuttit1 Road, Tumbol Taladyai, Amphur Muang, Phuket 83000

CR Nakorn Si Thammarat(Thailand) Co., Ltd. 89/201 Pattanakukwang Road, Tumbol Klang, Amphur Muang, Nakorn Si Thammarat 80000

CR Hadyai(Thailand) Co., Ltd. 9 Thammanoonvithi Road, Tumbol Hadyai, Amphur Hadyai, Songkhla 90110

CR Chaing Mai(Thailand) Co., Ltd. 2 Maheedon Road, Tumbol Haiya, Amphur Muang, Chaing Mai 50100

Ubon Ratchatani 34000

Robinson Department Store PCL. ,

Sriracha Branch

038-771-001-10 038-770-999

90/1 Sukhumvit Road, Tumbol Sriracha, Amphur Sriracha, Chantaburi 34000

CR Ratchaburi(Thailand) Co.,Ltd.

032-310-831

032-310866

039-340348-57

039-303114

265 Srisuriyawong Road,Tumbol Namuang,Amphur Muang, Ratchaburi 70000

CR Chanthaburi(Thailand) Co.,Ltd. 22/107 Moo 7 Tumbol Chantanimit, Amphur Muang, Chanthaburi 22000

ROBINSON

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ROBINSON

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                     ⌫                             ⌫⌫   ⌫                ⌫   ⌫                      ⌫  ⌫                    ⌫       

References Share Registrar

Thailand Securities Depository Co., Ltd. 62 The Stock Exchange of Thailand Building, 4th and 7th Floor, Ratchadapisek Road, Kwaeng Klongtoey, Khet Klongtoey, Bankok 10110 Tel 0-2229-2800 Fax. 0-2359-1262-3

Note Registrar

BFIT Securities Co., Ltd. Bangkok Insurance Tower, 22nd Floor, South Sathon Road, Khet Sathorn, Bangkok 10120 Tel. 0-2677-4330 Fax. 0-2677-4331

Note Representative

Bangkok First Investment & Trust PLC. Bangkok Insurance Tower, 22nd Floor, South Sathon Road, Khet Sathorn, Bangkok 10120 Tel. 0-2677-4330 Fax. 0-2677-4331

Auditor

KPMG Phoomchai Audit Co., Ltd. 22nd Floor, Empire Tower, 195 South Sathorn Road, Kwaeng Yannawa, Khet Sathorn, Bangkok 10120 Tel. 0-2677-2000 Fax. 0-2677-2222 Auditor : Mr. Winid Silamongkol Certified Accountant Registration Number : 3378

Plan Administrator

Robinson Planner Co. Ltd. 139 Ratchadapisek Road, Kwaeng Dindang, Khet Dindang, Bangkok 10230 Tel. 0-2248-8391 Fax. 0-2248-2651

Financial Advisor

Bualuang Securities Co., Ltd. 29th Floor, Silom Complex Building, 191 Silom Road, Bangrak, Bangkok 10500 Tel. 0-2231-3777 Fax. 0-2632-0741

Legal Advisor

White & Cases (Thailand) Limited 5th Floor, Gaysorn Plaza Building,999 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Tel. 0-2656-1721 Fax. 0-2656-1733

ROBINSON

√ÿª¢ÈÕ¡Ÿ≈∑“ß°“√‡ß‘π Financial Highlights   ⌫  ⌫⌫ ⌫        

2,098 7,573 2,252 5,516 11,107 364 186 2,057

        

ROBINSON

7,765 8,817 6,053 2,183 515 515

  2,017 7,778 2,357 6,232 11,107 (227) 190 1,546

  7,615 8,680 6,036 2,105 463 15,257

 2,850 8,706 19,194 24,205 1,481 (19,263) 198 (15,499)

 7,558 8,433 6,076 2,030 (791) (791)

Balance Sheet Consolidated

Current Assets Total Assets Current Liabilities Total Liabilities Share Capital Retained Earnings Minor Shareholders Portion in Subsidiaries Total Shareholders' Equities







2,098 7,573 2,252 5,516 11,107 364 186 2,057

2,017 7,778 2,357 6,232 11,107 (227) 190 1,546

2,850 8,706 19,194 24,205 1,481 (19,263) 198 (15,499)

Profit and Loss Statement Consolidated

 Net Sales Total Revenue Cost of Sales Selling and Administrative Expenses Profit (Loss) from Ordinary Activities Net Profit (Loss)

7,765 8,817 6,053 2,183 515 515





7,615 8,680 6,036 2,105 463 15,257

7,558 8,433 6,076 2,030 (791) (791)

ROBINSON

√ÿª¢ÈÕ¡Ÿ≈∑“ß°“√‡ß‘π Financial Highlights ⌫    ⌫⌫ ⌫ ⌫⌫         ⌫       

ROBINSON

         

0.93 6.47 29.88 83.09 22.05 5.84 28.58 6.71 2.68 0.46

  0.86 6.71 38.39 95.28 20.74 5.33 NA. 185.11 4.03 1.43

 0.15 5.63 NA. NA. 19.61 (9.38) NA. (7.73) NA (5.34)

Key Financial Ratios Consolidated

 Liquidity Ratio

(time)

Average Collection Period

(day)

Average Selling Period

(time)

Average Payment Period

(time)

Gross Profit Margin

(%)

Net Profit Margin (from Ordinary Activities)

(%)

Return on Equity

(%)

Return on Assets

(%)

Debt to Equity Ratio

(time)

Basic Earning per share

Baht

0.93 6.47 29.88 83.09 22.05 5.84 28.58 6.71 2.68 0.46





0.86 6.71 38.39 95.28 20.74 5.33 NA. 185.11 4.03 1.43

0.15 5.63 NA. NA. 19.61 (9.38) NA. (7.73) NA (5.34)

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business      ⌫  ⌫  ⌫⌦   ⌫   ⌫            ⌫  ⌫     ⌫   ⌫   ⌫  ⌫   ⌫     ⌫   ⌫     ⌫  ⌫⌫   ⌫   ⌫ ⌦       ⌫⌦   ⌫   ⌫  ⌦ ⌫        ⌦  ⌫⌫ ⌫ ⌫  ⌦  ⌫⌫        ⌫⌫⌦  ⌫⌫ ⌦   ⌫  ⌫  ⌫    ⌦ ⌫            ⌫   ⌫⌫                                      ⌫⌫⌫⌫⌫ ⌫ 

ROBINSON

Executive Summary

Robinson Department Store Public Company conducts a retail business under the name of "Robinson Department Store" since 1979 and has continually expanded branches. At the end of the year 2003, the Company operated a total of 18 branches consisting of nine branches Bangkok area and nine branches in upcountry area. Currently, the Company has Central Retail Group as a major shareholder. From the middle of the year 2003 onwards, the Company has prepared the readiness to create a new image under the new concept of "Robinsonâ&#x20AC;Ś your Life Vitalizer". The Company has fully renovated Ratchadapisek branch as a prototype under the new concept. In the year 2003, the Company has continually adopted a prototype of renovated branch to other branches to reflect the fashionable, colorful images and lively store ambience. Besides, the Company has improved its logo to be more modern and also improves its merchandising management such as the selection of products, and the adding up of new and brand name products, including the improvement of services to facilitate more to the customers and the arrangement of marketing activities in the new concept. This is made by emphasizing to offer product variety, product differentiation, with fashionable and modern to meet demand of target customers. Furthermore, the Company has arranged the activities for the relaunch of a new image in May 2003 and publicly advertises a new image of Robinson via a widely range of media, especially the advertisement via television media for the first time in the past five years. This relaunching activities brÂšught a success to the Company as evidenced by the sales increases. At present, the Company has been under a Rehabilitation Plan, which is closely monitored by the Plan Administrator, Robinson Planner Co., Ltd. The Company has a substantially better financialposition and can repay the Notes above the minimum requirement set forth in the Plan. This results from the continuity of profits creation. The Company recorded net profits for the year 2003 in the amount of Baht 515.2 millions, or 11.36%growth from the previous year . Apart from the implementing of marketing strategies to compete in products, images, sale promotions, customer relationships and branches renovation, to boost up the growth of sales for all 18 branches, in the year 2004, the Company has planned to improve a wide range of management systems such as the internal management system for branches, the inventory management system, the merchandising management system, the customer relationship management and the investment in Electronic Point of Sale (EPOS) system to increase the effectiveness in providing the service at the point of sale to the customers. In addition, the Company still has a plan to add new branches in potential areas after the year 2004.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business ⌫           ⌫⌫⌫  ⌫ ⌫  ⌫  ⌫         ⌫     ⌫ ⌦    ⌫  ⌦ ⌫  ⌫     ⌫            ⌫  ⌫  ⌫⌫    ⌫     ⌫               ⌫     ⌫         ⌫  ⌦        ⌫  ⌫ ⌫         ⌫   ⌫ ⌫⌦⌫   ⌫  ⌫     ⌫  ⌦       ⌫        ⌫                          ⌫⌫     ⌫     ⌦                       ⌫   ⌫⌫       ⌫    ⌫                  ⌫⌫ ⌫             ⌫       

ROBINSON

History and major development

Robinson Department Store Public Company Limited and subsidiaries in Robinson Group has started to operate the first branch at Anusawaree in the year 1979 and was granted to be a listed Company in the Stock Exchange of Thailand in the year 1992. In the year 1995, the Central Retail Corporation group joined the Company as a major shareholder and jointly created CR (Thailand) Co., Ltd to join with the local department store in upcountry under the name "Robinson". The result was the increase of the Company's branches into 20. During the year 2000 and 2001, the Company closed down 2branches namely Anusawaree branch and Donmuang branch since the return of investment was not acceptable. Currently, the Company operates 18 branches comprising of 9 branches Bangkok and 9 branches in upcountry In the year 1998, the Company announced a debt moratorium as a result of Baht devaluation from change in exchange rate system announced on July 2nd, 1997. On May 2nd, 2000, the Central Bankruptcy court ordered to rehabilitate the business of the Company and appointed Robinson Planner Co., Ltd as a Plan Administrator. During the year 2001 to 2002, the Company proceeded to follow the major steps of the Plan including the issuance of Notes to the unsecured financial creditors in the amount of Baht 4,766.7 millions for the principal and interest. The Company also increased its capital from Baht 1,480.8 millions to Baht 14,808.8 millions proceeded the debt to equity conversion, decreased of capital of 25% and the debt forgiveness. These significantly improved the financial position of the Company. However, after the restructuring Central Retail Corporation group still was a major shareholder. Owing to such success, the Stock Exchange of Thailand considered to approve trade resumption on commerce sector for the Company's ordinary shares since November 26th, 2002 onwards. On May 2003, the Company started a relaunching campaign to promote the new image under the concept "Robinson…Your Life Vitalizer" to the target customers. Additionally, the Company has continually renovated the existing stores to be modernize, colorful, lively ambience to reflect the new image of Robinson. On November 2003, the Company arranged to amend the Rehabilitation Plan to facilitate the repurchase of Notes under the Voluntary Debt Refinance Program (VDRP). The Company succeeded in borrowing from new source of fund to facilitate 100% of Notes repurchase and achieved to repurchase. 36% of total outstanding Notes during the first quarter of the year 2004.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business  

⌫    

 



          

   ⌫  ⌫  ⌫    ⌫  ⌫  ⌫    ⌫  ⌫  ⌫  ⌫  ⌫  ⌫  ⌫  ⌫  

76.00 49.99 49.99 76.00 89.99 74.99 49.99 64.99 7,558.43 91.02 7,615.28 87.73 7,764.67 88.06 745.72 8.98 1,064.78 12.27 1,052.74 11.94 8,304.15 100.00 8,680.06 100.00 8,817.41 100.00

⌫

      







79.73% 19.78% 0.49%

80.68% 18.84% 0.48%

83.32% 16.12% 0.56%







74.25% 25.75%

71.68% 28.32%

68.04% 31.96%

 ⌫    18

ROBINSON

Income Structure Type of

Company

% of

business

Share holding Million Baht

Retail-

Robinson Public Co., Ltd.

distribution

CR Udonthani Co., Ltd.

CR Phuket Co., Ltd..

2002 Million Baht

2003 %

Million Baht

76.00 49.99 49.99 76.00 89.99 74.99 49.99 64.99

consumption CR Nakhonsithammarat Co., Ltd. goods

2001

CR Had Yai Co., Ltd. CR Chiang Mai Co., Ltd. CR Ubon Ratchathani Co., Ltd. CR Ratchaburi Co., Ltd. CR Chanthaburi Co., Ltd.

7,558.43 91.02 7,615.28 87.73 7,764.67 88.06

Total Other businesses

745.72 8.98 8,304.15 100.00

Total

Total income

1,064.78 12.27 1,052.74 11.94 8,680.06 100.00 8,817.41 100.00

(Total income presented after eliminating of inter-company transactions)

Income classified by product categories Categories of products Soft Line Hare Line Others

2001

2002

2003

79.73% 19.78% 0.49%

80.68% 18.84% 0.48%

83.32% 16.12% 0.56%

Income classified by method of payment Method of payment Cash Credit card

2001

74.25% 25.75%

2002

71.68% 28.32%

2003

68.04% 31.96%

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business      ⌫  ⌫      ⌫     ⌫ ⌫                           ⌫⌦     ⌫           ⌫  ⌫   ⌫  ⌫ ⌫ ⌫  ⌫  ⌫    ⌫  ⌫   ⌦⌫⌫               ⌫        ⌦⌫ ⌫ ⌫ ⌫  ⌦     ⌫   ⌦ ⌦⌫  ⌫

ROBINSON

Product Line

Soft Line are the products of modern and fashion comprised the main categories as follows: Clothes for men and women : this comprises the department for men's wears, women's wear, jeans and underwear. Cosmetics and accessories : This comprises the department of cosmetics, decorations and accessories. Leather : This includes the department of handbags, shoes and suitcases. General products for children : This comprises the department of children's wears, children's consumption products and toys. The management of this line has to closely studied and followed up the trend in fashion to seize the customers' needs as fast as possible in order to create the sale opportunity. The Company also has to survey the competitors' new products to update its selected products available in the store as modern, good quality, various and fashionable. Additionally, the strategy in setting the reasonable price is the heart of the management of this product line. Due to the short-usable life and the customers' decisions to buy depend on the trend, so the range of price should allow the easiness in making the purchase decision.

Hard Line are consisting of the following categories : Home furnishings Gifts Automobiles' accessories and equipments This line emphasizes on the modern, good quality and variety of products. Hence, the strategies in selecting and displaying the products are the heart of the management of this product line. The change in customers' life styles arising from the economic recovery also lead to the needs to improve or decorate their own homes. This will accordingly allow the sale opportunity for this product line.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business   ⌧ ⌫   ⌦  ⌦⌫     ⌫         ⌫   ⌦  ⌫ ⌫⌫  ⌫⌫ ⌫            ⌦ ⌫⌫   ⌫    ⌧  ⌫     ⌦ ⌦     ⌫   ⌫ ⌫⌫ ⌫   ⌫ ☺  ⌦                 ⌫     ⌫  ⌦    ⌫ ⌦  ⌫



 ⌫⌦   ⌫    ⌫        ⌦⌫  ⌦    ⌫ ⌫      ⌫           ⌫          ⌫  ⌫   ⌫              ⌫   ⌫ ⌫  ⌫   ⌦

ROBINSON

Exclusively @ Robinson Products The Company itself has developed the products including the selection of new and interesting products which are only available at Robinson. This allows to create the differentiation from its competitors.They are comprised of : Private Label Products : This comprises the products which are developed by Company and offered to sell under the brand determined by the Company. The consideration is made to select only the products demanded by the customers, offered with the reasonable price and allowed the good quality in the modern style. This line includes the kitchenware and bedroom items under the name "Robinson at Home" and the products of clothing, decorations and leathers which contain over 20 brands available throughout 18 branches. Exclusive Brand Products : This comprises the products which the Company hascontacted with manufacturers and the brand owners both local and aboard to be available only at Robinson. This is a part of the differentiation strategy by selecting only the fashionable items available at the branch where the customers can afford to buy and also demand products different from other retailers. One-Price Products Just 25 : Every items are sold at Baht 25 consisting of variety of products including the products for teenagers, newly working persons and consumption products such as the accessories, cosmetics, stationeries, gifts etc. The customers are easy in making the purchase decision owing to the low price, the sale growth of this product line is accordingly at the satisfactory level.

The Arrangement of Products and Services Since the Company operates the department store business, the products offered must be modern fashionable, in-trend, good quality, new and various in terms of category, type and style and meet the demand of the target customers. Accordingly, the Company manages the merchandising via the Head Office's Merchandising Line including the price negotiation, payment condition, the management of each branch's inventory level to be as regulated. These are supported by the use of computer systems to control and follow up the sales and inventory for the purpose of correctness and effectiveness of the management. Currently, the Company has purchased products domestically and internationally over 200,000 transactions from over 2,000 trading partners with the payment conditions either in the consignment basis of approximately 78% of sales and credit basis for the rest. The Company has imported with the purpose to offer the modern, in-trend and differentiate products either in the categories of clothing, accessories, wears, children products, toys and kitchen ware. These imports are mainly from China, Korea, Hong Kong and India etc. However, the Company does not enter into the exclusive purchase agreement with any specific supplier.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business    ⌫⌫⌫   ⌦ ⌫         ⌫    ⌦  ⌫   ⌫ ⌫    ⌫  ⌦ ⌫  ⌫ ⌫    ⌫   ⌫       ⌫⌫⌫        ⌫ ⌫    ⌦                 ⌦       ⌫  ⌫    ⌫  ⌫ ⌫  ⌫ ⌫ ⌫       ⌫          ⌦ ⌫     ⌫      ⌫    ⌫  ⌫ ⌦ ⌫   ⌫  ⌫  ⌫ ⌫⌫   ⌫   ⌫       ⌫⌦  ⌫⌦ ⌦ ⌫ ⌫  ⌫   ⌫ ⌫  ⌦ ⌦ ⌫ ⌫  ⌫ ⌫  ⌫    ⌫  ⌦⌦  ⌫⌫ ⌫   ⌫⌫   24

ROBINSON

Market and Competitive Condition

The continue of Thailand economic growth as a result of the implementation of the public's stimulation policy leads to the on-going expansion of retail business in Thailand in the year 2003. This can be seen through the open of new branch of the retail business of supermarket, specialty store and discount store/ super center totaling over 13% of total branches in the year 2002, while no branch added for department store (chain store) during the year 2003. Also, the tourism promotion policy and the goverment's fully support of "Bangkok Fashion City" will be a supporting factor to drive sales growth for department store . In the year 2003, the Company still has to cope with 2 direct competitors in the chain store business as in the previous year. The Company is not affected by the opening of such competitors' new branch since the Company has no branch operating in that area. The competition in the department store business is still emphasis on the competition in the concept and the product display, quality of products, the variety and the sale promotion on the price and non-price basis such as the arrangement of the event marketing etc. For the competition among discount store/super center which are the Company's indirect competitors, theystill implement the pricing strategy because most of the products are the daily consumable goods. Also, there is not much different in products,not emphasize on fashion or brand name. The fierce competition of price discount for the whole year causes the pressure on suppliers in determining the selling price to theseoperators. In consideration of the location, the Company has operated 9 branches in Bangkok area and 9 branches in the upcountry area. Whereby the Company has to directly compete with 2 major groups of the Department Stores comprising of Central and the Mall groups in the total of 19 branches. For the upcountry locations, the degree of competition with the direct competitors are low since the competitors have only 3 branches locating in Chiang Mai, Had Yai and Nakhonratchasima where the Company has operated only in Chiang Mai and Had Yai. Also, there are still the difference in location and target group of customers. However, the competition from the indirect competitors of discount stores/super center still provides impact to some extent. Some of their products are the same category available in department store, but not with brand name thus they can offer lower price. In the year 2003, this group of business has opened many new branches including Chanthaburi and Ratchaburi branches where the Company has currently operating the branches in those areas. Hence, the Company has to carefully implement its strategy to maintain the customer base by the creation of products differentiation and brand name, and the implementation of Theme Promotion to avoid price-cutting and to create the differentiation under Robinson's new image.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business     ⌫  ⌫       ⌫          ⌫    ⌫⌫

         ⌫   ⌫ ⌫   ⌫ ⌫  ⌫  ⌫      ⌫    ⌫ ⌫     ⌫   ⌫ ⌦         ⌦    ⌦     ⌫        ⌫  ⌫⌫⌫ ⌫ ⌫       ⌫     ⌫⌫ ⌧ ⌦           ⌫⌫ 

ROBINSON

On May 2003, the Company implemented a re-launching campaign to present new image of Robinson under new concept "Robinson…Your Life Vitalizer" for all 18 branches including the communication to the target group for the acknowledgement via a wide range of medias such as television, radios, magazines and newspapers. The Company also continues to arrange the marketing activities throughout the year in order that the target group will perceive the change of Robinson. These will positively effect to the sales accordingly.

Competitive strategy To response the demand of the customers in consistent with the competitive condition, the Company has implemented 6 major competitive strategies as follows:

Image Strategy The Company has changed the image through the change of logo to be more modernized including the renovation of the stores in colorful and lively ambience. Also, the adoption of improved strategy in connection with the select items offered to be more variety, modern and differentiate from the competitors and the implementation of Theme Promotion policy to maintain the image and profits of the Company. Additionally, the Company re-launched new image on May 9th, 2003 and continued to arrange the marketing activities in all branches to emphasize on that new image. These are done publicly through the advertisements throughout the country via television and press media from May to July 2003 in order to attract the customers' attentions which will result in higher customers' visit to the store

Product Strategy The Company uses the research information and analyses the sale in connection with the customers' behaviors as reference information for the selection of products based on types, prices and style of products to meet the demand of the customers as much as possible. In 2003, the Company has changed the product structure by adding new products and new brands needed by the customers, especially in the departments of cosmetics, men and women's wears, leathers and house furnishing. The Company also develops the product with differentiate available exclusively only at Robinson, jointly develops products with both large and small sizes suppliers and manufacturers to make the products availability under the modern and fashionable concepts. These are to offer products with good quality and reasonable prices in consistent with the customers' purchasing power.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business  ⌦    ⌫        ⌫ ⌦ ⌫    ☺     ⌫ ⌫⌫   ⌫ ⌫   ⌫ ⌫⌫          ⌫          ⌦  ⌦⌫     ⌦⌫⌫  ⌫  ⌫ ⌦          ⌫⌫⌫    ⌫⌫ ⌫ ⌦     ⌦    ⌫      ⌦  ⌫⌫ ⌫ ⌦ ⌦ ⌫⌫  ⌦   ⌫⌫  

ROBINSON

Sale Promotion Strategy

The Company has changed the strategy of sale promotion to meet the demands and life styles of customers by reducing the discount campaigns while increases to adopt the new campaigns. This involves the recommendation of new products seasonally and trendy under Theme Promotion such as the arrangement of campaign "My Wish My Gift" to introduce the presents during Christmas and New Year seasons, "I Go Jeans" campaign to offer the variety, fashionable and different jeans products. The Company also cooperates with supplier to manufacture the customized jeans at the specific model available only at Robinson. This includes the jeans design competition and the arrangement of jeans fashion show in the store area to increase the popularity and position the store as a leader of jeans products. The Company also launches the campaign of Robinson Tiger Nano Bike arranged at the first time in Thailand for small-sized motorbike competition to reflect the innovation image to the new generation families. Additionally, the Company cooperates with many suppliers such as ICC and CMG groups to arrange a variety of sale promotion activities, which are very successful. The Company has implemented the strategy to offer the special selected items via the program "R Recommend" including the arrangement of the product display at the entrance area of the store and the creation of the purchase motivation by recommending the tips for correct use and various applications of products.

Customers' Relationship Strategy

The Company has developed the information technology system to study and analyze the purchasing behavior of the customers via Robinson Member Club. The information will be used to arrange the campaign to motivate the continue to purchase such as "My Beauty" campaign is to introduce the products and provide only the cosmetics information to the interested women customers or "Birthday" campaign is to provide a special privileges to the high purchase customers or the purchase accumulate campaign to get rewards. The Company also usually contacts the customers to create the relationships via lifestyle magazine, which are including the introduction of new products, special promotion for the members, the services and other privileges provided by Robinson and its trading partners. Such campaigns and activities will not only serve the current members, but also attract the non-members to join Robinson Member Club. At present, the number of Robinson members is increased approximately 30% compared to the previous year.

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business    ⌫            ⌫ ⌫   ⌫   ⌫⌫ ⌫⌫ ⌫       ⌫   ⌫        ⌫⌫      ⌫  ⌫ ⌫         ⌫  ⌫  ⌫⌫⌫  ⌫  ⌫    ⌦  ⌫  

        ⌦ ⌫ ⌫ ⌫⌫⌫⌫⌫   ⌫⌫ ⌫    ⌫

ROBINSON

Branch Renovation Strategy

The Company has continually invested to renovate the branches in 2003 by using total budget of over Baht 200 millions including the major renovation for 3 branches located in Chanthaburi, Ratchaburi and Bangkae and the minor renovation for 13 branches. This also includes the renovation of sale area and rented space to meet the demand of the customers in each branch in order to make the variety of products available in the department store and also in the rental area. Additionally, the Company has improved the product display in some departments such as electricity appliances, stationeries and books, gifts etc. The objective is to provide the modern looks as the specialty store under different names.

Management Strategy

The company has a plan to improve the branch management system by segregating the functions of customer service, sale supporting and the inventory control. This is to allow the salespersons effectively serve the customers while keeping the sufficient level of merchandises to meet the customers' needs and also reducing the cost of branch management. For cost control, the Company has implemented measures to control the use of electricity in the sale area since 2003 and planned to reduce the use of electricity in the year 2004 by investing to install the electricity control equipment in the area of 14 branches. This is expected to save the electricity expenses almost Baht 10 millions per annum.

Target Customers

The major customers of the Company are families and newly working persons who have modern life-styles and love to spend on the fashionable, brand name products, which are good quality offered with reasonable prices. Sets out below are the major target groups:

ROBINSON

≈—°…≥–°“√ª√–°Õ∫∏ÿ√°‘® Nature of Business  ⌫    ⌫     ⌦  ⌫    ⌫⌫    ⌫               ⌦  ⌦    ⌫                        ⌦                    ⌫   ⌫ ⌦   ⌦  ⌫  ⌫ ⌫  ⌦      ⌫   ⌫ ⌫ ⌫⌫⌫        

  ⌫⌫  ⌫     ⌫      ⌫   ⌫   ⌫    ⌫     ⌫   ⌫  ⌫       ⌫  ⌫   ⌫ ⌫   ⌫   ⌫     ⌫  ⌫⌫                     

ROBINSON

Habitual customers who are the members of Robinson Member Club and Robinson Junior Club

The Company pays attention to the members of Robinson Member Club, which are currently over 1,200,000 members throughout the country. The members use the services and constituted sales of 46% of total sales. These members are granted the special privileges in form of cash discount on every shopping once presenting the membership card. They will also receive accumulated reward points, which can be exchanged for rewards.

Also, the members will normally get "Lifestyle" magazines as complementary,

which are part of the continuation to implement the customers relationship strategy. Additionally, the Company provides special sale promotion to the members such as the additional special discount on their birthdays, the reward special points accumulated from purchase etc. The Company further tries to create new base of future customers via the membership of Robinson Junior Club which is the club for kid ages ranging from 4 to 14 years old. Those kids will get familiar to the service provided by the stores from the first. They may develop to be Robinson's customers once they are grown up in the future. The Company has also arranged the activities to build up the good relationship with those kids which will result in the long-term loyalty to Robinson brand such as Robinson Summer Camp, Junior Stars Camp, Junior Art Camp, Junior Science Camp etc.

General Customers

The Company has a policy to invite this group to be the members of Robinson Member Club through the marketing program such as the public relation advertised in the store while the customers are shopping, the free application once the customers purchase up to the amount set forth under the specified conditions etc. The customers who are members will be granted the aforementioned privileges.

Foreign and Tourist Customers

This group of customers usually uses the service of the Company since the locations of some branches are nearby the hotels. The Company forms a business partners with the travelling agentto bring in foreign customers to shop around the store. The branches having this group of customers are Ratchadapisek, Silom, Sukhumvit, Bangrak, Phuket, Chiang Mai, Had Yai, Sriracha and Udonthani. The Company has arranged Tourist Card program and Vat Refund to facilitate the foreign customers by providing the special discount and other special services such as the availability of welcome drink to serve the customers etc.

ROBINSON

‚§√ß √È“ß°≈ÿË¡∫√‘…—∑ The Company Structure Chart      ⌫ 99.99 %

⌫ ⌫ 89.99 %

⌫  74.99 %

⌫  76.00 %

⌫ ⌫ 64.99 %

⌫ 

 ⌫



 

 

 ⌫⌫

 ⌫  ⌫ 

99.91 %

74.50 %

99.99 %

40.00 %

29.19 %

 

 ⌫

 

  

  

 ⌫⌫

99.35 % 99.86 % 99.99 %

29.19 % 24.00 % 20.86 %

เครือแก้ว 99.99 %

76.00 %

อาร์เทรดดิง้ มาเลเซีย 99.92 %

⌫ ⌫ 49.99 %

อาร์ดี พัฒนา 99.98 %

⌫ ⌫

โรบินสัน รัชดา 99.80 %

49.99 %

99.99 %

⌫  49.99 %

ROBINSON

      ⌫   ⌫      ⌫       ⌫

Organization Chart of the Group of the Company

Robinson Department Store Public Co., Ltd**

CR (Thailand)

99.99 %

Robinson Anusawaree

Kruerpetch

*Power Buy

Sapanmai Department Store

Robinson S.P.V

*CRC Sports

99.91 %

74.50 %

CR Chiangmai

89.99 %

99.99 %

Robinson Rajadamri

29.19 %

*Siam Retail

99.35 %

CR Ubon

40.00 %

29.19 %

74.99 % Robinson Nakarin

*Square Ritz

99.86 %

24.00 %

CR Udorn

76.00 % Robinson Sukhumvit

*D.C.R

99.99 %

20.86 %

CR Chantaburi

64.99 %

Kruekaew

99.99 %

CR Hadyai

76.00 %

R Trading (L) BHD

CR Ratchaburi

RD Pattana

49.99 %

CR Nakhonsri

99.92 % 99.98 %

Robinson Ratchada

49.99 %

99.80 %

CR Phuket

49.99 %

* Associates ** Public Company operating in different branches as follows: Bangkae, Srinakarin, Fashion Island,

Rangsit, Lardya

Bangkok: Silom, Ratchadapisek, Sukhumvit, Bangrak, Province: Sriracha

ROBINSON

‚§√ß √È“ß°≈ÿË¡∫√‘…—∑ The Company Structure Chart   ⌫   

 

    ⌫ 

       

      ⌫  

ROBINSON

    ⌫ ⌫   ⌫     ⌫⌫    ⌫    ⌫⌫    ⌫ ⌫    ⌫⌫    ⌫ ⌫       ⌫⌫               ⌫ ⌫            ⌫    ⌫⌫          ⌫⌫      ⌫         ⌫  

        

 ⌫  ⌫  ⌫      ⌫      

Overall Chart of Business Operation Type of Business

Name and Subsidiaries

Characteristics

CR Udornthani (Thailand) Co., Ltd.

The investment made with local

Consumer

CR Phuket (Thailand) Co., Ltd.

department stores in other

Product

CR Nakhon Si Thamarat (Thailand) Co., Ltd. provinces under the name

Retailing

Company

Subsidiaries

CR Had Yai (Thailand) Co., Ltd.

"Robinson" to operate the

CR Chiang Mai (Thailand) Co., Ltd.

department stores business

CR Ubon Ratchathani (Thailand) Co., Ltd. CR Ratchaburi (Thailand) Co., Ltd. CR Chanthaburi (Thailand) Co., Ltd.

Business

Associated

Power Buy Co., Ltd.

Specialty Stores (Electrical Appliance)

Company

CRC Sports Co., Ltd.

Specialty Stores (Sport Accessories)

Subsidiaries

Robinson Ratchada Co., Ltd.

Space Rental

Development/

Robinson Sukhumvit Co., Ltd.

Area

Kruerkaew Co., Ltd

Letting out the warehouse space

Siam Retail Development Co., Ltd.

Shopping Center

Kruerpetch Co., Ltd.

To invest in different businesses/ or

R - Trading (L) BHD

partners with other companies

Development

Associated Company

Holding Company Subsidiaries

CR (Thailand) Co., Ltd.

Special Entity

Associated

D C R Co., Ltd.

To invest in different businesses/ or

Company

Square Ritz Plaza Co., Ltd.

partners with other companies

Subsidiaries

Robinson S.P.V Co., Ltd.

To repurchase the note from the noteholders according to VDRP

Dormant Business

Sapanmai Department Store Co., Ltd. Associates

Robinson Anusawaree Co., Ltd.

Companies

Robinson Rajdamri Co., Ltd.

and

Robinson Nakarin Co., Ltd.

subsidiaries

RD Pattana Co., Ltd.

ROBINSON

ª—®®—¬§«“¡‡ ’Ë¬ß Risk Factors  ⌫ ⌫ ⌫⌫⌫⌫⌫⌦   ⌫   ⌫            ⌦   ⌫⌦⌫  ⌫     ⌦     ⌫     ⌦ ⌫ ⌦ ⌫   ⌫  ⌦ ⌫  ⌫     ⌫ ⌫   ⌦ ⌫⌦   ⌫ ⌫ ⌫⌦  ⌫             ⌫    ⌫ ⌫ ⌫   ⌦ ⌦ ⌫ ⌫       ⌦  ⌫ ⌦      ⌦⌫⌫⌫ ⌫       ⌫    ⌫  ⌫⌫⌫     ⌫  ⌫ ⌫    ⌫  ⌫    ⌦ ⌦ ⌫  ⌫  ⌫   ⌦   ⌦  ⌫         

ROBINSON

1. Risk associated with the retail business competitive environment

Although the recovery of economic provides the better growth for the retail business, the Company's business has still been under highly competitive condition continually from the year 2002. These are owing to the branch expansions and the change in marketing strategies from both of the direct competitor operating the department store and the indirect competitor conducting discount store/super center which use the price cutting as the main strategy to boost up sales.

For the branch expansion, the department store as a whole has opened only one new branch during the end of the year 2002 on Rama 2 Road, which provides no impact to the Company's revenue since the company has no branch in that location. However, the Company expects that one of the department store will expand a branch in Phuket area around the end of the year 2004 where the Company's branch has been preliminarily operating. Though the branch is different in location, locating in the city, the new branch opening will impact only part of Phuket branch's income. However, the Company has prepared for the coming competition by investing to renovate the Phuket branch to maintain the customers base and to response at most to the demand of the customers. For the branch expansion of discount store/super store, there are 18 new branches locating in potential areas including the locations where Robinson has been currently operating 2 branches in upcountry area. This will affect to all types of retail business operators thoroughly. However, such competitors do not operate their businesses as the department store which have different target customers and different purchasing purposes including the different in the variety of products, services and the use of information system to effectively plan the sale promotion for the Company. The expansion of competitors will slightly impact to the Company. As a result, for the competitive strategy, the Company has a policy to avoid the price competition by emphasizing the constitution of product differentiation and services. This could be achieved by developing and selecting brand name products, with variety and differentiation, fashionable and modern products to be consistent with the lifestyle of the target customers in order to draw more customers. Additionally, instead of using price promotion the Company has adopted a new strategy by having more marketing activities and products recommendation via Theme Promotion to compensate for the discount. These will help the Company to increase sales, maintain a gross profits, image and market positioning as well.

ROBINSON

ª—®®—¬§«“¡‡ ’Ë¬ß Risk Factors  ⌫ ⌦    ⌫       ⌫   ⌦ ⌦  ⌫⌫   ⌫  ⌦ ⌫ ⌫  ⌫ ⌫    ⌫      ⌫ ⌦ ⌫      ⌫      ⌫  ⌫    ⌫    ⌫⌫⌫  ⌦  ⌫  ⌫      ⌫  ⌫ ⌦  ⌫    ⌫    ⌫   ⌫    ⌫ ⌦  ⌫ ⌦      ⌫            ⌦   ⌫         ⌫   ⌫    ⌫  ⌦ ⌫  ⌦   ⌫⌫       ⌫    ⌫  ⌦ ⌫  ⌦  ⌫ ⌫   ⌫                  ⌫⌫ ⌫  ⌦            ⌫       

ROBINSON

2. Risk associated with the dependency of purchasing from supplier

The Company diversifies to purchase from more than 2,000 suppliers for the variety and differentiation of products in consistent with the Company's strategy including the reduction of the dependency of the huge purchase from a specific supplier. However, the Company has purchased products from the largest supplier account for 16% of sales in the year 2003 whose product brand names are very popular among customers. The Company is also acting as the major partner to distribute products for this supplierin both Bangkok and upcountry areas.

3. Risk associated with the dependency of leasehold

The Company owns land and building for 2 branches and owns leasehold right on land and/or building for the remaining 16 branches to use as the outlet for operating department store business. Such lease agreements are made as a result of the necessity to select the high potential are in operating the business of the department store where such land and buildings are not normally sold by the owners, they are rather leased out. In some cases, the cost in acquiring the land and building are costly and not worth for the investment comparing to the lease. However, the remaining periods of such lease agreement are over 7 to 23 years and certain number of agreements were already provided a option for the renewal, together with the smooth compliance to the agreement by both parties, the Company accordingly expects to achieve the renewal of lease agreement in the future.

4. Risk associates with the business rehabilitation

The Company has succeeded in following the major steps set forth in the Rehabilitation Plan since the year 2002 evidencing by the Note repayments which have been paid more than the minimum requirement. This is a consequence of the ability to generate more income. However, the Company still has the liability on the Note amounting to Baht 2,921.2 millions (as of 15 January 2004) which will be gradually due until the end of the year 2005. The Company has preceded the measurement to reduce the default risk by arranging to amend the Rehabilitation Plan to facilitate the repurchase of the Note under the Voluntary Debt Refinance Program (VDRP). The Company successfully obtained new source of fund for repurchasing of all outstanding Notes and in the first quarter of the year 2004 36% of total outstanding Notes was repurchased.

ROBINSON

ª—®®—¬§«“¡‡ ’Ë¬ß Risk Factors  ⌫ ⌫ ⌫⌫⌫⌫    ⌫    ⌫ ⌫  ⌦            ⌫   ⌦⌫    ⌫ ⌫  ⌫  ⌫  ⌦   ⌦⌫ ⌫  ⌫   ⌫         ⌫⌫ ⌫ ⌫     ⌫  ⌫         ⌦ ⌫ ⌦⌫⌫   ⌫    ⌦ ⌫              ⌦ ⌫    ⌫ ⌫  ⌦    ⌫  ⌫ ⌫ ⌦ ⌫  ⌫ ⌫     ⌫⌫ ⌫   ⌫ ⌫   ⌫ ⌫ ⌫ ⌫ ⌫  ⌫ ⌫ ⌫⌫ ⌫       ⌫ ⌫     ⌦ ⌫ ⌫ ⌫⌫⌫⌫⌫ 

ROBINSON

5. Risk associates with the interest rate

The Company has liabilities to pay interest and principal from the issuance of the partial secure Notes to the creditors according to the Rehabilitation Plan. The interest payments of such Notes are determined in a fixed rate from 2001-2005 at 5%, 6%, 7%, 8% and 9% per annum respectively. These interests have been recorded as liabilities, which will be settled in the future. The Company has to pay principal and interest with the amount and schedule of payments as specified in the Terms and Conditions of the Notes. Therefore, the Company has not been exposed to the interest rate risk fluctuation in the market. However, the Company has borrowed new fund to repurchase the Notes under VDRP where a total credit facilities are not over Bath 2,700 millions. The interest rate is the average MLR of 2 Commercial banks minus 1.75% or 4% whichever is higher. Such interests will be recorded as interest expenses calculating on the actual drawdown amount. Presently, the Company achieved to repurchase 36% of total outstanding Notes. However, given the high liquidity of money market and the trend of the Company's sale growth, the Company expects the changes in such interest rate will not have material impact to the Company business. For those other liabilities that are less significantly than the Notes, the Company has to pay interest at prevailing market interest rate.

6. Risk associated with foreign exchange rate

The Company has not been exposed to foreign exchange rate risk because all the foreign liabilities requested by the creditors set forth in the Rehabilitation Plan were converted into Baht and the liabilities from the new source of fund to repurchase Notes are also provided in Baht. As for the foreign exchange risk arising from imported merchandise as a normal business transaction, the Company has requested for a small credit line of letter of credit facility comparing to total amount of sale. Additionally, the Company has implemented a policy to hedge foreign exchange rate in the event of money market fluctuation in advance.

ROBINSON

‚§√ß √È“ß°“√∂◊ÕÀÿÈπ Shareholding Structure     ⌫ ⌫   ⌫             ⌫       ⌫    ⌫





     *



509,566,614 45.88

    



275,830,307 24.83 124,294,205 11.19





 ⌫⌫ 

 

 ⌫  

 

46,255,571

4.16

  



43,071,681

3.88

  

55,533,056

5.00

11,065,053

1.00

6-10

     ⌫         



   ⌫       ⌫     ⌫ ⌦   ⌫    ⌫⌫          ⌫  

ROBINSON

Shareholding Structure

The Company had registered capital of Baht 11,106,611,330 with a number of 1,110,661,113 paid-up capital shares, par value is valued at Baht 10.

10 Major Shareholders as of December 31st, 2003 No.

Shareholders Name

No. of Shares

Thailand Securities Depository Co., Ltd. for local investors

Type of Business

509,566,614 45.88

275,830,307 24.83 124,294,205 11.19

Thailand Securities Depository Co., Ltd. for foreign investors

C.R.G. Service Co., Ltd.

Holding

Central Retail Corporation Ltd.

Holding

46,255,571

4.16

Ramintra Department Co., Ltd.

Trading

43,071,681

3.88

6-10

5 MIOP companies for the Company's

Special purpose

executives according to the Rehabilitation Plan

vehicle

55,533,056

5.00

Government Saving Bank

Banking

11,065,053

1.00

* Including the shares which held by Central Retail Group in the scripless system

The ultimate shareholder of the Company is Central Retail Group which comprising of Central Retail Corporation Co., Ltd., C.R.G. Service Co., Ltd. and Ramintra Department Co., Ltd. They jointly hold the Company's shares in the aggregate of 53.22% of total distributed shares.

ROBINSON

‚§√ß √È“ß§≥–°√√¡°“√∫√‘À“√ Organization Structure       ⌫    

 

 ⌫

 

 

 





 

         ⌫             ⌦      ⌫      

ROBINSON

Organization Chart of Robinson Department Store Public Company Limited (As of December 31st, 2003)

Plan Administrator

President

Financial Planning Office

Retail Business Line

General Goods Merchandising Line

Board of Directors

Management Office

Marketing Line

Administrative Line

Financial Line

Asset Management Line

The current management structure of the Company comprises three groups of Directors: the Board of Directors (unauthorized), the Board of Executive Officers and the Board of Directors of Robinson Planner Ltd. who is the Plan Administrator of the Company according to the Rehabilitation Plan and authorizes President of the Company to operate the business in general.

ROBINSON

‚§√ß √È“ß§≥–°√√¡°“√∫√‘À“√ Organization Structure       

    Mr. Sudhitham Chirathivat

 Director

    Mr. Tos Chirathivat

 Director

⌫ 

Mr. Preecha Ekkunagul

   Director and President

ROBINSON

  ⌫  ⌫    ⌫  ⌫              ⌫  ⌫   

The Board Of Directors

The Board of Directors of Robinson Department Store Public Company Limited comprises:

  Mr. Pracha Phathayakorn

 Director

   Mrs. Narttaya Chirathivat

 Director

  Mr. Pandit Mongkolkul



Director

  Mr. Vasit

 Independent Director

Taepaisitpong

 

Mr. Vitaya Chavananand



Independent Director

1,2 Mr. Manit Udomkunnatam and Mr. Thaveevat Tatiyamaneekul resigned from the Board of Directors of the Company effective

on January 5, 2004. And the Plan Administrator has approved to appint Mr. Sudhitham Chirathivat and Mr. Tos Chirathivat to replace their position since January 15th, 2004.

ROBINSON

‚§√ß √È“ß§≥–°√√¡°“√∫√‘À“√ Organization Structure           ⌫         ⌫   

ROBINSON

     

             ⌫      ⌫            

 ⌫  ⌫      ⌫  ⌫              ⌫  ⌫   

ď&#x20AC;ł

Board of Executive Officers

The Board of Executive Officers of Robinson Department Store Public Company Limited is as follows:

1. Mr. Preecha

Ekkunagul

President

2. Mrs. Narttaya Chirathivat

Vice President-General Goods Merchandising Line

3. Mr. Paul

Millar

Vice President-Retail Business Line

4. Mr. Sukitti

Kittipassorn

Assistant Vice President-Retail Business Line

5. Ms. Vajariya

Anamwathana

Assistant Vice President-Marketing Line

6. Mr. Parivat

Sopasit

Assistant Vice President-Finance and Administration Line

ď&#x20AC;´

3 Mr. Thaveevat Tatiyamaneekul's and Mr. Manit Udomkunnatam resigned from the position of Chairman and Chief Executive Officer respectively are effective on March 5th, 2004. 4 Mr. Parivat Sopasit is appointed as Assistant Vice President-Finance and Administration Line effective on November 1st, 2003.

ROBINSON

‚§√ß √È“ß§≥–°√√¡°“√∫√‘À“√ Organization Structure      ⌫          

   ⌫      

  ⌫  ⌦    ⌫ ⌫  ⌫  ⌫    ⌫ ⌫  ⌫  ⌫  ⌦  ⌫ ⌫     ⌫  ⌫⌫         

ROBINSON

Board of Directors of Robinson Planner Limited

1. Mr. Peter

James Gothard

2. Mr. Warwrick

Reginald Kneale

3. Mr. Yundyong Thantiviramanon 4. Mr. Piya

Nguiakaramahawongse

5. Mr. Pandit

Mongkolkul

6. Mr. Pracha

Phathayakorn

Since the directors of the Plan Administrator no. 1 to 3 resigned from the position of directors of the Plan Administrator, a representative of the Unsecured Financial Creditors, effective on April 1st, 2004. The Creditors' Meeting dated March 22nd, 2004 resolved to appoint the following 3 directors,a representative of the Unsecured Financail Creditors, of the Plan Administrator to replace that resigned directors:

1. Mr. Prasert

Patradilok

2. Mr. Thawatchai Vorawandthanachai 3. Mr. Vatcharin Lerdsuvankul

ROBINSON

‚§√ß √È“ß§≥–°√√¡°“√∫√‘À“√ Organization Structure     

  ⌫ 

     

       

 

ROBINSON

     

        

     

 ⌫

     ⌫ 

 ⌫⌫

 

Organization Chart of Robinson Department Store Public Company Limited

Plan Administrator

President Mr. Preecha Ekkunagul

Vice President Mr. Paul Millar

Assistant Vice President Mr. Sukitti Kittipassorn

General Manager Budget and Reporting

Vice President

Mrs. Narttaya Chirathivat

Assistant Vice President Mr. Parivat Sopasitn

Mr. Chatrchai Tuongratanaphan

Assistant Vice President Ms. Vajariya Anamwathana

General Manager

General Accounting

Account Payable

Financial Management

ROBINSON

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+ ;FE GH45<72916 I464<5JK ⌫ L91< 0123456278C M4N O95BC 0DE

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Details of Board of Directors and Authorized Officer Name/ Position

Mr. Sudhitham Chirathivat

Age (years)

Director

Education Background

- Bachelor Degree (Electrical Engineering) University of Maryland (College Park), USA

(Authorized Director)

- MBA (Operations Research)

Family Relationships with the Management

Uncle of

Share Holding (%)

Duration

0.04

1990-2002

Work Experience (past 5 Years)

Mr. Tos

Chirathivat

Director (Authorized Director)

- BA Wesleyan University, CT, USA

Nephew of

- MBA (Finance)

Mr.Sudhitham

Columbia University, NY, USA

President and

Organization /Companies Central Pattana PCL.

Chief Executive Officer Present

Iona University, New York, USA

Mr. Tos Chirathivat

Position

1996-2001

Excutive Commitee-

Central Group of

Retail and Real Estate

Companies

Chief Operational Officer Central Retail Corporation Ltd.

and

2002-Present Chief Executive Officer

Mrs. Narttaya

Central Retail Corporation Ltd.

Chairathivat

Mr. Preecha Ekkunagul Director (Authorized Director)/ President

- Bachelor Degree(Chemical Engineering) Chulalongkorn University

1995-2000

Managing Director

Big C Super Center PCL.

2000-2003

President

CRC Power Retail Co., Ltd.

- Master degree (Industrial and Management) Asia Institute of Technology

B2S Co., Ltd.

2003-Present President

Robinson Department Store PCL.

ROBINSON 57

ROBINSON

√“¬≈–‡Õ’¬¥‡°’Ë¬«°—∫ºŸÈ∫√‘À“√·≈–ºŸÈ¡’Õ”π“®§«∫§ÿ¡¢Õß∫√‘…—∑

⌫

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- & ! #⌫ $ % & ' (

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!$ % ! &

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⌫

Details of Board of Directors and Authorized Officer Name/ Position

Mrs. Narttaya Chirathivat

Age (years)

Director (Authorized

Education Background

- Bachelor Degree -Economic University of Hartford, CT, USA.

Director)/Vice President-

- MBA University of Hartford in Paris,France

Family Relationships with the Management

Aunt of

Share Holding (%)

Work Experience (past 5 Years) Duration

Position

1995-Present Vice President-General

Mr. Tos

Goods Line

Organization /Companies Robinson Department Store PCL.

Chirathivat

General Goods Line

Mr. Pandit Mongkolkul

Director (Authorized

- Bachelor Degree- Accounting,

1992-Present Financial and Investment Harng Central

Chulalongkorn University

Director)

Director

- MBA (Finance and International Business)

Co., Ltd.

Sasin Graduate Institute of Business

2000-Present Director

Administration

Mr. Pracha Phatayakorn (Financial Advisor)

- Bachelor Degree-Accounting, Chulalongkorn University - MBA (Finance and International Business) Sasin Graduate Institute of Business Administration

Department Store

Robinson Planner Co., Ltd.

1994-1997

Senior Department Head Nitipat Co., Ltd. (Investment Banking) Director

2000-Present Director

Robinson Planner Co., Ltd.

ROBINSON 59

ROBINSON

√“¬≈–‡Õ’¬¥‡°’Ë¬«°—∫ºŸÈ∫√‘À“√·≈–ºŸÈ¡’Õ”π“®§«∫§ÿ¡¢Õß∫√‘…—∑ " #"$# %& , + ' # - ( )*'+

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! "# $ "#% & '()$ *+ %, - ⌫

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"# $ "#% & '()$ 0 (

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Details of Board of Directors and Authorized Officer Name/ Position

Mr. Vitaya Chavananand

Age (years)

Education Background

- Bachelor Degree

Family Relationships with the Management

Share Holding (%)

Work Experience (past 5 Years) Duration

Position

1986-Present Director and Finance

- Political Science-Finance Major

Department Head

Organization /Companies Wijitpan Construction Co.,Ltd.

Chulalongkorn University - MBA Webster University, USA

Mr. Vasit Taepaisitphong

(Director & Independent

(Vice President - Asset Management Line)

1988-Present Director and Senior General Manager

- MASTER M.A. (HONS) GLASGOW

1990-1997

UNIVERSITY UK. M.S.C. MARKETING

Business Line)

Tuongratanaphan

Company in the Batagrow Group

- MBA,University of Texas at Arlington

(Vice President - Retail

Mr. Chatchai

Chulalongkorn University

Director)

MR. Paul Millar

- Bachelor Degree-Cost Accounting

- Bachelor Degree (Chemical), Mahidol University - MBA (International Marketing) United States International University - DBA (International Business) United States International University

Marks & Spencer Pll UK

Thailand

- STRATHCLYDE BUSINESS SCHOOL, UK.

Country Manager,

1998-Present Vice President-Retail

1996-2001

Robinson Department

Business Line

Store Public Co., Ltd.

- Store General Manager

Big C Super Center

- Operation Director - Training & Development Director - Special Project Director

ROBINSON

Assistant

ROBINSON

√“¬≈–‡Õ’¬¥‡°’Ë¬«°—∫ºŸÈ∫√‘À“√·≈–ºŸÈ¡’Õ”π“®§«∫§ÿ¡¢Õß∫√‘…—∑ " #"$# %& , + ' # - ( )*'+

⌫

⌦ !

⌫

( ⌫ $ ) !* + ( "+ ' * + ) !

⌫

( ⌫ ) ) !* + ) ! ( "+ ) !% & , + ) !

(

" # $ % &'

( ⌫ - ' ⌫ + . /! +

(

( ' & . ( ( / ⌫ + # 0

(

! " #⌫

(

% &

' ! #

⌫(#) )

* + ⌫ , ! (#) !

⌫ ⌫ ⌫ ⌫

Details of Board of Directors and Authorized Officer Name/ Position

Mr. Sukitti Kittipassorn

Age (years)

- Bachelor Degree (Pharmacology),

Share Holding (%)

Work Experience (past 5 Years) Duration

- Bachelor Degree, Faculty of Art,

- Master Degree, Faculty of

(Assistant Vice President-

1996-1999

General Manager

Inchcape Marketing

1999-Present Assistant

- Bachelor Degree (Cost Accounting),

Robinson PLC.

Vice President-

Thammasat University

Administration Line)

Store Public Co., Ltd.

Service Co., Ltd.

Mass Communication,

Marketing Line)

Finance and

Robinson Department

Business Line

Thammasat University

Anamwathana

(Assistant Vice President

Organization /Companies

- MBA, Thammasat University

Retail Business Line)

Mr.Parivat Sopasit

Position

1996-Present Vice President-Retail

Mahidol University

(Assistant Vice President-

Miss Vajariya

Education Background

Family Relationships with the Management

Marketing Line

1997-2000

Chulalongkorn University 2000-2003

Accounting & System

Siam Guardian

Manager

Glass Co., Ltd.

Accounting Director

CRC Power

2003-Present Assistant Vice PresidentFinance and Administration

Robinson Department Store Public Co., Ltd.

ROBINSON 63

°“√®—¥°“√ Management ⌫ 

      ⌫        ⌫         ⌫⌫ ⌫ ⌫⌫       ⌫    ⌫     ⌫ ⌫  ⌫⌫ ⌫    ⌫  ⌦ ⌫ ⌫  ⌫     ⌫          ⌫  ⌦ ⌫ ⌫  ⌫⌫  ⌫   ⌫ ⌦   ⌫    ⌫    ⌫          ⌦      ⌫         ⌦ ⌦  ⌫ ⌫     ⌫  ⌫  ⌫  ⌫  ⌫      ⌫⌫ ⌦  ⌦ ⌫     ⌫ ⌫ ⌫ ⌫   ⌫

ROBINSON

Management Scope of work and authority of the Board of Directors 1. To carry out activities in accordance with the Governing Laws, Objectives and the Articles of Association of the company and the resolutions of shareholdersâ&#x20AC;&#x2122; meeting 2. To honestly perform the functions of Directors, protect the Company and maximize any benefit to the Company. 3. Directors are obliged not to operate the same business and not to compete with the Company either for their own interest or othersâ&#x20AC;&#x2122;. Except in such case that a notice is made to the shareholders' meeting before the election of the Board. 4. To notify the Company without delay in the following cases; 4.1 There are some direct or indirect benefits/losses to the Director in any contract the Company makes during an accounting period. The Director must inform facts about the nature of the contract, people involved in the contract and also benefit/loss of the Director. 4.2 In the case of a Director holding shares or bonds in the Company and subsidiaries, the Director has to specify the number of shares that are increased or decreased in each accounting period. 5. To prepare a financial status report of the Company

However, the administrative authority of the Company is currently with the Plan Administrator, who has authorized executives of the Company to operate the business in general.

The Scope of Authority and Duty of the Board of Executive Officers 1. To carry out activities of the Company in accordance with the authority given to the Board. 2. To carefully carry out the Company's business operations. 3. To honestly perform functions, protect and maximize the benefit of the Company.

Nomination of Directors and Executives of Robinson Department Store PCL. Structure of the Board of Directors / the Appointment / and Dismissal Procedure Structure: The Board of Directors comprises at least five Directors and at least haft of the numbers of Board of Directors must domicile in Thailand territory. Appointment Procedure: Directors must be appointed in the General Shareholders' Meeting according to the following rules and processes: 1. Voting will be casted by majority, assigning one share with one vote. 2. Each Shareholder shall cast all his votes to each nominee.

ROBINSON

°“√®—¥°“√ Management  ⌦  ⌫     ⌫ ⌦⌫⌦   ⌫⌫  ⌦   ⌫⌫  ⌫ ⌦⌫ ⌫ ⌫ ⌦ ⌫⌦ ⌫ ⌫⌫  ⌫⌫⌦  ⌦ ⌦ ⌫  ⌫  ⌫       ⌦    ⌫⌫⌫  ⌫ ⌫ ⌫     ⌦⌫     ⌫              ⌫ ⌫ ⌦  ⌦ ⌫      ⌫        ⌫    ⌦   ⌫ ⌫   ⌫      ⌫       ⌫⌫⌫ ⌫                     ⌫       ⌦ ⌫         ⌫    

ROBINSON

3. The nominee who has the highest vote and the runners up will be elected as Directors equal to the number of Directors that shall be appointed. In case, there is a tie between nominees, the Chairman will add one vote to reach the final resolution.

In case o position becomes available before the due term, the Board of Directors must select a person who is qualified to be a replacement in the next Director's meeting except when the term of Directors has less than 2 months to be served. The replacement will be in his term only for the remaining period of that Director whom he replaces. However, the resolution of the replacement has to come from 3/4 of the total votes of the remaining Directors.

Number of Directors is not specified in The Articles of Association of the Company, therefore it depends on the decision of a General Shareholders' Meeting.

Minor Shareholder's rights in appointing a Director of the Company The Company's Articles of Association has specified that each shareholder has one vote for one share, and the cumulative voting is not applicable.

However, the administrative authority is currently not with the Board of Director, it is instead with the Plan Administrator. Therefore, such rights to appoint a Director are also be with the Plan Administrator.

Remuneration for Directors and the Management At present, Director and the Management Remuneration Plan is set to refer to the industry index, in order to attract and maintain the qualified and expertise Executive and Directors with the company. Remuneration Subcommittee is not yet established as the company is now under the Rehabilitation Plan. Summary of Remunerations are provided below:

Monetary Remuneration The remuneration for Directors comprises monthly remuneration and car allowances. The total remuneration for 4 Directors in 2003 is Baht 7,217,490. The remuneration for the Management including the management who are directors of the company comprises monthly salary, bonus and others (car allowances). Total remuneration for 6 Directors in 2003 is Baht 14,965,835.

ROBINSON

°“√®—¥°“√ Management ⌫  ⌫ ⌫ ⌫ 

  ⌫  ⌦ ⌫ ⌫      ⌦⌦  ⌫⌫        ⌫       ⌫  ⌫         ⌦⌫  ⌫ ⌫ ⌦⌫ ⌫⌫       ⌫⌫ ⌫ ⌫    ⌫     ⌫    ⌫⌫      ⌫   ⌫ ⌦⌦⌫  ⌫⌫   ⌫    ⌦⌦                ⌫                        ⌫     ⌫ ⌫           ⌫        

ROBINSON

Non-Monetary Remuneration There is no non-monetary remuneration in 2003.

Corporate Governance

1. Policy of Corporate Governance The Company, by the administrative authority of the Plan Administrator realized the importance of "good governance", in concert with the policy of Stock Exchange of Thailand. Therefore, Company Executives and the Plan Administrator studied directors and appropriate procedures to implement the "good governance" principles, such as internal auditing to supervise operations according to an internal audit provision. Another consideration is investor relations for distributing the correct information to shareholders, analysts, and other stakeholders. However, the company is still in the process of rehabilitation, therefore, there are limitations to completely implementing the "good governance" principles. The Company and the Plan Administrator are still implementing the following principles in order to support the good governance. - Prudent administration in accordance with the Rehabilitation Plan to achieve good performance, together with the long-term value added, and the prevention of any default, which would harm shareholders. - Implement accountability operation and timely disclosure of information to all shareholders equally. - Operate with a high concerns of risks, establish a precaution criteria to prevent any damage including a contingency plan in the event of emergency. - Strict compliance to the regulation imposed by the regulatory agency including the Stock Exchange of Thailand and the Securities and Exchange Commission.

2. Shareholder's Meeting and Rights The Company did not set up 2002 Shareholder's Meeting because the rights of shareholders except rights to receive dividends fell upon the Plan Administrator. However, the Company still reported the status of the operation and the progress on the Rehabilitation Plan to the shareholders via the Stock Exchange of Thailand electronics channel. The Company's Annual Report was also distributed to all shareholders. In addition, the Company held a press conference on November 18th, 2002 to clarify the understanding on the principle of the Rehabilitation plan, the progress on the implementation according to the plan and the Company's operational performance

ROBINSON

°“√®—¥°“√ Management   ⌫  ⌫       ⌫  ⌫          ⌫   ⌫⌫    ⌫ ⌫⌫⌫⌫      ⌦ ⌫   ⌫   ⌫       ⌫  ⌦       ⌦      ⌫    ⌫      ⌫⌫  ⌫     ⌫    ⌫⌫    ⌦ ⌦⌫ ⌫  ⌦        ⌫         ⌫          ⌫  ⌫     ⌫    ⌫ ⌫ ⌫ ⌫             ⌦  ⌫       ⌫ ⌫ ⌦  ⌫        ⌫⌫      ⌫ 

ROBINSON

3. Stakeholders' Right Beside the stakeholders, the Company also realizes the importance of all groups of stakeholders such as Executives, employees, customers, business partners, competitors, creditors, the community, the government and other concerned parties. The Company realizes that all of these stakeholders supports will lead to the long-run success of the Company.

4. Leadership and Vision The Plan Administrator's Board of Directors is comprised of 3 representatives from the debtors and 3 representatives from the creditors. They share collaboration to determine the vision, mission, strategy, target, business plan and annual budget proposed by the Company Executives and also supervised the Executives who were assigned by the Plan Administrator to operate in accordance with the specified terms and conditions set forth in the Rehabilitation Plan. The purpose is to maximize the value to the business under the terms and conditions and objectives of the Plan. Nonetheless, the mentioned authority is assigned only for the normal business operations, therefore, if there is any extraordinary cases, the company share seek prior approval from the Plan Administration.

5. Conflict of Interest The Company policy is to follow the Stock Exchange of Thailand regulations regarding the prevention of conflict of interest that includes inter-company transactions and transfer /acquisition of assets by means of price and condition - setting base on Arm's Length basis. Moreover, the Company supervises the use of inside information by determine that new executives must report the holding of securities and also the transfer of the Company's securities pursuant to section 59 of the Securities and Exchange. Act B.E. 2535. The company also clearly specifies the responsibilities of the executives and organization units by prohibiting executives or any persons who have inside information from disclosing that information to outsiders or unconcerned parties, except in the case of public disclosure according to the Stock Exchange of Thailand regulations. Any violation shall be subject to the disciplinary action according to the Company's regulations.

6. Business Ethics The Company is developing a written policy regarding business ethics that executives and employees are required to comply with. However, the company has normally clarified the understanding of these ethic issues to new executives and employees during orientation with special emphasis on the punishment if ethical conduct is violated.

ROBINSON

°“√®—¥°“√ Management  ⌫         ⌫   ⌫   ⌫   ⌫ ⌫ ⌫      ⌦    ⌫     ⌫  ⌫  ⌫       ⌦⌦ ⌫  ⌫⌦ ⌦    ⌫                   ⌫            ⌫        ⌫    ⌫    ⌦  ⌦    ⌦       ⌫    ⌫  ⌫ ⌫⌫⌫    ⌫         ⌫ ⌦⌦  ⌫   ⌫  ⌫         ⌫ ⌫     ⌫ ⌫     ⌫  

ROBINSON

7. Balance of Power for Non-Executive Directors/Aggregation or Segregate of Position The authority of the Board of Directors has transferred to the Plan Administrator comprised of 3 representatives from the debtors and 3 representatives from the creditors. This committee has duty and responsibility in accordance with the Bankruptcy Law to operate under the Rehabilitation Plan with the purpose of continuous business operation in the long run and to ensure that creditors would receive the amount owed as planned. The Plan Administrator realizes the benefits of all groups of stakeholders including the shareholders in carrying out the business operation by closely monitoring and governing the Company's operation. However, after the Company has successfully completed the Rehabilitation Plan, the Company's management authority will be returned to the Board of Directors of the Company. At present, the Board of Directors comprises of 9 Directors, including 2 independent Directors, which are accounting to 20% of all Board members. However, the Chairman is not in the position of Management Director.

8. Board of Director's Meeting At present, the Company has not held any Board of Directors' Meeting owing to the transfer of the Board pf Directors' authority to the Plan Administrator.

9. Subcommittee The committee has not set up a subcommittee to assist in supervising operations. However, the Company is studying the process in setting up an audit committee, which will be established once the Company has successfully completed the Rehabilitation Plan. Although the Remuneration Subcommittee has not been established, the company has procedure to consider the appropriate remuneration, which is reflected the industry standard.

10. Controlling Systems and Internal Audit The company substantially realizes the importance of internal control by clearly determining the duty and authority of executives and staff in the form of a flowchart where the revision and improvement of authority are periodically considered based on the competitive environment and the risk. The Company supervised the utilization of assets by establishing the Asset Management Unit including the separation of the operators' duties to be balance and crosschecked. Additionally, the Company implemented internal audit and control the finance of the Company and subsidiaries by reporting the financial report to the executives.

ROBINSON

°“√®—¥°“√ Management    ⌦  ⌫       ⌫⌫⌫  ⌫   ⌫      ⌫     ⌫⌫  ⌫          ⌫ ⌫⌫  ⌫    ⌫ ⌫     ⌫           ⌫      ⌫    ⌫ ⌫   ⌫⌫ ⌫⌫       ⌫ ⌫ ⌦ ⌫⌫     ⌫⌫     ⌫  ⌫  ⌫     ⌫      ⌫   

ROBINSON

For the internal audit, the Company is studying the process to set up such unit. However, the Plan Administrator is presently responsible to monitor the Company's cash flow on the monthly basis. This is to ensure that this is no unrelated transaction arising in the normal business operation of the company.

11. Risk Management The Company regulates the criteria to prevent and reduce 3 major risks as follows: (1) Criteria to prevent/reduce the merchandising risk The Company increases the strictness of the inventory management by arranging the appropriate level of goods to meet the customers' demand, regularly checking and counting the correct number and detail of transactions including the follow-up of inventory aging to prevent obsolete and quality depleted stocks. (2) Criteria to prevent the loss and damaged assets The Company provides the criteria and also arranges the officers to take care and responsible for the loss prevention such as the arrangement of the fire alarm, fire extinguish equipment, contingency plan to the bomb-threat, riot, blackout, the installation of CCTV to prevent the assets robbery also including the arrangement of the contingency plan to reduce the impacts arising from such events and to maintain the business opportunity as much as possible. (3) Criteria for security The Company sets up a committee to be responsible for the hygiene, safety and environment in all 18 branches to ensure that employees can work effectively on the basis of safety and good health.

12. Board of Director's Report The committee of the Plan Administrator and the Executives are responsible for the consolidated financial statements of the Company and its subsidiaries and all information presenting in the Annual Report. Such financial statements are prepared in accordance with Thai General Accepted Accounting Principles by the adoption of the appropriate accounting policy and consistent practice including the disclosure of substantial information in the Notes to the financial statements. The committee has the opinion that the internal control of the Company is at the satisfactory level and believes in the creditability of the financial report of the Company and its subsidiaries as of December 31st, 2003

ROBINSON

°“√®—¥°“√ Management      ⌫     ⌫     ⌦⌫         ⌫   ⌦ ⌫          ⌫     

  ⌫  ☺   ⌫⌦⌫⌫  ⌫     ⌫          ⌦ ⌫ ⌫   ⌫ ⌫   ⌫    ⌦  ⌫   ⌫ ⌫  ⌫⌫⌫ ⌫  ⌫      ⌫⌫ ⌫     ⌫    ⌫        ⌦ ⌦ ⌫     

ROBINSON

13. Investor Relations The company realizes the importance of the disclosure of the accurate, complete, transparent, equal and timely information including the financial report and business information which impact the price of the Company's share by distributing such information via the communication channel of the stock market. The Company, however has not set up the Investment Relation Unit, the financial management division is assigned to be responsible for the investment relations by communicating the information to the institutional investors, shareholders, stock analysts, press and general public. To acquire such information, the investors are invited to contact at tel. 02-248-2626 extension 733.

Supervision on Insider Information

The company has clearly determined the duty and responsibility of staff in form of Job Description and also has trained staff to accurately understand theirs duties including the Company's regulations. However, such action may cause some inside information revealing to staff and then to public without permission. Therefore, the Company specifically allows the high-level executives to be informed such important inside information, especially the financial information by limiting the information access by each level of staff with the assistance of computer system. The Company will disclose information to those concerned at the appropriate time only without the contravention to the concerned regulations of the Stock Exchange of Thailand and relevant laws. Moreover, the Company has regulation in connection with the staff disclosing the Company's confidential information. This is to enforce in the case of investigation that any staff disclose the confidential or financial information without permission shall be subject to be investigated and strictly punished in accordance with the Company's regulations . Human Resources

The Company has 2,162 employees as of December 31st, 2003 including the employees in the head office and operational employees routinely operate in 18 branches throughout the country.

ROBINSON

°“√®—¥°“√ Management  ⌫    ⌫   ⌦  ⌦  ⌦       ⌫    ⌫    ⌫ ⌫     ⌫ ⌫  ⌫   ⌫  ⌫ ⌫         ⌫ ⌫     ⌦ ⌫⌦ ⌫ ⌦    ⌦⌫⌫     ⌦                    ⌫ ⌫⌫       ⌫ ⌫          ⌫ ⌫  ⌦ ⌫  ⌫      ⌦         

ROBINSON

Remuneration

The staff remunerations are salary, bonus, reward in consideration of work performed, special allowance, 4% jointly paid to the Social Security Fund including allowances in form of medical treatment, marriage payment, educational payment to the inheritance, death payment, catastrophe payment, uniform, right to purchase with staff price, annual medical check, health insurance for executives etc. Moreover, the company has set up the Employees' Provident Fund in which the company will jointly pay at the same rate applied to the salary and paid by the staff. In 2003 the Company incurred personnel expenses of Baht 458,086,491.76.

Policy to Develop the Employee Employees are the valuable assets of the organization and the Company realizes the importance of all staff at all levels. The Company has a policy to continuously and truthfully train and develop all staff .A Training Road Map and annual training by action plan to be consistent with Training Road Map and the Company's policy were established strongly. There are 4 types of trainings as follow: 1. Functional Training 2. Management Training 3. People Skill Training 4. Technological and Computer Skill Training

Additionally, the company has a goal to take care staff to be pleased and ready to work which also supports to provide activities both with staff and with the staff and families such as the New Year party for staff, family day's activities to build better and closer relationships. Besides, it also provides the staff library (Easy Corner) for their recreations and further study by their owns, and also takes care, arranges and maintains facilities to be ready to use at all times.

ROBINSON

°“√§«∫§ÿ¡¿“¬„π Internal Control       ⌫      ⌫   ⌫⌫  ⌫ ⌫ ⌫⌫  ⌫⌫  ⌫   ⌫ ⌫   ⌫⌦ ⌦⌫⌦   ⌫  ⌫⌫ ⌫             ⌫      ⌫       ⌫ 

ROBINSON

The Company is under the Rehabilitation Plan administered by the Robinson Planner Ltd. The Plan Administrator closely monitors the operation of the Company and its subsidiaries, especially the Companyâ&#x20AC;&#x2122;s cashflow and also monitors the cashflow beyond the ordinary course of business.

For the opinion of the Company's auditor, there is no opinion concerning the internal control of the Company in the audited report and financial statements for the year 2003.

For the risk management, the Company concerns and substantially considers the risk factors both currently expose and expose in the future. The Company also analyzes the consequences and regulates the criteria or the business plan to mitigate risks as mentioned in the article of risk factors.

For the control and monitor, the Company clearly regulates the approval authority and the authority level in order that the expense requisition is on track with the budget approved by the Plan Administrator. Also, the regulations and the operation process and the audit are distinctly regulated to evaluate the performance and find out the deficiency need to be improved.

ROBINSON

√“¬°“√√–À«Ë“ß°—π Inter-Company Transaction  ⌫  ⌦⌦ ⌫ ⌫  ⌫ ⌫ ⌫     ⌫    ⌫⌫ ⌫  ⌫  ⌫ ⌫ ⌫   ⌫    ⌫ ⌫  ⌫  ⌦   ⌫  ⌫    ⌫⌫⌫ ⌫⌫

  ⌫      ⌫    

ROBINSON

 ⌫ 

 



 ⌫    

⌫



      ⌫  ⌫ 

         

 

 ⌫ 



   ⌫    ⌫⌫  ⌫     

 

Inter - Company Transactions Parts of assets, liabilities, income, cost and expenses of the Company and its subsidiaries are inter-company transactions. These businesses are related by means of having the same shareholders and/ or directors. In this regard, the Company and its subsidiaries have policies in setting the transfer price of the related parties as follows: (a) The Company and its subsidiaries have policies in setting price to sell goods and provide service to the related parties in which such price shall not less than the price in acquiring goods or receiving services. (b) Interest costs on borrowing or lendings between the company and subsidiaries and related companies are determined by referring to the interest rates of certain local financial institutions plus 1.0 % to 1.5 % per annum (c) The Company and its subsidiaries have policies in setting price for rental or service based on the percentage of price per square meters with reference to the market price. Table representing the material inter-Company transactions

Related Companies

Relationship with the Company

InterCompany Value

Cost of goods C-Trade Sakol Co., Ltd.

the same group of control

520.43

Central Trading Co., Ltd. Central Garment Factory Co.,Ltd. Textral Textiles Limited

Area Service Charges Central Trading PLC.

Directorship

29.30

Rental and Service Income Power Buy Co., Ltd.

Robinson's Associates held 40% of shares.

51.97

CRC Sport Co., Ltd.

Robinson's Associates held 29.19% of shares.

47.10

Rental and Service Income B2S Co., Ltd.

the same group of control

31.86

CRC Power Retail Co., Ltd. Office Club (Thai) Co., Ltd.

ROBINSON

√“¬°“√√–À«Ë“ß°—π Inter-Company Transaction    ⌫  ⌦ ⌫ ⌫ ⌦  ⌫            ⌦ ⌫ ⌫    ⌫   ⌦           ⌫ ⌫ ⌫  ⌫    ⌫ ⌫⌦     ⌫    

ROBINSON

The Necessary of Inter-Company Transactions

Owning to the fact that the Company has operated the group of businesses where most of businesses are similar, which are Department Store or retail business. To increase the capability in competition bargaining power with the business partners and the effectiveness in capital management, the Company, subsidiaries and Associates have entered into the inter-company transactions. Some transaction made between the Company and associates which is in form of renting out space coming from the business necessity in seeking the particular goods and fully offer to sell in the Department Store such as Power Buy, Super Sport, B2S etc. Such transaction will then assist the Company to maintain the customer base.

Measurement and Procedure to approve the Inter-Company Transactions

The Company and its subsidiaries are complied with the Notification of the Stock Exchange of Thailand regarding the measurement, method and the disclosure of related transactions of the listed companies under the supervision of the Plan Administrator.

Future trend for the Inter-Company Transactions

The Company and its subsidiaries continually have the policy in respect of the inter-company transactions as they are arising in the normal business operation. The terms and conditions are reflected the market mechanism to maximize the benefit to the company.

ROBINSON

§”Õ∏‘∫“¬·≈–«‘‡§√“–ÀÏ∞“π–∑“ß°“√‡ß‘π·≈–º≈°“√¥”‡π‘πß“π Management Discussion and Analysis ⌫    ⌫ ⌦     ⌦   ⌫⌫⌫  ⌫ ⌫   ⌫    ⌫⌫   ⌦   ⌫     ⌫             ⌦     ⌦ ⌫⌫     ⌦  ⌫  ⌫⌫⌫⌫  ⌫ ⌦ ⌫       ⌦⌫             ⌫     ⌫⌫⌫      ⌫  ⌦  ⌫    ⌫⌫ ⌦        ⌫ ⌫     ⌫⌫   ⌫  ⌫  ⌫ ⌫  ⌦  ⌫  ⌦   ⌫     ⌫   ⌦ ⌫⌫      ⌦   ⌦  ⌦ ⌫    ⌫ ⌦      ⌫        ⌫  ⌦ ⌦   86

ROBINSON

The Explanation and the Financial Analysis and the Operational Result (Management Disscussion and Analysis)

Financial Status and Operational Results The Company and its subsidiaries generated the sales increase Baht 149.39 million in 2003, representing 1.96% sales growth, compared to 0.75 % sales growth in 2002. Given the strong competition environment in retailing businesses and the SARS outbreaks situation which partly affected the Company and its subsidiariesâ&#x20AC;&#x2122; performance in the second quarter 2003, the Company and its subsidiaries still be keeping the growth rate at a satisfaction level.

Sales and Other Revenues The sales increase in connection with the re-merchandising policy resulted in a higher gross profit margin as evidenced by the increase in gross profit amount of Baht 132.03 million, or 8.36 % increase from 2002. In addition to rental and service income increased of Baht 10 million from the same period of 2002. The increase was attributed to the cooperation between the Company and its subsidiaries and business alliances to open new area in Robinson for specialty stores in exchange for shared income as percentage of their sales. Additionally, Gain from investment in affiliated companies was at Baht 32.26 million compared to Baht 73.40 million in 2002, recorded by the equity method. The decrease was due the realization of historical loss in the subsidiaries of affiliated companies, together with the implementation of new provision policy for potential loss from stock obsolescence.

Cost of sale The Company and its subsidiaries have cost of sales for the year 2003 in the proportion of 77.5% of sale comparing to the same period of the previous year of 79.26%. The reduction of that cost of sale comes from more effectiveness in merchandising, and also the reduction of frequency in sale promotion in from of discount, which is the continuous attempt since 2002.

Selling and Administrative Expenses An increase in selling and administrative expenses of Baht 78.56 million, or 3.73 % increase compared to the same period of 2002 which was much below the growth in gross profit. This was mainly due to the increase in personnel expenses to facilitate the development of merchandises, marketing expenses incurred from the Re-launching event, the increase in utility expenses as a result of adjustment in selling area of each

ROBINSON

§”Õ∏‘∫“¬·≈–«‘‡§√“–ÀÏ∞“π–∑“ß°“√‡ß‘π·≈–º≈°“√¥”‡π‘πß“π Management Discussion and Analysis ⌫⌫ ⌫  ⌫       ⌫ ⌫⌫   ⌫  ⌫    ⌫⌫   ⌫  ⌦⌫⌫⌫ ⌫⌫⌫ ⌦⌦⌫⌫      ⌦⌫ ⌫ ⌫ ⌫      ⌫ ⌫        ⌫      ⌦ ⌫⌫            ⌫     ⌫   ⌦  ⌫  ⌫ ⌫ ⌦ ⌫    ⌫     ⌫⌦⌫⌫   ⌫    ⌫ ⌫       ⌫     ⌫ ⌫ ⌫    ⌫ ⌫  ⌦           ⌫ ⌫    ⌦⌦    ⌫    ⌫⌦  ⌫  ⌫     ⌫ ⌫     ⌫   

ROBINSON

store, and the newly implemented provision for credit stock obsolescence. However, such increase was partly setoff by the reduction in stock loss and damage as a result of preventive measure for stock loss control, and the reduction in restructuring expenses since the Company had already completed the major restructuring steps in 2002.

Net Profit and Interest Expenses For interest expense shown in 2003, the Company and its subsidiaries incurred interest expense of only Baht 7.89 million which was paid to a certain local financial institutions according to the restructuring agreements of the Company 's subsidiaries. This was not the interest payable to the Notes issued in accordance which the Company' s Business Reorganization Plan. The Company had already included all accrued interest expense portion being fall due from the issue date to the maturity date of new Notes over the par value of the Notes, thus there would be no interest expense incurred from the Notes shown in the Profit & Loss Statement. In consideration of profit after interest, tax, and Minority Interests (excluded debt-restructuring gain in 2002 of Baht 15,256.93 million,) the Company and its subsidiaries recorded a net profit of Baht 515.20 million in 2003, an increase of Baht 52.57 million of 11.36% from 2002.

Assets Total assets of the Company and its subsidiaries in the year 2003 are decreased due to the amortization of the long-term rental rights for the use of land and buildings which are considered as the major assets of the Company. Furthermore, the Company has changed the method to record the inventory and trade creditors. In the Balance Sheet as of December 31st,2003, the Company recorded only inventories and trade creditors, credit to be consistent with the responsibility in the Company's inventory management.

Liabilities and Shareholders' Equity Liabilities of the Company and its subsidiaries are accounting for 58% of total liabilities, comprising of partially secured amortizing notes issued to the creditors in accordance with the Rehabilitation Plan which will be due in 2005. In January 2004, the Company started to repurchase Notes to reduce the refinancing risk and the default risk on the final repayment of principals and interests . The increase in shareholders' equity came from the ability to build the sale growth and the continuous profit earned from 2002 and 2003. Accordingly, the retained earning has at the first time incurred in the second quarter of the year 2003. As of December 31st, 2003, the Company has retained earning in the amount of Baht 364 millions.

ROBINSON

ß∫°“√‡ß‘π

Financial Statements

⌫ ! "# $ %! & ! ' &# ( & ⌫) *+ , & # -./0 1'2 -./. % ! &# 1 ! 3'⌫ ) 13' )& &# 1'2 21 ! &# 1 )'23⌫ !& !⌫ & ! "# $ 1'2 ) %! & ! ' ( & ⌫) *+ , & # -./0 1'2 -./. % ! 1 ! 3'⌫) 13' )& 1'2 21 ! 1 )'23⌫ !& !⌫ & 4 2 ! "# $ 5⌦)

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ROBINSON

REVIEW REPORT OF CERTIFIED PUBLIC ACCOUNTANT

To the Shareholders of Robinson Department Store Public Company Limited

I have audited the accompanying consolidated balance sheets of Robinson Department Store Public Company Limited and its subsidiaries as at December 31, 2003 and 2002, the consolidated statements of income, changes in shareholders' equity and cash flows for each of the years ended December 31, 2003 and 2002. I have also audited the balance sheets of Robinson Department Store Public Company Limited as at December 31, 2003 and 2002, the statements of income, changes in shareholders' equity and cash flows for each of the years ended December 31, 2003 and 2002. The management of Robinson Department Store Public Company Limited is responsible for the correctness and completeness of information presented in these financial statements. My responsibility is to issue a report on these financial statements based on my audits.

Except as discussed in the following paragraph, I conducted my audits in accordance with generally accepted auditing standards. This Standard requires that I plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

The financial statements for the year ended December 31, 2003, included investments in the associated companies and share of profit from investments in those associated companies which were computed from the financial statements of those companies for the year ended December 31, 2003, which were not audited. The investments in the associated companies as at December 31, 2003 amounted to approximately Baht 344.3 million (4.55% of total assets for the consolidated financial statements and 4.63% of total assets for the Company's financial statements). The share of profit from investments in the associated companies for the year ended December 31, 2003, amounted to approximately Baht 32.3 million (6.27% of net profit).

ROBINSON

ß∫°“√‡ß‘π

Financial Statements

⌫ ⌫ ⌦ ⌫ ! "# $ % ⌫ " & ⌫$ ⌫' $# ( ) * ⌫ +, - . ' ) #/ ' ) )'$ $#$/ ' ) ⌫$ $ # #⌫

% $ $ . 0 $ / # 1 2 3 ' ) % $ $ . 0 $ / # 1 2 3 ' ) %

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? . 3 4$ 52⌫ 5 ) ⌫ ++8@ % . ⌫ ⌫ A4 " 2 $ 52⌫ / # . ,8 A -9 8

ROBINSON

In my opinion, except for the effects of such adjustments to the 2003 financial statements, if any, as might have been disclosed had the financial statements of the associated companies been audited by me, as described in the third paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Robinson Department Store Public Company Limited and of Robinson Department Store Public Company Limited and subsidiaries as at December 31, 2003 and 2002, and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles.

As described in Note 3 to the financial statements, the Company had retroactively adjusted the recording of share of profit from investments in certain associated companies, which was previously computed from the financial statements not audited and was recorded in the financial statements for the year ended December 31, 2002. Subsequently, the financial statements of those associated companies were audited by me. Accordingly, our present opinion on the financial statements for the year ended December 31, 2002, as presented herein, is different from my previous report.

(Winid Silamongkol) Certified Public Accountant Registration No. 3378

KPMG Phoomchai Audit Ltd. Bangkok February 17, 2004

ROBINSON

ß∫°“√‡ß‘π

Financial Statements

⌫ !" # $%&' $%&%

⌫

( $#' ) ( ⌫ ( ( $# ) ⌫ . B $* - B ⌫( ⌫ + B % , C ( - ) , ) )$ ' )( # ' %

$ . . ( , B $* - $ . * ( ⌫ , ⌫

1,365,213,659 1,346,433,315 5, 6 6

22,995,436 17,311,578 120,472,940 118,851,350

357,078,398 872,208,993 40,434,351 85,516,086

32,075,941 84,998,000

5 7 8

1,829,942,778 1,264,540,677 520,744,752 483,829,955 345,107,517 312,068,465 69,240,907 50,401,273 42,630,586 34,877,281 2,098,667,694 2,016,827,471 2,700,709,716 2,600,769,357

9, 14

344,262,690 311,952,148 1,737,867,428 1,714,922,738

5 10, 14 11, 21

61,223,493 61,223,493 4,359,484,780 4,652,424,230 2,711,813,868 2,950,588,844 770,913,993 797,274,934 230,751,121 245,980,773 5,474,661,463 5,761,651,312 4,741,655,910 4,972,715,848

⌫

( * - * * ⌫( ⌫ + ( - ) , ) ) ' ⌫( ⌫ + ⌫# . ' ) */ *. B $* - $ .0 * ( ⌫ ,

⌫

ROBINSON

7,573,329,157 7,778,478,783 7,442,365,626 7,573,485,205

⌦ ⌫

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS DECEMBER 31, 2003 AND 2002

ASSETS In Baht Consolidated 2003 Note

2002

The Company Only 2003

(Restated)

2002 (Restated)

CURRENT ASSETS Cash and cash equivalents

1,365,213,659 1,346,433,315

357,078,398 872,208,993

Trade accounts receivable - net - Related parties - Other companies

5, 6 6

22,995,436 17,311,578 120,472,940 118,851,350

40,434,351 85,516,086

32,075,941 84,998,000

Short-term loans and advances to subsidiaries Inventories - net Other current assets

5 7 8

Total Current Assets

1,829,942,778 1,264,540,677 520,744,752 483,829,955 345,107,517 312,068,465 69,240,907 50,401,273 42,630,586 34,877,281 2,098,667,694 2,016,827,471 2,700,709,716 2,600,769,357

NON-CURRENT ASSETS Investments in shares of related parties

Total Non-Current Assets

344,262,690 4,359,484,780 770,913,993 5,474,661,463

TOTAL ASSETS

7,573,329,157 7,778,478,783 7,442,365,626 7,573,485,205

Long-term loans to related parties Property and equipment - net Other non-current assets

9, 14 5 10, 14 11, 21

311,952,148 1,737,867,428 1,714,922,738 61,223,493 61,223,493 4,652,424,230 2,711,813,868 2,950,588,844 797,274,934 230,751,121 245,980,773 5,761,651,312 4,741,655,910 4,972,715,848

The accompanying notes are an integral part of these financial statements.

ROBINSON

ß∫°“√‡ß‘π

Financial Statements * . # ( ) &'$

/ ⌫ 01 2 3456 &'$ 3454

⌫ " #$ %&' $(

⌫! ⌫

⌫ ⌫ ⌫ ⌫ ! "" # $ % $ $ &'$ ( ⌫ ⌫ % ⌫ ' $ ) ( ! & ' * +( ⌫ , ( ( ⌫ # ( )# $ ⌦ ⌫ ⌫ ⌫

⌫! ⌫

ROBINSON

13 5

112,731,953 102,376,337 70,272,763 1,243,802,572 1,335,220,650 649,997,334 159,193,373 159,193,373 17,464,932

58,512,005 706,426,703 -

12,759,126 1,047,470,897 1,036,628,425

372,722,000 372,240,100 372,722,000 372,240,100 345,804,703 375,313,609 227,516,125 262,881,009 2,251,719,533 2,357,103,195 2,367,979,119 2,436,688,242

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS (Continued) DECEMBER 31, 2003 AND 2002

LIABILITIES AND SHAREHOLDERS' EQUITY In Baht Consolidated 2003

The Company Only

2002

2003

2002

Note

(Restated)

112,731,953 102,376,337 70,272,763 1,243,802,572 1,335,220,650 649,997,334

58,512,005 706,426,703

CURRENT LIABILITIES Trade accounts payable - Related parties - Other companies Liability under guarantee agreement of subsidiary

159,193,373 159,193,373

Short - term loans and advances from related parties

17,464,932

12,759,126 1,047,470,897 1,036,628,425

Current portion of partially secured amortizing notes (convertible upon default) Other current liabilities Total Current Liabilities

372,722,000 372,240,100 372,722,000 372,240,100 345,804,703 375,313,609 227,516,125 262,881,009 2,251,719,533 2,357,103,195 2,367,979,119 2,436,688,242

ROBINSON

ß∫°“√‡ß‘π

Financial Statements * . # ( ) &'$

/ ⌫ 01 2 3456 &'$ 3454

⌫ " #$ %&' $(

113,300,000

⌫ ⌫

! ⌫ " # $ % " & '($

⌫ ) $ $ * ! + ⌫ , $#, & - ⌦ ⌫ , ) )" $ ! " ! - /⌦ ⌦ $ +⌫ ($ ⌫ ($ # $ #⌫ ⌫ ( ! ⌫

⌫ ⌫

⌫

ROBINSON

5 12

34,098,064

35,592,147

113,300,000 -

2,836,377,149 3,329,660,636 2,847,698,849 3,342,484,136

42,256,952 51,300,811 368,226,119 493,081,865 192,452,947 273,601,864 25,794,611 16,799,200 7,320,350 3,264,495,943 3,875,133,848 3,203,029,098 3,780,686,811 5,516,215,476 6,232,237,043 5,571,008,217 6,217,375,053

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS (Continued) DECEMBER 31, 2003 AND 2002

LIABILITIES AND SHAREHOLDERS' EQUITY In Baht

(Continued) Consolidated 2003 Note

The Company Only

2002

2003

(Restated)

2002 (Restated)

NON-CURRENT LIABILITIES Long-term loan from subsidiary

113,300,000

Liabilities under debt restructuring agreements of subsidiaries

34,098,064

35,592,147

Partially secured amortizing notes (convertible upon default) - net of current portion

2,836,377,149 3,329,660,636 2,847,698,849 3,342,484,136

Total Non-Current Liabilities

42,256,952 51,300,811 368,226,119 493,081,865 192,452,947 273,601,864 25,794,611 16,799,200 7,320,350 3,264,495,943 3,875,133,848 3,203,029,098 3,780,686,811

Total Liabilities

5,516,215,476 6,232,237,043 5,571,008,217 6,217,375,053

Provision for loss from investments in subsidiary companies recorded by the equity method Deferred lease income Other non-current liabilities

The accompanying notes are an integral part of these financial statements.

ROBINSON

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

Financial Statements * . # ( ) &'$

0 â&#x152;Ť 12 2 3456 &'$ 3454

â&#x152;Ť " #$ %&' $( ) $*

#$ %& '($

* ( , * B * # )( â&#x152;Ť * $ 1 ,D,,ED ,D,++ * / ( ,,D,E D ,,D++E - /â&#x152;Ť ' ) ) . * ) ,E B * â&#x152;Ť ' )( â&#x152;Ť 2/ )'

* $ 1 ,D,,ED ,D,++ * * ) ,E $ ( ) . * $ # ) . * $ ( * 2â&#x152;Ť . 7$ $ ( * (/ â&#x152;Ť '/ ) . ( * - 7 (3, + + % $/ 2 F

/0 1+ # * 3 $)$ $ + 3)8 , * % - 1 $ + 3)8 , * $

$ + 3)8 , * â&#x152;Ť $ ' )$ + 3) 8, * 100

ROBINSON

13 13 10

11,106,611,330 11,106,611,330 11,106,611,330 11,106,611,330 631,152,923 631,152,923 631,152,923 631,152,923 (11,550,831,352) (11,550,831,352) (11,550,831,352)(11,550,831,352) 1,224,015,784 1,300,143,838 1,224,015,784 1,300,143,838

121,642 96,215,000 364,072,082

73,141 96,215,000 (227,254,728)

121,642 73,141 96,215,000 96,215,000 364,072,082 (227,254,728)

1,871,357,409 1,356,110,152 1,871,357,409 1,356,110,152 185,756,272 190,131,588 2,057,113,681 1,546,241,740 1,871,357,409 1,356,110,152 7,573,329,157 7,778,478,783

â&#x152;Ś â&#x152;Ť

7,442,365,626 7,573,485,205

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

BALANCE SHEETS (Continued) DECEMBER 31, 2003 AND 2002

LIABILITIES AND SHAREHOLDERS' EQUITY In Baht

(Continued) Consolidated 2003 Note

2002 (Restated)

The Company Only 2003

2002 (Restated)

SHAREHOLDERS' EQUITY Share capital - common shares, - Authorized share capital, common share 1,110,661,133 shares (Baht 11,106,611,330) in 2003 and 2002 at Baht 10 par value - Issued and paid-up share capital, common shares 1,110,661,133 shares, Baht 10 per share

Premium on share capital Discount on share capital Revaluation increment in assets

13 10

Revaluation increment from changes in available - for - sale investment value of associated company Legal reserve Retained earnings (deficit)

121,642 96,215,000 364,072,082

73,141 96,215,000 (227,254,728)

121,642 73,141 96,215,000 96,215,000 364,072,082 (227,254,728)

Shareholders' Equity of the Parent Company Minority interests Total Shareholders' Equity

1,871,357,409 1,356,110,152 1,871,357,409 1,356,110,152 185,756,272 190,131,588 2,057,113,681 1,546,241,740 1,871,357,409 1,356,110,152

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

7,573,329,157 7,778,478,783

7,442,365,626 7,573,485,205

The accompanying notes are an integral part of these financial statements.

ROBINSON

101

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

Financial Statements

â&#x152;Ť " # â&#x152;Ť $% & # '()* '()(

" +

, - , . . â&#x152;Ť , / â&#x152;Ť + , 0 # , . " # &â&#x152;Ť # , . â&#x152;Ť

.1 -

5 5 5

17, 5

!" #

102

ROBINSON

64,053,434 383,256,536 298,915,436

386,566,290

64,053,434 307,281,081

32,262,041 73,401,781 8,817,406,792 8,680,060,426 5,844,626,822 5,841,382,353 5

" - + + - # - " . " # &â&#x152;Ť # , . â&#x152;Ť .1 - !" # $ $ â&#x152;Ť # &' ( â&#x152;Ť

7,764,672,228 7,615,279,052 4,641,503,008 4,626,914,198 633,273,180 623,770,214 385,205,916 377,336,495 3,942,807 4,640,509 431,351,608 465,797,145

6,053,406,122 6,036,038,343 3,613,449,208 3,651,487,072 2,183,316,150 2,104,751,159 1,586,739,462 1,544,701,087 122,335,616 156,364,657 8,236,722,272 8,140,789,502 5,322,524,286 5,352,552,816 580,684,520 539,270,924

522,102,536 488,829,537

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF INCOME FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003 Note

2002

The Company Only 2003

(Restated)

2002 (Restated)

REVENUES Sales

5 5 5

Rental and service income Interest income

7,764,672,228 7,615,279,052 4,641,503,008 4,626,914,198 633,273,180 623,770,214 385,205,916 377,336,495 3,942,807 4,640,509 431,351,608 465,797,145

Income from reversal of accrued expenses Other income

17, 5

64,053,434 383,256,536 298,915,436

386,566,290

64,053,434 307,281,081

Share of profit from investments recording by the equity method before extraordinary item of subsidiaries

32,262,041 73,401,781 8,817,406,792 8,680,060,426 5,844,626,822 5,841,382,353

Total Revenues

EXPENSES Cost of sales Selling and administrative expenses

5 6,053,406,122 6,036,038,343 3,613,449,208 3,651,487,072 2,183,316,150 2,104,751,159 1,586,739,462 1,544,701,087

Share of loss from investments recording by the equity method before extraordinary item of subsidiaries Total Expenses

122,335,616 156,364,657 8,236,722,272 8,140,789,502 5,322,524,286 5,352,552,816

Profit Before Interest Expense and Income Tax

580,684,520 539,270,924

522,102,536 488,829,537

ROBINSON

103

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

Financial Statements

â&#x152;Ť â&#x152;Ť !

$ â&#x152;Ť #

(7,888,164)

(22,640,781)

(27,988,836)

(26,110,508)

' ( â&#x152;Ť

544,807,520

490,519,635

) * ) â&#x152;Ť +, $ -. /0$ ) $

(29,608,764)

(27,888,838)

# # +

515,198,756

462,630,797

( â&#x152;Ť

1 2 2 , â&#x152;Ť - 2 , â&#x152;Ť -

13 12

) * $ 0 3 , .1 - .1 - ) * ROBINSON

(6,903,780) -

" + (26,198,740) -

515,198,756

462,630,797

515,198,756

462,630,797

14,747,769,382

46,524,902

515,198,756 15,256,925,081

13 12

0.46 0.46

â&#x152;Ś â&#x152;Ť

104

" +

1.43 45.61 0.14 47.18

515,198,756 15,256,925,081

0.46 0.46

1.43 45.61 0.14 47.18

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF INCOME (Continued) FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003 Note Interest Expense

2002

(22,640,781)

(27,988,836)

(26,110,508)

PROFIT AFTER TAX

544,807,520

490,519,635

Net Profit of Minority Interests

(29,608,764)

(27,888,838)

515,198,756

462,630,797

2003

(Restated)

(7,888,164)

Income Tax

The Company Only 2002 (Restated)

(6,903,780) -

(26,198,740) -

515,198,756 -

462,630,797 -

PROFIT FROM ORDINARY ACTIVITIES

515,198,756

462,630,797

Extraordinary Items: - Gain on debts restructuring of the Company

14,747,769,382

46,524,902

- Gain on debts restructuring of subsidiaries

NET PROFIT

515,198,756 15,256,925,081

Basic Earnings per Share Profit from ordinary activities Extraordinary item of the Company Extraordinary item of subsidiaries Net profit

13 12

0.46 0.46

1.43 45.61 0.14 47.18

0.46 0.46

1.43 45.61 0.14 47.18

The accompanying notes are an integral part of these financial statements.

ROBINSON

105

106

ROBINSON

ß∫°“√‡ß‘π

Financial Statements

!"# $%&$

5 ⌫ 6

!'%"#(⌫ * + ⌫% , + - !"#

⌫

! " "# $ %"! #

& "' "' (⌫ "# $ ) * " + , ( - . ! / ) * "

⌫ ⌫ ⌦

" # $%⌫ &'(' % )

1,480,881,510 631,152,923 1,376,284,820 (11,550,831,352) 13,327,933,590 ( 3,702,203,770) (76,140,982) -

(18,843,218) 241,682 -

96,215,000 (19,262,524,561) 197,669,062 (15,499,164,464) 1,777,102,238 3,702,203,770 76,140,982 241,682 15,178,066,052 27,888,838 15,205,954,890 ( 35,426,312) (35,426,312)

⌫ ⌫ % $% % $% ⌫ ⌦

" # $%⌫ &'(* % ) ⌫

11,106,611,330 11,106,611,330 11,106,611,330

631,152,923 (11,550,831,352) 1,300,143,838 631,152,923 (11,550,831,352) 1,300,143,838 (76,128,054) 631,152,923 (11,550,831,352) 1,224,015,784

(18,601,536) 18,674,677 73,141 48,501 121,642

96,215,000 96,215,000 96,215,000

(306,113,757) 78,859,029 ( 227,254,728) 76,128,054 515,198,756 364,072,082

190,131,588 1,448,708,034 97,533,706 190,131,588 1,546,241,740 48,501 29,608,764 544,807,520 ( 33,984,080) (33,984,080) 185,756,272 2,057,113,681

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002 In Baht Consolidated Revaluation Increment (Reduction)

Share Capital - Issued and Fully Paid

Balance as at January 1, 2002 Increase in share capital Decrease in share capital

1,480,881,510 13,327,933,590 ( 3,702,203,770)

Premium on Share Capital

Discount on Share Capital

in Assets

631,152,923 1,376,284,820 (11,550,831,352) -

from Changes in Availablefor-Sale Investment Retained Earnings Minority Value of Associated Appropriated for Retained earnings Interests Company-Net Legal Reserve (Deficit) in Subsidiaries

(18,843,218) -

Total

96,215,000 (19,262,524,561) 197,669,062 (15,499,164,464) 1,777,102,238 3,702,203,770 -

Depreciation and amortization transferred from revaluation increment in assets

(76,140,982)

241,682 -

76,140,982

Decrease (Increase) in revaluation reduction Net profit for the year 2002 Dividends

241,682 15,178,066,052 27,888,838 15,205,954,890 ( 35,426,312) (35,426,312)

Balance as at December 31, 2002 As previously reported Adjustment Balance as adjusted

11,106,611,330 11,106,611,330

631,152,923 (11,550,831,352) 1,300,143,838 631,152,923 (11,550,831,352) 1,300,143,838

(18,601,536) 18,674,677 73,141

96,215,000 96,215,000

(306,113,757) 190,131,588 78,859,029 ( 227,254,728) 190,131,588

1,448,708,034 97,533,706 1,546,241,740

Depreciation and amortization transferred from revaluation increment in assets

(76,128,054)

76,128,054

Decrease (Increase) in revaluation reduction Net profit for the year 2003

ROBINSON

Dividends Balance as at December 31, 2003

11,106,611,330

631,152,923 (11,550,831,352)

The accompanying notes are an integral part of these financial statements.

1,224,015,784

48,501 121,642

96,215,000

515,198,756 29,608,764 ( 33,984,080) 364,072,082 185,756,272

48,501 544,807,520 (33,984,080) 2,057,113,681

107

108

ROBINSON

ß∫°“√‡ß‘π

Financial Statements

!"# $%&$

5 ⌫ 6 '%& !'%"#(⌫ * + ⌫% , + - !"#

⌫

! " # $

% & & '⌫ ! # ( ) * + ' , -# .

⌫ ⌫ ⌦

!⌫

1,480,881,510 631,152,923 1,376,284,820 (11,550,831,352) 13,327,933,590 ( 3,702,203,770) ( 76,140,982) -

(18,843,218) 241,682 -

96,215,000 (19,262,524,561) (15,696,833,526) 1,777,102,238 3,702,203,770 76,140,982 241,682 15,178,066,052 15,178,066,052

⌫ " # ⌫ $ " #" " #" ⌫ ⌦

$ % #"⌫ &'() ⌫ " %

11,106,611,330 11,106,611,330 11,106,611,330

631,152,923 (11,550,831,352) 1,300,143,838 631,152,923 (11,550,831,352) 1,300,143,838 (76,128,054) 631,152,923 (11,550,831,352) 1,224,015,784

(18,601,536) 18,674,677 73,141 48,501 121,642

96,215,000 96,215,000 96,215,000

(306,113,757) 78,859,029 ( 227,254,728) 76,128,054 515,198,756 364,072,082

1,258,576,446 97,533,706 1,356,110,152 48,501 515,198,756 1,871,357,409

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Continued) FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated Revaluation Increment (Reduction)

Share Capital - Issued and Fully Paid

Balance as at January 1, 2002 Increase in share capital Decrease in share capital

1,480,881,510 13,327,933,590 ( 3,702,203,770)

Premium on Share Capital

Discount on Share Capital

in Assets

631,152,923 1,376,284,820 (11,550,831,352) -

from Changes in Availablefor-Sale Investment Retained Earnings Value of Associated Appropriated for Retained earnings Company-Net Legal Reserve (Deficit)

(18,843,218) -

Total

96,215,000 (19,262,524,561) (15,696,833,526) 1,777,102,238 3,702,203,770 -

Depreciation and amortization transferred from revaluation increment in assets

( 76,140,982)

76,140,982

15,178,066,052

241,682 15,178,066,052

(306,113,757) 78,859,029 ( 227,254,728)

1,258,576,446 97,533,706 1,356,110,152

Decrease (Increase) in revaluation reduction Net profit for the year 2002

241,682 -

Balance as at December 31, 2002 As previously reported Adjustment Balance as adjusted

11,106,611,330 11,106,611,330

631,152,923 (11,550,831,352) 1,300,143,838 631,152,923 (11,550,831,352) 1,300,143,838

(18,601,536) 18,674,677 73,141

96,215,000 96,215,000

Depreciation and amortization transferred from revaluation increment in assets

(76,128,054)

76,128,054

Decrease (Increase) in revaluation reduction Net profit for the year 2003 Balance as at December 31, 2003

11,106,611,330

631,152,923 (11,550,831,352) 1,224,015,784

ROBINSON

The accompanying notes are an integral part of these financial statements.

48,501 121,642

96,215,000

515,198,756 364,072,082

48,501 515,198,756 1,871,357,409

109

ß∫°“√‡ß‘π

Financial Statements

&) )

⌫ " # ⌫ $% & # '()* '()(

&) ) # # , " & + ) * +, ) 4# 5 # # # - 345 0 " # + 3 , " & - # - " , . " # &⌫ # , . ⌫ .1 - , ⌫ " 67 . 0 / ⌫ .30 4/ . ⌫ , . / ⌫ , / ⌫ + , / ⌫ ⌫ " .#⌫ 0 .30 ⌫ 4/ .30 8 ⌫ 6 ⌫ , ⌫ - , ⌫ - - " 8 ⌫ 6 ⌫

110

ROBINSON

" +

515,198,756 15,256,925,081 515,198,756 15,256,925,081

29,608,953

27,888,838

(32,262,041) (73,401,781) 122,335,617

156,364,657

(911,280) (1,227,916) (622,366) (1,841,360) 517,465,833 533,583,940 368,599,405 381,616,078 27,110,724 14,084,255 17,704,893 8,769,061 (114,792,596) (114,067,573) (72,275,766) (72,708,179) (64,053,434) (64,053,434) (6,979,955) (6,979,955) (435,988) (1,321,298) (41,654,754) (41,650,046) (14,747,769,382) (14,747,769,382) (46,524,902) (46,524,902) 1,044,183 693,601 -

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003

2002

The Company Only 2003

(Restated)

2002 (Restated)

CASH FLOWS FROM OPERATING ACTIVITIES: Net profit

515,198,756 15,256,925,081 515,198,756 15,256,925,081

Adjustments to reconcile net profit (loss) to net cash provided by operating activities: Net profit of minority interests

29,608,953

27,888,838

Share of loss (from) investments recording by the equity method before extraordinary item of subsidiaries Gain on sales of property and equipment Depreciation and amortization Provision for shortage and damage inventory Realized deferred lease income Income from reversal of accrued expenses Income from reversal of other current liabilities Reversal of provision for doubtful accounts Reversal of allowance for withholding income tax Gain on debts restructuring of Company Gain on debts restructuring of subsidiaries Loss on write-off withholding tax

(32,262,041) (73,401,781) (911,280) (1,227,916) 517,465,833 533,583,940 27,110,724 14,084,255 (114,792,596) (114,067,573) (64,053,434) (6,979,955) (435,988) (41,654,754) (14,747,769,382) (46,524,902) 1,044,183 693,601

122,335,617 156,364,657 (622,366) (1,841,360) 368,599,405 381,616,078 17,704,893 8,769,061 (72,275,766) (72,708,179) (64,053,434) (6,979,955) (1,321,298) (41,650,046) (14,747,769,382) (46,524,902) -

ROBINSON

111

ß∫°“√‡ß‘π

Financial Statements " + ' ! # ( % "

&) ) # %

' &⌫ ! ⌫ ,- . /012 /010

ROBINSON

" +

) 6 ' ' 4 ⌦ 5 2 ⌫ 9 ⌫ ⌫

(7,305,448) 15,169,022 (8,876,496) (1,332,283) (64,025,520) (167,043,410) (50,743,945) (69,037,791) (18,839,635) 35,317,306 (7,753,305) (6,233,726) 60,573,007 (72,473,740) 53,116,288 (26,574,608)

⌫) ⌦ 4' ' 52 ⌫ 9 ⌫ ⌫ ⌫ ⌫ ) ) * # #

(81,062,462) 146,382,074 (44,668,611) 26,350,973 (22,528,951) (38,420,306) (28,384,929) (37,171,854) (1,067,740) (400,000) (1,552,801) 759,571,074 704,225,685 813,446,739 755,457,033

&) ) # # ' ! " ! # $⌦ % ; & ' ⌫ $⌫ ' ! ( $⌦ ⌫ ⌫ $ ! < ⌫! & ) * $⌦ ! $ ⌫! & ) ) ) * !" +! # '

112

1,567,669 (718,677,954) 179,507,994 (10,000,000)

(10,000,000)

18,875,009 (218,834,075) (257,137,357) (126,622,978) (210,209,663) (999,930) 1,617,478 10,063,509 1,184,443 9,461,163 (217,216,597) (255,506,179) (845,116,419) (12,365,497)

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS (Continued) FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003

2002

The Company Only 2003

(Restated)

2002 (Restated)

Decrease (increase) in Operating Assets Trade accounts receivable

(7,305,448) 15,169,022 (8,876,496) (1,332,283) (64,025,520) (167,043,410) (50,743,945) (69,037,791) (18,839,635) 35,317,306 (7,753,305) (6,233,726) 60,573,007 (72,473,740) 53,116,288 (26,574,608)

Inventories Other current assets Other non-current assets

Increase (decrease) in Operating Liabilities Trade accounts payable Other current liabilities Other non-current liabilities Net Cash Provided by Operating Activities

(81,062,462) 146,382,074 (44,668,611) 26,350,973 (22,528,951) (38,420,306) (28,384,929) (37,171,854) (1,067,740) (400,000) (1,552,801) 759,571,074 704,225,685 813,446,739 755,457,033

CASH FLOWS FROM INVESTING ACTIVITIES: Decrease (Increase) in short-term loans and advances to subsidiaries

1,567,669 (718,677,954) 179,507,994

Increase in restricted investments in fixed deposit

(10,000,000)

Decrease in long-term loans to related companies

18,875,009 (218,834,075) (257,137,357) (126,622,978) (210,209,663) Purchase of property and equipment (999,930) Increase in investments in shares 10,063,509 1,184,443 9,461,163 Proceeds from sales of property and equipment 1,617,478 (217,216,597) (255,506,179) (845,116,419) (12,365,497) Net Cash Used in Investing Activities

ROBINSON

113

ß∫°“√‡ß‘π

Financial Statements " + ' ! # ( % "

&) ) # %

' &⌫ ! ⌫ ,- . /012 /010

114

ROBINSON

10,842,472

" +

&) ) # # # ! ⌫ ⌫ $ $⌦ ⌫ 3 ** '& $ " $⌦ (' ⌫ & ( ! (' ⌫ ** & + ⌫$ " & 4 ) ) * !" +! # #

(1,494,083) (9,813,350) (33,984,269) (35,426,312) (523,574,133) (923,049,585) (483,460,915) (849,068,584)

) &' ⌫ ) ⌦ 4' ' 5 8 ) *

18,780,344 (474,330,079) (515,130,595) (105,977,048)

4,705,806 -

18,875,009

47,616,348 -

(492,801,587) (896,684,932) (494,303,387) (896,684,932)

) &' ⌫ )

9 +⌫

1,346,433,315 1,820,763,394

872,208,993

978,186,041

) &' ⌫ )

9 ) +⌫

1,365,213,659 1,346,433,315

357,078,398

872,208,993

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS (Continued) FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003

2002

The Company Only 2003

(Restated)

2002 (Restated)

CASH FLOWS FROM FINANCING ACTIVITIES: Increase in short-term loans and advances from related parties

4,705,806

10,842,472

47,616,348

Increase in liability under guarantee agreement of subsidiary Repayment of partially secured amortizing notes

18,875,009 (492,801,587) (896,684,932) (494,303,387) (896,684,932)

Repayment of liability under debt restructuring agreements of subsidiaries Payment of dividends Net Cash Used in Financing Activities

(1,494,083) (9,813,350) (33,984,269) (35,426,312) (523,574,133) (923,049,585) (483,460,915) (849,068,584)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

18,780,344 (474,330,079) (515,130,595) (105,977,048)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

1,346,433,315 1,820,763,394

872,208,993

978,186,041

1,365,213,659 1,346,433,315

357,078,398

872,208,993

CASH AND CASH EQUIVALENTS AT END OF YEAR

ROBINSON

115

ß∫°“√‡ß‘π

Financial Statements " + ' ! # ( % "

# %

' &⌫ ! ⌫ ,- . /012 /010

" +

-= ! ⌫ ! ) &⌫& ! ! ; 5 ; & ' ! ⌫ ! /= ! &⌫ ' ! ⌫ 3 "⌫ !

1,364,103,447 1,345,328,583 1,110,212 1,104,732 1,365,213,659 1,346,433,315

7,813,968 61,050,374

2,197,632 58,550,687

355,968,186 871,104,261 1,110,212 1,104,732 57,078,398 872,208,993

24,526,416

24,604,750

$6 ⌫ , + . $6% + ⌫ '()( , ⌫, ⌫ # 6 %>??? . @ " / AAA " , " / # 6 ))) " 7⌦ , + . ⌫ . ⌫, ⌫ ⌫ . 0 ,- ⌫ , . . ⌫ " - %)>ABA6A . @ %%>%B*6* ⌫# 5" 7. 0 - " - ⌫ ,# + 3 C0 C4

116

ROBINSON

⌦ ⌫

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS (Continued) FOR EACH OF THE YEARS ENDED DECEMBER 31, 2003 AND 2002

In Baht Consolidated 2003

2002

The Company Only 2003

2002

(Restated)

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION 1. Cash and Cash Equivalents at end of Year Consisted of : Cash and deposits at financial institutions Short - term investments in fixed deposits Total Cash and Cash Equivalents

1,364,103,447 1,345,328,583 1,110,212 1,104,732 1,365,213,659 1,346,433,315

355,968,186 871,104,261 1,110,212 1,104,732 57,078,398 872,208,993

2. Cash paid during the year: Interest expense Income tax

7,813,968 61,050,374

2,197,632 58,550,687

24,526,416

24,604,750

Non-cash transactions

3.1 In 2002, the Company converted unsecured debt of approximately Baht 1,777 million into approximately 888 million ordinary shares and issued approximately 444 million ordinary shares, which would be conditionally assigned to the unsecured financial creditors. In addition, the Company proceeded with the registration of a decrease in the Company's capital from Baht 14,808.8 million to Baht 11,106.6 million.

The purpose of

the capital reduction is to reduce the Company's deficit as stipulated in the rehabilitation plan.

The accompanying notes are an integral part of these financial statements.

ROBINSON

117

ß∫°“√‡ß‘π

# ⌫ $% & # '()* '()(

Financial Statements

;< :

" + ' ! # ( % ! ⌫ &9 " ( ' ! & : ! ⌫ ! & : " D " !' . ⌫ 3 ( E+ E +! ⌫ ' * ⌫ $ ⌫ / 5 ⌫ $ : $ & : " ! . . # " % & . 3 3 +! 4 5 $ " <⌫ #& : % ' !

: ⌫ ! ' &9 &9 3 " *(⌫ ⌫ &$ & : ⌫ ⌫ ⌫ 5 & ⌫ ! '$⌦ ! F 4 !' !

*(⌫ ⌫ &$ & : ⌫ ! '$⌦ +! ( .⌫ ⌫ ! & & . ( & ) . ( ! & ! $ 4 " ! ! ' G 3 " H"$⌦ G 3 " ⌫ <⌦ ! ' 5 & $ ( & : ⌫ ! *(⌫$ " + ' ! # ( % " <⌦ " ⌫ ' 5 $ ⌫ ⌫ . ⌫ " ! ! & ⌫ ! " # $

⌫ & '()* '()(

" + ⌫ ' ! " + (!' ' ! " + (! ' ! " + ' ! " + $ ' !

118

ROBINSON

! !' ) ( ! !' ) ( ! !' ) ( ! !' ) ( ! !' ) (

& : & : & : & : & :

II=III=,0 II=;< II=;2 II=II

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS DECEMBER 31, 2003 AND 2002

1. GENERAL AND BASIS OF FINANCIAL STATEMENT PREPARATION AND PRINCIPLES OF CONSOLIDATION

Robinson Department Store Public Company Limited is incorporated as a limited public company in Thailand and registered on the Stock Exchange of Thailand. The Company and its subsidiaries own and operate a department store chains under the brand of "Robinson". The registered head office address of the Company is located at 2 Silom Road, Suriyawong, Bangrak, Bangkok, Thailand. The Company has also jointly invested with groups of business partners (Indirectly subsidiaries) outside Bangkok through a holding company, CR (Thailand) Co., Ltd. engaging in department stores.

Basis for Financial Statement Preparation

The statutory financial statements are prepared in Thai Baht and in the Thai Language in conformity with generally accepted accounting principles in Thailand. Accordingly, the accompanying financial statements are intended solely to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in Thailand. The accompanying financial statements have been prepared under historical cost convention, except land, leasehold improvement, building system equipment and leasehold right which are presented at appraised value.

For the convenience of the readers, an English translation of financial statements has been prepared from the Thai language financial statements that are issued for domestic reporting purposes.

The accompanying consolidated financial statements included the financial statements of Robinson Department Store Public Company Limited and its subsidiaries, in which the Company has control or invested over 50% of their voting rights. These subsidiaries are detailed as follows: Country of Business Type

Registration

Robinson Anusawaree Co., Ltd.

Dormant Company

Robinson Rajdamri Co., Ltd.

Percentage of Holdings (%) 2003

2002

Thailand

99.91

Dormant Company

Thailand

99.35

Robinson Ratchada Co., Ltd.

Dormant Company

Thailand

99.80

Robinson Nakarin Co., Ltd.

Dormant Company

Thailand

99.86

Robinson Sukhumvit Co., Ltd.

Dormant Company

Thailand

99.99

Direct Subsidiaries

ROBINSON

119

ß∫°“√‡ß‘π

⌫

Financial Statements

$ /0$ 4 $ ' 5 + ( * # # ⌫ ! !"# $ & / & ( !"# $ & / # !"# $ 3⌫ 4 * & +% ) !"# $ J5KLMNOPQ R STU 4$⌫ V !"# $ 7 & - ⌫- ⌫- !"# $

3⌫ 4 1$ ⌫ * & +% ) !"# $ 3⌫ 4 89&#: * & +% ) !"# $ 3⌫ 4 + ⌫ ( * & +% ) !"# $ 3⌫ 4 $ ; * & +% ) !"# $ 3⌫ 4 &(⌫)0 * & +% ) !"# $ 3⌫ 4 1 ( ⌫ * & +% ) !"# $ 3⌫ 4 ! 1 ⌫ * & +% ) !"# $ 3⌫ 4 ( 1 ⌫ * & +% ) !"# $

%$$"& ' ()# ! 0 1 %$$"& ' ()# ! 0 1 0 1 V 0 )4 0 1

* & +% ) * & +% ) * & +% ) * & +% ) * & + & &3⌫) * & +% ) * & +% )

, - . 22-22 22-22 22-22 22-2 22-26 22-22

, - . 22-22 22-22 22-22 22-2 22-26 5

0 0 0 0 0 0 0 0

* & +% ) * & +% ) * & +% ) * & +% ) * & +% ) * & +% ) * & +% ) * & +% )

, -.. 2-22 2-22 , -.. 62-22 , -22 -22 2-22

) )$ 0# < 0 ! $ 0<⌦ * & +% ) )#& J 5 KLMNOPQ R STU- 3⌦0 &*: ⌫! $ 0<⌦ * & + & &3⌫) ) ) 0* & +$ 0# &*: ⌫) 0 $"& ' ()# ! )4 ; < 0 ) ) $ 0# &*: 9# ⌫ &0 #9 )/ 1 #9 $ #& ⌫ ) 0 ! # ) ) * & + & &3⌫)$ 0# ⌫ #1 &0 0# ⌦ 0&*: &0 )# ;(⌫ 0 ) ) ⌫ ⌫ ) " ;%$>9# $ ;(⌫ #! #0 # &0 ⌫ 0 # &0 &? %$ $0 ;(⌫&? 0 7 !"# $ ( 7$) %$ ⌦# &0 0 1 ) ) 0 1 &# # ) . < 0 1 !$ & ⌫) 7$) ⌫ %$& ⌫) 0 #"% ! #&0 0 1 ) ) " '! #0 # &0 3⌦0 ! 7$)@9 ;(⌫ 0#"% ! # &0 0 1 0 0 " *⌫ 1 $ ⌫ " '! # 0 # &0 " *⌫ 1 $ ⌫ < 0 & ⌫ 3⌦0 ) 0% %$ ! 7$)@9 ;(⌫ &0 0 1 $ 0# ' 120

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Country of Business Type

Percentage of Holdings (%)

Registration

2003

2002

Sapanmai Department Store Co., Ltd.

Dormant Company

Thailand

74.50

Kruerpetch Co., Ltd.

Investing Company

Thailand

99.99

Kruerkaew Co., Ltd.

Dormant Company

Thailand

99.99

CR (Thailand) Co., Ltd.

Investing Company

Thailand

99.99

R-Trading (L) BHD.

Investing Company

Malaysia

99.92

RD Pattana Co., Ltd.

Real Estate

Thailand

99.98

Robinson S.P.V. Co., Ltd.

Investing Company

Thailand

99.99

CR Udorn Thani (Thailand) Co., Ltd.

Department Store

Thailand

76.00

CR Phuket (Thailand) Co., Ltd.

Department Store

Thailand

49.99

CR Nakhon Sri Thammarat (Thailand) Co., Ltd. Department Store

Thailand

49.99

CR Had Yai (Thailand) Co., Ltd.

Department Store

Thailand

76.00

CR Chiang Mai (Thailand) Co., Ltd.

Department Store

Thailand

89.99

CR Ubon Ratchathani (Thailand) Co., Ltd. Department Store

Thailand

74.99

CR Chantaburi (Thailand) Co., Ltd.

Department Store

Thailand

64.99

CR Rajchaburi (Thailand) Co., Ltd.

Department Store

Thailand

49.99

Indirect Subsidiaries

All of the above subsidiaries are incorporated in Thailand, except for R-Trading (L) BHD., which is incorporated in Malaysia. The foreign subsidiary is an active company and its major assets are receivable, loan to, bond and interest receivable from the Company. The functional currency of a portion of transactions of this Malaysian subsidiary is Baht.

The significant intercompany transactions between the Company and its subsidiaries have been eliminated in the consolidated interim financial statements.

The Company's financial statements represent the accounts of Robinson Department Store Public Company Limited. The Company has recorded investments in subsidiaries and associated companies (those with more than 20% of registered capital owned by the Company) by the equity method. The share of profit from investments in subsidiaries is computed based on the audited financial statements. The share of profit from investments in certain associated companies for the year ended December 31, 2003, which were computed from the financial statements of those

ROBINSON

121

ß∫°“√‡ß‘π

Financial Statements

⌫

⌫ ⌫!" * ' - ) - < 0 )4 " # &0 ) - < 0 )4 " 0 # &0 &? 0#"% ! #&0 0 1 $ 0# " *⌫ 1 $ ⌫ ⌫!" * ' - ) - , < 0#"% 1

< ) )%$ @ # 0 1 # ! $⌫ &*: & 1 ⌫ !"&*: 0* 7 0 0 ⌫ A/ A9#! # )& 1 0 ⌫ * "& :! # $"& # &0/ %< " ; ⌫ 1% @ A/ A9#! # ' ⌫ ⌫ #9 ⌫&0 #9)/ 1 ! # " 0&@/ @ < $ 1 ! #&0 0 1 ) )3⌦0 ⌦#7$) ⌫ %$& ⌫) ) ) 0 ⌦0 &*: &0 * ' B, ,- B -2 "$ " 0 # &0 &? ) )$ 0# &*: 0 1 < 0# 1 0 # &0 ⌫%$ @ # C 0# &0 < 0 ) )! >⌦0* !!1 ⌫@ 9 %$* & @ < 0 > # '4 0 1 # !% 0 ⌫ @ ⌫& # $<⌦ ! 0 8 ) 0 ! # 0! ## * & > # '4 * !!1 < 0@9 ) 0&*: " ;

=< 0 # &0 < 0 " *⌫ 1 $ ⌫ &$ %$ 0#"% ! #&0 0 1 * & + 0 03⌦ 0 " '! #0 # &0 " *⌫ 1$ ⌫ < 0 & ⌫) 0 %$ ! 7$)@9 ;(⌫ 0 # &0 " *⌫ 1 $ ⌫ < 0 $ 0# %$ # ! 0#"% ! #&0 0 1 $ 0# 3⌦0 >/ 0 # &0 ⌫ ! # 0! #) $3⌦0 %$ ! 3⌦0 %$& ) ⌦#% $ 0 %$* * 10 )# $ 0# ) 0# 0 # &0 " *⌫ 1 $ ⌫ ⌫% $ $0&* ⌫) & ⌫) % ⌫ &*: @ )4 & <⌦ < $ 1 $ 0 0 # &0 0 # &0 &? ' ⌫ # &*: &0 * ' 2,- ,6-6 "$

122

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

companies for the year ended December 31, 2003 which were not audited by auditors. The investments in the associated companies as at December 31, 2003 amounted to approximately Baht 344.3 million (4.55% of total assets for the consolidated financial statements and 4.63% of total assets for the Company's financial statements). The share of profit from investments in the associated companies for the year ended December 31, 2003, amounted to approximately Baht 32.3 million (6.27% of net profit).

2. THE BUSINESS OPERATIONS OF THE COMPANY AND ITS SUBSIDIARIES

The Company and subsidiaries have been effected by business in the past. This caused the Company entered into the debt restructuring process and rehabilitation plan problems (Note 13). The Company successfully complied with conditions outlined in the rehabilitation plan. As at December 31, 2003 and 2002, the Company had outstanding loan receivable net of provision for loss from investments in subsidiary companies recorded by the equity method of approximately Baht 1,717.3 million and Baht 1,124.9 million, respectively, for the Company's financial statements. This subsidiary is a holding company in the group and is carrying significant deficit as at December 31, 2003 and 2002. The accompanying financial statements reflect management's current assessments of the impact to date of the business situation on the financial position of the Company and subsidiaries. Actual results could differ from management's current assessments and such differences could be material.

3. ADJUSTMENTS

The previously - reported financial statements of the Company for the year ended December 31, 2002 included the share of profit from investments in certain local associated companies which were computed from the financial statements of those companies for the year ended December 31, 2002 not audited by auditors. Subsequently, the financial statements for the year ended December 31, 2002 of those associated companies had already been audited and found that the amount of the share of profit from investments in the associated companies as reflected in the audited financial statements was different from those unaudited balances previously recorded. Accordingly, the Company had retroactively adjusted to the financial statements for the year ended December 31, 2002 as presented herein for comparative purposes. As a result, total assets increased and deficit decreased in the consolidated financial statements and the Company's financial statements as at January 1, 2003 by approximately Baht 97.5 million and Baht 78.8 million, respectively.

ROBINSON

123

ß∫°“√‡ß‘π

Financial Statements

⌫

&< > ? ⌫ ⌫ ! ?

⌫ &0 $ )# & ⌫) & &0 $ )>⌦0 &0 $ / &0 D # > # &0 1#* &8 &0 0 1 ) 3⌦0 ⌫ )1>0⌦ #" $8 ) &$/ / )# &0 D # > # &0 ⌫ <⌫ !"# $ # ( $0% ;(⌫ E&0 0 1 &0 D #* !" ⌫ <⌫ !"# $ # (E 8 ) )4% 1 & ⌫) / 0 $1

" # ) ) 9 )%$! ## < ) & / ) )%$7 & ⌫ )0 @ ⌫& *: " ;< 0 &*: &! < 0 # @93/ )%$ &( & ⌫) # 9&*: )%$7$) ⌫& 0 ) & ⌫ #" $ ;; $# &0 ($&()! #@9< ) ⌦# &#'W4 $ #& ⌫) 9 &#'W4 $ < 0& 7$) " ⌦0>⌦0 @ ⌫ ! 0< 0 )4

! $% ⌫ ?" ) ) 0 &@/ ⌫ 0 )! 9;& # !" ⌫ ⌫ $ ! & ⌫)#&#: &0 ! # 9# ⌫ % %$ 7$) ! ' ! #* # '4 # &#: ⌫ # ! ' C # &0 * !!1 < 0 9# ⌫

! ! % ) )%$ $0 )# ⌫3 7$) ⌫ / &0/ %<&*: ) $ 1 # &! ⌫# ⌫& #⌫) < 0# # 3/

124

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

Cash and cash equivalents include cash held on hand, all cash deposited with financial institutions and short-term investments with the maturities of three months or less.

Cash at financial institutions that are restricted in use are presented as "Restricted investment in fixed deposit" under other non-current assets in the balance sheets.

Revenue Recognition

Revenues from sales of goods is recognized when the Company and subsidiaries have transferred to the buyer the significant risks and rewards of ownership of the goods.

Rental and service fee income is recognized on a straight - line basis over the period indicated in the agreement.

Trade discount and supports from suppliers are recorded at the accrual basis.

Interest income is recognized on a time proportion basis that reflects the effective yield on the asset.

Allowance for Doubtful Accounts

The Company and subsidiaries provide allowance for doubtful accounts equal to the estimated collection losses that may be incurred in the collection of the receivables. The estimated losses are based on collection experience and a review of current status of existing receivables.

Inventories

The Company and subsidiaries' inventories purchased under conditions are netted against corresponding accounts payable-suppliers.

ROBINSON

125

ß∫°“√‡ß‘π

Financial Statements

⌫

) ) ⌫ 0& / 8 ) # 3/ &(/ *# 1 ⌫> &? ⌫ ) / 9 ⌫ ! %$ 1 $! "# ) ) 0 &@/ 9; ) & ⌫) ) ) & / % ( ⌫ !&# $<⌦ 7$)# * '<⌦ ! #* # '4 ⌫ $ ! &# $<⌦

) ) ⌦#&0 0 1 ) ) ⌫ %$& ⌫) &0 0 1 1 / &0 0 1 %* 3⌦0 >/ % &*: &0 0 1 ) ) $0$ ) 1 #"% / < $ 1 ⌦# ;(⌫& / < ) 3⌦ 0 ! * $ 9 &0 0 1 & ⌫ & / ⌫# $ ) < 0&0 0 1 1 &0 0 1 ⌫ #⌫ < ) 0*⌫! " '7$) >⌫ &? ⌫) > 0 " #

⌫ ! '( ⌫$ $0 * & &# 1 ! ## ⌫ & $0% < 0@9>/ 1 0 $1 1*# '4 $0 1 1 ! # & / )#& * * 10 # &( 1*# '4 0 $0 1 #$ ) & / &@/ 9 ⌫ $ 0! ## ⌫ # &( $0 * & 1 ! # $! ) &@/ 9 ⌫ $ 0! ## ⌫ &# 1 ! ## ⌫ & $0% < 0@9>/ 1 0 $1 ) ) ⌫ 7) ) ⌫! * & ⌫$ 1*# '4 #1 >⌦0 *⌫ / & / 9 )1 < 0 ⌫$ 1*# '4 ⌫> #9 * & &* ⌫) * 0 ) 0 ⌫ " ;! # 9 ;(⌫

126

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

The Company and subsidiaries value their merchandise inventory purchased under normal credit terms at the lower of average cost or net realizable value.

Provision is made for possible loss on shrinkage, damages, obsolescence and slow-moving items, based on experience and estimated possible loss.

Investments

The Company and subsidiaries account for their investments in shares of subsidiaries and associated companies by the equity method.

Investments in shares of other companies (general investments), which are held for long-term purposes, are recorded at cost. Gains or losses are taken up into the accounts when the investments are disposed. The Company will recognize loss when the value of these investments are impaired. Cost of investments, which are disposed during the year, is determined by the weighted average method.

Property and Equipment

Land is stated at appraised value. The revaluation increment in land is shown under "Shareholders' Equity" in the balance sheets.

Building and equipment are stated at cost net of accumulated depreciation, except leasehold improvement and building system equipment which are stated at cost net of accumulated depreciation and revaluation reduction.

Leasehold right are stated at appraised value net of accumulated amortization and revaluation reduction. The revaluation increment is shown under "Shareholders' Equity" in the balance sheets.

The Company and subsidiaries have a policy to appraise property and equipment every three to five years or whenever the fair value of the appraised property and equipment materially change from the carrying value.

ROBINSON

127

ß∫°“√‡ß‘π

Financial Statements

⌫

+ + ),⌫ " " ! & ) +! .4⌫ $ ' &⌫ # & ) ⌫ ! &⌫ /011 ! +! . ⌫ % ( +! & )$ X ! ⌫ * +"⌫, & & . ( /< & /< & & & 0=/< & ) : 0=-< & ) 0=-< ! & ) ' 0 0 ' ⌫ ⌫ & ' ) ⌫& +! ( ( ⌫ ! + & ' #$ ! % +! ⌫ . ( ! &9 ( ! .⌫ ! $ **

+ - - " " ! $ ⌫$ (⌫ *(⌫$ ! ⌫ ! ! # $ . $ X & . ( ! % +! ⌫ ) ) ⌫ ! ! )⌫ )⌫ ⌫ *(⌫$ ⌫ ! ! " " $ ! ! ' $ ! ! )⌫ ⌫ ⌫ ! ⌦ &9 ⌫ $ 4 5 " " ⌦ $ ! ! ⌫$ (⌫ ! ! ⌫ ⌫ & ⌫ &9 & ⌫ ! +! ⌦ *(⌫ E ! E ' & ⌫ )⌫

128

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Depreciation and Amortization

The Company and its subsidiaries depreciate property and equipment by sum-of-the-year-digits method (except those which were acquired before 2001 are depreciated by the straight-line method) over their estimated useful lives as follows: Years Leasehold improvements

Buildings and construction

Buildings and construction improvements

5-20

Information system equipment

5-10

Building system equipment

5-10

Furniture, fixtures and office equipment

Vehicles

The depreciation charge for revalued assets is based on the revalued amount and remaining useful economic life, and the revaluation surplus is transferred directly to retained earnings/deficit when the surplus is realized.

Leasehold rights are amortized to expense by the straight-line method over the lives of the agreements.

Impairment of Assets

The Company and its subsidiaries review the impairment of assets whenever there are any indications that the carrying value of an asset exceeds its recoverable amount (the higher of an asset's net selling price or value in use). The review is made for individual assets or for the cash-generating units.

In case that the carrying value of an asset exceeds its recoverable amount, the Company and its subsidiaries recognize the impairment loss in the statement of income or reduce the revaluation increment in assets in case that those assets were previously revalued and the revaluation increment was recorded under "Shareholders' Equity". The reversal of impairment losses recognized in prior years is recorded as part of other income or as a revaluation increment in assets when there is an indication that the impairment losses recognized for the asset no longer exists or decreases.

ROBINSON

129

ß∫°“√‡ß‘π

Financial Statements

⌫

),⌫ ⌫ ". " / *(⌫ ⌫ &9 & : ⌫ !$⌦ &⌫ ⌦ *(⌫ &9 ! & ⌫ ) ⌫ ! ⌫ ⌫ &9 & : ) ⌫ ! & &9 ! & ⌫ 5 G ⌫ $ . ) ( & ⌫ :+! . & : ) ' $ ! & ⌦ &9 ! ( !' $ &⌫

+ +* + +* $ ⌫ . $ " ) < ⌦ &9 E E <⌦ ! ! ! ' ⌫ ! ' &9 ( +! . ⌫ ⌫ #/<% &⌫ ⌫ " ! &9 ( ) ! ! & + (

! . ! ' ! &9 ⌦ $ ⌫ ! ( ! ' ! ! ' ! ! &9 ! . ' $ !

+ + *(⌫ ⌫ ( ⌦ ! $ ⌫ ⌫ ! ! <⌦ 5⌦ ! ⌫ ! ⌫ X ⌫ X ! & ! 4 & ⌫ ⌫ $ 5 !& 3 &9 ⌫ $ $ +! ) 5⌦ 3 4 ** ! ⌫ & 4 ' $ ! ⌫ ! & $ ⌫ ! & 3 &9 ⌫ ! &9 ! ( ' $ ! 4 ⌫ 45 ⌫ ! & 3 &9 ' & $ $ +! 5 ' 9 ⌫ . Y ' ' ⌫ ⌫ ⌫ ⌫ (' ' ⌫ ! ! . ⌫ & + ( !⌫ ⌫ (' ⌫ 130

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Foreign Currency Transactions

Transactions in foreign currencies throughout the years are recorded at the rate prevailing at the dates of transactions. Assets and liabilities at the balance sheet dates which are denominated in foreign currencies are translated into Baht at the average exchange rates of commercial banks announced by the Bank of Thailand as of that date. Gains or losses on the translation are credited or charged to current operations.

Goodwill and Negative Goodwill

The excess of cost over equity in net assets of subsidiaries on the acquisition date is recognized as "Goodwill" which is stated at cost less accumulated amortization. The goodwill is being amortized as expense by the straightline method over a period of twenty (20) years. The Company expends the goodwill when goodwill is considered not to have future benefits.

Goodwill and negative goodwill, net of accumulated amortization, are presented as non-current assets in the consolidated balance sheet.

Amortization of goodwill as expense and of negative goodwill as income are recorded at net amount shown in the statement of income.

Financial Instruments

Financial assets and financial liabilities carried on the balance sheet include cash and cash equivalents, accounts receivable trade and others, investments, accounts payable trade and others, loans to, borrowings, and debenture payable. The accounting policies on recognition and measurement of these items are disclosed in the respective accounting policies.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gain and losses relating to a financial instrument classified as financial liabilities are reported as income or expense in the statement of income. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Company has a legally enforceable right to offset and intends to settle either on a net basis or to realize the asset and settle the liability simultaneously.

ROBINSON

131

ß∫°“√‡ß‘π

Financial Statements

⌫

0 ⌫ . " " ⌦ ⌫ 3 "⌫ ! ⌫ (' )F ⌫ ' ! & "Y

. - - 1 ' $ F ' )+! ' . ! ' ⌫ ⌫ &⌫5 G ⌫ 5 ' #->--<>22->-,, &⌫ /012 ,/,>,0I>2<2 &⌫ /010%

23 ),⌫

⌫ ⌫ *- " ⌫ *(⌫ " " " ⌫ ⌫ $ ⌫ ! $ ( ⌦ $ " &9 ⌫ !$⌦ " " " ⌫ ⌫ $ !

" ⌫ ⌫ $ +! 5 Z ⌫ ⌫ " " ⌫ + ' ! " ⌫ ⌫ $ ! ⌫ # % ' ! ' $ " ⌫ ⌫ $ +! !

' ⌫ ! $ X #$% ! +! ! ⌫ $ 5 3 & : ⌫ -=< 5⌦ -=0 &⌫ # % ! ( +! ! $ !$ +! ! &9 )F # % ! +! ! $ !$ ' ⌫

132

ROBINSON

Income Tax

The Company and its subsidiaries recognize tax obligations on tax basis based on the conditions described as the Revenue Code.

Basic Earnings per Share

Basic earnings per share is determined by dividing the net income by the weighted average number of shares outstanding during the year. (1,110,661,133 shares in 2003 and 323,359,606 shares in 2002).

5. TRANSACTIONS WITH RELATED PARTIES

The Company has transactions with its subsidiaries, associated and other related companies. Certain portions of the Company's assets, liabilities, revenues, costs and expenses arose from the transactions among the Company and its subsidiaries, associated and other related companies. These companies are related through common shareholdings and/or directorships. In general, the Company and its subsidiaries have policies on determining prices and/or charges with their related companies as follows:

(a) Merchandise selling prices and service charges between the Company and its subsidiaries and related companies should not be lower than the costs of those merchandise and/or services.

(b) Interest costs on borrowings or lendings between the Company and subsidiaries and related companies are determined by referring to the interest rates of certain local financial institutions plus 1.0% to 1.5% per annum.

(d) Management fee is based on certain percentages of sales or fixed amount.

ROBINSON

133

ß∫°“√‡ß‘π

⌫

Financial Statements

*(⌫ ⌫ ⌫ ' * ⌫ ⌫ ⌫ ⌫ $ ' &⌫ ! ⌫ ,- . /012 /010 ⌫! ⌫ 4/

$ # $ % ! ( ! ! ⌫ ! ⌫

2546

2545

2546

2545

57,283 939 89,330 429,948 6,904

34,612 719 84,324 464,040 7,324

! ( !

94,160 4,253

87,417 4,163

65,116 2,840

69,627 2,830

29,567 1,568 7,329

14,731 1,568 -

27,947 7,329

14,731 -

⌫ ⌫ *-

! ( ! ⌫

&⌫ /01< " ' ! " <⌫ <⌫ & ' ! ! ( ⌫ $ 4 ( ?? ⌫[ '! +! ⌫4 &9 $ !$ " ⌫ 9 " " +! ⌫ &9 $ !$ ' ⌫

134

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Significant transactions with the related parties for each of the years ended December 31, 2003 and 2002 were as follows

In Thousand Baht Consolidated 2003

2002

The Company Only 2003

2002

Subsidiaries Sales (and cost of sales) Rental and service charges Management fee income Interest income Interest expense

57,283 939 89,330 429,948 6,904

34,612 719 84,324 464,040 7,324

Associates Rental and service charges Financial fee income

94,160 4,253

87,417 4,163

65,116 2,840

69,627 2,830

29,567 1,568 7,329

14,731 1,568 -

27,947 7,329

14,731 -

Related Parties Rental and service charges Interest expense Management fee expense

Since 1997, Power Buy Co., Ltd. And CRC Sport Co., Ltd. Have occupied the areas of electrical equipment division and sports division, respectively, with service fees charged as a percentages of sales.

The Company charged management fee to its certain subsidiaries and associated companies, based on the percentages of sales or fixed amount.

ROBINSON

135

ß∫°“√‡ß‘π

⌫

Financial Statements

! ⌫ ⌫ $ ) ⌫ ,- . /012 /010 ⌫! ⌫

0 ⌫ +

" + $ ' ! " ' ! " ' ! " !⌫ G ' !

" <⌫ ! . ⌫ #& : % ' ! " <⌫ 3 9 #& : % ' ! " <⌫ : ⌫. ( #& : % ' ! " <⌫ ! * #& : % ' ! " <⌫ (⌫ #& : % ' ! " <⌫ (. ⌫ #& : % ' ! " <⌫ ( ⌫ #& : % ' ! " <⌫ ⌫ #& : % ' !

" ' ! " <⌫ <⌫ & ' !

136

ROBINSON

2546

2545

2546

2545

326 321 267

326 31 321 267

3,200 2,429 3,711 3,415 4,264 1,232 2,357 2,770

2,327 2,748 3,156 3,019 2,399 942 1,794 2,332

9,163 6,818

6,440 5,262

6,343 4,548

5,319 3,388

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Balances with related parties as at December 31, 2003 and 2002 were as follows:

In Thousand Baht Consolidated 2003

2002

The Company Only 2003

2002

Trade Accounts Receivable Direct Subsidiaries Robinson Sukhumvit Co., Ltd. Sapanmai Department Store Co., Ltd. Kruerkaew Co., Ltd. RD Pattana Co. ,Ltd.

326 321 267

326 31 321 267

3,200 2,429 3,711 3,415 4,264 1,232 2,357 2,770

2,327 2,748 3,156 3,019 2,399 942 1,794 2,332

9,163 6,818

6,440 5,262

6,343 4,548

5,319 3,388

Indirect Subsidiaries CR Udorn Thani (Thailand) Co., Ltd. CR Phuket (Thailand) Co., Ltd. CR Nakorn Sri Thammarat (Thailand) Co., Ltd. CR Had Yai (Thailand) Co. ,Ltd. CR Chiang Mai (Thailand) Co., Ltd. CR Ubon Ratchathani (Thailand) Co., Ltd. CR Rajchaburi (Thailand) Co., Ltd. CR Chantaburi (Thailand) Co., Ltd.

Associated Companies Power Buy Co., Ltd. CRC Sport Co. Ltd.

ROBINSON

137

ß∫°“√‡ß‘π

⌫

Financial Statements

4/ 2546

2545

2546

2545

15,307 5,760 6,670 43,718 ( 20,723) 22,995

15,307 5,760 4,822 37,591 (20,723) 16,868

13,807 5,322 5,252 59,564 (19,130) 40,434

13,807 5,322 3,708 51,206 (19,130) 32,076

22,995

443 17,311

40,434

32,076

59,747 34,831 20,316 191,558 1,048 4,756,178

⌫ ⌫ *-

" ! 9 ' ! " ⌫ #! * % ' ! " X 4 ⌫ * . . ( ⌫ 5⌦ ' !(' ⌦ &⌫ = " \ <⌫ < & & <9 ' ! # ( %

5 0

# ! ⌫ @=0 ;=0; &⌫ ) ⌫ ,- . /012 /010 '! %

" + ⌫ ' ! " + (! ' ! " + ' ! " ( ' ! " !⌫ G ' ! " + $ ' ! " <⌫ #& : % ' ! ' 4 4 $ ! " <⌦ ⌦ +! .⌫ ! ⌫ # I% .

138

ROBINSON

64,668 37,215 30,862 168,968 1,891 5,478,752

( 3,952,637) (3,799,361) 1,829,719 1,264,317

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht Consolidated 2003

2002

The Company Only 2003

2002

Related Companies New and Now Network Co., Ltd. Samakeesan (Dokya) Co., Ltd. Other companies Total Less allowance for doubtful accounts Net

15,307 5,760 6,670 43,718 ( 20,723) 22,995

15,307 5,760 4,822 37,591 (20,723) 16,868

13,807 5,322 5,252 59,564 (19,130) 40,434

13,807 5,322 3,708 51,206 (19,130) 32,076

22,995

443 17,311

40,434

32,076

59,747 34,831 20,316 191,558 1,048 4,756,178

Current portion of accrued leasehold right - Big C Super Center Public Co., Ltd. Total

Short-Term Loans and Advances (interest rate at 7.5% and 8.58% per annum as at December 31, 2003 and 2002, respectively) Direct Subsidiaries Robinson Anusawaree Co., Ltd. Robinson Ratchada Co., Ltd. Robinson Nakarin Co., Ltd. Kruerpetch Co., Ltd. RD Pattana Co., Ltd. Robinson Sukhumvit Co., Ltd. CR (Thailand) Co., Ltd.

64,668 37,215 30,862 168,968 1,891 5,478,752

( 3,952,637) (3,799,361) 1,829,719 1,264,317

Less: Provision for loss from investments in subsidiary companies recorded by the equity method (Note 9) Net

ROBINSON

139

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

â&#x152;Ť

Financial Statements

4/ 2546

2545

2546

2545

3â&#x152;Ť 4 89&#: * & +% ) !"# $

224 224 1,829,943 1,264,541

" % $ #& â&#x152;Ť) *â&#x152;Ť

7 4 !"# $ )

61,223

) â&#x152;Ť& $â&#x152;Ť& *& 4 !"# $

324,882

19,687 344,569 (344,569) -

19,687 19,687 344,569 405,792 (344,569) (344,569) 61,223

19,687 405,792 (344,569) 61,223

â&#x152;Ť â&#x152;Ť 6% 0 3 !"# $ # &@/ â&#x152;Ť 0 )! 9; 1

â&#x152;Ť !

&3: & $$ 0 !"# $ &3: # 4& 4 A â&#x152;Ť !"# $ 3â&#x152;Ť& # !"# $ &3: !"# $ & -& - # 4& 4 22 !"# $ / H

140

ROBINSON

49,075 27,496 26,589 5,679 3,893 112,732

18,761 24,856 23,544 6,389 25,209 3,617 102,376

32,095 15,363 14,538 4,945 3,332 70,273

11,177 14,424 13,005 5,380 12,802 1,724 58,512

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht Consolidated 2003

2002

The Company Only 2003

2002

Indirect Subsidiaries CR Phuket (Thailand) Co., Ltd. Total

224 224 1,829,943 1,264,541

Long-Term Loans (interest rate per annum) Direct Subsidiary Robinson Nakarin Co., Ltd. (6%)

61,223

Associated Companies Siam Retail Development Co., Ltd.

324,882

19,687 344,569 (344,569) -

19,687 19,687 344,569 405,792 (344,569) (344,569) 61,223

19,687 405,792 (344,569) 61,223

Related Companies (Shareholdings) Rangsit Plaza Co., Ltd. Total Less allowance for doubtful accounts Net

Trade Accounts Payable Central Trading Co., Ltd. Central Garment Factory Co., Ltd. Cetrac International Co., Ltd. Central Department Store Co., Ltd. S.K. Garment (1995) Co., Ltd. Other companies Total

49,075 27,496 26,589 5,679 3,893 112,732

18,761 24,856 23,544 6,389 25,209 3,617 102,376

32,095 15,363 14,538 4,945 3,332 70,273

11,177 14,424 13,005 5,380 12,802 1,724 58,512

ROBINSON

141

ß∫°“√‡ß‘π

⌫

Financial Statements

4/ 2546

2545

2546

2545

153,393

149,026

7,243

6,599

13,524

17,119

2,467

867,821 177

863,821 64

14,594 2,871 17,465

12,759 2,846 12,759 1,047,471

1,036,629

# ! ⌫ &⌫% " + (!' ' ! # /=@0% " + $ ' ! # /=@0% " ' ! # /=@0% " !⌫ G ' ! # /=@0% I=JKLMNOP #Q% RST= # !⌫ ⌫ % " X

⌫ ⌫ *- + * ,

" <9 ⌫ & ( ' ! # -0% " X

0 *

# ! ⌫ &⌫%

" + $ ' ! # /%

142

ROBINSON

113,300

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht Consolidated 2003

2002

The Company Only 2003

2002

Short-Term Loans and Advances (Interest rate per annum) Direct Subsidiaries Robinson Rajdamri Co., Ltd. (2.75%) Robinson Sukhumvit Co., Ltd. (2.75%) Kruerkaew Co., Ltd. (2.75%) RD Pattana Co., Ltd. (2.75%)

153,393 7,243 13,524 2,467

149,026 6,599 17,119 -

867,821 177

863,821 64

14,594 2,871 17,465

12,759 2,846 12,759 1,047,471

1,036,629

R - Trading (L) BHD. (non-interest bearing) Other companies

Related Companies (Shareholdings/Directorships) Central Retail Corporation Co., Ltd. (15%) Other companies Total

Long-Term Loan (interest rate per annum) Direct Subsidiary Robinson Sukhumvit Co., Ltd. (2%)

113,300

ROBINSON

143

ß∫°“√‡ß‘π

⌫

Financial Statements

# & <⌦ $ 0< 0&0 #9)/ ) &0 $ 0 # # !# ⌫ &#⌫ ) < 0# 0 # &0 &? " *⌫ 1 $ ⌫ ⌫$0 ⌫ % ⌫ ⌫ ' ⌫ 7 ! 2 8 5,063,902 & <⌦ 00 $ 3,715,783 $ 0 00 $ (2,997,105) ' ⌫ 97 ! 2 8 5,782,580 # & <⌦ $ 0< 0&0 #9)/ ) ) # #! # ⌫& #⌫) < 0 0 # &0 < 0 ) ) " *⌫ 1 $ ⌫ ⌫$0 ⌫ ' ⌫ 7 ! 2 8 & <⌦ 00 $ $ 0 00 $ ' ⌫ 97 ! 2 8

324,882 324,882

# $0 ⌫ ⌫ ! $ 19,687 19,687

# & <⌦ $ 0< 0&0 #9)/ ) ) # #! # ⌫& #⌫) < 0# 0 # &0 &? " *⌫ 1 $ ⌫ ⌫$0 ⌫ ' ⌫ 7 ! 2 8 & <⌦ 00 $ $ 0 00 $ ' ⌫ 97 ! 2 8 144

ROBINSON

61,223 61,223

324,882 324,882

# $0 ⌫ ⌫ ! $ 19,687 19,687

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Movements of short-term loans and advances to related parties in the Company's financial statements for the year ended December 31, 2003 were as follows: In Thousand Baht Other Subsidiaries Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

5,063,902 3,715,783 (2,997,105) 5,782,580

Associates

Related parties

Movements of long-term loans to related parties in the consolidated financial statements of the Company and subsidiaries for the year ended December 31, 2003 were as follows:

In Thousand Baht Other Subsidiaries Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

Associates

324,882 324,882

Related parties

19,687 19,687

Movements of long-term loans to related parties in the Company's financial statements for the year ended December 31, 2003 were as follows: In Thousand Baht Other Subsidiaries

Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

61,223 61,223

Associates

324,882 324,882

Related parties

19,687 19,687

ROBINSON

145

ß∫°“√‡ß‘π

⌫

Financial Statements

# & <⌦ $ 0< 0&0 #9)/ ) &0 $ 0! ## !# ⌫& #⌫) < 0# 0 # &0 < 0 ) ) " *⌫ 1 $ ⌫ ⌫$0 ⌫ ' ⌫ 7 ! 2 8 & <⌦ 00 $ $ 0 00 $ ' ⌫ 97 ! 2 8

% ⌫ ⌫ 12,759 1,835 14,594

# & <⌦ $ 0< 0&0 #9)/ ) &0 $ 0! ## !# ⌫& #⌫) < 0# 0 # &0 &? " *⌫ 1 $ ⌫ ⌫$0 ⌫ ' ⌫ 7 ! 2 8 & <⌦ 00 $ $ 0 00 $ ' ⌫ 97 ! 2 8

# $0 ⌫ ⌫ ! $

1,036,629 1,853,043 (1,845,047) 1,044,625

2,846 2,846

# & <⌦ $ 0< 0&0 #9)/ ) ) ! ## !# ⌫& #⌫) < 0# 0 # &0 &? " *⌫ 1 $ ⌫ ⌫$0 ⌫ $ ' ⌫ 7 ! 2 8 & <⌦ 00 $ $ 0 00 $ ' ⌫ 97 ! 2 8 146

ROBINSON

113,300 113,300

# $0 ⌫ ⌫ ! $ -

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Movements of short-term loans and advances from related parties in the consolidated financial statements of the Company and subsidiaries for the year ended December 31, 2003 were as follows:

In Thousand Baht Other Subsidiaries Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

Associates

Related parties

12,759 1,835 14,594

Movements of short-term loans and advances from related parties in the Company's financial statements for the year ended December 31, 2003 were as follows: In Thousand Baht Other

Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

Subsidiaries

Associates

Related parties

1,036,629 1,853,043 (1,845,047) 1,044,625

2,846 2,846

Movements of long-term loans from related parties in the Company's financial statements for the year ended December 31, 2003 were as follows:

In Thousand Baht Other Subsidiaries Balance as at January 1, 2003 Increase during the period Decrease during the period Balance as at December 31, 2003

113,300 113,300

Associates

Related parties

ROBINSON

147

ß∫°“√‡ß‘π

⌫

Financial Statements

83 " ⌫ ! ' ⌫ ) ) ⌫) $ 9# ⌫# 7$) )# !" &$/ ⌫ 0(" %$$ 0 ⌫ 2546

2545

2546

2545

23,914 69 168 19,567 43,718 ( 20,723) 22,995

14,600 4 84 23,346 38,034 ( 20,723) 17,311

39,708 227 341 19,288 59,564 (19,130) 40,434

31,311 178 255 19,462 51,206 (19,130) 32,076

105,802 6,515 4,316 23,185 139,818 (19,345) 120,473

105,979 3,331 1,377 27,475 138,162 (19,310) 118,852

73,358 4,820 2,971 15,564 96,713 (11,197) 85,516

67,053 3,213 1,251 24,631 96,148 (11,150) 84,998

⌫ ⌫

)# / & # &$/ ## &$/ >⌦0 &$/ ## &$/ >⌦0 &$/ ## &$/ <⌦ %* # &@/ ⌫ 0 )! 9;

% @

)# / & # &$/ ## &$/ >⌦0 &$/ ## &$/ >⌦0 &$/ ## &$/ <⌦ %* # &@/ ⌫ 0 )! 9;

148

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

6. TRADE ACCOUNTS RECEIVABLE

As at December 31, 2003 and 2002, the Company and its subsidiaries had outstanding balances of trade accounts receivable aged by number of months as follows:

In Thousand Baht Consolidated 2003

2002

23,914 69 168 19,567 43,718 ( 20,723) 22,995

105,802 6,515 4,316 23,185 139,818 (19,345) 120,473

The Company Only 2003

2002

14,600 4 84 23,346 38,034 ( 20,723) 17,311

39,708 227 341 19,288 59,564 (19,130) 40,434

31,311 178 255 19,462 51,206 (19,130) 32,076

105,979 3,331 1,377 27,475 138,162 (19,310) 118,852

73,358 4,820 2,971 15,564 96,713 (11,197) 85,516

67,053 3,213 1,251 24,631 96,148 (11,150) 84,998

Related Parties Less than and up to 3 months Over 3 months up to 6 months Over 6 months up to 12 months Over 12 months Total Less allowance for doubtful accounts Net

Other Companies Less than and up to 3 months Over 3 months up to 6 months Over 6 months up to 12 months Over 12 months Total Less allowance for doubtful accounts Net

ROBINSON

149

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

â&#x152;Ť

Financial Statements

A3 ! ! %

& / < ) # 5 &@/ 9; ) & â&#x152;Ť) ) ) & / % (

C< / ( â&#x152;Ť %

(! )! ) 0 &0 $ 0! ) 9# â&#x152;Ť# # / H

4/ 2546

2545

2546

2545

558,223

497,914

368,844

320,837

(37,478) 520,745

(14,084) 483,830

(23,736) 345,108

(8,769) 312,068

* 1- 2546

2545

2546

2545

18,195 12,134 11,055 27,857 69,241

18,282 10,484 445 21,190 50,401

13,582 7,642 21,407 42,631

12,699 6,464 133 15,582 34,878

D< â&#x152;Ť â&#x152;Ť

Bâ&#x152;Ś â&#x152;Ś > â&#x152;Ť # â&#x152;Ť ' â&#x152;Ť &0 0 1 3â&#x152;Ś0 â&#x152;Ś#7$) â&#x152;Ť %$& â&#x152;Ť)* # $ ) &0 0 1 1 1 < 0 ) ) 3â&#x152;Ś0 $0 )9 0 # &0 &? &0 0 1 1 1 < 0 $0 )9 0 # &0

150

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

7. INVENTORIES In Thousand Baht Consolidated

Merchandise

The Company Only

2003

2002

2003

2002

558,223

497,914

368,844

320,837

(37,478) 520,745

(14,084) 483,830

(23,736) 345,108

(8,769) 312,068

Less - Allowance for shortage, damage, obsolete and slow-moving inventories Total

8. OTHER CURRENT ASSETS In Thousand Baht Consolidated

Prepaid expenses Advances Revenue Department receivable Others Total

The Company Only

2003

2002

2003

2002

18,195 12,134 11,055 27,857 69,241

18,282 10,484 445 21,190 50,401

13,582 7,642 21,407 42,631

12,699 6,464 133 15,582 34,878

9. INVESTMENTS IN SHARES OF RELATED PARTIES

Investments Recorded by the Equity Method

As at December 31, 2003 and 2002, investments recorded by the equity method consisted of the investments in shares of subsidiaries and associates in the Company's financial statements, and investments in shares of associates in the consolidated financial statements.

ROBINSON

151

ß∫°“√‡ß‘π

⌫

Financial Statements

&0 0 1 3⌦ 0 ⌦#7$) ⌫ %$& ⌫) 0 # &0 < 0 ) ) ' ⌫ * # $ )

⌫ ⌫ ⌫

! "#$ %&&

' ⌫ ( ⌫ (() ' *+ !

,! ( (" ⌫ ⌫ (" ' ! - !

⌫ ! " # $ " %& $ ' ⌫& (

270,000 560,000

29.19 108,000 68,108 40.00 224,000 276,155

500,000 125,000 428,200 1,883,200 1,883,200

24.00 120,000 10,194 24.00 30,000 29,858 20.86 89,323 34,584 571,323 418,899 ( 74,636) 571,323 344,263

&0 0 1 3⌦0 ⌦#7$) ⌫ %$& ⌫) 0 # &0 &? ' ⌫ * # $ )

/ $ / ! / 0' 1 # ' ! ! , / 2 ⌫2 ⌫2 3456789:; <=> ?@A2 '

152

ROBINSON

' % $ ' % $ ' % $ ' % $ ' % $ (" ("

⌫ ! " # $ " %& $ ' ⌫& (

46,000 105,000 100,000 20,000 40,000 1,000 50 312,050

99.35 45,701 148,314 99.86 104,853 176,448 99.99 100,000 106,172 74.50 14,900 16,025 99.99 40,000 61,947 99.99 1,000 993 99.92 50 883,705 306,504 1,393,604

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Investments recorded by the equity method in the consolidated financial statements of the Company and its subsidiaries as at December 31, 2003 consisted of: In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

Associates CRC Sports, Co., Ltd.

Sport Equipment Shareholding

270,000

29.19

108,000

68,108

Store

Shareholding

560,000

40.00

224,000 276,155

Shopping Center

Shareholding

500,000

24.00

120,000

10,194

Ritz Plaza Co., Ltd.

Investing Company

Shareholding

D C R Co., Ltd.

Investing Company Shareholding

125,000 428,200 1,883,200 1,883,200

24.00 20.86

30,000 29,858 89,323 34,584 571,323 418,899 ( 74,636) 571,323 344,263

Store Power Buy Co., Ltd.

Electric Equipment

Siam Retail Development Co., Ltd. Square

Total Less allowance for impairment Net

Investments recorded by the equity method in the Company's financial statements as at December 31, 2003 consisted of:

In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

46,000 105,000 100,000

99.35 99.86 99.99

45,701 104,853 100,000

148,314 176,448 106,172

20,000 40,000 1,000 50 312,050

74.50 99.99 99.99 99.92

14,900 16,025 40,000 61,947 1,000 993 50 883,705 306,504 1,393,604

Subsidiaries Robinson Rajdamri Co., Ltd. Dormant Company Shareholding Robinson Nakarin Co., Ltd. Dormant Company Shareholding Robinson Sukhumvit Co., Ltd. Dormant Company Shareholding Sapanmai Department Store Co., Ltd.

Dormant Company Shareholding

Kruerkaew Co., Ltd.

Dormant Company Shareholding

Robinson S.P.V. Co., Ltd. Investing Company Shareholding R-Trading (L) BHD. Total

Investing Company Shareholding

ROBINSON

153

ß∫°“√‡ß‘π

⌫

Financial Statements

⌫ ⌫ ⌫

! "#$ %&&

' ⌫ ( ⌫ (() ' *+ !

,! ( (" ⌫ ⌫ (" ' ! - !

⌫ ! " # $ " %& $ ' ⌫& (

270,000 560,000

29.19 40.00

108,000 68,108 224,000 276,155

500,000 24.00 125,000 24.00 428,200 20.86 1,883,200 1,883,200 2,195,250

120,000 10,194 30,000 29,858 89,323 34,584 571,323 418,899 (74,636) 571,323 344,263 877,827 1,737,867

<⌦ ⌦ +! .⌫ ! ⌫ $ " " ) ⌫ ,- . /010 & !

⌫ ⌫ ⌫

! "#$ %&&

' ⌫ ( ⌫ (() ' *+ !

,! ( (" ⌫ ⌫ (" ' ! - !

154

ROBINSON

⌫ ! " # $ " %& $ ' ⌫& (

270,000 560,000

40.00 40.00

108,000 30,097 224,000 281,855

500,000 24.00 125,000 24.00 428,200 20.86 1,883,200 1,883,200

120,000 10,194 30,000 29,858 89,323 34,584 571,323 386,588 (74,636) 571,323 311,952

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

Associates CRC Sports Co., Ltd.

Sport Equipment Shareholding

270,000

29.19

108,000

68,108

Store

Shareholding

560,000

40.00

224,000

276,155

Shopping Center

Shareholding

500,000 125,000 428,200 1,883,200 1,883,200 2,195,250

24.00 24.00 20.86

120,000 10,194 30,000 29,858 89,323 34,584 571,323 418,899 (74,636) 571,323 344,263 877,827 1,737,867

Store Power Buy Co., Ltd.

Electric Equipment

Siam Retail Development Co., Ltd.

Square Ritz Plaza Co., Ltd Investing Company Shareholding D C R Co., Ltd.

Investing Company Shareholding

Total Less allowance for impairment Net Total Investments

Investments recorded by the equity method in the consolidated financial statements of the Company and its subsidiaries as at December 31, 2002 consisted of:

Type of Business

In Thousand Baht

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

Associates CRC Sports, Co., Ltd.

Sport Equipment Store

Power Buy Co., Ltd.

Shareholding

270,000

40.00

108,000

30,097

Shareholding

560,000

40.00

224,000 281,855

Shareholding

500,000 125,000 428,200 1,883,200 1,883,200

24.00 24.00 20.86

120,000 30,000 89,323 571,323 571,323

Electric Equipment Store

Siam Retail

Shopping

Development Co., Ltd.

Center

Square Ritz Plaza Co., Ltd. Investing Company Shareholding D C R Co., Ltd.

Investing Company Shareholding

Total Less allowance for impairment Net

10,194 29,858 34,584 386,588 (74,636) 311,952

ROBINSON

155

ß∫°“√‡ß‘π

# ⌫ $% & # '()* '()(

Financial Statements

<⌦ ⌦ +! . ⌫ ! ⌫ G " ) ⌫ ,- . /010 & !

! " #

%&'()*+,- ./0 1234

7⌫ 7⌫ 9 :

⌫ 5

⌫ 55= 9

$ 7 5 7#

⌫7 ⌫

# @ # #

156

ROBINSON

⌫ ! " # $ " %& $ ' ⌫& (

# 9 ;⌫ # # 6" << >?

56 56

46,000 105,000 100,000 20,000 40,000 50 311,050

99.35 99.86 99.99 74.50 99.99 99.92

45,701 104,853 100,000 14,900 40,000 50 305,504

144,249 186,995 106,858 16,057 64,651 884,161 1,402,971

270,000 40.00 560,000 40.00

108,000 30,097 224,000 281,855

500,000 24.00 125,000 24.00 428,200 20.86 1,883,200 1,883,200 2,194,250

120,000 10,194 30,000 29,858 89,323 34,584 571,323 386,588 (74,636) 571,323 311,952 876,827 1,714,923

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Investments recorded by the equity method in the Company's financial statements as at December 31, 2002 consisted of: In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

Subsidiaries

46,000 105,000 100,000

99.35 99.86 99.99

45,701 144,249 104,853 186,995 100,000 106,858

20,000 40,000 50 311,050

74.50 99.99 99.92

14,900 16,057 40,000 64,651 50 884,161 305,504 1,402,971

Shareholding

270,000

40.00

108,000

30,097

Store

Shareholding

560,000

40.00

224,000 281,855

Shopping Center

Shareholding

500,000 125,000 428,200 1,883,200 1,883,200 2,194,250

24.00 24.00 20.86

120,000 30,000 89,323 571,323 571,323 876,827

Robinson Rajdamri Co., Ltd. Dormant Company Shareholding Robinson Nakarin Co., Ltd. Dormant Company Shareholding Robinson Sukhumvit Co., Ltd. Dormant Company Shareholding Sapanmai Department Store Co., Ltd.

Dormant Company Shareholding

Kruerkaew Co., Ltd.

Dormant Company Shareholding

R-Trading (L) BHD.

Investing Company Shareholding

Total

Associates CRC Sports Co., Ltd.

Sport Equipment Store

Power Buy Co., Ltd.

Electric Equipment

Siam Retail Development Co., Ltd.

Square Ritz Plaza Co., Ltd.Investing Company Shareholding D C R Co., Ltd.

Investing Company Shareholding

Total Less allowance for impairment Net Total Investments

10,194 29,858 34,584 386,588 (74,636) 311,952 1,714,923

ROBINSON

157

ß∫°“√‡ß‘π

⌫

Financial Statements B⌦ ⌦ > ⌫

&0 0 1 %*3⌦ 0 ⌦# 1 0 # &0 < 0 ) ) ' ⌫ * # $ )

⌫ ! % & % '( ⌫ $ % )+ ,

"# $ "# $

%⌫) ⌫ * $

! " # ! $% # &

170,000 4.15 12,713 400,000 6.56 26,250 600,000 19.58 117,500 600,000 13.33 80,000 1,770,000 236,463 (236,463) 1,770,000 -

&0 0 1 %*3⌦0 ⌦# 1 0 # &0 &? ' ⌫ * # $ )

⌫ ! '( ⌫ $ % )+ ,

158

ROBINSON

"# $

%⌫) ⌫ * $

! " # ! $% # &

170,000 4.15 12,713 400,000 6.56 26,250 600,000 13.33 80,000 1,170,000 118,963 (118,963) 1,170,000 -

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

General Investments Recorded by the Cost Method

General investments recorded by the cost method in the consolidated financial statements of the Company and its subsidiaries as at December 31, 2003 consisted of: In Thousand Baht

Type of Business

Samakeesan (Dokya) Co., Ltd. Book Store

Paid-up Capital Relationship (In Thousand Baht)

Shareholding

Rangsit Plaza Co., Ltd.

Department Store Shareholding

Wattanawana Co., Ltd.

Department Store Shareholding

Siam Family Mart Co., Ltd.

Convenient Store Shareholding

Total Less allowance for impairment Net

170,000 400,000 600,000 600,000 1,770,000 1,770,000

% Share Holding

Investment Value

Dividends

4.15 6.56 19.58 13.33

12,713 26,250 117,500 80,000 236,463 (236,463) -

General investments recorded by the cost method in the Company's financial statements as at December 31, 2003 consisted of : In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

Samakeesan (Dokya) Co., Ltd.

Book Store

Rangsit Plaza Co., Ltd.

Department Store Shareholding

Siam Family Mart Co., Ltd.

Convenient Store Shareholding

Total Less allowance for impairment Net

Shareholding

170,000 400,000 600,000 1,170,000 1,170,000

% Share Holding

Investment Value

Dividends

4.15 6.56 13.33

12,713 26,250 80,000 118,963 (118,963) -

ROBINSON

159

ß∫°“√‡ß‘π

⌫

Financial Statements

&0 0 1 %*3⌦ 0 ⌦# 1 0 # &0 < 0 ) ) ' ⌫ * # $ )

⌫ ! % & % '( ⌫ $ % )+ ,

"# $ "# $

%⌫) ⌫ * $

! " # ! $% # &

170,000 4.15 12,713 400,000 6.56 26,250 600,000 19.58 117,500 600,000 13.33 80,000 1,770,000 236,463 (236,463) 1,770,000 -

&0 0 1 %*3⌦0 ⌦# 1 0 # &0 &? ' ⌫ * # $ ) -

⌫ ! '( ⌫ $ % )+ ,

160

ROBINSON

"# $

%⌫) ⌫ * $

! " # ! $% # &

170,000 4.15 12,713 400,000 6.56 26,250 600,000 13.33 80,000 1,170,000 118,963 (118,963) 1,170,000 -

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

General investments recorded by the cost method in the consolidated financial statements of the Company and its subsidiaries as at December 31, 2002 consisted of: In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

Samakeesan (Dokya) Co., Ltd.

Book Store

Shareholding

Rangsit Plaza Co., Ltd.

Department Store Shareholding

Wattanawana Co., Ltd.

Department Store Shareholding

Siam Family Mart Co., Ltd.

Convenient Store Shareholding

Total Less allowance for impairment Net

170,000 400,000 600,000 600,000 1,770,000 1,770,000

% Share Holding

Investment Value

4.15 6.56 19.58 13.33

12,713 26,250 117,500 80,000 236,463 (236,463) -

Dividends

General investments recorded by the cost method in the Company's financial statements as at December 31, 2002 consisted of : In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

Samakeesan (Dokya) Co., Ltd.

Book Store

Rangsit Plaza Co., Ltd.

Department Store Shareholding

Siam Family Mart Co., Ltd.

Convenient Store Shareholding

Total Less allowance for impairment Net

Shareholding

170,000 400,000 600,000 1,170,000 1,170,000

% Share Holding

Investment Value

4.15 6.56 13.33

12,713 26,250 80,000 118,963 (118,963) -

Dividends

ROBINSON

161

ß∫°“√‡ß‘π

⌫

Financial Statements

!" ! # $ % B⌦ ⌦ > ⌫ & ⌫

" 0! #@ < $ 1 < 0&0 0 1 ) ) ⌫& # # 9 &0 0 1 0 # &0 &? ' ⌫ * # $ )

⌫ ! " # $ " %& $ ' ⌫& (

⌫ !" #⌫

$% & ' ( !"

⌫ ) )

* " + , +!- " !" . , #⌦", ⌦ 0 ⌫ , ⌫ * 0 " . 1 & & 2!& " "2 , , $ 3 4( 0

162

ROBINSON

8,000 11,250 501,000 3,000 75,000

99.91 8,000 64,892 99.99 11,250 111,294 99.99 501,000 3,799,151 99.98 3,000 4,310 99.80 74,850 15,247 598,250 598,100 3,994,894

42,257 3,952,637 3,994,894

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Provision for loss from investments in subsidiary companies recorded by the equity method

Provision for loss from investments in subsidiaries exceeding investment value in the Company's financial statements as at December 31, 2003 consisted of :

In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

% Share Holding

At Cost Method

At Equity Method Dividends

Subsidiaries Robinson Anusawaree Co., Ltd.

Dormant Company Shareholding

Kruerpetch Co., Ltd.

Investing Company Shareholding

CR (Thailand) Co., Ltd.

Investing Company Shareholding

RD Pattana Co., Ltd.

Real Estate

Shareholding

8,000 11,250 501,000 3,000

99.91 99.99 99.99 99.98

75,000

99.80

8,000 64,892 11,250 111,294 501,000 3,799,151 3,000 4,310

Robinson Ratchada Co., Ltd.

Dormant Company Shareholding

Total

598,250

74,850

15,247

598,100 3,994,894

Shown in the Company's financial statements under the caption: - Provision for loss from investments in subsidiary companies recorded by the equity method

42,257

- Deduction against short-term loans and advances to subsidiary companies (Note 5) Net

3,952,637 3,994,894

ROBINSON

163

ß∫°“√‡ß‘π

⌫

Financial Statements

' 4 $ ! $ " ⌫ G " ) ⌫ ,- . /010 & !

⌫ ! " # $ " %& $ ' ⌫& (

⌫ !" #⌫

$% & ' ( !"

⌫ ) )

" * "+ " " , & - +. / " 0 1 0!2 " !" + 1 #⌦"1 ⌦ 4 ⌫ 1 ⌫ / 4 " + 5 & & *!& " "* 1 1 $ . 6( 4

8,000 11,250 501,000 3,000 75,000 598,250

;E< ⌫ + ' " ()

⌫

! ⌫ ! ⌫ ⌫ ⌫ ⌫! = .

99.91 8,000 60,002 99.99 11,250 100,816 99.99 501,000 3,677,077 99.98 3,000 5,181 99.80 74,850 7,586 598,100 3,850,662

51,301 3,799,361 3,850,662

) ⌫ + . * * "⌫ ) ⌫ - ,- . $⌦ ! /012 /012 280,834 (105,180) 191,242 366,896

1,281,847 (589,964) 691,883

100,049 100,049

280,834 (105,180) 191,242 366,896

* " " $

! ⌫ ! ⌫ & & . ( = . 164

ROBINSON

303 303

1,381,593 (589,964) 791,629

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

Provision for loss from investments of subsidiaries exceeding investment value in the Company's financial statements as at December 31, 2002 consisted of: In Thousand Baht

Type of Business

Paid-up Capital Relationship (In Thousand Baht)

Robinson Anusawaree Co., Ltd.Dormant Company Shareholding Kruerpetch Co., Ltd.

Investing Company Shareholding

CR (Thailand) Co., Ltd.

Investing Company Shareholding

RD Pattana Co., Ltd.

Real Estate

Shareholding

Robinson Ratchada Co., Ltd. Dormant Company Shareholding Total

8,000 11,250 501,000 3,000 75,000 598,250

% Share Holding

At Cost Method

At Equity Method Dividends

99.91 8,000 60,002 99.99 11,250 100,816 99.99 501,000 3,677,077 99.98 3,000 5,181 99.80 74,850 7,586 598,100 3,850,662

Shown in the Company's financial statements under the caption: - Provision for loss from investments in subsidiary

51,301

companies recorded by the equity method - Deduction against short-term loans and advances to

3,799,361 3,850,662

subsidiary companies (Note 5) Net

10. PROPERTY, PLANT AND EQUIPMENT In Thousand Baht Consolidated

Land Cost Less revaluation reduction Add revaluation increment Land - Net

As at January 1, 2003

Movement During the Year Addition

280,834 (105,180) 191,242 366,896

1,281,847 (589,964) 691,883

100,049 100,049

Deduction

As at December 31, 2003

280,834 (105,180) 191,242 366,896

Leasehold improvements Cost Less revaluation reduction Leasehold improvements - Net

303 303

1,381,593 (589,964) 791,629

ROBINSON

165

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

â&#x152;Ť

Financial Statements

+ & ,

1,088,749

38,010

267,196

4,541

938

270,799

'( 1 &$ # 9 â&#x152;Ť $ 0! ## â&#x152;Ť 1*# '4 0 5 1

1,168,178 (113,696) 1,054,482

70,729 70,729

1,466 1,466

1,237,441 (113,696) 1,123,745

" & '( ,

1,731,023

83,025

72,717

1,741,331

17,082

2,502

1,165

18,419

109,879

97,276

177,299

29,856

'( - ,

. , & ,

166

ROBINSON

) â&#x152;Ť '0 $ +â&#x152;Ť ) â&#x152;Ť - ,- . $â&#x152;Ś ! /012 /012

â&#x152;Ť$ 1*# '4

5,327,190

" * * 10 # &( 0 * 9# 0 * * 10 1*# '4 & + 1*# '4 0 & / 0 # 0 $ 0 1*# '4 " #0 ) & /

(473,865) (367,185) (174,892) (641,304) (1,540,436) (15,380) (3,213,062)

1,126,759

5,469,434

(48,349) (59,531) (27,299) (100,088) (104,373) (1,614)

161 833 1,206 72,519 1,166

( 522,053) (426,716) (201,358) ( 740,186) (1,572,290) (15,828) (3,478,431)

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht Consolidated As at January 1, 2003

Deduction

As at December 31, 2003

1,126,759

Movement During the Year Addition

Buildings, constructions and improvements - At Cost

Information system equipment- At Cost

1,088,749

38,010

267,196

4,541

938

270,799

1,168,178 (113,696) 1,054,482

70,729 70,729

1,466 1,466

1,237,441 (113,696) 1,123,745

1,731,023

83,025

72,717

1,741,331

17,082

2,502

1,165

18,419

109,879

97,276

177,299

Building system equipment Cost Less revaluation reduction Building system equipment - Net

Furniture, fixtures and office equipment - At Cost

Vehicles - At Cost

Construction in progress - At Cost

Total Property and Equipment

5,327,190

29,856 5,469,434

Accumulated Depreciation Leasehold improvements

(473,865)

(48,349)

161

( 522,053)

(367,185) (174,892) (641,304) (1,540,436) (15,380) (3,213,062)

(59,531) (27,299) (100,088) (104,373) (1,614)

833 1,206 72,519 1,166

(426,716) (201,358) ( 740,186) (1,572,290) (15,828) (3,478,431)

Buildings, constructions and improvements Information system equipment Building system equipment Furniture, fixtures and office equipment Vehicles Total Accumulated Depreciation

ROBINSON

167

ß∫°“√‡ß‘π

⌫

Financial Statements

⌫ $ &' $ + 96 8 ) *

' ⌫ " ⌫ ' ⌫

# & <⌦ $ 0 2,114,128

) * " 8 ) *

2,538,296

4,652,424

1,991,003 59,225

229,039

2,368,482 4,359,485

) ⌫ '0$ +⌫ ) ⌫ - ,- . $⌦ ! /012 /012

168

ROBINSON

⌫ ! ⌫ ! ⌫ ⌫ ⌫ ⌫! = .

69,538 (20,780) 191,242 240,000

) + + ) * " ! ⌫ ! ⌫ & & . ( = .

1,218,729 (576,955) 641,774

91,495 91,495

$ ) +'. ) &' ) + + 8

319,342

8,715

$ + 96 ) ) 1 8

221,731

3,801

69,538 (20,780) 191,242 240,000

303 303

1,309,921 (576,955) 732,966

328,057 867

224,665

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht Consolidated As at January 1, 2003 Property and Equipment - Net

2,114,128

Leasehold Rights - Net

2,538,296

Total

4,652,424

Movement During the Year Addition

Deduction

As at December 31, 2003

1,991,003 59,225

229,039

2,368,482 4,359,485

In Thousand Baht The Company Only As at January 1, 2003

Movement During the Year Addition

Deduction

As at December 31, 2003

Land Cost Less revaluation reduction Add revaluation increment Land - Net

69,538 (20,780) 191,242 240,000

Leasehold improvements Cost Less revaluation reduction Leasehold improvements - Net

1,218,729 (576,955) 641,774

91,495 91,495

319,342

8,715

221,731

3,801

303 303

1,309,921 (576,955) 732,966

Buildings, constructions and improvements - At Cost

328,057

Information system equipment - At Cost

867

224,665

ROBINSON

169

Ă&#x;â&#x2C6;ŤÂ°â&#x20AC;&#x153;â&#x2C6;&#x161;â&#x20AC;ĄĂ&#x;â&#x20AC;&#x2DC;Ď&#x20AC;

â&#x152;Ť

Financial Statements

'( 1 &$ # 9 â&#x152;Ť $ 0! ## â&#x152;Ť 1*# '4 0 5 1

770,300 (68,189) 702,111

45,695 45,695

1,397 1,397

814,598 (68,189) 746,409

1,262,777

46,905

70,199

1,239,483

. ,

11,300

1,498

849

11,949

& ,

82,444

53,004

124,491

10,957

" & '( ,

â&#x152;Ť$ 1*# '4

3,481,479

" * * 10 # &( 0 * 9# 0 * * 10 1*# '4 & + 1*# '4 0 & / 0 # 0 $ 0 1*# '4 " #0 ) & /

(463,772) (83,709) (150,265) (456,225) (1,113,506) (9,681) (2,277,158)

â&#x152;Ť '( ,

1,204,321

1,746,268

170

ROBINSON

' â&#x152;Ť " â&#x152;Ť ' â&#x152;Ť

# & <â&#x152;Ś $ 0

2,950,589

1,534,486

(44,323) (19,105) (22,299) (66,448) (79,273) (1,284)

161 762 1,153 70,129 849

(507,934) (102,814) (171,802) (521,520) (1,122,650) (10,116) (2,436,836) 1,097,650

59,225

191,329

1,614,164 2,711,814

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In Thousand Baht The Company Only As at January 1, 2003

Movement During the Year Addition

Deduction

As at December 31, 2003

Building system equipment Cost

770,300 (68,189) 702,111

45,695 45,695

1,397 1,397

814,598 (68,189) 746,409

1,262,777

46,905

70,199

1,239,483

Vehicles - At cost

11,300

1,498

849

11,949

Construction in progress - At Cost

82,444

53,004

124,491

10,957

Less revaluation reduction Building system equipment - Net

Furniture, fixtures and office equipment - At Cost

Total Property and Equipment

3,481,479

1,534,486

Accumulated Depreciation Leasehold improvements

Total Accumulated Depreciation

(463,772) (83,709) (150,265) (456,225) (1,113,506) (9,681) (2,277,158)

Property and Equipment - Net

1,204,321

Leasehold Rights - Net

1,746,268

Total

2,950,589

Buildings, constructions and improvements Information system equipment Building system equipment Furniture, fixtures and office equipment Vehicles

(44,323) (19,105) (22,299) (66,448) (79,273) (1,284)

161 (507,934) (102,814) 762 (171,802) 1,153 (521,520) 70,129 (1,122,650) 849 (10,116) (2,436,836) 1,097,650

59,225

191,329

1,614,164 2,711,814

ROBINSON

171

ß∫°“√‡ß‘π

Financial Statements

⌫

&$/ # ) ) 6 ) )%$* & ⌫$ 0 * 0 3⌦0 >⌦0 ⌫$ ⌫) 0 %$ (* 7)( 4 $08 ) )4% 1 & ⌫) / )& 1

# &( 0 )# $ 7$)@9* & @ ! ## * & $ 0# " 9 & <⌦ &*: !" &0 * ' 6 ,- B, - "$ )4 ⌫ ⌫ & %$ ⌦# ;(⌫% E ;(⌫ &# 1 ! ## ⌫ )4 E 7$) $0 8 ) $ < 0@9>/ 1 0 $1 &$/ > 1 ) ) )%$* & ⌫$ 0 $ 7$)@9* & 3⌦0 >⌦0 ⌫$ ⌫ ⌦# * & $ 0# ) # @ ! ## * & ⌫$ $ 0# " ) $ ;(⌫ &# 1 ! ## ⌫ )4 3⌦0 $0% 8 ) $ < 0@9>/ 1 $ 0 " # * & ⌫$ * 0 ⌫% & )* & # $0 1 ) $* & "# 1 * ' 3⌦ 0%$ ⌦#&*: (! ) # $"& 0 &$/ ) )%$* & # &( 0 $ 7$)@9* & 3⌦0 >⌦0 # &( ⌫ ⌦# * & $ 0# ) #7$)# ( #⌫ # %$ # &⌫ * ⌫) & ⌫) < ) $ ⌫ & 4# &0 $ $ $ ⌫ )%$ 7$) ( @ # 0 1 @ ! ## * & # &( $ 0# " ) $ ;(⌫ &# 1 ! ## ⌫ )4 3⌦0 $0% < 0 @9>/ 1 $ 0 6-2 " # * & # &( * 0 ⌫% & )* & # $0 1 ) $* & "# ;(⌫* ' B . -2 3⌦0 %$ ⌦#&*: (! ) # $"& 0 ) ) ⌫ ;; # &( # &! < 0 ⌫ $ ) 0& / $"& # 0 # &( $ 0# ⌫ ) & 0 . >⌦0 . *⌫

172

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

In September 1995, the Company and its subsidiaries appraised certain plots of land including the unused land presented under other non-current assets (Note 11), and certain leasehold rights to market prices by an independent appraiser. The excess of revalued amounts over costs of approximately Baht 827.6 million and Baht 1,751.5 million, respectively, have been presented as "Revaluation increment in assets" under Shareholders' Equity in the balance sheets.

In June 1999, the Company and its subsidiaries reappraised every parcel of land, by an independent appraiser, including all land stated at appraisal value mentioned in the above paragraph. As a result of the revaluation, the revaluation increment in assets presented under the shareholders' equity was reduced by Baht 355 million. For the revaluation of other plots of land (stated at cost since these had never been appraised), the revalued amount was lower than cost by Baht 52 million, which was charged to operations.

In December 1999, the Company and its subsidiaries reappraised each leasehold rights, by an independent appraiser using joint methodologies among Sales Comparison Approach (Market Approach), Discounted Cashflow Analysis and Income Capitalization Approach, including leasehold rights stated at appraisal value mentioned in the above. As a result of the revaluation, the revaluation increment in assets presented under the shareholders' equity was reduced by Baht 248.9 million. For the revaluation of other leasehold rights (stated at cost since these had never been appraised), the revalued amount was lower than cost by Baht 3,406.9 million, which was charged to operations.

The Company and subsidiaries have various leasehold agreements covering land and buildings for their department stores. The leasehold agreements are for the periods ranging from 20 to 30 years.

ROBINSON

173

ß∫°“√‡ß‘π

⌫

Financial Statements

223 - ). *⌫ * ; & ' ⌫ $⌫ ' ! ( ! ' '& ⌫ # . $ ! ! 1/ &⌫ /010% ⌫! ⌫ ! ( & + ( = & # ⌫ /;@ % # -<% 5 ⌫ ! ( !' = . . $ " # . $ ! ! 1,< % ! = . X

2546

2545

2546

2545

65,414 63,090

65,311 66,063

49,200 61,487

49,200 65,942

106,619

167,990

55,508

90,739

428,000 9,306

428,000 11,093

19,174 (9,027) 88,338 770,914

20,183 (10,381) 49,016 797,275

64,556 230,751

40,100 245,981

⌫ ! ⌫ ! ( & + ( $ " ⌦ ! ' & &9 '&

. & : ⌦ ' & ) -1/ ) ⌫ ,- . /012 /010 " ⌫ . ( &9 & ) @-=I <⌦ ! ( & + ( ! ⌦ 4 $ ! ! 9 '

243 ⌫ 00 " 1+ ⌫ - ⌫ -- ⌫ /010 " <⌫ #& : % ' ! #]IJ% <⌦ &9 " ⌦ ! ** & + ⌫ 5 & : ⌦ ' 3 ⌫ *(⌫ ! ⌫ $ ]IJ " ' & ) @0=0 3 $$ ** & + ⌫ ⌫ *(⌫ ! ⌫ $ ]IJ " ! 5 (' +! 174

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

11. OTHER NON-CURRENT ASSETS In Thousand Baht Consolidated

Restricted investments in fixed deposits Guarantees and deposits

2003

2002

65,414 63,090

The Company Only 2003

2002

65,311 66,063

49,200 61,487

49,200 65,942

106,619

167,990

55,508

90,739

428,000 9,306

428,000 11,093

19,174 (9,027) 88,338 770,914

20,183 (10,381) 49,016 797,275

64,556 230,751

Receivable from the Revenue Department (Net of loss on impairment of Baht 42 million for 2002) Unused land - at appraised value (revaluation increment of Baht 287 million) (Note 10) Unused fixed assets - net

Goodwill from business combination of subsidiary (net of loss on impairment of assets of Baht 430 million) Negative goodwill - net Others Total

40,100 245,981

Land not used in operations of a subsidiary has been mortgaged as collateral for long-term loan from a local bank amounting to approximately Baht 142 million. As at December 31, 2003 and 2002, the Company has leasehold right amounting to Baht 71.9 million which was not used and fully provided for impairment.

12. LIABILITIES UNDER DEBT RESTRUCTURING AGREEMENTS OF SUBSIDIARIES

On March 11, 2002, CR (Thailand) Co., Ltd. (CRT), a subsidiary, signed debt restructuring agreement with a local financial institution for overdrafts and related accrued interest expense of CRT and certain subsidiaries totalling approximately Baht 75.5 million. Under the terms of debt restructuring agreement, CRT's and the subsidiaries' overdrafts and related accrued interest expense would be settled as follows:

ROBINSON

175

ß∫°“√‡ß‘π

Financial Statements

⌫

# &0 $ #& ⌫) 0! )!" * ' 2- ! )(" 7$) < #" $&0/ %< ) & ⌫ 1% @ A/ A9#! # < 0 )& 1 < ⌫ &0 < 0 UJK ) ) / !" * ' 2- ⌫ ) & * $# (" / &0 &*: & *⌫ UJK # 0 ⌫! @ (" / &0 &*: )% H & H # 8 ) ) & *⌫ 7$)& (" / &0 0 $ # &$/ > 1 ) . 0 ⌫ ! 0(" $ #& ⌫)0 $ # ' 0 ;; * 7 0 0 ⌫ 7$)# (" $ #& ⌫) (" &*: )&$/ & 0 &$/ ⌫ 7$) ⌫ $ #& ⌫) & # ^RJ 8 ) &0/ %<< 0 ;; * 7 0 0 ⌫ UJK ) ) / $ 0# ! %$ # $ ⌫&0 & #&# ;(⌫ $ #& ⌫ ) 0! ) ⌫ ;; * 7 0 0 ⌫ ⌫@ 0 ( UJK ) ) / $ 0# ⌦#!" ⌫% $ # * $ ⌫&*: #"% ! ## * 7 0 0 ⌫!" * ' - 3⌦0 $0 &*: ⌦ 0< 0 E )# &+ < 0 ) )E 0 #"% < $ 1 0 #"% < $ 1 &? " *⌫ 1 $ ⌫ & / ⌫ 2 ⌫ UJK %$ 0 ;; * 7 0 0 ⌫ ⌫#? ⌦0 # > # &0 * & + 0 ⌦0 & / * 7 0 0 ⌫ ⌫ 0(" < 0 ) ) ⌫# 0 ⌦0 8 ⌫&0 & #&# ;(⌫ $ #& ⌫) 0! )&*: &0 * ' 6- 7$) ⌫< #" $ ⌫ " ; ;; * 7 0 0 ⌫$ 0# $ 0 %* ⌫ # &0 $ #& ⌫) 0! )!" * ' ,- ! )(" 7$) < #" $ &0/ %< ) & ⌫ 1% @ A/ A9#! # < 0 )& 1 < UJK %$ 7 & ⌫)# 0! # > # &0 8 ⌫ 0 ⌫ ) )$ 0# 0(" )9 # > # &0 * '

- 7$) UJK # 0(" # 7 & ⌫)# 0$ 0# # > # &0 &*: &0 * ' 3⌦0 $ 0# %$! )%* ' 0 ;; * 7 0 0 ⌫ # ⌫ UJK %$ " ;; #9)/ &0 # > # &0 7$)%$#9)/ &0 !" -, & / (" &*: $ 0# 0 ⌫ &0 ;; #9&0 ⌫ ) & * $# (" / &0 &*: & *⌫ 7$) UJK # 0 ⌫! @ (" / &*: )% % & H # 8 ) ) & *⌫ 7$)& (" / &0 0 $ # &$/ > 1 ) . & (" $ #& ⌫)0 $ # &$/ ⌫ $ #& ⌫) ;; #9 &0 $ 0# & # ^RJ 7$)& " ' 0 &$/ ⌫ &*: %* 0 ⌫ UJK 176

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

a) Principal and accrued interest expense amounting to approximately Baht 29.4 million would be paid by the Company according to the terms, conditions and period specified in the Company's rehabilitation plan (Note 13).

b) Principal debts owed by CRT and other subsidiaries amounting to approximately Baht 19.3 million had grace period for five (5) years. CRT agreed to repay principal in equal quarterly installments basis within 5 years with the first installment of principal commencing in June 2007 and to pay the first installment of interest on contract signing date. Interest expense on restructured principal is payable in monthly installments at MLR commencing in March 2002.

Under the terms of such debt restructuring agreement, liabilities of CRT and other subsidiaries which consisted of a portion of overdrafts and related accrued interest, were waived on the date that the debt restructuring agreement was effective. CRT and the subsidiaries recorded the amount being waived as gain on debt restructuring totalling approximately Baht 36.4 million which was presented as a portion of "Extraordinary Item of Subsidiaries" in the consolidated statements of income and the Company's statements of income for the year ended December 31, 2002.

On March 19, 2002, CRT signed another debt restructuring agreement with a local financial institution for the restructuring of outstanding debt of another subsidiary, which has been liable in respect of overdrafts and related accrued interest expense amounting to approximately Baht 18.5 million. Significant terms of such debt restructuring agreement are as follows:

a) Principal and accrued interest of approximately Baht 7.2 million would be paid by the Company in accordance with the terms, conditions and period specified in the Company's rehabilitation plan (Note 13).

b) The right to claim partial outstanding debt owed by such subsidiary had been assigned from the financial institution to CRT approximately Baht 11.3 million and CRT agreed to pay to the financial institution the consideration for such claim assignment approximately Baht 5 million. Such consideration has already been paid by CRT on the contract signing date.

CRT also entered into a loan agreement with such financial institution to borrow from the financial institution the amount of Baht 4.7 million for the payment of said amount of consideration. The principal under loan agreement had grace period of five (5) years. CRT agreed to repay the principal on the basis of equal quarterly installments within five (5) years, commencing in June 2007. The first installment of interest has been paid since March

ROBINSON

177

ß∫°“√‡ß‘π

Financial Statements

⌫

) )$ 0# ⌦# 0< 0!" &0 ⌫ 0! ) ;; * 7 0 0 ⌫ ⌫ "# ;(⌫< 0 ⌫&0 & #&# ;(⌫ $ #& ⌫) 0! )< 0 ) )$ 0# ' " ;; * 7 0 0 ⌫ &*: &0 * ' .- % &*: #"% ! ## * 7 0 0 ⌫ 3⌦0 $0&*: ⌦0 < 0 E )# &+ < 0 ) )E 0 #"% < $ 1 0 #"% < $ 1 &? " *⌫ 1$ ⌫

#! # ⌫ UJK 0*_ &0/ %< < !"# $ 0 H )* # ;; 0 H $ 0# < 0 &( # ;; ! % # &# $ ⌫ / $% 0 0 / 0 / 8 @9# # &! ⌫ ) $ / 1 $ H >⌦0# "* # !" 0 !" " )4 & &*: # $"& # &#⌫) # @ A/ A9#! # < 0

253 ! F"& F+ $ & / ⌫ . > 1 ) %$* # + )1$ #(" ⌫ 0# &0 ( & / & &! ! @ * 7 0 0 ⌫< 0 # #(" / &0 #9)/ $ #& ⌫) !&*: & 1 &! ⌫ > ( & ⌫)# / 0 < / &0 %$ ⌫ & / ⌫ V 8 + )# 0%$ ⌫ " 0 A/ A9#! # < 0 0 7 & 4 !"# $ &*: @9 " @ A/ A9#! # < 0 & / ⌫ . + %$ ⌫ " 0 & : ( @ A/ A9#! # < 0 0 0 7 & 4 !"# $ &*: @9 @ & / $"& 1 # ! < 0 ⌫ 1 @ A/ A9# !# 8 ) @ A/ A9$ 0# %$$"& # &0/ %< ⌫ 1% 3⌦ 0 ⌫ ) & ⌫)$$ 0 ⌫ # & / ⌫ > 1 ) %$$"& # !$ & ⌫) $ 1 !$ & ⌫) < 0 ⌫% $ " 0 % " 1 #9 * 0 8 ! # B6,.B...B... !" 1 ; 6,B...B... 1 9 1 . &*:

B 6.B66 B . !" 1 ; 6B.66B 1 9 1 . & / ⌫ > 1 ) %$$"& # !$ & ⌫) & 1 !$ & ⌫) < 0 ! # B 6.B66 B . !" 1 ;

6B.66B 1 9 1 . &*: B6.6B6 B .. !" 1 ; B 6.B66 B . 1 9 1 . < & / ⌫ 1 %$ # 1 #9 ⌫ #* # 0 ( $ ) ) / &0 * 0 8 %$ & / ⌫# @ $ $ &*: &0 !" B - & / ! $ # &! ⌫# &0 ⌫% ⌫ #* # ⌫ 1% 178

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

2002. The interest rate under the loan agreement is MLR which shall be calculated from March 2002 onwards. CRT and the subsidiary recorded the difference of the future payment amount according to the debt restructuring agreements which is lower than book value of the subsidiary's overdrafts and related accrued interest expense at the contractual date amounting to approximately Baht 10.1 million as gain on debt restructuring presenting as a portion of "Extraordinary Item of Subsidiaries" in the consolidated statements of income and the Company's statements of income for the year ended December 31, 2002.

In addition, CRT is required to comply with certain conditions and restrictions stipulated in the agreements mentioned above such as not directly or indirectly creating new loans or obligation with creditors or any other parties including asset guarantee, pledge, and mortgage, unless otherwise relating to the Company's rehabilitation plan.

13. REHABILITATION PLAN

On June 10, 1998, the Company temporarily suspended payments of its financial debts in conjunction with the commencement of a restructuring of its indebtedness. These suspensions constituted events of defaults, the occurrence of which enables lenders to declare their debt due and demand immediate repayment.

On May 2, 2000, the Central Bankruptcy Court ordered the Company to enter into business rehabilitation and appointed Robinson Planner Limited to be the plan preparer. On December 20, 2000, the Court approved the rehabilitation plan and appointed Robinson Planner Limited to be the plan administrator and to operate the business of the Company in accordance with the rehabilitation plan. Under the rehabilitation plan, the Company is required to comply with outlined conditions as follows:

(a) On June 13, 2001, the Company proceeded with the registration of decrease in the Company's registered share capital, which was reserved for convertible debentures from Baht 1,870,000,000 (ordinary share 187,000,000 shares at Baht 10 par value) to Baht 1,480,881,510 (ordinary share 148,088,151 shares at Baht 10 par value) and on June 15, 2001, the Company proceeded with the registration of increase of the Company's registered share capital from Baht 1,480,881,510 (ordinary share 148,088,151 shares at Baht 10 par value) to Baht 14,808,815,100 (ordinary share 1,480,881,510 shares at Baht 10 par value).

(b) On October 5, 2001, the Company issued the partially secured amortizing notes (convertible upon default) in the amount of Baht 3,614.5 million, for allocating to the unsecured financial creditors as described in the reha-

ROBINSON

179

ß∫°“√‡ß‘π

Financial Statements

⌫

@ A/ A9#! # < 0 &$/ 1 %$! $ #* # 0 # @ @9 9 >/ 1 #9 3⌦0 # "# &! ⌫# &0 ⌫% ⌫ #* # 3⌦0 &*: @9>/ 1 #9& ⌫ ># "%$ &0/ %< ⌫ 1% @ A/ A9#! # & # / ⌫& #⌫) < 0 & / ⌫ . 1 ⌫ V+! # ) %$! )(" ⌫ / 0 $ # # &! ⌫ ⌫% ⌫ #* # < 0 &*: !" &0 2 0 & / ⌫ . 1 %$ * 0 ⌫ % ⌫ #* # !" * ' B,,, &*: 1 ;!" * ' 666 1 3⌦0 &*: $ ) . < 0!" 1 0 $< 0 8 ) 0 # & 1 # & * 0 ⌫% ⌫ #* # &*: 1 $ 0# ⌫ * 0 ⌫&*: 1 1 3⌦0 " ⌫ "# 9 1 ;* ' ,B .6- 1 ; ⌫ # # &! ⌫# &0 ⌫% ⌫ #* # $ 0# !" * '

1 1 *( 3⌫ 43 ⌫ 3⌦0 &*: $ ) < 0!" 1 0 $< 0 8 ) 0# & 1 1 & ⌫%$ # < ) # 3⌫ 43⌫ &3: ⌫& 4* & ( !"# $ W / 1 ⌫% $ )! # &3: ⌫& 4* & ( !"# $ &0/ %< & ⌫ 1% @ &$/ & ) ! & / ⌫ . 1 %$ # 1 ;!" * ' ,. 1 3⌦0 &*: $ ) < 0!" 1 0 $< 0 8 ) 0# & 1 # 3⌫ 43⌫ 1 & / # 1 < 03⌫ 43⌫ 1 .-... 3⌦ 0 " ⌫ "# 9 1 ;& <⌦ * ' B,. - 1 & / # 1 < 03⌫ 43⌫$ 0# ! %$ # 7 # &! ⌫# &0 ⌫ % ⌫ #* # ) 0 ⌫&0/ %< 3⌦0 #* # ! &*: @9>/ 1 % ! ⌫# * $# 7 ) 0 ⌫&0/ %< 0 1 3⌫ 43⌫ $ < 0# ! )(" / &0 $ #& ⌫) 0 $ #! # ⌫ & / ⌫ . 1 %$ # 1 ; ⌫#!" * ' , 1 3⌦0 &*: $ ) < 0 1 0 $< 0 8 ) 0# & 1 # 1 &? # ! ⌫! $ 0<⌦ 7$)# 1 @9 < 0 1 & : % 7 ⌫ 1 .-... 3⌦0 " ⌫ "# 9 1 ;!" * ' , .- 1 & ⌫! %$ # 7 # &! ⌫# &0 ⌫% ⌫ #* # ) 0 ⌫&0/ %< 3⌦0 #* # ! &*: @9>/ 1 % # 7 ) 0 ⌫&0/ %< # $9 < 0 #* # ! %$ # ) )* $ 8 ) ) & *⌫ !" 1 ⌫@ 9 ⌫ %$ &0/ %< ⌫# " $% @ A/ A9#! # < 0 & / &*: # # # 1 ; # 3⌫ 43⌫ 1 &? # ! ⌫! $ 0<⌦ 7$)# 1 @9 < 0 $ 0# 3⌫ 43⌫ @9 < 0 ! $"& # # 1 ) 0 & / 0 # $"& 1 # !< 0 180

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

bilitation plan of the Company, and in October 2001, the Company has provided, to the extent possible, the Noteholders' representative, acting on behalf of the unsecured financial creditors who are the Noteholders, the securities for the issuance of such Notes in accordance with the conditions stipulated in the rehabilitation plan and other related documents.

(c) On October 10, 2001, and November 13, 2001, the Company made initial repayments to the unsecured financial creditors of the Company in the amount of totalling Baht 956 million.

(d) On October 30, 2002, the Company converted unsecured debt approximately Baht 1,777 million into approximately 888 million ordinary shares, representing 60% of the enlarged total share capital of the Company. The conversion of unsecured debt into ordinary share was made at the rate of Baht 2 per share, resulting to discount on share capital of approximately Baht 7,108.2 million. The ordinary shares issued to the unsecured financial creditors, approximately 311 million ordinary shares (CRC Option Shares), representing 21% of the enlarged total share capital of the Company sold to CRC (Central Retail Corporation Ltd. and an its designee) in line with conditions and time indicated in the Company's rehabilitation plan in April 2003.

(e) On October 30, 2002, the Company issued approximately 370 million ordinary shares, representing 25% of the enlarged total share capital of the Company to CRC (CRC Support Shares) at Baht 0.0001 per share resulting to increase in discount on share capital of approximately Baht 3,702.2 million. The CRC support shares would be conditionally assigned to the unsecured financial creditors. The Security Agent will hold the share certificates. The condition assignment will be released and the share certificates will be released to CRC pro rata to the total repayments of principal and interest.

In addition, on October 30, 2002, the Company issued approximately 74 million ordinary shares, representing 5% of the enlarged total share capital of the Company, to a Special Purpose Vehicle, owned by the management of the Company (MIOP Shares) at Baht 0.0001 per share resulting to increase in discount on share capital of approximately Baht 740.4 million. These shares would be conditionally assigned to the unsecured financial creditors. The Security Agent would hold the share certificates. To the extent these shares are earned by management, the conditional assignment, and custody of the Security Agent will be released within 5 years. In consideration for the issuance of new ordinary shares to CRC and the Special Purpose Vehicle, CRC and the Company's management undertake to provide their continuous support for the Company.

ROBINSON

181

ß∫°“√‡ß‘π

Financial Statements

⌫

? & / ⌫ 6 V+! # ) %$$"& # !$ & ⌫) $ 1 < 0 ! # B6.6B6 B .. !" 1 ; B 6.B66 B . 1 9 1 . &*:

B . B

B . !" 1 ;

.B B 1 9 1 . 7$) ⌫ >1* 0 4& / $) $< $ 1 < 0 ⌫# " $% @ A/ A9# !# ( & / ⌫ 6 V+! # ) %$ # * $ ⌫ ⌫ & / ! #&! ⌫% ⌫ #* # 3⌦ 0&*: %* &0/ %<< 0 @ A/ A9#! # < 0 ⌦# 0< 0!" @ 0 < 0 1 #9 ⌫ #* # 0 ( $ ) ) / &0 $ #& ⌫) ⌫& #⌫) < 0 &0 ! )(" ⌫ / 0 $ # 1 ; ⌫ # # &! ⌫ & / (" ⌫ ⌫ "# ;(⌫< 0 ⌫ ⌫ )9 8 ) @ A/ A9# !# < 0 &*: #"% ! ## * 7 0 0 ⌫ !" * ' B, ,-6 3⌦ 0 $0&*: ⌦ 0 < 0 E )# & + E 0 #"% < $ 1 0 #"% < $ 1 &? " *⌫ 1 $ ⌫ 3 0% ⌫ < 0*⌫ ) ) 0 ⌦ 0 " ;; * 7 0 0 ⌫# > # &0 * & + 0 ⌦0 & / (" ⌫< 0 C @9 "* # !" 2- ⌫ $ 0# ⌫ $ #& ⌫)& # ^RJ ⌫#" $ ) & (" / ⌫ # 3⌦0 > # &0 %$ ⌫# " ⌦# #%<& & ;; * 7 0 0 ⌫& / <) ) ) & (" ⌫ #%* ⌫#&*: ⌫ # #X ) 0% #: ) )% >(" ⌫$ 0# %$8 ) #" $ $ 0 ⌫ # ) ) > # &0 %$ ⌫ ⌦#< # 0 #%<& & ;; # * * 107 0 0 ⌫& / <) ) ) & # (" ⌫ #%* ⌫#! >⌦0 ⌫ & ) , 7$)) 0 0! )(" $ #& ⌫) ^RJ %* &$ ) ) $0 ⌫ $ 0# &*: E ⌫ 8 ) ;; "* # E 8 ) ⌫ 1 & ⌫) 0 $1 ⌫ "# 9 1 0 $ ⌫& # $<⌦ ! ## * 7 0 0 ⌫ ⌫# < 0 &*: &0

B .-6 ⌫ &# 9 1 !" &0 -

182

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

(f) On November 8, 2002, the Company proceeded with the registration of decrease in the Company's capital from Baht 14,808,815,100 (ordinary share 1,480,881,510 shares at Baht 10 par value) to Baht 11,106,611,330 (ordinary share 1,110,611,133 shares at Baht 10 par value). The purpose of the capital reduction is to reduce the Company's deficit as stipulated in the rehabilitation plan.

(g) On November 8, 2002, the portion of debt remaining was forgiven by the unsecured financial creditors in line with the condition stipulated in the Company's rehabilitation plan. The Company recorded the difference of the total of the partially secured amortizing notes and related interest, the amount of initial repayment and the ordinary shares issued to creditors, which is lower than book value of debt under the Company's rehabilitation plan, as gain on debt restructuring totalling approximately Baht 14,747.8 million presenting as a portion of "Extraordinary Item" in the consolidated statement of income and the Company's statement of income for the year ended December 31, 2002.

(h) During the third quarter of 2002, a subsidiary had entered into a debt restructuring agreement with a local financial institution to settle the Company's debt as a guarantor, of Baht 159.2 million. Such liability bears interest at the rate of MLR and has to be repaid on January 1, 2003. The financial institution subsequently made a memorandum for amendment of debt restructuring relating to the repayment extension to July 1, 2003. However, the subsidiary could not pay this debt as scheduled. On September 15, 2003, the financial institution subsequently made a memorandum for amendment of debt restructuring relating to the repayment extension of repayment until April 1, 2004 with interest rate at MLR. The subsidiary presented the liability as "Liability under guarantee agreement" under current liabilities in the balance sheets.

The Company had the discount on share capital incurred from the debt restructuring as discussed above totalling approximately Baht 11,550.8 million and the premium on share capital totalling approximately Baht 631.1 million.

ROBINSON

183

ß∫°“√‡ß‘π

⌫

Financial Statements

273 & + & ⌫ " & 6 . & " ⌫ ! ) $&0 $ #& ⌫) # ⌫ #" $(" 8 ) ⌦0 *⌫ 1

2546

2545

2546

2545

2,473,273 735,826 3,209,099 (372,722) 2,836,377

2,800,942 900,959 3,701,901 (372,240) 3,329,661

2,484,595 735,826 3,220,421 (372,722) 2,847,699

2,813,765 900,959 3,714,724 (372,240) 3,342,484

& / ⌫ 1 %$ # 1 #9 ⌫ #* # 0 ( $ ) ) / &0 * 0 8 %$& / ⌫# @ $ $ !" B - & / &*: %* @ A/ A9#! # < 0 )& 1 1 #9 ⌫ ⌫ $ #& ⌫) ⌫ #" $% < #" $ 3⌦ 0%$ )9 !" ⌫ ⌫ ! ! ) 0(" &0 $ #& ⌫)7$) ) )! )(" / !" & ⌫# " $% < #" $ ! >⌦0 #" $(" / 0 $ 3⌦0 )>⌦0 ⌫ 6 / $H 3⌦0 1 #9 0 $%$>9#%> > ! W / >9# * 0 8 &*: 1 < 0 $! &# $# @9>/ 1 #9 > ( * 0 8 1 #9&*: 1 < 0 & $#:%$3⌦0 0% )# "# 0! #&# $& 1@$ $ 7$)!" 1 ⌫! # # * 0 8 < 0 1 #9! #" $<⌦ 7$)# !" < 0) $&0 0 $< 0 1 #9 ⌫! * 0 8 $ #& ⌫) ⌫> 0⌦ #" $ " '! >⌦0 ⌫> 0⌦ #" $(" !" &0 < 0# ! )&0 7 $ ) ⌫ * 0 8 ' ⌫ * 0 8 3⌦ 0& # $ ⌫ * 0 8 @9 >/ 1 #9 ! ⌫ &+ #" $ @9>/ 1 #9 0 $ 0 * 0 8 1 #9 &*: 1 ⌫@ >/9 1 #9 )>/ )9 8 ) < #" $ # * 0 8 0 0 ⌫ ⌫ %> > 1 #9 / # #" $%$ &0/ %< ⌫ 1% < #" $ ) )!" 0 !" " ⌫ $ 1*# '4 $! 1 < 0 ) ) 3⌦0 ⌫ 9 ;(⌫ 1 ' ⌫ &*: &0 * ' B. 2-6

B2.2-, "$ & / &*: #* # # # 1 #9 ⌫ ⌦# 1 #9 ⌫ #* # 0 ( $ ) ) / &0 * 0 8 %$& / ⌫# @ $ $ ⌫ #" $ (" 8 ) ⌦0 *⌫ % &*: ⌦0 < 0 ⌫ 1 & ⌫) 0 $1 184

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

14. PARTIALLY SECURED AMORTIZING NOTES (CONVERTIBLE UPON DEFAULT) In Thousand Baht Consolidated 2003 Principal amount Interest Total Less portion due within one year Net

2002

The Company Only 2003

2,473,273 2,800,942 2,484,595 735,826 900,959 735,826 3,209,099 3,701,901 3,220,421 (372,722) (372,240) (372,722) 2,836,377 3,329,661 2,847,699

2002

2,813,765 900,959 3,714,724 (372,240) 3,342,484

On October 5, 2001, the Company issued partially secured amortizing notes (convertible upon default) totalling Baht 3,614.5 million pursuant to the rehabilitation plan of the Company. (Note 13)

The notes bear interest at the rate specified in the Terms and Conditions and included as part of future payable amounts. The Company shall make an amortized repayment of interest together with principal amount and times specified in the Terms and Conditions through maturity date, which means the earliest of December 31, 2005 or the date when all of the Notes have been fully redeemed and/or converted into shares of the Company. The conversion right attaching to a note may be exercised, at the option of the holder thereof, at any time and not less than 15 business days following the occurrence of an event of default. The number of shares to be issued on conversion of a note will be determined by dividing the aggregate of the principal amount of the notes to be converted and interest due to the maturity date and the bonus payment by the conversion price in effect at the conversion date, which means the market price as at the conversion date. The Noteholders may by a special resolution direct that all Noteholders shall convert their notes into shares on a pro rata basis in accordance with Terms and Conditions (Mandatory Conversion). Nevertheless, the Company has the right to make early redemption according to the Terms and Conditions.

The Company and subsidiaries mortgage and pledge property and equipment including shares of subsidiaries and associated companies with net book value as at December 31, 2003 and 2002 approximately Baht and 2,029.8 million and Baht 1,909.7 million, respectively, as collaterals for the issuance of these notes.

The Company presented the portion due within one year of partially secured amortizing notes (convertible upon default) under current liabilities in the balance sheets.

ROBINSON

185

ß∫°“√‡ß‘π

Financial Statements

⌫

283 > B"& " & +& > %$ / & / 0! ## ⌫ %$! $ ⌫7 0# 3/ / 1 #9# #" $%> > ! #@9>/ 1 #97$) ! `ab5 cPdMLe Ufgd JfhOPMPif jLaQLMk / E ⌫$ ⌫ 4 E⌫ & / $ & ⌫) 0! ## (" ⌫&0 $ #& ⌫) ' #" $%> > 0 1$ ) *⌫ 6 3⌦0 # $"& 7 0# $ 0# !"&*: 0! $ ⌫ # #%< @ A/ A9# !# ? 0 ⌫ V+! # ) & / 0 # 3/ / 1 #9 7$)&! #0 # 4 )4%$& ⌫)#* (1 &! ⌫& / ! ' 0 < & #%< @ $ 0# & / ⌫ V+! # ) @ * #X ⌫* (1 &! ⌫%$ ⌫ & + ( ;; )) < & #%< @ < 0 #! ## 0 < 0 ⌫* (1 &! ⌫ #X ) ) @9 @9>/ 1 #9%$& ⌫)#* (1 @9>/ 1 #9 #&#'W4 ⌫ 1 < #" $ < 0 1 #9 ⌫ V+! # ) & / < #" $ < 0 1 #9 3⌦ 0 # &0/ %< < #" $< 0 @ A/ A9# !# ⌫ $ 0# @ A/ A9# !# ? # %< ⌫* (1 @9>/ 1 #9%$ 0 &*: & #? 4 1 # #%<< #" $ < 0 1 #9 & / ⌫ 2 + )# 0%$ ⌫ " 0& : ( $ ) @ ? ⌫ # %< &+ < 0 ⌫ * (1 &! ⌫ 3⌦ 0 " @ A/ A9# !# < #" $ ⌫ #%< & ⌫@ 0 ( >& $"& # 7 0# %$ %$& 7 0# ⌫$ ⌫ 4 ⌫ &$/ # , 7$)%$! $ 7 & - ⌫- ⌫- !"# $ E& ⌫ E⌫ 3⌦0 &*: ) )< 0 &< 0 ;; #9&0 # 8 ) * & + 0 0& / ⌫ # , * &8 0&0 #9 ) ) 0&0 % &# B,.. #" $ $ # #9 0 B . $ #& ⌫)&0 #9)/ < "< 0 9# ( $⌫ ^RJ &? ⌫ )< 0 @9 #9 0 0 0 ) -, *⌫ / ) *⌫ $! 90# 7$) ;; $ 0# # & ⌫ ⌫ ! ⌫ & #> &0 #9 & / " 3/ / 1 #9 7 0# ⌫$ ⌫ 4 %⌫ $ 0 ⌫ # , >⌦0 ⌫ . 6 & ⌫ %⌫ $ #" $ ) & @9>/ 1 #9 ⌫* 0 4! < ) 1 #9)/ & # KfPNfL lhhfL jfLOaN # # 3/ 0 ⌫ # >⌦0 # , %$#" $ & 3/ 1 #9% ⌫ )

-. 0 ⌫ 4< 0 1 #9 / .. ) <' ⌫ #9 1 ⌫ ;(⌫ 6 ) ⌫ # , * #_ ⌫&! ⌫ $0 * 0 4&< 7 0# !" ) -6 < 0!" &0 0 0 0 $ / &*: !" 6B. 6B2 ) < 0&0 ⌫ ( # 3/ 1 #9 / ⌫ 09 # 4< 0 1 #9 ! %$ # ($&()8 ) *⌫ 6 $ )@ 0< 0 $ #& ⌫)&0 #9< 0 ) ) ⌫ ⌫ ⌫ " # $ #& ⌫) < 0 1 #9 ⌫ ! %$ # ⌫ ) )! %$ 7 &+ ⌫ 1 < #" $ < 0 1 #9 0 &$/ # &$/ #1 8 4 , & ⌫ %⌫ $& & #> &0 #9 (" 1 #9 # @>/9 1 #9 ⌫ 7 0# 7$) ⌫# !" " 1 #9 ⌫ 3/ &*: #* # # 186

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

15. THE VOLUNTARY DEBT REFINANCE PROGRAM

Due to the Voluntary Debt Refinance Program (" VDRP") launched by the Company to reduce the refinancing risk upon the maturity of the Notes in 2005, in order for the VDRP can be implemented the Company then has to amend the rehabilitation plan dated November 14, 2000 to accommodate the repurchase of the Notes. Therefore, the statutory creditors' meeting was held on November 5, 2003 by Official Receiver in order to consider and vote for the plan amendment proposal. Accordingly, the plan amendment proposal was approved by special resolution of the creditors' meeting according to the Bankruptcy Act.

Further from the creditor meeting pursuant to the Bankruptcy Act, the Noteholders' Representative called the Noteholders meeting according to the term and condition of the Note on 5th November 2003 for the Noteholders to consider and vote on the proposal to amend the terms and conditions of the Note for consistency between the terms and conditions of the Note and the reorganization plan as amended. The resolution of the meeting unanimously resolved to approve such amendment proposal. On December 29, 2003 the Central Bankruptcy Court approved the plan amendment as approved by the creditors' meeting . As a consequence, the plan amendment and the term and conditions amendment have been effective and thus, the Company is able to proceed further implementing the program.

In January 2004, the Company has started implementing the VDRP program by having Robinson S.P.V. Ltd. ("SPV"), the Company's subsidiary, signed the long-term loan agreements with 2 local banks on January 16, 2004 with credit line not exceeding Baht 2,700 million, Baht 1,350 million from each bank , at the interest rate of average minimum lending rate of lending banks (MLR) minus 1.75% per annum or 4% per annum, which ever is higher. The proceeds drawn down under the agreements shall be used by SPV to repurchase the Notes pursuant to VDRP during the period from January 16, 2004 to December 30, 2005. Consequently, the Company and SPV have scheduled tender offer period during January 16 to January 26, 2004 for Noteholders to submit the tender documents to the tender agent and the offer price was set at Baht 115.01 per unit. The par value of the Note is Baht 100, while the Note's book value is Baht 128 on January 15, 2004. Accordingly, 35.84% of the total outstanding principal of the Notes or 8,068,944 units were tendered. The premium over par value paid by the subsidiary for the repurchased Notes will be compensated within year 2005 by the difference between the subsidiary's loan rate and the coupon rate of the Note to be received by subsidiary, which is lower than the loan rate, and the bonus payment to be received by subsidiary according to the Terms & Conditions of the Notes. During January and February 2004, SPV has commenced the drawdown of the loan for payment to the Noteholders, who tendered their Notes, and pledged repurchased Notes with the lending banks as collateral for the loans.

ROBINSON

187

ß∫°“√‡ß‘π

⌫

Financial Statements

293 G $ ! #

( ;; ( !"# $ -+- 0! $ #"% 1 * !"*⌫&*: 1 " 0% )# ) < 0#"% 1 * !"*⌫ 0! # #< $ 1 )# > ⌫ 1# 0 ⌫* # +! )&0 * @ % &*: " 0 #X )! # 1 " 0$ 0# ! ⌫!" % )# ) . < 0 1 !$ & ⌫) 1 " 0 ⌫ % ! "%*! )&*: &0 * @ %$ # * (1 ;@9>/ 1 < 0 3⌫ 4 89&#: * & +% ) !"# $ 3⌦0 &*: ) ) * & + 0 ⌦0 & / ⌫ & ) @9>/ 1 < 0 ) )$ 0# %$ 1 ! )&0 * @ ! ##"% ' ⌫

1 . " 1 ;!" B,,.B... 1 &*: &0 * @ ! ) 0 ,.B6..B... ! $ #"% % &*: &0 0 1 " 0 #X ) ) < 0#"% 1 * !"*⌫ &*: !" B, 2B,6 & / ⌫ & ) ⌫ * (1 ;@9 >/ 1 < 0 ) ) $ 0# %$ 1 ! )&0 * @ ! ##"% 1 " *⌫ 1 6- " 1 ;!"

B,,.B... 1 &*: &0 * @ ! ) 0 ,B2 6B... ! $ #"% % &*: &0 1 " 0 #X ) ) < 0#"% 1 * !"*⌫&*: !" B6. B.2,

2A3 & "

)%$ '9*78 )%$! ## 7m ' * ( 4 )%$! ## 0 0 )%$ & ⌫) ) )%$& :$& :$

2546

2545

2546

2545

167,119 45,060 5,974 7,398 157,706 383,257

161,020 44,442 1,346 7,290 84,817 298,915

106,599 44,747 89,344 5,359 140,517 386,566

101,757 46,978 84,324 5,292 68,930 307,281

;C< 6 ⌫ & % ⌫ (! )8 ⌫&0 %$ " *⌫ 1 $ ⌫ & / 0! # (* 7)( 4! #@ < $ 1 08 ⌫)# ! #*⌫# 188

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

16. LEGAL RESERVE AND DIVIDEND DISTRIBUTION OF SUBSIDIARY

Under the Public Limited Companies Act B.E. 2535, the Company is required to appropriate at least 5% of its annual net income after deduction of the deficit brought forward (if any) at each dividend declaration as reserve fund until the reserve not less than 10% of the registered capital. The reserve is not available for dividend distribution.

At the ordinary shareholder's meeting of CR Phuket (Thailand) Co., Ltd., a local subsidiary, held on April 24, 2003, the shareholders of the subsidiary approved the distribution of dividends from the retained earnings as at December 31, 2001, at Baht 40 per share for 1,770,000 common shares, totalling Baht 70,800,000 and made an appropriation for legal reserve at the rate of 5% of annual net income amounting to Baht 2,729,782. On April 25, 2003, the ordinary shareholders' meeting of the subsidiary approved the distribution of dividends from net income for the year 2002 at Baht 38.4 per share for 1,770,000 common shares, totalling Baht 67,968,000 and made an appropriation for legal reserve at the rate of 5% of annual net income amounting to Baht 2,801,097.

17. OTHER INCOME

In Thousand Baht Consolidated 2003

Utilities income Promotion and advertising income Management fee income Income sharing and trade commissions Miscellaneous income Total

167,119 45,060 5,974 7,398 157,706 383,257

The Company Only

2002

2003

161,020 44,442 1,346 7,290 84,817 298,915

106,599 44,747 89,344 5,359 140,517 386,566

2002

101,757 46,978 84,324 5,292 68,930 307,281

18. INCOME TAX

No income tax expense for the year ended December 31, 2003 because of the utilization of tax loss carry forwards.

ROBINSON

189

ß∫°“√‡ß‘π

⌫

Financial Statements

2:3 " " ' ⌫ ) )% ⌫ 7) ) ⌫! * # 1 # 0# &0 ⌫ &*: 1 4& / # &#:0#"% / & / # ⌫ & 6 . & ⌫) 0$ 8 0&# $! # )10 ) # # $ 1 & ⌫)0 & # *_ 8 @9# ⌫# " $ % & / 0 / 0# &0 @9 &(/ * !!1 ) )% ⌫ & ⌫) 0$ 0# ⌫ $ ⌫&

' ⌫ ) ) ⌫ & ⌫) 0 ⌫ 9 < 0& / 0 / 0 # &0 ! &* ⌫) * 0%*& / 0! ## &* ⌫) * 0< 0 $ #& ⌫) $ $ 0 ⌫ 4879

⌫ ⌫ ⌫ ⌦ ⌦ ⌫ ⌫ ⌫ ⌫

. ( &0 D # > # &0 1,310,401 &0 D #* !" ⌫ <⌫ !"# $ # ( 65,414

⌫& ⌫ 8 ) ;; "* # < 0 ) ) &0 #9)/ ) &0 $ 0 ! ## !# ⌫& #⌫) < 0#

190

ROBINSON

⌫ ⌫ ⌦ ⌫

1,310,401 0.25 65,414 0.75-1.00

159,193

MLR

17,465

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

19. FINANCIAL INSTRUMENTS

As at December 31, 2003 and 2002, the Company and subsidiaries did not speculate in or engage in the trading of any derivative financial instruments.

Liquidity Risk

Liquidity risk arises from the problem in raising fund adequately and in time to meet commitment as indicated in the financial instruments. The management believes that the Company and subsidiaries have no such risk.

Interest Rate Risk

As at December 31, 2003 and 2002, the Company and subsidiaries had risk from the changing value of financial instruments, from changing market interest rates as follows:

2003 Consolidated In Thousand Baht Floating Fixed interest rate maturing in:

Average interest rate

interest

1 year or

Over 1 to More than

rate

less

1,310,401 65,414

159,193

MLR

17,465

5 Years

Total

Floating

Fixed

Financial assets Cash at financial institutions Restricted investments

1,310,401 0.25 65,414 0.75-1.00

in fixed deposits

Financial liabilities Liabilities under guarantee agreement of subsidiary Short - term loans and advances from related parties

ROBINSON

191

ß∫°“√‡ß‘π

# ⌫ $% & # '()* '()(

Financial Statements

⌫ ⌫ ⌫ ⌦ ⌦ ⌫ ⌫ ⌫ ⌫

" 322,413 . A 5 . . A ⌫ -⌫ + + 49,200 . + 4 0 .

5,782,580 . + 4 0 # ⌫ . ⌫ #- ⌫ . 4 0 .

⌫. ⌫ #- . 4 0 #

1,047,471 -

61,223 61,223

- 1,047,471 113,300 113,300

⌫ ⌫ 8 + // - . 4 0 .

⌫. ⌫ #- 192

ROBINSON

322,413 49,200

0.25 1.00

5,782,580 MOR+1.5

⌫ ⌫ ⌫ ⌦ ⌦ ⌫ ⌫ ⌫ ⌫

. A 5 . . A ⌫ -⌫ + +

⌫ ⌫ ⌦ ⌫

2.75 -

⌫ ⌫ ⌦ ⌫

649,821 65,311

0.25-0.5 0.50-1.0

159,193

MLR

12,759

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

The Company Only In Thousand Baht Floating Fixed interest rate maturing in: interest

1 year or

rate

less

Average interest rate

Over 1 to More than 5 Years

5 Years

Total

Floating

Fixed

0.25 1.00

Financial assets Cash at financial institutions Restricted investment

322,413 49,200

5,782,580

61,223 61,223

- 1,047,471 113,300 113,300

in fixed deposits Short-term loans and

5,782,580 MOR+1.5

advances to subsidiaries Long - term loans to related parties

2.75 -

Financial liabilities Short - term loans and advances from related parties Long-term loan from subsidiary

1,047,471 -

2002 Consolidated In Thousand Baht Floating Fixed interest rate maturing in: interest

1 year or

rate

less

Average interest rate

Over 1 to More than 5 Years

5 Years

Total

Floating

Fixed

Financial assets Cash at financial institutions Restricted investment

649,821 65,311

0.25-0.5 0.50-1.0

159,193

MLR

12,759

in fixed deposits

Financial liabilities Liabilities under guarantee agreement of subsidiary Short - term loans and advances from related parties

ROBINSON

193

ß∫°“√‡ß‘π

⌫

Financial Statements

⌫ ⌫ ⌫ ⌦ ⌦ ⌫ ⌫ ⌫ ⌫

598,846 . A 5 . . A ⌫ -⌫ + + 49,200 . + 4 0 .

5,063,902 . + 4 0 # ⌫ . ⌫ #- ⌫ . 4 0 . 1,036,628 ⌫. ⌫ #- . 4 0 #

⌫ ⌫ ⌦ ⌫

598,846 0.25-0.5 49,200 1

5,063,902 MOR+1.5

61,223

- 1,036,628 113,000 113,000

2.75 -

⌫ ! "# # . ⌫ + . 0 . ⌫ 4 / / , 5 0 , 7 Y - ⌫+ ,# A . 0 # , ⌫ # . ⌫ + . 0 . @ / . 0 4 , - # + / . @ - . , @ ⌫ # . ⌫ . 0 + + " 4 0 . ⌫ , + " 7⌦ 6 .30 ⌫ 4/. # . ⌫ # . ⌫ . @ . , , $% . 0 0 . ⌫ + . &" + ,# # , ⌦ ,# + " . 0 # ⌫ . 0 # 5 # . 4 " & 0 # . ⌫+ . ⌫ 7 0 ⌫ # " ⌫ ⌫ # 4 . @ + ⌫ . ⌫ ⌫ ⌫ . @ , ⌫ # . ⌫ #- 194

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

The Company Only In Thousand Baht Floating Fixed interest rate maturing in: interest

1 year or

rate

less

Average interest rate

Over 1 to More than 5 Years

5 Years

Total

Floating

Fixed

Financial assets Cash at financial institutions Restricted investment

598,846 49,200

598,846 0.25-0.5 49,200 1

5,063,902

5,063,902 MOR+1.5

61,223

in fixed deposits Short-term loans and advances to subsidiaries Long-term loans to related parties

61,223

2.75 -

Financial liabilities Short-term loans and advance from related parties Long-term loan from subsidiary

1,036,628 -

- 1,036,628 113,000 113,000

Credit Risk

Credit risk is the risk that a counterparty is unable or unwilling to meet a commitment that they entered into with the Company and subsidiaries. The management believes that the Company and subsidiaries do not face any significant credit risks due mainly to recognition of revenue is from cash sales. However, the Company and subsidiaries still face credit risk from loans granted and accrued income from the companies in the group, which the Company and subsidiaries has considered to set up allowance to cover the estimated losses.

Fair Value of Financial Instruments

Financial instruments held to maturity in the normal course of business are recorded at cost or redemption amount as appropriate.

Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm's length transaction.

ROBINSON

195

ß∫°“√‡ß‘π

Financial Statements

⌫

) ) ( ⌫# < C # * ' 9 )1 < 0& / 0 / 0# &0 $ 0 ⌫ 5 )4 0# &0 ⌫! $ * &8 &*: )4 1 & ⌫) &! ⌫ Z &0 ! )# 9 ⌫* #X 0 $1 ⌫!" # & ⌫)0# 9 )1 & / 0! # ⌫#" $# (" / ! )(" ) & 5 &0 0 1 ) ) ⌫ ⌫ )98 ) @ A/ A9#! # & / 0! #% > " ' 9 )1 < 0&0 0 1 ) ) ⌫ ⌫ )9 8 ) @ A/ A9# !# %$ ) 0& !⌦0% #⌫ &* $&@) 5 &0 #9)/ &0 #9)/ # #! # ⌫& #⌫) < 0# 9 )1 >/ ⌫ $0 0 $1 & / 0! #$ #& ⌫ )< 0 0# &0 # & ⌫)0# # $ #& ⌫) $ 5 1 #9 ⌫ #* # 0 ( $ ) ) / &0 * 0 8 %$& / ⌫# @ $ $ 9 )1 < 0 1 #9 ⌫ #* # 0 ( $ ) ) / &0 * 0 8 %$& / ⌫# @ $ $ * '# 7$) ( #⌫ $# &0 $7$) ( $ #& ⌫) $* !!1 )1 #9 1 0& / ' ⌫ 9 )1 $ 0# ⌫!" * ' B62.- B

2- "$

⌫ ⌫ %$! $ 0# 0 1 " 0& ⌫)0(⌫ #0 ( ;; # 0 1 " 0& ⌫)0(⌫ -+- . &< &*: # 0 1 !$ & ⌫) 7$)%$ 1 ! # " #0 ' # # #"# # )4 $ # )4 & ⌫) # 0 1 ! ) &< # 0 1 ⌫& # ⌫ #0 ! ) 3⌦0 " ' ) < 0&0 &$/ #0 %$ 0 0@9! $# # 0 1 & / # 0 1 &*: %* ⌫# &0/ %< ⌫ #" $7$)#X# 0 ? ⌫ -+- # ( ;; # 0 1 " 0& ⌫)0(⌫ -+- .

196

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

The Company and subsidiaries use the following methods and assumptions in estimate the fair values of financial instruments.

- Financial assets classified as current assets and accounts and notes payable - trade

The carrying amount approximates fair value because of the short period to maturity of those instruments.

- Long-term investments and liabilities under rehabilitation plan

Due to the fair value of long-term investment and liabilities under rehabilitation plan cannot be properly calculated, no disclosure is made.

- Loans from and loan to related parties

The fair value approximates carrying amounts stated in the balance sheets, since interest on financial instruments approximates market rates.

- Partially secured amortizing notes (Convertible upon default)

The fair value of partially secured amortizing notes (convertible upon default) are estimated using a discounted cash flow method based on the current market rate and the remaining period to maturity. As at December 31, 2003 and 2002, the fair value was of approximately Baht 2,890.2 million and Baht 3,119.4 million.

20. EMPLOYEE REGISTERED PROVIDENT FUND

The Company established a contributory registered provident fund in accordance with the Provident Fund Act. B.E. 2530. The registered provident fund plan was approved by the Office of the Securities and Exchange Commission. Under this plan, the Company contributes an amount equivalent to the employees' contribution (which is computed on a certain percentage of the employees' basic salaries). The Company appointed a fund manager to manage the fund in accordance with the terms and conditions prescribed in the Ministerial Regulation No. 2 (B.E. 2532) issued under the Provident Fund Act. B.E. 2530.

ROBINSON

197

ß∫°“√‡ß‘π

⌫

Financial Statements

! ) &< # 0 1 $ 0# < 0 *⌫ &*: !" &0 *⌫ * ' -6 -. "$

* ! "# $ % ⌫ ⌫ & '&⌦ ) ! ' ⌫ ) ) ⌫& & 4 A& $ ⌫) 0 % ( ⌫ ⌫ !&# $<⌦ ! # 0 / "* # ⌫ # # )0 C 0 0&*: &0 * ' , -6 ,2-2 "$ " 0 # &0 -2 -2 "$ " 0 # &0 &? 0&0 ⌫ & ⌫ "* # 7$)&0 D #* !"< 0 !" &0 * ' - - "$

& # ) & ⌫)$< 0 (! ) " *⌫ 1 $ ⌫ ⌫& * $&@)& & < #" $< 0 C # ;(⌫? ⌫ & / 0# "& 0 # &0 ⌫$0 ⌫ + ,- - 2546

& / (! ) #0 )! ) $ ;(⌫

343,023 458,084 177,747

2545

2546

2545

343,945 425,760 177,677

232,714 340,958 138,156

230,509 314,835 151,107

!" #0 < 0 ) ) ' ⌫ ⌫!" B B "$

=< &$' ! $? ⌫) %$! $* &8 ;(⌫ 0 )# < 00 # &0 *⌫ & / $ 0# # $0 )# 0 # &0 *⌫

198

ROBINSON

ROBINSON DEPARTMENT STORE PUBLIC COMPANY LIMITED AND SUBSIDIARIES

NOTE TO FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2003 AND 2002

The Company's contribution to the fund for the years 2003 and 2002 amounted to approximately Baht 2.8 million and Baht 1.0 million, respectively.

21. COMMITMENT AND CONTINGENT LIABILITIES

As at December 31, 2003 and 2002, the Company and its subsidiaries have been committed to unused letters of credit and were contingently liable for letters of guarantee issued by the banks to certain government agencies of approximately Baht 74.8 million and Baht 79.9 million, respectively, for consolidated and Baht 33.9 million and Baht 36.9 million, respectively, for the Company only. These credit facilities were guaranteed by the Company's fixed deposits and note certificates of deposit totalling approximately Baht 65.4 million and Baht 65.3 million, respectively.

22. ADDITIONAL INFORMATION

The following are detail of expenses for the years ended December 31, 2003 and 2002, which are required to be disclosed in accordance with the Accounting Standard No. 35 "Presentation of Financial Statements.

In Thousand Baht Consolidated

Depreciation expense Employee expenses Amortization expense

The Company Only

2003

2002

2003

343,023 458,084 177,747

343,945 425,760 177,677

232,714 340,958 138,156

2002

230,509 314,835 151,107

As of December 31, 2003 and 2002, the Company's and subsidiaries' employees numbered 2,162 and 2,646, respectively.

23. RECLASSIFICATION OF ACCOUNTS

Certain accounts in 2002 financial statements have been reclassified to conform with the 2003 finanical statements presentation.

ROBINSON

199