Newsroom

TTW/0527/08

10 November 2008

Subject: To clarify of the operating result for the third quarter period ended September 30, 2008

To: President The Stock Exchange of Thailand

Given that the results of operation in the consolidated financial statements in the third quarter period ended September 30, 2008 of Thai Tap Water Supply Public Company Limited (the Company) and its subsidiaries represented an increase by more than 20 percent as compared to the results of operation of the Company and its subsidiaries in the same period of the previous year, and as such the Company is required to give clarification on such changes to the Stock Exchange of Thailand. The Company hereby clarifies the significant changes as follows:

1) As at the end of June 2007 and December 2007, the Company invested in ordinary shares in Pathum Thani Water Co., Ltd. (PTW), representing 98 percent of the registered and paid-up capital of PTW. As a result, the Company was required to prepare the consolidated financial statements which included the results of operation since July 2007 onwards of Pathum Thani Water Co., Ltd. and BJT Water Co., Ltd. (Pathum Thani Water Co., Ltd.'s subsidiary).

2) The revenue from sales of tap water increased by Baht 124.1 million or representing an increase of 15.6 percent because:

a) The Company's tap water sales increased by Baht 108.3 million or representing an increase of 21.7 percent and the Company's distribution of tap water increased by 3.7 million cubic meters or representing an increase of 15.6 percent, including increase in tap water price from the previous year, and

b) PTW's tap water sales increased by Baht 15.8 million or representing an increase of 5.4 percent and PTW's distribution of tap water increased by 0.9 million cubic meters or representing an increase of 3.2 percent, including increase in tap water price from the previous year.

3) The costs of sales and service increase amount Baht 75.0 million or representing 29.9 percent since production cost and maintenance expenses of the Company and PTW increased by Baht 42.1 million and Baht 33.3 million or representing an increase of 32.1 percent and 27.9 percent, respectively.

4) The selling and administrative expenses decreased by Baht 10.3 million or representing a decrease of 20.5 percent because in the third quarter of the year 2007, PTW had legal fee in respect of long-term loans agreement and others amounting to Baht 7.0 million

5) The interest expenses decreased by Baht 53.1 million or representing a decrease of 24.9 percent since the Company repaid short-term loans and long-term loans amounting to Baht 3,000 million and Baht 567.0 million, respectively and PTW repaid long-term loans amounting to Baht 194.5 million.

 

Please be informed accordingly

 

Yours Faithfully,

 

(Sompodh Sripoom)
Managing Director

 

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