12 November 2009 The President The Stock Exchange of Thailand Dear Sir/Madam, Re: Management Discussion and Analysis on the third quarter 2009 financial performance Financial Performance Summary - 3Q09 Berli Jucker Public Company Limited ("BJC") is pleased to announce its 3Q09 earnings results. In 3Q09, sales were THB 5,474 million, representing a decrease of 3.6% YoY and 0.9% QoQ. Nonetheless,operating profit significantly improved to THB 492 million, showing an increase of 19.4% YoY and 20.3% QoQ. Furthermore, net profit for the quarter increased by 8.3% YoY and by 29.7% QoQ to THB 354 million. Sales breakdown is as follows: THB MM 3Q09 3Q08 %YoY 2Q09 %QoQ Industrial Supply Chain 2,531 2,819 (10.2) 2,431 4.1 Consumer Supply Chain 1,734 1,681 3.2 1,783 (2.7) Healthcare & Technical 1,061 1,085 (2.2) 1,128 (5.9) Supply Chain International Business Group 61 40 52.5 94 (35.1) Information Technology 87 51 70.6 86 1.2 Total Sales 5,474 5,677 (3.6) 5,522 (0.9) Other income 62 65 (4.6) 44 40.9 Total Revenue 5,537 5,741 (3.6) 5,566 (0.5) Operating profit 492 412 19.4 409 20.3 % margin 9.0 7.3 1.7 7.4 1.6 Net profit for the quarter 354 327 8.3 273 29.7 % margin 6.5 5.8 0.7 4.9 1.5Attributable to : Minority interest 19 42 (54.8) 4 375.0 Equity holders of the Company 336 286 17.5 269 24.9 % margin 6.1 5.0 1.1 4.9 1.3 Note: 1) 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. 2) %YoY and %QoQ changes for operating margin, net profit margin, and net profit margin attributable to equity holders of the Company denote the absolute changes YoY and QoQ respectively 3) Information Technology: please see the restatement explanation below Industrial Supply Chain THB MM 3Q09 3Q08 %YoY 2Q09 %QoQ Sales 2,531 2,819 (10.2) 2,431 4.1 Net profit 127 119 6.7 63 101.6 % margin 5.0 4.2 0.8 2.6 2.4 Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively In 3Q09, the Industrial Supply Chain posted sales of THB 2,531 million, a decrease of 10.2% YoY but an increase of 4.1% QoQ. The improvement in sales from the previous quarter can be attributed mainly to the better performance of galvanized steel structures and engineering products & services businesses. However, sales declined from the same period last year due mainly to the poorer performance of galvanized steel structures, glass packaging and aluminum can businesses. Net profit was THB 127 million, an increase of 6.7% YoY and 101.6% QoQ. Net profit margin was 5.0%, improving from 4.2% in 3Q08 and 2.6% in 2Q09. The increase in net profit from the previous quarter was due to improved performance of every business while the increase from the same period last year was primarily due to the better performance of the Glass Packaging business. Sales of the Glass Packaging business decreased from the same period last year due to softer demand in the beverage segment. However, sales remained at the same level as the previous quarter as the performance of the food segment continued to improve. Net profit and net margin showed an improvement QoQ due primarily to an increase in selling price. Net profit also increased YoY due to an increase in selling price, lower energy and raw material costs. Sales of the Aluminum Can business were lower YoY as a result of softening demand due to the poor economic situation, but remained at the same level QoQ. Net profit decreased from the same period last year as the high aluminum price of the stock carried over from last year due to forward purchase of aluminum in 4Q08. In 2009, however, the market price of aluminum (LME price) declined,and as a result, we were pressured to lower the selling price, thereby negatively affecting gross margins.The recovery from the previous quarter was due to higher revenue from selling scrap aluminum. For other businesses, sales of the Engineering Products & Services significantly increased both from the same period last year and from the previous quarter. For the Galvanized Steel Structures business, sales significantly improved from the previous quarter as the revenues from a previously delayed 2Q09 project were recognized in this quarter. Consumer Supply Chain Group THB MM 3Q09 3Q08 %YoY 2Q09 %QoQ Sales 1,734 1,681 3.2 1,783 (2.7) Net profit 146 67 117.9 101 45.6 % margin 8.4 4.0 4.5 5.6 2.8 Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively In 3Q09, the Consumer Supply Chain achieved sales of THB 1,734 million, an increase of 3.2% YoY and a decrease of 2.7% QoQ. Despite a decline in sales, 3Q09 net profit showed a 117.9% improvement from the same period last year and 45.6% from the previous quarter, mainly due to the outstanding performance of tissue, food, personal care, contract manufacturing and third party businesses. Sales of the Foods business decreased from the same period last year and from the previous quarter. However, net profit and net profit margin significantly improved. Net profit increased by 442.9% YoY and 122.3% QoQ due primarily to lower cost of packaging materials and better control of SG&A expenses. The soft market demand and cautious consumer spending remains the key reasons for the lower consumption and stronger competition. However, in this quarter, sales of extruded products continued to grow. In 3Q09, BJC introduced a limited edition of a new Tasto product, "Japanese Grilled Squid flavour" and sausage flavor rice cracker product "Dozo So Se Ji". For the Tissue business, sales were at around the same level as the same period last year and increased slightly from the previous quarter. In general, the industry is facing lower consumer spending and the ongoing aggressive competition, which resulted in price reduction. Cellox, Zilk and Belle the revenue contributors in this quarter. In September, BJC introduced "Melona Fun & Style, the Panda version" , which received positive consumer responses. In terms of profitability, net profit increased exceptionally from the same period last year and from the previous quarter due to successful cost control efforts, higher efficiency and productivity, and a decrease in paper pulp price. Sales and profitability of Personal Care businesses continued to grow QoQ and significantly increased YoY due mainly to the ongoing engagement in branding, advertising and marketing activities to strengthen "Parrot" brand, resulting in the solid performance of "Parrot" products both the bar soap and the shower cream categories. In addition to an increase in bar soap sales in a shrinking market, sales of shower cream increased to record levels. In this quarter, BJC launched "Parrot Botanical Frangipani (violet)". Besides Parrot brand, the liquid soap "Dermapon" also reported high sales growth in this quarter. For the Contract manufacturing business, revenue from soap contract manufacturing continued to grow, while revenue from confectionary was relatively stable. Third party business also showed satisfactory performance. Revenue from sales & marketing of "Fruit juice with nata de coco Kato" products was outstanding. Moreover, revenue from "Kirin Tea Break" continued to grow. For the Logistics business, revenues increased both YoY and QoQ. Warehouse service, rental service and transportation service revenues from external customers increased both YoY and QoQ while revenues from customers within the group company decreased both YoY and QoQ. Revenue from customs brokerage services significantly increased from the same period last year but decreased slightly from the previous quarter. Net profit decreased from the same period last year but increased from the previous quarter. The increase in net profit from the previous quarter was due to better storage capacity utilization and a significant decrease in selling & administrative expenses. Healthcare and Technical Supply Chain THB MM 3Q09 3Q08 %YoY 2Q09 %QoQ Sales 1,061 1,085 (2.2) 1,128 (5.9) Net profit 93 132 (29.5) 117 (20.5) % margin 8.8 12.2 (3.4) 10.4 (1.6) Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively In 3Q09, the Healthcare and Technical Supply Chain reported sales of THB 1,061 million, a decrease of 2.2% YoY and 5.9% QoQ. 3Q09 net profit was THB 93 million, a decrease of 29.5% YoY and of 20.5% QoQ Sales and net profit of the Healthcare Supply Chain decreased from the same period last year and from the previous quarter. The decrease was mainly attributed to a decline in sales and net profit of Medical Products, Erythropoietin products (red blood cell stimulating agent used for treating chronic kidney disease). The decrease in average selling price, increase competition and unfavorable product mix contributed to lower gross profit in Medical Products in this quarter. For Medical Imaging and Medical Equipment products, sales also experienced a decline due to a delay in products delivered by suppliers in Europe because of the summer break. However, gross profit and net profit were higher YoY and QoQ due to favorable product mix. For the Technical Supply Chain, sales increased both from the same period last year and from the previous quarter. Net profit decreased YoY due to lower net profit of associated companies, but was at the same level as the previous quarter. Sales of Stationary products significantly improved from the same period last year while sales of Graphics products significantly improved from the previous quarter. Sales of "3M" and "UHU" were strong compared to the same period last year, as a result of the popularity of the promotion premiums used to encourage volume purchase. The softer sales (compared to the previous quarter) in "Stabilo" and "Double A" were due to the school break. The Graphics division was able to secure new customers in this quarter for products such as "Agfa Anapurna" (launched in 2Q09) and "Luscher" products. In addition, other consumable products, such as Cine film also posted a good performance this quarter. Sales of the Specialties business decreased both from the same period last year and from the previous quarter, however, net profit was maintained at approximately the same level attributed to the good performance of Specialties business in Vietnam. Key Highlights of 3Q09 Income Statement THB MM 3Q09 3Q08 %YoY 2Q09 %QoQ Sales & Service 5,474 5,677 (3.6) 5,522 (0.9) Other income 62 65 (4.6) 44 40.9 Total Revenues 5,537 5,741 (3.6) 5,566 (0.5) Cost of goods sold 4,118 4,396 (6.3) 4,156 (0.9) Gross profit 1,419 1,346 5.4 1,410 0.6 Selling & Administrative expenses 927 934 (0.7) 1,001 (7.4) Operating profit 492 412 19.4 409 20.3 Interest expense (income) 52 65 (20.0) 57 (8.8) Share of profits from investments 8 31 (74.2) 16 (50.0) Earnings before tax 449 378 18.8 369 21.7 Tax 94 51 84.3 96 (2.1) Net profit for the quarter 354 327 8.3 273 29.7 Attributable to : Minority interests 19 42 (54.8) 4 375.0 Equity holders of the Company 336 286 17.5 269 24.9 EBITDA 863 781 10.5 740 16.6 Key Ratios (%) 3Q09 3Q08 %YoY 2Q09 %QoQ Gross profit margin 25.9 23.7 2.2 25.5 0.4 SG&A as % of sales 16.9 16.4 0.5 18.1 (1.2) Operating profit margin 9.0 7.3 1.7 7.4 1.6 Net profit margin (attributable to equity holders of the Company) 6.1 5.0 1.1 4.9 1.3 EBITDA margin 15.8 13.8 2.0 13.4 2.4 Note: %YoY and %QoQ changes for gross profit margin, SG&A of sales, operating profit margin, net profit margin, net profit margin attributable to equity holders of the Company and EBITDA margin denote the absolute changes YoY and QoQ respectively Restatement In order to build a stronger foundation and information system structure for BJC's expanding businesses, on 8 July 2009, BJC acquired additional ordinary shares (17% of the paid-up capital) of T.C.C. Technology Company Limited (TCCT) from TCC Holdings Company Limited. As a result of the acquisition, BJC's shareholding in TCCT increased from 34% to 51%. To facilitate comparison, BJC restated its consolidated 3Q08 and 2Q09 financial statements under the common control accordingly. Sales BJC reported 3Q09 sales of THB 5,474 million, a decrease of 3.6% YoY and 0.9% QoQ. The Industrial Supply Chain Group remains a major revenue contribution, representing 46% of total sales, followed by Consumer Supply Chain Group, representing 32% of total sales. Gross Profit In 3Q09, gross profit was THB 1,419 million, posting an increase of 5.4% YoY and 0.6% QoQ.Gross profit improved from the same period last year due to successful cost control efforts, more favorable raw material prices of Glass packaging, Tissue, and Personal care and Contract Manufacturing businesses, and more favorable product mix of Medical Imaging and Medical Equipment businesses. Gross margin was 25.9% this quarter, showing a continuous improvement from 23.7% in 3Q08 and 25.5% in 2Q09. Selling and Administrative Expenses ("SG&A") Selling and administrative expenses in 3Q09 were THB 927 million, a decrease of 0.7% YoY and 7.4% QoQ mainly due to a significant decrease in the selling expenses, especially advertising & promotion expenses. Although more intense competition necessitated more advertising & promotion activities for the Consumer Supply Chain, BJC was successful in reducing overall advertising & promotion expenses from the previous quarter. Net Profit 3Q09 net profit for the quarter was THB 354 million, an increase of 8.3% YoY and a significant increase of 29.7% QoQ. The net profit attributable to equity holders was THB 336 million, a significant increase of 17.5% YoY and of 24.9% QoQ. Net profit margin attributable to equity holders was 6.1%, an increase from 5.0% in 3Q08 and from 4.9% in 2Q09. Debt to Equity Ratio (x times) 3Q09 2Q09 1Q09 4Q08 3Q08 Liabilities / Equity 1.06 1.08 1.08 1.15 1.16 Interest-bearing Debt / Equity 0.57 0.57 0.60 0.72 0.32 3Q09 liabilities-to-equity-ratio was 1.06x, a decrease from 1.08x in 2Q09, while the interest bearing-debt-to-equity-ratio was 0.57x, the same as in 2Q09. BJC's liquidity position remains strong and the interest-bearing-debt-to-equity-ratio remains significantly below the debenture covenant of 1.75x. Please be informed accordingly. Yours faithfully, Berli Jucker Public Company Limited Thirasakdi Nathikanchanalab Aswin Techajareonvikul Director Director 5