employees’ retirement benefits according to New Labor Act and recorded loss on impairment of assets in the fourth quarter of 2018. In terms of proportion to total revenues, operating and administrative

% THB mm % Raw material and packaging 179.04 80.77 71.50 60.69 (107.54) (60.06) Labor costs 21.98 9.92 11.33 9.62 (10.65) (48.45) Depreciation costs 8.64 3.90 10.06 8.54 1.42 16.44 Freight expenses 0.68

the inflation rate in Thailand. Cost Estimates : The costs comprise the costs of raw materials, costs of labor, selling and administrative expenses, based on historical records of Kitchen Plus

compared to the same period of 2018. This was mainly due to an increase in employee benefit provision of Baht 46 million, based on the Labor Protection Act (Issue 7) B.E. 2562 with an increase in rate of

/(Decrease) For Nine Months Period Ended 30 September 2018 2019 THB mm % THB mm % THB mm % Raw material and packaging 256.39 80.28 109.18 60.53 (147.21) (57.42) Labor costs 30.97 9.70 15.90 8.81 (15.07) (48.66

purchasing power of mid-to-low labor segment. Furthermore, the drought season also decreases incomes of agriculture workforces, and as a result, FSMART (or the “Company”)'s total usage amount decreased

employee benefit according to new labor law, consultant fee for new Credit Agreement of the Company and others fee and reorganization during December 2019 resulting in reduced Salary for the current year. 5

measures to maintain profitability; namely controlling operational costs such as marketing expenses, utility expenses, over-time compensation, associate’s commission and outsourced labor cost. The

33.96 62.84 61.80 73.38 27.84 81.98 Labor costs 5.69 10.53 6.41 7.61 0.72 12.65 Depreciation costs 4.91 9.08 5.58 6.63 0.67 13.65 Freight expenses 0.22 0.41 0.60 0.71 0.38 172.73 Others/1 9.26 17.14 9.82

institutions for project development and business operation increases 3,360.56 Million THB or 64% i.e. from 5,250.47 million THB to 8,611.03 million THB. 2. The new Labor Protection Act is enforced on 5th April