-Translation-
12 March 2007
Re: Clarification for the difference greater than 20% in comparative income statements
We,Pico (Thailand) Plc. wish to offer our clarification for the difference greater than 20% in the operating performance for the first quarter 2007 relative to the corresponding period of the previous year.
Consolidated Financial Statements
Consolidated revenue of the group for the quarter ending 31 January 2007 amounted to Baht 225 million representing a Baht 5 million increase over the corresponding period of the previous year. Gross profit was Baht 50 million, a comparative decline of Baht 4 million due primarily from the increased cost for rending of services in general resulting from the fluctuation of the economy. The selling and general administrative expenses came to Baht 42 million, a comparative increase of Baht 7 million due from our restructuring in human resource for the future challenges. The consolidated net income therefore declined from Baht 15 million to Baht 6 million or 60% lower than the performance of corresponding period of the previous year.Financial statements for the separate company
Net income for the separated company financial performance increased from Baht 13 million to Baht 35 million a relative increase of 173% over the same period of last year. This was due to the dividend income received from the subsidiaries in accordance with the revision of accounting policy notification Thai Accounting Standard (TAS) No. 44. The company's revenue for the quarter ending 31 January, 2007 including the Baht 28.15 million dividend received from subsidiaries, amounted to Baht 218 million with gross profit margin of Baht 40 million and the selling and general administrative expenses of Baht 33 million resulting in a net income of Baht 35 million. Incidentally, without the said accounting policy change, the net income would be at Baht 6 million as stated in the consolidated financial statement.Please be informed accordingly.
Sincerely yours,
-Signature-
(Mr. Silchai Kiatpapan)