PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

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Part 2 Issuing CompanyThai Beverage Public Company LimitedBusiness segmentsMillionBaht2005% MillionBaht2006(beforerestatement)% MillionBaht2006(after restated) 2007% MillionBahtSix-month periodended June 30,2008% MillionBaht1. Beer (1) 42,277.0 44.5 46,641.0 47.7 46,103.2 47.1 47,557.3 47.3 21,272.0 41.62. Spirits (2) 52,811.0 55.6 51,428.3 52.6 51,576.1 52.7 52,940.2 52.7 28,718.5 56.23. Non-alcoholicbeverages (3) - - - - - - - - 364.9 0.74. Industrialalcohol (4) 869.2 0.9 1,205.0 1.2 1,205.0 1.2 966.0 1.0 756.8 1.55. Relatedbusinesses (5) 6,633.0 7.0 7,155.1 7.3 - - - - - -6. Elimination (7,686.8) (8.1) (8,631.6) (8.8) (1,086.4) (1.1) (922.5) (0.9) (29.3) (0.1)Total revenuefrom sales 94,903.4 100.0 97,797.9 100.0 97,797.9 100.0 100,540.9 100.0 51,082.9 100.0%2.4 Competitive StrengthsThe Company believes that the Company has the following competitive strengths:Leading producer and distributorAccording to Canadean, the Company is one of the leading brewer and distiller in Thailand(based on sales and production volumes). In 2007, the Company’s beer products had an aggregatedomestic market share of 46.7% of the total sales volumes of beer. The Company believes that theCompany is one of the largest distillers in Thailand. The Company also believes that the Company isone of the largest distillers and brewer in Southeast Asia based on the sales volume. The Company’sleading market position in both the beer and spirits markets has enabled the Company to establish anextensive distribution network throughout Thailand and has enhanced its ability to obtain favorableterms from its customers and suppliers.(1)(2)(3)(4)(5)Operated by BeerThai Plc., BeerThip Co., Cosmos Co., Thipchalothorn Co., Krittayabun Co., Surathip Co.,Pomthip Co., Pomkit Co., Pomkung Co., Pomchok Co., Pomcharoen Co., Pomburapa Co., Feed AdditionCo. and IBHL Group.Operated by Sangsom Co., Red Bull Co., United Winery Co., Sura Bangyikhan Co., Fuengfuanant Co.,Athimart Co., S.S. Karnsura Co., Kankwan Co., Theparunothai Co., Thanapakdi Co., Mongkolsamai Co.,Simathurakij Co., Kanchanasingkorn Co., Luckchai Liquor Trading Co., Nateechai Co., ThipchalothornCo., Krittayabun Co., Surathip Co., Sunthronpirom Co., Piromsurang Co., Num Yuk Co., Num KijjakarnCo., Num Palang Co., Num Muang Co., Num Nakorn Co., Num Thurakij Co., Thai Molasses Co., BionicHumus Co., Thai Cooperage Co., Sura Piset Thipparat Co., United Products Co. and IBHL Group.Operated by Wrangyer Beverage (2008) Co., S.P.M. Foods and Beverages Co. and Thai Drinks Co.Operated by Thai Alcohol Plc. The Company has sold all shares of Thai Alcohol Plc. since September2008.Operated by Pan International (Thailand) Co., Dhospaak Co., Thai Beverage Recycle Co.,Sahatipkarnkonsong Co., Thai Beverage Marketing Co., Dhanasindhi Co., Charun Business 52 Co., SuraPiset Phatra Lanna Co., Vitayathan Co., Banglen Agriculture Co., Sint Ek Panich Co., Pan Alcohol Co.,Sura Piset Thipparat Co., Muangkij Co., Sura Piset Sahasan Co., Sura Piset Sampan Co., Thai ThumDistillery Co., IBHL, InterBev (Cambodia) Co., Ltd., InterBev Malaysia Sdn. Bhd. and InterBev(Singapore) Limited.Part 2 Page 29
Part 2 Issuing CompanyThai Beverage Public Company LimitedAttractive growth prospects in existing marketsThe Company believes that its markets for beer and spirits are growing and that the Companyis well-placed to capture this market growth as well as growth in related markets. According toCanadean, the Thai beer market grew at the compounded annual growth rate (CAGR) of 9.3% perannum from 1999 to 2007 in terms of sales volume. The Company expects such market will continuegrowing due to an expanding customer base and an increasing consumption per capita trend. Inaddition, the Thai spirits market is also growing. The sales volumes of its brown spirits have grownrapidly in recent years, which offset the declining demand for lower-priced Chinese herb spirits. TheCompany is well positioned in the spirits market as the Company is one of the leaders in both whiteand brown spirits in terms of sales volume. The Company expects that it will have an increase inmarket share of drinking water and soda water markets. Currently, the actual utilization of itsproduction capacity is lower than that of the designed production capacity.Strong brand recognitionThe Company believes that many of its products are well-known in Thailand, with areputation for quality, taste and “Thai” character. Chang Beer product is one of the highest consumedbeer in Thailand. The Company’s portfolio of popular local spirits, including traditional white spirits,Chinese herb spirits and brown spirits are consumed widely by Thai people. Sangsom is theCompany’s flagship spirits brand and is well recognized in Thailand for its international quality.Mekhong is a traditional rum with a long heritage in Thailand. The Company’s production processesgives its leading brands a unique flavor, which differentiates its products from those of itscompetitors. In addition, the Company continuously increases its brand recognition in Thailand andabroad with strategic marketing investments in various aspects, including a sponsorship of leadingsports teams such as Everton.Extensive distribution network and well-established relationships with distributorsThe Company has more than 900 salespersons, over 4,000 vehicles and approximately 400warehouses, which enable the Company to distribute its products of various brands through anextensive distribution network of approximately 400,000 points throughout Thailand. In addition, theCompany has long-standing relationships with its agents and distributors. The Company believes itsdistribution system is one of the most established and far-reaching networks in Thailand. TheCompany has integrated distribution network for beer and spirits and it sees significant potential tofurther leverage its distribution platform to sell other products, such as non-alcoholic beverages, to themarketplace. Although the Company currently does not distribute a significant quantity of third partyproducts through its network, the Company possesses a capability to do such activity if attractivebusiness prospects arise. In addition, the Company has a team responsible for its premium beveragesin order to establish relationship with various distribution channels, namely hotels, restaurants, barsand foreign liquor stores in order to prepare them for its new products launched in the future,especially the products that are priced higher than those the Company currently sells. Such team willbe responsible for developing relationships with various distribution channels to promote its products.High quality production facilitiesThe Company’s breweries have state-of-the-art production technology in terms of quality,efficiency and environmental management. The Company has expanded the production capacity of itsKamphaengphet brewery, which was completed in 2007. The said brewery is one of the largest andmost modern breweries in Asia. The Company’s breweries aim to produce beer with the highestquality that meets international standards and its facilities are sufficiently flexible to support a varietyof brands with minimal additional investment. In addition, the Company’s distilleries are wellestablishedthroughout Thailand and have a long history of producing high quality spirits. TheCompany’s 18 domestic distilleries were recently refurbished and are operated by an experiencedPart 2 Page 30
Page 1 and 2: (Translation)PROSPECTUSTHAI BEVERAG
Page 3 and 4: Thai Beverage Public Company Limite
Page 5 and 6: Part 1 Executive SummaryThai Bevera
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