13 May 2010 The President The Stock Exchange of Thailand Dear Sir/Madam, Re: Management Discussion and Analysis on the first quarter 2010 financial performance Financial Performance Summary - 1Q10 Berli Jucker Public Company Limited ("BJC") is pleased to announce its 1Q10 earnings results. In 1Q10, sales were THB 6,089 million, representing an increase of 8.2% YoY but a slight decrease of 1.4% QoQ. Operating profit in 1Q10 significantly improved to THB 770 million, showing an increase of 155.8% YoY and 11.4% QoQ. Net profit for the quarter was THB 581 million, a significant increase of 209.0% YoY and 17.6% QoQ. Net profit attributable to equity holders of the company was THB 516 million, a significant increase of 150.5% YoY and 17.3% QoQ. Sales breakdown is as follows: THB MM 1Q10 1Q09 %YoY 4Q09 %QoQ Industrial Supply Chain 3,022 2,640 14.5 3,098 (2.5) Consumer Supply Chain 1,864 1,776 5.0 1,779 4.8 Healthcare & Technical Supply 1,060 1,122 (5.5) 1,147 (7.6) Chain International Business Group 60 38 57.9 75 (20.0) Information Technology 82 54 51.9 76 7.9 Total Sales 6,089 5,629 8.2 6,175 (1.4) Other income 72 106 (32.1) 60 20.0 Total Revenue 6,160 5,735 7.4 6,235 (1.2) Operating profit 770 301 155.8 691 11.4 % margin 12.6 5.3 7.3 11.2 1.5 Net profit 581 188 209.0 494 17.6 % margin 9.5 3.3 6.2 8.0 1.5 Attributable to : Minority interest 65 (18) nm 54 20.4 Equity holders of the company 516 206 150.5 440 17.3 % margin 8.5 3.7 4.8 7.1 1.4 Note: 1) For the purpose of the Management Discussion and Analysis, the financial results ofthe Technical and Healthcare Supply Chains are jointly reported, consistent with historical reporting format. By the same token, the performance of the InternationalBusiness 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) The performance of 1Q09 reflected the restatement after acquiring 17% of the paid-up capital of T.C.C. Technology Company Limited (TCCT) on 8 July 2009 (BJC is currently holding 51% of the paid-up capital). Industrial Supply Chain THB MM 1Q10 1Q09 %YoY 4Q09 %QoQ Sales 3,022 2,640 14.5 3,098 (2.5) Net profit 323 (33) nm 268 20.5 % margin 10.7 (1.2) nm 8.7 2.0 Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively. In 1Q10, the Industrial Supply Chain posted sales of THB 3,022 million, an increase of 14.5% YoY but a decrease of 2.5% QoQ. The YoY increase was due to an increase in sales of Glass Packaging and Aluminum Can businesses. The QoQ decrease was attributed to the decrease in sales in other businesses than the Glass Packaging business, which continued to show positive growth momentum. Net profit was THB 323 million, a recovery from 1Q09 and an increase of 20.5% QoQ. In 1Q10, net profit margin continued to improve to 10.7%, compared to negative in 1Q09 and 8.7% in 4Q09. Compared to 1Q09, every business showed a significant improvement in net profit, particularly the Glass packaging business, which reported an increase in net profit of over 500% YoY. The improvement QoQ was attributed to the increase in net profit of the Glass Packaging, Aluminum Can, and Galvanized Steel Structures businesses. The Glass Packaging business reported an increase in sales both YoY and QoQ across all segments of customers as a result of an increase in market demand due to the improvement in economic conditions. Besides an increase in sales, the business continued to benefit from lower costs of key raw materials, such as soda ash and cullet, as well as benefit from selling & administrative expense control. As a result, net profit for the quarter significantly increased over 500% from 1Q09 and continued its growth momentum from 4Q09. The production efficiency (good-to-melt) significantly improved from 1Q09 and remained approximately at the same level as 4Q09. Sales of the Aluminum Can business increased YoY but decrease QoQ. The YoY increase was due to an increase in volume sales, mainly from beer and energy drinks segments, while the QoQ decrease was due to the seasonal impact as the fourth quarter is normally the peak season for beverage industry. 1Q10 net income improved both YoY and QoQ. The YoY improvement was primary due to minimal inventory impairment charges in 1Q10 compared to THB 31 million inventory impairment charges in 1Q09, while the QoQ improvement was attributed to lower aluminum price which reflected in the higher gross profit and resulted in an increase in net profit For other businesses, sales of the Galvanized Steel Structures and Engineering Products & Services businesses decreased both YoY and QoQ due to several delayed and postponing infrastructure projects. Nonetheless, net profit of the Galvanized Steel Structures increased both YoY and QoQ while net profit of the Engineering Products & Services business increased YoY but decreased QoQ. Consumer Supply Chain THB MM 1Q10 Q09 %YoY 4Q09 %QoQ Sales 1,864 1,776 5.0 1,779 4.8 Net profit 120 100 20.0 133 (9.8) % margin 6.4 5.6 0.8 7.5 (1.0) Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively. In 1Q10, the Consumer Supply Chain reported sales of THB 1,864 million, an increase of 5.0% YoY and 4.8% QoQ. An increase in sales YoY was attributed to Tissue, Personal Care, Third Party and Logistics businesses, while an increase in sales QoQ was attributed to Foods, Personal Care, Third Party and Logistics businesses. Net profit was THB 120 million, an increase of 20.0% YoY but a decrease of 9.8% QoQ. The YoY increase resulted from an improvement of Tissue, Personal Care,Third Party and Logistics businesses while the QoQ decrease was primarily attributed to the poorer performance of Tissue and Logistics businesses. 1Q10 net profit margin was at 6.4%, improving from 5.6% in 1Q09, but declined from 7.5% in 4Q09 primarily due to higher cost of sales, especially the cost of paper pulp which significantly increased from the beginning of the year. Sales and net profit of Foods business slightly decrease YoY but increased QoQ.The YoY decrease was attributed to the lower sales of potato chips product while the QoQ increase was attributed to the strong sales growth of rice cracker and extruded products. To reiterate the solid growth momentum of "Dozo" rice cracker and "Campus" chocolate extruded snack, in 1Q10 Foods business launched the promotion campaigns "BlackBerry lucky draw" for "Dozo" and "Mask Rider Den O" the famous cartoon character premium for "Campus", both of which received strong consumer acceptance. In addition, the business continued to launch new products, including the limited edition of "Tasto Alaska Cool", potato chips with the coolness aftertaste, and "Bitee Nano Seaweed Talay", dried potato snack with seaweed flavor, to serve the dynamic change of the market demand. For the Tissue business, sales increased YoY but decreased QoQ. Nonetheless,sales growth of the major brands, such as "Cellox", "Zilk" and "Belle", remained strong both YoY and QoQ. Since the beginning of the year, the Tissue business has been impacted by the ongoing competition, through price cutting as well as premium promotion, and higher paper pulp price, which reflected in lower net profit QoQ,however, the net profit remained higher YoY. Sales and net profit of the Personal Care business continued to post strong growth momentum both YoY and QoQ. In particular, "Dermapon" re-launched campaign implemented at the end of 2009 and new variance "Dermapon rose hip & chamomile" launched in October 2009 contributed to solid sales growth both YoY and QoQ for baby care & cosmetic products. In addition, "Parrot" bar and liquid soap remained to show the positive sales and net profit growth momentum. For Sales, Marketing & Distribution of the Third Party business, sales continued to grow both YoY and QoQ. Sales of "Kato", fruit juice with Nata De Coco continued to show solid growth momentum with its new highest record in March 2010. On the other hand, sales of Contract Manufacturing business decreased YoY, due to the decrease in sales in cosmetic products, but increased QoQ, due to the increase in sales in personal care products. Revenue of Logistics business increased both YoY and QoQ while net profit increased YoY but was at around the same level QoQ. The YoY increase in revenue was attributed to the increase in revenues from warehouse and transportation services while the QoQ increase in revenue was attributed to the increase in revenue from warehouse and custom brokerage services. The proportion of revenue from the external customers to the customers within the group company remained approximately at the same both YoY and QoQ. The average storage utilization decreased YoY but improved QoQ. Healthcare and Technical Supply Chain THB MM 1Q10 1Q09 %YoY 4Q09 %QoQ Sales 1,060 1,122 (5.5) 1,147 (7.6) Net profit 113 84 34.5 106 6.6 % margin 10.7 7.5 3.3 9.2 1.5 Note: %YoY and %QoQ changes for net profit margin denote the absolute changes YoY and QoQ respectively. In 1Q10, the Healthcare and Technical Supply Chain reported sales of THB 1,060 million, a decrease of 5.5% YoY and 7.6% QoQ. The decrease both YoY and QoQ was mainly attributed to the performance of the Healthcare Supply Chain, which was negatively affected by the delay of government spending, especially the delay of "Thai Kem Kang" project. Despite a decline in sales, 1Q10 net profit of THB 113 million still represented an increase of 34.5% YoY and 6.6% QoQ. For the Healthcare Supply Chain, the Medical Product Division still reported small increase in sales both YoY and QoQ while the Medical Equipment Division and Medical Imaging Division, which have been receiving the most impact by the delay of "Thai Kem Kang" project, reported significantly lower sales both YoY and QoQ. Overall, the net profit of Healthcare Supply Chain still increased YoY. For the Technical Supply Chain, sales of every business reported an increase YoY while sales of Stationery and Specialties businesses increased QoQ. The Stationery business reported the strong sales improvement both YoY and QoQ from higher consumption of all users including office, industrial and government sectors. The sign of the improvement in the economic conditions resulted in an increase in trade customers' confidence to keep the higher stock level. The net profit of all businesses under the Technical Supply Chain showed a significant improvement both YoY and QoQ, particularly Specialties business as a result of the improving performance of industrial, specialties and food ingredient products. Key Highlights of 1Q10 Income Statement THB MM 1Q10 1Q09 %YoY 4Q09 %QoQ Sales & Service 6,089 5,629 8.2 6,175 (1.4) Other income 72 106 (32.1) 60 20.0 Total Revenues 6,160 5,734 7.4 6,235 (1.2) Cost of goods sold 4,398 4,479 (1.8) 4,448 (1.1) Gross profit 1,691 1,150 47.0 1,727 (2.1) Selling & Administrative 993 955 4.1 1,096 (9.4) expenses Operating profit 770 301 155.8 691 11.4 Interest expense (income) 35 64 (45.3) 50 (30.0) Share of profits from 19 10 90.0 18 5.6 investments Earnings before tax 754 247 205.3 659 14.4 Tax 174 59 194.9 165 5.5 Net profit 581 188 209.0 494 17.6 Attributable to : Minority interests 65 (18) nm 54 20.4 Equity holders of the Company 516 206 150.5 440 17.3 EBITDA 1,123 639 75.7 1,049 7.1 Key Ratios (%) 1Q10 1Q09 %YoY 4Q09 %QoQ Gross profit margin 27.8 20.4 7.4 28.0 (0.2) SG&A as % of sales 16.3 16.9 (0.6) 17.8 (1.5) Operating profit margin 12.6 5.3 7.3 11.2 1.4 Net profit margin (attributable 8.5 3.7 4.8 7.1 1.4 to equity holders of the Company) EBITDA margin 18.4 11.3 7.1 17.0 1.4 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. Sales BJC reported 1Q10 sales of THB 6,089 million, an increase of 8.2% YoY but a decrease of 1.4% QoQ. All Supply Chains except the Healthcare Supply Chain reported higher sales from the same period last year. The Industrial Supply Chain, representing 50% of total sales, and the Consumer Supply Chain, representing 31% of total sales,remained two largest Supply Chains base on the sales contribution. Gross Profit In 1Q10, gross profit was THB 1,691 million, posting a significant increase of 47.0% YoY but a slight decrease of 2.1% QoQ. The significant improvement YoY primarily was attributed to the higher gross profit of the Industrial Supply Chain due to improving production efficiency (good-to-melt), better product mix and more favorable raw material prices. 1Q10 gross margin was 27.8%, a significant increase from 20.4% in 1Q09 and a slight decrease from 28.0% in 4Q09. Selling and Administrative Expenses ("SG&A") Selling and administrative expenses in 1Q10 were THB 993 million, an increase of 4.1% YoY but a decrease of 9.4% QoQ. The YoY increase and QoQ decrease was attributed to an increase and a decrease in selling and distribution expenses YoY and QoQ respectively. For the SG&A as a percentage to sales ratio, the Industrial Supply Chain, Technical Supply Chain and International Business Group reported lower ratio YoY while the Consumer Supply Chain and Technical Supply Chain reported lower ratio QoQ. Net Profit 1Q10 net profit for the quarter was THB 581 million, a significant increase of 209.0% YoY and 17.6% QoQ. The net profit attributable to equity holders was THB 516 million, a significant increase of 150.5% YoY and of 17.3% QoQ. Net profit margin attributable to equity holders was 8.5%, an increase from 3.7% in 1Q09 and from 7.1% in 4Q09. Debt to Equity Ratio (x times) 1Q10 4Q09 3Q09 2Q09 1Q09 Liabilities / Equity 0.92 1.03 1.06 1.08 1.08 Interest-bearing Debt / 0.46 0.53 0.57 0.57 0.60 Equity 1Q10 liabilities-to-equity-ratio was 0.92x, a decrease from 1.03x in 4Q09, while the interest-bearing-debt-to-equity-ratio was 0.46x, a decrease from 0.53x in 4Q09.The decline was primarily from the net debt repayment of Thai Glass Industries Plc.,Thai Beverage Can Ltd., and Berli Jucker Cellox Ltd.. 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