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Reporting on BIG C Financial Results Q2 of 2010

BackAug 16, 2010

11th August, 2010 To: The Director and Commissioner of the Stock Exchange of Thailand Ref: Reporting on Company's Financial Results for the Second Quarter of 2010. Dear Sir, Big C Supercenter, PCL, is pleased to report the results of it's' Company and Subsidiaries that have been examined by Ernst & Young auditors as of 30th June, 2010. The key highlights for the Second Quarter of 2010, as compared to the same period of 2009, are the recognition of the estimated negative impact from the fire incident which occurred at the Rajdamri store since May 19 to June 30, 2010, in the amount of Baht 371 million. However, these impacts are virtually certain to be recovered by insurance claims so the Company also recorded an insurance recovery income for the same period. Even taking these negative impacts into consideration, the Company is still performing well as shown in the following highlights: Retail sales up: +2.4% Steady growth in rental income: +2.8% Double-digit growth in operating profit: +12.7% Operating profit margin maintained at a high level: 5.3%, +50 bp Double-digit net profit: +15.8% In the context of the continuing economic downturn and political turbulence in Thailand, the Company confirms its strong profitability profile. The dual retail-property management model, based on synergistic interaction between retail and real estate management, demonstrated its' resilience despite the economic and political uncertainty. At the end of 30 June 2010, the Company operated 67 hypermarkets and 66 shopping malls. The Big C - Rajdamri store is temporarily closed for refurbishment. The operating results of the Company and its Subsidiaries for the Second Quarter of 2010, reflected a net profit of Baht 686 million, compared to a net profit last year of Baht 592 million, which represents an increase of Baht 94 million, or 15.8%. The satisfactory performance of the Company during the Second Quarter is due to the following reasons: 1. Net Sales: Net Sales during the Second Quarter of 2010 amounted to Baht 18,399 million for the Company and its Subsidiaries, which represented an increase of Baht 428 million, or 2.4% over the same period of last year. Same store sales, excluding the sales impact from the fire incident at the Rajdamri store, showed satisfactory improvement in this quarter, especially in upcountry stores. 2. Rental and Service Income from Tenants: Rental and Service Income from Tenants amounted to Baht 1,056 million in the Second Quarter of 2010, which represented an increase of Baht 29 million, or 2.8% over the same period of last year. The increase resulted from a net improvement of the annual rental revenue increase together with a negative rental revenue impact due to the temporary closure of the Rajdamri store. 3. Other Income: Other Income, including income from suppliers' subsidies of in-store promotions and manufacturer promotions, income from logistics optimization and others in the Second Quarter of 2010, amounted to Baht 2,176 million which represented an increase of Baht 102 million, or 4.9% over the same period of last year. The increase in other income was mainly driven by the higher subsidies of suppliers from the strong sales promotion campaigns in the quarter and the booking of indemnity recovered by Business Interruption losses from the fire incident at the Rajdamri store in the amount of 42 million Baht. 4. Gross Profit: Gross Profit of Baht 984 million in the Second Quarter of 2010 represented a slight increase of Baht 18 million, or 1.9% over the same period of last year, due to the sales promotion campaigns launched to support consumption in the context of economic uncertainty and political turbulence. However, the overall profitability of the Company and Subsidiaries is still solid, showing satisfactory performance. 5. Selling and Administration Expenses: Selling and Administration Expenses of Baht 3,247 million in the Second Quarter of 2010 represented an increase of Baht 19 million, or 1.3 % over the same period of last year. 6. Finance Cost: Finance Cost for the Second Quarter of 2010 was only Baht 0.5 million which represented a decrease of Baht 29 million, or 96.7% over the same period of last year, as a result of lower financial debt in the quarter. 7. Corporate Income Tax: Corporate Income Tax for the Second Quarter of 2010 amounted to Baht 278 million, an increase of Baht 44 million, or 19.2% over the same period of last year. Sincerely yours, Ms. .Rumpa Kumhomreun CFO and Vice President, Accounting and Finance