Notification of the Operating Result for the Quarter 3/2009

TTW/0716/09 3 November 2009 Subject : Notification of the Operating Result for the Third Quarter of Year 2009 To : President The Stock Exchange of Thailand The Operating results of Thai Tap Water Supply Public Company Limited (the Company) and its subsidiaries for the third quarter periods ended 30 September 2009 and 2008 have the consolidated net profit of Baht 484.8 million and Baht 358.0 million, respectively. The consolidated net profit for the third quarter of 2009 represent to increase 35.4% compared with the third quarter of 2008. The Company hereby clarifies the significant changes as follows: 1) The consolidated tap water sales increased by Baht 98.9 million or representing an increase of 10.8% because: a) Water sale income of the Company increased by Baht 70.1 million or representing an increase of 11.6% because (1) Sales volume of the Company increased of 0.9 million cubic meter or representing an increase of 3.5%; (2) Tap water price increased from the previous year,and (3) The tap water sales of Baht 18.6 million at Bangpa-In Industrial Estate. b) The tap water sale of Pathum Thani Water Co., Ltd. (PTW) increased by Baht 28.8 million or representing an increase 9.3% since water sale volume increased by 0.1 million cubic meters or representing an increase of 0.1 percent, and tap water price increased from the previous year. 2) The Cost of sales and services decreased by Baht 30.5 million or representing a decrease of 9.4% because in this quarter, the Company did not have the structural repair and maintenance as compared with third quarter of last year. 3) Amortization of rights to produce and sell treated water and treat waste water increased by Baht 3.3 million or representing an increase of 100% because on 7 August 2009, the Company acquired the rights to operate and manage treated water and waste water at Bangpa- In Industrial Estate for the period of 30 years. Such rights will be amortized by unit of production method over the useful life period. 4) The financial cost decreased by Baht 41.7 million or representing a decrease of 25.3% because: a) In May 2008, the Company already cleared short-term loans of Baht 3,000 million in full. b) In February 2009, the Company issued debentures with maturity date of 3 years, 5 years and 7 years with average interest cost of 4.53% p.a. to repay the existing long-term loans of Baht 5,839.8 million with carrying interest rate of MLR-1%. c) For the third quarter period of 2009, the average interest rate of PTW's long-term loans is 5.88% p.a. (the third quarter period of 2008: 7.13% p.a.) 5) The corporate income tax increased by Baht 40.3 million or representing an increase of 3,923.9% because PTW received the notice of a change to its net operating loss brought forward from the Area Revenue Office. Based on the assessment made by the Area Revenue Office, PTW has corporate income tax obligations since 1 January 2009 onwards. To reduce the risk of future loss, PTW recorded such corporate income tax expenses. Please be informed accordingly. Yours Faithfully, (Somkiat Pattamamongkolchai) Accounting & Finance Manager