14 May 2009 The President The Stock Exchange of Thailand Dear Sir/Madam, Re: Management Discussion and Analysis on the first quarter 2009 financial performance Financial Performance Summary - 1Q09 Berli Jucker Public Company Limited ("BJC") is pleased to announce 1Q09 earnings results. In 1Q09, sales were THB 5,576 million, representing an increase of 2.9% YoY but a slight decrease of 1.8% QoQ. Although 1Q09 operating profit and net profit declined from the same period last year, we achieved significant improvement in profitability compared to 4Q08. Net profit after tax to equity holders for 1Q09 was THB 204 million, an increase of 70.0% QoQ. Net profit margin increased from 2.1% in 4Q08 to 3.7% in 1Q09. Effective on January 1, 2009, BJC realigned its organization into five business groups,Industrial Supply Chain Group, Consumer Supply Chain Group, Healthcare Supply Chain Group,Technical Supply Chain Group and International Business Group. Sales breakdown is as follows. THB MM 1Q09 1Q08 %YoY 4Q08 %QoQ Industrial Supply Chain 2,640 2,462 7.2 2,967 (11.0) Consumer Supply Chain 1,776 1,812 (2.0) 1,616 9.9 Healthcare & Technical Supply Chain 1,122 1,145 (2.0) 1,058 6.0 International Business Group 38 - nm 36 6.7 Total Sales 5,576 5,419 2.9 5,677 (1.8) Other income 106 97 9.3 68 55.9 Total Revenue 5,682 5,516 3.0 5,745 (1.1) Operating profit 286 413 (30.8) 219 30.9 %margin 5.1 7.6 (32.7) 3.8 33.3 Net profit for the quarter 181 304 (40.5) 147 23.4 %margin 3.2 5.6 (42.1) 2.6 25.6 Attributable to : Minority interest profit (loss) (23) 37 (162.2) 27 (185.2) Equity holders of the Company 204 267 (23.6) 120 70.0 %margin 3.7 4.9 (25.7) 2.1 73.1 Note: For the purpose of the Management Discussion and Analysis, the financial results of the Technical and Healthcare Supply Chains are jointly reported, consistent with historical reporting format. By the same token, the performance of the International Business Group is reported separately from the other supply chains. Industrial Supply Chain THB MM 1Q09 1Q08 %YoY 4Q08 %QoQ Sales 2,640 2,462 7.2 2,967 (11.0) Net profit (7) 62 (111.3) (57) (87.7) %margin (0.3) 2.5 (1.9) In 1Q09, the Industrial Supply Chain posted sales of THB 2,640 million, increasing by 7.2% YoY but decreasing by 11.0% QoQ. The decrease in sales from previous quarter was due to soft market demand and strong competition in glass container and aluminum can products.Sales increased from the same quarter last year due to the furnace shut down for maintenance at Thai Glass Industries Plc. in 1Q08. 1Q09 net profit declined from 1Q08 and 4Q08. The decline was mainly attributed to poorer performance of the aluminum can business. In addition to slower markets and strong competition, the Glass Packaging business also faced an oversupply situation during last year. The slowdown has been especially prominent in the Beverage Segment (Beer, Soda and Energy Drinks). Sales increased significantly YoY as there was a maintenance related shutdown at Bangplee in 1Q08. Compared to 4Q08, net profit also showed improvement due to more stabilized raw material and energy prices. The aluminum can business has also been affected by the demand slowdown, which resulted in lower utilization rates. In addition, the high aluminum price carried over from last year has led to inventory impairment charges which in turn affected profitability. Sales of other businesses, including engineering products & services and galvanized steel structures, continued to grow both YoY and QoQ. However, higher costs and expenses from e.g. shipping for overseas customers resulted in lower profitability. Consumer Supply Chain Group THB MM 1Q09 1Q08 %YoY 4Q08 %QoQ Sales 1,776 1,812 (2.0) 1,616 9.9 Net profit 97 82 18.3 68 42.6 %margin 5.5 4.5 4.2 In 1Q09, the Consumer Supply Chain achieved sales of THB 1,776 million, a slight decrease of 2.0% YoY but an increase of 9.9% QoQ, primarily due to an increase in sales of Parrot Botanical bar soaps and third party products. 1Q09 also showed substantial improvement in profitability both YoY and QoQ. This was mainly due to a decline in raw material costs and energy prices, as well as, successful cost control and productivity improvement. Sales of the snack business slowed down from 1Q08 as consumers reduced their average spending with fewer purchases. In addition, sales performance of Tasto Color Max BBQ was particularly outstanding last year. That said, sales improved 20.2% QoQ. Profitability has shown an improving trend due to lower raw material costs in paper pulp, palm oil and packaging as well as energy costs. We expect new product launches and successful cost control to continue to drive sales and profitability going forward. The tissue business has been operating in a more price competitive environment.However, earnings momentum remains positive due to the launch of more innovative products such as Cellox Purify in the premium segment and also due to the continued strength of Zilk, the leader in the mainstream market. Net profit in 1Q09 was significantly better than last quarter due to lower energy prices and raw material costs of paper pulp, as well as better cost control and higher efficiency and productivity. The soap and contract manufacturing business also showed an impressive performance in 1Q09. Sales improved 18.7% YoY and 12.9% QoQ. Parrot sales increased significantly YoY,due to new product development and brand building efforts that started in mid 2008. Third party business performance was particularly strong in personal care products. In addition, both soap and contract manufacturing businesses also benefited from the decrease in raw material prices such as packaging costs and energy prices. For the logistics business, revenues have grown both YoY and QoQ mainly due to improved performance of Custom Brokerage Services ("CBS"). However, profitability remained approximately at the same level as 1Q08 and 4Q08 as the selling and administrative expenses related to CBS customers were unusually high. Healthcare and Technical Supply Chain THB MM 1Q09 1Q08 %YoY 4Q08 %QoQ Sales 1,122 1,145 (2.0) 1,058 6.0 Net profit 84 137 (38.7) 152 (44.7) %margin 7.5 12.0 14.4 In 1Q09, the Healthcare and Technical Supply Chain reported sales of THB 1,122 million,a slight decrease of 2.0% YoY but an increase of 6.0% QoQ. Net profit was THB 84 million decreasing by 38.7% YoY and 44.7% QoQ. For the Healthcare Supply Chain Group, despite the economic slowdown, sales increased both YoY and QoQ mainly due to medical imaging products and medical equipment products.However, an increase in marketing & advertising expenses had a slight impact on EBIT and net margin. On the other hand, the economic slowdown had a stronger impact on the Technical Supply Chain Group through lower orders by office business and industrial customers. Sales decreased YoY due to a decline in chemical specialty products sales but improved QoQ. The economic slowdown also resulted in the switch of customer purchases to lower-price products, adversely impacting the Stationery and Graphic Group. Key Highlights of 1Q09 Income Statement THB MM 1Q09 1Q08 %YoY 4Q08 %QoQ Sales & Service 5,576 5,419 2.9 5,677 (1.8) Other income 106 97 9.3 68 55.9 Total Revenues 5,682 5,516 3.0 5,745 (1.1) Cost of good sold 4,451 4,139 7.5 4,965 (10.4) Gross profit 1,125 1,280 (12.1) 712 58.1 Selling & Administrative expenses 945 964 (2.0) 561 68.4 Operating profit 286 413 (30.8) 219 30.9 Interest expenses (incomes) 64 52 23.1 62 2.6 Share of profits from investments 14 25 (44.0) 16 (10.8) Earnings before tax 236 386 (38.9) 172 37.4 Tax 55 82 (32.9) 25 119.1 Net profit for the quarter 181 304 (40.5) 147 23.4 Attributable to : Minority interests profit (loss) (23) 37 (162.2) 27 (185.2) Equity holders of the Company 204 267 (23.6) 120 70.0 EBITDA 612 697 (12.1) 536 14.3 Key Ratios (%) 1Q09 1Q08 bps 4Q08 bps Gross margin 20.2 23.6 (344) 12.5 764 SG&A margin 16.9 17.8 (84) 9.9 706 Operating profit margin 5.1 7.6 (249) 3.8 128 Net profit to equity holders margin 3.7 4.9 (127) 2.1 154 EBITDA margin 11.0 12.9 (188) 9.4 154 Sales BJC reported 1Q09 sales of THB 5,576 million, an increase of 2.9% YoY but a marginal decrease of 1.8% QoQ. The Industrial Supply Chain Group remains a major revenue contributor of over 47% of total sales and showed the most improvement from the same quarter last year, with 7.2% YoY growth, while the Consumer Supply Chain Group showed the most improvement from the previous quarter, with 9.9% QoQ growth. Gross Profit Gross profit was THB 1,125 million, declining by 12.1% YoY primarily due to poorer performance in glass and aluminum can businesses, but improved significantly by 58.1% QoQ, mainly due to more stabilized raw material prices especially in soda ash, pulp, and energy. Additionally, 4Q08 gross profit was negatively affected by loss on fuel oil hedging. 1Q09 gross margin was 20.2%, lower than 23.6% in 1Q08. However, it has shown a significant improvement from 12.5% in 4Q08. This upward trend shows that BJC gross margin is reverting back to its normal levels. Selling and Administrative Expenses ("SG&A") Selling and administrative expenses in 1Q09 were THB 945 million, decreasing by 2.0% YoY but increasing by 68.4% QoQ, which was particularly high due to inventory impairment charge at Thai Beverage Can. Excluding this non-recurring charge, the normalized selling and administrative expenses decreased both YoY and QoQ. As a percentage to sales, SG&A to sales was 16.9%, lower than 17.8% in 1Q08 but higher than 9.9% in 4Q08. However, SG&A to sales in 4Q tends to be lower than the rest of the year. Net Profit 1Q09 net profit after minority interest reduction was THB 204 million, decreasing by 23.6% YoY but significantly increasing by 70.0% QoQ. Net profit margin was 3.7%, a decrease from 4.9% in 1Q08, but a significant improvement from 2.1% in 4Q08, in line with the gross profit trend. Debt to Equity Ratio (x times) 1Q08 2Q08 3Q08 4Q08 1Q09 Liabilities / Equity 1.10 1.10 1.16 1.16 1.08 Interest-bearing Debt / Equity 0.55 0.56 0.62 0.63 0.60 The interest-bearing debt to equity ratio was 0.60x in 1Q09, a slight decrease from 0.63x in 4Q08. BJC's liquidity position remains strong and interest-bearing debt to equity ratio remains significantly below the debenture covenant of 1.75x. The decrease in interest-bearing debt was due to debt repayment by Thai Beverage Can Ltd., Thai Glass Industries Plc., Berli Jucker Cellox and Berli Jucker Foods. Please be informed accordingly. Yours faithfully, Berli Jucker Public Company Limited Thirasakdi Nathikanchanalab Aswin Techajareonvikul Director Director