PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

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Part 2 Issuing CompanyThai Beverage Public Company Limitedmanagement team with substantial production know-how. In both its beer and spirits businesses, theCompany is confident in its ability to produce new products to meet market demands.Experienced and proven management teamThe Company’s management team possesses a proven ability to develop and build brandrecognition and deliver growth and profitability. The Company’s management team has a proventrack record and leadership in these businesses as evidenced by the introduction of Chang Beer in1995, which became the market leader in 1998. The Company believes that its management team hasthe skill and proficiency to deal with any changes in the marketplace. The Company’s continuousefforts in recruiting executives from international premium beverage businesses place the Company ina strong position to meet challenges that lie ahead. On the production side, its management teampossesses extensive brewing and distilling as well as non-alcoholic beverage production experienceand technical know-how gained at the Company and elsewhere. The Company’s brewery productionstaff includes the “master brewer” qualified technicians, who have been trained at internationalbrewing institutions in Europe which are professionally accredited for all aspects of knowledgerelating to beer and soft drink production, including raw materials, production processes as well asmachinery and equipments. Further, the Company has conducted an analysis on the consumers tounderstand the current market demand. This will allow the Company to be able to produce newproducts, both alcoholic and non-alcoholic beverages, to precisely meet the demands of consumers.2.5 Corporate Vision and MissionCorporate Vision“We will strive to become a leading global beverage company with focus on commercialexcellence, continued premiumization of our products, and professionalism.”Mission: Production and distribution of quality products to consumersvalues:The Company will seek “partnerships” among its key stakeholders through six guiding• Offer quality products for every customer segment• Satisfy distributors’ needs by offering professional services• Provide first quartile returns to its shareholders with consistent high revenue growth andprofitability• Become a role model in terms of professionalism, transparency, and good corporategovernance• Trust, empower and reward its staff to make them accountable• Contribute to the public and local communities2.6 Operation Strategy2.6.1 Corporate Development StrategyThe Company’s corporate development strategy will emphasize on premiumization,internationalization and professionalisation. The professional development of the Company’smanagement and other human resources has played an increasing role in the success of the Companyover time. Part of the impetus has been the conversion of the Company from a private company to aPart 2 Page 31
Part 2 Issuing CompanyThai Beverage Public Company Limitedpublic company, and there are ongoing measures to allow its management to embrace accountabilityand create an organization that is more efficient and focused on operational excellence.Professionalism is linked to good corporate governance, which will ensure the Company is well-runon behalf of shareholders. The Company has commenced the introduction of international-standardmetrics that will assist management monitor their performance and thus helps improve its operationover time.2.6.2 Domestic Business StrategyThe Company’s strategy for the domestic market focuses on the protection of the corebusinesses of beer and spirits. The Company intends to continue growing its portfolio and become aleader in all alcoholic beverage segments. The Company strongly believes that the Thai market has apotential to grow further as there is still a limited number of brands available and the narrowsegmentation of brands. Thai people aspire to move towards higher quality drinks, whether alcoholicor non-alcoholic and the Company will have products ready to meet such consumer demand.At present, the Company is one of the leaders in the economy segment of its beer and spiritsbusinesses. In the future, the Company will introduce standard and premium products that will extendits portfolio upwards. This will provide the Company with higher margins and greater profitabilityover time. The Company has noted that the spirits market will move toward brown spirits over thelong term and a more balanced portfolio will allow the Company to diversify risks of relying on onetype of product or another over time.The Company also intends to continue to premiumize its current portfolio. For instance, theCompany has already introduced gift boxes for several spirits products such as Sangsom rum in 2007.The Company re-launched Hong Thong in 2006 with new packaging that led to a good response fromconsumers. These steps will raise the market perception of its products and lead to more sustainedgrowth in the future.In order to diversify the portfolio further, the Company will expand further into the nonalcoholicdrinks market to offer a complete range of beverages. The Company has already acquired allthe energy drinks and ready-to-drink coffee assets of Wrangyer Beverage (2008) Co. in January 2008.The energy drinks market is growing at approximately 3.0% per annum making it an attractive entrypoint into non-alcoholic beverages for the Company. In September 2008, ThaiBev acquired shares ofOishi Group Plc. in an amount of 43.9% of the total paid-up shares of Oishi Group Plc. and made atender offer to purchase all securities of Oishi Group Plc. On November 18, 2008, ThaiBev held89.9% of the issued shares of Oishi Group Plc. Currently, Oishi Group Plc. holds 99.9% of shares inOishi Ramen Co. and Oishi Trading Co. The Oishi Group’s core business is the operation of Japaneserestaurants as well as production of food and beverages.In addition, since the Company owns one of the largest distribution networks in Thailand, theCompany has a plan to make more strategic use of this network over time by offering it to outsideorganizations. First, the Company needs to make it more efficient in, and more capable of, handling awider range of products. To achieve this, the Company introduced a logistics project in the fourthquarter of 2008. One of the objectives is to introduce five large distribution centers around Thailandthat would allow the Company to store more products and distribute them to surrounding regionsmore efficiently.2.6.3 Overseas Business StrategyThe Company strongly believes that it must adopt an appropriate route to enter foreignmarkets, either through wholly owned or with strategic partners, depending on its determination topenetrate into that market and market circumstances. The Company actively seeks out distributionpartners. Should its beverages begin to gain traction in a country, the Company would then considereither contracting local partners for brewing or purchasing a local brewery. As for the markets wherePart 2 Page 32
Page 1 and 2: (Translation)PROSPECTUSTHAI BEVERAG
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