Department StorePublic Company Limited

ANNUALREPORT 2007

Robinson Department StorePublic Company Limited and its Subsidiaries

CONTENTS

Message to ShareholdersFinancial HighlightsOperating Results in 2007Market and Retail Business Overview in 200707History and Major DevelopmentsStructure of the Company and its subsidiariesNature of BusinessRisk FactorsShareholders and Dividend PolicyManagementGood Corporate Governance and Corporate Social ResponsibilityReport of the Audit CommitteeStatement of Directors ResponsibilityManagement Discussion and AnalysisAnnual Financial StatementInter-Company TransactionsGeneral Information

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2Message to Shareholders

This year marked the 28th year that Robinson Department Store has opened its door to customers. At present, there are 21 branches covering high potential areas throughout the country. The Company has always been striving to provide fashion products that are of great variety, while continually keeping pace with fashion trends. In addition, products which are available only at Robinson have also been developed and provided at reasonable prices along with excellent service to ensure continued customer satisfaction.

2007 was again a year of great pride with the opening of our 21st branch in Phuket. Complete with modern design, the new Jungceylon branch which opened in September has successfully gained positive responses from customers. In addition, the Company also expanded and renovated the Chiang Mai branch to become a flagship store, strengthening its position as a leading department store and fashion centre in the region.

The overview of economic situation in 2007 was rather stagnant. Consumption of the private sector grew at a slow pace due to a decrease in consumers spending. However, there was heavier competition in the department store business especially in Bangkok area. With clear strategic planning and efficient operation, the Company experienced an ongoing growth with a sales increase of 4.4% in 2007. With successful revenues growth, efficient expenses management both in terms of human resources distribution and sales promotion along with ongoing energy-saving measures, the Company was able to achieve net profit of Baht 864 million, or 20% higher than profit from ordinary operation last year.

Regarding good corporate governance, the Companys board of directors has exerted great efforts to continuously upgrade the standard of corporate governance with a firm belief that it will result in the Companys sustainable growth. In the year 2007, the Company set a goal to upgrade the corporate governance to accepted standard. As a result, the policy of corporate governance was improved. Business ethics was also set up for participation of the Companys directors, management, and staff. In addition, the Company's board of directors was restructured to comply with the principles of good governance.

In the year 2008, the Company aims to introduce new experiences to customers both in terms of product and service to serve each customer individual needs. The Company has a strong belief that sales growth, effective expenses control coupled with investment discipline will lead to added value for shareholders. It also recognizes the importance of stakeholders in compliance with the Companys good corporate governance policy.

Apart from business planning, Robinson believes that sustainable growth must be accompanied by Corporate Social Responsibility. Realizing the importance of this matter, the Company has set a clear target and plan to create cooperation from every party including Robinson, its staff and customers for sustainable responsibility to society. This also includes the provision of educational opportunity to less fortunate children in order to develop their knowledge and upgrade their education to accepted standards.

Finally, the Companys board of directors would like to express their sincere thanks to shareholders, customers, and business partners who have played a supporting role in the Companys continuous growth, along with all staff members for their dedication and tireless efforts to every task. We strongly hope for their success and bright future together with Robinson in the coming years.

(Mr. Sudhisak Chirathivat)

Robinson Department StorePublic Company Limited and its Subsidiaries

3Robinson Department StorePublic Company Limited and its Subsidiaries

Board of Directors

Mr. Sudhisak ChirathivatChairman of Board of Director(Authorized Director)

Mr. Sudhitham ChirathivatVice Chairman(Authorized Director)

Mr. Prin ChirathivatDirector(Authorized Director)

Mr. Tos ChirathivatDirector(Authorized Director)

Mr. Preecha EkkunagulDirector/ President(Authorized Director)

Mr. Pandit MongkolkulDirector(Authorized Director)

Mr. Piya NguiakaramahawongseDirector(Authorized Director)

Mr. Somchai ApiwattanapornDirector/ Independent Director/Chairman of Audit committee

Mr. Vithaya ChavananandDirector/ Independent Director/Audit committee

Mr. Phibul PhatharodomDirector/ Independent Director/Audit committee

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4Robinson Department StorePublic Company Limited and its Subsidiaries

Financial Highlights

Remark: For the year ended 2006, the company and its subsidiaries recorded a gain from reversal of impairment loss on land and leasehold rightsamounted of Baht 2,170 million and allowance for obsolete and slow-moving stock of Baht 227 million

Revenue Breakdown

Reversal ofimpaiment loss on assets

Other income

Rental and service income

Sales

20040

3,000

6,000

9,000

12,000

15,000(Million Baht)

9,941

2005

10,955

2006

14,200

2007

12,602

Sales Growth

20040

3,000

6,000

9,000

12,000

15,000(Million Baht)

13.8%

2005

11.1%

2006

10.1%

2007

4.4%

Gross Profit vs. Net Profit

Net Profit

Extraoridinary Item

Gross Profit

(Million Baht)

0500

1,0001,5002,0002,5003,000

2004 2005 2006 2007

Men's Wear 27%

Ladies's Wear17%

Children's Wear11%

Cosmetic & Accessories30%

Home Gift and Toys15%

Debt to Equity

Debt

Equity

(Million Baht)

20040

1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2005 2006 2007

1.96x

4,873

2,482

1.42x

3,569

2,506

0.67x

3,465

5,169

0.59x

5,693

3,337

Sales Mix by Category

5Revenue from salesTotal revenueCost of salesSelling and administrative expensesNet profit (loss)

2007 20052006*

(Unit : Million Baht)Consolidated

11,28512,6028,6852,821864

10,81214,2008,3822,9042,662

9,81710,9557,6422,353927

Cash and cash equivalentsCurrent assetsTotal assetsCurrent liabilitiesTotal liabilitiesIssued and paid-up share capitalRetained earnings (deficit)Minority interestTotal shareholder's equity

1,5712,8149,0303,2623,3373,9431,419155

5,693

9972,1388,6353,3803,465

11,107992140

5,169

1,0301,9056,0742,7633,569

11,107(1,618)

1382,506

Profit and Loss Statement

(time)(days)(days)(days)

(%)(%)(%)(%)

(time)(Baht)(Baht)

*Remark: For the year ended 2006, the company and its sunsidiaries recorded a gain from reversal of impairment loss on land and leaseholdrights amounted of Baht 2,170 million and allowance for obsolete and slow-moving stock of Baht 227 million

Balance Sheet

Liquidity RatioAverage Collection PeriodAverage Selling PeriodAverage Payment PeriodGross Profit MarginNet Profit Margin Return on EquityReturn on AssetsDedt to Equity Ratio Book Value Per ShareBasic Earning Per Share

0.8611.4727.21

100.1723.047.66

15.929.790.595.130.78

0.639.13

26.9490.0222.4724.6269.3636.190.674.652.40

0.697.78

25.7581.1222.169.45

37.1813.811.422.260.83

Key Financial Ratios

Robinson Department StorePublic Company Limited and its Subsidiaries

Financial Highlights

2007 20052006*

(Unit : Million Baht)Consolidated

2007 20052006*

Consolidated

6Robinson Department StorePublic Company Limited and its Subsidiaries

With a goal to become the most preferred department store with branches covering high potential areas throughout the country, the Company operates retail business which provides modern products and services in response to the lifestyles and demands of each customer. Under the concept of Robinson...Your Life Revitalizer, the Company aims to expand its branches throughout the country. There are currently 21 branches, comprising 10 branches in Bangkok and its suburbs and 11 provincial branches. Opened in September 2007, Jungceylon branch, the 21st branch, is the second branch in Phuket located at Jungceylon Shopping Mall, Patong beach, Phuket Province.

Regarding competitive strategy, the Company places emphasis on providing fashion products that are of great variety and fashionable, while continuously creating unique merchandise assortment and been available only at Robinson. The company also stresses the provision of excellent service to make customer impression including fashion consult, information on product uses as a value-added service for easy decision making. Regarding marketing, the Company organizes main sales promotional programs in the form of event marketing or themed promotions quarterly in order to create a shopping atmosphere according to the seasons and fes