ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY BALANCE SHEETS AS AT SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 ASSETS CURRENT ASSETS Cash in hand and at banks 208,160 1,844,836 173,803 1,733,991 Short-term investments (Note 6) 3,895,311 3,287,816 3,740,311 3,068,652 Accounts and notes receivable - net (Notes 3, 4 & 7) 2,885,357 2,814,068 2,785,116 2,628,827 Short-term loan and advances to related parties - net (Note 3) 122,312 305,331 103,964 250,384 Inventories - net (Note 4) 42,658 95,436 - - Other current assets (Note 8) 919,563 517,089 907,158 490,542 Total Current Assets 8,073,361 8,864,576 7,710,352 8,172,396 INVESTMENTS (Notes 4 & 9) Related Parties 62,366 62,366 918,738 787,759 Others - - - - Total Investments 62,366 62,366 918,738 787,759 PROPERTY AND EQUIPMENT - net (Notes 4 & 10) 1,917,388 1,202,398 1,798,646 1,093,549 OTHER ASSETS Costs of mobile phone and pager service networks under concession agreements - net (Notes 2, 3 & 4) 29,322,650 19,858,179 28,526,501 18,975,686 Deferred charges - net (Note 4) 359,111 120,107 358,957 120,107 Goodwill - net (Note 4) 301,940 338,539 - - Others 164,281 109,450 145,515 89,583 Total Other Assets 30,147,982 20,426,275 29,030,973 19,185,376 Total Assets 40,201,097 30,555,615 39,458,709 29,239,080 See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY BALANCE SHEETS AS AT SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) (Amounts in thousand Baht) Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Loans from banks (Note 11) 507,300 109,857 507,300 73,240 Accounts and notes payable and accrued expenses (Notes 3 & 12) 9,967,432 6,803,943 9,820,176 6,632,250 Current portion of long-term liabilities (Notes 11 & 14) 3,264,352 1,539,184 3,264,352 876,183 Advances from related parties (Note 3) 16,277 14,650 839 7,023 Short-term bonds (Note 3) 20,000 3,965,354 20,000 3,965,354 Other current liabilities (Note 13) 1,519,152 438,425 1,382,080 394,145 Total Current Liabilities 15,294,513 12,871,413 14,994,747 11,948,195 LONG-TERM BONDS (Note 3) 2,000,000 - 2,000,000 - LONG-TERM LIABILITIES - net (Notes 11 & 14) 5,441,570 2,513,480 5,441,570 2,513,480 DEPOSITS RECEIVED FROM CUSTOMERS (Note 3) 3,411,790 3,406,578 3,338,790 3,271,164 Total Liabilities 26,147,873 18,791,471 25,775,107 17,732,839 MINORITY INTERESTS IN SUBSIDIARY 369,622 257,903 - - SHAREHOLDERS' EQUITY Share capital Authorized 500,000,000 common shares, Baht 10 par value 5,000,000 5,000,000 5,000,000 5,000,000 Issued 234,000,000 common shares, fully paid 2,340,000 2,340,000 2,340,000 2,340,000 Premium on share capital 2,295,000 2,295,000 2,295,000 2,295,000 See notes to financial statements (Amounts in thousand Baht) Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Retained earnings Appropriated to legal reserve (Note 21) 500,000 484,700 500,000 484,700 Unappropriated 8,548,602 6,386,541 8,548,602 6,386,541 Total Shareholders' Equity 13,683,602 11,506,241 13,683,602 11,506,241 Total Liabilities and Shareholders' Equity 40,201,097 30,555,615 39,458,709 29,239,080 See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) (Amounts in thousand Baht Consolidated Company's Separate except earnings per share) Statements of income Statements of income 1998 1997 1998 1997 REVENUES Revenues from services and equipment rental (Note 4) 3,590,658 3,895,821 3,248,309 3,521,110 Sales (Note 4) 48,903 100,900 - - Net result of investment in subsidiary (Note 4) - - 39,985 17,155 Gain on exchange 579,991 - 562,156 - Other income (Note 15) 129,531 119,966 108,143 110,248 Total Revenues 4,349,083 4,116,687 3,958,593 3,648,513 EXPENSES Costs of services and equipment rental (Note 4) 2,111,263 1,620,450 2,042,323 1,557,285 Cost of sales (Note 4) 59,303 85,861 - - Selling and administrative expenses 914,141 800,553 747,742 578,804 Loss on exchange - 101,563 - 94,282 Interest expense 311,603 199,276 298,399 179,489 Directors' remuneration (Note 16) 1,325 1,695 1,310 1,680 Other expenses (Note 17) 9,993 12,400 - - Total Expenses 3,407,628 2,821,798 3,089,774 2,411,540 Net income before income tax and adjustment of net effect derived from the change in exchange rate system 941,455 1,294,889 868,819 1,236,973 Income tax (Note 22) (367,264) (406,567) (327,384) (374,954) Net income before adjustment of net effect derived from the change in exchange rate system 574,191 888,322 541,435 862,019 See notes to financial statements (Amounts in thousand Baht Consolidated Company's Separate except earnings per share) Statements of income Statements of income 1998 1997 1998 1997 Adjustment of net effect derived from the change in exchange rate system (net of income tax effect) (Notes 19 & 22) - (344,182) - (335,415) Net income before considering minority interests in subsidiary 574,191 544,140 541,435 526,604 Less Share of net income of subsidiary to minority interests 32,756 17,536 - - Net income 541,435 526,604 541,435 526,604 Earnings per share (Baht) (Note 4) Earnings per share before adjustment of net effect derived from the change in exchange rate system 2.45 3.79 2.31 3.68 Adjustment of net effect derived from the change in exchange rate system - (1.47) - (1.43) Earnings per share before considering minority interests in subsidiary 2.45 2.32 2.31 2.25 Less Share of net income of subsidiary to minority interests 0.14 0.07 - - Earnings per share (Baht) 2.31 2.25 2.31 2.25 See notes to financials statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY STATEMENTS OF INCOME FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) (Amounts in thousand Baht Consolidated Company's Separate except earnings per share) Statements of income Statements of income 1998 1997 1998 1997 REVENUES Revenues from services and equipment rental (Note 4) 11,513,334 10,882,930 10,457,311 9,771,791 Sales (Note 4) 165,063 183,921 - - Net result of investment in subsidiary (Note 4) - - 92,951 49,805 Gain on exchange 1,313,641 - 1,294,878 - Other income (Note 15) 426,465 236,812 357,902 191,046 Total Revenues 13,418,503 11,303,663 12,203,042 10,012,642 EXPENSES Costs of services and equipment rental (Note 4) 5,992,736 4,282,584 5,784,379 4,062,751 Cost of sales (Note 4) 186,406 165,634 - - Selling and administrative expenses 2,663,435 2,339,158 2,126,461 1,676,302 Loss on exchange - 93,682 - 81,854 Interest expense 911,419 334,859 861,893 282,450 Directors' remuneration (Note 16) 3,920 3,925 3,870 3,880 Other expenses (Note 17) 41,094 40,591 1,964 6,592 Total Expenses 9,799,010 7,260,433 8,778,567 6,113,829 Net income before income tax and adjustment of net effect derived from the change in exchange rate system 3,619,493 4,043,230 3,424,475 3,898,813 Income tax (Note 22) (1,264,589) (1,284,591) (1,149,837) (1,200,443) Net income before adjustment of net effect derived from the change in exchange rate system 2,354,904 2,758,639 2,274,638 2,698,370 See notes to financial statements (Amounts in thousand Baht Consolidated Company's Separate except earnings per share) Statements of income Statements of income 1998 1997 1998 1997 Adjustment of net effect derived from the change in exchange rate system (net of income tax effect) (Notes 19 & 22) - (344,182) - (335,415) Net income before considering minority interests in subsidiary 2,354,904 2,414,457 2,274,638 2,362,955 Less Share of net income of subsidiary to minority interests 80,266 51,502 - - Net income 2,274,638 2,362,955 2,274,638 2,362,955 Earnings per share (Baht) (Note 4) Earnings per share before adjustment of net effect derived from the change in exchange rate system 10.06 11.79 9.72 11.53 Adjustment of net effect derived from the change in exchange rate system - (1.47) - (1.43) Earnings per share before considering minority interests in subsidiary 10.06 10.32 9.72 10.10 Less Share of net income of subsidiary to minority interests 0.34 0.22 - - Earnings per share (Baht) 9.72 10.10 9.72 10.10 See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Amounts in thousand Baht) Three Months Nine Months Ended September 30 Ended September 30 1998 1997 1998 1997 Share capital Common shares Balance at beginning of period 2,340,000 2,340,000 2,340,000 2,340,000 Increase during the period - - - - Decrease during the period - - - - Balance at end of period 2,340,000 2,340,000 2,340,000 2,340,000 Premium on share capital Balance at beginning of period 2,295,000 2,295,000 2,295,000 2,295,000 Increase during the period - - - - Decrease during the period - - - - Balance at end of period 2,295,000 2,295,000 2,295,000 2,295,000 Retained earnings Appropriated to legal reserve Balance at beginning of period 500,000 484,700 500,000 484,700 Increase during the period - - - - Decrease during the period - - - - Balance at end of period 500,000 484,700 500,000 484,700 Unappropriated Balance at beginning of period 8,007,167 6,561,937 6,531,364 5,427,586 Increase during the period 541,435 526,604 2,274,638 2,362,955 Decrease during the period - 702,000 257,400 1,404,000 Balance at end of period 8,548,602 6,386,541 8,548,602 6,386,541 Total Shareholders' Equity 13,683,602 11,506,241 13,683,602 11,506,241 See notes to financial statements ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED AND SUBSIDIARY STATEMENTS OF RETAINED EARNINGS (UNAUDITED) (Amounts in thousand Baht) Three Months Nine Months Ended September 30 Ended September 30 1998 1997 1998 1997 Unappropriated retained earnings Balance at beginning of period 8,007,167 6,561,937 6,531,364 5,427,586 Appropriation of retained earnings in prior period Dividend (Note 20) - - (257,400) (702,000) Net income for the period 541,435 526,604 2,274,638 2,362,955 Interim dividend payment (Note 20) - (702,000) - (702,000) Balance at end of period 8,548,602 6,386,541 8,548,602 6,386,541 Appropriated retained earnings Legal reserve (Note 21) 500,000 484,700 500,000 484,700 Total Retained Earnings 9,048,602 6,871,241 9,048,602 6,871,241 See notes to financial statements