Part 3

Financial status and operation result

13. Important financial data

Financial Statements

A) Independent Auditor’s Report

To the Shareholders of Siam Food Products Public Company Limited

I have audited the accompanying consolidated and separate financial
statements of Siam Food Products Public Company Limited and its
subsidiaries (the “Group”) and of Siam Food Products Public Company
Limited (the “Company”), respectively, which comprise the consolidated
and separate statements of financial position as at 31 December 2015,
the consolidated and separate statements of comprehensive income,
changes in equity and cash flows for the year then ended, and notes,
comprising a summary of significant accounting policies and other
explanatory information.

Management’s Responsibility for the Consolidated and Separate Financial
Statements

Management is responsible for the preparation and fair presentation of
these consolidated and separate financial statements in accordance with
Thai Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of
consolidated and separate financial statements that are free from
material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on these consolidated and
separate financial statements based on my audit. I conducted my audit in
accordance with Thai Standards on Auditing. Those standards require that
I comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated and separate
financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the consolidated and separate financial statements
present fairly, in all material respects, the financial position of the
Group and the Company, respectively, as at 31 December 2015 and their
financial performance and cash flows for the year then ended in
accordance with Thai Financial Reporting Standards.

(Nirand Lilamethwat)

Certified Public Accountant

Registration No. 2316

KPMG Phoomchai Audit Ltd.

Bangkok

23 February 2016

B) Schedule of financial statement summary (Consolidated financial
statement) (Unit : 1,000 Baht)

  ---------------- -------------- -------- ----------- -------- ----------- -------- ----------- -------
  รายการ           Consolidated                                                                  
                   Financial                                                                     
                   Statements                                                                    

                   2015                    2014                 2013                 2012        

                   Amount         %        Amount      %        Amount      %        Amount      %

  Total Assets     2,779,896      100      2,822,921   100      3,886,670   100      2,859,505   100

  Total            509,746        18.34    430,295     15.24    1,196,384   30.78    512,428     17.92
  Liabilities                                                                                    

  Shareholders’    2,270,150      81.66    2,392,626   84.76    2,690,286   69.22    2,347,077   82.08
  Equity                                                                                         

  Total Revenues   3,714,686      100      3,579,594   100      2,483,416   100      2,463,190   100

  Revenues from    3,654,973      98.39    3,482,136   97.28    2,442,981   98.37    2,381,497   96.68
  sale                                                                                           

  Gross Profit     128,984        3.47     (107,455)   (3.00)   (49,761)    (2.00)   197,653     8.02
  (loss)                                                                                         

  Net Profit       (88,463)       (2.38)   35,387      0.99     510,776     20.57    57,937      2.35
  (loss)                                                                                         

  Net cash from    (52,268)                621,094              (280,534)            81,002      
  (used in)                                                                                      
  operating                                                                                      
  activities                                                                                     

  Net cash from    (129,827)               703,753              (356,534)            398,331     
  (used in)                                                                                      
  investing                                                                                      
  activities                                                                                     

  Net cash from    (29,040)                (981,008)            421,847              (304,825)   
  (used in)                                                                                      
  financing                                                                                      
  activities                                                                                     

  Net increase     (211,134)               343,839              (215,221)            174,508     
  (decrease) in                                                                                  
  cash and cash                                                                                  
  equivalents                                                                                    
  ---------------- -------------- -------- ----------- -------- ----------- -------- ----------- -------

C) The important financial ratio reflects the financial status and
operation result.

  ------------------------------ ------- -------------- --------- -------- --------
  Financial Ratio                Unit    Consolidated                      
                                         Financial                         
                                         Statements                        

                                         2015           2014      2013     2012

  Liquidity Ratios                                                         

  Current Ratio                  Times   2.48           3.19      1.39     3.71

  Quick Ratio                    Times   1.13           1.75      0.18     1.01

  Avg.Collection Period          Days    26.98          19.22     24.12    32.05

  Avg.No.Days Inventory In Stock Days    47.99          84.89     160.96   147.24

  Profitability Ratios                                                     

  Gross Profit Margin            %       3.53           (3.12)    (2.04)   8.30

  Net Profit Margin              %       (2.42)         0.97      20.91    2.43

  Earning (Per)Share             Baht    (4.21)         1.62      24.32    2.75

  Price earnings Ratio           Times   (56.97)        165.25    7.40     84.82

  Assets Management Ratios                                                 

  Return On Equity (ROE)         %       (3.90)         1.42      18.99    2.47

  Return On Total Asset (ROA)    %       (3.18)         1.20      13.14    2.03

  Return On Total Fixed Asset    %       (11.86)        4.17      58.13    7.13

  Total Assets Turnover          Times   1.34           1.29      0.72     0.79

  Leverage Ratios                                                          

  Debt To Total Assets                   0.18           0.15      0.31:1   0.18:1

  Debt To Equity (D/E)                   0.22           0.18      0.44:1   0.22:1
  ------------------------------ ------- -------------- --------- -------- --------

14. ANALYSIS OF FINANCIAL STATUS AND OPERATING PERFORMANCE

The company’s performances in 2015 comparing to 2014 and the statements
of financial position as at December 31, 2015 comparing to 2014 as
audited and certified by the certified auditor can be summarized as
follows :

Business Overview

The operation for fiscal Year 2015 ending 31 December, 2015 of the
consolidated financial statements, the company earned the total income
of Baht 3,714.69 million, net loss from the operation in amount of Baht
123.86 million. Upon combination with the profit share in the associated
company in amount of Baht 35.40 million, the company earned the net loss
of total Baht 88.46 million, while in the year 2014, the company earned
the total income of Baht 3,579.59 million, net loss from the operation
in amount of Baht 228.87 million, upon combination with the profit share
in the associated company in amount of Baht 264.26 million, the company
earned the net profit of total Baht 35.40 million change in net loss
increasing by Baht 123.85 million or 349.96% from the same period of the
previous year.

1)  Revenue from sale amount of Baht 3,654.97 million, an increased by
    Baht 172.83 million or 4.96% from the same period of the previous
    year.

Ratio of cost of goods sold and sales in the fiscal Year 2015 was 96.47%
while the same period of the previous year equal to 103.08%. Due to

1.  We could increase selling prices because customer realized of raw
    material costs higher for two years ago because of drought in
    Thailand.

2.  We could purchase raw material from other region into production
    volume increased by 30,954 tons or 27%, this resulted in lower of
    cost per unit.

2) Administrative expenses decreased by Baht 19.55 million, mainly due
to it was idle capacity cost reducing, and control in reduce expenses.

3) About the operation result of the associated company; Eastern
Seaboard Industrial (Rayong) Co., Ltd. Therefore, the company recognized
profit sharing according to the equity method in Statement of Income of
the company in amount of Baht 35.40 million, decreasing from the
previous year Baht 228.86 million or 86.6% due to the associated company
had revenue from the sale of real estated decreased from previous year.

As at 31 December,2015 , the consolidated statement of financial
position had a Debt to Equity Ratio at 0.22, an increased from 0.18 at
the end of year 2014, the main point was accounts payable increasing to
produce products.

Financial Status

As at 31 December 2015, the company’s statements of financial position
presents total assets of Baht 2,779.90 million, a decrease of Baht 43.02
million from the previous year or 1.52%. The details of changes in
assets and liabilities are as follows.

Assets

-Cash and cash equivalents decreased Baht 209.68 million.

-Property, plant and equipment decreased Baht 68.11 million.

-Equity securities available-for sale Baht 32.31 million.

-Account receivable increased Baht 159.74 million.

-Inventories increased Baht 56.90 million.

-Short-term loans to associated company increased 40.00 million.

Liabilities The company’s total liabilities were Baht 509.75 million, an
increased by Baht 79.46 million from the previous year or 18.47%. The
main transactions were increased in Account payable Baht 70.82 million,
other Account payable increased Baht 23.92 million, other current
liabilities increased Baht 4.28 million, Advances received from sale of
goods increased Bath 3.89 million and repayment of long-term loans from
financial institutions Baht 25.00 million.

The Shareholders’ Equity In 2015, the balance was Baht 2,270.15 million,
a decreased by Baht 122.47 million from previous year or 5.12%
decreased. , decreased in fair value change in available for sale
investments Baht 34.01 million and the operation for the year 2015 had
net loss of Baht 88.46 million.

Statement of Cash Flow

The statement of cash flow for the year ending December 31, 2015 shows
that the company had cash and cash equivalents decreased from balance as
at December 31, 2014 by Baht 211.13 million. The cash flow was separated
from each activity as the following :

1. Net cash flow use in operating activities in the amount of Baht
(52.27) million, there were main activities as the following :

  --------------------------------------- -------------- ----------------
  - Cash received form operation.         104.49         Million Baht

  - Cash received from trade accounts     70.77          Million Baht
  payable.                                               

  - Cash received in advances received    3.56           Million Baht
  from sale of goods.                                    

  - Cash used in trade accounts           (159.08)       Million Baht
  receivable.                                            

  - Cash used in inventories.             (55.37)        Million Baht

  - Cash used in other current assets.    (8.76)         Million Baht

  - Cash used in employee benefit.        (7.11)         Million Baht

  - Cash used in other receivable.        (5.58)         Million Baht
  --------------------------------------- -------------- ----------------

2. Net cash flow use in investing activities in the amount of Baht
(129.83) million, there were main activities as the following :

  ------------------------------------------------- ---------- ------------
  - Cash received from dividend from associated     25.81      Million Baht
  company.                                                     

  - Cash used for increasing of investment in       (140.55)   Million Baht
  plantation operations.                                       

  - Cash used in purchases of property, plant and   (15.09)    Million Baht
  equipment.                                                   
  ------------------------------------------------- ---------- ------------

3. Net cash flow used in financing activities in the amount of Baht
(29.04) million ,there were main activities as the following :

+------------------------------------------------+--------+-----------+
| - Repayment of long-term loans from financial  | (      | Million   |
| institutions.                                  | 25.00) | Baht      |
+------------------------------------------------+--------+-----------+
| - Cash paid interest expense.                  | (3.14) | Million   |
|                                                |        | Baht      |
+------------------------------------------------+--------+-----------+
| -   Repayment of finance lease liabilities     | (0.90) | Million   |
|                                                |        | Baht      |
+------------------------------------------------+--------+-----------+