Introduction The management of Berli Jucker is fully aware of the Year 2000 (Y2K) problem and the potential impact on its business operations. Berli Jucker has a plan to ensure that all of our computer systems are fully Y2K compliant by the middle of 1998. The Berli Jucker Strategic IT Plan, developed in late 1996 identified the need to address the Y2K challenge as a matter of urgency. The Y2K Compliance Project has a budget allocated and is approved and supported by the executive management team. In summary, the company approach to solving the Y2K problem is through replacement of existing systems. Berli Jucker is fortunate that a decision was made replace its legacy applications in 1993. The core business applications have already been redeveloped and are already Y2K compliant. As part of this process, a considerable investment has been made in new hardware and software tools, the bulk of which is already compliant. Berli Jucker Y2000 Century Compliance Criteria The Berli Jucker requirement for Y2K Compliance conforms to the British Standards Institute definition DISC PD2000-1. Structure of the Y2K Compliance Project The approach Berli Jucker Public Company Ltd. is taking in its Y2K Compliance Project is as follows: The criterion for Y2K compliance has been established. This criteria has is being applied by Berli Jucker as a standard in its normal business operations and the purchase of any new computer hardware or software. An inventory of all computer and communications equipment, and software has been completed. The Y2K compliance testing of all items in the inventory will be completed by 30 September 1998. Non compliant PC software and hardware is being upgraded or replaced. Berli Jucker is surveying our major trading partners and utility suppliers to determine their Y2K position. Testing of embedded systems such as the hardware and software controlling items such as facsimile equipment, PABX, air-conditioning, UPS control systems, elevator, and access control equipment has been completed by the end of April 1998. A contingency plan is being formulated to cover emergencies in case of unforeseen problems internally or with our trading partners. This will be completed by the end of August 1998. The Information Systems Division (ISD) reports on the progress of the Y2K Compliance Project to the Executive Management Committee monthly. Project Timetable - Berli Jucker Compliance testing of applications software Statis MIS - Order Processing, Inventory Control, Accounts Compliant Receivable, and Cost of Goods Testing completed 31/4/98 Payroll / HRM compliance testing Compliant Testing completed 31/3/98 Oracle OLAP package Already compliant Operating Systems and database products Already compliant Examination & correction of spreadsheets Complete by end of December 1998 ORACLE Financial Applications Already compliant Compliance testing for embedded devices Complete by end of April 1998 Check compliance programs of our trading partners On-going Upgrade of PC's and PC software Complete by end of September 1998 Develop contingency plan to cover unforeseen 1st draft by the end of problems internally or with our trading partners. August 1998 Subsidiary Companies Cellox Paper Company Limited Cellox have confirmed that their computer hardware and software has been tested and is compliant. The majority of the manufacturing equipment contains no Programmable Logic Controllers (PLC) devices. Cellox are waiting for confirmation on the Y2K status of one machine from the supplier. Thai Glass The Thai Glass plans to achieve Y2K compliance are well advanced. Examination and correction of all manufacturing equipment is due for completion in early September 1998. The upgrading of computer hardware and software will be complete by the end of March 1999. Rubia Industries An inventory of all manufacturing equipment has been produced. An analysis of these embedded systems will completed by the end of September 1998. Upgrades to the MRPII software package and associated computer hardware are in progress. This is planned to be completed by the end of November 1998. Thai-Scandic Steel Company Limited Y2K Compliance testing of all communications and computer systems is complete. Testing and upgrading of manufacturing equipment containing PLC devices is continuing with the equipment suppliers. Thai Fluorspar Compliance testing for all PC based systems is complete. Polipharm Company Limited Polipharm have no manufacturing equipment that contains PLC devices. Existing non-compliant Personal Computers and associated software are being replaced. Siam Snack Company Limited Compliance testing for all PC based systems has been completed. An inventory of all manufacturing equipment has been produced. Twelve of the twenty-one pieces of equipment contain no PLC devices. Siam Snack is working with the suppliers of the remaining equipment to ensure compliance. Thai Klinipro Company Limited. An inventory of all equipment has been completed and the business criticality assessed. The majority of the manufacturing equipment is simple and does not contain PLC devices. All of the specialized equipment is compliant. Thai Klinipro are upgrading their accounting and payroll packages to ensure compliance. Project Budget & Expenditure The total budget to achieve Y2K Compliance for Berli Jucker is Baht13, 500,000. For the period January - July 1998 Baht5, 500,000 has been spent to upgrade and replace essential computer hardware and software. It is anticipated that a further Baht6, 000,000 will be spent during the period August - December 1998 to complete the project. Risks/Issues The only outstanding work that is required by Berli Jucker to complete its preparations for Y2K is the purchase and installation of new personal computers and the completion of contingency plans. The only area of concern for Berli Jucker is the level of compliance of our major service providers in Thailand. Although the following organizations are all active in preparing for Y2K there are concerns that they will have completed the required work on time. These organizations are: Ministry of Transport The major Thai trading banks Metropolitan Water Authority Metropolitan Electricity Authority Communications Authority Telephone Organization of Thailand None of the above have responded to the Berli Jucker questionnaire requesting information regarding their plans for compliance.