PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

Part 2 Issuing CompanyThai Beverage Public Company Limited1. RISK FACTORSAn investment in shares of ThaiBev involves risks. The investor should carefully consider allof the information in this prospectus and, in particular, the risks described below before deciding toinvest in shares of ThaiBev.The following describes some of the significant risks that could adversely affect the Companyand the value of ThaiBev’s shares. In addition to the risk factors described in this prospectus, theremay be some risks currently unknown to the Company and other risks currently believed by theCompany to be immaterial which could turn out to be material in the future. These risks couldmaterially adversely affect the business, revenue, profit, assets, liquidity or sources of fund of theCompany. Forward-looking statements described in this prospectus, for example “believe that”,“expect that”, “plan to”, “intend to” or “estimate that”, financial forecast, future project, businessforecast, operational result, business expansion plan, change of applicable law governing thebusiness operation of the Company, government policy, etc. which are forecasts made by theCompany at present do not represent or warrant the operating result or occurrence in the future.Actual outcome may be materially different from such forecasts. Information in this section whichrefers to, or is relevant to, the government or overall economy of the country is derived from theinformation disclosed in, or extracted from, the government’s published documents or other sources,the correctness of which are not verified or certified by the Company.1.1 Risks Relating to Business Operation of the Company1.1.1 Changes in consumer demand for beer and spirits products and fluctuations in consumerdemand due to seasonal changes and preference changes could adversely affect thebusiness, financial condition, results of operations and prospects of the CompanyRevenue and profitability of the Company are substantially dependent upon sales of its coreproducts — beer and spirits. Consumer demand for these products depends on demographic factorsand consumer preferences and trends, as well as factors relating to discretionary consumer spending,the general condition of the economy, level of consumer confidence and seasonal factors such asweather and festivities. The Company believes that consumer preference has changed consumptionbehavior, in particular among some urban consumers, towards beer with lower alcohol content. As aresult, consumer demand for the economy Chang Beer which contains higher alcohol content thanthose of its competitors has decreased, reducing the Company’s beer segment revenue. The saidincome for the six-month period ended June 30, 2008 (before intersegment eliminations) decreased6.4% compared with the same period in 2007.Seasonal consumption cycles and changes in weather conditions could affect operating resultsof the Company. The demand for products of the Company generally increases during major holidaysand festivals. The consumption of products significantly increases from the end of Buddhist lent (mid-October) to April and decreases from May to September due to the rainy season and observance ofBuddhist lent. As a result, a prolonged rainy season could adversely affect sales volume and theresults of operations of the Company for a particular year.The decrease in consumer demand for the products as a result of these or other factors couldadversely affect the business, financial condition, results of operations and prospects of the Company.Part 2 Page 2