Ann: Appendix 4E, Annual Report and Financial Statements, page-8

Ok, it's very simple really. I won't go into any forensic examination of accounts, and in particular the segment data (which I here find a little difficult to draw firm conclusion on). What I can say, is that for the consolidated entity, the working capital of the business (excluding cash) tends to amount, roughly, to the PPE written value.

So even if you take the extraordinarily optimistic view that the export operations require zero PPE, you still have the not small matter of inventories & receivables. But in truth, even if we were to assume zero PPE at the export location itself, the reality is that any investment by our company that is designed to alleviate capacity constraints (whether in Thailand or anywhere else) that are at least in part a result of increased exports (to Europe or anywhere else), is in effect a capital investment directed at revenues that deliver a lower margin (hence reduced ROE).

Don't get me wrong. Any investment in increasing sales, if it eventually delivers an attractive return, will be an investment well worth making. I am simply trying to understand the changes we are seeing in ROE.