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Clarification of the operating results more than 20%

BackMay 09, 2007

SF 167/07

8 May 2007

Subject: Clarification of the operating results different from the same period last year more than 20%

To: President The Stock Exchange of Thailand

Siam Future Development Public Company Limited would like to clarify the operating results for the first quarter of the year 2007 ended 31 March 2007 different from the same period last year more than 20% regarding the regulation of The Stock Exchange of Thailand.

In the first quarter of the year 2006, the Company had 96,837 sq.m. of gross leasable area and opened 3 new shopping centers during the 2nd quarter and 4th quarter last year which are The Avenue Chaengwatthana , La Villa (Phahonyothin), and Esplanade Ratchadapisek. As of now, the Company had 188,213 sq.m. of gross leasable area, therefore, the revenues and cost increased from the same period last year as follows:

1. Revenues
Rental and service income was accounted for 163.31 Million Baht increasing by 62.68 Million Baht or 62% compared to the same period last year.

Revenue from finance lease contracts was accounted for 208.12 Million Baht from the Esplanade Ratchadapisek project increasing from the same period last year. However, in the first quarter last year the Company did not recognize this revenue as finance lease contract but recognized as location procurement fee, 97.15 Million Baht.

Total Revenues was accounted for 388.93 Million Baht increasing by 184.21 Million Baht or 90% compared to the same period last year.

2. Cost and Expenses
Cost of rental and services was accounted for 149.74 Million Baht increasing by 67.86 Million Baht or 83% compared to the same period last year. Cost of finance lease contracts was accounted for 91.80 Million Baht increasing from the same period last year.

Total Cost was accounted for 241.55 Million Baht increasing by 159.66 Million Baht or 195% compared to the same period last year because of Cost of finance lease contracts .

Selling and administrative expenses was accounted for 34.48 Million Baht increasing by 13.44 Million Baht or 64% compared to the same period last year.

Interest expense was accounted for 25.23 Million Baht increasing by 18.17 Million Baht or 258% compared to the same period last year since the opening of the Esplanade project in December 2006 leaded to inability to capitalize interest expense therefore the company had to recognize it as expense.

3. Net Profit
Net profit was accounted for 55.24 Million Baht decreasing by 14.51 Million Baht or 21% compared to the same period last year.

Because of all the reasons above, the operating results for the first quarter of the year 2007 ended 31 March 2007 different from the same period last year more than 20%

Please be informed accordingly.

 

Sincerely Yours,

 

(Mr. Somnuk Pojkasemsin)
President