Executive Summary The following is the report of the Berli Jucker Y2K Compliance programme as at the end of April 1999. In summary, the preparations of the Berli Jucker Public Company Limited and subsidiary companies to achieve Y2K Compliance are progressing well. The Company is on track to achieve Y2K Compliance by mid 1999. The management is confident that this project will be completed as targeted and that the Berli Jucker and subsidiary companies will be able to move smoothly into the next millennium. For Berli Jucker and most of the subsidiaries, the majority of the preparations are already complete. Outstanding is the need to develop a series of Business Continuity and Contingency Plans that lays out clearly what we will do if, despite our best efforts, our business ceases to function properly because of Y2K problems outside our control. Project Timetable - Berli Jucker ------------------------------------------------------------------------------------- Compliance testing of applications software Status ------------------------------------------------------------------------------------- MIS - Order Processing, Inventory Control, Compliant Accounts Receivable, and Cost of Goods Testing completed 30/4/98 ------------------------------------------------------------------------------------- Payroll / HRM compliance testing Compliant Testing completed 31/3/98 ------------------------------------------------------------------------------------- Oracle OLAP package Already compliant ------------------------------------------------------------------------------------- Operating Systems and database products Already compliant ------------------------------------------------------------------------------------- ORACLE Financial Applications Already complaint ------------------------------------------------------------------------------------- Compliance testing for embedded devices Completed by end of April 1998 ------------------------------------------------------------------------------------- Check compliance programs of our trading partners On-going ------------------------------------------------------------------------------------- Upgrade of PC's and PC software Completed - March 1999 ------------------------------------------------------------------------------------- Subsidiary Companies Cellox Paper Company Limited Cellox have confirmed that all computer hardware and software has been tested and is compliant. The majority of the manufacturing equipment contains no Programmable Logic Controllers (PLC) devices. All equipment containing PLC has been tested and is compliant. Thai Glass Industries Public Company Limited The Thai Glass plans to achieve Y2K compliance are well advanced. Examination and correction of all manufacturing equipment is complete. The upgrading of computer hardware and software was completed in March 1999. The upgrading of manufacturing equipment with the last non-compliant PLC device will be completed during the second quarter 1999. Rubia Industries Limited An inventory of all manufacturing equipment has been produced. The analysis of these embedded systems is complete. Upgrades to the MRPII software package and associated computer hardware are in progress. These will completed by the end of June 1999. Compliance for all production equipment and the PABX system will be achieved by 30 June 1999. 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. 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. Non-compliant PCs are being upgraded. 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. Berli Prospack Company Limited Compliance testing of manufacturing equipment has been completed by the equipment suppliers. Compliance for computer hardware and software will be completed the end of June 1999. 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 original capital expenditure budget to achieve Y2K Compliance for Berli Jucker was Baht13, 500,000. For the period January 1998 - March 1999 Baht13.5 million has been spent to upgrade and replace essential computer hardware and software. Risks/Issues Business Continuity and Contingency Planning A series of workshop sessions will be held with the management teams from the operating divisions and subsidiaries to develop a series of Y2K contingency plans. These will be held during early May with the aim of completing the detailed plans by the end of June 1999. Supply Chain Review Berli Jucker is currently reviewing the Y2K preparations of our 300 major local and overseas suppliers and trading partners. The response to the Berli Jucker Y2K Questionnaire has been disappointing: - 49 out of 137 overseas suppliers have responded - 31 out of 228 local suppliers have responded A telephone follow-up of the non-respondents to determine their Y2K status is in progress. Public Utilities The major area of concern for Berli Jucker is the level of compliance of our major utility providers. Although the following organizations are all active in preparing for Y2K, there are concerns that they will have completed the required work on time. The Electricity Generating Authority of Thailand (EGAT) has produced an encouraging status report concerning its preparations for Y2K. EGAT plans to be fully compliant by June 1999 and appears to be on track to meet this date. The Provincial Electricity Authority (PEA) plans to be fully compliant by the end of May 1999. The Metropolitan Electricity Authority (MEA) who are responsible for the power distribution and load balancing within Bangkok were 90% complete in their compliance program as at January 1999. Petroleum Authority of Thailand (PTT) PTT expect their Y2K compliance project to be completed by June 1999. Also of concern are the Telephone Organization of Thailand (TOT) and the Communications Authority of Thailand (CAT). As of January 1999 TOT appear to be 70% through their compliance programme, CAT has completed 90% of their preparations.