14 November 2008 The President The Stock Exchange of Thailand Dear Sir, Re: Management Discussion and Analysis on 3Q08 financial performance Financial Performance Summary - 3Q2008 In 3Q08, Berli Jucker Public Company Limited had total sales of 5,622 million Baht. Total sales increased 17.1% YoY, and 5.5% QoQ. 3Q08 net profit was at 284 million Baht, declining 23.4% YoY and 30.1% QoQ. The Company's total sales have continued to improve. 3Q08 sales of Packaging Products Group and Technical and Industrial Products Group grew YoY and QoQ, while sales of Consumer Products Group slightly declined QoQ. Revenue (Million Baht) 3Q08 3Q07 % change 2Q08 % change Packaging 2,608 1,954 33.4 2,338 11.5 Consumer 1,721 1,583 8.7 1,749 (1.6) Technical & Industrial 1,293 1,265 2.3 1,242 4.1 Total 5,622 4,802 17.1 5,329 5.5 Packaging Products Group In 3Q08, sales of Packaging Products Group was 2,608 million Baht, increasing 33.4% YoY, and 11.5% QoQ. The sales increase was primarily driven by both glass packaging and aluminium can businesses. For glass packaging, capacity expansion resulted in over 30% increase in sales YoY and 16% Q0Q. However, gross margin declined significantly due primarily to 1) increase in energy and raw material cost e.g.soda ash, cullet (Detail is in the table below) 2) capacity expansion of new furnace, which has not been fully utilized 3) higher depreciation expense of new furnace installed end of 2Q08. Energy and Raw Material Costs Energy and Raw 3Q08 3Q07 % YoY 2Q07 % QoQ Material Costs Soda Ash (THB/ton) 12,261 7,055 73.8% 9,338 31.3% Cullet-Amber (THB/ton) 2,678 1,800 48.8% 2,314 15.7% Cullet-Flint (THB/ton) 3,088 2,100 47.0% 2,751 12.2% Fuel Oil (THB/K.Litre) 21.9 13.7 60.3% 17.6 24.2% Natural Gas (THB/ Scm ) 13.4 9.1 47.5% 11.0 21.5% Source: Company's data Consumer Products Group In 3Q08, sales of Consumer Products Group was at 1,721 million Baht. Sales increased 8.7% YoY, but declined marginally by 1.6% QoQ. For tissue paper, sales has been continuously improved. Sales of Rubia Industries Ltd. significantly increased 45% YoY and 8% QoQ due mainly from higher volume of OEM for skin care products. Technical and Industrial Products Group Technical and Industrial Products Group had 1,293 million baht sales in 3Q08, 2.3% increase YoY, and 4.1% increase QoQ. Sales of pharmaceutical, medical supplies and equipment, specialty ingredients and engineering businesses have continued to strengthen. In addition, sales of galvanized steel structure business was 50% higher than 2Q08. Key Highlights of 3Q08 Income Statement Million Baht 3Q08 3Q07 % change 2Q08 % change Revenue from Sales 5,622 4,802 17.1 5,329 5.5 Gost of good sold 4,369 3,499 24.9 3,897 12.1 Gross profit 1,253 1,302 (3.8) 1,432 (12.5) Shares of profits from investments 35 11 216.5 21 63.5 Other income 64 58 9.9 76 (16.1) Selling and administrative expenses 918 792 16.0 876 4.9 Interest expense 65 42 55.4 53 22.7 Income tax expense 47 145 (67.5) 140 (66.2) Net profit 284 371 (23.4) 406 (30.1) Earning Per Share (baht) 0.18 0.23 (23.4) 0.26 (30.1) % change % change Key Financial Ratio (%) 3Q08 3Q07 (ppts) 2Q08 (ppts) Gross Margin 22.3 27.1 (4.8) 26.9 (4.6) SG&A to sales 16.3 16.5 (0.2) 16.4 (0.1) Net Margin 5.1 7.7 (2.7) 7.6 (2.6) Gross Margin 3Q08 gross margin was at 22.3%, declining from 27.1% in 3Q07 and 26.9% in 2Q08. The decline was primarily due to higher raw material and energy costs as well as higher depreciation expense at glass packaging business. Consumer Products Group was also impacted by higher fuel price and raw material cost e.g. coconut oil and fresh potato.Gross margin of Technical and Industrial Products Group also experienced a slight decline due to lower sales proportion in products with higher gross margin. Selling and Administrative Expenses Selling and administrative expenses in 3Q08 was 918 million baht, 16.0% increase YoY and 4.9% increase QoQ. However, SG&A as a percentage of sales was relatively stable, comparing to 16.5% in 3Q07 and 16.4% in 2Q08. Net Profit Margin The Company's net profit in 3Q08 was 284 million baht, 23.4% and 30.1% lower than 3Q07 and 2Q08, respectively. This was mainly due to lower gross margin of glass packaging business. 3Q08 net margin was 5.1%, comparing to 7.7% in 3Q07 and 7.6% in 2Q08. Debt to Equity Ratio Debt Ratio 2006 2007 1Q08 2Q08 3Q08 Interest Bearing Debt to Equity 0.36 0.51 0.55 0.56 0.62 Debt to Equity 0.96 0.99 1.10 1.10 1.16 Interest bearing debt to equity ratio increased slightly to 0.62x in 3Q08, from 0.56x in 2Q08 due mainly to higher loan balance of Thai Glass Industrial Public Company Limited and Thai Beverage Can Company Limited. Nevertheless, the Company's financial position still remains solid. Interest bearing debt to equity ratio was still far below debenture covenant at 1.75x. Please be informed accordingly. Yours faithfully, Berli Jucker Public Company Limited Thirasakdi Nathikanchanalab Aswin Techajareonvikul Director Director