auditor’s report on review of interim financial ......2015/08/11 · my responsibility is to...

AUDITOR’S REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Shareholders and the Board of Directors of Electricity Generating Public Company Limited

I have reviewed the accompanying consolidated and company statements of financial position as at 30 June 2015, the

related consolidated and company statements of income, and comprehensive income for the three-month and six-month

periods then ended, the related statements of changes in shareholders’ equity and cash flows for the six-month period

then ended, and condensed notes to interim financial information of Electricity Generating Public Company Limited and

its subsidiaries, and of Electricity Generating Public Company Limited, respectively. Management is responsible for the

preparation and presentation of this interim financial information in accordance with Thai Accounting Standard 34

“Interim Financial Reporting”. My responsibility is to express a conclusion on this interim financial information

based on my review.

Scope of review

I conducted my review in accordance with Thai Standard on Review Engagements 2410 “Review of interim

financial information performed by the independent auditor of the entity”. A review consists of making inquiries,

primarily of persons responsible for financial and accounting matters, and applying analytical and other review

procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on

Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant

matters that might be identified in an audit. Accordingly, I do not express an audit opinion.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the interim financial

information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34 “Interim

Financial Reporting”.

Amornrat Pearmpoonvatanasuk

Certified Public Accountant (Thailand) No. 4599

PricewaterhouseCoopers ABAS Ltd.

Bangkok

10 August 2015

Electricity Generating Public Company LimitedStatement of Financial PositionAs at 30 June 2015

Consolidated CompanyRestated Restated

Reviewed Audited Reviewed Audited30 June 31 December 30 June 31 December

2015 2014 2015 2014Notes Baht'000 Baht'000 Baht'000 Baht'000

Assets

Current assets

Cash and cash equivalents 6,497,217 6,859,020 602,822 892,294Short-term investments 162,662 368,857 - 529Short-term investments used as collateral 6 2,498,876 1,425,480 - -Trade receivables 7 2,028,870 2,013,445 - -Trade receivable from a related party 23.4 258,588 270,968 - -Trade receivable from a related party for

services under finance lease 23.5 154,972 250,002 - 101,890Current portion of finance lease receivable from a related party 23.6 1,133,557 807,995 - 124,620Current portion of receivable under

a concession arrangement - 15,325 - -Dividend receivables from subsidiaries and joint ventures 9.4 7,215,725 7,241,289 7,703,495 7,548,953Current portion of long-term loans to related parties 23.8 - - 45,882 45,882Amounts due from related parties 23.7 157,478 176,156 164,523 126,851Fuel and spare parts and supplies, net 3.3 1,673,418 2,069,296 191,571 192,086Other current assets 8 1,467,559 1,296,243 361,141 347,423Non-current assets classified as held for sale 22.1 755,992 - - -

Total current assets 24,004,914 22,794,076 9,069,434 9,380,528

Non-current assets

Finance lease receivable from a related party, net 23.6 880,096 1,570,803 - -Receivable under a concession arrangement, net - 279,480 - -Long-term investments in marketable securities 24 3,650,226 3,368,603 3,643,885 3,363,586Long-term loans to related parties, net 23.8 - - 2,548,786 2,653,786Deposits at financial institutions used as collateral 6 88,740 87,713 - -Investments in subsidiaries 9.2 - - 56,733,288 56,485,788Investment in an associate 9.3 6,854,771 6,850,756 - -Investments in joint ventures 9.3 51,498,003 48,920,430 25,571,697 24,371,697Other long-term investments 10 1,344,378 1,168,003 1,340,938 1,167,563Investment property 448,603 448,603 655,510 448,603Property, plant and equipment, net 3.3, 11 66,288,003 55,808,652 2,139,465 2,173,352Intangible assets, net 12 4,751,416 5,181,718 3 -Goodwill 9,879,585 9,904,481 - -Deferred tax assets, net 259,262 170,194 - -Advanced payment for construction 623,235 3,454,084 - -Other non-current assets 669,675 679,490 11,554 19,794

Total non-current assets 147,235,993 137,893,010 92,645,126 90,684,169

Total assets 171,240,907 160,687,086 101,714,560 100,064,697

For Director ……………………………………………………….

The condensed notes to the interim consolidated and company financial information on pages 14 to 54 are an integral part of thisinterim financial information.

2


Consolidated Company

Restated Restated

Reviewed Audited Reviewed Audited

30 June 31 December 30 June 31 December

2015 2014 2015 2014

Notes Baht'000 Baht'000 Baht'000 Baht'000

Liabilities and shareholders’ equity

Current liabilities

Short-term loans from financial institutions 13 5,363,776 10,048,300 5,246,776 9,878,300

Trade payables 616,395 781,887 4,528 9,410

Trade payable to a related party 23.4 966 9,186 - 6,023

Amounts due to related parties 23.7 1,880 15,302 - 485

Current portion of long-term loans from

financial institutions, net 14 9,664,758 5,633,110 7,419,672 3,337,743

Other current liabilities 16 3,566,151 2,246,095 318,633 447,773

Liabilities included with assets classified as held for sale 22.1 68,362 - - -

Total current liabilities 19,282,288 18,733,880 12,989,609 13,679,734

Non-current liabilities

Long-term loans from financial institutions, net 14 63,571,290 59,686,172 25,399,599 28,905,145

Debenture 15 4,769,683 - 4,769,683 -

Retirement benefit obligations 313,992 293,604 114,924 112,013

Provision for decommissioning costs 1,448,707 1,416,243 437,176 437,176

Deferred tax liabilities, net 5,053,465 4,953,892 672,657 610,470

Other non-current liabilities 17 606,717 1,384,607 69,947 24,419

Total non-current liabilities 75,763,854 67,734,518 31,463,986 30,089,223

Total liabilities 95,046,142 86,468,398 44,453,595 43,768,957


3



Restated Restated

Reviewed Audited Reviewed Audited

30 June 31 December 30 June 31 December

2015 2014 2015 2014

Baht'000 Baht'000 Baht'000 Baht'000

Liabilities and shareholders’ equity (continued)

Shareholders’ equity

Share capital

Authorised share capital

- 530,000,000 ordinary shares at par of Baht 10 per share 5,300,000 5,300,000 5,300,000 5,300,000

Issued and paid-up share capital

- 526,465,000 ordinary shares paid-up at Baht 10 per share 5,264,650 5,264,650 5,264,650 5,264,650

Premium on share capital 8,601,300 8,601,300 8,601,300 8,601,300

Premium on treasury stock 47,373 47,373 47,373 47,373

Retained earnings

Appropriated

- Legal reserve 530,000 530,000 530,000 530,000

Unappropriated 58,702,833 57,483,798 40,596,526 39,855,540

Other components of shareholders’ equity 2,100,383 1,336,887 2,221,116 1,996,877

Total equity attributable to the owners

of the parent 75,246,539 73,264,008 57,260,965 56,295,740

Non-controlling interests 948,226 954,680 - -

Total shareholders’ equity 76,194,765 74,218,688 57,260,965 56,295,740

Total liabilities and shareholders’ equity 171,240,907 160,687,086 101,714,560 100,064,697


4

Electricity Generating Public Company LimitedIncome StatementFor the three-month period ended 30 June 2015


2015 2014 2015 2014Notes Baht’000 Baht’000 Baht’000 Baht’000

Sales and services income 18, 23.1, 23.2 4,225,571 4,364,807 - -Cost of sales and services 19, 23.3 (2,530,757) (2,608,819) - -

Gross profit 1,694,814 1,755,988 - -Other income 23.10, 23.11 589,772 475,014 1,979,945 1,819,436Currency exchange gains (losses) (210,234) 34,047 17,178 12,366Administrative expenses (436,459) (752,586) (204,546) (173,775)Finance costs 20 (2,044,936) (575,359) (1,500,379) (168,292)Share of profit from investments in an associate

and joint ventures, net 1,956,222 2,004,273 - -

Profit before income tax expense 1,549,179 2,941,377 292,198 1,489,735Income tax expense 21 (155,624) (474,717) - -

Profit for the period from continuing operations 1,393,555 2,466,660 292,198 1,489,735

Discontinued operationProfit for the period from discontinued

operation, net of income tax 22 46,546 44,248 6,702 119,121

Profit for the period 1,440,101 2,510,908 298,900 1,608,856

Attributable to:Owners of the parent

Profit for the period from continued operations 1,362,818 2,437,733 292,198 1,489,735Profit for the period from discontinued operation 34,558 32,949 6,702 119,121

Profit for the period attributable to the owners of parent 1,397,376 2,470,682 298,900 1,608,856

Non-controlling interestsProfit for the period from continued operations 30,737 28,927 - -Profit for the period from discontinued operation 11,988 11,299 - -

Profit for the period attributable to the non-controlling interests 42,725 40,226 - -


Earnings per share for the period (Baht) 5

Earnings per share from continued operationsBasic earnings per share 2.59 4.63 0.56 2.83

Earnings per share from discontinued operationBasic earnings per share 0.07 0.06 0.01 0.23

(Reviewed)

The condensed notes to the interim consolidated and company financial information on pages 14 to 54 are an integral part of this interimfinancial information.

5

Electricity Generating Public Company LimitedStatement of Comprehensive IncomeFor the three-month period ended 30 June 2015

Consolidated CompanyRestated

2015 2014 2015 2014Baht’000 Baht’000 Baht’000 Baht’000


Other comprehensive income (expense)

Items that will not be reclassified subsequently to profit or lossRemeasurements of post-employment benefit obligations 43 - - -

Items that will be reclassified subsequently to profit or lossUnrealised gains (losses) on investments in marketable securities - available-for-sale, net of income tax 199,324 (49,831) 199,324 (49,831)Share of other comprehensive income of a joint venture 864 1,014 - -Exchange difference on translation 1,161,784 (282,402) - -

Other comprehensive income (expense) for the period 1,362,015 (331,219) 199,324 (49,831)

Total comprehensive income for the period 2,802,116 2,179,689 498,224 1,559,025

Total comprehensive income attributable to:Owners of the parent 2,749,160 2,139,475 498,224 1,559,025Non-controlling interests 52,956 40,214 - -

Total comprehensive income for the period 2,802,116 2,179,689 498,224 1,559,025

(Reviewed)


6

Electricity Generating Public Company LimitedIncome StatementFor the six-month period ended 30 June 2015


2015 2014 2015 2014Notes Baht’000 Baht’000 Baht’000 Baht’000

Sales and services income 18, 23.1, 23.2 7,626,903 8,489,595 - -Cost of sales and services 19, 23.3 (5,003,668) (5,205,971) - -

Gross profit 2,623,235 3,283,624 - -Other income 23.10, 23.11 975,825 896,298 4,220,908 2,457,469Currency exchange gains (losses) (326,928) 998 106,508 (1,003)Administrative expenses (1,027,838) (1,372,356) (474,911) (337,937)Finance costs 20 (2,320,352) (846,269) (1,351,378) (180,531)Share of profit from investments in an associate

and joint ventures, net 9.1 3,224,864 3,353,678 - -

Profit before income tax expense 3,148,806 5,315,973 2,501,127 1,937,998Income tax expense 21 (264,169) (376,393) - -

Profit for the period from continuing operations 2,884,637 4,939,580 2,501,127 1,937,998

Discontinued operationProfit (loss) for the period from discontinued

operation, net of income tax 22 90,948 88,461 (49,141) 219,704

Profit for the period 2,975,585 5,028,041 2,451,986 2,157,702

Attributable to:Owners of the parent

Profit for the period from continued operations 2,862,467 4,889,757 2,501,127 1,937,998Profit (loss) for the period from discontinued operation 67,525 65,872 (49,141) 219,704

Profit for the period attributable to the owners of parent 2,929,992 4,955,629 2,451,986 2,157,702

Non-controlling interestsProfit for the period from continued operations 22,170 49,823 - -Profit for the period from discontinued operation 23,423 22,589 - -

Profit for the period attributable to the non-controlling interests 45,593 72,412 - -


Earnings per share for the period (Baht) 5

Earnings per share from continued operationsBasic earnings per share 5.44 9.29 4.75 3.68

Earnings per share from discontinued operationBasic earnings per share 0.13 0.12 (0.09) 0.42

(Reviewed)


7

Electricity Generating Public Company LimitedStatement of Comprehensive IncomeFor the six-month period ended 30 June 2015

Consolidated CompanyRestated

2015 2014 2015 2014Baht’000 Baht’000 Baht’000 Baht’000


Other comprehensive income (expense)

Items that will not be reclassified subsequently to profit or lossRemeasurements of post-employment benefit obligations 43 - - -

Items that will be reclassified subsequently to profit or lossUnrealised gains (losses) on investments in marketable securities - available-for-sale, net of income tax 224,239 (249,155) 224,239 (249,155)Share of other comprehensive income (expense)

of a joint venture 1,832 (1,031) - -Exchange difference on translation 544,449 (74,790) - -

Other comprehensive income (expense) for the period 770,563 (324,976) 224,239 (249,155)

Total comprehensive income for the period 3,746,148 4,703,065 2,676,225 1,908,547

Total comprehensive income attributable to:Owners of the parent 3,693,531 4,636,880 2,676,225 1,908,547

Non-controlling interests 52,617 66,185 - -

Total comprehensive income for the period 3,746,148 4,703,065 2,676,225 1,908,547

(Reviewed)


8

Electricity Generating Public Company Limited (Reviewed)Statement of Changes in Shareholders’ EquityFor the six-month period ended 30 June 2015

Consolidated

Share of other

comprehensive

Issued and income Exchange Total other Total

paid-up share Premium on Premium on Investments (expense) of difference on components Total owners Non-controlling shareholders'

capital share capital treasury stock Legal reserve Unappropriated available-for-sale a joint venture translation of equity of the parent interests equity

Note Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000

Opening balance as at 1 January 2014 5,264,650 8,601,300 47,373 530,000 53,107,202 2,345,693 15,621 (569,168) 1,792,146 69,342,671 909,970 70,252,641

Changes in shareholders' equity

for the period

Total comprehensive income for the period - - - - 4,955,629 (249,155) (1,031) (68,563) (318,749) 4,636,880 66,185 4,703,065

Dividend paid - - - - (1,710,996) - - - - (1,710,996) (79,491) (1,790,487)

Closing balance as at 30 June 2014 5,264,650 8,601,300 47,373 530,000 56,351,835 2,096,538 14,590 (637,731) 1,473,397 72,268,555 896,664 73,165,219

Opening balance as at 1 January 2015 5,264,650 8,601,300 47,373 530,000 57,483,798 1,996,877 16,505 (676,495) 1,336,887 73,264,008 954,680 74,218,688

Changes in shareholders' equity

for the period

Total comprehensive income for the period - - - - 2,930,035 224,239 1,832 537,425 763,496 3,693,531 52,617 3,746,148

Dividend paid 25 - - - - (1,711,000) - - - - (1,711,000) (59,071) (1,770,071)

Closing balance as at 30 June 2015 5,264,650 8,601,300 47,373 530,000 58,702,833 2,221,116 18,337 (139,070) 2,100,383 75,246,539 948,226 76,194,765

The condensed notes to the interim consolidated and company financial information on pages 14 to 54 are an integral part of this interim financial information.

Retained earnings Other comprehensive income (expense)

Other components of equity

Attributable to owners of the parent

9

Electricity Generating Public Company Limited (Reviewed)Statement of Changes in Shareholders’ EquityFor the six-month period ended 30 June 2015

Company

Other comprehensive

income (expense)

Issued and Total

paid-up share Premium on Premium on Investments Total other shareholders'

capital share capital treasury stock Legal reserve Unappropriated available-for-sale components of equity equity

Note Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000 Baht'000

Opening balance as at 1 January 2014 5,264,650 8,601,300 47,373 530,000 39,115,977 2,345,693 2,345,693 55,904,993

Changes in shareholders' equity for the period

Total comprehensive income for the period - - - - 2,157,702 (249,155) (249,155) 1,908,547

Dividend paid - - - - (1,710,996) - - (1,710,996)

Closing balance as at 30 June 2014 5,264,650 8,601,300 47,373 530,000 39,562,683 2,096,538 2,096,538 56,102,544

Opening balance as at 1 January 2015 5,264,650 8,601,300 47,373 530,000 39,855,540 1,996,877 1,996,877 56,295,740

Changes in shareholders' equity for the period

Total comprehensive income for the period - - - - 2,451,986 224,239 224,239 2,676,225

Dividend paid 25 - - - - (1,711,000) - - (1,711,000)

Closing balance as at 30 June 2015 5,264,650 8,601,300 47,373 530,000 40,596,526 2,221,116 2,221,116 57,260,965

Other components of equity

Retained earnings

The condensed notes to the interim consolidated and company financial information on pages 14 to 54 are an integral part of this interim financial information.

10

Electricity Generating Public Company Limited (Reviewed)

Statement of Cash Flows

For the six-month period ended 30 June 2015


Restated Restated

2015 2014 2015 2014

Notes Baht’000 Baht’000 Baht’000 Baht’000

Cash flows from operating activities

Profit before income tax from continuing

operations for the period 3,148,806 5,315,973 2,501,127 1,937,998

Adjustments to reconcile profit before

income tax to net cash provided by operations:

- Depreciation and amortisation 1,095,452 1,025,747 23,914 23,202

- Allowance for obsolescence 41,538 96,944 - -

- Retirement benefit expenses 23,323 22,125 5,028 5,797

- Interest income (36,558) (27,545) (93,707) (103,105)

- Interest expenses 1,318,564 1,002,099 513,623 323,361

- Provision for decommissioning costs 26,125 33,186 - -

- Unrealised losses (gains) on exchange rates 982,887 (162,529) 827,217 (124,670)

- Losses on disposals and write-off of equipment 8,305 602 6,951 -

- Dividends received from other company (74,746) (68,518) (74,746) (68,518)

- Dividends received from subsidiaries and joint ventures 9.4 - - (3,851,210) (2,187,406)

- Share of profit from investments in an associate

and joint ventures, net 9.1 (3,224,864) (3,353,678) - -

Cash flows before changes in operating assets and liabilities 3,308,832 3,884,406 (141,803) (193,341)

Changes in operating assets and liabilities:

- Trade receivables and trade receivable

from a related party (27,036) (101,075) - -

- Trade receivable from a related party for

services under finance lease 95,029 4,736 - -

- Finance lease receivable from a related party 366,222 582,688 - -

- Amounts due from related parties (44,942) 19,732 (26,175) 23,850

- Spare parts and supplies 353,877 384,991 - -

- Other current assets (183,371) (246,045) (14,308) (47,348)

- Other non-current assets (722,552) (58,952) - (15)

- Trade payables and trade payable to

a related party (200,461) (451,172) - -

- Amounts due to related parties 55,265 3,022 (400) 5,000

- Retirement benefit paid (4,001) (9,828) (3,610) -

- Other current liabilities and Other non-current liabilities (183,882) 137,535 (112,411) (98,030)

Cash generated from (used in) operations 2,812,980 4,150,038 (298,707) (309,884)

- Tax paid (303,698) (575,006) - -

Net cash receipts from (payments in) operating activities

from continuing operations 2,509,282 3,575,032 (298,707) (309,884)

Net cash receipts from operating activities of

discontinued operation 103,777 102,102 167,198 766,323

Net cash receipts (payments in) from operating activities 2,613,059 3,677,134 (131,509) 456,439


11





Restated Restated

2015 2014 2015 2014

Notes Baht’000 Baht’000 Baht’000 Baht’000

Cash flows from investing activities

Acquisition of investments in a subsidiary and joint ventures 9.1 (1,241,174) - (1,447,500) -

Net cash receipts from short-term investments 70,548 602 529 -

Net cash payments for short-term

and long-term investments used as collateral (1,074,422) (956,883) - -

Net cash payments from long-term investments

in marketable securities (1,552) - - -

Interest received 37,990 37,084 84,664 38,436

Acquisition of other long-term investment (173,375) (255,246) (173,375) (251,844)

Net cash payments in purchases of equipment,

assets under construction and investment property (6,515,877) (7,365,100) (211,546) (19,315)

Net cash payments in purchases of intangible asset (3,052) (24,078) (67) (21,618)

Cash receipt from long-term loans to related parties - - 115,000 -

Cash payments from long-term loans to related parties - - (10,000) -

Dividends received from subsidiaries and joint ventures 9.4 2,277,317 1,588,059 3,696,668 1,793,553

Dividends received from other company 74,746 68,518 74,746 68,518

Net cash receipts from (payments in) investing activities

from continuing operations (6,548,851) (6,907,044) 2,129,119 1,607,730

Net cash receipts from investing activities of

discontinued operation 101,674 6,861 - -

Net cash receipts from

(payments in) investing activities (6,447,177) (6,900,183) 2,129,119 1,607,730

Cash flows from financing activities

Payments on finance leases (593) (1,759) - (1,199)

Interests paid (1,549,889) (965,628) (500,289) (321,406)

Proceeds from short-term loans from financial institutions 13 5,435,648 3,862,000 4,818,648 3,660,000

Payments on short-term loans from financial institutions 13 (10,148,300) (3,512,000) (9,478,300) (3,380,000)

Proceeds from long-term loans from financial institutions 14.1 9,908,068 6,884,869 1,625,705 -

Payments on long-term loans from financial institutions 14.1 (2,864,368) (2,607,615) (1,679,366) (1,671,059)

Payments on deferred financing fee (15,675) - - -

Proceeds from debenture 15 4,636,986 - 4,636,986 -

Dividends paid to shareholders (1,728,885) (1,766,177) (1,710,466) (1,710,517)

Net cash receipts from (payments in) financing activities

from continuing operations 3,672,992 1,893,690 (2,287,082) (3,424,181)

Net cash payments in financing activities of

discontinued operation (20,388) (19,132) - -

Net cash receipts from (payments in)

financing activities 3,652,604 1,874,558 (2,287,082) (3,424,181)


12





Restated Restated

2015 2014 2015 2014

Note Baht’000 Baht’000 Baht’000 Baht’000

Net decrease in cash and cash equivalents (181,514) (1,348,491) (289,472) (1,360,012)

Beginning balance 6,859,020 6,983,790 892,294 1,800,126

Effect of exchange rate changes (11,453) (127,707) - -

Ending balance

(Including cash and cash equivalent of discontinued operation) 6,666,053 5,507,592 602,822 440,114

Cash and cash equivalents from continuing operations

as at 30 June are made up as follows:

- Cash in hand and deposits at financial institutions -

maturities within three months 5,132,359 4,730,214 69,611 61,847

- Short-term investments in promissory notes -

maturities within three months 1,364,858 777,378 533,211 378,267

6,497,217 5,507,592 602,822 440,114

Cash and cash equivalents from discontinued operation

as at 30 June are made up as follows: 22.1

- Cash in hand and deposits at financial institutions -

maturities within three months 36,980 - - -

- Short-term investments in promissory notes -

maturities within three months 131,856 - - -

168,836 - - -

6,666,053 5,507,592 602,822 440,114

Non-cash transactions as at 30 June:

- Increase in property, plant and equipment by other payables

(included retention) 1,665,462 1,143,963 8,165 -

- Reclassification of advanced payment for construction to

property, plant and equipment 98,807 3,121,257 - -

- Reclassification of other assets to deferred financing fee 147,271 68,644 - -


13

ELECTRICITY GENERATING PUBLIC

COMPANY LIMITED

INTERIM CONSOLIDATED AND COMPANY

FINANCIAL INFORMATION

(REVIEWED)

30 JUNE 2015


Unaudited Condensed Notes to the Interim Consolidated and Company Financial Information


14

1 General information

Electricity Generating Public Company Limited (the “Company”) is a public limited company, incorporated

and resident in Thailand. The address of its registered office is 14th and 15th Floor EGCO Tower, 222 Moo 5,

Vibhavadi Rangsit Road, Tungsonghong, Laksi, Bangkok 10210.

The Company is listed on the Stock Exchange of Thailand. For reporting purposes, the Company and its subsidiaries

are referred to as “the Group”.

The principal business operation of the Group is the generation of electricity for sale to the government sector

and industrial users.

This interim consolidated and company financial information was authorised for issue by the President on

10 August 2015.

This interim consolidated and company financial information has been reviewed, not audited.

2 Basis of preparation of interim financial information

This interim consolidated and company financial information (referred to as “the interim financial information”)

is prepared in accordance with Thai generally accepted accounting principles under the Accounting Act B.E.

2543, being those Thai Accounting Standards issued under the Accounting Professions Act B.E. 2547 and the

financial reporting requirements of the Securities and Exchange Commission. The primary financial information,

which is the statement of financial position and statements of income, comprehensive income, changes in

shareholders’ equity and cash flows, is prepared in the full format as required by the Securities and Exchange

Commission. The notes to the interim financial information are prepared in a condensed format according to

Thai Accounting Standard No. 34 “Interim Financial Reporting” and additional notes are presented as required

by the Securities and Exchange Commission under the Securities and Exchange Act.

This interim financial information should read in conjunction with the 2014 annual financial statements.

An English version of the interim financial information has been prepared from the statutory interim financial

information that is in the Thai language. In the event of a conflict or a difference in interpretation between the

two languages, the Thai language interim financial information shall prevail.

3 Summary of accounting policies

The accounting policies used in the preparation of the interim financial information are consistent with those

used in the annual financial statements for the year ended 31 December 2014 except as described below.

Costs that are incurred unevenly during the financial year are anticipated or deferred in the interim report only

if it would also be appropriate to anticipate or defer such costs at the end of the financial year.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total

annual profit or loss.

In preparing this interim financial information, the significant judgements made by management in applying

the group’s accounting policies and the key sources of estimation uncertainty were the same as those that

applied to the consolidated financial statements for the year ended 31 December 2014.




15

3 Summary of accounting policies (continued)

3.1 New financial reporting standards, revised accounting standards and financial reporting standards and

interpretations (collectively “the accounting standards”) being effective for the accounting periods beginning

on or after 1 January 2015 and adopted by the Group

3.1.1 New and revised accounting standards with significant changes

TAS 1 (revised 2014) Presentation of financial statements

TAS 16 (revised 2014) Property, plant and equipment

TAS 19 (revised 2014) Employee benefits

TAS 27 (revised 2014) Separate financial statements

TAS 28 (revised 2014) Investments in associates and joint ventures

TAS 34 (revised 2014) Interim financial reporting

TFRS 10 Consolidated financial statements

TFRS 11 Joint arrangements

TFRS 12 Disclosure of interests in other entities

TFRS 13 Fair value measurement

TFRIC 14 (revised 2014) TAS 19 - The limit on a defined benefit asset, minimum funding requirements

and their interaction

TFRIC 20 Stripping costs in the production phase of a surface mine

Commencing 1 January 2015, the Group has applied the aforementioned accounting standards. The application

of those accounting standards does not have significant impact to the interim financial information being

presented except the adoption of TAS 16 (revised 2014) “Property, plant and equipment” as described in Notes 3.2

and 3.3 and TFRS 13 “Fair value measurement” which has resulted in the disclosure of condensed notes to the

interim financial information as disclosed in Note 24.

3.1.2 Revised accounting standards with minor changes and do not have impact to the Group

TAS 2 (revised 2014) Inventories TAS 7 (revised 2014) Statement of cash flows TAS 8 (revised 2014) Accounting policies, changes in accounting estimates and errors TAS 10 (revised 2014) Events after the reporting period TAS 11 (revised 2014) Construction contracts TAS 12 (revised 2014) Income taxes TAS 17 (revised 2014) Leases TAS 18 (revised 2014) Revenue TAS 20 (revised 2014) Accounting for government grants & disclosure of government assistance TAS 21 (revised 2014) The effects of changes in foreign exchange rates TAS 23 (revised 2014) Borrowing costs TAS 24 (revised 2014) Related party disclosures TAS 26 (revised 2014) Accounting and reporting by retirement benefit plans TAS 29 (revised 2014) Financial reporting in hyperinflationary economies TAS 33 (revised 2014) Earnings per share TAS 36 (revised 2014) Impairment of assets TAS 37 (revised 2014) Provisions, contingent liabilities and contingent assets TAS 38 (revised 2014) Intangible assets TAS 40 (revised 2014) Investment property TFRS 2 (revised 2014) Share-based payment TFRS 3 (revised 2014) Business combinations TFRS 5 (revised 2014) Non-current asset held for sale and discontinued operations TFRS 6 (revised 2014) Exploration for and evaluation of mineral resources TFRS 8 (revised 2014) Operating segments TSIC 10 (revised 2014) Government assistance - No specific relation to operating activities TSIC 15 (revised 2014) Operating leases - Incentives TSIC 25 (revised 2014) Income taxes - changes in the tax status of an entity or its shareholders TSIC 27 (revised 2014) Evaluating the substance of transactions involving the legal form of a lease TSIC 29 (revised 2014) Service concession arrangements: Disclosures




16


3.1 New financial reporting standards, revised accounting standards and financial reporting standards and

interpretations (collectively “the accounting standards”) being effective for the accounting periods beginning

on or after 1 January 2015 and adopted by the Group (continued) 3.1.2 Revised accounting standards with minor changes and do not have impact to the Group (continued)

TSIC 31 (revised 2014) Revenue - barter transactions involving advertising services TSIC 32 (revised 2014) Intangible assets - Web site costs TFRIC 1 (revised 2014) Changes in existing decommissioning, restoration and similar liabilities TFRIC 4 (revised 2014) Determining whether an arrangement contains a lease TFRIC 5 (revised 2014) Rights to interests arising from decommissioning, restoration and environmental

rehabilitation funds TFRIC 7 (revised 2014) Applying the restatement approach under TAS 29 (revised 2014) Financial reporting in

hyperinflationary economies TFRIC 10 (revised 2014) Interim financial reporting and impairment TFRIC 12 (revised 2014) Service concession arrangements TFRIC 13 (revised 2014) Customer loyalty programmes TFRIC 15 (revised 2014) Agreements for the construction of real estate TFRIC 17 (revised 2014) Distributions of non-cash assets to owners TFRIC 18 (revised 2014) Transfers of assets from customers

3.2 Revised and new accounting policies from the adoption of revised and new accounting standards

Revised accounting policy for property, plant and equipment (TAS16 (revised 2014) “Property, plant and equipment”)

The Group recognises spare parts, stand-by equipment and servicing equipment as property, plant and equipment if

they meet the definitions of property, plant and equipment. If they do not meet such definitions, they will be

reclassified as spare parts.

The impact to the consolidated and company statements of financial position as at 31 December 2014 is presented in

Note 3.3

Revised accounting policy for employee benefits (TAS 19 (revised 2014) “Employee benefits”)

The Group recognises gain and loss from remeasurements of post-employment benefit obligations in the statement

of comprehensive income in the period in which they arise. The Group recognises past-service costs in the income

statement immediately.

The impact to the consolidated and company statements of financial position as at 31 December 2014 and the

interim consolidated and company financial information for the six-month period ended 30 June 2014 is not

significant.

Revised accounting policy for investments in subsidiaries (TFRS 10 “Consolidated financial statements”)

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is

exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect

those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which

control is transferred to the Group. They are deconsolidated from the date that control ceases.

This revised accounting policy has no impact to the consolidated and company statements of financial position

as at 31 December 2014 and the interim consolidated and company financial information for the six-month

period ended 30 June 2014.




17


3.2 Revised and new accounting policies from the adoption of revised and new accounting standards (continued)

New accounting policy for a joint arrangement (TFRS 11 “Joint arrangements”)

A joint arrangement is a contractual arrangement where at least two parties agree to share control over the activities

of the arrangement. Unanimous consent toward decisions about relevant activities between the parties sharing

control is a requirement in order to meet the definition of joint control. Joint arrangements can be joint operations or

joint ventures. The classification is principle based and depends on the parties’ exposure in relation to the

arrangement. When the parties’ exposure to the arrangement only extends to the net assets of the arrangement, the

arrangement is a joint venture. Joint operations have rights to assets and obligations for liabilities.

An investment in a joint venture is accounted for using the equity method of accounting. Under the equity

method of accounting, investment in a joint venture is initially recognised at cost and adjusted thereafter to

recognise the Group’s share of the post-acquisition profits or losses and movements in other comprehensive

income. When the Group’s share of losses in a joint venture equals or exceeds its interests in the joint ventures

(which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture),

the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the

joint ventures. Unrealised gains on transactions between the Group and its joint ventures are eliminated to the

extent of the Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction

provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been

changed where necessary to ensure consistency with the policies adopted by the Group.

The Group shall account for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in

accordance with the Group’s accounting policies applicable to the particular assets, liabilities, revenues and

expenses.

The new accounting policy has no impact to the consolidated and company statements of financial position as

at 31 December 2014 and the interim consolidated and company financial information for the six-month

period ended 30 June 2014.

3.3 Impact of the adoption of new and revised accounting standards

The Group has applied retrospectively adjustments for the impact of the adoption of TAS 16 (revised 2014)

“Property, plant and equipment” in relation to recognition of spare part, stand-by equipment and servicing

equipment as property, plant and equipment. The impact on the consolidated and company statements of financial

position as at 31 December 2014 are as follows:

As previously Increase After

reported (Decrease) restated

Baht’000 Baht’000 Baht’000

Consolidated statement of financial position

as at 31 December 2014

- Fuel and spare parts and supplies, net 2,602,863 (533,567) 2,069,296

- Property, plant and equipment, net 55,275,085 533,567 55,808,652


reported (Decrease) restated


Company statement of financial position

as at 31 December 2014

- Fuel and spare parts and supplies, net 357,310 (165,224) 192,086

- Property, plant and equipment, net 2,008,128 165,224 2,173,352




18


3.4 Reclassification

Comparative figures have been reclassified to conform with changes in presentation in the current period.

The changes are in relation to the operating results of the produce and supply of tap water business and the

operating results of Rayong power plant (Note 22) that effect to the consolidated and company income

statements as follows:


reported (Decrease) reclassification


Consolidated income statement for (Note 22.1)

the three-month period ended 30 June 2014 Sales and services income 4,440,998 (76,191) 4,364,807

Cost of sales and services (2,629,176) 20,357 (2,608,819)

Gross profit 1,811,822 (55,834) 1,755,988 Other income 476,149 (1,135) 475,014 Currency exchange gains 34,047 - 34,047 Administrative expenses (754,831) 2,245 (752,586) Finance costs (575,359) - (575,359) Share of profit from investments in an associate

and joint ventures, net 2,004,273 - 2,004,273

Profit before income tax expense 2,996,101 (54,724) 2,941,377

Income tax expense (485,193) 10,476 (474,717)

Profit for the period from continued operations 2,510,908 (44,248) 2,466,660 Discontinued operation

- Profit for the period from discontinued

operation, net of income tax - 44,248 44,248

Profit for the period 2,510,908 - 2,510,908

Attributable to:

Owners of the parent Profit for the period from continued operations 2,470,682 (32,949) 2,437,733

Profit for the period from discontinued operation -

32,949 32,949

Profit for the period for owners of the parent 2,470,682 - 2,470,682

Non-controlling interests Profit for the period from continued operations 40,226 (11,299) 28,927


11,299 11,299

Profit for the period for non-controlling interests 40,226 - 40,226





19


3.4 Reclassification (continued)




statements as follows: (continued)


reported (Decrease) reclassification


Consolidated income statement for the (Note 22.1)

six-month period ended 30 June 2014 Sales and services income 8,641,520 (151,925) 8,489,595

Cost of sales and services (5,246,117) 40,146 (5,205,971)

Gross profit 3,395,403 (111,779) 3,283,624 Other income 898,550 (2,252) 896,298 Currency exchange gains 998 - 998 Administrative expenses (1,376,985) 4,629 (1,372,356) Finance costs (846,269) - (846,269) Share of profit from investments in an associate

and joint ventures, net 3,353,678 - 3,353,678


Income tax expense (397,334) 20,941 (376,393)

Profit for the period from continued operations 5,028,041 (88,461) 4,939,580 Discontinued operation




Attributable to:

Owners of the parent Profit for the period from continued operations 4,955,629 (65,872) 4,889,757


65,872 65,872

Profit for the period for owners of the parent 4,955,629 - 4,955,629

Non-controlling interests Profit for the period from continued operations 72,412 (22,589) 49,823


22,589 22,589

Profit for the period for non-controlling interests 72,412 - 72,412





20


3.4 Reclassification (continued)




statements as follows: (continued)

As previously Increase After reported (Decrease) reclassification


Company income statement for the three-month (Note 22.2)

period ended 30 June 2014

Sales and services income 315,547 (315,547) -

Cost of sales and services (178,780) 178,780 -

Gross profit 136,767 (136,767) -

Other income 1,834,153 (14,717) 1,819,436

Currency exchange gains 12,366 - 12,366

Administrative expenses (218,688) 44,913 (173,775)

Finance costs (172,697) 4,405 (168,292)


Income tax expense 16,955 (16,955) -

Profit for the period from continued operations 1,608,856 (119,121) 1,489,735

Discontinued operation




As previously Increase After reported (Decrease) reclassification


Company income statement for the six-month (Note 22.2)

period ended 30 June 2014

Sales and services income 636,610 (636,610) -

Cost of sales and services (367,957) 367,957 -

Gross profit 268,653 (268,653) -

Other income 2,486,682 (29,213) 2,457,469

Currency exchange losses (1,003) - (1,003)

Administrative expenses (427,762) 89,825 (337,937)

Finance costs (189,341) 8,810 (180,531)


Income tax expense 20,473 (20,473) -

Profit for the period from continued operations 2,157,702 (219,704) 1,937,998

Discontinued operation







21

4 Segment information - Consolidated financial information

The Group has two segments report which are comprised of electricity generation and other businesses.

Electricity generation is to operate electricity for sales to the government and industrial users both in Thailand

and overseas. Other businesses are tap water generation for sales to the government in Thailand, including

maintenance and operating services for power plants and coal mining business. The segment information is

presented on the same basis that used for internal reporting purpose as provided to the chief operating decision

maker (“the President”).

For the three-month period ended 30 June 2015

Electricity

generation

Other

businesses

Consolidated

Adjustments

Management

Discussion

and Analysis

report

Baht’000 Baht’000 Baht’000 Baht’000 Baht’000

Revenue from sales and

services income 3,953,703 271,868 4,225,571 530,908(4),(5),(8),(9),(10) 4,756,479 Costs of the sales and services (2,328,971) (201,786) (2,530,757) (242,942)(5),(8),(9),(10) (2,773,699)

Segment results 1,624,732 70,082 1,694,814 287,966 1,982,780 Other income 587,154 2,618 589,772 (308,535)(4),(8),(9),(10) 281,237 Currency exchange gains (losses) (213,086) 2,852 (210,234) (981,129)(1),(2),(3),(5),(9) (1,191,363) Administrative expenses (425,287) (11,172) (436,459) (339,450)(6),(7),(8),(9),(10) (775,909) Finance costs (2,044,936) - (2,044,936) 1,321,688(2),(9) (723,248) Share of profit from investments in an associate and joint ventures, net 1,954,621 1,601 1,956,222 31,707(1),(5),(6),(7) 1,987,929

Profit before income tax expense 1,483,198 65,981 1,549,179 12,247 1,561,426 Income tax expense (137,750) (17,874) (155,624) (85,709)(5),(6),(9),(10) (241,333)

Profit for the period from

continued operations 1,345,448 48,107 1,393,555 (73,462) 1,320,093


discontinued operation - 46,546 46,546 (46,546)(5),(6),(9),(10) -

Profit for the period 1,345,448 94,653 1,440,101 (120,008) 1,320,093

Owners of the parent 1,314,711 82,665 1,397,376 (75,553)(5) 1,321,823

Non-controlling interests 30,737 11,988 42,725 (44,455)(3),(5),(9) (1,730)

(1) Net gains (losses) on exchange rates and finance costs of joint ventures (2) Net gains (losses) on exchange rates and finance costs of subsidiaries (3) Net gains (losses) on exchange rates of non-controlling interests

(4) Adder income

(5) Impact of the adoption of TFRIC 4 “Determining whether an arrangement contains a lease” and TFRIC 12

“Service concession arrangements” (6) Deferred tax of subsidiaries and joint ventures

(7) Amortisation of rights in long-term power purchase agreements and fair value uplift of assets from

business combination

(8) Related party transaction of subsidiaries and joint ventures

(9) Non-controlling interests

(10) Profit (loss) from discontinued operation




22

4 Segment information - Consolidated financial information (continued)

For the three-month period ended 30 June 2014

Electricity

generation

Other

businesses

Consolidated

Adjustments

Restated

Management

Discussion

and Analysis

report


Revenue from sales and services income 4,283,237 81,570 4,364,807 791,442(4),(5),(8),(9) 5,156,249

Costs of the sales and services (2,510,725) (98,094) (2,608,819) (430,236)(5),(8),(9) (3,039,055)

Segment results 1,772,512 (16,524) 1,755,988 361,206 2,117,194

Other income 472,324 2,690 475,014 (298,591)(4),(8),(9) 176,423

Currency exchange (losses) 35,285 (1,238) 34,047 (21,097)(1),(2),(3),(5) 12,950 Administrative expenses (745,639) (6,947) (752,586) (35,381)(6),(7),(8),(9) (787,967) Finance costs (575,359) - (575,359) (23,465)(2) (598,824) Share of profit from investments

in joint ventures, net 2,008,018 (3,745) 2,004,273 (53,418)(1),(5),(6),(7) 1,950,855

Profit (losses) before income tax

expense 2,967,141 (25,764) 2,941,377 (70,746) 2,870,631

Income tax expense (474,359) (358) (474,717) (11,528)(5),(6),(9) (486,245)

Profit (losses) for the period from

continued operations 2,492,782 (26,122) 2,466,660 (82,274) 2,384,386


discontinued operation - 44,248 44,248 (44,248)(5),(6),(9) -



Non-controlling interests 28,927 11,299 40,226 (767)(3),(5) 39,459


(4) Adder income


“Service concession arrangements” (6) Deferred tax of subsidiaries and joint ventures (7) Amortisation of rights in long-term power purchase agreements and fair value uplift of assets from business

combination






23



Electricity

generation

Other

businesses

Consolidated

Adjustments

Management

Discussion

and Analysis

report


Revenue from sales and

services income 7,202,080 424,823 7,626,903 1,157,401(4),(5),(8),(9),(10) 8,784,304

Costs of the sales and services (4,631,670) (371,998) (5,003,668) (567,033)(5),(8),(9),(10) (5,570,701)

Segment results 2,570,410 52,825 2,623,235 590,368 3,213,603

Other income 970,575 5,250 975,825 (592,904)(4),(8),(9),(10) 382,921 Currency exchange losses (321,834) (5,094) (326,928) (750,593)(1),(2),(3),(5),(9) (1,077,521) Administrative expenses (1,006,557) (21,281) (1,027,838) (606,410)(6),(7),(8),(9),(10) (1,634,248)

Finance costs (2,320,352) - (2,320,352) 908,910(2),(9) (1,411,442) Share of profit from investments

in an associate and

joint ventures, net 3,230,445 (5,581) 3,224,864 332,708(1),(5),(6),(7) 3,557,572

Profit before income tax

expense 3,122,687 26,119 3,148,806 (117,921) 3,030,885 Income tax expense (238,810) (25,359) (264,169) (82,821)(5),(6),(9),(10) (346,990)


continued operations 2,883,877 760 2,884,637 (200,742) 2,683,895 Profit for the period from

discontinued operation - 90,948 90,948 (90,948)(5),(6),(9),(10) -



Non-controlling interests 22,170 23,423 45,593 (49,020)(3),(5),(9) (3,427)


(4) Adder income


“Service concession arrangements” (6) Deferred tax of subsidiaries and joint ventures

(7) Amortisation of rights in long-term power purchase agreements and fair value uplift of assets from

business combination


(9) Non-controlling interests





24



Electricity

generation

Other

businesses

Consolidated

Adjustments

Restated

Management

Discussion

and Analysis

report


Revenue from sales and services income 8,283,121 206,474 8,489,595 1,566,180(4),(5),(8),(9) 10,055,775 Costs of the sales and services (4,980,255) (225,716) (5,205,971) (860,498)(5),(8),(9) (6,066,469)

Segment results 3,302,866 (19,242) 3,283,624 705,682 3,989,306 Other income 891,459 4,839 896,298 (595,228)(4),(8),(9) 301,070 Currency exchange gains (losses) 3,759 (2,761) 998 53,486(1),(2),(3),(5) 54,484 Administrative expenses (1,348,471) (23,885) (1,372,356) (72,136)(6),(7),(8),(9) (1,444,492) Finance costs (846,269) - (846,269) (273,440)(2) (1,119,709) Share of profit from investments in joint ventures, net 3,358,250 (4,572) 3,353,678 (27,881)(1),(5),(6),(7) 3,325,797

Profit (losses) before

income tax expense 5,361,594 (45,621) 5,315,973 (209,517) 5,106,456

Income tax expense (367,341) (9,052) (376,393) 3,584(5),(6),(9) (372,809)

Profit (losses) for the period from continued operations 4,994,253 (54,673) 4,939,580 (205,933) 4,733,647


discontinued operation - 88,461 88,461 (88,461)(5),(6),(9) -


Owners of the parent 4,944,430 11,199 4,955,629 (293,102)(5) 4,662,527 Non-controlling interests 49,823 22,589 72,412 (1,292)(3),(5) 71,120


(4) Adder income


“Service concession arrangements” (6) Deferred tax of subsidiaries and joint ventures (7) Amortisation of rights in long-term power purchase agreements and fair value uplift of assets from business

combination



5 Basic earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to the owners of parent by

the weighted average number of ordinary shares in issue during the period (2015 and 2014: 526,465,000 shares).

There were no dilutive potential ordinary shares in issue during the periods presented.




25

6 Investments used as collateral

Short-term investments used as collateral

The majority of the deposits at financial institutions used as collateral are those of nine subsidiaries

(31 December 2014, were of eight subsidiaries). They comprise cash reserves required to be maintained under their

loan agreements for the purpose of repayment of principal and payment of interest due within one year and as a

reserve to minimise exchange rate risk. These cash reserves are provided from the proceeds of sales of electricity.

As at 30 June 2015, the Group had Thai Baht deposits at financial institutions used as collateral amounting to

Baht 2,499 million (31 December 2014: Baht 1,425 million). These included the cash reserve for the purpose

of repayment of principal and payment of interest due within one year amounted to Baht 1,497 million

(31 December 2014: Baht 1,212 million) and the remaining balance of Baht 1,002 million (31 December 2014:

Baht 213 million) represented collateralised deposits maintained in accordance with the loan agreements but

which could be used subject to certain lender approvals.

Long-term investments used as collateral

Long-term investments used as collateral is of a subsidiary which represented deposits maintained in accordance

with the loan agreements.

As at 30 June 2015, the Group had Thai Baht deposits at financial institutions used as collateral of Baht

89 million (31 December 2014: Baht 88 million) represented collateralised deposits maintained in accordance

with the loan agreements but which could be used subject to certain lender approvals.

7 Trade receivables


As at 30 June

2015

31 December

2014

30 June

2015

31 December

2014

Baht’000 Baht’000 Baht’000 Baht’000

Trade receivables 600,211 668,480 - -

Trade receivable form operating lease 275,497 268,857 - -

Trade receivable from services under

operating lease 1,153,162 1,076,108 - -

Total trade receivables 2,028,870 2,013,445 - -

Trade receivables can be analysed as follows:


As at 30 June

2015

31 December

2014

30 June

2015

31 December

2014


Not overdue 1,970,042 1,923,649 - -

Overdue below 3 months 15,223 12,364 - -

Overdue 3 - 6 months - - - -

Overdue 6 - 12 months - - - -

Overdue over 12 months 43,605 77,432 - -

Total trade receivables 2,028,870 2,013,445 - -




26

8 Other current assets


As at 30 June

2015

31 December

2014

30 June

2015

31 December

2014


Prepaid withholding tax 631,742 551,403 306,144 297,797

Value Added Tax receivable 204,343 279,724 - -

Prepaid insurance premiums 59,576 27,071 1,356 14

Accrued income 81,538 115,825 - 5,109

Interest receivable 4,680 7,197 114 467

Others 485,680 315,023 53,527 44,036

Total other current assets 1,467,559 1,296,243 361,141 347,423

9 Investments in subsidiaries, an associate and joint ventures


As at 30 June

2015

31 December

2014

30 June

2015

31 December

2014


Investments in subsidiaries (Note 9.2) - - 56,733,288 56,485,788

Investment in an associate (Note 9.3) 6,854,771 6,850,756 - -

Investments in joint ventures (Note 9.3) 51,498,003 48,920,430 25,571,697 24,371,697

Total investments in subsidiaries,

an associate and joint ventures 58,352,774 55,771,186 82,304,985 80,857,485

9.1 The movements of the investments in subsidiaries, an associate and joint ventures can be analysed as follows:


Baht’000 Baht’000


Opening book value 55,771,186 80,857,485

Additional paid-up share capital of a subsidiary (Note 9.1.1) - 247,500

Acquisition of investment in a joint venture (Note 9.1.3) 1,241,174 1,200,000

Share of profits from investments in an associate and joint ventures, net 3,224,864 -

Unrealised gains on investments in marketable

securities-available-for-sale of a joint venture 1,832 -

Dividends received from joint ventures (2,251,753) -

Exchange difference on translation 365,471 -

Closing book value 58,352,774 82,304,985




27

9 Investments in subsidiaries, an associate and joint ventures (continued)


(continued)

9.1.1 The movement of the investments in subsidiaries during the six-month period ended 30 June 2015

Direct holding by the Company

Klongluang Utilities Co., Ltd. (“Klongluang”)

During the second quarter of 2015, Klongluang called for additional paid-up share capital and the Company paid for

additional paid-up share capital in the same portion as its original investment, totalling Baht 248 million.

Indirect holding by the Company

Dawei Electricity Generating Company Management Pte. Ltd. (“DECOM”)

DECOM was incorporated to develop the power project in Myanmar. The Group holds 100% of its total

registered shares and fully paid for the share capital amounting to US Dollar 20,000, equivalent to Baht 0.66 million

on 14 January 2015.

Boco Rock Wind Farm Pty Ltd. (“BRWF”)

During the six-month period ended 30 June 2015, BRWF called for additional paid-up share capital and the Group

paid for additional paid-up share capital, totalling Australian Dollar 4.50 million, equivalent to Baht 115 million.

9.1.2 The movement of the investments in an associate during the six-month period ended 30 June 2015


Star Energy Geothermal Pte. Ltd. and its subsidiaries (“SEG”)

On 30 July 2014, the Group paid for 20% of shareholding in SEG which invests in the power business in the

Republic of Indonesia, totalling US Dollar 215 million, equivalent to Baht 6,831 million.

During the second quarter of 2015, the Group had completely measured the fair value of the identifiable assets

acquired and liabilities assumed of SEG to comply with the measurement period for a business combination

referred in TFRS 3 (Revised 2014) “Business combinations”. The determination of fair value does not impact to

the consolidated financial statements for the year ended 31 December 2014.

Detail of the consideration paid and fair value of net assets acquired as at the acquisition date are as follow:

Consolidated

Baht’000

Fair value of net assets acquired 1,285,638

Right in long term power purchase agreements

(presented in investment in an associate) 707,482

License (presented in investment in an associate) 98,010

Goodwill (presented in investment in an associate) 4,739,570

Purchase consideration 6,830,700

Right in long-term power purchase agreement and license are amortised by straight-line method over the periods

of the SEG’s Power Purchase Agreement.




28



(continued)

9.1.3 The movement of the investments in joint ventures during the six-month period ended 30 June 2015

Direct holding by the Company

Natural Energy Development Company Limited (“NED”)

On 4 February 2015, the Company acquired additional shares of 33.33% of total share capital in NED from its

former shareholder at Baht 1,200 million. The acquisition increased the Company’s shareholding in NED from

33.33% to 66.67%. However, under the terms and conditions of Shareholder Agreement, it is required unanimous

consent from all shareholders or their representatives on the strategic, operating and financing decision of NED;

therefore, NED is a joint venture of the Company.

The detail of investment is described below:

Consolidated

Baht’000

Portion of carrying value of net assets acquired 896,766

Purchase price over net assets’ carrying value(1),(2)

(presented in investments in a joint venture) 303,234

Purchase consideration 1,200,000

(1) As at 30 June 2015, the Company has been under the process of determining fair value of the acquired net

assets and reviewing purchase price allocation (“PPA”). Therefore, the purchase price over net assets’

carrying value may be subject to further adjustments depending on the determination of fair value and the

result of the PPA, which is expected to be finalised within 12 months from the acquisition date.

(2) This is expected to be comprised of right to long-term power purchase agreements and goodwill, etc.


PT Tenaga Listrik Cilegon (“TLC”)

On 23 February 2015, TLC was incorporated to develop the coal-fired power plant in the Republic of Indonesia.

The Group holds 49% of its total registered shares and fully paid for the share capital amounting to US Dollar

1.23 million, equivalent to Baht 41 million on 4 June 2015.




29


9.2 Investments in subsidiaries

The details of the investments in subsidiaries are as follows: Company

Portion of Investment (%) Cost Method Dividend for the period

30 June 31 December 30 June 31 December 30 June 30 June

2015 2014 2015 2014 2015 2014

Business Baht’000 Baht’000 Baht’000 Baht’000

Subsidiaries incorporated in Thailand (Including indirect holding)

Khanom Electricity Generating Co., Ltd. Electricity generation 99.99 99.99 6,000,000 6,000,000 - -

EGCO Engineering and Service Co., Ltd. and its subsidiaries Power plant operation and maintenance services 99.99 99.99 400,000 400,000 97,044 124,165

- Agro Energy Co., Ltd. Trading/delivery of natural scrap 99.99 99.99

- Egcom Tara Co., Ltd. Produce and supply of tap water business 74.19 74.19

EGCO Green Energy Co., Ltd. and its subsidiary Investment in biomass fuelled electricity generation plant 74.00 74.00 129,500 129,500 43,796 38,494

- Roi-Et Green Co., Ltd. Husk fuelled electricity generation plant 95.00 95.00

EGCO Cogeneration Co., Ltd. Electricity generation 80.00 80.00 891,894 891,894 - -

Theppana Wind Farm Co., Ltd. Wind electricity generation plant 90.00 90.00 144,411 144,411 - -

SPP Two Co., Ltd. Solar electricity generation plant 99.99 99.99 265,805 265,805 36,026 36,481

SPP Three Co., Ltd. Solar electricity generation plant 99.99 99.99 300,529 300,529 43,251 37,515

SPP Four Co., Ltd. Solar electricity generation plant 99.99 99.99 223,641 223,641 31,190 30,632

SPP Five Co., Ltd. Solar electricity generation plant 99.99 99.99 370,923 370,923 45,268 45,419

Yanhee EGCO Holding Co., Ltd. and its subsidiary Investment in solar electricity generation plant 100.00 100.00 4,905 4,905 182,704 -

- Solarco Co., Ltd. Solar electricity generation plant 99.98 99.98

Klongluang Utilities Co., Ltd. Electricity cogeneration power plant

(the Company has not yet started its business operations)

99.99 99.99 257,500 10,000 - -

Banpong Utilities Co., Ltd. Electricity cogeneration power plant


99.99 99.99 507,500 507,500 - -

Chaiyaphum Wind Farm Co., Ltd. Wind electricity generation plant


90.00 90.00 406,300 406,300 - -

Total investments in subsidiaries incorporated in Thailand 9,902,908 9,655,408 479,279 312,706




30


9.2 Investments in subsidiaries (continued)

The details of the investments in subsidiaries are as follows: (continued) Company (continued)



2015 2014 2015 2014 2015 2014


(Including indirect holding)

Subsidiaries incorporated in overseas

North Pole Investment Company Limited (North Pole)

(incorporated in the Republic of Mauritius) and its

subsidiaries, an associate and joint ventures

Investment in energy related business 100.00 100.00 46,830,380 46,830,380 1,296,476 -

- EGCO International (B.V.I.) Limited (incorporated in the

British Virgin Islands) and its subsidiaries, an associate and joint ventures

Investment in energy related business 100.00 100.00 - - - -

Subsidiaries

- New Growth Cooperatief U.A (incorporated in the Netherlands)

and its subsidiaries and joint venture


Subsidiaries

- Gen Plus B.V. (incorporated in the Netherlands) and its joint venture Investment in energy related business 100.00 100.00 - - - -

- Masin-AES Pte. Ltd. (Masin-AES) (incorporated in Singapore)

and its subsidiaries

Investment in coal-fired power plant business 44.54 44.54 - - - -

- Phoenix Power B.V. (incorporated in the Netherlands) and its associate Investment in energy related business 100.00 100.00 - - - -

- Star Energy Geothermal Pte. Ltd. (SEG) (incorporated in the

Republic of Indonesia) and its subsidiaries

Investment in geothermal energy

power plant business

20.00 20.00 - - - -

- Millennium Energy B.V. (incorporated in the Netherlands)



- South Pacific Power Pty Limited. (incorporated in the Australia)



- Boco Rock Wind Farm Pty Ltd (incorporated in the Australia) Electricity generation from wind power 100.00 100.00 - - - -

- New Growth B.V. (incorporated in the Netherlands)

and its subsidiaries and joint venture


Subsidiaries

- Pearl Energy Philippines Operating, Inc. (PEPOI)

(registered under the laws of Cayman Islands, operated in the Philippines)

Power plant operation and maintenance services 100.00 100.00 - - - -




31


9.2 Investments in subsidiaries (continued)

The details of the investments in subsidiaries are as follows: (continued) Company (continued)



2015 2014 2015 2014 2015 2014


Subsidiaries incorporated in overseas (continued) (Including indirect holding)

- Quezon Power (Philippines) Limited Co. (QPL)

(incorporated in the Philippines)

Electricity generation 98.00 98.00 - - - -

- Quezon Management Service Inc. (QMS) (registered

under the laws of Cayman Islands, operated in

the Philippines)

Management services 100.00 100.00 - - - -

- Mauban Holding Company Inc. (MHCI)

(incorporated in the Philippines) and its joint venture


- Kalilayan Power Inc.(KPI) (incorporated in

the Philippines)


- San Buenaventura Power Ltd., Co. (SBPL)

(incorporated in the Philippines)

Electricity generation (the Company

has not yet started its business operations)

49.00 49.00 - - - -

- Dawei Electricity Generating Company Management Pte. Ltd. (DECOM)

(incorporated in Singapore) Power Plant Development 100.00 - - - - -

Joint venture

- PT Manambang Muara Enim (MME) (incorporated in the Republic of Indonesia) Development of coal mining 40.00 40.00 - - - -

- PT Tenaga Listrik Cilegon (TLC) (incorporated in the Republic of Indonesia) Development of coal-fired power plant (the Company has not yet started its business

operations)

49.00

-

-

-

-

-

Total investments in subsidiaries incorporated in overseas 46,830,380 46,830,380 1,296,476 -

Total investments in subsidiaries 56,733,288 56,485,788 1,775,755 312,706

As at 30 June 2015, dividend receivables from subsidiaries amounting to Baht 488 million were recognised in the interim company financial information (31 December 2014: Baht 308 million).

As at 30 June 2015 and 31 December 2014, under the terms and conditions of loan agreements of Khanom Electricity Generating Co., Ltd., its common shares were pledged as collateral for its long-term loans.

As at 30 June 2015 and 31 December 2014, under the terms and conditions of loan agreements of Solarco Co., Ltd., the common share of Solarco Co., Ltd. and Yanhee EGCO Holding Co., Ltd. were pledged as

collateral for its long-term loan.

As at 30 June 2015, under the terms and conditions of loan agreements of Chaiyaphum Wind Farm Co., Ltd., its common shares were pledged as collateral for its long-term loan.

During the second quarter of 2015, the Group’s Investment Committee passed a resolution to approve the disposal of all ordinary shares of Egcom Tara Co., Ltd. which is indirect holding by the Company. Therefore,

the investment in the subsidiary is classified as non-current asset held for sale in the consolidated statement of financial position as at 30 June 2015 (Note 22.1).




32


9.3 Investments in an associate and joint ventures

The details of the investments in an associate and joint ventures are as follows: Consolidated

Portion of Investment (%) Cost Equity Method Dividend for the period

30 June 31 December 30 June 31 December 30 June 31 December 30 June 30 June

2015 2014 2015 2014 2015 2014 2015 2014

Business Baht’000 Baht’000 Baht’000 Baht’000 Baht’000 Baht’000

(Including indirect holding)

Associate incorporated in the Republic of Indonesia

Star Energy Geothermal Pte. Ltd. (SEG) and its subsidiaries Investment in geothermal

energy power plant business 20.00 20.00 6,830,700 6,830,700 6,854,771 6,850,756 - -

Total investment in an associate 6,830,700 6,830,700 6,854,771 6,850,756 - -

Joint ventures incorporated in Thailand

Gulf Electric Public Co., Ltd. (GEC) and its subsidiaries Investment in power projects 50.00 50.00 6,672,769 6,672,769 14,193,387 13,953,733 613,404 551,374

BLCP Power Ltd. (BLCP) Electricity generation 50.00 50.00 10,433,597 10,433,597 7,871,156 7,419,905 767,752 751,300

Natural Energy Development Co., Ltd. (NED) Solar electricity generation plant 66.67 33.33 1,961,000 761,000 2,056,673 873,453 293,333 140,000

G- Power Source Co., Ltd. (GPS) Solar electricity generation plant 60.00 60.00 734,388 734,388 805,315 803,324 71,424 62,341

GIDEC Co., Ltd (GIDEC) Electricity generation from waste power 50.00 50.00 200,000 200,000 115,172 138,048 - -

Joint ventures incorporated in the Philippines

Kalilayan Power Inc.(KPI) Investment in power projects 49.00 49.00 1,683 1,683 1,530 1,511 - -

San Buenaventura Power Ltd., Co. (SBPL) Electricity generation (the Company

has not yet started its business operations)

49.00 49.00 211,403 211,403 194,571 184,386 - -

Joint venture incorporated in Singapore

Masin-AES Pte. Ltd. (Masin-AES) and its subsidiaries Investment in coal-fired power plant

business

44.54 44.54 14,214,320 14,214,320 14,127,197 13,954,042 176,298 -

Joint venture incorporated in the Lao People’s Democratic Republic

Nam Theun 2 Power Company Limited (NTPC) Electricity generation 35.00 35.00 5,569,943 5,569,943 6,142,407 5,623,986 329,542 369,685

Joint venture incorporated in the Republic of Indonesia

PT Manambang Muara Enim (MME) Development of coal mining 40.00 40.00 6,029,579 6,029,579 5,951,472 5,968,042 - -

PT Tenaga Listrik Cilegon (TLC) Development of coal-fired power plant (the Company has not yet started its business

operations)

49.00

-

41,174

-

39,123

-

-

-

Total interests in joint ventures 46,069,856 44,828,682 51,498,003 48,920,430 2,251,753 1,874,700

As at 30 June 2015 and 31 December 2014, under the terms and conditions of loan agreements of BLCP and GPS, the Company pledged their common shares as collateral for their long-term loans.

As at 30 June 2015, dividend receivables from joint ventures amounting to Baht 7,216 million were recognised in the interim consolidated financial information (31 December 2014: Baht

7,241 million).




33


9.3 Investments in an associate and joint ventures (continued)

The details of the investments in an associate and the joint ventures are as follows: (continued)

Company

Portion of Investment (%) Cost method Dividend for the period


2015 2014 2015 2014 2015 2014


Joint ventures incorporated in Thailand (Including indirect holding)

Gulf Electric Public Co., Ltd. (GEC) and its subsidiaries Investment in power projects 50.00 50.00 6,672,769 6,672,769 613,404 551,374

BLCP Power Ltd. (BLCP) Electricity generation 50.00 50.00 10,433,597 10,433,597 767,752 751,300

Natural Energy Development Co., Ltd. (NED) Solar electricity generation plant 66.67 33.33 1,961,000 761,000 293,333 140,000

G-Power Source Co., Ltd. (GPS) Solar electricity generation plant 60.00 60.00 734,388 734,388 71,424 62,341

GIDEC Co., Ltd. (GIDEC) Electricity generation from waste power 50.00 50.00 200,000 200,000 - -

Joint venture incorporated in the Lao People’s Democratic Republic

Nam Theun 2 Power Company Limited (NTPC) Electricity generation 35.00 35.00 5,569,943 5,569,943 329,542 369,685

Total interests in joint ventures 25,571,697 24,371,697 2,075,455 1,874,700

As at 30 June 2015, dividend receivables from joint ventures amounting to Baht 7,216 million were recognised in the interim company financial information (31 December 2014: Baht

7,241 million).


Unaudited Condensed Notes t

auditor’s report on review of interim financial ......2015/08/11 · my responsibility is to...

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