pico: annual report 2006

GLOBAL NETWORK

Contents

36 Transparency and Governance

37 Social Responsibility

38 Market and Competition

39 Research and Development

39 Future Projects

40 2006 Economic Review and Outlook

for 2007

41 Risk Factors

42 Operating Results and Financial Standing

51 Other References

52 Intercompany Transactions

57 Report of The Independent Certified Public

Accountants

58 Consolidated and Company Financial

Statements

1 Financial Highlights 2006

3 Message from Chairman of the Boards

of Directors

4 Message from Chairman of the Executive

Committee

5 Report of the Audit Committee 2006

6 General Information

8 Pico Group International Network

12 Scope of Business

21 Board of Directors / The Audit Committee /

The Executive Committee

26 Organizational Structure

27 Management Structure

34 Shareholding Structure

35 Business Objectives

Financial Highlights 2006

716.5

182.5

172.1

100 300 500 700 900 1,100

71.3

247.3

41.7

41.2

527.3

370.0

315.5

264.4

100 300 500 700 900 1,100

244.0

209.8

144.9

126.0

429.2

2006

2005

2006

2005

2004

2006

2005

2004

2006

2005

2004

2006

2005

2004

2006

2005

2004

Financial Performance

Revenue from the rendering of services

Net Profit

2004

Financial Status

Total Assets

Total Liabillties

Total Shareholders‘ Equity

Financial Ratios

(Unit : Million Baht)

(Unit : Million Baht)

2006 2005 2004

Liquidity Ratio 2.0 2.4 2.4

Debt to Equity Ratio 0.7 0.5 0.5

Gross Profit Margin 22.3% 25.5% 26.9%

Operating Profit Margin 8.5% 8.0% 10.0%

Net Profit Margin 6.4% 5.8% 6.4%

Return on Assets 14.9% 10.4% 13.6%

Return on Equity 23.7% 15.8% 22.5%

Earning per Share (Baht) 0.62 0.36 0.39

Book Value per Share : (Baht) 2.78 2.48 5.24

639.1

Gross Margin

1,0376

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PICO’s highest goal is the customer’s satisfaction.

annual report 2006

Pico (Thailand) Public Company Limited 3

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Message from Chairmanof the Board of Directors

The past year was one of our best years with a

significant increase in turnover and net income. Our

turnover amounted to Baht 1,112 million with a net profit

after taxes of baht 71 million representing an increase of

45% and 71% respectively. This increase directly reflects

our successful marketing campaign, sound cost control and

effective deployment of human resources.

Look ing forward, we see the cont inu ing

domestic and global factors that could possibly impact our

operation. Some of these are the fluctuating energy prices,

international conflicts and domestic political uncertainty, and

the potential communicable disease pandemic. To meet with

these contingencies, our plan will allow us to move quickly

in adjusting to changes. We will also focus on leveraging

the regional and worldwide network of Pico, and drawing

on the expertise and experience to enhance our business

opportunities.

Lastly, since this is the most joyous year for Thailand

and its people with the celebration of His Majesty’s 60

years accession to the throne and upcoming 80th Birthday

in 2007, the Board of Directors and I join the nation in

offering His Majesty our salutation and prayer for his

health and happiness.

(Mr. Chia Song Heng)

Chairman of the Board of Directors

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We expect the similar or less market expansion in

year 2007 than 2006. The competition will be intense with

the expected economic slowdown and the uncertainty of

the Government spending in this sector.

We will sharpen our business model and focus on

distinct and complete service offering. For example, the

event marketing will cover all aspects of marketing services

while the “knowledge communication” will be emphasized

in the museum, permanent/semi-permanent exhibition,

visitor center and knowledge center. Our investment

in supportive businesses will be very selective and focus

on the stated plan.

This year we implemented the “Employee

Happiness Index” which reflects our concern for staff

welfare and a sustainable growth in the long term.

Lastly on behalf of the management I would like

to thank our clients and shareholders in giving us your

continued trust and support and our staff for their ever

dedicated and consistent efforts.

Mr. Pised Chungyampin

Chairman of the Executive Committee

Message from Chairman of the Executive Committee

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3. Intercompany transact ion. Al l re lated

transactions were audited to ensure that there were no

conflicts of interest and that the involved transactions were

conducted at arms length and are verified as normal business

engagements. The company is well aware of this policy on

related transactions.

4. Internal audit. During 2006 a quarterly review

was undertaken on the approved internal audit program.

Additionally, at mid year a policy review of the audit program

was conducted to ensure that the process is in line with the

changes in business environment. This was to ensure an

effective and accurate financial reporting in accordance with

the legal framework and regulations as announced by the

relevant authorities.

5. Risks Management. Risks management is

reviewed quarterly to ensure compliance to established

guidelines. Risk factors were identified, probability and

repercussions evaluated and mitigating action plan suggested to

management. The company’s r isks management

throughout 2006 is satisfactory and no risks that would

materially impair operation were found.

6. Appraisal of the internal control process of the

company. The internal control process was reviewed and

appropriate and effective changes made to accommodate

the changes in the economy. The internal auditor’s review

and comments made are in line with those observed by the

external auditor in the quarterly and annual audit process.

No substantive problems or material deficiencies were noted.

Consistent recognition and rationalization of potential

problems noted by management with appropriate rectifying

measures undertaken during the period under review.

On behalf of the Audit Committee

(Dr. Chaiyod Bunyagidj)

Chairman of the Audit Committee

Pico (Thailand) Public Co., Ltd.

Reportof the Audit Committee 2006

In 2006 the audit committee duly carried out its

responsibility in accordance with the scope of authority

delegated by the Board of Directors of Pico Thailand.

This includes the duties as prescribed by the regulation

governing audit committee and to ensure that good corporate

governance is adhered to. During the year 4 meetings were

held with the results summarized as follows:

1. Good governance practice. A process to check and

ensure that practices leading to good corporate governance

is in place and compliance monitored.

2. Supervision and auditing of quarterly and annual

financial reports consolidated and unconsolidated for 2006.

Measures were adopted so that the preparation of the reports

are in full compliance with the accounting standard and

adheres to the Generally Accepted Accounting Principles and

the announcements of the Securities Exchange Commission

and Stock Exchange of Thailand both in terms of adequate

disclosure and timely completion.

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Name Pico (Thailand) Public Company Limited

Corporate Registration 0107546000296

Address 10 Soi Lasalle 56, Sukhumvit Road,

Bangna District, Bangkok 10260

Telephone 0-2748-7007

Facsimile 0-2745-8521, 0-2748-7591

Website www.picothai.com

Registered Capital 115,000,000 Baht

Paid up Capital 114,999,980 Baht

Par value 1 Baht

General Information

Pico (Thailand) is a joint venture between Thai

investors led by Mr. Pised Chungyampin and Pico Art

International of Singapore, a subsidiary company of Pico

Far East Holding is a Hong Kong listed event marketing

company with a worldwide network of 30 branches in 26

countries.

Pico (Thailand) is in the business of event

marketing service and the turnkey event and exhibition

management. We conceptualize, design and produce

the exhibition/ activity in accordance with the client’s

marketing concept. This is then executed in several formats

such as trade show, multi media presentation, museum

exhibit and etc.

To better and more effectively serve our clients

we have made several investments in related businesses

such as PX System which provides rental equipment such

as exhibition booths. Artcom Graphic which design

specializes in the graphic design and printing for internal

and external exhibition. Multi Designs specializes in the

latest innovation in display design and decoration.

In addition there are 4 associated companies. Inkjet is in

the large-format printing, billboard printing and graphic

production. BEC-Tero Exhibition was formed to draw on

the experience of the partners in tapping a specializes

niche market. IBRIX is in the trade show and related

business. DesignLab is a specialist in architectural and

interior design trade show and display design and

electronic media for the knowledge communication

business. As often seen in the semi permanent display in

museum.

We are committed to excellence in service quality and

consistently conduct our own appraisal using internationally

accepted criteria. Pico was the first Thai company in the trade

exhibition business to be awarded with the ISO9001:2000

from the ISO – Energy & Environmental Accredited Quality

Assessment (EAQA)

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The wealth creation among

all shareholders and stakeholders through

the conduction of corporate governance

policy is PICO’s responsibility.

annual report 2006


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Principal Offices

AtlantaPico Atlanta, Inc. 5361 Royal Woods Parkway, Tucker, GA 30084, USATel 1 - 770 - 414 1114 Fax 1 - 770 - 414 [email protected] Person: Mr. Evarts English

BahrainPico International (Bahrain) W.L.L. No 1 Manama Centre, Government Avenue, Manama Town 316, Kingdom of BahrainTel 973 - 17 - 218898 Fax 973 - 17 - [email protected] Person: Mr. Miswadi B S

BangkokPico (Thailand) Public Company Limited10 Soi Lasalle 56, Bangna Sub-district,Bangna District, Bangkok 10260, Thailand Tel 66 - 2 - 748 7007 Fax 66 - 2 - 748 [email protected] Person: Mr. Pised Chungyampin

BeijingBeijing Pico Exhibition Services Co., Ltd. Pico Centre, 8 Li Shui Qiao Bei, Chaoyang District, Beijing 102218, ChinaTel 86 - 10 - 8482 3991 Fax 86 - 10 - 6491 [email protected] Person: Mr. Victor Leung

BruneiPico International (B) Sdn Bhd Block A, Unit 10, 1st Floor, Kiarong Complex, Lebuhraya Sultan Hassanal Bolkiah,BE1318 Bandar Seri Begawan, BruneiDarussalamTel 673 - 2426 - 990Fax 673 - 2426 - 991 [email protected] Contact Person: Mr. Peter Ng

CairoPico International (Egypt) Limited18, Al Lowaa Mahmoud Samy Street, 3/F., Nasr City, Cairo, EgyptP.O. Box: 11671, EgyptTel 20 - 2 - 671 7804 Fax 20 - 2 - 671 [email protected] Contact Person: Mr. Taha Youssef

Chicago Pico Chicago1881 Circuit Drive, Round Lake Beach,IL60073, USATel 1-847-740-0846Fax [email protected] Person: Mr. Tack Roberts

ChongqingChongqing Pico Exhibition Services Co., Ltd.1703-4, Tower A, Times Square Apartment, No. 3 Young Road, Yuzhong District,Chongqing 400010, ChinaTel 86 - 23 - 6371 0990 Fax 86 - 23 - 6371 [email protected]

Chengdu Represe Native Office:1605 City Beat,No.16 Daye Road, Jinjiang District,Chengdu 610016, ChinaTel 86 - 28 - 8672 2039, 8672 2049Fax 86 - 28 - 8672 [email protected] Person: Ms. Allen Li

ColomboIntertrade Lanka Management PvtLimitedSri Lanka Exhibition and ConventionCentre, 12 D.R. Wijewardena Mawatha, Colombo 10, Sri LankaTel 94 - 11 - 234 3239-41 / 234 2903-5 Fax 94 - 11 - 234 [email protected] Person: Ms. Shanti Outschoorn

Doha Pico International (Qatar) W.L.L.No. 88 ASCO Compound, C-Ring Road, New Salata, P.O. Box 24403, Doha, State of QatarTel 974 - 467 7988Fax 974 - 467 [email protected] Person: Mr. YC Leong

DongguanDongguan Pico Exhibition Services Co., Ltd.Reservoir Ind District 1 Road,Guan Jing Tou, Dongguan 523705, ChinaTel 86 - 769 - 777 4471Fax 86 - 769 - 777 [email protected] Contact Person: Mr. Ang Swee Meng

DubaiPico International (Dubai) L.L.C.Office No. 520, Building 8,5th Floor Dubai Media City,P.O. Box 37679,Dubai, United Arab EmiratesTel 971 - 4 - 339 3188Fax 971 - 4 - 339 [email protected] Person: Mr. Peter Sng

GuangzhouGuangzhou Pico Exhibition Services Co., Ltd.Room 701-2, Dongshan Plaza, 69 Xian Lie Road Central,Guangzhou 510095, ChinaTel 86 - 20 - 8732 2990Fax 86 - 20 - 8732 [email protected] Person: Mr. Tony Lau

Pico Group International Network

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TaipeiPico International Taiwan Limited3/F, No. 343, Nanking East Road, Section 5, Taipei, TaiwanTel 886 - 2 - 2753 5990Fax 886 - 2 - 2766 [email protected] Person: Ms. Florence Tan

TokyoPico International LimitedTokuda Building 4F,7-3 Nihonbashi Kabutocho, Chuo-ku,Tokyo 103-0026, JapanTel 81 - 3 - 3808 0891Fax 81 - 3 - 3808 [email protected] Person: Mr. Tsunemichi Yui

Other Operating Companies

Albert Smith China Co., Ltd. Shanghai Head OfficeAlbert Smith Bldg, 36 Cao Lian Road,Lian Xi Cun, Huangdu Town, Jiading District, Shanghai 201804, ChinaTel 86 - 21 - 6959 6990Fax 86 - 21 - 6959 0611/6959 [email protected], [email protected] Person: Mr. Danny Ku Beijing Rep Office:Tel 86 - 10 - 8484 8880Fax 86 - 10 - 8484 7780Shenzhen Rep Office:Tel 86 - 755 - 8290 0516Fax 86 - 755 - 8295 1282

BizArt Asia LimitedPico House, 4 Dai Fu Street,Tai Po Industrial Estate, N.T.,Hong Kong SARTel 852 - 2660 2828Fax 852 - 2660 [email protected] Person: Mr. Martyn Minns

GMC Worldwide Limited Pico House 4 Dai Fu Street,Tai Po Industrial Estate NT, HONG KONG SARTel 852 - 2660 4506Fax 852 - 2664 [email protected] Person: Ms. Sharon Soh

Pudong Pico Exhibition Producer Co., Ltd.Shanghai Pudong Area KangQiaoIndustrial Park, No. 628 KangQiao Road,Shanghai 201315, ChinaTel 86 - 21 - 5812 5868Fax 86 - 21 - 5812 [email protected] Contact Person: Mr. Chia Chee Wee

HanoiPico Hanoi Limited214 Nguyen Luong Bang Street, #02-01,Dong Da District, Hanoi, VietnamTel 84 - 4 - 513 1038 / 513 1039 / 513 1040Fax 84 - 4 - 513 [email protected] Person: Mr. Vincent Hu

Ho Chi Minh City Pico Hochiminh City Limited446 Hoang Van Thu Street, 1st Floor, Tan Binh District, Ho Chi Minh City, VietnamTel 84 - 8 - 948 5060Fax 84 - 8 - 948 [email protected] Person: Mr. Chung Chee Keong

Hong KongPico International (HK) LimitedPico House, 4 Dai Fu Street,Tai Po Industrial Estate, N.T.,Hong Kong SARTel 852 - 2665 0990Fax 852 - 2664 [email protected] Person: Mr. Steven Fang/Ms. Anne Li

Kuala LumpurPico International (M) Sdn BhdWisma Pico, 19-20 Jalan Tembaga SD5/2,Bandar Sri Damansara, 52200 Kuala Lumpur, MalaysiaTel 60 - 3 - 6275 5990Fax 60 - 3 - 6275 [email protected] Person: Mr. Peter The

LondonPico Exhibition (UK) Limited1 Victoria Villas, Richmond, Surrey, TW9 2JX United KingdomTel 44 - (0)20 - 8948 6211Fax 44 - (0)20 - 8948 [email protected] Person: Mr. Daren Chia

Los AngelesPico Art Exhibit Inc.20910 Normandie Ave., Unit #D, Torrance,CA 90502, USATel 1 - 310 - 328 6990Fax 1 - 310 - 328 [email protected] Person: Mr. Jolly Chang

MacauPICO International (Macao) LimitedAv. Da Amizade, No. 918, World Trade Center Building, 7/F, Flat D, MacaoTel 853 - 727 990Fax 853 - 727 [email protected] Person: Ms. Elizabeth Chu

MelbournePico Australia Pty LimitedLevel 2, 19-23 Prospect Street, Box Hill VIC 3128, AustraliaTel 61 - 3 - 9897 3500Fax 61 - 3 - 9897 3700 [email protected] Person: Mr. Anthony Tan

New DelhiPico International Exhibition Pvt LimitedPico Bhawan, A-27/15, Khanpur Extension,New Delhi 110062, IndiaTel 91 - 11 - 2609 7063/64Fax 91 - 11 - 2609 [email protected]@pico.comContact Person: Mr. Edwin Ng

Paris Pico Paris succ de Pico Exhibition (UK) Limited14/30 rue de Mantes, 92700Colombes, France Tel 33 - 1 - 4649 8000Fax 33 - 1 - 5683 [email protected] Person: Mr. Marc Tronson

SeoulPico North Asia Limited4F Sang Won Building, 165-11, Samsung-dong, Kangnam-ku, Seoul 135-090, Korea Tel 82 - 2 - 558 3240Fax 82 - 2 - 561 [email protected] Person: Mr. Jeferson Jo

ShanghaiShanghai Pico Exhibition Services Co., Ltd.Pico Building, 118 Chen An Road,Hu Yi Highway, Malu Town, Jiading DistrictShanghai 201801, ChinaTel 86 - 21 - 5910 0990Fax 86 - 21 - 5910 [email protected] Person: Ms. Florence Tan

Shenzhen Shenzhen Pico Exhibition Services Co., Ltd.Room 1309 - 1310 Building A, United Plaza, 5022 Binhe Road, Futian Centre District,Shenzhen 518033, ChinaTel 86 - 755 - 8290 0540Fax 86 - 755 - 8295 [email protected] Person: Ms. Rita Lui

SingaporePico Art International Pte LtdPico Creative Centre, 20 Kallang Avenue,Singapore 339411Tel 65 - 6294 0100Fax 65 - 6291 [email protected] Contact Person: Ms. Jean Chia

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IES GroupIES-BEIJING: Pico Center, 8 Li Shui Qiao Bei,Chaoyang District, Beijing 102218, China Tel 86 - 10 - 8484 7975 ext 1004 Fax 86 - 10 - 8484 7957 [email protected] Contact Person: Mr. Steven Hoe

IES-GUANGZHOU: Rm 701A Dongshan Plaza, 69 Xianlie Road Central, Guangzhou 510095, ChinaTel 86 - 20 - 8732 2990Fax 86 - 20 - 3758 8731/3758 [email protected] Contact Person: Mr. Bill Chan

IES-HONG KONG: Pico House, 4 Dai Fu Street, Tai Po Industrial Estate, New Territories, Hong KongTel 852 - 2665 0990Fax 852 - 2664 [email protected] Person: Mr. Cheung Kwok Wing

IES-SHANGHAI:No.628 Kangqiao Road, Pudong District,Shanghai 201315, ChinaTel 86 - 21 - 5812 8882Fax 86 - 21 - 5812 [email protected] Person: Mr. Alloysius Teng

Chongqing International Convention and Exhibition CenterChongqing Nanping Convention And Exhibition Center Management Co., Ltd.2 Jiang Nan Avenue, Nan An District, Chongqing 400060, China Tel 86 - 23 - 6260 9001/6260 9000Fax 86 - 23 - 6260 [email protected]@picoworld.comContact Person: Mr. Louis Cheng

Ho Chi Minh City International Exhibition and Convention CentreHIECC Management Co., Ltd.2nd Level, 446 Hoang Van Thu Str., Tan Binh District, Ho Chi Minh City S.R. VietnamTel 84 - 8 - 845 1088/ 845 0454Fax 84 - 8 - 845 1080 [email protected] Person: Mr. Low Wan Thiam

MP InternationalSingapore Office:MP International Pte Ltd 20 Kallang Avenue, 2nd Floor, Pico Creative Centre,Singapore 339411Tel 65 - 6297 2822Fax 65 - 6296 [email protected] Person: Ms. Sylvia Phua

Beijing Office:Beijing Pico Exhibition Services Co., Ltd.Pico Centre, 8 Li Shui Qiao Bei, Chaoyang District, Beijing 102218, ChinaTel 86 - 10 - 8481 5260Fax 86 - 10 - 8484 7780 [email protected] Person: Ms. Esther Ho

Shanghai Office:MP International (Shanghai) Pte LtdFL 11E Jinming Building, No.8 South Zunyi Road, Shanghai 200336, China Tel 86 - 21 - 62959990 Fax 86 - 21 - [email protected] Contact Person: Mr. Brian Ge

Hong Kong Office:Meeting Planners International (HK) Limited 23/F, Pico Tower, 66 Gloucestor Road, Wanchai, Hong Kong SARTel 852 - 2509 3430Fax 852 - 2509 [email protected] Person: Ms. Anita Cheng

Pico Conference Centre Limited13/F, Pico Tower, 66 Gloucestor Road, Wanchai, Hong Kong SARTel 852 – 2509 9033Fax 852 - 2509 [email protected] Person: Mr. Ho Koon Dow

Pico Hong Kong Limited (Museum, Theme Park, Interior)Pico House, 4 Dai Fu Street, Tai Po Industrial Estate, N.T., Hong Kong SARTel 852 - 2689 5100Fax 852 - 2665 [email protected] Person: Mr. E K Cheng

Shanghai Pico Media Service Co., Ltd.Building 2 Huiyi Garden, No.905 Hushan Road,Shanghai 200031, ChinaTel 86 - 21 - 6387 5363Fax 86 - 21 - 6437 [email protected] Person: Mr. Alec Chau, Mr. Brian Au

Shanghai World Expo Bizarts China Co., Ltd.Flat F, 11/F, Block 2, Jin Ming Building,8 Zun Yi Road South, Shanghai 200336, ChinaTel 86 - 21 - 6219 9990Fax 86 - 21 - 6295 [email protected] Contact Person: Ms. Florence Tan

Expoman Limited11/F, Pico Tower, 66 Gloucester Road,Wanchai, Hong Kong SARTel 852 - 3101 8318Fax 852 - 3102 [email protected] Person: Mr. Terence Chiu

World Events Organisation Pte Limited 2nd Floor , Pico Creative Centre, 20 Kallang Aveneue, Singapore 339411Tel 65 - 6393 0206Fax 65 - 6392 [email protected] Person: Mr. Andrew Lee

Agents

AnkaraOmni International Yesityurt Sokok No 3/6, 06690 - Kavaklidere, Ankara, TurkeyTel 90 - 312 - 467 7054/467 9129Fax 90 - 312 - 467 7036Contact Person: Mr. Feyzan ErelPico Contact: Mr. Ngew Thye On

HelsinkiFairmatura KyHuopalahdentie 16 B 32 FIN-00330 Helsinki FinlandTel 358 - 9 - 4584544Fax 358 - 9 - [email protected] Person: Ms Maarit KaasinenPico Contact: Mr. Daren Chia

KingstonUnilink98 Kenwoods Circle, Kingston, ON, K7K 6Y2 CanadaTel 613 549 0404Fax 613 549 [email protected] Person: Derek V. ComplinPico Contact: Ms. Florence Tan

MadridBrifer Services S.L. Arturo Soria, 320, 28033 Madrid, SpainTel 34 - 91 - 7672767Fax 34 - 91 - [email protected] Person: Ms. Brita SeligmannPico Contact: Mr. Daren Chia

MilanoSeint Sri (Int’l Exhibition Services)Centro Direzionale Milanofiori, Palazzo F1, 20090 Assago (Milano), ItalyTel 39 - 02 - 825 3326/825 4110Fax 39 - 02 - 825 [email protected] Person: Ms. Franca VegliaPico Contact: Mr. Daren Chia

AthensXenophon Stefanidis Consulting Architect, 10 Nirvana Street, GR 15451 Athens, GreeceTel 30210 - 671 7222Fax 30210 - 672 [email protected] Person: Xenophon StefanidisPico Contact: Mr. Ng Meng Chuen

annual report 2006


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PICO’s employees and

staffs would enjoy the happiness of

working environment.

annual report 2006


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Scope of Business

Background Growth and Development

Background

Pico (Thailand) Public Company Limited was

incorporated in 1981 when Pico Far East Holding Limited

(Pico Far East), a Hong Kong listed company well known in

trade exhibition, with 30 offices worldwide, decided to

invest in Thailand and joined forces with Thai investors led

by Mr. Pised Chungyampin. Pico Thai Exhibition Contractor

Co. Ltd. was incorporated with Pico Art International

Pte. Ltd., Singapore (“Pico Art”) as a partner.

Changes and development

With the expansion of business, an organizational

change involving investment and shareholding to

accommodate future growth was made resulting in

the incorporation of Pico International Enterprise

(Thailand) Ltd. with a capital of Baht 15 million with Pico

Art, a subsidiary company of Pico Far East holding 49%

and Thai shareholders 51%.

Additional subsidiaries were formed to provide a

more effective and comprehensive product offering and

service delivery. These subsidiaries are:

Px System Co. Ltd. (PX)

Artcom Graphic Co. Ltd. (Artcom)

Multi Designs Co. Ltd. (Multi Designs)

An associate company was also created;

Inkjet Images (Thailand) Co., Ltd. (Inkjet)

Subsequently the name was changed to Pico

(Thailand) Co., Ltd. and transformed to become Pico

(Thailand) Public Co., Ltd. under the Public Company Act of

B.E. 2535 on 16th September 2003. Capital was also

increased to Baht 65 million and Baht 115 million on

16th September 2003 and 25th February 2005 respectively.

Overview of the Company, subsidiaries and associated companies Pico (Thailand) Public Co., Ltd. conducts a face to

face event marketing. This means marketing activities

which create an opportunity for customers to meet and to

react directly with one another. Our business grew from

the trade show and exhibition the scope of which has been

refined, expanded with the service delivery that is market

and customer responsive.

Our operation can be divided into 2 principal areas:

1) Event Marketing

2) Knowledge Communication

Our responsibility in the conduct of business is to

research, identify the best way to communicate the

customer’s special message to the target audience. This is

done through the creation of an opportunity for a face to

face meeting. The target audience must receive an

accurate product message with a favorable response in

accordance with the customer’s marketing objective. In the

knowledge communication a good understanding of a

given subject and the ability of the audience to improve on

that understanding is our goal. The communication can

only be considered successful if this result is realized. We

pride this as the uncompromised standard in our business

conduct.

Our subsidiaries and associated companies were

established to support our business and provide various

services as follows:

1) PX System Co., Ltd. : Acquisition of facilities

for event marketing e.g. booth rental in an exhibition

2) Artcom Graphic Co., Ltd. : Graphic design and

production for interior and exterior e.g. billboards.

3) Multi Designs Co., Ltd. : Creative, design and

supply of innovation in exhibition, marketing activities and

permanent exhibits.

An associated company : Inkjet Images (Thailand)

Co., Ltd. is engaged in graphic design and production of

large-format printing e.g. billboards.

During 2006 we expanded our investment in

related businesses through 3 additional associated

companies:-

• BEC Tero Exhibition Co., Ltd. This is a trade and

business exhibition targeted at a niche market. It is

designed to draw on the experience of each partner to

penetrate specialized market.

• IBRIX Co., Ltd. is in the trade exhibition

• DesignLab MISC Co., Ltd. is a specialized design

company for services such as design for architectural,

interior decoration, display and exhibition, printed matter

and electronic media in the knowledge communication like

museum, visitor center and learning center.

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annual report 2006


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Business operation of associated company

1. PX System Company Limited (“PX”)

Shareholders %

Pico (Thailand) Plc. 89.95

Mr. Chouchai Kasemsuk 10.00 1

Others 0.05 2

Total 100.00

Capital Registration : 1.0 Million Baht

Business Type : Design and construction of booths

in an exhibition hall. Signs and

billboards and other structural works in

the merchandise exhibition or display.

Services also cover related construction

such as flooring and performing stage

and props.

2. Artcom Graphic Company Limited (“Artcom”)

Shareholders %


X-Con Co., Ltd. 15.00

Mr. Woraphong Sitthimol 14.90 1

Mr. Sangwien Phochairat 5.00

Mr. Narong Phuseenam 5.00

Others 0.10 2

Total 100.00


Business Type : All types of graphic design and

production for interior and exterior

displays e.g. billboards, automotive

stickers etc.

3. Multi Designs Company Limited (“Multi Designs”)

Shareholders %


Mr. Foo Kwee Chong 20.00 1

Others 20.10 2

Total 100.00

Capital Register : 0.4 Million Baht

Business Type : Creative, design and supply of

innovation in exhibition, marketing

activities an permanent exhibits.

Business operation of associated company

1. Inkjet Images (Thailand) Company Limited (“Inkjet”)

Shareholders %

Master Ad Plc. 33.33

Inkjet Images (M) Sdn.Bhd. Co.,Ltd. 22.22


Others 22.23 2

Total 100.00


Shareholders : Master Ad Plc. is a billboard structural

builder. This is a continuing business of

graphic printing works. Inkjet Images

(M) Sdn. Bhd. Ltd. is a Malaysian

company engaged in the same graphic

and printing business like Inkjet.

Business Type : Graphic Design printing. Billboards

2. BEC Tero Exhibition Co., Ltd. (“BEC Tero Exhibition”)

Shareholders %

BEC Tero Entertainment Plc. 51.00


Asia Congress Events Co., Ltd. 10.00

Total 100.00


Shareholders : BEC Tero Entertainment is involved in

broadcasting, advertising, television

program sourcing and production.

3. IBRIX Co., Ltd. (“IBRIX”)

Shareholders %

Industrial Design Network Co., Ltd. 59.99


Others 0.01 2

Total 100.00


Shareholders : Industrial Design Network Co. Ltd. is a

industry consultant serving clients who

are looking to improve product design,

containers and the design department

to international standard.

4. DesignLab MISC Co., Ltd.

Shareholders %

Mr. Nopadol Limwatanakul 79.99 1


Others 0.01 2

Total 100.00


Shareholders : Mr. Nopadol Limwatanakul is an

experienced architect in design

solutions for exhibition and interior

design. He was the design director at

DesignLab during 2000- 2004.

Note : 1 Member of the management of subsidiary companies in

accordance with Pico’s policy encouraging management

to participate in shareholding of subsidiaries

2 Other shareholders consist of members of the

management of the subsidiaries and associated

companies

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Revenue Structure for the past 3 years ended 31 October 2006 Past 3 years revenue structure for year ending 31 October

Revenue of the company% of share

holding

2005 2004 2003

MB % MB % MB %

Pico (Thailand) Plc.

- Event marketing business1

- Knowledge communication business2

- Others services

- Income from dividend of subsidiaries

- Other income

602.66

261.38

84.99

7.71

5.41

62.63

27.17

8.84

0.80

0.56

459.30

108.19

44.51

10.10

4.21

73.33

17.27

7.12

1.61

0.67

436.42

59.55

51.37

8.47

4.05

78.00

11.00

9.20

1.50

0.30

Total 962.15 100.00 626.31 100.00 559.86 100.00

PX System Company Limited 89.95 65.87 100.00 71.59 100.00 55.81 100.00

Total 65.87 100.00 71.59 100.00 55.81 100.00

Artcom Graphic Company Limited 60.00 51.56 100.00 35.31 100.00 41.50 100.00

Total 51.56 100.00 35.31 100.00 41.50 100.00

Multi Designs Company Limited 59.90 20.09 100.00 20.08 100.00 14.79 100.00

Total 20.09 100.00 20.08 100.00 14.79 100.00

Remark : 1. Income from the trade shows exhibition is recorded in the “Event Marketing Business“

2. Income from the permanent exhibition and museum exhibits is recorded in the“Knowledge Communication

Business”

Service Description

Event Marketing

The scope of business covers the marketing communication

for business provider in all areas of the business value-chain

such as:

• Product Owners

• Planner

• Trade Show Organizer, Event Owner

• Event Organizer, Show Managers

• Project realization and management

• Event Service Providers

Description of Services The company has 3 principal products:

1. Event Marketing

2. Knowledge Communication

3. Others

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PICO believes that social

is one of our responsibilities

to take care.

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Past projects in event marketing:

° Past projects

• Road Shows Chevrolet, Mercedes Benz, Jeep

and Ford Road shows for various products such as Chevrolet,

Mercedes Benz, Jeep and Ford in and outside of Bangkok.

• Product launch : Chevrolet Colorado Launch,

Chevy OK Day, Chevy Homecoming Day

• Road Shows for Thailand Elite Card for Tourism

Authority of Thailand in Taiwan and Korea

• 120 years anniversary for Electricity Generating

Authority of Thailand

• Bicentennial anniversary o the King Monkut’s

Institute of Technology, Ladkrabang.

• Design and construction of SUBARU pavilion

in the 22nd Thailand International Motor Expo 2005

• Pavilion construction for Heineken, Tiger Beer,

Cheers Beer in “Best of Nonthaburi” Festival 2005

• Thai Metalex 2005 of Siam-Fuchs Lubricants

Co., Ltd.

• Design and construction and decoration display

in the “OTOP” Premium and “Kitchen to the World 2005”

at the exhibition hall of the Department of External Trade

Promotion.

• ASEAN ENERGY BUSINESS FORUM 2004 at

World Trade Center Metro Manila, Philippines of PTT Public

Co., Ltd.

• Logistic & Supporting

As can be seen above our service is directed at the

business owner. This covers project planning, creative

concepts, project design, production and installation of the

event marketing for a particular merchandise. Logistic and

other supportive services are also provided. Critical to this

process is the objective of the event and the message/

information that the client wishes to convey to the

respective target. There are 4 principal models:

Business to Business (B to B) Event marketing between

those who are business operators. Example is trade show/

exhibition.

Business to Consumer (B to C) Event marketing between

business operator targeted at consumers such as product

launch, concerts/entertainment all of which is aimed at

creating and bolstering our customer’s relationship with the

consumers.

Government to Consumer (G to C) Event marketing

featuring communication between the government sector

and the public such as the public event on government’s

achievements.

Corporate Identity (CI) Even marketing designed to create

and bolster corporate image of a business such as a new

image launch.

Business value chain and direction

Planners

Trade show Organizers Event owners

Event organizers Show managers

Project Management

Venue & Facility Management

Event service providers

Logistic & supporting

Target groups

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• Yaris Dealer Launching for DELPHI HAKUKODO

• Thailand Grand Invitation 2005 for Creative

Juice

• World Premier Ford – All New Ranger for FORD

• Annual meeting of National Science and

Technology Development Agency (NSTDA)

• Bangkok International Motor Show 2006 for

Ford / Isuzu / Volvo / THAIRUNG / CARIO

• Road show for Nokia (Thailand) in “Nokia on

Wheel” and “Nokia N-series road show”

• Commemorative Pavilion Exhibition Commemorating

The 60th Anniversary of His Majesty the King’s Accession to

the Throne for Boon Rawd Brewery Co., Ltd.

• In commemoration of H.M. the King’s 60th

anniversary accession to the throne, the design and

arrangement for graphic waterfall, self sufficiency economy

and the new theory display/exhibit and the history of the

Chakri dynasty.

Knowledge Communication

We provide services to the public and private sector

that need to communicate knowledge to the public in the

form of temporary exhibition, semi permanent exhibition,

permanent exhibition, visitor center, learning center and

museum.

Our service is built upon how to effectively deliver

the knowledge to the public. which means that, beside

premise design and construction and the realization of the

display, we are also responsible in creating the contents

of the learning program appropriate to the client’s role.

Here we need to focus on the audience or learner, the

appropriateness of the text with the goal that the audience

will gained an in-depth learning experience and be able to

use the knowledge gained to further his knowledge quest

to the fullest extent.

Our operation covers each step of the project’s

process from project outline, topic research, learning

program, exhibition design, production and the subsequent

museum management.

Our past projects in the knowledge communication

business are:

° Visitor and learning centers

• BLCP Visitor Center of the BLCP Power Plant

in the Mab Ta Phut Industrial estate, Rayong

• Design and installation of Electricity and the

Thai energy display for the National Science Museum

Organization.

• Historical archive of the Bangkok University’s Surat

Osathanugraha library. Ransit Campus

• Design and installation of inside display for

H.R.H. the Princess Mother’s archive for the Mae Fah Luang

foundation and the Tourism Authority of Thailand

• Design and construction in the exhibition hall of

the Securities Exchange of Thailand main building.

• Internal display of the children’s Museum for

Bangkok Metropolitan Administration, The science, nature

and the King sections.

• The prevention and action against narcotics display

for the Office of the Narcotics Control Board.

• Design and improvement for A Post Office at the

new Suvarnabhumi Airport

° Museum

• Renovation and interior decoration Arts and

Culture Hall for the eastern region, phase II at Burapha

University, Chonburi

• Design and decoration for a display center for

Isan folk knowledge for Ubonrachathani for Office of Small

and Medium Enterprises Promotion.

• Design and decoration of the sports museum for

the Sport Authority of Thailand

• Design for 5 storey building behind the Rama VII

museum of the Rama VII Institute at Larn Luang.

• District museum for 4 districts of Bangkok

depicting life in the community of Samphatawongse, Bangrak,

Bangkoknoi and Bangkhumthien.

• Project for the development of a historical park

and museum to commemorate the heroism of 2484

• Ramkhamhang Museum (Sukhothai) for the

Department of Fine Arts.

• Buddhism Museum, Buddha Monthon for the

National Buddhism Office.

• Rama VII Museum with display depicting life

and activities history of Rama VII at Rama VII Institute, Larn

Luang.

• Design and installation display for H.R.H. the

Princess Mother’s archive for the Mae Fah Luang foundation

and the Tourism Authority of Thailand

° Semi permanent exhibitions

• Design and decoration of the Asean Handicrafts

archive of the SUPPORT international division, Bang Sai.

• Internal display for visitors at Khao Yai National

Park, Sarika and Nang Rong waterfalls for the Parks and

Wildlife Department.

• Renovation and decoration for the library, club

house, technical display, control, graphic and “magic vision”

at the Armed Forces Preparatory School.

• Museum of the lignite mining in honor of King

RamaVII at Mae Moh Mine, Lampang.

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• “Natural Disasters” display for the Science Education

Office.

• “Time” display for the Science Center for

Education.

• “Man and his Environment” and “Life and the

stars” for the Science Center for Education.

• “Astronomy and Space” at the Science Park at

Wah Gore, Prachuap Kirikhan for the Ministry of Education.

• Royal Flora Ratchaphruek 2006 International

Horticultural Exposition for His Majesty the King, Chieng

Mai for Boon Rawd Brewery Co., Ltd.

• “Khao Khong Pho Ruam Palang Khao Khong

Phandin” for Department of Industrial Promotion

• National Science and Technology 2006 for

National Science Museum

Others

Beside the services mentioned we have other

services aimed at supporting and enhancing the customer’s

business.

• Rental of large air-conditioned tents from 1,000

sq.m. up to more than 20,000 sq.m. This serves to provide

additional temporary space to exhibition organizers or

large projects requiring significant covered space.

• Graphic design for signage and banner projects

used in advertising and/or public relation work.

• Furnishings to complement the merchandise

display to enhance sale such as display cabinets. These are

eye catching units placed in the exhibition booth to increase

sale in accordance with the target’s marketing plan

• Interior design of offices. Logo design of

organization.

Our past projects in this area of service are:

° Past works

• Erection of large tents at the Bangkok

International Motors Show 2001-2006 at BITEC.

• Erection of large tents for the World’s AIDS

conference 2004.

• Interior decoration of Siemens Retail Shop

• Various design of logos for financial institution

clients e.g. United Securities Public Co., Ltd.

• Lighted boxes and installation at designated spots

for “First Choice”.

• Provide various models and graphic work.

• Erection of tented traveling road shows for

Chevrolet nationwide.

• Interior design for retail banking of Land and

Houses Retail Bank Public Co., Ltd.

• Public Relations of Thailand Hotel Standard

2006

• Decoration of Dealer Shop for “ACER” nationwide

• Ford Road shows by “World Premium Ford”

û Customer Profile

Our customers are those with a track record of

consistent growth with an international aspiration. These are

state and/or state supported companies and private operation

which need to increase market awareness/penetration and

turnover. They are divided into 2 categories as follows:

1. State enterprise and other government agencies.

The public sector regularly conducts events to

publicize the workings of its units in order to increase

public awareness and understanding. This includes also the

promotional activities for government supported industries

aimed at sustaining the economic growth. The agencies

that are responsible for such activities are: the culture

ministry, the information and communication technology

ministry, science and technology ministry and the

department of export promotion.

2. The private sector:

≤ The automobile sector. This group emphasizes

event marketing as it provides a venue for the consumer to

make the decision immediately.

≤ The telecommunication sector. This is a

business characterized by high growth and intense competition

and pays a significant interest in the event marketing /

communication.

≤ The energy sector. This group has a record of

consistent growth and recognizes the importance of corporate

social responsibility. It regularly conducts activities aimed at

increasing the public understanding of its organizations.

≤ The financial institution sector. The retail

banking business is characterized by intense competition with

constantly changing marketing strategy to meet customer’s

demand. Event marketing is therefore the preferred choice

of communication for this industry.

≤ Other sectors. With the continued economic

growth the consumer product business also needs to

communicate more to meet the challenges of greater

competition e.g. the apparel industry and jewelry.

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û Our project management process

Our group of companies reach the customers

through:

≤ Direct solicitation. Subsequent to our internal

study of target customer’s performance or direct request by

customer, our marketing department will prepare a project

outline and budget as per client’s objective to be followed

by a presentation. If selected the project management team

will coordinate with client to proceed.

≤ Building and maintaining good customer

relationship, stressing on internationally accepted standard,

is key to building trust and satisfaction with customer. This

will result in consistent repeat business.

≤ Business alliances. Business alliances in the trade

organization and the branches of the event marketing industry

is a channel that provides a lead to customer.

≤ Referral business. With our 20 years in the

business and our past successes on international level

projects, our satisfied customers often refer others to us.

≤ With our Pico Far East affiliation and its

extensive network in 26 countries we have direct access to

various institutional names when they come to Thailand.

Project management process

The key steps in our project management process

are as follows:

û In marketing we begin with:

- A thorough research of customer’s product.

- Customer’s contact to learn of objectives desired

in the event.

- Identification of concepts and process.

û Design. This covers the design of the display

material, building and actual display. We will source the

most effective designer for the project. Actual display

design may be done by our subsidiary such as Multi Designs

Co., Ltd. or our associated companies like DesignLab MISC

Co., Ltd., turnkey display may be done by PX System while

graphic will be under Artcom Graphic Co., Ltd. To completely

meet customer’s expectation some work may be outsourced

to qualified specialist houses. Once completed a budget

will be tabled for presentation to customer.

û Construction. We will handle consruction for

the parts that we have the skill set and will outsource the

specialized works to qualified contractor under our strict

quality control to ensure compete compliance to plan.

Once done and duly inspected the works will be handed

over to customer.

ûManagement. Once completed we will form

a management team to run the show e.g. public relation

personnel in the show, training, rehearsal, janiforial services

and security. We will arrange and coordinate these

functions and assume responsibility until the show is

completed.

Work in Progress as at October 31, 2006

Undelivered works Total value (MB)

1. Event marketing 44

2. Knowledge communication 206

3. Others 52

Total 302

The contribution of these various groups to our business is as follows Income Portion

Business Group 2006 2005 Million Baht % Million Baht %

1. State enterprises / Government

2. Private sectors

- Automotive

- Telecommunication

- Energy

- Financial Institutions

- Food & Beverage

- Others

322

364

45

60

60

29

158

31.02

35.07

4.34

5.78

5.78

2.79

15.22

129

342

27

29

50

-

139

18.02

47.77

3.77

4.05

6.98

-

19.41

Total 1,038 100.00 716 100.00

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Mr. Silchai KiatpapanDirectorAge 50 yearsWork Experience1 Nov 2006 - Present Chief Executive Officer - Pico (Thailand) Public Co., Ltd.2003 - 31 Oct 2006 Chief Operating Officer - Pico (Thailand) Public Co., Ltd.1992 - present Director - Pico (Thailand) Public Co., Ltd.

Ms. Nitida ThamasoontraDirectorAge 45 yearsWork Experience2003 - present Chief Financial Officer - Pico (Thailand) Public Co., Ltd.1991 - present Director - Pico (Thailand) Public Co., Ltd.

Mr. Pised ChungyampinVice Chairman of the Board of DirectorsAge 52 yearsWork Experience1 Nov 2006 - present Vice Chairman and Chief Executive Officer - Pico (Thailand) Public Co., Ltd.2003 - 31 Oct 2006 Vice Chairman and Chief Executive Officer - Pico (Thailand) Public Co., Ltd.1992 - 2003 Director - Pico (Thailand) Public Co., Ltd.2001 - 2003 President - Trade Exhibition Association (Thai) (TEA)

Mr. Chia Song HengChairman of the Board of DirectorsAge 54 yearsWork Experience2003 - present Chairman of the Board of Directors and Vice chairman of the Executive Committee - Pico (Thailand) Public Co., Ltd. 2001 - present Director - Pico Far East Holding Pte Ltd.

1.

Mr. Chong Mang YongDirectorAge 50 yearsWork Experience2003 - present Director - Pico (Thailand) Public Co., Ltd.2000 - present Vice-President Finance, South Asia - Pico Art International Pte. Ltd.1995 - 2000 Group Financial Officer - United Motor Works International Pte. Ltd.

2.

3.

Board of DirectorsAs at 31, October 2006 of PICO (Thailand) Public Company Limited

4.

5.

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Board of DirectorsAs at 31, October 2006 of PICO (Thailand) Public Company Limited

Dr.ChaiyodBunyagidjIndependent DirectorAge 52 yearsWork Experience2003 - present Chairman of the Audit Committee and Independent Director - Pico (Thailand) Public Co., Ltd.1997 - present Vice President - Thailand Environment Institute (TEI)

Mrs. Sasitorn PhongsathornIndependent Director

Age 49 years

Work Experience

17 Nov 2005-present Audit Committee and Independent Director - Pico (Thailand) Public Co., Ltd.

19 Dec 2005-present President - Land and Houses Retail Bank Public Co., Ltd.

1 Jul 2005-18 Dec 2005 Vice President - Book Club Finance Public Co., Ltd.

2004 - 2005 President - United Securities Public Co., Ltd.

2000 - 2003 Senior Director, Corporate Finance United Advisory Services Co., Ltd.

Mr. Sern VithespongseIndependent DirectorAge 53 yearsWork Experience2003 - present Audit Committee and Independent Director - Pico (Thailand) Public Co., Ltd.1992 - present Director - Palmer & Turner (Thailand) Co., Ltd.

Mr. Viriya PholpokeDirector and AdvisorAge 53 yearsWork Experience2 Sep 2005 - present Director and Advisor - Pico (Thailand) Public Co., Ltd.2003 -1 Sep 2005 Audit Committee and Independent Director - Pico (Thailand) Public Co., Ltd.

6.

7.

8.

9.

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Mrs. Sasitorn PhongsathornAudit Committee

Age 49 years

Work Experience

17 Nov 2005 - present Audit Committee - Pico (Thailand) Public Co., Ltd.

9 Dec 2005 - present President - Land and Houses Retail Bank Public Co., Ltd.

1 Jul 2005 - 18 Dec 2005 Vice President - Book Club Finance Public Co., Ltd.

2004 - 2005 President - United Securities Public Co., Ltd.

2000 - 2003 Senior Director, Corporate Finance - United Advisory Services Co., Ltd.

Dr. Chaiyod BunyagidjChairman of the Audit Committee

Age 52 years

Work Experience

2003 - present Chairman of the Audit Committee

- Pico (Thailand) Public Co., Ltd.

1997 - present Vice President - Thailand Environment Institute (TEI)

Mr. Sern VithespongseAudit Committee

Age 53 years

Work Experience

2003 - present Audit Committee

- Pico (Thailand) Public Co., Ltd.

1992 - present Director - Palmer & Turner (Thailand) Co., Ltd.

1.

2.

The Audit CommitteeAs at 31, October 2006 of PICO (Thailand) Public Company Limited

3.

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The Executive CommitteeAs at 31, October 2006 of PICO (Thailand) Public Company Limited

Mr. Chia Song HengVice chairman of the Executive Committee Age 54 yearsWork Experience2003 - present Chairman of the Board of Directors and Vice chairman of the Executive Committee - Pico (Thailand) Public Co., Ltd. 2001 - present Director - Pico Far East Holding Pte Ltd.

Mr. Chokchai VatcharanirunkulSenior Executive Vice President Event Marketing & Special ProjectAge 46 yearsWork Experience2001 - present Senior Executive Vice President Event Marketing & Special Project - Pico (Thailand) Public Co., Ltd.1995 - 2000 General Manager Event Marketing - Pico (Thailand) Public Co., Ltd.

Mr. Silchai KiatpapanChief Operating OfficerAge 50 yearsWork Experience1 Nov 2006 - Present Chief Executive Officer - Pico (Thailand) Public Co., Ltd.2003 - 31 Oct 06 Chief Operating Officer - Pico (Thailand) Public Co., Ltd.1992 - present Director - Pico (Thailand) Public Co., Ltd.

Ms. Nitida ThamasoontraChief Financial OfficerAge 45 yearsWork Experience2003 - present Chief Financial Officer - Pico (Thailand) Public Co., Ltd.1991 - present Director - Pico (Thailand) Public Co., Ltd.

2.

3.

4.

Mr. Pised ChungyampinChairman of the Executive CommitteeAge 52 yearsWork Experience1 Nov 2006-present Vice Chairman and Chief Executive Officer - Pico (Thailand) Public Co., Ltd.2003-31 Oct 2006 Vice Chairman and Chief Executive Officer - Pico (Thailand) Public Co., Ltd.1992-2003 Director - Pico (Thailand) Public Co., Ltd.2001 - 2003 President - Trade Exhibition Association (Thai) (TEA)

1.

5.

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The Executive CommitteeAs at 31, October 2006 of PICO (Thailand) Public Company Limited

Mr. Pornchai TangsunawanVice President Strategic Marketing

Age 39 years

Work Experience

2005 - present Vice President - Pico (Thailand) Public Co., Ltd.

2003 - 2004 Project Manager - The Shell Company of Thailand Limited & Mekong Cluster

1999 - 2003 Engineering Support Manager - The Shell Company of Thailand Limited &

Mekong Cluster

Ms. Nareerat JiamwattanasukGeneral Affairs Manager

Age 50 years

Work Experience

1994 - present General Affairs Manager - Pico (Thailand) Public Co., Ltd.

6.

7.

8.

Ms. Amara BanditakonAccounting Manager

Age 46 years

Work Experience2004 - present Accounting Manager - Pico (Thailand) Public Co., Ltd.1996 - 2004 Finance and Accounting Manager - Pico (Thailand) Public Co., Ltd.1992 - 1995 Chief Accountant - Pico International Enterprise (Thailand) Co., Ltd.

9.

Ms. Supaporn SawangjittExecutive Vice President Event Marketing I

Age 38 years

Work Experience

2005 - present Executive Vice President Event Marketing I - Pico (Thailand) Public Co., Ltd.

2003 - present General Manager Event Marketing - Pico (Thailand) Public Co., Ltd.

2000 - 2002 Assistant General Manager Event Marketing - Pico International Enterprise

(Thailand) Co., Ltd.

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annual report 2006


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There are 3 Boards within the organizational

structure.

1. The Board of Directors As of 31 October, 2006 the company’s Board

consists of 9 directors namely

1. Mr. Chia Song Heng Chairman

2. Mr. Pised Chungyampin Vice Chairman

3. Mr. Silchai Kiatpapan Director

4. Ms. Nitida Thamasoontra Director

5. Mr. Chong Mang Yong Director

6. Mr. Viriya Pholpoke Director and Advisor

7. Dr. Chaiyod Bunyagidj Independent director and

Chairman of the audit

committee

8. Mr. Sern Vithespongse Independent director and

audit committee member

9. Mrs.Sasitorn Phongsathorn Independent Director and

audit committee member

Management Structure

Directors authorized to sign and bind the company:

Directors authorized to sign and bind the company

are Mr. Pised Chungyampin together with Mr. Chia Song

Heng or Mr. Silchai Kiatpapan or Miss Nitida Thamasoontra

or Mr. Chong Mang Yong constituting 2 signatures with

the company’s seal affixed.

Scope of authority of the Board of Directors

1.1 The Board of Director’s functions

The Board of Directors shall act to ensure maximum

benefits toward the conduct of the company’s business

by using its knowledge and experience to the

fullest capability. It shall conduct its role according to

the company’s memorandum of association and

bylaws with due care and discretion to protect the

rights of and be responsible to the shareholders.

1.2 Establishing the company’s objectives, business

direction and policy

The Board is charged with the setting of appropriate

policy and business direction of the company except

the policy or business direction which requires

shareholders’ approval.

1.3 Appointment and Supervision of the Executive

Committee

The Board is empowered to appoint a committee

consisting of directors as it deems appropriate to act as

an Executive Committee to manage on its behalf. In

this respect the Board of Directors at its meeting

1/2003 held on 29th August 2003 resolved to appoint

an Executive Committee and clearly established its

scope, power and duties. The Board of Directors will

be responsible for the supervision to ensure that the

Executive Committee effectively carries out the

approved policies.

1.4 Appointments and delegation of authority to other

persons.

The Board of Directors may appoint any other person

to conduct the company’s business under its

supervision or it may delegate authority to said person

as it deems appropriate. The time period of this

authority delegation shall be set as the Board deems

appropriate and the Board may rescind, remove, alter

or modify such delegation. Such appointment or

delegation shall fall under the following rules:

(1) Any appointment and authority delegation shall not be

bestowed on person(s) with a vested interest in or is in

conflict with the company or its subsidiaries.

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(2) Person(s) so appointed and delegated shall not be able

to approve transactions that involve themselves or

persons that may be in conflict with, possessing vested

interest in or having any other potential conflict of

interest against the company or its subsidiaries

(3) Appointment and delegation must be accompanied by

a clear establishment of scope of authority, duty, and

responsibility and must be in accordance with the

resolution of the Board of Directors meeting

attended by independent directors or members of the

audit committee. In the case that such delegation of

power is objected to by a member of the independent

director or an audit committee member such objection

shall be clearly recorded in the minutes of the meeting.

2. The Executive Committee As of 31 October 2006 the company has 4

executive committee members.

1. Mr. Pised Chungyampin Chairman of the Executive

Committee

2. Mr. Chia Song Heng Vice Chairman and

committee member

3. Mr. Silchai Kiatpapan Head of Operation and

committee member

4. Ms. Nitida Thamasoontra Head of Finance and

Accounting and committee

member

Scope of duty and authority of the Executive Committee

2.1 To propose for the Approval by the Board of Directors

the followings:

• Business objectives and direction.

• Business strategy and policy.

• Annual business plan and budget.

• Organizational structure and management including

details on selection, training, recruitment and

termination of employees.

2.2 Supervision and overseeing that the company’s

business operation follows the Board’s approved

business strategy, policy and plan

2.3 Screening of business contractual obligations of the

company, acquisition of assets or rights to be used to

the benefit of the company. This includes the setting

up of negotiating processes in the closing of the said

contracts.

2.4 Screening of fiduciary contracts, lending, borrowing

and undertaking of guarantee by the company.

2.5 Acting on contract amendment and termination in

accordance with the Executive Committee’s discretion.

2.6 To consider the profit and loss account of the

company and the proposal of an interim or annual

dividend payment to the Board of Directors for

approval.

2.7 To engage in any other action in order to support

the above or as may be delegated by the Board of

Directors from time to time.

The foregoing duties and powers of the Executive

Committee shall be under the law and the company’s

bylaws. The Executive Committee shall not have the

authority to approve transaction that its members or

others may be in conflict with or possess a vested

interest in or having any conflict of interest against the

company or its subsidiaries. Should such a case arise the

Executive Committee shall refer the case for consideration

by the Board of Directors.

Management:

9 senior managers comprise the management team:

1. Mr. Pised Chungyampin Chairman of Executive

Committee

2. Mr. Chia Song Heng Vice Chairman

3. Mr. Silchai Kiatpapan Chief Operating Officer

4. Ms. Nitida Thamasoontra Chief Financial Officer

5. Mr. Chokchai Vatcharanirunkul Senior Executive Vice

President

6. Ms. Supaporn Sawangjitt Executive Vice President

7. Mr. Pornchai Tungsunawan Vice President

8. Ms. Nareerat Jiamwattanasuk General Affairs Manager

9. Ms. Amara Banditakol Accounting Manager

3. The Audit Committee As of October 31, 2006 there are 3 members of

the audit committee.

1) Dr. Chaiyod Bunyagidj Chairman of Audit

Committee

2) Mr. Sern Vithespongse Audit Committee

3) Mrs. Sasitorn Phongsathorn Audit Committee

With Ms. Nitida Thamsoontara serving as secretary

to the committee.

Scope of authority of the audit committee

3.1 Review to ensure that the company’s financial reports

are correct and with adequate disclosure. This is done

through coordination with the external auditor and

line management tasked with the preparation of

quarterly and annual financial reports.

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3.2 Review to ensure that the company has an adequate

and effective internal control and audit process.

3.3 Review to ensure that the company’s operation is in

compliance with the laws concerning securities and

the Stock Exchange of Thailand (SET), the decrees of

the SET or the laws pertinent to the company’s business.

3.4 Selection of the company’s auditor and set its

remuneration to be proposed to the company’s Board

of Directors to be forwarded to the shareholders for

appointment.

3.5 Release a complete and accurate disclosure of

intercompany transactions or other transactions that

may be of conflict of interest in nature.

3.6 Preparation of the audit committee’s report on its

supervision of the company’s operation and to disclose

this in the company’s annual report under the

signature of the committee’s chairman.

3.7 Engage in any other functions as assigned by the

Board of Directors.

Selection of Directors and Management Executives

The selection of directors and management

executives is not done through a selection committee. This

is done by the Board of Directors using the criteria as set

forth in the code 68 of the Public Company Act of 1992

and the relevant announcements of the Securities

Exchange Commission (SEC) and The Stock Exchange

of Thailand (SET). Additionally, consideration is given to

the candidate’s experience, knowledge and ability before

proposing to the shareholders for election as director.

As for executive management position the selection

process by the Executive Committee uses similar criteria

and procedure for the selection process.

Directors’ Compensations

(1) Monetary compensation

• Directors

Monetary compensation to directors in 2006 is in the form of meeting allowance, director’s fee and special

bonuses totalling Baht 4,400,000 as per the following details:

Name-Surname PositionTotal Compensation

(Baht/Year)

1. Mr. Chia Song Heng Chairman / Vice Chairman of Executive Committee 135,000

2. Mr. Pised Chungyampin Vice Chairman of the Board/ Chairman Of Executive Committee 135,000

3. Mr. Silchai Kiatpapan Chief Operating Officer/Director 135,000

4. Ms. Nitida Thamasoontra Chief Financial Officer/Director 135,000

5. Mr. Chong Mang Yong Director 105,000

6. Mr. Viriya Pholpoke Director and Advisor 785,000

7. Dr. Chaiyod Bunyagidj Independent Director / Chairman of Audit Committee 1,000,000

8. Mr. Sern Vithespongse Independent Director / Audit Committee 985,000

9. Ms. Sasitorn Phongsathorn Independent Director / Audit Committee 985,000

Total 4,400,000

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• Management

In 2005 monetary compensation of Baht

27,229,091 was paid to 9 management executive

members and 1 advisor in form of salary and bonuses. In

2006 this amount was Baht 33,952,960 paid to 9

management executive members and 1 advisor.

(2) Other compensation.

-None-

Good Corporate Governance

The company’s policy is for its members of the

Board to comply with the regulations of listed companies

with respect to the duty and responsibility of directors.

Subsequent to the company’s transformation to a public

company, the Board of Directors and the Audit Committee

together established supervisory guidelines in overseeing

the company’s operation and to clearly define the scope of

authority of directors and management. This covers

compliance to the law, memorandum of the association,

bylaws and the resolutions of the shareholders with

honesty, integrity and utmost care to ensure maximum

benefits to the company. The directors are also charged

with establishing the company’s policy and business

direction and to ensure that the set policy is followed by

management.

With regard to the 15 practices of good governance

established by the SET we would like to report as follows:

1) Supervisory Policy

The company’s policy is to ensure a consistent,

stable and steady growth and to instill confidence in

investors and all concerned. The Executive Committee

is charged with this supervisory function. It is to function

with due care, responsibility, expertise and effectiveness to

ensure maximum benefits to shareholders. This must be

conducted in a transparent manner and subject to audit

with adequate disclosure to all parties concerned. It must

ensure avoidance of conflicts of interest and ensure that

equal and equitable treatment is available to shareholders

and all parties concerned.

2) Rights of shareholders

Equal rights are given to all shareholders. The

company sends all meeting announcements with related

information to all shareholders 7 days prior to the

meeting date. The minutes of all meetings are completely

and accurately recorded for examination by the

shareholders. Additionally, shareholders are afforded equal

opportunity in their audit of and question on the

company’s operation and are encouraged to offer opinions

and suggestions during each meeting.

3) Rights of stakeholders

The company recognizes the importance of

each group as follows:

Employees: Equal and non discriminate treatment is

afforded to all employees including just

compensation.

Suppliers: Trade practice and agreed contracts are

honored with all suppliers.

Clients: Customers receive quality care and service

from the company. Client’s information is

treated in the strictest confidence. A

complaint section or a person is in place to

receive a customer’s complaints and to

provide an immediate remedy and resolution.

Competitors: The Company values a healthy competitive

situation and avoids dishonest and

destructive practices in its business

competition.

Community: Pico recognizes its responsibility to the

community and strictly adheres to the laws

and regulations pertaining to the rights of

people in the community. We have

participated with General Motors (Thailand)

and Chevrolet Sales (Thailand) in the

construction of 15 libraries for rural schools.

Todate, 2 libraries have been delivered to

elementary schools: Banrongdu School in

Petchaboon and Baanphonoi School in Trang,

with 13 more to be delivered in 2006

onward.

Moreover we have joined forces with General

Motors Thailand Ltd. in flood relief to the people in the

provinces of Ang Thong, Singburi and Ayuthaya through

the preparation and donation of 1,080 essential care

packages and a further donation of cash and goods to the

value of Baht 28,900.

With Chevrolet Sales (Thailand) we arranged a

“Chevrolet Excursion” for 50 mentally handicapped

children and 30 minders for a day at the Bang Saen Beach,

Chonburi Province. An additional Baht 15,293 and

essential items were donated to the Baan Fueng Fah, home

for the mentally handicapped.

Additionally we donated Baht 100,000 to the

Graduate Studies of Mahidol University Alumni Association

to support a scholarship program and other activities of the

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alumni association for the needy students at the Salaya

campus of Mahidol University.

4) Shareholders’ Meeting

The shareholders will be informed of a

meeting by a notice. In the notice the date, time, place and

the various agenda to be considered will be clearly stated.

During the meeting shareholders will be encouraged to

question and propose opinions and suggestions.

Additionally, members of the audit committee will attend

the meeting to respond to questions.

5) Leadership and Vision

The company’s policy is to have the Board of

directors participate in (or consent to) the setting of vision,

strategy, mission, objectives, business plan and budget

of the company. This includes the supervision to ensure

that management effectively carries out business plan and

budget to the maximum economic benefits to the

company and the shareholders. Besides, the company’s

policy is to clearly define the role and responsibility

between directors and management so that each phase of

operation is transparent and subject to audit.

6) Conflict of Interest

The company’s policy on potential conflict of

interest incidents is to render the case to the Audit

Committee for an opinion to rule whether the case is a

normal business practice and that the price is fair. This will

be further referred to the Board for its deliberation. In this

connection, laws pertaining to securities and SET,

announcements, orders or decrees of the SET will be

consulted and strictly adhered to. Parties with vested

interest in will not be able to vote in the deliberation of

such transaction.

7) Business Ethics

The company’s policy mandates that all of its

employees, managers and directors perform their functions

with honesty, integrity, highest degree of ethics and moral

responsibility to create a fair business environment with a

sound and upright business conduct.

8) Non management directors

The members of the Board of Directors are

elected so that no person or group of persons has the sole

authority in decision making. This is to foster effective

management and provide a check and balance within the

company.

Executive committee Board members 4

Non executive committee Board members 5

Independent directors 3

The company has 3 independent directors or 1 in 3

of the total number of the Board of Directors which is

deemed to be an adequate representation. The

independent director’s attributes are:

1. Less than 5% shareholding of outstanding

shares in the company, subsidiaries joint ventures or

persons with potential conflict of interest (Including

persons defined in code 258 of the Securities and

Exchange Act 1992)

2. Has no part in management and is not an

employee, staff, salaried advisor or has control of the

company, subsidiaries and joint ventures. Is not considered

to be a person with a conflict of interest and must not

have been involved in such conflicts during the past year.

3. Has no business relation, benefits, vested

interest direct or indirect in both monetary or management

of the company, subsidiaries, joint ventures. Is not

connected to persons who may potentially be in such

conflicts that will impair independence.

4. Is not a close relative of the management,

major shareholders of the company, subsidiaries, joint

ventures or persons who are in conflict against the

company is not /’appointed as a proxy to look after the

interest of directors and major shareholders

9) Separation of function/authority

The Board of Directors has appointed

an Executive committee to perform the various tasks. The

Board of Directors is responsible to monitor to ensure

that this delegation is effectively executed. In this

connection the chairman of the Board of Director shall be

a different person from the chairman of the Executive

Committee, so that a balance is maintained. Additionally,

3 audit committee members consisting of 3 independent

directors are appointed to oversee the implementation

of the business plan and to provide a check to ensure that

there is no domination by the Executive committee or any

other group of persons.

10) Director and Executive Compensation

Director Compensation: The policy on

director compensation is clearly and transparently set out

with the compensation closely following the industry’s

norm.

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Compensation of Executive Committee members

This compensation is related to the overall company’s performance and individual performance of each committee

member. At present, the company does not have a sub-committee to determine individual compensation. However, there

is a process to review and determine compensation using comparative compensation at similar sized companies within the

same industry. The company’s and individual performance are also factored in this determination.

11) Board of Directors meeting.

A minimum of one meeting is scheduled per quarter with additional meetings as needed. Directors

are informed in advance of the date, place and time of each meeting together with the agenda and related

documents. Directors may add additional agenda to the meeting and are encouraged to express their opinions openly

and freely. The company’s secretary acts as the recorder of the minutes and the preparation thereof. During the period

ended, 5 meetings were held as per the following details:

Total Attendance

Name of the Board of Directors 5 Board of Directors Meeting in 2006 Total

1. Mr. Chia Song Heng 5 5/5

2. Mr. Pised Chungyampin 5 5/5

3. Mr. Silchai Kiatpapan 5 5/5

4. Ms. Nitida Thamasoontra 5 5/5

5. Mr. Chong Mang Yong 3 3/5

6. Mr. Viriya Pholpoke 5 5/5

7. Dr. Chaiyod Bunyagidj 5 5/5

8. Mr. Sern Vithespongse 5 5/5

9. Ms. Sasitorn Phongsathorn 5 5/5

12) Sub committee

The Board of Directors appointed an Audit Committee consisting of outside independent directors to assist in

the supervision of the company’s operation. The audit committee meets quarterly and reports to the Board of Directors. In

2005, 4 meetings were held.

Name of the Audit CommitteeTotal Attendance

4 Audit Committee meeting In 2006 Total

1. Dr. Chaiyod Bunyagidj 4 4/4

2. Mr. Sern Vithespongse 4 4/4

3. Ms. Sasitorn Phongsathorn 4 4/4

14) Investor Relation

The Directors are well aware that financial and

non financial information are critical to investor’s decision

to invest in the company. The company’s policy is for

management to consistently disclose complete and

accurate data and information in a timely fashion to

potential investors. Management is committed to

disclosure and is fully cognizant of its significance. There is

no plan in the near future to establish an investor relations

department in the company. This is currently assigned to

the group head in charge of finance and accounting who

will liase with shareholders, securities analysts and

concerned regulatory agencies.

13) Internal control and internal audit.

The company maintains an adequate internal

control process commensurate with its business activity.

The process is constantly reviewed and improved.

Management has audited to ensure that rules and

regulations are effective and adhered to. The internal

control process and mechanisms are constantly evaluated

in line with the growth of and changes in the organization.

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Insider information supervision

A policy is established so that inside information is not to

be used for personal gain. This covers spouses and minor

children of employees. The details are as follows:

1) Ensure that all members of management in

every department are informed of their responsibility

to report their stockholding and the penalties for failure

to comply in accordance with securities and exchang act

B.E. 2535 and the regulations of the SET.

2) The company’s policy is to allow senior

management to disclose only minimal internal information

to staff so as to permit the conduct of operation.

Additionally members of management are prohibited to

use insider information in the trading of the company’s

stock.

Personnel

1) Litigation / Legal disputes

-None-

2) Number of staff:

There are a total of 150 employees in Pico and

subsidiaries as of 31 October, 2006 as per following details:

- Pico (Thailand) Public Company Limited 99 persons

- Px System Company Limited 21 persons

- Artcom Graphic Company Limited 19 persons

- Multi Designs Company Limited 11 persons

Total 150 persons

As for Pico (Thailand) alone, there are 99 staff

members as per followings:

- Management 11 persons

- Strategic Marketing 2 persons

- General Affairs Department 12 persons

- Finance and Account Department 14 persons

- Marketing Department (Event/ Exhibition

and Museum) 60 persons

Total 99 persons

3) Compensation

A total of Baht 82.65 million was paid as

compensation in salary and bonuses in 2005 and Baht

106.01 million in 2006. The company contributes 3% of

salary into a provident fund with matching amount by

employees. Employees are eligible to receive the benefits

according to the time of service ranging from 30%, 50%

and 100% for 2, 3 and 5 years of service respectively.

4) Human Resources Development

The company places the highest value on its

human resources on which the future growth is

dependent. It is committed to recruit, train and maintain its

talent through training and equitable compensation as

follows:

1) Recruit the most talented, capable and

creative mind.

2) Ensure that the compensation and

benefits package is attractive, competitive and equitable.

3) Commitment to career development of

staff to his/her maximum potential.

4) Commitment to continuing training

programs.

5) Commitment to and promotion of a team

spirit so that employees work together as a team at all

levels.

In developing human resources the company

has implemented training programs both internal and

external for all levels of management namely “Project

management”, Team Work Builder Leadership Skill

Program and Executive Team Building Workshop,

Managerial Leader Workshop and Synergistic Teamwork.

Overseas training is also encouraged such as the Golden

Image and Golden Hammer programs.

The company is committed to an ongoing

review of its benefits program to ensure that it is a

competitive employer in the market. These include

hospitalization, allowances for uniforms, meals, telephones

and per diem.

The company considers its foremost obligation

to provide an excellent working environment to all

employees as it proceeds through the business growth and

expansion. In addition to career planning and equitable

compensation the company pays particular attention to a

comfortable, safe and healthy workplace, free annual

medical examination for all. Sporting and social activities

aimed at team building are encouraged and regularly held

among the employees of the company and subsidiaries.

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Shareholding Structure

1. Stock of the company The company has a registered capital of Baht

115,000,000 with Baht 114,999,980 paid up divided into

114,670,000 common shares and 330,000 preferred shares

at Baht1 par value.

Rights of common and preferred shares

With respect to receipt of dividend payment, the

company’s bylaws establish no difference in rights between

common and preferred shares. In voting rights, preferred

shares will be subordinated to common shares. 10,000

preferred shares will count as 1 vote whereas one common

share equals one vote.

2. Shareholders List of top ten shareholders as of 31 October 2006

Items Shareholders Share amount Portion (%)

1. Pico Art International Pte., Ltd. 40,250,000 35.10

2. Mr. Pised Chungyampin 29,003,138 25.29

3. DBS VICKERS SECURITIES (SINGAPORE) PTE., LTD. 5,750,100 5.01

4. Thai NVDR Co., Ltd. 5,370,830 4.68

5. Mr. Supawit Wattanphan 1,949,100 1.70

6. Mr. Silchai Kiatpapan 1,407,677 1.23

7. Mrs. Jiraphan Sathienpakiranakorn 1,382,200 1.21

8. Mr. Suwiphan Ditsayamolthon 1,276,138 1.11

9. Mr. Prasarn Ruengsirikulchai 1,070,000 0.93

10. Miss Nitida Thamasoontra 930,070 0.81

Total 88,389,253 77.07

3. Dividend Policy Provided that there are no other needs such as major business expansion or an investment plan, the policy is to

pay out 40% of net profit after taxes. With regard to the 3 subsidiaries PX System, Artcom Graphic and Multi Designs,

the policy is the same at 40% of net after taxes provided that there are no business expansion needs.

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Shareholding Structure Business Objectives

4 key business objectives of Pico (Thailand) are:

1) Maximize returns to our shareholders.

2) Create value with measurable results to services

rendered to our customers.

3) Value the contribution of our employees with a

fair compensation and benefits program, which will enhance

our ability to recruit future talents.

4) Be a good corporate citizen with a strong

commitment to social responsibility

Additionally we have an ongoing operation and

organization improvement prescribed under international

criteria such as ISO 9002, ISO 9001:2000. This process

is carried by a management that is transparent to

customers, shareholders and employees.

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Transparency and Governance

We are truly committed to the principles of good

governance and transparency. Our continuing progress

over the past 25 years is a reflection of our unwavering

commitment to these 2 tenets. Transparency is the clear and

accurate disclosure of information regularly in a timely manner

and an effective and ongoing internal audit program. The

business conduct is in accordance with the measures of the

Stock Exchange of Thailand and the proper treatment of each

individual shareholder.

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Social Responsibility

As a member of community, we are fully aware of

the effects on the social community from the information

disseminated through our events/exhibitions activities. Our

social responsibility is of utmost concern to us. This is not

only reflected in our quality control and respect for client’s

privileged information, but also ensured that the disseminated

information is within social and cultural norms. This is our

principle and commitment to unquestionable business ethics

and social responsibility.

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Market and Competition

Total event and exhibition market for 2006 is valued at

approximately Baht 10,000 million (not including merchandise

value transacted in the show). The annual growth rate is

approximately 20% with the government sector’s spending

to publicize its achievements responsible for over half of the

growth, while the private sector growth slightly stagnated

during this period.

Looking on to 2007, the private sector will need to

adjust its operation to be in line with the government’s

adoption of the King’s self sufficiency economy in the

administration of the country. Together with the

government’s unclear policy in the spending on event

marketing. Competition will become more intense with

foreign players entering the market.

From the government’s pol icy, the budget

spending will be toward adding value to the product

with emphasis placed upon maximizing return to society.

This means the knowledge communication/development

which falls within our area of expertise having accumulated

experience in this field for well over 10 years. Our resources

and those of Pico worldwide can be drawn to support

our effort. Our foresight and recognition of the significance

of knowledge communication will go hand in hand with the

government’s agenda in sustainable development.

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Research and Development

Our continuing research and development is aimed

at fostering new business opportunities which will lead to

additional investment.

We recognize that our continuing success will be

dependent on the quality of our staff. Our policy is to

provide an adequate budget that will cover all areas of training

programs that will broaden not only the business perspectives

but keeping our staff abreast of the latest development and

innovation in the market. Our past performance and clients’

feedbacks are also regularly used to search for ideas and

means that will further our future success.

Future Projects

In order to response the client’s changing needs

quickly and effectively, the future projects will mainly be

focus on businesses which will serve the changes required

by clients. This focus will be placed throughout the event

marketing and knowledge communication value-chains

covering 3 main areas:

1) The investment both wholly or partially in

similar businesses to ours that will enhance

the efficiency and effectiveness of our operation

at all levels.

2) Co- investing in a business that is similar

to ours.

3) The acquisition of a business that is deemed

to benefit the comprehensive needs of our

clients.

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2006 Economic Review and Outlook for 2007

The overview of the Thai economy in the first half

of 2006 was characterized by the effects of the consistent

political disturbances set in motion against the past

government. The latter half was under the administration

of the National Reform Council and the continuation of

the problems of the 3 restive southern provinces. This resulted

in an overall growth rate of 3.8%. The principal reason seems

to due to the uncertainty on the part of the private sector

and the resultant pause in investment.

Looking on to 2007 the economic growth should

be at or lower than the rate achieved in 2006. The private

sector will wait for the outcome of the drafting of the new

constitution and the new government’s policy after election

toward the year end. Another observation is that the present

government has adopted the principles of H.M. the King’s

“sufficiency economy” as the underlying administration

philosophy. The private sector will need to understand and

adjust accordingly. The government will also give greater

importance to the “gross domestic happiness” rather than

the “growth domestic product” and has canceled almost all

of the mega projects.

The present government is not expected to pursue

extensive event marketing projects to publicize its work and

achievement as the past administration. We will not be

affected by this curtailment as our share in this market has

been very small. The government is expected to increase the

activity in the area of knowledge communication which will

foster social reconciliation and harmony. This will fit in with

our skill set in knowledge communication acquired over 10

years in the business. We are confident that we can effectively

respond to this need.

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There are 4 major risk areas that may impair our operation:

1) Economic risks With the unavoidable globalization we are subject to

the various global events and changes such as the oil price,

terrorism, international tension, nuclear arms disputes. For

the past 3 years these factors have a bearing on the global

situation and investment climate. We are fully aware of the

potential adverse effects of these factors and are keeping

abreast of the situation and are continually looking out to

improve our operation to mitigate these risks.

2) Political Risks National policy direction is a result of political changes.

This includes economic policy. The present government has

clearly stated its intention to reduce the event marketing

spending which will have a direct bearing on investment in

this sector. We are hoping that, as the political, situation

settles and government policy implications become clearer,

the investment direction can be identified. We will face

these uncontrollable risks by monitoring our costs while

maintaining and using our existing resources effectively.

3) Social/ environmental risks Health related issues such as the SARS and

bird flu pandemic are of global concern due to the life

threatening symptoms and the speed at which they are

spread regionally. If adequate measures are taken globally

to contain the diseases then the risks will no longer pose as

a threat to operation. On our part we continually monitor

the situation in order to minimize the risks to our operation

4) Clients’ Uncertainty Facing a highly competitive environment our clients

need to continually appraise their marketing strategy and

may need to modify their stated goals. This represents a risk

area to us and we will need to fall back on our experience

and operational flexibility to minimize the resultant impact.

Additionally we are also broadening our client’s and

monitor our sector concentration.

Risk Factors

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Operating Results and Financial Standing

1. Summary of auditor’s opinion The past unqualified opinion of the auditor for the 5 years between 2002 to 2006 confirms that the company’s

financial statements, operating results and accompanying cash flows conform materially to the generally accepted

accounting principles.

Fiscal Year

Certified Public Accountant (Thailand)

Auditor’s Office Registration No.

Auditor’s opinion

2006 Nachalee Boonyakarnkul Deloitte touché Tohmatsu Jaiyos Audit Co., Ltd. 3126 Unqualified

2005 Somporn Dulyavit Deloitte touché Tohmatsu Jaiyos Co., Ltd. 3709 Unqualified




2. Summary of operating results and financial standing Summary of Pico’s operating results and financial condition for 2004 to 2006 are as follows:

Thousand Baht

Consolidated Company

2006 2005 2004 2006 2005 2004

Total Revenue 1,112,375 720,220 642,003 962,150 626,313 559,861

Total Expenses 1,017,772 662,664 578,015 873,737 575,901 503,089

Net Income 71,254 41,702 41,167 71,254 41,702 41,167

Earnings per share 0.62 0.36 0.39 0.62 0.36 0.39

Weighted average no. of ordinary share 114,670 114,670 102,652 114,670 114,670 102,652

Total Assets 527,333 429,237 369,983 487,802 391,816 337,191

Total Liabilities 209,762 144,869 125,998 180,245 116,413 100,534

Total company shareholder’s equity 317,571 284,368 243,986 307,557 275,403 236,657

Book value per share (Baht) 2.78 2.48 2.38 2.68 2.40 2.31

No. of shares issued and outstanding as

at year end (Thousand shares)

115,000 115,000 65,000 115,000 115,000 65,000

Remarks - Fiscal year of the company October 31

- In 2006 there are 330,000 preferred shares and 114,669,980 common shares both at Baht 1 par value

- The comparison of earning per share and book value per share 2005 and 2006 of shares based on weighted

average of shares

annual report 2006


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Pico (Thailand) Public Company LimitedBalance Sheets

As at October 31

Thousand Baht

Consolidated The company only

2006 2005 2004 2006 2005 2004

Assets

Current assets

Cash and cash equivalents 115,637 55,669 73,682 91,093 28,238 54,372

Cash and cash equivalents – Joint

Venture

433 - - - - -

Current investments 20,596 76,467 21,561 20,126 75,014 20,119

Trade account receivables, net

Related parties 2,326 6,398 4,512 2,180 6,278 4,350

Others 115,986 104,102 94,867 105,668 84,912 75,443

Trade accounts receivable, net 118,312 110,500 99,379 107,848 91,190 79,793

Amounts due from related parties 271 20 81 619 701 707

Short-term loan to a related party 5,055 - - 8,425 - 300

Inventories 367 271 556 367 271 556

Other current assets

The gross amount due from customers for

contract work

83,157 73,197 87,180 78,872 69,253 85,713

Deposits at banks used as collateral

-JointVenture

4,920 - - - - -

Others 43,148 20,364 14,096 43,611 18,307 15,917

Others-JointVenture 9,880 - - - - -

Total current assets 401,776 336,488 296,535 350,961 282,974 257,477

Non-Current Assets

Deposits at banks used as collateral 810 810 2,810 - - 2,000

Investments using the equity method 10,268 5,608 5,502 41,041 33,319 26,215

Other long-term investment 1,210 930 480 - - -

Property, plant and equipment, net 109,169 82,509 61,432 91,991 72,726 48,421

Intangible assets, net 2,640 1,588 - 2,400 1,493 -

Other non-current assets 1,460 1,304 3,224 1,409 1,304 3,078

Total Non-current Assets 125,557 92,749 73,448 136,841 108,842 79,714

TOTAL ASSETS 527,333 429,237 369,983 487,802 391,816 337,191

annual report 2006


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Pico (Thailand) Public Company LimitedBalance Sheets (Continued)

As at October 31

Thousand Baht


2006 2005 2004 2006 2005 2004

Liabilities and Shareholder’s Equity

Current Liabilities

Trade accounts payable

Related parties 3,374 1,727 1,344 7,099 4,358 5,984

Others 104,372 80,817 68,093 92,491 64,246 52,523

Total trade accounts payables 107,746 82,544 69,437 99,590 68,604 58,507

Short-term loan from a related party-Joint Venture

1,550 - - - - -

Current portion of obligations under hire-purchase agreement

2,214 1,831 1,731 2,199 1,830 1,731

Amount due to related parties 11,720 4,536 7,142 11,720 4,573 7,136

Amount due to a related party-Joint Venture

974 - - - - -

Other current liabilities

Accrued expenses 33,645 24,626 23,143 28,635 17,238 18,105

The gross amount due to customers for contract work

5,483 9,144 5,696 1,821 5,455 1,905

Deposits received from customers 7,434 644 32 8,051 644 32

Dividend payable - - 1,307 - - -

Others 26,519 17,386 15,509 22,940 13,821 11,117

Others-Joint Venture 7,187 - - - - -

Total Current Liabilities 204,472 140,711 123,997 174,956 112,255 98,533

Non Current Liabilities

Obligations under hire-purchase agreements

5,290 4,158 2,001 5,289 4,158 2,001

Total Non-current Liabilities 5,290 4,158 2,001 5,289 4,158 2,001

Total liabilities 209,762 144,869 125,998 180,245 116,413 100,534

annual report 2006


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Pico (Thailand) Public Company LimitedBalance Sheets (Continued)

As at October 31

Thousand Baht


2006 2005 2004 2006 2005 2004

Shareholders’ Equity

Share Capital

330,000 preferred shares of Baht 1 each 330 330 330 330 330 330

64,670,000 ordinary shares of Baht 1 each - - 64,670 - - 64,670

114,670,000 ordinary shares of Baht 1 each 114,670 114,670 - 114,670 114,670 -

115,000 115,000 65,000 115,000 115,000 65,000

Issued and paid-up share capital

330,000 preferred shares of Baht1 each, fully paid 330 330 330 330 330 330

64,670,000 ordinary shares of Baht 1 each, fully paid - - 64,670 - - 64,670

114,669,980 ordinary shares of Baht 1 each, fully paid 114,670 114,670 - 114,670 114,670 -

115,000 115,000 65,000 115,000 115,000 65,000

Additional Paid-in Capital

Premium on ordinary shares, net 101,250 101,250 101,250 101,250 101,250 101,250

Land Revaluation Surplus 27,917 27,917 9,217 27,917 27,917 9,217

Retained Earnings

Appropriated

Legal reserve 10,713 7,150 5,065 10,713 7,150 5,066

Unappropriated 52,677 24,086 56,124 52,677 24,086 56,124

Total company shareholders’ equity 307,557 275,403 236,656 307,557 275,403 236,657

Minority Interest 10,014 8,965 7,329 - - -

Total shareholders’ equity 317,571 284,368 243,985 307,557 275,403 236,657

Total Liabilities and Shareholders’ Equity 527,333 429,237 369,983 487,802 391,816 337,191

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Pico (Thailand) Public Company LimitedStatements of Income

For the years ended October 31

Thousand Baht


2006 2005 2004 2006 2005 2004

Revenues

Revenues from the rendering of services 1,037,604 716,499 639,065 949,030 611,994 547,347

Revenues from the rendering of

services –Joint Venture

71,191 - - - - -

Other income 3,269 3,278 2,094 5,409 4,216 4,042

Share of profits from investments

using the equity method

311 443 844 7,711 10,103 8,472

Total revenues 1,112,375 720,220 642,003 962,150 626,313 559,861

Expenses

Cost of the rendering of services 815,889 533,995 466,926 745,086 472,309 413,384

Cost of the rendering of service Joint Venture 45,579 - - - - -

Selling and administrative expenses 155,917 128,669 111,089 128,652 103,591 89,705

Selling and administrative expenses Joint Venture 387 - - - - -

Total expenses 1,017,772 662,664 578,015 873,738 575,900 503,089

Income Before Interest Expenses and

Income Tax

94,603 57,556 63,988 88,412 50,413 56,772

Interest expenses (565) (318) (1,653) (562) (318) (1,611)

Income tax (20,233) (12,899) (17,980) (16,596) (8,393) (13,994)

Income After Income Tax 73,805 44,339 44,355 71,254 41,702 41,167

Net Income of Minority Interest (2,551) (2,637) (3,188) - - -

Net income 71,254 41,702 41,167 71,254 41,702 41,167

Basic earnings per share 0.62 0.36 0.39 0.62 0.36 0.39

Weighted average number of ordinary shares 115,000 115,000 102,652 115,000 115,000 102,652

annual report 2006


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Pico (Thailand) Public Company LimitedStatements of Cash flows

For the years ended October 31 Thousand Baht

Consolidated The company only2006 2005 2004 2006 2005 2004

Cash flows from operating activities

Net income 71,254 41,702 41,167 71,254 41,702 41,167

Items to reconcile net income to net cash flows from operating activities:

Depreciation and amortization of intangible assets 14,495 11,776 11,504 8,109 6,349 5,975

Doubtful accounts and bad debt 655 1,406 1,969 228 702 1,651

Gain on sale of fixed assets (907) (1,020) 7 (960) (263) (30)

Loss on writing off of fixed assets 2,631 310 32 2,612 288 5

Unrealized gain on exchange rate (22) (18) (62) (23) - (42)

Dividend received from investments using the equity method

- 337 403 4,498 6,303 1,932

Share of profits from investments using the equity method

(311) (443) (844) (7,711) (10,102) (8,472)

Net income of minority interest 2,551 2,637 3,188 - - -

Income from operations before changes in operating assets and liabilities

90,346 56,687 57,365 78,007 44,979 42,187

Operating assets (increase) decrease

Current investment – investment in trading security - - - -

Trade accounts receivable (8,471) (12,403) (23,741) (16,888) (11,992) (12,661)

Amounts due from related parties (251) 61 111 82 5 1,583

Inventories (96) 285 (155) (96) 285 (155)

The gross amount due from customers for contract work

(9,959) 13,982 (45,970) (9,619) 16,461 (48,405)

Other current assets (22,770) (6,267) (4,022) (25,304) (5,693) (3,712)

Other current assets -Joint Venture (9,880) - - - - -

Other non-current assets (155) 519 (1,734) (105) 476 (1,727)

Operating liabilities increase (decrease)

Trade accounts payable 25,224 13,106 17,124 31,008 10,096 10,939

Amounts due to related parties 7,188 (2,606) 1,866 7,150 (2,563) 1,860

Amounts due to related parties- Joint Venture 974 - - - - -

Accrued expenses 9,018 1,483 2,934 11,307 (778) 1,272

The gross amount due to customers for contract work (3,661) 3,448 1,017 (3,633) 3,550 1,233

Deposits received from customers 6,790 612 (206) 7,407 612 (206)

Other payable - - (4,682) - - (4,682)

Other current liabilities 6,065 1,171 2,499 6,284 1,862 237

Other current liabilities – Joint Venture 7,187 - - - - -

Net cash provided by operating activities 97,549 70,078 2,406 85,600 57,300 (12,237)

annual report 2006


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Pico (Thailand) Public Company LimitedStatements of Cash flows (Continued)

For the years ended October 31 Thousand Baht


2006 2005 2004 2006 2005 2004

Cash flows from investing activities

Cash received from deposit at bank used as collateral - 2,000 - - 2,000 -

Cash payment from deposit at bank used as collateral - - (310) - - -

Cash payment from deposit at bank used as collateral

- Joint Venture

(4,920) - - - - -

Cash payment for purchases of fixed assets (37,104) (10,645) (7,141) (23,553) (7,872) (1,509)

Cash payment for purchase of Intangible assets (408) (328) (1,355) (237) (325) (1,244)

Cash payment for capital investment in Joint-Venture - - - (160) - -

Purchase of investments in associated companies (4,350) - - (4,350) - -

Purchase of investment in other company (280) (450) (610) - - (250)

Cash received from sale of investment in trading

security

- - 197 - - 197

Short-term loan to a related company (5,055) - - (8,425) - -

Proceeds from short – term loan to a related parties - - - 300 250

Cash received from sale of fixed assets 1,068 1,992 97 1,050 806 61

Cash received from sale of investment

in other company

- - 250 - - 250

Cash payment for short-term loan to a

related company

- - - - - (300)

Net cash used in investing activities (51,049) (7,431) (8,872) (35,675) (5,091) (2,545)

Cash Flows from Financing Activities

Cash received from long-term loan

from financial institution

- - 5,000 - - 5,000

Proceed from issuance of share capital - - 151,250 - - 151,250

Cash payment for obligations under

hire-purchase agreements

(2,917) (1,793) (3,730) (2,857) (1,793) (2,902)

Dividends paid (39,100) (21,655) (72,060) (39,100) (21,655) (72,060)

Dividends of subsidiary paid to minority shareholders (1,502) (2,307) (201) - - -

Cash payment for long-term loan - - (14,821) - - (14,821)

Short-term loan from a relate company-Joint Venture 1,550 - - - - -

Net cash used in financing activities (41,969) (25,755) 65,438 (41,957) (23,448) 66,467

Net increase in cash and cash equivalents 4,531 36,892 58,972 7,968 28,761 51,685

Cash and cash equivalents balance as at beginning 132,135 95,243 36,271 103,252 74,491 22,806

Cash and cash equivalents balance as at ending 136,666 132,135 95,243 111,220 103,252 74,491

annual report 2006


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Comparative financial Ratios 2004-2006Financial ratios


2006 2005 2004 2006 2005 2004

Liquidity Ratios

Current ratio (time) 1.96 2.39 2.39 2.01 2.52 2.61

Quick ratio (time) 1.94 1.72 1.57 2.00 1.74 1.58

Cash current ratio (time) 0.57 0.53 0.02 0.60 0.54 -0.13

Trade payables turnover (time) 9.50 6.65 7.22 9.44 7.03 7.37

Receivables turnover (days) 39.78 54.16 51 40.63 51 49

Profitability Ratios

Gross operating profit (%) 22.31 25.47 26.94 21.49 22.82 24.47

Operating profit (%) 8.53 8.03 10.01 9.32 8.24 10.37

Net profit (%) 6.41 5.82 6.44 7.41 6.81 7.52

Net Return on shareholders’ equity,

(ROE) (%)

23.67 15.79 22.50 24.45 16.29 23.33

Operating Efficiency

Return on Assets (%) 14.90 10.44 13.61 16.20 11.44 14.93

Return on Fixed Assets (%) 78.41 57.94 67.04 64.49 68.84 85.17

Assets Turnover (time) 2.33 1.80 2.12 2.19 1.71 2.03

Key Financial Indicators

Leverage (Debt to Equity) (time) 0.66 0.51 0.52 0.59 0.42 0.42

Interest Coverage (time) 209.46 262.16 38.70 182.84 207.58 35.26

Book Value per share (baht) 2.78 2.48 2.38 2.68 2.40 2.31

Earning per share (EPS) (baht) 0.62 0.36 0.39 0.62 0.36 0.39

3. Explanation and Analysis • Operating results

The overall 2006 operation was affected by both external

and domestic events and developments. Some of these are

the continued fluctuating oil prices, bird flu and the

unpredictable U.S. economy with the resultant unsettled

interest and foreign exchange rates. The domestic

disturbances are the political tension, continued and

unresolved southern unrest and the severe flooding.

Despite these potentially adverse conditions we have

managed to come through with one of our best years ever

with total consolidated income at Baht 1,112 million and

net profit after taxes of Baht 71 million, an increase of

54% and 71% over the previous year.

Revenue from services rendered

The consolidated revenue from services for 2006

amounted to Baht 1,109 million, an increase of Baht

392 million or 55% over the previous year.

- The revenue from joint ventures totaled Baht 71

million. In 2006 we participated in joint ventures with Ek

Kha Thai Co., Ltd., Pico (Thailand) Public Co., Ltd. and

Bewcon Co., Ltd. These were for specific transactions for

the design and realization of display for the second

children museum which will be completed February 2007,

- The revenue from our traditional business grew by

Baht 322 million to total Baht 1,037 million (45%).

Increases came from all of our product segments such as

event marketing and knowledge communication and from

all customer segments both private and public sector such

as the automobile, telecommunication, energy and

financial institutions. The increased turnover is consistent

and evenly distributed. The quarterly turnover for the

current year is consistently higher than the corresponding

interval of the previous year.

• Event marketing revenue increased by 26% to

Baht 636 million.

annual report 2006


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• Knowledge communication projects increased

by 130% to Baht 236 million.

• Other service income increased by 50% to Baht

165 million.

Gross Profit Margin

Our operating profit for the year is at 22.3% due

primarily to the changing in scope of services in both the

event marketing and knowledge communication.

Additionally the project size in monetary terms were

relatively high especially those from the public budget. Our

gross margin therefore is slightly lower due the changes

noted.

Selling and General Administrative expenses

The selling, general and administrative expenses increased

21% of turnover to Baht 156 million. Increases came

principally from organizational restructure, major office

renovation, substantial investment in human resource

development and the improvement in staff welfare and

benefits. These developments were undertaken to prepare

us for future growth and expansion. In connection with

the office renovation we have carefully examined the

existing and useable assets and wrote off Baht 2.8 million.

Net Income

Consolidated net profit amounted to Baht 71

million, an increase of Baht 29 million or 71% relative to

the previous year.

• Financial Standing

Assets

Consolidated assets of Baht 527 million consist of:

- Baht 116 in cash or 22% of total assets

representing an increase of 107%. This surplus will increase

the operational flexibility.

- Other current assets consist of short term

investments, trade receivables and accrued income

amounting to Baht 286 million or 54% of total assets. This

represents a 30% increase which is in line with the total

revenue growth and the recognition of income for works

completed.

- Long term assets consist of land, buildings,

equipments and other investments of Baht 125 million or

24% of total assets. The 34% increase in long term assets

is attributed mainly to the value of the major renovation

undertaken in 2006.

• Sources of Fund

The significant increase in revenue resulted in a

corresponding increase in trade receivables which was

financed internally by trade payables and equity with no

bank debt. Total liabilities of Baht 210 million consist

mostly of current obligations with only Baht 5 million in

long term obligation. Total shareholder’s equity amounts

to Baht 317 million resulting in the long term debt to

equity at a respectable 0.02 and overall leverage at 0.66

representing a slightly rise due to the revenue increase. The

operation continues to be very liquid with the current

position at 1.96.

Liquidity and cash generation

Internal cash generation continues to be strong and

consistent. Net operation generated cash improved by

Baht 28 million resulting from increased trade payables.

Non operating needs were office renovation (Baht

37 million), investment in associated companies (Baht

4 million) and dividend payment (Baht 39 million).

Net consolidated cash at year end 2006 was Baht 137

million consisting of Baht 116 million in cash and near

cash and Baht 21 million in short term investment in

government bonds.

Contingent liabilities

As of 31 October 2006 total bank guarantees

issued on our behalf by commercial banks amounted to

Baht 66.8 million or an increase of Baht 20.2 million. This is

as expected given the substantial increase in new and

larger projects acquired.

annual report 2006


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Name / Office / Telephone No. / Fax. No.

Registrar Common Share Thailand Securities Depository Co., Ltd.

Preferred Share Capital Market Academy Building,

The Stock Exchange of Thailand

2/7 Moo 4, (North Park Project)

Vibhavadi-Rangsit Road, Km. 27,

Tung Song Hong, Laksi,

Bangkok 10210

Tel: (66-2) 596-9000

Fax : (66-2) 832-4994 to 4996

Auditor Mrs. Nachalee Boonyakarnkul

Certified Public Accountant (Thailand)

Registration No. 3126

Deloitte Touche Tohmatsu Jaiyos Audit Co., Ltd.

Rajanakarn Building, 25th Floor,

183 South Sathorn Road,

Yannawa, Sathorn, Bangkok 10120

Tel : (66-2) 676 5700

Fax : (66-2) 676 5757-8

Legal Advisor Dharmniti Law Office

4th floor, Nai Lert Tower,

2/4 Wireless Road,

Lumphini, Pathumwan,

Bangkok 10330

Tel : (66) 2252-1260

Fax : (66) 2252-1104

Financial Advisor - None -

Other References

annual report 2006


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Intercompany Transactions

During the year transactions were made between affiliated companies with prices and charges levied

for merchandises sold and services rendered. The prices and charges constituted our normal business transaction with

subsidiaries, joint ventures and persons who may be seen as having conflicts of interest. The terms and conditions in these

transactions are in line with normal business transaction. These transactions are disclosed in the notes to financial

statements no 21 as of October 31, 2006. Details of transactions with affiliated companies and persons described above

are as follows:

Account Company Relationship

Transaction Value (Baht)

Remarks2006 2005

1 Nov 05 -31 Oct 06

1 Nov 04 -31 Oct 05

1) Revenues

from the

rendering

of services

Pico Art International Pte Ltd

Pico Art Exhibition Inc.

Pico International Taiwan Ltd

Pico International Ltd.

Pico International (M)

Sdn. Bhd.

Pico International (China) Limited

Pico (China) Ltd.

Pico Hong Kong Limited

Pico Australia Pty Ltd.

Pico Exhibition (UK) Ltd.

Pico International (HK) Ltd.

Meeting Planners International (HK) Ltd

Pico Chicago

U-Rent Company Limited

Joint Venture

Major Shareholder

Same Ultimate Holding Company












Associated Company

Joint Venture

4,945,942

17,664

2,316,391

-

181,673

1,091,519

-

-

137,383

1,258,016

1,947,620

-

936,027

1,549,772

37,988,052

3,133,989

73,666

-

2,596,583

269,579

2,053,528

1,430,841

721,957

-

714,860

2,411,732

296,800

-

255,703

-

Income f rom serv ice

provided to companies

with common majority

shareholders. This is due

to the policy to leverage

the extensive network of

the company to provide

an integrated service to

clients. Service charges

are computed on a cost

p lus bas is cons istent

with the method charged

others . The t ransac -

tions are therefore nor-

mal trade transactions

52,370,059 13,959,238

2) Trade

accounts

receivable

Pico Art International Pte Ltd

Pico Art Exhibition

Pico International (China) Limited

Pico International Taiwan Ltd

Pico International Ltd.

Pico (China) Ltd.

Meeting Planners International (HK) Ltd.

Pico International (M) Sdn. Bhd.

Pico Australia Pty Ltd.

Pico International (HK) Ltd.

U-Rent Company Limited

Major Shareholder










Associated Company

110,000

-

1,093,033

260,000

-

-

-

119,840

147,000

570,000

26,584

98,375

81,382

-

-

2,505,010

1,531,000

317,576

202,850

-

1,640,047

21,732

Trade receivables arose

f r o m t h e s e r v i c e s

provided to copan ies

w i t h i n t h e g r o u p

(deta i l s in 1) . Credit

t e r m s e x t e n d e d t o

copanies with common

majority shareholders

a ve rage 60 -90 day s

consistent with normal

trade transactions, normal

business terms. Therefore

these transactions are

normal trade transactions

2,326,457 6,397,972

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Transaction Value(Baht)

Remarks2006 2005

1 Nov 05 -31 Oct 06

1 Nov 04 -31 Oct 05

3) Costs of the rendering of services

Pico Art International Pte LtdPico International Taiwan LtdPico International (M) Sdn. Bhd.Pico International (China) LimitedPico Atlanta Pte Ltd.Meeting Planners International (HK) Ltd.Pico International (HK) LtdInter-Expo Exhibition Services Ltd.U-Rent Company LimitedInkjet Images (Thailand) Co., Ltd.Designlab MISC Company Limited

Major ShareholderSame Ultimate Holding CompanySame Ultimate Holding CompanySame Ultimate Holding CompanySame Ultimate Holding CompanySame Ultimate Holding CompanySame Ultimate Holding CompanySame Ultimate Holding Company

Associated CompanyAssociated CompanyAssociated Company

--

327,859780,000819,65221,219

--

10,252,654964,690

7,552,000

1,369,829966,148333,846

---

246,2857,375

5,585,9511,182,900

-

Cost of serv ices ar i ses from services rendered by group companies. These are in accordance with the company’s agreement with affiliates to leverage the special ized expert ise of Pico’s group of companies to deliver an integrated service package to the customer. The company canslect on particular expertise of a PICO c o m p a n y w i t h i n t h e g roup . The t ransp i red transactions are therefore normal trade practice with s imi lar charges as with others outside the group.

20,718,074 9,692,334

4) Trade accounts

payable

Pico International (China) LimitedPico International (M) Sdn. Bhd.U-Rent Company LimitedInkjet Images (Thailand) Co., Ltd.Designlab MISC Company Limited

Same Ultimate Holding CompanySame Ultimate Holding Company

Associated CompanyAssociated CompanyAssociated Company

722,782110,635

1,197,440102,858

1,027,200

-333,846

1,117,76255,390

-

The trade payables are from the transactions for se r v i ce s desc r ibed in (3) both with affiliated companies and companies with common majority shareholders. Credit terms are 60-90 days consistent with market practice. The transact ions therefore constitute normal business

3,160,915 1,506,998

5) The gross amount due from customers for contract work

Pico International Taiwan LtdPico International (HK) LtdU-Rent Company Limited

Same Ultimate Holding CompanySame Ultimate Holding Company

Associated Company

24,95098,598

-

--

500

This represents the amount for services rendered and income recognized as per progress of work without invoicing to the client. Once the project is completed as per contract invoice will be issued and this transaction will revert to trade receivables with credit terms as in (2)

123,548 500

6) Accrued Cost Pico International (China) Limited.U-Rent Company Limited

Same Ultimate Holding CompanyAssociated Company

38,744173,900

-219,772

This represents an amount due to affiliated companies for services received but not in receipt of invoice as of the account closing date. On receipt of invoice the amount will be booked as trade payables with credit terms as in (4).

212,644 219,772

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Remarks2006 2005

1 Nov 05 - 31 Oct 06

1 Nov 04 - 31 Oct 05

7) Amounts due to related parties

Pico Art International Pte Ltd.Pico Global Services Limited

Major ShareholderSame Ultimate Holding Company

11,681,64138,440

4,508,55027,398

T h e c o m p a n y o w e s P ico Art Internat ional Pte. and Pico group of companies a management f e e p e r ( 1 0 ) , m e d i a charges and marketing materials. These charges are considered normal business transactions. The policy for intercompany transaction is that market pricing is charged.

11,720,081 4,535,948

8) Dividend income U-Rent Company Limited

Associated Company

- 337,500 In 2005 Px Company which is our subsidiary received a dividend payment from U Rent Co., Ltd. No dividend payment is made this year.

- 337,500

9) Amounts due from related

parties

Pico Art International Pte Ltd.Pico Global Services LimitedU-Rent Company Limited


Associated Company

257,335-

13,600

-2,564

17,848

This represents services rendered to companies in Pico Network and our subsidiaries consisting of advances in payment of utilities. 60-90 days are given which is considered normal trade transaction.

270,935 20,412

10) Management fee (Expenses)

Pico Art International Pte Ltd. Major Shareholder

22,745,446 15,493,753 This represents management fee accord ing to the I n t e l l e c t u a l P ro p e r t y License Agreement and Offshore Services Agreement. 2.53% of revenue is paid for trade and copyrights related to Pico Art. The fee covers cooperation and assistance from Pico Art in technology, training and personnel development and marketing cooperation.

22,745,446 15,493,753

11) Other income Pico Art International Pte Ltd.Pico Global Services LimitedU-Rent Company Limited


Associated Company

-47,667

486,261

110,642-

648,348

Rental income for space leased to U Rent Co., Ltd. at rates consistent with market. Income received from Pico Global Serviecs was for meeting conference at rate which is consistent with Pico Global Services payment to other subsidiaries.

533,928 758,990

annual report 2006


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Remarks2006 2005

1 Nov 05 - 31 Oct 06

1 Nov 04 - 31 Oct 05

12) Dividends Pico Art International Pte Ltd.Directors

Major ShareholderDirectors

12,707,50010,724,519

21,496,66719,854,359

The company paid dividends to major shareholders, P ico Art Internat ional and directors: Mr. Pised, Mr. Silchai, and Miss Nitida in amount of Baht 12,707,500, Baht 9,973,266.92, Baht 435,027.96 and Baht 316,223.80 respectively. This payment is consistent with rate paid to other shareholders.

23,432,019 41,351,026

13) Other expenses Pico Art International Pte Ltd.Pico International Ltd.Pico Global Services Limited

Major ShareholderSame Ultimate Holding CompanySame Ultimate Holding Company

476,488-

189,517

152,22390,239

245,434

Payments were made to several companies within the Pico group for items such as office supplies w i th “P i co Network” heading, insurance for works performed. These payments are considered normal business transactions and the charges are similar to amounts paid by all Pico companies worldwide.

666,005 487,896

14) Directors’ remuneration

Directors Director

4,400,000 4,000,000 Compensation was made to directors in accordance with the shareholders’ resolution.

15) Short – term loan to a related party

Joint Venture Joint Venture

5,054,915 - A d v a n c e s m a d e a n d considered normal business transaction.

16) Other current asset

Joint Venture Joint Venture 4,064,722 - Retention deducted by the joint venture on each progress payment received similar to retention deducted by other customers.

17) The gross amount due to customers for contract work

Pico Australia Pty Ltd. Same Ultimate Holding Company 136,796 - Advance payment received for works to be completed. This is normal trade transaction where advance payment is made as a condition of the contract.

18) Deposits received from customers

Joint Venture Joint Venture 925,415 - Deduction made on prog-ress payment by the joint venture to l iquidate the advance payment received. Considered normal trade practice

annual report 2006


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Remarks2006 2005

1 Nov 05 - 31 Oct 06

1 Nov 04 -31 Oct 05

19) Investments using the equity method

U-Rent Company LimitedBec – Tero Exhibition Co.,LtdDesignlab MISC Company LimitedIbrix Company LimitedInkjet Images (Thailand) Co., Ltd

Associated CompanyAssociated CompanyAssociated CompanyAssociated CompanyAssociated Company

2,316,743366,906487,543

2,212,6554,884,319

1,560,155---

4,047,477

Pico invested in Inkjet Images (Thailand) Co., Ltd., Bec-Tero Exhibition Co., Ltd., Designlab MISC Company Limited And Ibrix Company Limited at 22.22%, 39%, 20 and 40 respectively. PX System invested in U-Rent at 22.5% Pico (Thailand) Plc. and PX System Co., Ltd. recorded the investment at net book value which is deemed to represent a fair value.

10,268,166 5,607,602

20) Share of profits from investments using the equity method

U-Rent Company LimitedInkjet Images (Thailand) Co., LtdBec - Tero Exhibition Co., LtdDesignlab MISC Company LimitedIbrix Company Limited

Associated CompanyAssociated CompanyAssociated CompanyAssociated CompanyAssociated Company

756,588836,872

(1,583,073)87,643

212,855

585,813(142,938)

---

Pico invested in Inkjet Images (Thailand) Co., Ltd., Bec - Tero Exhibition Co., Ltd., Designlab MISC Company Limited. And Ibrix Company Limited at 22.22%, 39%, 20 and 40 respectively. PX System invested in U-Rent at 22.5% Pico (Thailand) Plc. and PX System Co., Ltd. recorded the investment at net book value which is deemed to represent a fair value.

310,885 442,875

* The company is an indirect shareholder of U - Rent Co., Ltd. through PX System Co., Ltd. at 22.5% of total.

• Procedures for approval of intercompany transactions.

The policy for approval of intercompany

for deliberation by independent directors and final approval

by the Board of Directors during

which directors with vested interest shall abstain from

voting.

• Trend for future intercompany transaction

In the past, as a limited liability company, Pico was

subject to regulations concerning intercompany

transactions, as is the case with a public company. There

were transactions that management was involved in the

approval process with related companies and individuals

related to intellectual property rights, which were

considered normal business transactions. In the conduct

of these transactions the maximum benefits to the

company was of primary concern.

It is expected that such transaction with related

such as sale or purchases with credit terms extended or

received will continue in a normal course

of business. These transactions with related individuals will

be screened by independent directors to ensure that they

are consistent with normal trade transaction. The company

will strictly follow the relevant SET announcements with

no person with vested interest taking part in the approval

process of such transaction.

annual report 2006


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Report of The Independent Certified Public Accountants

REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORSPICO (THAILAND) PUBLIC COMPANY LIMITED

We have audited the consolidated balance sheet of Pico (Thailand) Public Company Limited and its subsidiaries and the balance sheet of Pico (Thailand) Public Company Limited as at October 31, 2006, and the related consolidated and Company’s statements of income, changes in shareholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management as to their correctness and completeness of the presentation. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements for the year ended October 31, 2005, presented herein for comparison, have been audited by another auditor of the same firm whose audit report thereon dated November 23, 2005 stated that nothing had come to her attention that caused her to believe that the financial statements were not presented fairly, in all material respects, in accordance with generally accepted accounting principles.We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the aforementioned consolidated and Company’s financial statements present fairly, in all material respects, the financial position of Pico (Thailand) Public Company Limited and its subsidiaries and of Pico (Thailand) Public Company Limited as at October 31, 2006, and the results of its operations and its cash flows for the year then ended in accordance with generally accepted accounting principles.

Nachalee Boonyakarnkul Certified Public Accountant (Thailand)

BANGKOK Registration No. 3126 December 8, 2006 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.

annual report 2006


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Balance Sheets As at October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005ASSETS

CURRENT ASSETSCash and cash equivalents 115,637,608 55,668,650 91,093,563 28,237,875Cash and cash equivalents - Joint Venture 432,776 - - -Current investments (Note 5) 20,595,547 76,466,796 20,126,097 75,013,902Trade accounts receivable, net (Note 6) 118,312,310 110,500,032 107,847,671 91,190,060Amounts due from related parties (Note 21) 270,935 20,412 619,268 701,371Short-term loan to a related party (Notes 7 and 21) 5,054,915 - 8,424,859 -Inventories 367,213 271,410 367,213 271,410Other current assets

The gross amount due from customers for contract work (Notes 8 and 21) 83,156,895 73,197,392 78,871,579 69,252,694Deposits at banks used as collateral - Joint Venture 4,920,000 - - -Others (Note 21) 43,147,667 20,363,708 43,610,511 18,306,705Others - Joint Venture 9,880,342 - - -Total Current Assets 401,776,208 336,488,400 350,960,761 282,974,017

NON - CURRENT ASSETSDeposits at banks used as collateral (Note 9) 810,000 810,000 - -Investments using the equity method

(Notes 10 and 21) 10,268,166 5,607,602 41,040,503 33,318,525Other long-term investments 1,210,000 930,000 - -Property, plant and equipment, net (Notes 11 and 21) 109,169,459 82,508,458 91,990,559 72,726,451Intangible assets, net (Note 12) 2,639,960 1,587,897 2,400,540 1,492,523Other non-current assets 1,459,491 1,304,536 1,409,491 1,304,536

Total Non - Current Assets 125,557,076 92,748,493 136,841,093 108,842,035TOTAL ASSETS 527,333,284 429,236,893 487,801,854 391,816,052

Notes to the financial statements form an integral part of these statements

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

AS AT OCTOBER 31, 2006 AND 2005

CONSOLIDATED THE COMPANY ONLY

BALANCE SHEETS

BAHT

annual report 2006


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Balance Sheets (Continued) As at October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIES

Trade accounts payable (Note 14) 107,745,536 82,543,547 99,589,733 68,603,618Short-term loan from a related party

- Joint Venture 1,550,056 - - -Current portion of obligations under

hire-purchase agreements (Note 16) 2,214,478 1,830,527 2,198,654 1,830,527Amounts due to related parties (Note 21) 11,720,081 4,535,948 11,720,081 4,573,398Amount due to a related party - Joint Venture 974,496 - - -Other current liabilities

Accrued expenses 33,644,576 24,626,130 28,634,869 17,327,515The gross amount due to customers

for contract work (Notes 15 and 21) 5,483,446 9,144,461 1,821,218 5,454,800Deposits received from customers (Note 21) 7,433,673 643,658 8,050,616 643,658Others 26,519,444 17,386,471 22,939,931 13,821,075Others - Joint Venture 7,186,669 - - -

Total Current Liabilities 204,472,455 140,710,742 174,955,102 112,254,591

NON - CURRENT LIABILITIESObligations under hire-purchase agreements

(Note 16) 5,289,535 4,157,986 5,289,535 4,157,986Total Non - Current Liabilities 5,289,535 4,157,986 5,289,535 4,157,986

TOTAL LIABILITIES 209,761,990 144,868,728 180,244,637 116,412,577

BAHT


PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIESBALANCE SHEETS (CONTINUED)

AS AT OCTOBER 31, 2006 AND 2005


annual report 2006


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2006 2005 2006 2005LIABILITIES AND SHAREHOLDERS’ EQUITY (CONTINUED)SHAREHOLDERS’ EQUITYSHARE CAPITAL (Note 17)

Registered share capital 330,000 preferred shares of Baht 1 each 330,000 330,000 330,000 330,000114,670,000 ordinary shares of Baht 1 each 114,670,000 114,670,000 114,670,000 114,670,000

115,000,000 115,000,000 115,000,000 115,000,000Issued and paid-up share capital

330,000 preferred shares of Baht 1 each,fully paid 330,000 330,000 330,000 330,000

114,669,980 ordinary shares of Baht 1 each,fully paid 114,669,980 114,669,980 114,669,980 114,669,980

114,999,980 114,999,980 114,999,980 114,999,980ADDITIONAL PAID-IN CAPITAL

Premium on ordinary shares, net (Note 17) 101,250,000 101,250,000 101,250,000 101,250,000LAND REVALUATION SURPLUS (Note 11) 27,917,379 27,917,379 27,917,379 27,917,379RETAINED EARNINGS

Appropriated Legal reserve (Note 18) 10,713,261 7,150,578 10,713,261 7,150,578

Unappropriated 52,676,597 24,085,538 52,676,597 24,085,538TOTAL COMPANY SHAREHOLDERS'

EQUITY 307,557,217 275,403,475 307,557,217 275,403,475MINORITY INTEREST 10,014,077 8,964,690 - -

TOTAL SHAREHOLDERS’ EQUITY 317,571,294 284,368,165 307,557,217 275,403,475TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY 527,333,284 429,236,893 487,801,854 391,816,052


BAHT

BALANCE SHEETS (CONTINUED)AS AT OCTOBER 31, 2006 AND 2005


PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

annual report 2006


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Statements of Income For The Years Ended October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005REVENUES

1,037,603,862 716,498,586 949,030,066 611,993,977Revenues from the rendering of services

- Joint Venture 71,191,028 - - -Other income (Note 21) 3,269,311 3,278,092 5,409,077 4,216,563Share of profits from investments

using the equity method (Note 21) 310,885 442,875 7,710,799 10,102,938Total Revenues 1,112,375,086 720,219,553 962,149,942 626,313,478

EXPENSESCosts of the rendering of services (Note 21) 815,889,256 533,994,590 745,085,785 472,309,333Costs of the rendering of services - Joint Venture 45,579,034 - - -Selling and administrative expenses (Note 21) 155,916,525 128,669,140 128,651,748 103,591,407Selling and administrative expenses - Joint Venture 387,544 - - -

Total Expenses 1,017,772,359 662,663,730 873,737,533 575,900,740

INCOME BEFORE INTEREST EXPENSESAND INCOME TAX 94,602,727 57,555,823 88,412,409 50,412,738

INTEREST EXPENSES 565,577 317,731 562,218 317,731INCOME TAX 20,232,613 12,899,224 16,596,541 8,392,962INCOME AFTER INCOME TAX 73,804,537 44,338,868 71,253,650 41,702,045NET INCOME OF MINORITY INTEREST (2,550,887) (2,636,823) - -NET INCOME 71,253,650 41,702,045 71,253,650 41,702,045

BASIC EARNINGS PER SHARE (Note 20) BAHT 0.62 0.36 0.62 0.36

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (Note 17) SHARES 114,669,980 114,669,980 114,669,980 114,669,980


Revenues from the rendering of services (Note 21)

THE COMPANY ONLYCONSOLIDATED

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF INCOME

FOR THE YEARS ENDED OCTOBER 31, 2006 AND 2005BAHT


annual report 2006


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Begin

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,250,0

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--

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BAHT

Issued

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ese sta

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s

Retai

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annual report 2006


Menu

The

Co

mp

any’

s St

atem

ents

of

Ch

ang

es in

Sh

areh

old

ers’

Eq

uit

y

For

The

Year

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1,

20

06

an

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PIC

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Ordin

ary

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shares

shares

shares

Begin

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, Nove

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, 2004

330,00

0

64,

670,00

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101,25

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9,2

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56,

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7

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(Note

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0

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--

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(Note

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18)

--

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(Note

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idends

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red (N

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(39,09

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(39,09

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Net in

come

--

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253,65

0

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ding b

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, Octo

ber 31

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330,00

0

114

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PICO

(THAI

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CHAN

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FOR

THE

YEAR

S END

ED O

CTOB

ER 31

, 2006

AND

2005

BAHT

annual report 2006


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Statements of Cash Flows For The Years Ended October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005CASH FLOWS FROM OPERATING ACTIVITIESNet income 71,253,650 41,702,045 71,253,650 41,702,045Items to reconcile net income to net cash flows from

operating activities:Depreciation and amortization of intangible assets 14,495,481 11,776,063 8,108,854 6,348,792Doubtful accounts and bad debt 655,546 1,406,632 228,200 702,146Gain on sale of fixed assets (906,977) (1,020,488) (960,073) (262,565)Loss on writing off of fixed assets 2,630,617 309,507 2,611,858 288,284Unrealized gains on exchange rate (22,020) (17,817) (23,323) -Dividends received from investments

using the equity method - 337,500 4,498,500 6,302,800Share of profits from investments

using the equity method (310,885) (442,875) (7,710,799) (10,102,938)Net income of minority interest 2,550,887 2,636,823 - -

Income from operations before changes in operatingassets and liabilities 90,346,299 56,687,390 78,006,867 44,978,564

Operating assets (increase) decreaseTrade accounts receivable (8,471,474) (12,402,637) (16,888,156) (11,992,341)Amounts due from related parties (250,523) 60,496 82,103 5,139Inventories (95,803) 284,834 (95,803) 284,834The gross amount due from customers for

contract work (9,959,502) 13,982,466 (9,618,884) 16,460,700Other current assets (22,770,415) (6,267,855) (25,303,807) (5,693,049)Other current assets - Joint Venture (9,880,342) - - -Other non - current assets (154,955) 519,342 (104,955) 475,811

52,864,036 26,077,365 44,519,658

THE COMPANY ONLYCONSOLIDATED

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS



annual report 2006


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Statements of Cash Flows (Continued) For The Years Ended October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005CASH FLOWS FROM OPERATING ACTIVITIES(CONTINUED)

Operating liabilities increase (decrease)Trade accounts payable 25,223,927 13,106,389 31,008,053 10,096,385Amounts due to related parties 7,187,864 (2,606,404) 7,150,414 (2,562,924)Amount due to a related party - Joint Venture 974,496 - - -Accrued expenses 9,018,446 1,482,915 11,307,354 (777,842)The gross amount due to customers for contract work (3,661,015) 3,448,065 (3,633,583) 3,550,035Deposits received from customers 6,790,015 611,900 7,406,958 611,900Other current liabilities 6,065,056 1,171,610 6,283,771 1,862,599Other current liabilities - Joint Venture 7,186,669 - - -

Net cash provided by operating activities 97,548,743 70,078,511 85,600,332 57,299,811

CASH FLOWS FROM INVESTING ACTIVITIESCash received from deposit at bank used as collateral - 2,000,000 - 2,000,000Cash payment from deposits at banks used as collateral

- Joint Venture (4,920,000) - - -Cash payment for purchases of fixed assets (37,104,391) (10,645,213) (23,553,048) (7,871,612)Cash payment for purchase of intangible assets (408,862) (328,303) (237,472) (324,676)Cash payment for capital investment in Joint Venture - - (160,000) -Purchase of investments in associated companies (4,349,680) - (4,349,680) -Purchase of investment in other companies (280,000) (450,000) - -Short-term loan to a related company (5,054,915) - (8,424,859) -Proceeds from short-term loan to a related parties - - - 300,000Cash received from sale of fixed assets 1,068,442 1,992,248 1,049,842 805,572

Net cash used in investing activities (51,049,406) (7,431,268) (35,675,217) (5,090,716)

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED)




annual report 2006


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Statements of Cash Flows (Continued) For The Years Ended October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

2006 2005 2006 2005CASH FLOWS FROM FINANCING ACTIVITIES

Cash payment for obligations under hire-purchase agreements (2,917,500) (1,792,505) (2,857,324) (1,792,505)

Dividends paid (39,099,908) (21,655,482) (39,099,908) (21,655,482)Dividends of subsidiaries paid to minority shareholders (1,501,500) (2,307,200) - -Short-term loan from a related company - Joint Venture 1,550,056 - - -

Net cash used in financing activities (41,968,852) (25,755,187) (41,957,232) (23,447,987)

Net increase in cash and cash equivalents 4,530,485 36,892,056 7,967,883 28,761,108Cash and cash equivalents balance as at beginning 132,135,446 95,243,390 103,251,777 74,490,669Cash and cash equivalents balance as at ending (Note 4.2) 136,665,931 132,135,446 111,219,660 103,251,777



BAHTFOR THE YEARS ENDED OCTOBER 31, 2006 AND 2005

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED)

annual report 2006


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Notes to the Consolidated and Company Financial Statements For The Years Ended October 31, 2006 and 2005 PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES

PICO (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS FOR THE YEARS ENDED OCTOBER 31, 2006 AND 2005

1. OPERATIONS OF THE COMPANY AND SUBSIDIARIES

Pico (Thailand) Public Company Limited and subsidiaries are companies registered in Thailand. The information of business, locations and number of employees of the Company and subsidiaries as at October 31, are as follows:

Name Registered date Business type Location* Number of Employees

2006 2005 Pico (Thailand) Public March 27, 1992 Design and fabrication of exhibition 10 Soi Lasalle 56 98 94

Company Limited booths for trade exhibition organizers, Sukhumvit Rd., company showrooms and shop Kwang Bangna, counters, interiors for museums, theme Khet Bangna,

park and visitor centers Bangkok Subsidiaries PX System February 23, 1995 Rental of equipment and contractor on 10 Soi Lasalle 56 21 18

Company Limited the trade exhibition standard booths Sukhumvit Rd., Kwang Bangna, Khet Bangna, Bangkok

Artcom Graphic March 12, 1996 Graphic banner and inkjet printing 10 Soi Lasalle 56 19 20 Company Limited design Sukhumvit Rd.,

Kwang Bangna, Khet Bangna,

Bangkok Multi Designs April 19, 1995 Trade exhibition and interior design 10 Soi Lasalle 56 11 8

Company Limited Sukhumvit Rd., Kwang Bangna, Khet Bangna, Bangkok

The major shareholder of Pico (Thailand) Public Company Limited is Pico Art International Pte Ltd which was incorporated in Singapore. The Company became listed on the Market for Alternative Investment on April 20, 2004. For the year ended October 31, 2006, staff costs of the Company and subsidiaries in the consolidated and the Company’s financial statements are approximately Baht 106.01 million and Baht 84.99 million, respectively and for the year ended October 31, 2005 the staff costs of the Company and subsidiaries in the consolidated and the Company’s financial statements are Baht 82.65 million and Baht 62.71 million, respectively.* On May 8, 2006, the Company and subsidiaries changed their addresses from 39/4 Moo 9 Soi

Sukhumvit 105 (Lasalle 56) Sukhumvit Rd., Kwang Bangna, Khet Bangna, Bangkok, to 10 Soi Lasalle 56 Sukhumvit Rd., Kwang Bangna, Khet Bangna, Bangkok, commencing on May 8, 2006 onward.

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2. BASIS FOR PREPARATION OF THE CONSOLIDATED AND COMPANY’S FINANACIAL STATEMENTS

2.1 The statutory financial statements are prepared in the Thai language in accordance with accounting standards and practices generally accepted in Thailand. The financial statements are shown in accordance with the Notification of the Department of Commercial Registration (currently the Department of Business Development) dated September 14, 2001 regarding “The Brief Particulars in the Financial Statements B.E. 2544”.

2.2 The consolidated financial statements include the accounts of Pico (Thailand) Public Company Limited, three subsidiaries and Joint Venture (applied proportionate consolidation) by eliminating significant balances and business transactions with such parties. The portions of the Company’s ownership as at October 31, 2006 and 2005 are as follows:

% of ownership Subsidiary companies

PX System Company Limited 89.95 Artcom Graphic Company Limited 60.00 Multi Designs Company Limited 59.90

Joint Venture % of proportion Joint Venture of Ekca Thai Co., Ltd, Pico (Thailand) Pcl.

and Bewcon Co., Ltd. 40.00

3. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are summarized below: 3.1 Allowance for doubtful accounts

Allowance for doubtful accounts is provided at the estimated collection losses on receivables, based on the Company’s collection experience together with a review of the financial position of each debtor.

3.2 Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method.

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3.3 Investments in subsidiaries, associated companies, Joint Venture and other companies Investments in subsidiary and associated companies are presented by the equity method except in the case an impairment in value of investment has occurred, the resultant loss is recognized in the statement of income.

Interests in Joint Venture included in the Company’s financial statements is accounted for by equity method. Investments in other companies are general investments which are stated at cost. Debt securities held-to-maturity are stated at the amortized cost. The difference of net book value at the date of acquisition being over or under cost of investments has been recognized as income or expense in the statement of income. Management believes that the net book value at the acquisition date approximates to the fair value of investments.

3.4 Property, plant and equipment Land is stated at the appraised value. Plant and equipment are stated at cost, net of accumulated depreciation.Depreciation is computed by the straight-line method, based on the estimated useful lives of the assets as follows:

Buildings and building improvement 20 years Operating equipment 2.5 - 5 years Others 3 - 5 years

Where the carrying amount of an asset is greater than its recoverable amount, it is written down immediately to its recoverable amount. The recoverable amount is the higher of the anticipated discounted cash flows from the continuing use of the assets and the amount obtainable from the sale of the assets less any costs of disposal.Increases in carrying amount arising on land revaluation are credited to land revaluation surplus in shareholders’ equity. Where the carrying amount of land is greater than the revalued amount, it is written down in the statement of income. Revaluation decreases are charged against the related revaluation surplus in respect of the same land to the extent that the decrease does not exceed the amount held in the revaluation surplus in respect of such land; decreases in excess of that amount are charged to the statement of income. The Company has a policy for revaluation of land used in operations every 5 years by the independent appraisers.

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3.5 Intangible assets Intangible assets consisting of computer software and patent are stated at cost, net of accumulated amortization.Amortization is calculated by the straight-line method, based on the estimated useful lives of the assets as 5-10 years.

3.6 Long-term lease a) Operating lease

Lease in which substantially all the risks and rewards of ownership of assets remain with the lessor are accounted for as operating lease. Rentals applicable to such operating leases are charged to the statement of income over the lease term.

b) Finance lease Finance lease are the leases in which substantially all the risks and rewards of ownership other than legal title are transferred to the Company. At inception, the fair value of the leased assets is recorded together with the obligations after netting deferred interest. The leased assets are depreciated using the straight-line method over their estimated useful lives. Interest, finance charge, or depreciation are recognized in the statement of income.

3.7 Foreign currency transactions Transactions denominated in foreign currencies incurred during the year are translated into Baht at the rates of exchange prevailing at the transaction dates. All balances of monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into Baht at the exchange rates announced by the Bank of Thailand at that date. Gains or losses on foreign exchange arising on settlements and translation are recognized as income or expense in the statement of income as incurred.

3.8 Recognition of revenues Service income is recognized by the percentage of completion method. The percentage of completion is measured by the proportion of actual costs incurred up to the end of the year and the total anticipated cost to be incurred to completion.

3.9 Provident fund The Company has a provident fund for those employees who have indicated their willingness to join. The contributions from the employees are deducted from their monthly salaries, with the Company matching the individuals’ contributions. The provident fund is managed by a financial institution which is authorized by the Government in accordance with the Provident Fund Act B.E. 2530 (1987). The contribution for employee provident fund is recorded as expenses when incurred.

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3.10 Income tax expense Income tax expense, if any, is based on tax paid and accrued for the year.

3.11 Basic earnings per share Basic earnings per share are calculated by dividing net income for the year after cash dividend or dividend which has been declared for preferred shares, by the weighted average number of ordinary shares outstanding during the year.

3.12 Use of accounting estimates Preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities. Actual results may differ from those estimates.

4. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION AND CASH EQUIVALENTS

4.1 Cash paid for interest and income tax for the years ended October 31, are as follows: Baht

CONSOLIDATED THE COMPANY ONLY 2006 2005 2006 2005

Interest paid 565,577 317,731 562,218 317,731Income tax 27,755,183 21,391,447 22,639,215 16,851,497

4.2 Cash and cash equivalents consist of cash in hand and all types of deposits at financial institutions with original maturities of three months or less and excluding deposits at financial institutions used as collateral as at October 31, are as follows:

BahtCONSOLIDATED THE COMPANY ONLY

2006 2005 2006 2005

Cash and deposits at financial institutions 115,637,608 55,668,650 91,093,563 28,237,875Cash and deposits at financial institutions -

Joint Venture 432,776 - - -Others (Note 5) 20,595,547 76,466,796 20,126,097 75,013,902

136,665,931 132,135,446 111,219,660 103,251,777

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4.3 Non-cash transactions as at October 31, are as follows: 4.3.1 Fixed assets and intangible assets payable


2006 2005 2006 2005

Fixed assets and intangible assets payable brought forward 1,351,944 645,687 1,217,318 375,367

Purchases of fixed assets and intangible assets 45,014,169 15,728,773 30,982,606 13,087,239

Less Cash payments for purchases of fixed assets and intangible assets (37,513,253) (10,973,516) (23,790,520) (8,196,288)

Purchases fixed assets by hire-purchasing agreement (4,433,000) (4,049,000) (4,357,000) (4,049,000)

Fixed assets and intangible assets payable carried forward 4,419,860 1,351,944 4,052,404 1,217,318

4.3.2 Land revaluation surplus Baht


Land revaluation surplus brought forward 27,917,379 9,217,379 27,917,379 9,217,379

Increasing in land valuation for the year - 18,700,000 - 18,700,000

Land revaluation surplus carried forward 27,917,379 27,917,379 27,917,379 27,917,379

4.3.3 Dividend payable Baht


Dividend payable brought forward - 1,306,200 - - Dividends declared for the year

(Note 19) 40,601,408 72,656,462 39,099,908 71,655,462 Less Cash payments for dividends (40,601,408) (23,962,682) (39,099,908) (21,655,482)

Stock dividend - (49,999,980) - (49,999,980) Liabilities recorded (included in

other current liabilities) - - - -

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4.3.4 Dividend receivable Baht


Dividend receivable brought forward - - - 3,303,800 Dividends declared for the year - 337,500 4,498,500 2,999,000 Less Cash received - (337,500) (4,498,500) (6,302,800)Assets recorded (included in

other current assets) - - - -

5. CURRENT INVESTMENTS

Current investments as at October 31, consist of the following: Baht


Short-term promissory note - 15,000,000 - 15,000,000 Debt securities held-to-maturity 20,000,000 59,888,815 20,000,000 59,888,815 Fixed deposits at banks - 3 months 595,547 1,577,981 126,097 125,087

20,595,547 76,466,796 20,126,097 75,013,902

6. TRADE ACCOUNTS RECEIVABLE, NET Trade accounts receivable, net as at October 31, are as follows:


2006 2005 2006 2005Trade accounts receivable, net

- Related parties (Note 21) 2,326,457 6,397,972 2,180,033 6,277,865 - Others 115,985,853 104,102,060 105,667,638 84,912,195

118,312,310 110,500,032 107,847,671 91,190,060

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Analysis of trade accounts receivable - net aging as at October 31, is as follows: Baht


Related parties Current 924,924 3,134,773 778,500 3,132,633 Overdue

Within 3 months 1,401,533 2,860,592 1,401,533 2,841,000 Between 3 and 6 months - 208,757 - 110,382 Between 6 and 12 months - 193,850 - 193,850

2,326,457 6,397,972 2,180,033 6,277,865

OthersCurrent 77,138,458 76,988,841 70,725,316 61,135,171 Overdue

Within 3 months 21,828,045 14,266,982 18,415,459 12,367,272 Between 3 and 6 months 10,674,764 11,876,486 10,235,263 10,955,002 Between 6 and 12 months 6,310,176 990,230 6,206,000 406,600 More than 12 months 1,750,717 2,885,356 586,325 1,634,925

117,702,160 107,007,895 106,168,363 86,498,970 Less Allowance for doubtful accounts (1,716,307) (2,905,835) (500,725) (1,586,775)

115,985,853 104,102,060 105,667,638 84,912,195

The Company has not provided an allowance for doubtful accounts for the overdue related party accounts receivable as the management of the Company expects to collect in full from those receivables.

7. SHORT-TERM LOAN TO A RELATED PARTY

Short-term loan to a related party as at October 31, 2006, consists of the following: Baht


Short-term loan to a related party - Joint Venture 5,054,915 8,424,859

Related party relationship is described in Note 21. The short-term loan as at October 31, 2006, bears interest at 3.75% per annum.

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8. THE GROSS AMOUNT DUE FROM CUSTOMERS FOR CONTRACT WORK

The gross amount due from customers for contract work as at October 31, are as follows: Baht


Contract costs incurred and profit/losses recognized to date 156,123,121 99,299,264 151,105,379 95,354,566Less Billing and advances from customers (72,966,226) (26,101,872) (72,233,800) (26,101,872) 83,156,895 73,197,392 78,871,579 69,252,694

9. DEPOSITS AT BANKS USED AS COLLATERAL

As at October 31, 2006 and 2005, the subsidiaries have fixed deposits at banks used as collateral against bank overdrafts, short-term loan, and letters of guarantee issued by banks (see Notes 13 and 27).

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annual report 2006


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10.IN

VEST

MENT

S USIN

G THE

EQU

ITY M

ETHO

D

Invest

ments

using

the e

quity

metho

d as a

t Octo

ber 31

, are a

s follo

ws:

Baht

COMP

ANY’S

NAME

BU

SINES

S PO

RTIO

N OF

CO

NSOL

IDAT

ED

TH

E CO

MPAN

Y ON

LY

AC

TIVITY

INV

ESTME

NTS

PAID

-UP CA

PITAL

CO

ST M

ETHO

D

EQUI

TY M

ETHO

D

COST

MET

HOD

EQUI

TY M

ETHO

D Su

bsidia

ry com

panies

%

2006

2005

2006

2005

200

6 200

5

2006

2005

2006

200

5 PX

Syste

m Co

mpany

Limi

ted

Renta

l of e

quipm

ent

and co

ntract

or

on

the tra

de exh

ibition

sta

ndard

booths

89.

95 1,0

00,000

1,0

00,000

3,7

50,714

3,7

50,714

-

-

3,750,

714

3,750,

714

21,649

,523

19,020

,132

Artco

m Gr

aphic C

ompan

y Lim

itedGr

aphic b

anner

and

ink

jet pri

nting

design

60.

00 1,0

00,000

1,0

00,000

1,0

22,400

1,0

22,400

-

-

1,022,

400

1,022,

400

8,426,

204

8,227,

460

Multi

Desig

ns Co

mpany

Limi

ted

Trade

exhibi

tion

and

inter

ior de

sign

59.90

400,00

0 400

,000

360,00

0

360,00

0

-

- 360

,000

360,00

0 2,9

54,271

2,0

23,486

As

sociat

ed com

pany -

Direc

t

Inkjet

Image

s (Thai

land)

De

sign a

nd pri

nting

of

Co

mpany

Limi

tedadv

ertisin

g bann

er 22.

22 6,0

00,000

6,0

00,000

3,9

22,033

3,9

22,033

4,8

84,319

4,0

47,447

3,9

22,033

3,9

22,033

4,8

84,319

4,0

47,447

Be

c - Te

ro Ex

hibitio

n Co.,

Ltd.*

Stagin

g, orga

nizing

, prod

ucing,

ma

naging

anand

explo

iting e

xhibit

ion

39.00

5,000,

000-

1,949,

980-

366,9

06 -

1,949,

980-

366,90

6-

Desig

nlab M

ISC Co

., Ltd.

* De

sign

20.00

2,000,

000

- 399

,900

-

487,

543

- 399

,900

- 487

,543

- Ibr

ix Co

mpany

Limi

ted *

Trade

exhibi

tion

and in

terior

desig

n 40.

00 5,0

00,000

-

1,999,

800

-

2

,212,6

55

- 1,9

99,800

-

2,212,

655

- As

sociat

ed com

pany -

Indir

ect

U-Re

nt Co

mpany

Limi

ted

Proper

ty ren

tal 20.

24 2,0

00,000

2,0

00,000

505

,125

505

,125

2,3

16,743

1,5

60,155

-

- -

- Joi

nt Ve

nture

Joint

Ventu

re

Interi

ors an

d cons

tructio

n

for

muse

um

40.00

400,00

0 -

160,00

0

-

-

- 160

,000

- 59,

082

- To

tal inv

estme

nts us

ing th

e equi

ty me

thod

14,

069,95

2

9,560,

272

10,268

,166

5,6

07,602

13,564

,827

9,055,

147

41,040

,503

33,318

,525

* Duri

ng the

year

ended

Octob

er 31,

2006,

the C

ompan

y acqu

ired i

nvestm

ents in

such

associ

ated c

ompan

ies of

Baht

4.35 m

illion

at par

value

of th

e shar

es.…/

11

annual report 2006


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11. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consist of the following: Baht

Balance as at Additions Disposals Transfer in Balance as at October 31, (out) October 31,

2005 2006CONSOLIDATED Cost and appraisal value:

Land - at cost 15,782,621 - - - 15,782,621 Land appraisal increase 27,917,379 - - - 27,917,379 Land improvement 445,025 - - - 445,025 Buildings and buildings improvement 23,971,705 2,806,676 (4,317,516) 21,333,892 43,794,757 Vehicles 12,695,713 4,357,000 (3,091,000) - 13,961,713 Office equipment 4,908,149 1,419,155 (809,386) 800,900 6,318,818 Computers 8,812,026 2,662,177 (437,881) - 11,036,322 Tool & machinery 11,622,327 718,400 (263,557) - 12,077,170 Office furniture 5,159,417 1,709,136 (3,827,182) 4,900,336 7,941,707 Operating equipment 16,987,831 8,993,419 - - 25,981,250

Total cost and appraisal value 128,302,193 22,665,963 (12,746,522) 27,035,128 165,256,762

Accumulated depreciation: Land improvement (445,024) - - - (445,024) Buildings and buildings improvement (14,480,019) (2,374,066) 2,626,271 - (14,227,814) Vehicles (5,559,940) (2,571,530) 3,079,637 - (5,051,833) Office equipment (2,358,376) (916,278) 555,534 - (2,719,120) Computers (5,122,768) (2,005,953) 395,512 - (6,733,209) Tool & machinery (9,611,284) (1,549,110) 258,015 - (10,902,379) Office furniture (3,202,934) (1,217,098) 3,025,929 - (1,394,103) Operating equipment (11,070,123) (3,694,758) - - (14,764,881)

Total accumulated depreciation (51,850,468) (14,328,793) 9,940,898 - (56,238,363) Assets under construction 6,056,733 21,129,455 - (27,035,128) 151,060 Property, plant and equipment-net 82,508,458 29,466,625 (2,805,624) - 109,169,459 Depreciation for the years:

2006 14,328,793 2005 11,635,743

Cost of fully depreciated fixed assets still in use: 2006 Gross carrying amount 21,248,016 2005 Gross carrying amount 11,590,367

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PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED)Baht

Balance as at Additions Disposals Transfer in Balance as at October 31, (out) October 31,

2005 2006THE COMPANY ONLY Cost and appraisal value:

Land - at cost 15,782,621 - - - 15,782,621 Land appraisal increase 27,917,379 - - - 27,917,379 Land improvement 445,025 - - - 445,025 Buildings and buildings improvement 23,971,705 791,980 (4,317,516) 21,648,217 42,094,386 Vehicles 12,496,713 4,357,000 (3,091,000) - 13,762,713 Office equipment 2,817,741 1,102,613 (755,609) 800,900 3,965,645 Computers 5,223,848 1,974,542 (215,811) - 6,982,579 Tool & machinery 474,574 - (13,557) - 461,017 Office furniture 4,718,836 579,655 (3,523,644) 4,900,336 6,675,183 Operating equipment 1,208,783 - - - 1,208,783

Total cost and appraisal value 95,057,225 8,805,790 (11,917,137) 27,349,453 119,295,331

Accumulated depreciation: Land improvement (445,024) - - - (445,024)Buildings and buildings improvement (14,480,019) (2,198,129) 2,626,271 - (14,051,877)Vehicles (5,360,941) (2,571,530) 3,079,636 - (4,852,835)Office equipment (1,277,813) (574,501) 531,376 - (1,320,938)Computers (2,818,473) (1,323,541) 182,264 - (3,959,750)Tool & machinery (398,046) (31,591) 8,016 - (421,621)Office furniture (2,946,702) (1,036,254) 2,787,947 - (1,195,009)Operating equipment (974,813) (233,965) - - (1,208,778)

Total accumulated depreciation (28,701,831) (7,969,511) 9,215,510 - (27,455,832)Assets under construction 6,371,057 21,129,456 - (27,349,453) 151,060 Property, plant and equipment-net 72,726,451 21,965,735 (2,701,627) - 91,990,559 Depreciation for the years:

2006 7,969,511 2005 6,219,725

Cost of fully depreciated fixed assets still in use: 2006 Gross carrying amount 4,126,476 2005 Gross carrying amount 2,670,608

During the year ended October 31, 1994, land was professionally appraised and the revaluation account is shown in land revaluation surplus under shareholders’ equity. The land was re-appraised by the independent appraiser on July 31, 2000 and the decline in value of Baht 5.3 million was deducted from such revaluation surplus. On August 9, 2005, such land was re-appraised by the independent appraiser and surplus in value of Baht 18.7 million was included in such revaluation surplus. As at October 31, 2006 and 2005, The Company has mortgaged land and buildings with a bank as security for bank overdraft, short-term loan, and letters of guarantee issued by the bank (see Notes 13 and 27).

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12. INTANGIBLE ASSETS, NET

Intangible assets, net as at October 31, are as follows: Baht


Cost of intangible assets 2,782,901 1,401,627 2,497,008 1,287,125Less Accumulated amortization of Intangible assets (411,623) (244,935) (365,150) (225,807)

2,371,278 1,156,692 2,131,858 1,061,318Intangible assets under installation 268,682 431,205 268,682 431,205Intangible assets, net 2,639,960 1,587,897 2,400,540 1,492,523

Amortization for the years 166,688 140,320 139,343 129,065

13. BANK OVERDRAFTS AND SHORT-TERM LOAN FROM FINANCIAL INSTITUTIONS

The Company and a subsidiary have unused credit facilities for bank overdraft as at October 31, as follows: Million Baht


2006 18.50 18.00 2005 18.50 18.00

The collateral of bank overdrafts and short-term loan from financial institutions are the pledge of fixed deposits at banks and the mortgage of land and building with interest rate at minimum overdraft rate (MOR) plus 0.5% and 0.25% per annum (see Notes 9 and 11). As at October 31, 2006 and 2005, the Company and a subsidiary have no bank overdrafts and no short-term loan from financial institutions.

14. TRADE ACCOUNTS PAYABLE

Trade accounts payable as at October 31, are as follows: Baht


Trade accounts payable - Related parties (Note 21) 3,160,915 1,506,998 6,755,402 3,900,301- Others 71,353,450 65,246,914 60,529,466 52,255,626

Accrued cost - Related parties (Note 21) 212,644 219,772 343,686 457,821- Others 33,018,527 15,569,863 31,961,179 11,989,870 107,745,536 82,543,547 99,589,733 68,603,618

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15. THE GROSS AMOUNT DUE TO CUSTOMERS FOR CONTRACT WORK

The gross amount due to customers for contract work as at October 31, are as follows: Baht


Billing and advances from customers 84,772,491 17,709,997 80,783,895 13,526,042 Less Contract costs incurred and profit/losses

recognized to date (79,289,045) (8,565,536) (78,962,677) (8,071,242) 5,483,446 9,144,461 1,821,218 5,454,800

16. OBLIGATIONS UNDER HIRE-PURCHASE AGREEMENTS

Obligations under hire-purchase agreements as at October 31, are as follows: Baht


Obligations under hire-purchase agreements 8,797,521 6,770,901 8,781,408 6,770,901 Less Deferred interest (1,293,508) (782,388) (1,293,219) (782,388) 7,504,013 5,988,513 7,488,189 5,988,513 Less Obligations under hire-purchase

agreements due within one year (2,214,478) (1,830,527) (2,198,654) (1,830,527) 5,289,535 4,157,986 5,289,535 4,157,986

17. SHARE CAPITAL

The Company’s registered share capital comprised ordinary shares and preferred shares. The preferred shares have the right to receive dividends equal to ordinary shares. The dividend will be calculated from profit earned after the issuance of preferred shares. However, any profit on the appraisal of land, buildings and other assets which existed before the issuance of the preferred shares, will be allocated solely to the ordinary shares. The preferred shareholders have the right to vote in the shareholder meeting, a ten thousand preferred shares are equivalent to one voting right of a ordinary share. The preferred shares have the right to receive the proportion of their return on investments upon liquidation equal to ordinary shares. On February 15, 2005, the annual ordinary shareholders’ meeting resolved to increase in authorized share capital of Baht 50 million from 65 million to 115 million by issuing such 50 million new ordinary shares of Baht 1 each for the stock dividend as mentioned in Note 19. The Company registered the share capital increase with the Ministry of Commerce on March 2, 2005.

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annual report 2006


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- 15 -

As at October 31, the premium on ordinary share capital, net are as follows: Baht

2006 2005 Premium on ordinary share capital 105,000,000 105,000,000Less Underwriting fee (3,750,000) (3,750,000)

101,250,000 101,250,000The weighted average number of ordinary shares for the year ended October 31, are calculated as follows:

Shares2006 2005

Number of shares, beginning balance 114,669,980 64,670,000Plus The effect on the issuance of stock dividend (Note 19) - 49,999,980Weighted average number of ordinary shares 114,669,980 114,669,980

18. LEGAL RESERVE

Under the Public Companies Limited Act, the Company is required to set aside as a legal reserve at least 5% of its net income after deficit brought forward (if any) until the reserve is not less than 10% of the registered capital. Such reserve fund is not available for distribution as dividend until the Company is finally wound up.

19. DIVIDENDS PAID

19.1 The Company On June 2, 2006, the Company’s board of directors meeting resolved to take action for interim dividend payment of Baht 0.17 per share to the shareholders whose names were listed in the Company’s registrar book as at June 19, 2006. Such dividends of Baht 19.55 million were paid on June 30, 2006. On February 15, 2006, the annual ordinary shareholders’ meeting resolved to take action for the appropriation of legal reserve of Baht 2.08 million, appropriation of dividend of Baht 19.55 million from the net profit of 2005 to the shareholders whose names were listed in the Company’s registrar book as at January 30, 2006 for dividend payment of Baht 0.17 per share. The Company paid such dividend on February 28, 2006. On June 1, 2005, the Company’s board of directors meeting resolved to take action for interim dividend payment of Baht 0.14 per share to the shareholders whose names were listed in the Company’s registrar book as at June 17, 2005. Such dividends of Baht 16.10 million were paid on June 30, 2005. On February 15, 2005, the annual ordinary shareholders’ meeting resolved to take action for the appropriation of legal reserve of Baht 2.06 million, appropriation of dividend of Baht 55.56 million from the profit by issuing the ordinary shares to the shareholders whose names were listed in the Company’s registrar book as at January 26, 2005 in the proportion of 0.77 new share to 1 existing share, totaling 50 million shares of Baht 1 par value (the market price as at January 26, 2005 was Baht 2.68 per share) and cash payment of Baht 0.09 each. The Company paid such dividend on February 28, 2005.

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annual report 2006


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19.2 The subsidiaries On May 23, 2006, the extraordinary shareholders’ meeting of Artcom Graphic Company Limited passed a resolution for an interim dividend payment of Baht 300 per share for 10,000 ordinary shares totaling Baht 3 million to the shareholders whose names were listed in the Company’s registrar book as at May 23, 2006. Such dividend was paid on May 26, 2006.On February 3, 2006, the board of directors’ meeting of PX System Company Limited passed a resolution to take action for annual dividend payment for 2005 of Baht 300 per share to the shareholders whose names were listed in the Company’s registrar book as at February 7, 2006 totaling Baht 3 million. On February 27, 2006, the annual ordinary shareholders’ meeting of PX System Company Limited resolved to take action for dividend payment according to a resolution of board of directors’ meeting. Such dividend was paid in February and July 2006.On June 16, 2005, the extraordinary shareholders’ meeting of Artcom Graphic Company Limited passed a resolution for an interim dividend payment of Baht 200 per share for 10,000 ordinary shares totaling Baht 2 million to shareholders as an appropriation of net profit for the operation result from November 1, 2004 to April 30, 2005, such dividend has been paid to shareholders on June 17, 2005. On September 12, 2005, the board of directors’ meeting of PX System Company Limited passed a resolution for a dividend payment of Baht 200 per share for 10,000 ordinary shares totaling Baht 2 million, as an appropriation of the net profits for 2005. Such dividend was paid on September 2005.

20. BASIC EARNINGS PER SHARE

The calculation of the basis earnings per share for the years ended October 31, is based on the following data:

2006 2005 Baht Baht

Net income 71,253,650 41,702,045Less Dividends of preferred shares (112,200) (328,251)Net income for the calculation purpose of basic

earnings per share 71,141,450 41,373,794

Weighted average number of ordinary shares (Note 17) Shares 114,669,980 114,669,980Basic earnings per share Baht 0.62 0.36

…/17

annual report 2006


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21. RELATED PARTIES TRANSACTIONS

The financial statements included certain transactions with related parties. These parties are related through common shareholdings and/or directorship. The financial statements reflect the effects of these transactions on the basis determined by the companies concerned. Significant balances with the related parties as at October 31, are as follows:

BahtAccount / Companies Relationship Consolidated The Company Only 2006 2005 2006 2005

Trade accounts receivable (Note 6) Pico Art International Pte Ltd Major Shareholder 110,000 98,375 110,000 - Pico Art Exhibition Same Ultimate Holding Company - 81,382 - 81,382 Pico International (China) Limited Same Ultimate Holding Company 1,093,033 - 1,093,033 - Pico International Taiwan Ltd. Same Ultimate Holding Company 260,000 - 260,000 - Pico International Ltd. Same Ultimate Holding Company - 2,505,010 - 2,505,010 Pico (China) Ltd. Same Ultimate Holding Company - 1,531,000 - 1,531,000 Meeting Planners International (HK) Ltd. Same Ultimate Holding Company - 317,576 - 317,576 Pico International (M) Sdn. Bhd. Same Ultimate Holding Company 119,840 202,850 - 202,850 Pico Austraila Pty Ltd.. Same Ultimate Holding Company 147,000 - 147,000 - Pico International (HK) Ltd. Same Ultimate Holding Company 570,000 1,640,047 570,000 1,640,047 U-Rent Company Limited Associated Company 26,584 21,732 - - 2,326,457 6,397,972 2,180,033 6,277,865

Amounts due from related parties Pico Art International Pte Ltd Major Shareholder 257,335 - 257,335 - Pico Global Services Limited Same Ultimate Holding Company - 2,564 - 2,564 PX System Company Limited Subsidiary - - 64,269 276,664 Artcom Graphic Company Limited Subsidiary - - 143,479 85,356 Multi Designs Company Limited Subsidiary - - 154,185 318,939 U-Rent Company Limited Associated Company 13,600 17,848 - 17,848

270,935 20,412 619,268 701,371

Short-term loan to a related party Joint Venture Joint Venture 5,054,915 - 8,424,859 -

The gross amount due from customers for contract work Pico International Taiwan Ltd. Same Ultimate Holding Company 24,950 - 24,950 - Pico International (HK) Ltd. Same Ultimate Holding Company 98,598 - 98,598 - Multi Designs Company Limited Subsidiary - - 654,206 654,206U-Rent Company Limited Associated Company - 500 - -

123,548 500 777,754 654,206

Other current asset Joint Venture Joint Venture 4,064,722 - 6,774,536 -

…/18

annual report 2006


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BahtAccount / Companies Relationship Consolidated The Company Only 2006 2005 2006 2005

Investments using the equity method PX System Company Limited Subsidiary - - 21,649,522 19,020,132 Artcom Graphic Company Limited Subsidiary - - 8,426,204 8,227,460 Multi Designs Company Limited Subsidiary - - 2,954,271 2,023,486 U-Rent Company Limited Associated Company 2,316,743 1,560,155 - - Bec - Tero Exhibition Co., Ltd. Associated Company 366,906 - 366,906 - Designlab MISC Company Limited Associated Company 487,543 - 487,543 - Ibrix Company Limited Associated Company 2,212,655 - 2,212,655 - Inkjet Images (Thailand) Company Limited Associated Company 4,884,319 4,047,447 4,884,319 4,047,447 Joint Venture Joint Venture - - 59,083 -

10,268,166 5,607,602 41,040,503 33,318,525 Building under construction (Design fee)

Multi Designs Company Limited Subsidiary - - - 314,324

Buildings and buildings improvement, net Multi Designs Company Limited Subsidiary - - 299,377 -

Trade accounts payable (Note 14)

Pico International (China) Limited Same Ultimate Holding Company 722,782 - 722,782 - Pico International (M) Sdn. Bhd. Same Ultimate Holding Company 110,635 333,846 110,635 333,846 PX System Company Limited Subsidiary - - 32,100 357,327 Artcom Graphic Company Limited Subsidiary - - 2,682,578 1,599,072 Multi Designs Company Limited Subsidiary - - 1,512,445 1,156,349 U-Rent Company Limited Associated Company 1,197,440 1,117,762 570,447 429,241 Inkjet Images (Thailand) Company Limited Associated Company 102,858 55,390 97,215 24,466 Designlab MISC Company Limited Associated Company 1,027,200 - 1,027,200 -

3,160,915 1,506,998 6,755,402 3,900,301 Accrued cost (Note 14)

Pico International (China) Limited Same Ultimate Holding Company 38,744 - 38,744 - PX System Company Limited Subsidiary - - - 175,000 Artcom Graphic Company Limited Subsidiary - - 131,042 34,452 Multi Designs Company Limited Subsidiary - - - 75,000 U-Rent Company Limited Associated Company 173,900 219,772 173,900 173,369

212,644 219,772 343,686 457,821 Amounts due to related parties

Pico Art International Pte Ltd Major Shareholder 11,681,641 4,508,550 11,681,641 4,508,550 Pico Global Services Limited Same Ultimate Holding Company 38,440 27,398 38,440 27,398 Multi Designs Company Limited Subsidiary - - - 37,450

11,720,081 4,535,948 11,720,081 4,573,398 The gross amount due to customers for contract work

Pico Australia Pty Ltd. Same Ultimate Holding Company 136,796 - 136,796 - Deposits received from customers

Joint Venture Joint Venture 925,415 - 1,542,358 -

…/19

annual report 2006


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Significant business transactions with related parties for the years ended October 31, are mainly as follows:

BahtAccount / Companies Relationship Consolidated The Company Only

2006 2005 2006 2005 Revenues from the rendering of services

Pico Art International Pte Ltd Major Shareholder 4,945,942 3,133,989 3,309,720 3,042,049Pico Art Exhibition Inc. Same Ultimate Holding Company 17,664 73,666 17,664 73,666Pico International Taiwan Ltd Same Ultimate Holding Company 2,316,391 - 267,941 -Pico International Ltd. Same Ultimate Holding Company - 2,596,583 - 2,596,583Pico International (M) Sdn. Bhd. Same Ultimate Holding Company 181,673 269,579 69,673 189,579Pico International (China) Limited Same Ultimate Holding Company 1,091,519 2,053,528 1,091,519 2,053,528Pico (China) Ltd. Same Ultimate Holding Company - 1,430,841 - 1,430,841Pico Hong Kong Limited Same Ultimate Holding Company - 721,957 - -Pico Australia Pty Ltd. Same Ultimate Holding Company 137,383 - 137,383 -Pico Exhibition (UK) Ltd. Same Ultimate Holding Company 1,258,016 714,860 1,258,016 714,860Pico International (HK) Ltd. Same Ultimate Holding Company 1,947,620 2,411,732 1,849,422 2,343,807Pico Chicago Same Ultimate Holding Company 936,027 - - -Meeting Planners International (HK) Ltd. Same Ultimate Holding Company - 296,800 - 296,800Multi Designs Company Limited Subsidiary - - 132,000 5,306,023U-Rent Company Limited Associated Company 1,549,772 255,703 - -Joint Venture Joint Venture 37,988,052 - 63,313,421 - 52,370,059 13,959,238 71,446,759 18,047,736

Management fee (income)

PX System Company Limited Subsidiary - - 388,800 388,800 Artcom Graphic Company Limited Subsidiary - - 218,400 218,400 Multi Designs Company Limited Subsidiary - - 338,400 338,400 - - 945,600 945,600

Dividend income

PX System Company Limited Subsidiary - - 2,698,500 1,799,000 Artcom Graphic Company Limited Subsidiary - - 1,800,000 1,200,000 U-Rent Company Limited Associated Company - 337,500 - - - 337,500 4,498,500 2,999,000

Other income

Pico Art International Pte. Ltd. Major Shareholder - 110,642 - 110,642 Pico Global Services Limited Same Ultimate Holding Company 47,667 - 47,667 - PX System Company Limited Subsidiary - - 865,920 865,920 Artcom Graphic Company Limited Subsidiary - - 529,905 417,700 Multi Designs Company Limited Subsidiary - - 347,400 365,883 U-Rent Company Limited Associated Company 486,261 648,348 486,261 648,348 533,928 758,990 2,277,153 2,408,493

…/20

annual report 2006


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BahtAccount / Companies Relationship Consolidated The Company Only

2006 2005 2006 2005 Share of profits from investments using the equity method

PX System Company Limited Subsidiary - - 5,327,891 7,560,375 Artcom Graphic Company Limited Subsidiary - - 1,998,743 2,046,593 Multi Designs Company Limited Subsidiary - - 930,785 638,908 U-Rent Company Limited Associated Company 756,588 585,813 - - Inkjet Images (Thailand) Company Limited Associated Company 836,872 (142,938) 836,872 (142,938) Bec - Tero Exhibition Co., Ltd. Associated Company (1,583,073) - (1,583,073) - Designlab MISC Company Limited Associated Company 87,643 - 87,643 - Ibrix Company Limited Associated Company 212,855 - 212,855 - Joint Venture Joint Venture - - (100,917) -

310,885 442,875 7,710,799 10,102,938 Costs of the rendering of services

Pico Art International Pte Ltd Major Shareholder - 1,369,829 - 1,369,829 Pico International Taiwan Ltd Same Ultimate Holding Company - 966,148 - 966,148 Pico International (M) Sdn. Bhd. Same Ultimate Holding Company 327,859 333,846 327,859 333,846Pico International (China) Limited Same Ultimate Holding Company 780,000 - 780,000 - Pico Altanta Pte Ltd Same Ultimate Holding Company 819,652 - 819,652 - Meeting Planners international(HK) Ltd Same Ultimate Holding Company 21,219 - 21,219 - Pico International (HK) Ltd. Same Ultimate Holding Company - 246,285 - 246,285 Inter-Expo Exhibition Services Limited Same Ultimate Holding Company - 7,375 - 7,375 PX System Company Limited Subsidiary - - 6,678,334 2,475,840 Artcom Graphic Company Limited Subsidiary - - 6,213,245 5,559,453 Multi Designs Company Limited Subsidiary - - 8,585,200 4,417,700 U-Rent Company Limited Associated Company 10,252,654 5,585,951 8,749,245 4,091,877 Inkjet Images (Thailand) Company Limited Associated Company 964,690 1,182,900 959,416 1,153,998 Designlab MISC Company Limited Associated Company 7,552,000 - 7,552,000 -

20,718,074 9,692,334 40,686,170 20,622,351 Directors’ remuneration Director 4,400,000 4,000,000 4,400,000 4,000,000 Management fee (expense)

Pico Art International Pte Ltd Major Shareholder 22,745,446 15,493,753 22,745,446 15,493,753 Dividend

Pico Art International Pte Ltd Major Shareholder 12,707,500 21,496,667 12,707,500 21,496,667 Directors Director 10,724,519 19,854,359 10,724,519 19,851,559 23,432,019 41,351,026 23,432,019 41,348,226

Other expenses

Pico Art International Pte Ltd Major Shareholder 476,488 152,223 476,488 152,223 Pico International Ltd Same Ultimate Holding Company - 90,239 - 90,239 Pico Global Services Limited Same Ultimate Holding Company 189,517 245,434 189,517 245,434 PX System Company Limited Subsidiary - - 6,860 8,000 Artcom Graphic Company Limited Subsidiary - - 52,919 23,016 Multi Designs Company Limited Subsidiary - - 12,000 150,500 666,005 487,896 737,784 669,412

…/21

annual report 2006


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- 21 -

- Service income and cost of service are determined by the Company and its related companies based on the cost plus basis as the condition in the normal course of business.

- On November 1, 2001 the Company entered into the Management Consultant Agreements with three subsidiaries. The management fees charged to such subsidiaries are presented as follows:

Company Monthly fee (Baht) Px System Company Limited 32,400 Artcom Graphic Company Limited 18,200 Multi Designs Company Limited 28,200

Such agreements shall be in effect for a year from the date of the agreement and the two parties can renew the agreement for a successive term of 1 year. In 2004, the Company has renewed and extended such Management Consultant Agreements for 3 years. Subsequently, on November 1, 2006, the Company entered into the new Management Consultant Agreements with three subsidiaries. The management fees charged to such subsidiaries are the same amount. The new agreements shall be in effect for 3 years from the date of the agreement and the two parties can renew the agreement for a successive term of 3 years.

- On July 10, 1992, the Company entered into the Off-shore Services agreement and Intellectual Property License agreement with Pico Art International Pte Ltd, a major shareholder. Subsequently, amendments of both agreements have been made on November 3, 2003. In consideration thereof, the Company is committed to pay fees under the new amendments at the agreed rates of the gross revenues. Both agreements shall continue for an indefinite period until terminated by the mutual agreement of the parties.

22. SHARE OF PROFITS (LOSSES) FROM INVESTMENTS USING THE EQUITY METHOD

For the years ended October 31, 2006 and 2005, share of profits (losses) from investments using the equity method included in the financial statements are based on the net income (loss) of the financial statements of subsidiaries and associated companies for the years ended October 31, 2006 and 2005. Such share of profits (losses) can be stated as percentages of the Company’s net income as follows:

% of ownership % of net income 2006 2005 2006 2005

THE COMPANY ONLY Subsidiary companies

PX System Company Limited 89.95 89.95 6.52 16.91 Artcom Graphic Company Limited 60.00 60.00 2.81 4.91 Multi Designs Company Limited 59.90 59.90 1.31 1.53

Associated companies - Direct Inkjet Images (Thailand) Company Limited 22.22 22.22 1.17 (0.34) Bec - Tero Exhibition Company Limited 39.00 - (2.22) - Designlab MISC Company Limited 20.00 - 0.12 - Ibrix Company Limited 40.00 - 0.30 -

…/22

annual report 2006


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- 22 -

% of ownership % of net income 2006 2005 2006 2005

Joint Venture Joint Venture 40.00 40.00 (0.14) -

CONSOLIDATED Associated companies - Direct

Inkjet Images (Thailand) Company Limited 22.22 22.22 1.17 (0.34) Bec - Tero Exhibition Company Limited 39.00 - (2.22) - Designlab MISC Company Limited 20.00 - 0.12 - Ibrix Company Limited 40.00 - 0.30 -

Associated company - Indirect U-Rent Company Limited 20.24 20.24 0.96 1.22

For the years ended October 31, 2006 and 2005, share of profits (losses) from investments using the equity method of associated companies were computed from the financial statements for the years ended October 31, 2006 and 2005, which had not been audited.

23. PROVIDENT FUND

For the years ended October 31, 2006 and 2005, the Company contributions included in services and administrative expenses in the financial statements were as follows:

Baht CONSOLIDATED THE COMPANY ONLY

2006 1,102,708 961,165 2005 822,225 822,225

24. DISCLOSURE OF FINANCIAL INSTRUMENTS

The Company and subsidiaries present and disclose financial instruments as follows: 24.1 Accounting Policies

Details of significant accounting policies are disclosed in Note 3. 24.2 Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Company and subsidiaries. Concentrations of credit risk with respect to trade receivable are limited because the customers of the Company and subsidiaries are diversified.In the case of recognized financial assets in the balance sheet, the carrying amount of the assets recorded in the balance sheet represents the Company’s maximum exposure to credit risk.

…/23

annual report 2006


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24.3 Foreign Exchange Risk Foreign exchange risk arises from the change in foreign currency exchange rate to have an adverse effect on the Company and subsidiaries in the current reporting year and in future years. The Company and subsidiaries do not expect to incur material effects of foreign currency exchange rate on its financial position and results of the operations because the majority of business activities are denominated in Thai Baht.

24.4 Interest Rate Risk Interest rate risk arises from the potential for a change in interest rate to have an adverse effect on the Company and subsidiaries in the current reporting period and in future years. The Company and subsidiaries do not expect to incur material incremental effect on its interest expense since the Company and its subsidiaries have no outstanding loan balance at the balance sheet date.

24.5 Estimated Fair Value of Financial Instruments Thai Accounting Standard No. 48, “Financial Instruments: Disclosure and Presentation” requires certain fair value disclosures. Considerable judgement is necessarily required in estimation of fair value. Accordingly, the estimated fair value presented herein is not necessarily indicative of the amount that could be realized in a current marker exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value. The following methods and assumptions were used by the Company and subsidiaries in estimating fair values of financial instruments.Cash and cash equivalents, current investments, accounts receivable, amounts due from related companies, short-term loan to a related party, other current assets, trade accounts payable, amounts due to related companies and other current liabilities: the carrying values approximate their fair values due to the relatively short period to maturity. The current net assets value of non-listed securities based on the latest available financial statements of those companies approximate fair values. As at October 31, 2006 and 2005, the carrying values of the financial assets and liabilities which is different from the fair values are as follows:

BAHTCONSOLIDATED THE COMPANY ONLY

Carrying Value Fair Value Carrying Value Fair Value 2006 2005 2006 2005 2006 2005 2006 2005

Financial liabilities Obligation under hire- purchase agreements 7,504,013 5,988,513 8,103,659 6,099,291 7,488,189 5,988,513 8,087,835 6,099,291

Fair value is estimated using the available each year’s market rates which are approximately 4.00 - 7.00% per annum for the year ended October 31, 2006 and approximately 3.10 - 5.75% per annum for the year ended October 31, 2005.

…/24

annual report 2006


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- 24 -

25. B

USIN

ESS S

EGME

NT IN

FORM

ATIO

N Bu

siness

segm

ent in

forma

tion f

or the

Comp

any an

d subs

idiari

es are

prese

nted a

s follo

ws:

CONS

OLID

ATED

Baht

Fo

r the y

ear en

ded Oc

tober

31, 20

06 Fo

r the y

ear en

ded Oc

tober

31, 20

05

Reven

ue Ty

pe Ex

hibitio

n Ev

entMu

seums

Inkjet

&Ot

hers

Total

Exhib

ition

Event

Museu

msInk

jet &

Ot

hers

Total

Marke

ting

Exhib

itgra

phic

Ma

rketin

gEx

hibit

graph

ic

Re

venues

from

the re

nderin

g

of ser

vices

349,84

0,165

286

,090,8

28

236,06

2,472

43,

844,73

0 121

,765,6

67

1,037,

603,86

2 249

,554,1

11

254,22

2,042

102

,879,2

48

27,891

,182

81,952

,003

716

,498,5

86 Re

venues

from

the re

nderin

g

of

servic

es-Joi

n Vent

ure

- -

71,191

,028

-

71,191

,028

- -

- -

- -

Other

incom

e -

- -

- 3,2

69,311

3,2

69,311

-

- -

- 3,2

78,092

3,2

78,092

Sh

are of

profi

ts from

inves

tment

s

using

the eq

uity m

ethod

-

-

-

-

310,88

5 310

,885

-

-

-

- 442

,875

442,87

5 To

tal rev

enues

349

,840,1

65

286,09

0,828

307

,253,5

00

43,844

,730

125,34

5,863

1,112,

375,08

6 249

,554,1

11

254,22

2,042

102

,879,2

48

27,891

,182

85,672

,970

720,21

9,553

Inc

ome b

efore

incom

e tax

94,037

,150

57,

238,09

2 Le

ss Inc

ome ta

x

(20

,232,6

13)

(12,89

9,224)

73,

804,53

7

44,338

,868

Less

Minor

ity in

terest

in

con

solida

ted ne

t incom

e

(2,550

,887)

(2,636

,823)

Net in

come

71,253

,650

41,

702,04

5

Int

er-seg

ment

fixed

asset

s 26,

611,15

0

- -

11,989

,392

- 38,

600,54

2 17,

459,58

3

- -

11,599

,193

- 29,

058,77

6 Ge

neral f

ixed a

ssets

126

,807,2

80

105,30

0,150

Total

fixed

assets

165

,407,8

22

134,35

8,926

Less

Accum

ulated

depre

ciatio

n

(56

,238,3

63)

(51,85

0,468)

Fixed

assets

- net

109,16

9,459

82,

508,45

8 Ge

neral a

ssets

418,16

3,825

346

,728,4

35 To

tal As

sets

527,33

3,284

429

,236,8

93 .../25

annual report 2006


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- 25 -

26.RI

SK M

ANAG

EMEN

T PO

LICIES

FOR

ASS

ETS A

ND L

IABIL

ITIES

IN F

OREIG

N CU

RREN

CY

The C

ompan

y and

subsid

iaries

do no

t have

a pol

icy to

cover

forei

gn exc

hange

exposu

re of

assets

and l

iabilit

ies in

forei

gn cur

rencie

s beca

use th

e Com

pany a

nd sub

sidiar

ies do

not ex

pect to

incur

mate

rial ef

fects o

f forei

gn cur

rency

exchan

ge rat

e on i

ts fina

ncial p

ositio

n and

result

s of th

e oper

ations

becaus

e the m

ajority

of

busine

ss act

ivities

are d

enomi

nated

in Th

ai Baht

. All f

oreign

curre

ncy tra

nsactio

ns hav

e to be

appro

ved by

mana

gement

. As

sets a

nd liab

ilities

of th

e Com

pany a

nd sub

sidiar

ies in

forei

gn cur

rencie

s are

as fol

lows:

Te

rm of

receip

t/ CO

NSOL

IDAT

ED A

ND T

HE C

OMPA

NY O

NLY

payme

nt(da

ys)US

D S$

HK$

RM

AUD

EURO

NT

$ BA

HT

As

at Oc

tober

31, 20

06

Cash

and ca

sh equ

ivalen

t -

483

274

290

3,9

73 834

1,3

59 5,3

28 175

,946

Trade

accoun

ts rece

ivable

30

- 90

2,310

2,041

- -

- -

- 132

,255

2,793

2,315

290

3,973

834

1,359

5,328

308,20

1 Tra

de acc

ounts p

ayable

30

- 90

22,599

-

833

,417

Other

payabl

es

30 - 9

0

22,832

8,0

86 -

- -

- 579

,808

22,599

22,

832

8,086

- -

- -

1,413,

225

As at

Octob

er 31,

2005

Ca

sh and

cash

equiva

lent

-

531

213

290

4,222

834

2,214

3,377

223,48

7 Tra

de acc

ounts r

eceiva

ble

30 - 9

0 64,

608

38,607

-

- -

- -

3,559,

976

Other r

eceiva

ble

30 - 9

0

- -

- -

- 153

-

7,447

65,139

38,

820

290

4,222

834

2,367

3,377

3,790,

910

Trade

accoun

ts paya

ble

30 - 9

0

- 915

-

30,258

-

- -

356,05

5 Oth

er pay

ables

30

- 90

-

- 5,1

84 -

- -

- 27,

398

-

915

5,184

30,258

-

- -

383,45

3

…/26

annual report 2006


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- 26 -

27. GUARANTEES

As at October 31, 2006 and 2005, the Company and a subsidiary have bank letters of guarantee as required by the contracts with customers amounting to approximately Baht 66.78 million and Baht 46.60 million, respectively.As at October 31, 2006 and 2005, the Company and subsidiaries have collateral against such letters of guarantee as referred to Notes 9 and 11.

28. CORPORATE TAX

According to the Royal Decree No. 387 B.E. 2544 issued under the Revenue Code regarding the corporate income tax rate deduction dated August 28, 2001, the corporate income tax for the listed on the Market for Alternative Investment has been reduced from 30% to 20%. This will remain in effect for five consecutive accounting periods beginning in the period the Company was registered to be the listed company of the Market for Alternative Investment under the regulations of the Stock Exchange of Thailand.

29. SIGNIFICANT AGREEMENT

29.1 On August 25, 2004, the Company entered into a Joint Venture Agreement with Ekca Thai Co., Ltd. and Bewcon Co., Ltd. The objective of which is to construct building and design exhibition. The investment portion of Exca Thai Co., Ltd, Pico (Thailand) Public Company Limited and Bewcon Co., Ltd is 4 : 4 : 2. The operating income or loss from the Joint Venture will be transferred to each party at such portion.

29.2 As at October 31, 2006 and 2005, the Joint Venture another has a letter of guarantee issued by a bank of Baht 12.3 million for performance guarantee and letter of guarantee of Baht 24.6 million for cash advance received from customer. Such letters are secured by a transfer of the right to receive money on contract work to the bank and pledge of fixed deposits of Baht 12.3 million with a bank.

29.3 On March 3, 2006, the Company entered into a Consortium Agreement with Story! Inc (NZ) Ltd. The objective of the Consortium is to construct building and design exhibition. The responsible portions of the Company and Story! Inc (NZ) Ltd. are 90% and 10% of contract work.

30. COMMITMENTS AND CONTINGENT LIABILITIES

As at October 31, 2006 and 2005, the Company had capital commitments to pay construction in progress and purchase of computer software in the total amount of approximately Baht 0.11 million and Baht 1.33 million, respectively.

31. RECLASSIFICATION

A reclassification has been made to the financial statements for the year ended October 31, 2005 to conform to the presentation of the financial statements for the year ended October 31, 2006 which intangible assets as at October 31, 2005 of Baht 1.59 million and Baht 1.49 million are separately presented in other assets which were previously included in other assets in consolidated and the Company’s financial statements, respectively.

32. APPROVAL FOR ISSUING OF FINANCIAL STATEMENTS

These financial statements have been approved for issuing by the Company’s Boards of Directors on December 8, 2006.

pico: annual report 2006

Documents

net profit margin

boards of directors

share baht

operating profit margin

gross profit margin

audit committee

taxes of baht

company financial statements