thaibev: annual report 2006

Investor Information

Financial Highlights

Message from the Chairman

Shareholding Structure

Report of the Board of Directors

Board of Directors

Executive Board of Directors

Background of Directors & Key Management

Organization Structure

Product Portfolio

Operating and Financial Review

Milestones

Credit Rating Announcementร

Awards

Corporate Governance Report

Corporate Social Responsibility Report

Audit Committee Report

Audit Report of Certified Public Accountant

Financial Statements

Interested Persons Transactions Report

Accounting Manual Policy / SAP System

Announcements to SGX 2006

General Corporate Information

1

2

18

22

26

40

42

44

52

58

60

84

87

88

90

102

104

105

106

167

189

191

192

Contents Annual Report 2006 - Thai Beverage Public Company Limited

1

Thai Beverage is listed on the Singapore Exchange (SGX-ST) main board.

STI ticker THBEV

Reuters tbev.si

Bloomberg thbev sp

Google Finance SIN:Y92

IPO date: 30 May 2006

IPO offer price: S$ 0.28

Fiscal year ends: December 31

Investor Information Annual Report 2006 - Thai Beverage Public Company Limited

External Auditor: KPMG Phoomchai Audit Ltd.

Dividend Policy: not less than 50% of net profit after

deducting all appropriated reserves

ThaiBev’s stock performance Share price* 2006 High S$ 0.305 (August 31 and September 1) 2006 Low S$ 0.24 (June 8) *data from May 30, 2006 to December 29, 2006

Investor Relations Contact Investor Relations Department, Office of Corporate Communications

Thai Beverage PLC. 14 Vibhavadi Rangsit Rd., Chomphon, Chatuchak, Bangkok 10900 THAILAND

Mr. Richard W. Jones Tel: +662 272 2295 (DIR) +662 272 2051-5 ext. 1228

Fax: +662 272 2280

E-mail: [email protected]

Namfon Aungsutornrungsi Tel: +662 272 2051-5 ext. 1225 E-mail: [email protected]

Ariya Silakorn Tel: +662 272 2051-5 ext. 1222

E-mail: [email protected]

Corporate website: www.thaibev.com IR website: www.thaibev.com/set/investor.html

1600

1400

1200

1000

800

600

400

200

0

May

June

July

Augu

st

Sept

embe

r

Octo

ber

Nove

mbe

r

Dece

mbe

r 2006

0.35

0.3

0.25

0.2

0.15

0.1

Price (S$) Vol.

(M shares)

ThaiBev Close Volume

2

Financial Highlights Annual Report 2006 - Thai Beverage Public Company Limited

2006 2005 Million Baht Million Baht

Income Statement

Total Sales 97,798 94,903

Total Revenues 97,956 95,190

Cost Of Sales 69,325 65,188

Gross Profit 28,473 29,715

Operating Profit 15,789 16,534

Earnings before interest expense and tax (EBIT) 15,946 16,822

Net Profit 10,055 10,337

Depreciation and Amortisation 4,652 4,432

Earnings before interest expense, tax,

depreciation & amortisation (EBITDA) 20,598 21,254

Balance Sheet

Current Assets 33,536 36,349

Non-current Assets 52,044 50,788

Total Assets 85,580 87,137

Current Liabilities 26,151 55,228

Non-current Liabilities 6,875 195

Total Liabilities 33,026 55,423

Shareholders’ Equity 52,554 31,714

Total Liabilities and Shareholders’ Equity 85,580 87,137

3

2006 2005

Financial Ratio

Return On Equity (%) 23.9% 31.6%

Return On Total Assets (%) 11.6% 11.4%

Current Ratio (Times) 1.28 0.66

Accounts Receivable Turnover (Days) 5.2 6.0

Debt To Equity Ratio (Times) 0.63 1.75

Interest coverage Ratio (Times) 13.13 12.20

Total Interest Bearing Debt To EBITDA Ratio (Times) 0.95 1.94

FFO* to Total Interest Bearing Debt Ratio (%) 75.39% 35.81%

Per Share Information (Baht)

Net Assets Value per share 2.21 1.44

Earnings per share - basic 0.42 0.47

*FFO (Fund from Operation) = Net profit + Depreciation and Amortisation

18

Message from the Chairman Annual Report 2006 - Thai Beverage Public Company Limited 18

19

Dear Shareholders,

Thai Beverage Public Company Limited (“Company”) recognizes its mission to continuously sharpen its competitive

edge, generate value, and move forward for the best interests of shareholders, customers, and employees under good

corporate governance.

Our performance in 2006 proved that we have adhered to our cause despite volatile domestic economic conditions in the

country, natural disasters, and unforeseen events.

Year of Progress and Success

In 2006 the Company succeeded in its operations with total sales revenue of 97,798 million Baht, a 3.1% increase from

2005. The operating profit amounted to 15,789 million Baht, and the net profit was 10,055 million Baht.

The Company took two major measures to reduce its debt while increasing financial liquidity. First, 3,110,025,000

common shares were sold to foreign investors and local institutional investors as a means of recapitalization. Second,

the Company successfully listed on the Singapore Exchange Securities Trading Limited (“Singapore Exchange”) and

began trading its common shares on May 30, 2006.

Many events in 2006 had a bearing on the Company’s operations, including floods in upcountry areas, which affected

the distribution of white spirits. However, the beer market remained intact because most of our consumers live in urban

areas, which remained relatively dry. The beer market expanded in the third quarter with the greater popularity of Archa

Beer. The anticipated regulatory change in the advertisement of alcohol products will affect all operators in the alcoholic

beverage industry, including the Company. The actual impact on the Company cannot be assessed until the regulation

becomes effective.

In relation to our business management, the Board of Directors (“Board”) has delegated authority to certain groups in the

Company, including the Executive Board of Directors, which is responsible for the day-to-day business administration

of the group, and working committees in charge of specific tasks. These groups maintain close communication with

the Board to ensure appropriate business management, enhance the Board’s oversight efficiency, and adherence to

corporate governance. In doing so, the Company aims to generate the highest value and gain acceptance from

19

20

shareholders, investors, stakeholders, related parties, as well as regulatory agencies. Five committees support the

work of the Board, namely the Executive Board of Directors, the Audit Committee, the Remuneration Committee,

the Nomination Committee, and the Risk Management Committee. These people have put in their best efforts, thereby

strengthening our ability to conduct our business under good corporate governance.

Market Leadership and Strength in Product Distribution

Our beer and liquor products are well accepted in both local and international markets. By establishing a network of over

400,000 distributors throughout Thailand as well as maintaining good relationships with distributing agents and sales

representatives, sales of the Company’s beer and liquor products have been on the rise.

Business Strategies

Our strategies focus on product distribution and brand awareness. We will work more closely with distributors to develop

sales strategies in consideration on consumer needs. We have not only conducted market research to develop products

aligning with consumer needs but also conducted product research by the blending expertise of foreign liquor

manufacturers with Thai liquor manufacturers. This will lead to better understanding of consumer needs, thus creating

new products that are comparable, or superior to foreign leading liquors, thereby reducing our need to import.

For long-term competitiveness and brand awareness, the Company became a sponsor of the British Everton Football

Club, whose team uniform features the Chang logo, instantly making the brand of beer well-known among soccer fans

around the world.

The Company operates three beer breweries with a total capacity of 1,550 million liters per year, and 17 distilleries are

under the Company’s network with a total production capacity of 808 million liters per year. All breweries and distilleries

have been upgraded and constantly monitored to maintain local and international standards, including Thai Industrial

Standard and ISO 900:2004. Moreover, our operating facilities have achieved Hazard Analysis and Critical Control Point

(HACCP) certification as well as Good Manufacturing Practice (GMP) certification from the Food & Drug Administration.

All breweries won ISO 14001:2004 certification for environmental management, and their laboratories won ISO 17025

certification. These accreditations reflect our commitment to the quality of products and consumer needs. In addition,

these efforts raise our competitiveness in the global market.

20

21

Social Responsibility

Apart from business performance and targets, we take our environmental responsibility seriously. All our manufacturing

facilities are required to adopt ISO 1400:2004 standards in their environmental management. In addition, we continue to

provide assistance to the needy and those affected by natural disasters, as well as supporting the efforts of government

and private organizations in social contribution, including sports and public health.

Moving Ahead with Sustainability

It is projected that the beer and liquor markets will expand both locally and internationally. With a strong commitment to

continually enhancing every aspect of its business, the Company will forge ahead with sustainability and stability.

This annual report contains information on our business performance, credit rankings, organizational achievements,

financial performance, risk management, market trends, and good corporate governance.

On behalf of the Board, I would like to thank every customer and shareholder for continuously supporting the Company’s

business operations, and extend my appreciation to the Company’s Directors, executives and employees, who have

demonstrated full dedication to carrying out their duties. I assure you that the Company will continue to do its best under

good corporate governance for sustainable business growth.

Mr. Charoen Sirivadhanabhakdi

Chairman

21

22

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

22

Shareholding Structure Annual Report 2006 - Thai Beverage Public Company Limited

23

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

23

24

��

��

��

��

��

��

��

��

��

��

��

��

Shareholding Structure Annual Report 2006 - Thai Beverage Public Company Limited

25

��

��

��

��

��

��

��

��

��

��

��

��

26

Report of the Board of Directors Annual Report 2006 - Thai Beverage Public Company Limited

Breakdown in Shares and Types of Share

No. Company/Location Type of

Business Type of Share

Paid-Up Capital (Baht)

Shares Issued

No. of Shares Held

% of Shareholding Remark

1 Thai Beverage Public Company Limited Holding Common 25,110,025,000.00 25,110,025,000 - - 14 Vibhavadi Rangsit Road, Company Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 2 Thai Alcohol PLC. Alcohol Common 800,000,000.00 160,000,000 159,999,986 100.00% 31-35 Chalermkhet 1 Road, Production Khwaeng Wat Thepsirin, Khet Pomprab, Bangkok 10100 3 Sangsom Co., Ltd. Liquor Common 7,500,000,000.00 750,000,000 749,999,994 100.00% 14 Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 4 Fuengfuanant Co., Ltd. Liquor Common 900,000,000.00 90,000,000 89,999,994 100.00% 333 Moo 1, Tambon Tha Toom, Production Amphoe Si Maha Phot, Prachin Buri 25140 5 Mongkolsamai Co., Ltd. Liquor Common 700,000,000.00 70,000,000 69,999,994 100.00% 14 Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 6 Thanapakdi Co., Ltd. Liquor Common 700,000,000.00 70,000,000 69,999,994 100.00% 315 Moo 4, Tambon Mae Faek, Production Amphoe San Sai, Chiang Mai 50290 7 Kanchanasingkorn Co., Ltd. Liquor Common 700,000,000.00 70,000,000 69,999,994 100.00% 14 Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 8 Sura Bangyikhan Co., Ltd. Liquor Common 4,000,000,000.00 400,000,000 399,999,994 100.00% 82 Moo 3, Tambon Bang Khoo Wat, Production Amphoe Muang, Pathum Thani 12130 9 Athimart Co., Ltd. Liquor Common 900,000,000.00 90,000,000 89,999,994 100.00% 170 Moo 11, Tambon Nikhom, Production Amphoe Satuek, Buri Ram 31150 10 S.S. Karnsura Co., Ltd. Liquor Common 800,000,000.00 80,000,000 79,999,994 100.00% 101 Moo 8, Tambon Kaeng Dom, Production King Amphoe Sawang Wirawong, Ubon Ratchathani 34190

27

11 Kankwan Co., Ltd. Liquor Common 800,000,000.00 80,000,000 79,999,994 100.00% 14 Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 12 Theparunothai Co., Ltd. Liquor Common 700,000,000.00 70,000,000 69,999,994 100.00% 99 Moo 4, Tambon Hat Kham, Production Amphoe Muang, Nong Khai 43000 13 Red Bull Distillery (1988) Co., Ltd. Liquor Common 3,000,000,000.00 300,000,000 299,999,940 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 14 United Winery & Distillery Co., Ltd. Liquor Common 1,800,000,000.00 180,000,000 179,999,994 100.00% 14 Soi Yasoob 1, Vibhavadi Rangsit Road, Production Khet Chatuchak, Bangkok 10900 15 Simathurakij Co., Ltd. Liquor Common 900,000,000.00 90,000,000 89,999,994 100.00% 1 Moo 6, Tambon Ban Daen, Production Amphoe Banphot Phisai, Nakhon Sawan 60180 16 Nateechai Co., Ltd. Liquor Common 800,000,000.00 80,000,000 79,999,994 100.00% 14 Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 17 Luckchai Liquor Trading Co., Ltd. Liquor Common 800,000,000.00 80,000,000 79,999,994 100.00% 46 Moo 1, Tambon Nong Klang Na, Production Amphoe Muang, Ratchaburi 70000 18 Pomthip Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% 2194 Charoen Krung Road, Distribution Khwaeng Wat Phraya Krai, Khet Bang Kho Laem, Bangkok 10120 19 Pomkit Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% 48,50,52 Suranaree Road, Distribution Tambon Nai Muang, Amphoe Muang, Nakhon Ratchasima 30000 20 Pomchok Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% Daw. 16/1, U Thong Road, Distribution Tambon Tha Wasukri, Amphoe Muang, Ayutthaya 13000




Shares Issued

No. of Shares Held


28

21 Pomcharoen Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% 135/3 Moo 4, Kanchanavithi Road, Distribution Tambon Bang Kung, Amphoe Muang, Surat Thani 84000 22 Pomklung Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% 80/13-14 Ekathosarot Road, Distribution Tambon Nai Muang, Amphoe Muang, Phitsanulok 65000 23 Pomburapa Co., Ltd. Beer Common 10,000,000.00 1,000,000 999,994 100.00% 51/42 Moo 3, Sukhumvit Road, Distribution Tambon Ban Suan, Amphoe Muang, Chon Buri 20000 24 Num Yuk Co, Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% 95/390-391 Trok Nokkhet, Distribution Rama III Road, Khwaeng Chong Nonsi, Khet Yannawa, Bangkok 10120 25 Num Thurakij Co., Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% 51/40-41 Moo 3, Sukhumvit Road, Distribution Tambon Ban Suan, Amphoe Muang, Chon Buri 20000 26 Num Muang Co., Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% Daw. 16/2, U Thong Road, Distribution Tambon Tha Wasukri, Amphoe Muang, Ayutthaya 13000 27 Num Nakorn Co., Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% 149/3 Chulachomklao Road, Distribution Tambon Tha Kham, Amphoe Phun Phin, Surat Thani 84130 28 Num Palang Co., Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% 1/7-8 Phraya Surasi Road, Distribution Tambon Nai Muang, Amphoe Muang, Phitsanulok 65000 29 Num Kijjakarn Co., Ltd. Liquor Common 10,000,000.00 1,000,000 999,994 100.00% 1,3,5 Trok Wat Muang, Suranaree Road, Distribution Tambon Nai Muang, Amphoe Muang, Nakhon Ratchasima 30000 30 Thipchalothorn Co., Ltd. Beer and Common 1,000,000.00 100,000 99,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Liquor Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 Agent




Shares Issued

No. of Shares Held


29

31 Krittayabun Co., Ltd. Beer and Common 5,000,000.00 500,000 499,994 100.00% 14 Vibhavadi Rangsit Road, Liquor Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 Agent 32 Surathip Co., Ltd. Liquor Common 1,200,000.00 120,000 119,940 100.00% 14 Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Agent Khet Chatuchak, Bangkok 10900 33 Sunthornpirom Co., Ltd. Liquor Common 5,000,000.00 500,000 499,994 100.00% 14 Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Agent Khet Chatuchak, Bangkok 10900 34 Piromsurang Co., Ltd. Liquor Common 5,000,000.00 500,000 499,994 100.00% 14 Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Khet Chatuchak, Agent Bangkok 10900 35 Thai Beverage Marketing Co., Ltd. Liquor Import Common 300,000,000.00 30,000,000 29,999,940 100.00% 40/53 Vibhavadi Rangsit Road, & Export / Khwaeng Talat Bangkhen, Khet Laksi, Overseas Bangkok 10210 Marketing 36 Sahatipkarnkonsong Co., Ltd. Logistics Common 12,000,000.00 1,200,000 1,199,940 100.00% 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 37 Maharas Agri Co., Ltd. Japanese Common 2,000,000.00 200,000 199,940 100.00% 14 Vibhavadi Rangsit Road, Rice Khwaeng Chomphol, Planting Khet Chatuchak, Bangkok 10900 38 Thai Molasses Co., Ltd. Molasses Common 40,000,000.00 40,000 39,887 99.72% 14 Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 39 Thai Cooperage Co., Ltd. Oakwood Common 300,000,000.00 30,000,000 29,999,940 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Barrel Khwaeng Chomphol, Khet Chatuchak, Production Bangkok 10900

Name changed to

“Thai Beverage Logistics

Co., Ltd.” as of 30 Jan. 07




Shares Issued

No. of Shares Held


30

40 Dhospaak Co., Ltd. Advertising Common 25,000,000.00 2,500,000 2,499,994 100.00% 195 Empire Tower, 25th Floor, Sathon Tai Road, Khwaeng Yannawa, Khet Sathon, Bangkok 10120 41 Beer Thip Brewery (1991) Co., Ltd. Beer, Drink Common 6,600,000,000.00 660,000,000 659,999,940 100.00% 15 Moo 14, Vibhavadi Rangsit Road, & Soda Khwaeng Chomphol, Khet Chatuchak, Production Bangkok 10900 42 Beer Thai (1991) PLC. Beer, Drink Common 5,550,000,000.00 555,000,000 554,999,985 100.00% 15 Moo 14, Vibhavadi Rangsit Road, & Soda Khwaeng Chomphol, Khet Chatuchak, Production Bangkok 10900 43 Bionic Humas Co., Ltd. Fertilizer Common 10,000,000.00 100,000 99,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Sale Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 44 Additive Food Co., Ltd. Animal Feed Common 1,000,000.00 10,000 9,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 45 Pan International (Thailand) Co., Ltd. Equipment Common 1,000,000.00 10,000 9,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, and Supply Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 46 Charun Business 52 Co., Ltd. Brick Common 121,800,000.00 1,218,000 1,217,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Production Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 47 Dhanasindhi Co., Ltd. Construction Common 20,000,000.00 20,000 19,994 100.00% 949/6-8 Nakhon Chaisi Road, Khet Dusit, Bangkok 10300 48 Bang-na Logistics Co., Ltd. Bottle Common 123,000,000.00 1,230,000 1,229,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 49 Sura Piset Samphan Co., Ltd. Liquor Common 100,000,000.00 1,000,000 - - 14 Vibhavadi Rangsit Road, Production & Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900




Shares Issued

No. of Shares Held


31

50 Sura Piset Sahasan Co., Ltd. Liquor Common 100,000,000.00 1,000,000 - - 14 Vibhavadi Rangsit Road, Production & Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 51 Sura Piset Pattharalanna Co., Ltd. Liquor Common 100,000,000.00 1,000,000 - - 14 Vibhavadi Rangsit Road, Production & Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 52 Sura Piset Thipharat Co., Ltd. Liquor Common 500,000,000.00 5,000,000 4,999,994 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Production & Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 53 Pan Alcohol Co., Ltd. Vinegar Common 2,000,000.00 20,000 - - 15 Moo 14, Vibhavadi Rangsit Road, Production & Khwaeng Chomphol, Khet Chatuchak, Distribution Bangkok 10900 54 Muangkij Co., Ltd. Oakwood Common 3,810,000.00 38,100 - - 9 Dao Khanong-Chom Thong Road, Supply Khwaeng Bang Kho, Khet Chom Thong, Bangkok 19500 55 Thai Thum Distillery Co., Ltd. Liquor Common 17,500,000.00 17,500 - - 14 Vibhavadi Rangsit Road, Distribution Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 56 Sint Ek Panich Co., Ltd. Mining Common 9,000,000.00 90,000 - - 31-35 Chalermkhet 1 Road, Khwaeng Wat Thepsirin, Khet Pomprab, Bangkok 10100 57 Banglen Agriculture Co., Ltd. Agricultural Common 50,000,000.00 50,000 - - 31-35 Chalermkhet 1 Road, Planting Khwaeng Wat Thepsirin, Khet Pomprab, Bangkok 10100 58 Vidhayathan Co., Ltd. Environmental Common 5,000,000.00 50,000 - - 15 Moo 14, Vibhavadi Rangsit Road, Conservation Khwaeng Chomphol, Khet Chatuchak, Public Bangkok 10900 Relations 59 Archa Beer Co., Ltd. Trademark Common 1,000,000.00 100,000 99,940 100.00% 4236/55 Trok Nokkhet, Rama III Road, Proprietor & Khwaeng Bang Khlo, Beer Khet Bang Kho Laem, Concentrate Bangkok 10120 Production




Shares Issued

No. of Shares Held


32

60 T.C.C. Cosmo Corporation Ltd. Trademark Common 5,000,000.00 50,000 49,940 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Proprietor Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 61 Cosmos Brewery (Thailand) Co., Ltd. Beer, Drink Common 1,666,666,500.00 166,666,650 166,666,590 100.00% 15 Moo 14, Vibhavadi Rangsit Road, & Soda Khwaeng Chomphol, Khet Chatuchak, Production Bangkok 10900 62 Beer Chang Co., Ltd. Trademark Common 1,000,000.00 10,000 9,940 100.00% 15 Moo 14, Vibhavadi Rangsit Road, Proprietor & Khwaeng Chomphol, Khet Chatuchak, Beer Bangkok 10900 Concentrate Production 63 International Beverage Holdings Limited Holding Common HK$ 100,000,000.00 100,000,000 100,000,000 100.00% Room 901-2, Silvercord, Tower 1, Company 30 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong 64 InterBev (Singapore) Limited Trading of Common SGD 3,000,000.00 3,000,000 3,000,000 100.00% 3 Philip Street # 13-04 Commerce Point, alcoholic Singapore beverages 65 InterBev Malaysia Sdn. Bhd. Trading of Common MYR 100,000.00 100,000 100,000 100.00% Suite 6.01, 6th Floor, Plaza See Hoy Chan, alcoholic Jalan Raja Chulan, 50200 Kuala Lumpur, beverages Malaysia 66 InterBev (Cambodia) Co.,Ltd. Trading of Common USD 100,000.00 N/A N/A 100.00% 140 Nehru (Street # 215) alcoholic Sankat Vealvong, Khan 7 Makara, beverages Phnom Penh, Kingdom of Cambodia 67 InterBev USA Inc. Trading of Common USD 1.00 10,000 1,000 100.00% 405 Lexington Avenue, 25th Floor, alcoholic Suite 2532, New York, USA beverages 68 Best Spirits Company Limited Trading of Common HKD 15,300,000.00 15,300,000 15,300,000 100.00% Room 901-2, Silvercord Tower 1, alcoholic 30 Canton Road, Tsim Sha Tsui, beverages Kowloon, Hong Kong




Shares Issued

No. of Shares Held


Name changed to

“International Beverage

Holdings Limited USA, Inc.”

as of 7 Feb. 07

33

69 Pacific Spirits (UK) Ltd. Holding Common £50,000.00 50,000 50,000 100.00% Moffat Distillery, Airdrie, ML6 8PL, companies Scotland including head offices 70 Blairmhor Limited Production Common £9,406.70 940,670 940,670 100.00% Moffat Distillery, Airdrie ML6 8PL, and Scotland distribution of spirits 71 Inver House Distillers Limited Production Common £1,000,000.00 1,000,000 1,000,000 100.00% Moffat Distillery, Airdrie ML6 8PL, and Scotland distribution of spirits 72 Wee Beastie Limited Trading of Common £1,000,000.00 1,000,000 1,000,000 100.00% Moffat Distillery, Airdrie, ML6 8PL, alcoholic Scotland beverages 73 Blairmhor Distillers Limited Spirits Common £200.00 2,000 2,000 100.00% Moffat Distillery, Airdrie, ML6 8PL, Distillery Scotland 74 Moffat & Towers Limited Dormant Common £1.00 1 1 100.00% Moffat Distillery, Airdrie ML6 8PL, Scotland 75 Glen Calder Blenders Limited Dormant Common £100.00 100 100 100.00% Moffat Distillery, Airdrie, ML6 8PL, Scotland 76 Hankey Bannister & Company Limited Dormant Common £100.00 100 100 100.00% Moffat Distillery, Airdrie, ML6 8PL, Scotland 77 R. Carmichael & Sons Limited Dormant Common £30,000.00 30,000 30,000 100.00% Moffat Distillery, Airdrie, ML6 8PL, Scotland 78 J MacArthur Jr & Company Limited Dormant Common £100.00 100 100 100.00% Moffat Distillery, Airdrie, ML6 8PL, Scotland 79 Mason & Summers Limited Dormant Common £10,030.00 10,030 10,030 100.00% 10 Foster Lane, London, EC2V 6HH, England




Shares Issued

No. of Shares Held


34

80 James Catto & Company Limited Dormant Common £50,000.00 50,000 50,000 100.00% Moffat Distillery, Airdrie ML6 8PL, Scotland 81 The Knockdhu Distillery Company Limited Dormant Common £100.00 100 100 100.00% Moffat Distillery, Airdrie ML6 8PL, Scotland 82 Speyburn-Glenlivet Distillery Dormant Common £100.00 100 100 100.00% Company Limited Moffat Distillery, Airdrie ML6 8PL, Scotland 83 The Pulteney Distillery Company Limited Dormant Common £2.00 2 2 100.00% Moffat Distillery, Airdrie ML6 8PL, Scotland 84 The Balblair Distillery Company Limited Dormant Common £2.00 2 2 100.00% Moffat Distillery, Airdrie ML6 8PL, Scotland 85 Liquorland Limited Off licences Common £245,000.00 245,000 245,000 49.00% 8 Westbank Road, Belfast, BT3 9JL, Northern Ireland 86 Inver House Distribution SA Dormant Common £24,450.00 2,500 1,248 50.00% Avenue des Tilleuls, 62140 Marconne, France 87 Inver House Polska Limited Dormant Common 700,000.00 zl N/A N/A 40.00% ul. Obodrzyców 34 A/1, 81-812 Sopot, Poland




Shares Issued

No. of Shares Held


35

Name of Shareholders

1 Mr. Charoen Sirivadhanabhakdi Thai Beverage Public Company Limited 3,156,500,000 12.57 - - - Good Show Holdings Limited - - MM Group Limited 5,000 100.00

Risen Mark Enterprise Ltd. - - MM Group Limited 50,000 100.00

Siriwana Co., Ltd. 199,999,997 50.00 - - - Golden Capital (Singapore) Limited - - MM Group Limited 10,000,000 100.00

MM Group Limited 25,000 50.00 - - - 2 Khunying Wanna Sirivadhanabhakdi Thai Beverage Public Company Limited 3,156,500,000 12.57 - - - Good Show Holdings Limited - - MM Group Limited 5,000 100.00

Risen Mark Enterprise Ltd. - - MM Group Limited 50,000 100.00

Siriwana Co., Ltd. 199,999,997 50.00 - - - Golden Capital (Singapore) Limited - - MM Group Limited 10,000,000 100.00

MM Group Limited 25,000 50.00 - - - 3 Mr. Narong Srisa-an Thai Beverage Public Company Limited 1 0.00 - - - 4 Mr. Komen Tantiwiwatthanaphan Thai Beverage Public Company Limited 34,068,668 0.14 - - - 5 Mr. Paisal Chevasiri* Thai Beverage Public Company Limited 200,340,500 0.80 - - - 6 Mr. Puchchong Chandhanakij Thai Beverage Public Company Limited 1 0.00 - - - 7 Mr. Staporn Kavitanon - - - - - - 8 Prof. Kanung Luchai - - - - - - 9 Mr. Manu Leopairote - - - - - - 10 Mr. Ng Tat Pun - - - - - - 11 Mr. Michael Lau Hwai Keong - - - - - - 12 Gen. Dr. Choo-Chat Khumbhu Na Ayudhya - - - - - - 13 Prof. Pornchai Matangkasombut - - - - - - 14 Mr. Sakthip Krairiksh - - - - - - 15 Mr. Vivat Tejapaibul Thai Beverage Public Company Limited 291,541,500 1.16 - - - 16 Mr. Samut Hatthasing Thai Beverage Public Company Limited 1 0.00 - - - 17 Ms. Kanoknart Rangsithienchai Thai Beverage Public Company Limited 1 0.00 - - - 18 Mr. Thapana Sirivadhanabhakdi Thai Beverage Public Company Limited 107,000,000 0.43 - - - 19 Mr. Sithichai Chaikriangkrai Thai Beverage Public Company Limited 1 0.00 - - - 20 Mr. Ueychai Tantha-Obhas - - - - - - 21 Dr. Pisanu Vichiensanth - - - - - - 22 Mr. Chukiet Tangpongprush Thai Beverage Public Company Limited 1 0.00 - - -

*Mr. Paisal Chevasiri resigned from the Board effective from February 26, 2007

No. Direct Interest Number of

shares

Percentage of

shareholding

Deemed Interest

List of direct and deemed interests of each director

As at January 21, 2007

Number of shares

Percentage of

shareholding

36

Top Twenty Shareholders As at March 6, 2007

Percentage No. Name of shareholders No. of shares of shares

1 The Central Depository (PTE) Limited 6,295,659,920 25.07

2 Good Show Holdings Limited 3,492,720,000 13.91

3 Mr. Charoen Sirivadhanabhakdi 3,156,500,000 12.57

4 Khunying Wanna Sirivadhanabhakdi 3,156,500,000 12.57

5 Risen Mark Enterprise Ltd. 2,359,815,000 9.4

6 Siriwana Co., Ltd. 2,197,200,000 8.75

7 Mr. Suchin Worawongwasu 900,000,000 3.58

8 Mrs. Siriluck Maithai 338,519,080 1.35

9 Mr. Vivat Tejapaibul 291,541,500 1.16

10 Ms. Somrhudee Sirawongprasert 167,061,000 0.67

11 Mr. Paisal Chevasiri 150,000,000 0.6

12 Golden Capital (Singapore) Limited 116,480,000 0.46

13 Mrs. Wantanee Chevasiri 110,236,750 0.44

14 Mrs. Wongchanok Chevasiri 110,236,750 0.44

15 Mrs. Wallapa Trisorat 107,000,000 0.43

16 Ms. Atinant Sirivadhanabhakdi 107,000,000 0.43

17 Mr. Panote Sirivadhanabhakdi 107,000,000 0.43

18 Ms. Thapanee Sirivadhanabhakdi 107,000,000 0.43

19 Mr. Thapana Sirivadhanabhakdi 107,000,000 0.43

20 Mr. Suthep Opaspanich 80,000,000 0.32

Total 23,457,470,000 93.42

THAI BEVERAGE PUBLIC COMPANY LIMITED STATISTICS OF SHAREHOLDINGS AS AT 6 MARCH 2007 DISTRIBUTION OF SHAREHOLDINGS Size of Holdings No. of Shareholders % No. of Shares %

1 - 999 10 0.07 1,277 0.00 1,000 - 10,000 9,688 71.75 42,940,796 0.68 10,001 - 1,000,000 3,776 27.96 213,374,000 3.39 1,000,001 and above 30 0.22 6,039,343,847 95.93 TOTAL 13,504 100.00 6,295,659,920 100.00

37

TWENTY LARGEST SHAREHOLDERS

No. Name No. of Shares %

1 DBSN Services Pte Ltd 1,221,685,943 19.41

2 DBS Nominees Pte Ltd 1,078,172,068 17.13

3 Risen Mark Enterprise Limited 833,335,000 13.24

4 Citibank Nominees Singapore Pte Ltd 782,419,100 12.43

5 UOB Kay Hian Pte Ltd 536,483,000 8.52

6 HSBC (Singapore) Nominees Pte Ltd 475,032,046 7.55

7 Morgan Stanley Asia (S’pore) Securities Pte Ltd 424,868,000 6.75

8 United Overseas Bank Nominees Pte Ltd 377,803,098 6.00

9 Raffles Nominees Pte Ltd 128,381,950 2.04

10 Golden Capital (Singapore) Limited 75,000,000 1.19

11 Merrill Lynch (Singapore) Pte Ltd 28,510,000 0.45

12 OCBC Securities Private Ltd 18,632,000 0.30

13 CLSA Singapore Pte Ltd 16,583,000 0.26

14 DB Nominees (S) Pte Ltd 13,352,000 0.21

15 DBS Vickers Securities (S) Pte Ltd 4,258,000 0.07

16 ING Nominees (S’pore) Pte Ltd 3,942,000 0.06

17 Royal Bank of Canada (Asia) Ltd 2,000,000 0.03

18 Yala Pte Ltd 1,954,642 0.03

19 Lee Seng Hong or Shee Liang Yee Theresa 1,620,000 0.03

20 United Caoutchouc Trading Co Pte Ltd 1,600,000 0.03

TOTAL 6,025,631,847 95.73

38

Statistics of Shareholders

As at March 6, 2007

Information on share capital

Issued and fully paid-up capital Baht 25,110,025,000

Class of shares Common shares with a par value of Baht 1

Number of shares in issue 25,110,025,000

Voting rights One vote per one share

Analysis of Shareholders by size of Shareholdings

Size of No. of Percentage of No. of Percentage of shareholdings shareholders shareholding shares shares

1 - 999 8 6.84% 8 0.00%

1,000 - 10,000 n/a n/a n/a n/a

1,001 - 1,000,000 23 19.66% 6,491,469 0.03%

1,000,0001 and above 86 73.50% 25,103,533,523 99.97%

Total 117 100.00% 25,110,025,000 100.00%

Particular of material contracts with related parties for the year 2006 consist of

1. Loan agreement between Great Oriole Ltd. who is lender and Pacific Spirits UK Ltd. who is borrower. Lender and

borrower have same common principal shareholder. Loan equivalent amounting to Baht 4,615.23 million as at

31 December 2006 with average effective interest rate at 2.8% per annum and no security provided. Loan term

is at call. The majority of principle and interest were paid on 5 February 2007 and the remaining balance will be paid

within 30 April 2007.

2. Sell and Purchase Bottle Agreement between Berli Jucker PLC.(a related company) who is seller and Bang-na Logistic

Co., Ltd. (a wholly owned subsidiary of Thai Beverage PLC.) who is purchaser. The sell and purchase amounts of bottle

for the year 2006 was Baht 1,971.16 million.

39

Net book value of the company freehold land and building as at 31 December 2006 are as follows.

(Million Baht)

Land 8,364.83

Surplus on land revaluation 6,586.76

Land improvement 677.30

Building and improvements 10,733.93

Total 26,362.82

Most of Land revaluation per above are carried out during 2003 and 2004 by independent professional valuers on an open

market basis.

The company leases various premises, primarily for the branch offices and warehouses. All of these leases are operating

leases and not financial leases.

As at 31 December 2006, the amount of freehold land held for planned future business operations amounted to Baht

1,625.97 million which is 11.3% of profit before income tax.

40

Board of Directors Annual Report 2006 - Thai Beverage Public Company Limited

Mr. Charoen Sirivadhanabhakdi Chairman

Khunying Wanna Sirivadhanabhakdi Vice Chairman

Mr. Narong Srisa-an Vice Chairman

Mr. Komen Tantiwiwatthanaphan Vice Chairman

Mr. Staporn Kavitanon Independent Director and Audit Committee Chairman

Prof. Kanung Luchai Independent Director and Audit Committee Member

Mr. Manu Leopairote Independent Director and Audit Committee Member

Mr. Ng Tat Pun Independent Director and Audit Committee Member

Mr. Michael Lau Hwai Keong Independent Director

Prof. Pornchai Matangkasombut Independent Director

Gen. Dr. Choo-Chat Kambhu Na Ayudhya Independent Director

Mr. Sakthip Krairiksh Independent Director

41

Mr. Vivat Tejapaibul Director

Mr. Puchchong Chandhanakij Director

Mr. Samut Hatthasing Director

Ms. Kanoknart Rangsithienchai Director

Mr. Thapana Sirivadhanabhakdi Director

Mr. Sithichai Chaikriangkrai Director

Dr. Pisanu Vichiensanth Director

Mr. Ueychai Tantha-Obhas Director

Mr. Chukiet Tangpongprush Director

Mrs. Vaewmanee Soponpinij Company Secretary / Secretary to the Board

Mr. Thidi Suwanarat Assistant Secretary

Mr. Panote Sirivadhanabhakdi Director

42

2 3 4

5 6 7 8

9 10 11 12

1

Executive Board of Directors Annual Report 2006 - Thai Beverage Public Company Limited

43

9. Mr. Sithichai Chaikriangkrai Director and Senior Vice President

10. Dr. Pisanu Vichiensanth Director and Senior Vice President

2. Khunying Wanna Sirivadhanabhakdi First Executive Vice Chairman

3. Mr. Narong Srisa-an Second Executive Vice Chairman

4. Mr. Komen Tantiwiwatthanaphan Third Executive Vice Chairman

5. Mr. Puchchong Chandhanakij Fourth Executive Vice Chairman*

6. Mr. Samut Hatthasing President

7. Ms. Kanoknart Rangsithienchai Director and Executive Vice President

8. Mr. Thapana Sirivadhanabhakdi Director and Executive Vice President

11. Mr. Ueychai Tantha-Obhas Director and Senior Vice President

12. Mr. Chukiet Tangpongprush Director and Senior Vice President

1. Mr. Charoen Sirivadhanabhakdi Executive Chairman

Mrs. Vaewmanee Soponpinij Company Secretary / Secretary to the Board

Mr. Thidi Suwanarat Assistant Secretary

* Effective from March 1, 2007

44

Background of Directors & Key Management Annual Report 2006 - Thai Beverage Public Company Limited

Mr. Charoen Sirivadhanabhakdi Chairman / Executive Chairman

Mr. Charoen Sirivadhanabhakdi was appointed Chairman of the Board of Directors of Thai Beverage PLC. (ThaiBev) in 2003. He has been the Chairman of Beer Thai (1991) PLC. and the Red Bull Distillery Group of Companies since 2004; the Chairman of T.C.C. Capital Land Company Limited since 2003 and the Chairman of Berli Jucker Plc. since 2001. In addition, he has been the Chairman of the Executive Board of T.C.C. Company Limited since 1972. Mr. Charoen holds an Honorary Doctoral Degree in Agricultural Business Administration from Maejo University and an Honorary Doctoral Degree in Industrial Technology from Chandrakasem Rajabhat University. Mr. Charoen has received various honors and royal decorations, such as the Knight Grand Cordon (Special Class) of the Most Exalted Order of the White Elephant, the Knight Grand Cordon (First Class) of the Most Noble Order of the Crown of Thailand, the Knight Commander (Second Class Lower Grade) of the Most Illustrious Order of Chula Chom Klao and the Knight Grand Cross (First Class) of the Most Admirable Order of the Direkgunabhorn. Khunying Wanna Sirivadhanabhakdi Vice Chairman / 1st Executive Vice Chairman

Khunying Wanna Sirivadhanabhakdi was appointed Vice Chairperson of the Board of Directors in 2003. She has been the Chairperson of Beer Thip Brewery (1991) Company Limited and the Sangsom Group of companies since 2004. She has also been the Vice Chairperson of T.C.C. Capital Land Company Limited since 2003, a Vice Chairperson of Berli Jucker Plc. since 2001 and the Vice Chairperson of the Executive Board of T.C.C. Company Limited since 1972. Khunying Wanna holds an Honorary Doctoral Degree in Bio-technology from Ramkhamhaeng University, an Honorary Doctoral Degree in Agricultural Business Administration from Maejo University and an Honorary Degree in Business Administration from Chiang Mai University. She is also the Vice Chairperson of the Sirivadhanabhakdi Foundation, a Director of the Siriraj Foundation and a Director of Ramathibodi Foundation. Khunying Wanna has received numerous honors and royal Thai decorations, such as the Knight Grand Cordon (Special Class) of the Most Exalted Order of the White Elephant (Ladies), the Knight Grand Cordon (First Class) of the Most Noble Order of the Crown of Thailand (Ladies), the Companion (Third Class, Lower Grade) of the Most Illustrious Order of Chula Chom Klao and the Knight Grand Cross (First Class) of the Most Admirable Order of the Direkgunabhorn. Mr. Narong Srisa-an Vice Chairman / 2nd Executive Vice Chairman

Mr. Narong Sri Sa-an was appointed Vice Chairman of the Board of Directors in 2003. He has 44 years’ experience in the banking industry, having served in Kasikorn Bank Plc. from 1954 to 1998 as its Executive Vice Chairman. He also holds directorships in several public companies in Thailand, including Vice-Chairman of Berli Jucker Plc, Chairman of Advance Agro Plc., Chairman of Siam Food Product Plc. and Independent Director of True Corporation Plc. He holds an Honorary Master of Economics from Thammasat University.

45

Mr. Komen Tantiwiwatthanaphan Vice Chairman / 3rd Executive Vice Chairman

Mr. Komen Tantiwiwatthanaphan was appointed Vice Chairman of the Board of Directors and Vice President in 2003. He has had over 40 years’ experience in managing companies in the distilling industry. He has served as President of Sahasan (2529) Co., Ltd., since 1986, and as Director and Senior Vice President of Suramaharas Plc. from 1986 to 1999. He holds a High School Certificate. Mr. Puchchong Chandhanakij Director / 4th Executive Vice Chairman*

Mr. Puchchong Chandhanakij was appointed a Director and Executive Vice Chairman in 2003. Before joining ThaiBev, he had been Managing Director of LSPV Co., Ltd., from 1988 to 2003; he was Executive Director (Finance) of the T.C.C. group of companies from 1983 to 1988; the Director of Administration of Robina Credit Ltd. from 1980 to 1982; and Vice President of Asia Credit Ltd., from 1975 to 1979. He holds a Bachelor of Business Administration and a Master of Science in Accounting from California State University, Long Beach. Mr. Staporn Kavitanon Independent Director and Audit Committee Chairman

Mr. Staporn Kavitanon was appointed a Director in 2004. He has extensive experience in the management of companies with directorship and membership of Committees at various companies, such as Bangkok Bank Berhad, Amata Corporation Plc., Kanyong Electric Plc. and Berli Jucker Plc. From 1994 to 1999, he was the Vice Chairman of Bangkok Bank Plc. He holds a Bachelor of Arts in Economics from Thammasat University and a Master of Arts in Economics from Vanderbilt University. Prof. Kanung Luchai Independent Director and Audit Committee Member

Prof. Kanung Luchai was appointed an Independent Director in 2005. He has wide-ranging experience in the public sector and legal business, having worked as Junior and Senior Public Prosecutor in the Department of Public Prosecution from 1946 to 1971; Director-General of the Policy and Planning Department of the Ministry of Interior from 1971 to 1973. He served as the Deputy Under-Secretary of State for the Ministry of Interior from 1973 to 1974 and as the Deputy Minister of Interior from 1974 to 1975. He practised law at Bangkok International Law Offices Co., Ltd., from 1976 to 1985, and at Kanung-Prok Law Office Co., Ltd., from 1986 to 1992. He is currently a Director of Kanung & Partners Law Offices Company Limited and a Director of Kanung & Partners International Consultancy Company Limited. He is also a Director of Thailand Iron Works Plc. and Bangkok Bank Plc. In 2001, he received the Prof. Sanya Thammasak Award for being an Outstanding Lawyer from the Private Sector. He holds a Bachelor of Law from Thammasat University, and a Bachelor of Arts and Bachelor of Law from the University of Cambridge. He is also a member of the Thai Bar Association. * Effective from March 1, 2007

46

Mr. Manu Leopairote Independent Director and Audit Committee Member

Mr. Manu Leopairote was appointed an Independent Director in 2004. He has extensive experience in the public sector, having served as a Director, Secretary General, Inspector and Director General from 1968 to 1999, and as the Permanent Secretary at the Ministry of Industry from 1999 to 2004. He was also the Chairman of the Petroleum Authority of Thailand from 1999 to 2004. From 1994 to 2004, he was the Chairman of Technonet Asia, and from 1995 to 1996, the Chairman of the International Sugar Organization Council of England. He was also part-time lecturer at the Faculty of Economics, Thammasat University, Assumption University, and Bangkok University. He was the President of the Thammasat University Association from 2002 to 2004 and is the President of the Thammasat University Economics Association. He holds a Bachelor of Economics (Honors) from Thammasat University and a Master of Science in Economics from the University of Kentucky. He won the Asian Productivity Organization Award in 2005. Mr. Ng Tat Pun Independent Director and Audit Committee Member

Mr. Ng Tat Pun was appointed as an Independent Director in 2006. He has extensive experience in the banking and finance industry. He is a Senior Advisor to UBS AG, Singapore, and before his appointment in 2005, was a Managing Director of UBS AG, Singapore, from 2003 to 2005. He started his banking career at Citibank NA, Singapore, in 1971 and was a Vice President when he left in 1982. Since then, he has served in various senior positions with local and foreign financial institutions. From 1988 to 1997, he was the Executive Vice President of OCBC Bank, in charge of its International Banking and Financial Institutions business. In 1998, he was appointed the Executive Director and Chief Executive Officer of OCBC Bank Malaysia. From 1999 to 2002, he was a Managing Director at JP Morgan Chase. He is also an Independent Director of Engro Corporation Limited and SP Chemicals Ltd. He holds a Bachelor of Arts (Economics and History) from the University of Singapore. Mr. Michael Lau Hwai Keong Independent Director

Mr. Michael Lau Hwai Keong was appointed as an Independent Director in 2006. He is a Managing Director, Advisory Services of Octagon Advisors Pte. Ltd., a business and risk management consultancy company. From June 2000 to September 2004, he served as the Executive Vice President of United Overseas Bank Ltd., where he was responsible for the administration and governance of the bank’s international operations. He was an Advisor to Asia Pulp and Paper Ltd. from February 1999 to May 2000. He has held various positions at the Monetary Authority of Singapore (MAS) from February 1985 to July 1989, and from April 1991 to August 1997. His last position at the MAS was Senior Deputy Director (Development and Domestic Institutions). From August 1989 to March 1991, he was a Senior Manager (Institutional Sales) at J M Sassoon & Company, a stock broking company. He was also the Executive Vice President of the Central Depository (Pte.) Limited (CDP) from November 1997 to February 1999. He holds a Bachelor of Business Administration (First Class Honors) from the National University of Singapore and the Chartered Financial Analyst (CFA) charter.

47

Gen. Dr. Choo-Chat Khumbhu Na Ayudhya

Independent Director

Gen. Dr. Choo-Chat Khumbhu Na Ayudhya was appointed Independent Director in 2006. He served the Royal Thai Army

from 1973 to 1987 as General Surgeon of the Medical Department. From 1987 to 1991, he was Chairman of the

Department of Anatomy of the Phra Mongkut College of Medicine. From 1994 to 2004, he held various positions in the

Royal Thai Army, including the Director-General of the Armed Forces Research Institute of Medical Service; an Assistant

Surgeon-General; Deputy Surgeon-General; Surgeon-General; and General Special Army Expert and Consultant. He is a

senior surgeon and physician at the Medical Bureau to the Royal Court of Thailand. He received his Diploma in Medicine

from Westf. Wilhelms Universitat zu Munster, and Doctorate in Medicine from the Georg-August Universitat zu

Goettingen. He also has a Diploma from the National Defense College of Thailand and a Certificate of Proficiency in

General Surgery from the Royal College of Surgeons of Thailand. He is a permanent member of the Royal College of

Surgeons of Thailand and the Medical Association of Thailand. As for royal decorations, he has won the Knight Grand

Commander (Special Class, Higher Grade) of the Most Illustrious Order of Chula Chom Klao and Knight Grand Cordon

(Special Class) of the Most Exalted Order of the White Elephant.

Prof. Pornchai Matangkasombut


Prof. Pornchai Matangkasombut was appointed as an Independent Director in 2006. He is the President of the Mahidol

University and, before his appointment in 1999, was a professor at the University. He has been a member of the

International Union of Immunological Societies since 1971 and a Member of the Executive Board of the International

Union of Microbiological Societies from 1986 to 1990. He has won the highest level of Royal Decorations (Knight Grand

Cordon of White Elephant, Special Class and Knight Grand Cordon of the Crown of Thailand, Special Class) and the Royal

Thai Award of Chula Chom Klao Order (Special Third Class) and the Palmes Academiques (Commandeur) from the

Government of France, the Borden Research Award in Medicine. He was also an Honorary Research Associate at

Harvard University and a Visiting Professor at Osaka University and the University of Saigon. He holds a Bachelor of

Arts degree and M.D. and Ph.D. from the University of Wisconsin.

48

Mr. Sakthip Krairiksh


Mr. Sakthip Krairiksh was appointed an Independent Director in 2005. He has extensive experience in the public sector,

having worked in Thai ministries. He began his career as a civil servant in 1971 at the Ministry of Interior. From 1979 to

2004, he served as a Diplomat in the Ministry of Foreign Affairs, where he held various positions, including Secretary to

the Minister; Deputy Chief of Mission of the Embassy in Washington, USA; Director-General, Protocol Department;

Spokesman; and Ambassador to the Kingdom of Cambodia, Japan and the United States. He was an Advisor to the

Prime Minister in 2004 and currently is Permanent Secretary, Ministry of Tourism and Sports.

He holds a Bachelor of Political Science from Boston University and has attended the National Defense College. He has

received various royal Thai and foreign decorations, such as the Knight Grand Cordon (Special Class) of the Most Noble

Order of the Crown of Thailand, the Knight Grand Cordon (Special Class) of the Most Exalted Order of the White

Elephant, the Grand Companion (Second Class, lower grade) of the Most Illustrious Order of Chula Chom Klao, the Order

of the Sacred Treasure, Gold and Silver Star and the Grand Cordon of the Order of the Rising Sun.

Mr. Vivat Tejapaibul

Director

Mr. Vivat Tejapaibul was appointed a Director in 2003. He has over 18 years’ experience in the banking industry, having

served in Bangkok Metropolitan Bank Plc. in various positions from 1979 to 1998, including Secretary to the Managing

Director, Deputy Director of the Trading Department, Director of Branch Administrative and Vice President. He holds a

Bachelor of Law from Thammasat University and a Master’s degree from Fairleigh Dickinson University, USA.

Mr. Panote Sirivadhanabhakdi

Director

Mr. Panot Sirivadhanabhakdi was appointed Director in February 2007. He has been Director of Beer thai (1991) Public

Company Limited since 2000 and Director of Beer Thip Brewery (1991) Co., Ltd since 2004 and Director of Sura Bangyikhan

Group. He holds a Bachelor of Science in Manufacturing Engineering from Boston University and a Master of Science in

Analysis, Design and Management of information System from the London school of Economics and Political Science.

49

Mr. Samut Hatthasing

President

Mr. Samut Hatthasing has been the Director and President of Thai Beverage PLC. since February 2004. He joined the

Group in 1986 and has held various marketing positions. He was also a Trading Manager of Suramaharas Plc. from 1986

to 1999. He was a Director and Executive Vice President of the Sura Bangyikhan Group of companies from 2000 to

2003. In 1980, he was formerly a Provincial Manager of the Surathip Group of companies and later Marketing Manager

of Surathip Co., Ltd. from 1981 to 1985. He was a Senior Manager of PTI Co., Ltd., in 1979 and a Supervisor in the

Agricultural Credit Division of Thai Military Bank from 1977 to 1978. From 1967 to 1976, he served as an Assistant

Branch Manager of the Bank of Agriculture and Agricultural Cooperatives. He holds a Bachelor of Economics from

Thammasat University and has completed the Director Accreditation Program with the Thai Institute of Directors.

Ms. Kanoknart Rangsithienchai

Director and Executive Vice President

Ms. Kanoknart Rangsithienchai was appointed as a Director and Executive Vice President in 2003. She has extensive

experience in finance and accounting. Before joining the Company, she had been the Executive Vice President of the

Sangsom Group of companies from 2000 to 2003, and the Vice President of the Office of Controller, Surathip Group of

companies from 1983 to 1999. From 1975 to 1982, she served as the Accounting Manager of the T.C.C. Group of

companies and as an accountant at J&JHO Co., Ltd., from 1970 to 1975. She holds a Bachelor of Accounting from

Thammasat University and has completed the Director Accreditation Program with the Thai Institute of Directors.

Mr. Thapana Sirivadhanabhakdi

Director and Executive Vice President

Mr. Thapana Sirivadhanabhakdi was appointed a Director in 2003. He has been Vice Chairman of Red Bull Distillery

(1998) Co., Ltd., since 2004, and Vice Chairman of Oishi Group Plc. since 2005. A member of the Executive Board of

Berli Jucker Plc. since 2001, he holds a Bachelor of Business Administration in Finance and a Master of Science

Administration in Finance Economics from Boston University, USA.

50

Mr. Sithichai Chaikriangkrai Director and Senior Vice President

Mr. Sithichai Chaikriangkrai was appointed a Director and Senior Vice President in 2003. He joined the T.C.C. Group in year 1990 and has also been the Chairman of Group Financial Center since 2003. He has over 23 years’ experience in financial positions, including the Finance and Accounting Manager of Asia Voyages & Pansea Hotel Co., Ltd., from 1983 to 1990; as a Financial Analyst of Goodyear (Thailand) Co., Ltd., from 1980 to 1983; and as an External Auditor in Coopers & Lybrand from 1977 to 1980. He holds a Bachelor of Accountancy (First Class Honors) from Thammasat University, and has a Diploma in Computer Management from Chulalongkorn University and completed the Director Certification Program with the Thai Institute of Directors. He also has a mini M.B.A. in Leadership Management from Kasetsart University. Mr. Ueychai Tantha-Obhas Director and Senior Vice President

Mr. Ueychai Tantha-obhas has been a Director since September 2005. Before joining ThaiBev, he was the Chief Executive Officer, from July 1995 to December 2002, and Managing Director of Riche Monde (Bangkok) Ltd., from January 1988 to February 1994; the Managing Director of Sarin Property Co., Ltd., from March 1994 to June 1995; the Managing Director of Riche Monde (Thailand) Ltd., from July 1983 to December 1987; and the Group Product Manager of Colgate Palmolive Co., Ltd., from September 1979 to June 1983. From May 1973 to August 1979, he held various sales and marketing positions in Karnasuta General Assembly Co., Ltd. He holds a Bachelor of Science in Accounting from St. Louis University, a Master of Business Administration from Thammasat University and is certified to have completed the Advanced Management Program from INSEAD, France. Dr. Pisanu Vichiensanth Director and Senior Vice President

Dr. Pisanu Vichiensanth has been a Director and Senior Vice President since February 2004. He has held several positions in ThaiBev, including Executive Vice President from 2000 to 2003 and Senior Vice Executive President from 2003 to 2004, at subsidiary Beer Thai (1991) PLC. He is the President of Beer Thai (1991) PLC. Before joining ThaiBev, he had been the Vice President of Engineering and Development (1997-2000) and Assistant Plant Executive (1994-1996) of Carlsberg Brewery (Thailand) Co., Ltd. He was a consultant at Pan Engineering Consultant Co., Ltd., from 1992 to 1994. From 1977 to 1993, he held several teaching positions, including Head of Food Science and Technology at Thammasat University and Head of Food Technology at Khon Kaen University from 1992 to 1993, and from 1989 to 1992, respectively. He lectured in food technology at Khon Kaen University from 1977 to 1990. He holds a Ph.D. in Engineering from Technical University, Berlin; a Master of Technology (Second Class Honors) in Biotechnology from Massey University; and a Bachelor of Science (Food Science) from Kasetsart University.

51

Mr. Chukiet Tangpongprush Director and Senior Vice President

Mr. Chukiet Tangpongprush was appointed as a Director and Senior Vice President of ThaiBev in 2003. Before joining, he ran his own law firm from 1963 to 1983. From 1983 to 1986, he served first as Legal Manager and later as Executive Director of Surathip Sansukko Co., Ltd. From 1987 to 1999, he served first as Executive Director and later as the head of the General Affairs Department of Suramaharas Plc. He joined Surabangyikhan Co., Ltd., in 2000 as the head of the Human Administration and General Affairs. He holds a Bachelor of Law from Thammasat University and the Thai Barrister at Law from the Institute of Legal Education Barrister at Law, and has completed the Director Accreditation Program with the Thai Institute of Directors. He is also a member of the Thai Bar and of the Lawyers Council of Thailand. Mr. Sawat Sopa Executive Vice President

Mr. Sawat Sopa was appointed Executive Vice President in 2004, responsible for liquor production and technique. He was the Managing Director of Beer Thai (1991) PLC. and Executive Vice Chairman of Red Bull Distillery (1988) Co., Ltd., from 1992 to 1995, and from 1995 to 2004, respectively. From 1980 to 1992, he served as an Executive Director of the 43 Group of companies and Assistant Chief Executive Director, responsible for liquor and alcohol production. From 1964 to 1975, he served first as an engineer and later as the Chief Engineer of Siam Chem Co., Ltd. From 1963 to 1964, he served as an engineer in Bangchak Oil Refinery. Mr. Sawat sits on the Boards of Directors of various organizations including the Thab Neelaniti Foundation, Chulalongkorn University Association and the Petroleum & Petrochemical College, Chulalongkorn University. He has also been appointed as Special Commissioner of the Secretariat of the House of Representatives to consider draft bills on workmen’s protection, the securities and stock market and excise tax; a specialist to the Committee of the House Standing Committee on Natural Resources and Environment; and a member of the Financial Committee and Subcommittee of the Ethanol Investment Project under the Royal Ethanol Project Bureau, Ministry of Science, Technology and Environment. He holds a Bachelor degree of Science in Chemical Engineering and has completed the Director Accreditation Program with the Thai Institute of Directors. He is a Member (Fifth Class) of the Most Exalted Order of the White Elephant and a Companion (Fourth Class) of the Most Noble Order of the Crown of Thailand. Mr. Saikeaw Vongpisethkul Senior Vice President

Mr. Saikeaw Vongpisethkul was appointed Senior Vice President in 2006. He has over 39 years’ experience in management as Vice President of Thai Pure Drink Co., Ltd., from 1967 to 2006. He was also an Advisor of the Association for Overseas Technical Scholarships from 1991 to 1993. He has served the Federation of Thai Industries as Logistics Committee Member and Environmental Committee Member since 1981. He holds a Bachelor of Engineering (Honors) from Chulalongkorn University.

52

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Organization Structure Annual Report 2006 - Thai Beverage Public Company Limited

53

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

54

Responsibility and authorization of each Office

Office of Chairman of the Executive Board

Office of Internal Audit

Office of Technical Service & Environment

Office of Engineer

Office of Natural Essences Production

Office of Liquor Production

Name List Responsibilities

Manages and screens items to be proposed to the Chairman of the Executive Board and manages general tasks for the Chairman of the Executive Board. Assists the Board in promoting good corporate governance; reports to the Audit Committee significant issues of risk management, internal controls and governance; provides advisory services and the resolution of issues concerning internal controls; and promotes risk management to all units’ operations. Formulates liquor production processes and controls liquor production at 17 distilleries to meet the requirements of each type as well as the standards of the Thai Industrial Standards Institute. This includes formulation of environmental management systems and controlling water treatment systems. Oversees the engineering section to support the distilleries and the Company’s affiliates to align with goals for the utmost benefit to the Group. Oversees concentrate production to meet specifications and demand. Manages and oversees operations of the three liquor groups in compliance with the goals and policies of Thai Beverage PLC., including the promotion of the development of production and personnel skills for the sustainable benefit of the Company.

55

Office of General Affairs

Office of Corporate Planning &

Business Development

Office of Marketing


Oversees administrative works for both the Company and its

affiliates, such as cleaning services and maintenance of office

buildings, supply of office equipment and stationery, security

systems and insurance for the assets. Ensures that the work

complies with Company policies and regulations to efficiently

support the major business and activities of the Group.

Sets the annual budget framework for the Group; monitors and

analyzes operating results as a whole to ensure compliance with

the Group’s goals;

Supports all units’ operations to achieve their goals;

Plans and develops business procedures to improve overall

management effectiveness;

Investigates and researches market trends and business

developments, including reporting the effects of domestic and

international business changes on the core business.

Creates marketing, sales, advertising, public relations, product

development and merchandise distribution plans in support of Group

activities. Manages budgets, arranges and controls the total product

distribution in compliance with goals. Analyzes and formulates

marketing strategies in line with market competition.

56


Oversees external affairs. Directly and indirectly creates positive

relationships with business partners, leading to commercial

opportunities and supporting negotiations and business connections

over the short and long terms.

Supervises and is responsible for corporate communications, public

relations, internal and external communications and electronic

communications in compliance with Company policies, rules and

regulations, to efficiently support its business and activities.

Manages and oversees the production of the three beer companies

in compliance with the goals and policies of Thai Beverage PLC.,

including the promotion of the development of production and

personnel skills for the sustainable benefit of the Group.

Supervises and oversees support for accounting practices and

budgetary matters to ensure technical and legal compliance of

operations, as well as compliance with the procedures set forth

by the Board of Directors.

Supervises and oversees support for treasury affairs to ensure

technical and legal compliance of operations, as well as compliance

with the procedures set forth by the Board of Directors.

Office of External Affairs

Office of Corporate Communications

Office of Beer Production

Office of Controller

Office of Treasury

57


Responsible for information technology (IT) services, including development of advanced IT systems so that business units can access information and tools to enhance the Company’s competitiveness. Institutes international-standard human resources procedures that are capable of coordinating between the headquarters and regional offices-taking into account the value of human resources, commitment to ethics, and compliance with laws. Arranges all Board meetings of the Company, its affiliates and subsidiaries, and controls disclosure of material information to ensure compliance with laws, regulations and Listing Manual, as well as Company policy. Provides suitable advice to all directors and key executives. Administers corporate information and analyzes laws relating to Company business. Analyzes and advises all units of the Company on legal issues to ensure full compliance with the law and for the best interests of the Company. Monitors and analyzes environmental changes in the Thai market, relating to economic, social, regulatory and consumer behavioral changes to enable the Company to adjust product image or launch new brands to suit such changes and meet the Company’s goals.

Office of Information Technology

Office of Human Resources

Office of Corporate Secretariat

Office of Legal Affairs

Office of Research & Development

58

Product Portfolio Annual Report 2006 - Thai Beverage Public Company Limited

��

��

�

��

��

��

��

��

�

��

�

��

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��

��

��

�

��

�

��

��

�

59

��

��

�

��

��

��

��

��

�

��

�

��

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��

��

��

�

��

�

��

��

�

60

Operating and Financial Review Annual Report 2006 - Thai Beverage Public Company Limited

Contents

1 Overview

2 Vision & Mission

3 Business in Thailand

4 Overseas Business

5 Management Discussion and Analysis

6 Shareholder Returns

7 Risk Factors

Overview

Thai Beverage Public Company Limited (“ThaiBev”) was incorporated in October 2003 in an effort to consolidate

Thailand’s leading beer and spirits businesses owned by our Principal Shareholders and their business associates under a

single holding company. The Company was subsequently listed on the Singapore Exchange (“SGX”) on May 30, 2006.

Our Initial Public Offering was a great success and was awarded “Thailand Capital Market Deals 2006” by IFR Asia in

February 2007.

ThaiBev is majority owned by our Principal Shareholders, Mr. Charoen Sirivadhanabhakdi and family, which owns

approximately 63% of ThaiBev’s paid-up share capital. The rest of the shares are held by private groups of shareholders

and is in public hands.

We are the leading producer and distributor of beer and spirits in Thailand by sales and production volume and one of the

largest brewers and distillers in Southeast Asia. We currently generate substantially all of our revenue from sales of our

products in Thailand.

In addition to Thailand, it is also our vision to expand internationally. In 2006, our wholly-owned subsidiary in Hong Kong,

International Beverage Holdings Limited (“IBHL”), acquired Inver House Distillers Limited, a UK-based company which

owns five Scotch whisky distilleries in Scotland. IBHL is also taking the lead in our regional expansion by setting up

distribution companies outside Thailand.

Today, ThaiBev is Thailand’s largest private company listed on the SGX with market capitalization of S$6.8 billion (US$4.4

billion) as at 29 December 2006, and offers investors a unique opportunity to invest in Thailand consumer business with

significant growth potential regionally.

61

Corporate Vision

“To be the leader in beer and spirits

businesses in Thailand and expand internationally

with a focus on Asian markets”

Mission

Deliver highest quality products to our consumers

We will provide products of superior quality and value that satisfy and exceed our consumers’ expectation.

Maintain our market dominance and expand into new growth areas

We will maintain our market leadership, which has given us solid business fundamentals over the years. Simultaneously,

we will leverage our expertise, passion, and competitive strength to expand into new growth areas and deliver superior

returns to our shareholders.

Capitalize on innovations to reduce waste and increase efficiency

We will continue to invest in new technology and infrastructure to further improve the production and distribution of our

products and reduce costs.

Utmost care for society and environment

We believe in sustainable growth as a good corporate citizen, and will devote a significant amount of our time and effort

into corporate social responsibility initiatives to ensure the highest level of environmental and safety standards in the

communities in which we operate.

Provide excellent career opportunities and security for our employees

Our people are the key drivers of our success. We will invest in our human capital through training and succession

planning for all employees.

Business in Thailand

Despite an increasingly competitive market, we continue to be the leading producer of beer and spirits in Thailand.

In line with our strategy to maintain our market leadership position in the beer and spirits markets, we invest a significant

amount of our time and energy to further strengthen our brands and enhance product loyalty with end consumers.

62

As a good corporate citizen, we achieve these positive results while remaining in full-compliance with the Government’s

responsible-drinking initiatives and regulations at all times.

Beer Business

2006 was an exciting year for our beer business. In particular, we saw a successful recovery in our beer sales volume for

the first time since 2003. In 2006, our total beer sales volume grew 12% to 9.2 MHL from 8.2 MHL in 2005.

We successfully launched two new beers, namely “Chang Light” and “Chang Draught”, to meet the rapidly growing

consumer demand for light beer. Chang Light, launched in March 2006 was launched to penetrate the standard segment

of the beer market while Chang Draught offers a lighter alternative to our classic “Chang Beer” in the mainstream segment.

In response to a growing consumer preference for lighter beer, we also continued our brand building of Archa beer, a

light beer first introduced to the market in July 2004. In 2006, Archa emerged as one of the fastest growing brands in our

beer portfolio, with total sales of over 0.8 MHL, accounting for approximately 9.2% in volume terms of our total beer output.

In the effort to maintain our market leadership and to ensure continuity of supply of our beer to meet the growing Thai

beer market in the years to come, we commissioned the expansion of our Kamphaengphet brewery by adding additional

4.6 MHL to our production capacity in 2004. In October 2006, we successfully started “test-on-production” of the new

machinery. Today, the new 4.6 MHL production line has been completed bringing our total production capacity to 15.5

MHL. Final commissioning of the project is expected to commence in October 2007, after the final calibrations phase are

completed to meet ThaiBev’s high quality standards.

Spirits Business

2006 was a challenging year for spirits in many ways. The major increase in excise tax on brown spirits in September

63

2005 forced all producers to pass the price increase

on to consumers. Our flagship brown spirits brand,

Sangsom, saw a 48% decrease in sales volume in

2006 compared to that in 2005. A prolonged rainy

season resulted in a nationwide flood affecting 49

provinces across Thailand, particularly in rural areas,

and this weakened our white spirits sales in 2006.

In addition, increased efforts by the government on

anti-drinking campaigns during Buddhist Lent also

had a dampening effect on our sales in the third

quarter of 2006.

Nevertheless, we embraced the challenge and

continued to invest in the quality of our products

and our brands to maintain our leadership position in

the market. As the leading producer of quality Thai

spirits for many decades, we always put consumers

first and consistently aim to produce and deliver the

highest quality products to the market.

We relaunched “Hong Thong”, a popular Thai

brown spirits brand, in April 2006. Hong Thong is a

quality Thai spirit blended to the exact high

standards and recipe once enjoyed by many loyal consumers. The launch was a great success. Since

63

Today, ThaiBev is Thailand’s largest private company listed on the SGX with market capitalization of

S$6.8 billion (US$4.4 billion) as at 29 December 2006, and offers investors a unique opportunity to invest in Thailand consumer business

64

its launch in April 2006, Hong Thong sales volume has already reached 1.6 million cases. A unique combination of strong brand, superior product quality, improved packaging, and affordable pricing strategically positions Hong Thong well to meet domestic demand. In addition, we launched a new brand of brown spirits, “Blend 285”, in October 2006. Blend 285 offers consumer superior quality products at affordable price. The product features premium clues such as individual gift box, non-refillable cap (“NRF”), and westernized packaging design. The product is rapidly gaining popularity and sold 184 thousand cases in just two months after initial launch, a success which clearly demonstrates the strength of our distribution platform which enables new products to gain deep market penetration over a short period. We continue to invest in our distilleries to ensure that our production facilities are at their best. In October 2006, we, through our wholly-owned subsidiary Sura Piset Thiparat, further expanded our production platform and acquired new distillery assets from Sin Surang Karn Sura Co., Ltd., a Thai distillery company engaged in the production of white spirits under the “White Tiger” brand. The distillery, which uses Swedish equipment, is of high-quality and capable of producing both white and brown spirits. The distillery’s strategic location in Kanchanaburi Province, will enable ThaiBev to expand our current brown spirits’ production base in Bangkok to a new geographic region in which our products are gaining popularity. The distillery uses coal for energy, which enables ThaiBev to diversify our production energy sources away from fuel oil, which is becoming increasingly more expensive. The relentless pursuit of perfection in the quality of our products is well reflected in the industry-wide recognition we have received. In addition to winning Gold Medals at the Spain International Quality to Alcohol Beverage in 1982 and 1983, Sangsom, our flagship brown spirit, recently won the Golden Award at the 25th International Golden Award Food & Beverage 2006 event held in Barcelona, Spain on 6 March 2006 Industrial Alcohol Business We acquired our industrial alcohol plant in 2002 to create further integration in our alcohol business. We plan to increase our exports of industrial alcohol products to key markets such as Japan, India and the Philippines. Since September 2004, we have produced ethanol to make gasohol fuel as a substitute for 95 octane gasoline. We have increased our capacity of ethanol production to meet the expected demand for gasohol and capitalize on the Government’s policy on clean energy. In 2006, our sales volume of ethanol was 46.6 million liters compared to 20.8 million liters in 2005. However, our overall sales volume of industrial alcohol in 2006 is slightly less than that of 2005 due to a temporary production halt as a result of unfavorable product margins in the first quarter of 2006.

65

Related Business

As a responsible corporate citizen, we are committed to the environment and energy conservation. We convert a portion

of the waste products from our breweries and distilleries into commercial products available for sale, including animal

feed, bricks and bio-fertilizers. We sell these products in Thailand and abroad. Our by-product business has reduced the

annual amount of pure waste, our breweries and distilleries have to treat and dispose, which correlates to a cost saving

on treatment and disposal expenses. In addition, the reduction of pure waste reduces the impact of our business on the

environment.

In 2006, we continued to invest in our glass bottle recycle terminal project, pursuant to which we completed four terminals

in 2004 and 2005, and have three additional terminals scheduled for completion in 2007. The terminals will help increase

our efficiency in recycling used glass bottles for beer and white spirits which result in a reduction of packaging costs and

helps save the environment.

Our extensive distribution network is critical to our success. Although we believe our distribution network is one of the

most established and far-reaching networks in Thailand, we see significant opportunities to further improve our Group’s

distribution and production platform. As our distribution and production subsidiaries have been under the same holding

company since October 2003, we believe we can realize significant cost savings from closer integration between these

two business areas. Since the formation of ThaiBev, we have centralized certain group services including procurement,

marketing and logistics in order to realize cost savings. We are exploring ways to capture additional cost savings in

inventory management and logistics by increasing product handling efficiency and optimizing truck deliveries. In January

2007, we changed the name of our transport company, Sahatipkarnkonsong Co., Ltd., into Thai Beverage Logistics

Co., Ltd. to take on full responsibility for the development of and investment in the logistics system and infrastructure

for ThaiBev going forward.

Overseas Business

International Beverage Holdings Limited (“IBHL”) is 100% owned by ThaiBev and oversees our businesses outside

Thailand. It is incorporated in Hong Kong and presently has subsidiaries in six countries:

1. InterBev (Singapore) Limited

2. InterBev Malaysia Sdn. Bhd.

3. InterBev (Cambodia)

4. International Beverage Holdings Limited USA, Inc.

66

5. Pacific Spirits (UK) and subsidiaries including Inver House Distillers Limited

6. Best Spirits Company Limited

IBHL is responsible for ThaiBev’s international business. It is engaged in activities such as the production, marketing and

distribution of alcoholic beverages including ThaiBev products, Scotch whisky and Chinese wines. IBHL’s vision is to be

dominant in ASEAN with a presence in China and a reach to international markets.

In 2006, IBHL commenced its trading operations in Singapore, Malaysia and Cambodia. The company also established

offices in the USA and UK to sell ThaiBev products. On 31 Oct 06, IBHL acquired Best Spirits Company Limited, an

existing trading operation in Hong Kong distributing Chang beer and Chinese wine. At the same time, it acquired the

Pacific Spirits (UK) group of companies including Inver House Distillers Limited.

Inver House Distillers Limited is a leading firm of Scotch whisky distillers, headquartered in Central Scotland, exporting to

over 80 countries worldwide. While the company’s principal business is the distillation and sale of Scotch whisky, the

company also produces a range of white spirits and cream liqueurs.

Inver House Distillers Limited owns five malt distilleries and markets a number of multi-award winning Single malt Scotch

Whiskies: Old Pulteney, Balblair, anCnoc and Speyburn. It also markets a number of Blended Scotch Whisky brands

including: Hankey Bannister, Inver House Green Plaid, Catto’s and McArthur’s.

Looking forward to 2007, the company will focus on integrating its recent acquisitions with its current operations and

establishing routes to markets for the Group’s products internationally. The company will also be seeking suitable

acquisition opportunities which could enhance its growing business in the markets where it operates.

Management Discussion and Analysis

The Company has completed the acquisition of Pacific Spirits (UK) Limited, a holding company which owns and operates

five distilleries in Scotland and Best Spirits Company Limited, which engages in the distribution of Chang Beer and

third-party Chinese wines in Hong Kong at end of October 2006. The consolidated financial statements for the year

ended 31 December 2005 has been restated to include the assets, liabilities, and operations of both acquired companies

to be the same as for the year ended 31 December 2006 for comparison.

67

Group

For the year ended 31 December 2006, total sales revenue of the Company was Baht 97,798 million, increased 3.1%

or Baht 2,895 million from Baht 94,903 million in the previous year, mainly due to higher sales revenue from our beer/

water business of about 10.3%, which compensated for lower sales revenue from the spirits business, which was down

about 2.6%.

Gross profit was Baht 28,473 million, a decrease of Baht 1,242 million or 4.2% mainly due to the decrease in the sales

revenue from the spirits business and the higher cost of molasses, while the gross profit margin of our beer/water

business was slightly higher.The higher cost of molasses was caused by dry weather in 2005, which caused the

sugarcane crop, from which molasses is made, to drop considerably in 2006 and led to higher prices. Heavy rainfall in

2006 should reverse this situation somewhat in 2007.

Earnings before interest, tax, depreciation and amortization (EBITDA) were Baht 20,598 million, a decrease of Baht 656

million or 3.1% mainly due to the decrease in the spirits business sales volume and gross profit margin while free goods

for sales promotion of beer/water business decreased to 8% of total beer and water sales volume.

Net profit was Baht 10,055 million, down by Baht 282 million or 2.7% mainly due to the reduction of the spirits business

profit while interest expense decreased.

68

Unit: Million Baht

Year 2006

% to % to % to % to % to % to Beer/Water Sales Spirits Sales Alcohol Sales Related Sales Eliminate Sales Total Sales

Sales 46,641 100.0 51,428 100.0 1,205 100.0 7,155 100.0 (8,631) 100.0 97,798 100.0

Cost of sales 35,609 76.3 33,002 64.2 995 82.6 6,365 89.0 (6,646) 77.0 69,325 70.9

Gross profit 11,032 23.7 18,426 35.8 210 17.4 790 11.0 (1,985) 23.0 28,473 29.1

Selling and

administrative

expenses 6,932 14.9 7,170 13.9 177 14.7 454 6.3 (2,049) 23.7 12,684 13.0

Operating profit 4,100 8.8 11,256 21.9 33 2.7 336 4.7 64 (0.7) 15,789 16.1

Other income/

Interest income 68 0.1 124 0.2 4 0.3 52 0.7 (91) 1.1 157 0.2

EBIT 4,168 8.9 11,380 22.1 37 3.1 388 5.4 (27) 0.3 15,946 16.3

Interest expenses 303 0.6 1,187 2.3 51 4.2 31 0.4 (4) 0.0 1,568 1.6

Income tax 1,897 4.1 2,277 4.4 8 0.7 141 2.0 - 4,323 4.4

Net Profit 1,968 4.2 7,916 15.4 (22) (1.8) 216 3.0 (23) 0.3 10,055 10.3

Depreciation 2,027 4.3 2,283 4.4 126 10.5 216 3.0 - - 4,652 4.8

EBITDA 6,195 13.3 13,663 26.6 163 13.5 604 8.4 (27) 0.3 20,598 21.1

Year 2005

% to % to % to % to % to % to Beer/Water Sales Spirits Sales Alcohol Sales Related Sales Eliminate Sales Total Sales

Sales 42,277 100.0 52,811 100.0 869 100.0 6,633 100.0 (7,687) 100.0 94,903 100.0

Cost of sales 32,549 77.0 32,062 60.7 471 54.2 6,068 91.5 (5,962) 77.6 65,188 68.7

Gross profit 9,728 23.0 20,749 39.3 398 45.8 565 8.5 (1,725) 22.4 29,715 31.3

Selling and

administrative

expenses 6,984 16.5 7,343 13.9 166 19.1 462 7.0 (1,774) 23.1 13,181 13.9

Operating profit 2,744 6.5 13,406 25.4 232 26.7 103 1.6 49 (0.6) 16,534 17.4

Other income/

Interest income 175 0.4 128 0.2 13 1.5 26 0.4 (54) 0.7 288 0.3

EBIT 2,919 6.9 13,534 25.6 245 28.2 129 1.9 (5) 0.1 16,822 17.7

Interest expenses 386 0.9 1,264 2.4 42 4.8 51 0.8 (1) 0.0 1,742 1.8

Income tax 1,330 3.1 3,282 6.2 52 6.0 79 1.2 - 4,743 5.0

Net Profit 1,203 2.8 8,988 17.0 151 17.4 (1) (0.0) (4) 0.1 10,337 10.9

Depreciation 1,919 4.5 2,288 4.3 121 13.9 104 1.6 - 4,432 4.7

EBITDA 4,838 11.4 15,822 30.0 366 42.1 233 3.5 (5) 0.1 21,254 22.4

69

Increase (Decrease)

Beer/Water % Spirits % Alcohol % Related % Eliminate % Total %

Sales 4,364 10.3 (1,383) (2.6) 336 38.7 522 7.9 (944) 12.3 2,895 3.1

Cost of sales 3,060 9.4 940 2.9 524 111.3 297 4.9 (684) 11.5 4,137 6.3

Gross profit 1,304 13.4 (2,323) (11.2) (188) (47.2) 225 39.8 (260) 15.1 (1,242) (4.2)

Selling and

administrative

expenses (52) (0.7) (173) (2.4) 11 6.6 (8) (1.7) (275) 15.5 (497) (3.8)

Operating profit 1,356 49.4 (2,150) (16.0) (199) (85.8) 233 226.2 15 30.6 (745) (4.5)

Other income/

Interest income (107) (61.1) (4) (3.1) (9) (69.2) 26 100.0 (37) 68.5 (131) (45.5)

EBIT 1,249 42.8 (2,154) (15.9) (208) (84.9) 259 200.8 (22) 440.0 (876) (5.2)

Interest expenses (83) (21.5) (77) (6.1) 9 21.4 (20) (39.2) (3) 300.0 (174) (10.0)

Income tax 567 42.6 (1,005) (30.6) (44) (84.6) 62 78.5 - (420) (8.9)

Net Profit 765 63.6 (1,072) (11.9) (173) (114.6) 217 (21,700.0) (19) 475.0 (282) (2.7)

Depreciation 108 5.6 (5) (0.2) 5 4.1 112 107.7 - 220 5.0

EBITDA 1,357 28.0 (2,159) (13.6) (203) (55.5) 371 159.2 (22) 440.0 (656) (3.1)

The Beer, Soda & Drinking Water Business

Sales revenue was Baht 46,641 million, an increase of Baht 4,364 million or 10.3% mainly due to the increase of low

alcohol beer sales volumes. Total sales volume of beer rose 12% to 923 million litres which derived from domestic

sales of 916.2 million litres and export sales of 6.8 million litres. Low alcohol beer sales volume was 101.9 million litres,

which increased from 2005 by 90.5 million litres. The sales volume of soda was 12.6 million litres and the sales volume

of drinking water was 42.6 million litres, a decline of 18.7% and 1.4% respectively.

Gross profit of Baht 11,032 million increased by Baht 1,304 million, or 13.4%, mainly due to the increase of sales volume

and lower product costs stemming from sharing fixed costs, through higher production volumes and the lower price for

malt, compensating for the higher cost of fuel oil and electricity.

71

EBITDA of Baht 6,195 million increased by Baht 1,357 million or 28% mainly due to the increase of sales and gross

profit margin and the decrease in the marketing expense for free goods for sales promotion which helped to cover

higher employee expenses, freight and vehicle expenses. The free beer volume for sales promotion as a percentage

of total sales volume decreased from 11.8% on average in 2005 to 8% in 2006.

Net Profit of Baht 1,968 million increased by Baht 765 million or 63.6% mainly due to the increase of sales as mentioned

and the decrease of interest expense caused by the reduction in the Company’s debt when it repaid short-term loans

using the IPO proceeds.

The Spirits Business

Sales revenue was Baht 51,428 million, lower than in 2005 by Baht 1,383 million or 2.6% mainly due to a decrease

in the sales volume of both white and brown spirits. The Company was severely affected in 2006 by the increase on

excise tax on certain types of brown spirits in September 2005. When stock of Sangsom, the Company’s flagship brand,

was depleted at the end of 2005, the price of a bottle rose from Baht 150 to Baht 190 leading to a sharp drop in sales.

Sangsom is over 40% of the entire brown spirit market in Thailand. Although foreign brands were affected to the same

72

extent, the Company will take some time to recover. To overcome this problem, the Company re-launched a brand called

Hong Thong in April 2006. While this has seen remarkable progress, it has still not compensated for the loss of sales of

Sangsom by the end of 2006. However, Sangsom is seeing some recovery. The Company also launched a new brown

spirit called Blend 285 in October 2006. This was well-accepted by consumers and, if current growth continues, it will

become a significant contributor to the recovery of the brown spirits business over time.

Total sales volume of spirits dropped 5.9% to 457.1 million litres which derived from domestic sales of 456.4 million litres

and export sales of 0.7 million litres. White spirits sales volume of 367.5 million litres showed a decrease of 1.3%. Brown

spirits sales volume of 89.6 million litres showed a decrease of 20.7% due to the abovementioned lower demand arising

from the sales price increase that resulted from the increase in excise tax.

Gross profit of Baht 18,426 million decreased by Baht 2,323 million or 11.2%, mainly due to the decrease of sales

volume and the higher price of molasses (a raw material used in the production), fuel oil and electricity. The outlook

for molasses in 2007 is for higher production due to better crops resulting from heavy rainfall in 2006. This should lead

to lower costs to the Company.

EBITDA of Baht 13,663 million decreased by Baht 2,159 million or 13.6%, mainly due to the decrease of sales and gross

profit margin and higher employee expense, freight and vehicle expenses. Free brown spirits’ volume used for sales

73

promotion as a percentage of domestic sales volume of brown spirits increased from 2.1% by average in 2005 to 2.7%

in 2006.

Net Profit of Baht 7,916 million decreased by Baht 1,072 million, or 11.9%, mainly due to the decrease of sales and

gross profit margin as mentioned although the decrease of interest expense.

Industrial Alcohol Business Segment

Sales revenue was Baht 1,205 million reflected an increase of Baht 336 million or 38.7%, mainly due to the increase of

Ethanol sales volume, which helped to partially compensate for the decrease of Alcohol 95 sales volume. Sales volume of

Ethanol was 46.6 million litres, which increased by 124.1% and the average sales price was Baht 24.94 per litre, which

increased by 42.3% over that of 2005. Overall sales volume for all industrial alcohol products in 2006 was 48.3 million

litres, or a 9.3% decrease from 53.2 million litres in 2005.

Gross profit of Baht 210 million decreased by Baht 188 million, or 47.2%, mainly due to high product cost arising from

higher molasses prices and energy costs.

EBITDA of Baht 163 million decreased by Baht 203 million or 55.5% mainly due to the decrease of gross profit margin

and higher administration expenses arising from higher employee expense.

74

Net Loss was Baht 22 million while net profit for 2005 was

Baht 151 million, a change of 114.6% mainly due to the

decrease of gross profit margin as mentioned and the

increase of interest expense.

Related Business Segment

Sales revenue was Baht 7,155 million increased by

Baht 522 million or 7.9% mainly due to income from

commercials during the live broadcast of the FIFA World

Cup 2006 in Q2, other sports marketing activities and

inter-segment supply of raw materials and packaging

materials.

Gross profit of Baht 790 million increased by Baht 225

million, or 39.8%, mainly due to the increase of sales and

effective cost control.

EBITDA of Baht 604 million increased by Baht 371 million

or 159.2% mainly due to the increase of sales and gross

profit margin.

Net Profit was Baht 216 million while net loss for 2005

was Baht 1 million mainly due to the increase of sales

and gross profit margin as mentioned and the decrease

of interest expense.

Financial Position

Assets

Total assets as at end of December 2006 was Baht

85,580 million, a decrease of Baht 1,558 million, or 1.8%,

compared with the end of 2005. Current assets decreased

74

75

by Baht 2,814 million, mainly due to the decrease in cash and cash equivalents, prepaid excise tax, and finished goods.

Non-current assets increased by Baht 1,256 million, mainly due to advance payment of royalties to spirits experts.

Liabilities

Total liabilities as at end of December 2006 was Baht 33,026 million decreased by Baht 22,397 million, or 40.4%, mainly

due to the re-payment of loans from financial institutions with cash received from the May 2006 Initial Public Offering

(IPO) and the July 2006 sale of over-allotment shares.

The maturity of loans and bonds are as follows:

Unit: Million Baht

Within Dec. 31, 2007 12,753

Between Jan. 1, 2008 - Sep. 29, 2008 6,755

Total 19,508

Shareholders’ Equity

Total shareholders’ equity as at the end of December 2006 was Baht 52,554 million, an increase of Baht 20,839 million,

or 65.7%, mainly due to the increase of share capital from the IPO amounting to Baht 3,110 million, and the premium on

common shares after the IPO expense amounting to Baht 17,216 million. Net profit was Baht 10,055 million. Dividend

paid was Baht 8,042 million from profit for the year 2005 and partial for the year 2006.

Liquidity

Cash and cash equivalents as at December 31, 2006, was Baht 1,920 million. The net decrease from the beginning

of the period was Baht 1,478 million. Details of activities are as follows.

Unit: Million Baht

Net cash provided by operating activities 14,172

Net cash used in investing activities (5,383)

Net cash used in financing activities (10,244)

Adjustment from financial statement translation (23)

Net decrease in cash and cash equivalents in period (1,478)

Cash and cash equivalents at beginning of period 3,398

Cash and cash equivalents at end of period 1,920

76

Net cash provided by operating activities of Baht 14,172 million was mainly derived from net income of Baht 10,055

million and adjusted with non cash items, such as depreciation and amortization, of Baht 4,652 million, while working

capital decreased by Baht 98 million and advance payment to experts amounted to Baht 2,000 million.

Net cash used in investing activities of Baht 5,383 million was mainly due to the investment activities in property, plant

and equipment of Baht 4,039 million.

Net cash used in financing activities of Baht 10,244 million was mainly due to a dividend paid of Baht 8,042 million and

the decrease in bank overdrafts and short-term loans from financial institutions of Baht 33,405 million by repayment with

money from the IPO and over-allotment shares of Baht 20,326 million and the increase of long-term loans and bonds by

Baht 11,668 million.

Financial Ratios Dec. 31, 06 Dec. 31, 05

Current Ratio (times) 1.28 0.66 Total Debt to Equity Ratio (times) 0.63 1.75 Net asset value per share (Baht) 2.21 1.44 Total Debt to EBITDA (times) 0.95 1.94 Funds from Operations (FFO) to Total Debt (%) 75.39 35.81

77

Shareholder Returns

Dividends

The current policy of the Board of Directors is to recommend to our shareholders a dividend of not less than 50% of

net profits after deduction of all specified reserve. For the financial year ended 31 December 2006, the Board has

recommended total dividend of Baht 5,524.21 million.

2006 2005

(Restated)

Dividend for the year (Million Baht) 5,524.21 5,280.00

Number of shares issued (Million shares) 25,110 22,000

Interim dividend per share (Baht) 0.11 - Final dividend per share (Baht) 0.11 0.24 Total dividend per share (Baht) 0.22 0.24

Return on Equity Return on Average Equity (%) 23.9% 31.6% Earnings Per Share Earnings Per Weighted Average Ordinary Shares (Baht) 0.42 0.47

78

Risk Factors

ThaiBev has instituted systematic risk management for departments up to the corporate level, with a risk management

committee in place at each level. At the corporate level, the Corporate Risk Management Committee, consisting of

Directors and Senior Management, is responsible for risk management throughout the Company. ThaiBev has defined risk

management as an integral part of planning and operations. To elaborate, each department must formulate annual plans

and budgets, comprehensively addressing their risks. These risks are then collated for the Corporate Risk Management

Committee to define policies and periodically monitor risk management practices.

At the department level, ThaiBev asks department heads to regularly assess risks, identify risk management measures,

and update their work to the respective risk management committees.

In addition, the Office of Internal Audit applies these identified risk factors to their annual audit plans to assess the

efficiency of risk management of each department.

Risks Related to Company Business

1. An increase in taxes or a change in the method in which taxes are calculated may affect the demand for our

products, and could adversely affect our business, financial condition, results of operations and prospects.

We pay excise taxes as well as municipal taxes and health promotion fund contributions on the alcoholic beverages we

produce. Increases in existing taxes or the imposition of new taxes on beer and spirits products could result in higher

79

prices for consumers, which could, in turn, result in lower levels of consumption and, therefore, lower revenue from

sales. We may also have to absorb all or a portion of the impact. Each of these scenarios could adversely affect our

business, financial condition, results of operations and prospects.

2. Our growth prospects may be harmed if we are unable to expand into the premium segments of the beer and

spirits markets.

A key element of our strategy is to broaden our portfolio of brands by launching new brands to penetrate the premium

segments of the market in order to increase our revenues. We believe that the premium market segments in Thailand for

both beer and spirits offer significant growth potential and we believe that there has been a shift from economy segment

beers and spirits to these segments. Expanding our presence into these highly competitive segments will require us to

invest significantly in consumer marketing, brand promotion and sales and distribution development. We have limited

experience in these segments. Any failure or inability on our part to successfully develop, promote and sell new beer or

spirits brands for the standard or premium segments in Thailand would harm our prospects for growth, particularly if

demand for these products increase and continues to erode the demand for our current portfolio of products, and could

adversely affect our business, financial condition, results of operations and prospects.

We expect that the Kamphaengphet brewery expansion project will be completed in October 2007 and that it will

increase our total brewery capacity by 4,600 thousand hectoliters per annum to approximately 15,500 thousand

hectoliters per annum. Our business strategy includes selling beer produced from our capacity increase in export

80

markets, principally in Cambodia, Laos and other markets. We do not, however, have a history of sustained sales of

large volumes outside Thailand and we cannot assure you we will be successful in implementing this strategy.

We cannot assure you that we will be able to sell the additional beer we produce as a result of our expansion project.

Our fixed costs will increase significantly as a result of this expansion and we may not be able to sell our beer products at

prices that will provide us with commercially acceptable margins or that will not cause us to incur a loss. If we are unable

to sell our additional beer capacity on a commercially acceptable basis, we may have to reduce our beer production,

which would adversely affect the utilization of our breweries and may lower our margins. Any failure or inability on our

part to sell the additional beer we produce would adversely affect our business, financial condition, results of operations

and prospects.

3. Price increases in, and shortages of, raw materials or packaging materials could increase our production costs

and disrupt our business.

We do not produce most of the raw materials or the packaging materials necessary for production and sale of our

products and depend upon third-party suppliers. Although we seek to purchase certain of these raw materials once a

year in advance of production, we cannot assure you that these suppliers will be able to meet our requirements in full or

at all. Our results of operations may be affected by the availability and pricing of raw materials and packaging materials,

including molasses, malt, hops, water, glass bottles, labels, caps, and other packaging products. Some of these materials

are priced in currencies other than in Baht. Changes in global supply and demand may substantially affect the price of

these materials and may also, along with weather conditions, government controls, exchange rates, currency controls

and other factors, affect our cost of raw materials and packaging materials. A substantial increase in the prices of these

materials would increase our production costs, which would reduce our profit margins if we were unable to recover these

additional production costs from our consumers. In addition, a sustained interruption in the supply of these materials

could lead to a significant increase in their prices or could impede our production processes if we were unable to find

suitable substitutes. The occurrence of any of these factors could increase our production costs and disrupt our

business, which could have a material adverse effect on our business, financial conditions, results of operations and

prospects.

4. Our operations are subject to extensive regulation. Changes in the regulatory environment may cause us to incur

additional costs or limit our business activities.

As a producer of beverage products, we are subject to production, packaging, quality, labeling and distribution standards

81

in Thailand. We are also subject to regulations in countries to which we export our products, in particular regulations

relating to packaging, quality, labeling and distribution. The operations of our production and distribution facilities are

subject to various Governmental environmental laws and workplace regulations, including laws and regulations enacted

by the Ministry of Public Health, Ministry of Commerce and Ministry of Finance. Compliance with, or any violation of,

current and future laws or regulations could require material expenditures by us or otherwise have a material adverse

effect on our business, financial condition, results of operations and prospects.

We are subject to restrictions on advertising our beer and spirits products. These restrictions could affect our ability to

market our existing and future products, which would have a material adverse effect on our business, financial condition,

results of operations and prospects.

Any future restriction on the period of time an entertainment venue is permitted to operate and sell alcohol products could

have a material adverse effect on our business, financial condition, results of operations and prospects.

5. Compliance with, or our failure to comply with, environmental laws and regulations applicable to us may have a

material adverse effect on our business, financial condition, results of operations and prospects.

We are subject to extensive and increasingly stringent environmental, health and safety laws and regulations governing

air pollutant emissions, discharge of treated wastewater and other aspects of our operations. In addition, some of these

laws and regulations require our production facilities to operate under permits that are subject to renewal or modifications.

Typically, these laws provide for substantial fines and potential criminal sanctions for violations. Violations of these laws

could also result in permit revocations and facility shutdowns. Several of these laws and regulations also impose

extensive requirements relating to investigation and cleanup of contamination, and we may be required to bear some or

all of these costs regardless of fault.

We have incurred, and expect to continue to incur costs to comply with environmental, health and safety laws and

regulations. In addition, new laws and regulations, stricter enforcement of, or changes to, existing laws and regulations,

the discovery of previously unknown contamination or the imposition of new clean-up requirements could require us to

incur additional costs in the future. These may require us to incur material costs and expenses beyond those currently

anticipated. Any of the foregoing factors could materially adversely affect our business, financial condition, results of

operations and prospects.

82

6. Our business and our expansion plans are capital-intensive and subject to a number of risks and uncertainties.

The beer industry is capital-intensive. Our ability to introduce new products and maintain our production capability

depends on continued capital spending, including constructing our new facilities and maintaining and upgrading our

existing facilities. In addition, we continually monitor developments in the beverage markets in Thailand and Southeast

Asia for opportunities to expand into new businesses.

Historically, we have relied on external debt financing, equity financing and internally generated cash flows for our capital

investments. We expect to finance any future expansions of our business or improvements of our breweries and

distilleries plant through additional indebtedness and internally generated cash flows. If we are unable to obtain additional

debt financing when needed on commercially acceptable terms, we may require additional equity financing, which could

dilute your investment in our shares. In addition, our inability to secure necessary financing for capital expenditures

necessary to maintain or expand our facilities could adversely affect our business, financial condition, results of

operations and prospects.

7. We depend on the services of our senior executives and managerial personnel, and if we are not able to retain our

senior personnel or attract suitable replacements, our business could be negative impacted.

We are currently managed by a small number of senior executive officers and employees, many of whom have many

years of experience at our operating companies and in the beverage industry and would be difficult to replace. As a

result, the loss of some senior personnel, or our inability to recruit sufficiently qualified personnel, could materially

adversely affect our business.

We believe that our continued growth and success largely depends on our ability to retain skilled, qualified and experienced

managerial, sales, marketing and production personnel and to train our staff to produce and to sell successfully the

products that we offer. If we are unable to attract, retain and motivate highly skilled, qualified and experienced personnel,

we could lose customers and suffer reduced profitability. Even if we are successful in attracting and retaining such

personnel, competition for such employees may significantly increase our compensation costs and adversely affect our

business, financial condition, results of operations and prospects.

83

8. Anti-monopoly legislation enacted by Thailand in 1999 may adversely affect our business, financial condition,

results of operations and prospects.

The Thai Trade Competition Act of 1999 (‘TCA’) prohibits various anti-competitive practices and empowers the Thai

Trade Competition Commission (‘TTCC’) to order a company that dominates a market to suspend, cease, or vary its

market share. In addition, under the TCA, the TTCC has the power to issue written orders to require a company that has

engaged in unfair business practices to suspend, cease, rectify or vary its business practices. The government is

considering the standard for determining the definition of market dominance in a particular industry, to be approved by

the Cabinet. Because we are the largest beer and spirits producer in Thailand and have a leading market share in

Thailand for many of our products, we may, from time to time, be subject to litigation from competitors and others for

alleged violations of these provisions. Consequently, the TCA and any regulations promulgated under it could have an

adverse effect on our business, financial condition, results of operations and prospects.

In 2006, the Risk Management Committee completed its plan for managing the above-mentioned risks, thereby lowering

risk levels, including the forward purchase of molasses, malt and hops, together with adequate and suitable inventories;

additional measures for managing packaging, glass bottles, labels and caps through collaboration with business partners

in demand-supply management; and the digging of pools and investment in the brewery’s water system – thereby

lowering production costs from those of using ground water, and at the same time, managing the risk of the authority’s

possible ban on the use of ground water as well as preventing shortage of water.

The Risk Management Committee will hold at least four meetings each year to review its measures and approve

contingency budgets for risk management to ensure that all risks are responsibly managed and plans meticulously

implemented – thereby alleviating potential losses.

84

Milestones Annual Report 2006 - Thai Beverage Public Company Limited

��

��

� ��

��

��

��

��

��

85

��

��

� ��

��

��

��

��

��

87

Credit Rating Announcement Annual Report 2006 - Thai Beverage Public Company Limited

In early 2006, the Company had a plan to locally raise funds and engaged TRIS Rating Co., Ltd (“TRIS”) to determine

our domestic credit rating. TRIS initially rated the Company A+ and gave a “Stable” outlook. Later on, the Company

raised funds by offering debentures at the amount of Baht 10,000 million. At the annual review, the Company gained

debentures outstanding at Baht 7,500 million. TRIS, therefore, upgraded the Company and its senior guaranteed

debentures rating of the Company to “AA-” from “A+” and gave the company a “Stable” outlook. The upgrade

reflects the Company’s strengthened capital structure after an initial public offering (IPO) in May 2006. Almost all the

proceeds were used to repay the Company’s outstanding debt at the time.

To gain an international credit rating in order to establish Company’s overseas credit flexibility in the financial markets,

the Company engaged Standard and Poors (“S&P”) and Moody’s Investors Service Pty Limited (“Moody’s”), both

well-recognized globally in their field. S&P assigned a “BBB” rating with a “Stable” outlook, and Moody’s rated the

Company “Baa2” again with a “Stable” outlook.

(Note: The Thailand Country Rating from TRIS is “AAA”, “BBB+” from S&P and “Baa1” by Moody’s).

TR IS upgraded the Company ra t ing f rom A+ to

AA- and gave a

Stable out l ook

88

Awards Annual Report 2006 - Thai Beverage Public Company Limited 88

Thai Beverage PLC. wins the “2006 Merit Award

for transparency among newly-listed companies

(New Issue) on the Singapore Exchange”

The recognition was conferred by the Securities

Investors Association of Singapore (SIAS), established

to monitor companies’ practices to ensure stringent

performance for the maximum benefit of small

investors, as well as for data investigation and research

on all aspects of investment.

SIAS initiated four categories of Investors’ Choice

Awards, namely Corporate Governance, Merit (Most

Transparent Company), Best Finance Journalist, and

Exemplary Shareholder Awards.

Thai Beverage Wins Awards

Onward to the Number One spot with the shares of Thai Beverage PLC. ... the pride of Thai businesses.

8989

IR Magazine accolade for “Best Investor Relations”

In the annual IR Magazine South East Asia Conference

and Awards sponsored by IR Magazine – a leading

publication popularly read by investors in Singapore

and worldwide – Thai Beverage PLC. garnered the

“2006 Best Investor Relations in the Singapore Market

by a Thai Company”.

According to the magazine, Thai Beverage PLC. comes

across as an admirable company listed in Singapore

for its integrity and proper treatment of investors and

shareholders, as well as those showing interest in its

shares, with commendable sincerity.

Acclaim for “Capital Markets Deal of the Year 2006”

Most recently, in February 2007, IFR Asia magazine,

a regional influential capital markets magazine,

recognized Thai Beverage PLC.’s highly successful

initial public offering, pronouncing it the “Thailand

Capital Markets Deal of the Year 2006”. The magazine

noted that it had given the prize to ThaiBev for its having

overcome all challenges and for sheer persistence in

the face of many challenges.

90

Corporate Governance Report Annual Report 2006 - Thai Beverage Public Company Limited

As a newly-listed foreign company on the Singapore Exchange, we value our commitment to good corporate governance

and endeavor to adhere to the principles and guidelines of the Singapore Code of Corporate Governance 2005. In 2006,

we were proud to receive a recognition of our efforts a “2006 Merit Award for transparency among newly-listed

companies (New Issue) on the Singapore Exchange” from the Securities Investors Association of Singapore (SIAS)

and the “Best Investor Relations in the Singapore Market” award at the IR Magazine South East Asia awards. Recently,

we also received the “Thailand Capital Markets Deal of the Year Award” for 2006 from IFR Asia.

The Board’s Conduct of Affairs

Principle 1

Board of Directors

Our Board of Directors oversees the Company’s business and affairs with shareholder approval and by following

applicable laws. The Board must exercise good business judgment and act in good faith for the best interests of the

Company.

The Board met 10 times in 2006, and the following table details directors’ attendance up to December 31, 2006:

Number of

Attendance/

Total of

Name Position Meetings

1. Mr. Charoen Sirivadhanabhakdi Chairman/Executive Chairman [8/10]

2. Khunying Wanna Sirivadhanabhakdi Vice Chairman/1st Executive Vice Chairman [8/10]

3. Mr. Narong Srisa-an Vice Chairman/2nd Executive Vice Chairman [9/10]

4. Mr. Komen Tantiwiwatthanaphan Vice Chairman/3rd Executive Vice Chairman [10/10]

5. Mr. Paisal Chevasiri* Vice Chairman/4th Executive Vice Chairman [9/10]

6. Mr. Puchchong Chandhanakij Director/5th Executive Vice Chairman [10/10]

7. Mr. Staporn Kavitanon Independent Director and Audit Committee Chairman [9/10]

8. Prof. Kanung Luchai Independent Director and Audit Committee Member [10/10]

9. Mr. Manu Leopairote Independent Director and Audit Committee Member [9/10]

* Mr. Paisal Chevasiri resigned from the Board effective from February 26, 2007

91

Number of

Attendance/

Total of

Name Position Meetings

10. Mr. Ng Tat Pun(1) Independent Director and Audit Committee Member [4/10]

11. Mr. Michael Lau Hwai Keong(1) Independent Director [5/10]

12. Prof. Pornchai Matangkasombut(1) Independent Director [4/10]

13. Gen. Dr. Choo-Chat Khumbhu Na Ayudhya(1) Independent Director [3/10]

14. Mr. Sakthip Krairiksh Independent Director [6/10]

15. Mr. Vivat Tejapaibul Director [10/10]

16. Mr. Samut Hatthasing President [10/10]

17. Ms. Kanoknart Rangsithienchai Director and Executive Vice President [10/10]

18. Mr. Thapana Sirivadhanabhakdi Director and Executive Vice President [10/10]

19. Mr. Sithichai Chaikriangkrai Director and Senior Vice President [9/10]

20. Dr. Pisanu Vichiensanth Director and Senior Vice President [9/10]

21. Mr. Ueychai Tantha-Obhas Director and Senior Vice President [9/10]

22. Mr. Chukiet Tangpongprush Director and Senior Vice President [10/10]

Remark (1) Mr. Ng Tat Pun, Mr. Michael Lau Hwai Keong, Prof. Pornchai Matangkasombut and Gen. Dr. Choo-Chat

Khumbhu Na Ayudhya were appointed in March 2006

Matters Requiring Board Approval

Our Board is ultimately responsible for the administration of the Company’s affairs and for compliance with the law,

Articles of Association of the Company and the Company’s objectives. It applies shareholders’ resolutions in good faith,

vigilantly safeguarding the best interests of the Company. In addition to its general oversight of management, our Board

ensures that the Company and its subsidiary companies comply with the Listing Manual of the Singapore Exchange.

In brief, the Board monitors major plans and activities, and oversees control of subsidiary companies.

93

Training

All directors have passed the Director Accreditation Program (DAP) of the Institution of Directors in Thailand. We also

encourage and support directors to understand Singapore Law and the Listing Manual applicable to our Company

through in-house training.

All directors receive a clear explanation of their roles and responsibilities at the time of their proposed appointment

to the Board.

Board Composition and Guidance

Principle 2

Our Board consists of 22 directors, including eight independent directors, or more than one-third. Each director either

has long-term experience in business or attained honorary positions.

In 2006, we were proud

to receive recognition of our

efforts with the Merit Award for

Most Transparent Company Award in Singapore

94

Executive Board

The Board appointed an Executive Board, which consists of 13 members; some of them are also top executive officers

of the Company. The Board granted them the authority to perform their duties. To help the Board run the Company

properly, it established four committees: the Audit Committee (AC), Risk Management Committee (RMC), Nomination

Committee (NC) and Remuneration Committee (RC).

Audit Committee

The Audit Committee members are Mr. Staporn Kavitanon, Prof. Kanung Luchai, Mr. Manu Leopairote, and Mr. Ng Tat Pun.

The Chairman of the Audit Committee is Mr. Staporn Kavitanon.

Risk Management Committee

The Risk Management Committee members are the Directors, Mr. Narong Srisa-an, Mr. Samut Hatthasing, Ms. Kanoknart

Rangsithienchai, Mr. Thapana Sirivadhanabhakdi, Mr. Chukiet Tangpongprush, Mr. Ueychai Tantha-obhas, Mr. Sithichai

Chaikriangkrai, Dr. Pisanu Vichiensanth, Mr. Puchchong Chandhanakij, and the employees, Mr. Chalerm Pornrutchakit,

Mr. Pichit Burapavong, Mr. Tawatchai Tangjaitrong, Mr. Mahin Kraivixien, and Mr. Thidi Suwanarat. The Chairman of the

Risk Management Committee is Mr. Narong Srisa-an.

Nomination Committee

The Nomination Committee members are Mr. Staporn Kavitanon, Mr. Manu Leopairote, and Khunying Wanna

Sirivadhanabhakdi. The Chairman of the Nomination Committee is Mr. Staporn Kavitanon.

95

Remuneration Committee

The Remuneration Committee members are Mr. Staporn Kavitanon, Mr. Manu Leopairote, and Prof. Kanung Luchai.

The Chairman of the Remuneration Committee is Mr. Staporn Kavitanon.

Normally the Executive Board meets once a month to oversee business operations, or more than once to consider and

approve any important or urgent matter.

The Board also appoints executive members to hold directorships in subsidiaries to monitor the Company’s interests.

The Executive Board’s responsibilities are to:

• prepare and propose business plans, targets, operational plans, business strategies and annual budgets for the Board

of Directors;

• determine business plans, budgets and management authorizations for approval;

• monitor the operations of the Group, that they are in line with business plans, targets, operational plans, business

strategies, budgets and management authorizations approved by our Board to facilitate corporate efficiency and

appropriate to business conditions;

• propose investments, borrowing or lending, including acting as a guarantor if that is in line with the normal business of

the Group;

• approve payments as determined by our Board;

• determine the organization and management structure of the Group for the Board;

96

• supervise and approve all employment and salary matters relating to the Company (other than matters which are within

the purview of the RC);

• approve the appointment of the Company’s representatives to the Board and/or subsidiaries’ subcommittees to ensure

compliance with the Company’s business policies, goals, plans, strategies, budget and other management powers

approved by the Board, to improve efficiency and facilitate the business;

• supervise and approve operational issues; at times appointing or authorizing persons to engage specified activities on

behalf of the Executive Board, or appoint subcommittees with particular knowledge and expertise to manage and

screen work before discussion by the Executive Board, provided the Executive Board is entitled to repeal or modify the

scope of such authorization; and

• perform any other activity delegated by the Board.

No one, including the Executive Board, is authorized to approve any transaction in which the board or the individual

has or may have a conflict of interest, or where the transactions require the approval of the Board and/or of a

Shareholders’meeting.

Chairman and Chief Executive Officer

Principle 3

Our Chairman and Chief Executive Officer is the same person. In support of good governance, however, our Chairman

encourages constructive relations between the Board and management, executive directors and non-executive directors.

In this regard, our Company appointed an independent non-executive director to act as the Lead Independent Director

for Interested Person Transactions.

Board Membership

Principle 4

In order to assure a transparent process for the appointment of new directors to the Board, we established the

Nomination Committee (NC) to review and assess candidates for directorships (including executive directorships)

before making recommendations to our Board. The NC also reviews the retirement and re-election of directors at

each annual general meeting under our Articles of Association and makes recommendations to the Board.

The NC consists of three directors with a majority of independent directors, including the Chairman. It adopted a charter

and proposed it to the Board for approval.

97

The Company also established a Remuneration Committee (RC) that makes recommendations to the Board, for it to

endorse remuneration policies and guidelines, and to set the remuneration for Directors, Executive Directors, Presidents,

Executive Vice Presidents and Assistant Vice Presidents.

In performing their roles, our NC and RC adhere to the law and the Listing Manual applicable to our Company.

Board Performance

Principle 5

Our Board members include self-assessment in their performance, and take the result of business operations into their

consideration.

Access to Information

Principle 6

We are committed to providing our Board members with adequate, complete, continuous and timely information before

Board meetings. The Board members have separate and independent access to the Company Secretary. The Company

Secretary, in consultation and cooperation with the Office of Legal Affairs, is responsible for advising the Board, through

the Chairman, on all governance matters. This is to ensure compliance with legal and regulatory requirements. The Board

approves the appointment and the removal of the Company Secretary. This year the Company Secretary attended all

Board meetings and Executive Board meetings.

Procedure for Developing Remuneration Policies

Principle 7

The RC reviews matters concerning the remuneration of Board members, Presidents, Executive Vice Presidents and

Assistant Vice Presidents in consultation with the Chairman of the Board

If a member of the RC has an interest in a matter deliberated by the Committee, he or she will abstain from participating

in the review and approval process for that matter.

98

Level and Mix of Remuneration

Principle 8

The components of remuneration are structured to reward both executive and non-executive directors based on

corporate and individual performance, including our two top executives. The level of remuneration reflects their

experience and dedication. The remuneration bands rank from A to H as follows.

Remuneration bands:

A refers to remuneration below the equivalent of S$ 250,000

B refers to remuneration between the equivalent of S$ 250,000 and S$ 499,999

C refers to remuneration between the equivalent of S$ 500,000 and S$ 749,999

D refers to remuneration between the equivalent of S$ 750,000 and S$ 999,999

E refers to remuneration between the equivalent of S$ 1,000,000 and S$ 1,249,999

F refers to remuneration between the equivalent of S$ 1,250,000 and S$ 1,499,999

G refers to remuneration between the equivalent of S$ 1,500,000 and S$ 1,749,999

H refers to remuneration between the equivalent of S$ 1,750,000 and S$ 1,999,999

The Company entered into a long-term employment agreement with Dr. Pisanu Vichiensanth, who is our director,

the Managing Director of Beer Thai (1991) Public Company Limited and a senior Master Brewer.

Disclosure of Remuneration

Principle 9

In year ending December 31, 2006, directors and two top executives received the following remuneration:

99

Name of Directors Remuneration Band

1. Mr. Charoen Sirivadhanabhakdi [D] 2. Khunying Wanna Sirivadhanabhakdi [B] 3. Mr. Narong Srisa-an [H] 4. Mr. Komen Tantiwiwatthanaphan [B] 5. Mr. Paisal Chevasiri* [B] 6. Mr. Puchchong Chandhanakij [B] 7. Mr. Staporn Kavitanon [A] 8. Prof. Kanung Luchai [A] 9. Mr. Manu Leopairote [A] 10. Mr. Ng Tat Pun [A] 11. Mr. Michael Lau Hwai Keong [A] 12. Prof. Pornchai Matangkasombut [A] 13. Gen. Dr. Choo-Chat Khumbhu Na Ayudhya [A] 14. Mr. Sakthip Krairiksh [A] 15. Mr. Vivat Tejapaibul [A] 16. Mr. Samut Hatthasing [H] 17. Ms. Kanoknart Rangsithienchai [D] 18. Mr. Thapana Sirivadhanabhakdi [C] 19. Mr. Sithichai Chaikriangkrai [C] 12. Dr. Pisanu Vichiensanth [C] 21. Mr. Ueychai Tantha-Obhas [C] 22. Mr. Chukiet Tangpongprush [B] 23. Mr. Panote Sirivadhanabhakdi** [-]

* Mr. Paisal Chevasiri resigned from the Board effective from February 26, 2007

** Mr. Panote Sirivadhanabhakdi was appointed to the Board effective from February 27, 2007

100

Top Executives Remuneration Band

1. Mr. Sawat Sopa [B]

2. Mr. Saikeaw Vongpisethkul* [A]

* Started in December 2006

(Remark: 1 S$ = Baht 24)

Accountability

Principle 10

The Board is responsible for providing a balanced and understandable assessment of the Company’s performance, and

for providing shareholders with quarterly and annual financial reports. The financial statements for the first three quarters

are released to shareholders within 45 days of the end of each quarter. The annual result is released within 60 days of

the end of each financial year.

Audit Committee

Principle 11

The Board appointed an AC, which consists of four independent directors: three Thais and one Singaporean. Their

responsibilities are clearly set forth in the Audit Committee Charter, for instance, assessing the adequacy and

effectiveness of the internal controls, preparing the process of financial statements and information disclosures and

reviewing the compliance with applicable laws, regulations and rules of the Stock Exchange of Thailand and the

Singapore Exchange. This includes internal investigations and consideration of Interested Persons Transactions

to prevent an occurrence of conflict of interests.

Internal Controls

Principle 12

Our Board values a sound management internal control system. To safeguard shareholders’ investments and the

Company’s assets, it appointed an Executive Board, each member of which oversees different departments and

business units to ensure the adequacy of financial, operational and compliance controls, including risk management

policies.

101

In support of this, the Board also assigned the Office of Corporate Secretariat to oversee compliance with the law and

regulations concerning public companies.

Based on the information provided to it, the AC believes that the system of internal controls and risk management

is adequate.

Internal Audit

Principle 13

The Company established the Office of Internal Audit to assist the Board through Audit Committee in promoting sound

risk management and good corporate governance by assessing the adequacy and effectiveness of the internal controls

for key businesses and operations in areas described in the audit plan. Annual audit schedules ensure that the

performance of internal audit is accurate.

Communication with Shareholders

Principle 14

The Company has adopted the practice of timely disclosure, in part by establishing an Investor Relations Unit, headed

by Mr. Richard W. Jones, who has more than 10 years’ experience in this area. The unit arranges quarterly briefings

following the disclosure of interim and full year results, so that investors may query management about financial,

marketing or strategic issues. Between reporting periods, the unit regularly meets with investors to communicate the

policies and strategies of the Company so that investors have a good understanding of them. Investor Relations provides

timely detailed information via the corporate website. The unit also reports to management about investors’ comments

and concerns. Contact information for the Investor Relations Unit appears in this annual report or on the investor relations

section of the corporate website http://www.thaibev.com/set/investor.html.

102

Corporate Social Responsibility Report Annual Report - Thai Beverage Public Company Limited

In the belief that it is our duty to play an active role in national development, to better our society, and to assist those in

need, Thai Beverage Public Company Limited (“ThaiBev”) has a long history of contribution to projects and activities to

display our loyalty to the monarchy and improve society, education, sports, public health, safety, and dissemination of a

good reputation for Thailand. The following accounts describe our major contributions in 2006:

Loyalty to the Monarchy

ThaiBev sponsored a grand exhibition to commemorate the 60th Anniversary of HM the King’s Accession to the Throne

at Muang Thong Thani in Bangkok at a budget of Baht 30 million. It also supported celebration of the same event in

Bangkok and at the Royal Flora Ratchaphruek Exposition in Chiang Mai, worth about Baht 60 million. In addition, it

sponsored a singing contest of The Royal Anthem among secondary schools to commemorate the 60th Anniversary of

HM the King’s Accession to the Throne at a budget of Baht 11 million.

Helping Victims of Natural Disasters

The distribution of 200,000 blankets to poor villagers in the northern region of Thailand during the cold season has been

the Company’s flagship social contribution. Now in its seventh year, the program is worth Baht 30 million. ThaiBev also

regularly donates money and drinking water to flood victims in various regions of the country.

Education

ThaiBev also spent over Baht 2 million to support community schools and other educational programs.

103

Sports

ThaiBev continued its soccer development and training program for talented young Thai players with Everton coaches,

as well as supporting the national team and local football clubs, at a budget of roughly GBP 250,000 (Baht 17.5 million)

per year. ThaiBev also sponsored the Chang-Everton Cup soccer tournament for 12 schools in Ban Nam Khem,

Phang-nga, southern Thailand, as part of the post-tsunami support in affected areas. This was one of the Prince of

Wales’ International Business Leadership Forum tsunami support projects, worth some Baht 500,000. ThaiBev also

supported other sports, including table-tennis, swimming, volleyball and snooker, under its sports development program

at a budget of over Baht 18 million.

Safety

Together with the Highway Police Department, ThaiBev distributed 13,000 crash helmets to motorcyclists; put up

“Don’t Drive Drunk” billboards around Bangkok and distributed 100,000 anti-drowsy driving car stickers to promote road

safety and to prevent road accidents and injuries, at a budget of Baht 3 million under the ThaiBev Safe Driving Program.

Public Health

The Company built a health clinic in Kamphaengphet to serve the local community, supported by regular visits of doctors

from Bangkok, at a budget of Baht 18.5 million.

National Reputation

ThaiBev adopted “Chawang”, a bull elephant at the Singapore Night Safari, and donated S$50,000 (Baht 1.25 million) to

the Singapore Wildlife Conservation Fund. It also sponsored the Singapore Exchange’s annual Bull Run charity run and

contributed S$100,000 (Baht 2.5 million) for underprivileged children and youths.

104

Audit Committee Report Annual Report 2006 - Thai Beverage Public Company Limited

The Audit Committee of the Board of Directors (the Committee) is comprised of four directors named below.

1. Mr. Staporn Kavitanon Chairman of the Audit Committee

2. Mr. Kanung Luchai Member of the Audit Committee

3. Mr. Manu Leopairote Member of the Audit Committee

4. Mr. Ng Tat Pun Member of the Audit Committee

Each member of the Committee is an independent director who meets the independence, experience and other

qualification requirements of the Stock Exchange of Thailand and the Securities and Exchange Commission.

The Committee has reviewed and discussed the Company’s audited financial statements with Management and KPMG

Phoomchai Audit Limited, the Company’s external auditor for 2006, in order to express an opinion of the conformity on

the Company’s audited financial statements with generally accepted accounting principles. The Committee also reviewed

and expressed an opinion on audit plan as well as considered results of the audit from the Company’s internal audit

division to ensure that the internal control system is adequate and appropriate.

The Committee has recommended to the Board to propose the continuous nomination of KPMG Phoomchai Audit

Limited as the Company’s external auditor for the year 2007 and the remuneration to the Ordinary General Meeting

of Shareholders for approval.

In reliance on the reviews and discussions referred to above, the Committee has its opinion that the Company has an

adequate internal control and the Company’s financial statement is fairly presented in accordance with the generally

accepted accounting principles.

Staporn Kavitanon

Chairman of the Audit Committee

February 26, 2007

105

Audit Report of Certified Public Accountant

I have audited the accompanying consolidated and separate balance sheets as at 31 December 2006 and 2005, and the

related statements of income, changes in shareholders’ equity and cash flows for the years then ended of Thai Beverage

Public Company Limited and its subsidiaries, and of Thai Beverage Public Company Limited, respectively. The Company’s

management is responsible for the correctness and completeness of information presented in these financial statements.

My responsibility is to express an opinion on these financial statements based on my audits.

I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and

perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as

evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion.

In my opinion, the consolidated and separate financial statements referred to above present fairly, in all material respects,

the financial positions as at 31 December 2006 and 2005 and the results of operations and cash flows for the years then

ended of Thai Beverage Public Company Limited and its subsidiaries, and of Thai Beverage Public Company Limited,

respectively, in accordance with generally accepted accounting principles.

Disclosure of significant differences between generally accepted accounting principles in Thailand and International

Financial Reporting Standards is not a required part of the basic financial statements under generally accepted accounting

principles in Thailand, but it is presented in Note 33 to the notes to financial statements for information purposes only.

I have not audited or reviewed such information and therefore do not express any audit opinion or review report thereon.

To the shareholders of Thai Beverage Public Company Limited

(Nirand Lilamethwat) Certified Public Accountant Registration No. 2316 KPMG Phoomchai Audit Ltd. Bangkok 27 February 2007

106

Thai Beverage Public Company Limited and its Subsidiaries

Balance Sheets As at 31 December 2006 and 2005

Note 2006 2005 2006 2005

Consolidated The Company

6 1,919,576,970 3,397,994,012 15,622,582 18,562,884

4,358,600 9,999,590 - -

7 1,317,930,493 1,463,650,900 - -

5 64,334,648 157,680,524 16,536,017,371 15,041,591,940

8 28,315,158,270 28,747,016,796 - -

9 1,914,238,542 2,572,998,766 16,988,878 9,556,739

33,535,597,523 36,349,340,588 16,568,628,831 15,069,711,563

10 135,490,042 128,781,575 69,391,025,129 68,045,384,180

11 3,753,619 4,462,473 - -

12 49,532,143,469 50,027,842,938 845,926,385 751,334,172

13 355,424,945 513,688,093 12,353,346 8,271,709

14 2,017,102,446 112,912,559 357,128,650 68,000

52,043,914,521 50,787,687,638 70,606,433,510 68,805,058,061

4 85,579,512,044 87,137,028,226 87,175,062,341 83,874,769,624

(in Baht)

(Restated) Assets

Current assets

Cash and cash equivalents

Current investments

Trade accounts receivable, net

Short-term loans to and

amounts due from related parties

Inventories, net

Other current assets

Total current assets

Non-current assets

Investments accounted for

using the equity method

Other long-term investments, net

Property, plant and equipment, net

Intangible assets, net

Other non-current assets, net

Total non-current assets

Total assets

The accompanying notes are an integral part of these financial statements

107

Note 2006 2005 2006 2005


15 6,753,305,295 40,158,625,134 3,029,559,265 36,600,000,000

16 2,275,670,644 1,691,136,338 - -

15 2,200,000,000 - 2,200,000,000 -

15 2,300,000,000 - 2,300,000,000 -

15 1,500,000,000 1,086,600,000 1,500,000,000 -

5 4,837,787,398 4,164,857,315 17,457,028,757 15,610,981,855

2,180,870,323 2,528,980,543 47,791,738 97,049,614

17 4,103,314,358 5,597,963,143 394,209,562 186,751,240

26,150,948,018 55,228,162,473 26,928,589,322 52,494,782,709

15 3,000,000,000 - 3,000,000,000 -

15 3,755,000,000 - 3,755,000,000 -

10 - - 937,917,181 677,227

120,008,188 194,362,158 - 13,281,250

6,875,008,188 194,362,158 7,692,917,181 13,958,477

4 33,025,956,206 55,422,524,631 34,621,506,503 52,508,741,186

(in Baht)

(Restated) Liabilities and shareholders’ equity

Current liabilities

Bank overdrafts and short-term

loans from financial institutions

Trade accounts payable

Short-term guaranteed bonds

Current portion of long-term

guaranteed bonds

Current portion of long-term loans

Short-term loans from and

amounts due to related parties

Income tax payable

Other current liabilities

Total current liabilities

Non-current liabilities

Long-term guaranteed bonds

Long-term loans from financial

institutions

Excess of share losses over costs

of investments

Other non-current liabilities

Total non-current liabilities

Total liabilities

(in Baht)

(Restated)


108


Shareholders’ equity

Share capital

Authorised share capital

Issued and paid-up share capital

Difference arising from common

control transactions

Reserves

Share premium

Currency translation changes

Fair value changes and

revaluation surpluses

Retained earnings

Appropriated - legal reserve

Unappropriated

Total shareholders’ equity

Total liabilities and shareholders’ equity

18

29,000,000,000 29,000,000,000 29,000,000,000 29,000,000,000

25,110,025,000 22,000,000,000 25,110,025,000 22,000,000,000

4 (17,141,406,365) (15,630,789,676) (17,141,406,365) (15,979,264,833)

19

17,215,736,603 - 17,215,736,603 -

(19,508,334) (5,341,471) (19,508,334) (5,341,471)

6,586,263,579 6,584,735,444 6,586,263,579 6,584,735,444

19 1,700,000,000 1,110,000,000 1,700,000,000 1,110,000,000

19,102,445,355 17,655,899,298 19,102,445,355 17,655,899,298

4 52,553,555,838 31,714,503,595 52,553,555,838 31,366,028,438

85,579,512,044 87,137,028,226 87,175,062,341 83,874,769,624

Balance Sheets As at 31 December 2006 and 2005

Note 2006 2005 2006 2005


(in Baht)

(Restated)


109


Revenues

Revenue from sales

Interest income

Management fees

Other income

Share of profits from investments

accounted for using the equity method

Total revenues

Expenses

Cost of sales

Selling and administrative expenses

Total expenses

Profit before interest and

income tax expenses

Interest expense

Income tax expense

Net profit

Basic earnings per share

5

97,797,921,895 94,903,412,262 - -

56,452,361 71,522,742 858,621,337 616,562,118

- - 3,432,470,973 2,349,829,494

21 77,938,829 193,261,442 4,873,832 2,026,646

23,684,083 22,035,776 9,128,590,784 9,812,306,781

97,955,997,168 95,190,232,222 13,424,556,926 12,780,725,039

5

69,325,121,958 65,187,736,555 - -

22 12,684,556,582 13,180,252,286 943,322,290 722,625,339

82,009,678,540 78,367,988,841 943,322,290 722,625,339

15,946,318,628 16,822,243,381 12,481,234,636 12,058,099,700

1,568,651,172 1,741,805,230 2,253,267,473 1,775,183,024

4,322,890,312 4,743,184,044 149,318,356 150,137,320

4 10,054,777,144 10,337,254,107 10,078,648,807 10,132,779,356

4, 24 0.42 0.47 0.42 0.46

Note 2006 2005 2006 2005


Statements of Income For the years ended 31 December 2006 and 2005

Note

Cons

olida

ted

(200

5 : R

esta

ted)

Issue

d an

dpa

id-up

shar

e ca

pital

Diffe

renc

e ar

ising

arisin

g fro

m c

omm

onco

ntro

l tran

sact

ions

Shar

e pr

emium

Curre

ncy

trans

lation

chan

ges

Fair

value

cha

nges

and

reva

luatio

nsu

rplus

esLe

gal r

eser

veUn

appr

opria

ted

Tota

lsh

areh

older

s' eq

uity

Rese

rve

Reta

ined

earn

ings

(in B

aht)

22,0

00,0

00,0

00

(6,2

18,1

64,7

35)

_ (2

,980

) 6,

699,

299,

782

2,50

0,00

0 11

,270

,619

,942

33

,754

,252

,009

19

-

- -

- (1

14,4

83,7

67)

- -

(114

,483

,767

)

-

- -

-

(80,

571)

-

- (8

0,57

1)

- (1

7,69

3,93

2)

- (5

,338

,491

) -

- -

(23,

032,

423)

- (1

7,69

3,93

2)

- (5

,338

,491

) (1

14,5

64,3

38)

- -

(137

,596

,761

)

4

- 20

4,47

4,75

1 -

- -

- 10

,132

,779

,356

1

0,33

7,25

4,10

7

- 18

6,78

0,81

9 -

(5,3

38,4

91)

(114

,564

,338

) -

10,1

32,7

79,3

56

10,1

99,6

57,3

46

4

-

(9,6

45,9

98,7

10)

-

- -

-

(9,6

45,9

98,7

10)

4

- 46

,592

,950

-

- -

- -

46,5

92,9

50

- -

-

- -

1,10

7,50

0,00

0 (1

,107

,500

,000

) -

- -

- -

- -

(2,6

40,0

00,0

00)

(2,6

40,0

00,0

00)

22

,000

,000

,000

(1

5,63

0,78

9,67

6)

_ (5

,341

,471

) 6,

584,

735,

444

1,11

0,00

0,00

0 17

,655

,899

,298

31

,714

,503

,595

- -

- -

1,

528,

135

- -

1,52

8,13

5

- (8

,543

,855

) -

(14,

166,

863)

-

-

- (2

2,71

0,71

8)

- (8

,543

,855

) -

(14,

166,

863)

1,

528,

135

-

- (2

1,18

2,58

3)

- (2

3,87

1,66

3)

- -

-

- 10

,078

,648

,807

10

,054

,777

,144

- (3

2,41

5,51

8)

- (1

4,16

6,86

3)

1,52

8,13

5 -

10,0

78,6

48,8

07

10,0

33,5

94,5

61

4

- (1

,505

,240

,976

) -

- -

- -

-

4

- 27

,039

,805

-

- -

- -

27,0

39,8

05

- -

- -

- 59

0,00

0,00

0 (5

90,0

00,0

00)

-

26

- -

- -

- -

(8,0

42,1

02,7

50)

(8,0

42,1

02,7

50)

18

3,11

0,02

5,00

0 -

17,2

15,7

36,6

03

- -

- -

20,3

25,7

61,6

03

25

,110

,025

,000

(1

7,14

1,40

6,36

5)

17,2

15,7

36,6

03

(19,

508,

334)

6,

586,

263,

579

1,70

0,00

0,00

0 19

,102

,445

,355

52

,553

,555

,838

Balan

ce a

t 1 J

anua

ry 2

005

Chan

ges

in sh

areh

older

s' eq

uity

for 2

005

Surp

lus o

n pr

oper

ty re

valua

tion

Unre

alise

d los

s on

inve

stm

ent

Curre

ncy

trans

lation

cha

nges

Net e

xpen

se re

cogn

ised

direc

tly in

sha

reho

lders

' equ

ityNe

t pro

fitTo

tal r

ecog

nised

inco

me

and

expe

nse

Cons

idera

tion

paid

to s

hare

holde

rs o

f sub

sidiar

ies

for t

he c

omm

on c

ontro

l tra

nsac

tions

In

crea

se in

sha

re c

apita

l in s

ubsid

iaries

bef

ore

bu

sines

s re

stru

ctur

ingLe

gal r

eser

veDi

viden

dsBa

lance

at 3

1 De

cem

ber 2

005

Chan

ges

in sh

areh

older

s' eq

uity

for 2

006

Surp

lus o

n pr

oper

ty re

valua

tion

Curre

ncy

trans

lation

cha

nges

Net e

xpen

se re

cogn

ised

direc

tly in

sha

reho

lders

' equ

ityNe

t pro

fitTo

tal r

ecog

nised

inco

me

and

expe

nse

Cons

idera

tion

paid

to s

hare

holde

rs o

f sub

sidiar

ies

for t

he c

omm

on c

ontro

l tra

nsac

tions

Incr

ease

in s

hare

cap

ital in

sub

sidiar

ies b

efor

e

busin

ess

rest

ruct

uring

Lega

l res

erve

Divid

ends

Issue

of s

hare

cap

ital

Balan

ce a

t 31

Dece

mbe

r 200

6

Sta

tem

ents

of

Cha

nges

in S

hare

hold

ers'

Equ

ity

For t

he y

ears

end

ed a

t 31

Dece

mbe

r 200

6 an

d 20

05

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

The

acco

mpa

nying

not

es a

re a

n int

egra

l par

t of t

hese

fina

ncial

sta

tem

ents

(in B

aht)

The

acco

mpa

nying

not

es a

re a

n int

egra

l par

t of t

hese

fina

ncial

sta

tem

ents

Note

The

Com

pany

Issue

d an

dpa

id-up

shar

e ca

pital

Diffe

renc

e ar

ising

arisin

g fro

m c

omm

onco

ntro

l tran

sact

ions

Shar

e pr

emium

Curre

ncy

trans

lation

chan

ges

Fair

value

cha

nges

and

reva

luatio

nsu

rplus

esLe

gal r

eser

veUn

appr

opria

ted

Tota

lsh

areh

older

s' eq

uity

Rese

rve

Reta

ined

earn

ings

22,0

00,0

00,0

00

(6,2

18,1

64,7

35)

_ (2

,980

) 6,

699,

299,

782

2,50

0,00

0 11

,270

,619

,942

30

,319

,798

,622

19

-

- -

- (1

14,4

83,7

67)

- -

(114

,483

,767

)

-

- -

-

(80,

571)

-

- (8

0,57

1)

- -

- (5

,338

,491

) -

- -

(5,3

38,4

91)

- -

- (5

,338

,491

) (1

14,5

64,3

38)

- -

(119

,902

,829

)

- -

- -

- -

10,1

32,7

79,3

56

10,

132,

779,

356

- -

- (5

,338

,491

) (1

14,5

64,3

38)

- 10

,132

,779

,356

10

,012

,876

,527

4

-

(6,3

26,6

46,7

11)

-

- -

-

(6

,326

,646

,711

)

- -

-

- -

1,10

7,50

0,00

0 (1

,107

,500

,000

) -

- -

- -

- -

(2,6

40,0

00,0

00)

(2,6

40,0

00,0

00)

22

,000

,000

,000

(1

5,97

9,26

4,83

3)

_ (5

,341

,471

) 6,

584,

735,

444

1,11

0,00

0,00

0 17

,655

,899

,298

31

,366

,028

,438

19

- -

- -

1,

528,

135

- -

1,52

8,13

5

- -

- (1

4,16

6,86

3)

-

- -

(14,

166,

863)

- -

- (1

4,16

6,86

3)

1,52

8,13

5 -

-

(12,

638,

728)

- -

- -

-

- 10

,078

,648

,807

10

,078

,648

,807

- -

- (1

4,16

6,86

3)

1,52

8,13

5 -

10,0

78,6

48,8

07

10,0

66,0

10,0

79

-

(1,1

62,1

41,5

32)

- -

- -

- (1

,162

,141

,532

)

-

- -

- -

590,

000,

000

(590

,000

,000

) -

26

- -

- -

- -

(8,0

42,1

02,7

50)

(8,0

42,1

02,7

50)

18

3,11

0,02

5,00

0 -

17,2

15,7

36,6

03

- -

- -

20,3

25,7

61,6

03

25

,110

,025

,000

(1

7,14

1,40

6,36

5)

17,2

15,7

36,6

03

(19,

508,

334)

6,

586,

263,

579

1,70

0,00

0,00

0 19

,102

,445

,355

52

,553

,555

,838

Balan

ce a

t 1 J

anua

ry 2

005

Chan

ges

in sh

areh

older

s' eq

uity

for 2

005

Surp

lus o

n pr

oper

ty re

valua

tion

Unre

alise

d los

s on

inve

stm

ent

Curre

ncy

trans

lation

cha

nges

Net e

xpen

se re

cogn

ised

direc

tly in

sha

reho

lders

' equ

ityNe

t pro

fitTo

tal r

ecog

nised

inco

me

and

expe

nse

Diffe

renc

e ar

ising

from

com

mon

con

trol t

rans

actio

nsLe

gal r

eser

veDi

viden

dsBa

lance

at 3

1 De

cem

ber 2

005

Chan

ges

in sh

areh

older

s' eq

uity

for 2

006

Surp

lus o

n pr

oper

ty re

valua

tion

Curre

ncy

trans

lation

cha

nges

Net e

xpen

se re

cogn

ised

direc

tly in

sha

reho

lders

' equ

ityNe

t pro

fitTo

tal r

ecog

nised

inco

me

and

expe

nse

Diffe

renc

e ar

ising

from

com

mon

con

trol t

rans

actio

nsLe

gal r

eser

veDi

viden

dsIss

ue o

f sha

re c

apita

lBa

lance

at 3

1 De

cem

ber 2

006

Sta

tem

ents

of

Cha

nges

in S

hare

hold

ers'

Equ

ity

For t

he y

ears

end

ed a

t 31

Dece

mbe

r 200

6 an

d 20

05

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

(in Baht)

(Restated)


112


Cash flows from operating activities

Net profit

Adjustments for Depreciation and amortisation

Interest income

Interest expense

Amortisation of advance payments to

a specialist

Allowance for obsolete inventories

Allowance for impairment loss on equipment

Loss on sale and disposal of property,

plant and equipment

Unrealised loss on exchange rate

Loss on sale of investment

Allowance for decline in value of investments

Share of profits from investments

accounted for using the equity method

Income tax expense

10,054,777,144 10,337,254,107 10,078,648,807 10,132,779,356

4,652,102,246 4,432,147,625 24,071,862 7,837,319

(56,452,361) (71,522,742) (858,621,337) (616,562,118)

1,568,651,172 1,741,805,230 2,253,267,473 1,775,183,024

50,000,000 70,833,333 9,375,000 13,281,250

354,960,794 179,217,640 - -

- 921,096 - -

4,734,397 80,027,724 50,309 -

11,720,775 15,879,762 16,321,434 -

708,828 3,465,809 - -

- (1,135,640) - -

(23,684,083) (22,035,776) (9,128,590,784) (9,812,306,781)

4,322,890,312 4,743,184,044 149,318,356 150,137,320

20,940,409,224 21,510,042,212 2,543,841,120 1,650,349,370

Statements of Cash Flows For the years ended 31 December 2006 and 2005

Note 2006 2005 2006 2005


(in Baht)

(Restated)


113

Note 2006 2005 2006 2005


Changes in operating assets and liabilities

Trade accounts receivable

Amounts due from related parties

Inventories



Amounts due to related parties


Other non-current liabilities

Advance payments to a specialist

Income taxes paid

Net cash provided by operating activities

143,293,100 209,688,035 - -

36,148,778 5,031,748,818 (354,909,409) (880,381,965)

76,897,733 4,538,613,438 - -

657,219,479 963,126,112 (7,432,139) (9,331,464)

583,226,076 (320,059,744) - -

46,080,798 (229,335,116) 5,885,734 7,509,246

(1,637,370,959) 2,053,429,124 60,617,406 105,665,053

(3,520,637) (25,705,031) - -

28 (2,000,000,000) - (375,000,000) -

(4,671,000,532) (5,164,843,709) (198,576,232) (62,476,074)

14,171,383,060 28,566,704,139 1,674,426,480 811,334,166


114


Cash flows from investing activities

Interest received

Dividends received

Current investments

Short-term loans to related parties

Investments accounted for using

the equity method

Consideration paid to shareholders of

subsidiaries for the common control

transactions

Increase in share capital in subsidiaries

before business restructuring

Sale of long-term investments

Purchase of property, plant and equipment

Sale of property, plant and equipment

Purchase of intangible assets

Other non-current assets

Net cash provided by (used in)

investing activities

Statements of Cash Flows For the years ended 31 December 2006 and 2005

Note 2006 2005 2006 2005


(in Baht)

(Restated)

58,093,432 69,514,872 847,583,522 573,221,540

16,975,616 23,385,005 8,055,408,868 5,235,676,477

5,640,990 (8,469,902) - -

40,850,000 376,838,008 (1,144,799,640) 1,656,000,000

- - (509,999,340) (535,046,490)

(1,505,240,976) (9,645,998,710) - (9,619,911,346)

27,039,805 46,592,950 - -

26 1,111,381,960 - -

(4,038,539,449) (7,302,013,424) (111,780,397) (68,425,187)

50,253,932 581,007,562 58,906 -

(13,060,373) (73,555,660) (6,666,764) (8,206,360)

(25,023,220) 9,626,623 (4,716,900) (68,000)

(5,383,010,217) (14,811,690,716) 7,125,088,255 (2,766,759,366)


(1,420,545,600) (1,741,800,683) (2,086,173,156) (1,731,616,587)

26 (8,042,102,750) (2,640,000,000) (8,042,102,750) (2,640,000,000)

(33,405,319,840) (5,223,957,520) (33,570,440,734) (1,528,565,682)

4,700,000,000 - 4,700,000,000 -

(2,500,000,000) - (2,500,000,000) -

629,727,420 (514,822,212) 1,815,500,000 7,856,400,000

5,300,000,000 - 5,300,000,000 -

26,600,000,000 - 26,600,000,000 -

(22,431,600,000) (1,320,000,000) (21,345,000,000) -

18 20,325,761,603 - 20,325,761,603 -

(10,244,079,167) (11,440,580,415) (8,802,455,037) 1,956,217,731

19 (22,710,718) (23,032,423) - -

(1,478,417,042) 2,291,400,585 (2,940,302) 792,531

3,397,994,012 1,106,593,427 18,562,884 17,770,353

6 1,919,576,970 3,397,994,012 15,622,582 18,562,884

115

Note 2006 2005 2006 2005


(in Baht)

(Restated)

Cash flows from financing activities

Interest paid

Dividends paid

Bank overdrafts and short-term loans

from financial institutions

Proceeds from short-term guaranteed bonds

Repayment of short-term guaranteed bonds

Short-term loans from related parties

Proceeds from long-term guaranteed bonds

Proceeds from long-term loans from

financial insitutions

Repayment of long-term loans from

financial insitutions

Proceeds from issue of shares

Net cash provided by (used in)

financing activities


Net increase (decrease) in cash and

cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

116


For the years ended 31 December 2006 and 2005

Notes to The Financial Statements.

General information

Basis of preparation of the financial statements

Significant accounting policies

Business restructuring

Related party transactions and balances

Cash and cash equivalents


Inventories


Investments accounted for using the equity method

Other long-term investments

Property, plant and equipment

Intangible assets

Other non-current assets

Interest-bearing liabilities



Share capital

Reserves

Segmental information

Other income

Selling and administrative expenses

Personnel expenses

Earnings per share

Promotional privileges

Dividends

Financial instruments

Commitments

Litigation

Events after the balance sheet date

Reclassification of accounts

New and revised accounting standards not yet adopted

Significant differences between Thai GAAP and IFRS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

Contents

117

These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the directors on 27 February 2007.

1. General Information

Thai Beverage Public Company Limited, the “Company”, is incorporated and registered as a public company in Thailand on

29 October 2003. The registered office of the Company is at 14 Vibhavadi Rangsit Road, Chomphon, Chatuchak, Bangkok.

The Company was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in May 2006.

The principal activities of the Company and its subsidiaries are the production, distribution and marketing of alcoholic and

non-alcoholic beverages, industrial alcohol and other by-products. Details of the Company’s subsidiaries are as follows:

Country of Ownership Interest

Type of Business Incorporation 2006 2005

Direct subsidiaries (%) (%)

1. Beer Thai (1991) PCL. Beer brewery Thailand

2. Beer Thip Brewery (1991) Co., Ltd. Beer brewery Thailand

3. Sangsom Co., Ltd. Spirits distillery Thailand

4. Fuengfuanant Co., Ltd. Spirits distillery Thailand

5. Mongkolsamai Co., Ltd. Spirits distillery Thailand

6. Thanapakdi Co., Ltd. Spirits distillery Thailand

7. Kanchanasingkorn Co., Ltd. Spirits distillery Thailand

8. Sura Bangyikhan Co., Ltd. Spirits distillery Thailand

9. Athimart Co., Ltd. Spirits distillery Thailand

10. S.S. Karnsura Co., Ltd. Spirits distillery Thailand

11. Kankwan Co., Ltd. Spirits distillery Thailand

12. Theparunothai Co., Ltd. Spirits distillery Thailand

13. Red Bull Distillery (1988) Co., Ltd. Spirits distillery Thailand

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

118




(%) (%)

14. United Winery and Distillery Co., Ltd. Spirits distillery Thailand

15. Simathurakij Co., Ltd. Spirits distillery Thailand

16. Nateechai Co., Ltd. Spirits distillery Thailand

17. Luckchai Liquor Trading Co., Ltd. Spirits distillery Thailand

18. Sura Piset Thipparat Co., Ltd.* Spirits distillery Thailand

19. Thai Alcohol PCL. Alcohol distillery Thailand

20. Pomthip Co., Ltd. Beer distributor Thailand

21. Pomkit Co., Ltd. Beer distributor Thailand

22. Pomkung Co., Ltd. Beer distributor Thailand

23. Pomchok Co., Ltd. Beer distributor Thailand

24. Pomcharoen Co., Ltd. Beer distributor Thailand

25. Pomburapa Co., Ltd. Beer distributor Thailand

26. Num Yuk Co., Ltd. Spirits distributor Thailand

27. Num Kijjakarn Co., Ltd. Spirits distributor Thailand

28. Num Palang Co., Ltd. Spirits distributor Thailand

29. Num Muang Co., Ltd. Spirits distributor Thailand

30. Num Nakorn Co., Ltd. Spirits distributor Thailand

31. Num Thurakij Co., Ltd. Spirits distributor Thailand

32. Thipchalothorn Co., Ltd. Beer and sprits agency Thailand

33. Krittayabun Co., Ltd. Beer and sprits agency Thailand

34. Surathip Co., Ltd. Spirits agency Thailand

35. Sunthronpirom Co., Ltd. Spirits agency Thailand

36. Piromsurang Co., Ltd. Spirits agency Thailand

37. Bionic Humus Co., Ltd. Trading of fertilizer Thailand

38. Maharas Agri Co., Ltd. Japanese rice farming Thailand

39. Thai Molasses Co., Ltd. Trading of molasses Thailand

40. Additive Food Co., Ltd. Trading of feeds Thailand

41. Pan International (Thailand) Co., Ltd. Trading of equipment and supplies Thailand

42. Charun Business 52 Co., Ltd. Brick producer Thailand

43. Thai Cooperage Co., Ltd. Oak barrel producer Thailand

44. Bang-Na Logistic Co., Ltd. Trading of bottles Thailand

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

99.72 99.72

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00



119

45. Sahatipkarnkonsong Co., Ltd. Transportation Thailand

46. Thai Beverage Marketing Co., Ltd. Import and export spirits for

trading/ international marketing Thailand

47. Dhanasindhi Co., Ltd. Construction Thailand

48. Dhospaak Co., Ltd. Advertising agency Thailand

49. International Beverage Holdings Ltd. Holding company Hong Kong

50. Cosmos Brewery (Thailand) Co., Ltd. ** Beer brewery Thailand

51. T.C.C. Cosmo Corporation Ltd. ** Trademark holding Thailand

52. Beer Chang Co., Ltd. ** Trademark holding and production

of concentrate materials Thailand

53. Archa Beer Co., Ltd. ** Trademark holding and production

of concentrate materials Thailand

Indirect subsidiaries

54. Thai Thum Distillery Co., Ltd. # Trading of spirits Thailand

55. Sura Piset Sahasan Co., Ltd. # Production and distribution of spirits Thailand

56. Sura Piset Sampan Co., Ltd. # Production and distribution of spirits Thailand

57. Sura Piset Phatra Lanna Co., Ltd. # Production and distribution of spirits Thailand

58. Muangkij Co., Ltd. # Import of oak woods Thailand

59. Sint Ek Panich Co., Ltd. # Mining Thailand

60. Pan Alcohol Co., Ltd. # Production and distribution of vinegar Thailand

61. Banglen Agriculture Co., Ltd. # Agriculture Thailand

62. Vitayathan Co., Ltd. Environmental public relations Thailand

63. InterBev (Singapore) Limited Trading of alcoholic beverages Singapore

64. InterBev (Cambodia) Co., Ltd. Trading of alcoholic beverages Cambodia

65. InterBev Malaysia Sdn. Bhd. Trading of alcoholic beverages Malaysia

66. InterBev USA Inc. Trading of alcoholic beverages United States

of America

67. Best Spirits Company Limited*** Trading of alcoholic beverages Hong Kong

68. Pacific Spirits (UK) Limited*** Holding company United Kingdom



(%) (%)

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

99.90 99.90

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 100.00

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

(%) (%)

120




Subsidiaries of indirect subsidiaries**** (%) (%)

69. Blairmhor Limited Production and distribution of spirits United Kingdom

70. Inver House Distillers Limited Production and distribution of spirits United Kingdom

71. Blairmhor Distillers Limited Spirits distillery United Kingdom

72. Wee Beastie Limited Trading of alcoholic beverages United Kingdom

73. Speyburn-Glenlivet Distillery Company Limited # Dormant United Kingdom

74. The Knockdhu Distillery Company Limited # Dormant United Kingdom

75. The Pulteney Distillery Company Limited # Dormant United Kingdom

76. The Balblair Distillery Company Limited # Dormant United Kingdom

77. R. Carmichael & Sons Limited # Dormant United Kingdom

78. J MacArthur Junior & Company Limited # Dormant United Kingdom

79. Mason & Summers Limited # Dormant United Kingdom

80. Hankey Bannister Limited # Dormant United Kingdom

81. James Catto & Company Limited # Dormant United Kingdom

82. Glen Calder Blenders Limited # Dormant United Kingdom

83. Moffat & Towers Limited #

(Formerly: Blairmhor Blender Limited) Dormant United Kingdom

Associates of indirect subsidiaries*****

84. Liquorland Limited Off licences United Kingdom

85. Inver House Polska Limited # Spirits distillery Poland

86. Inver House Distribution SA # Spirits distillery France

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

100.00 -

49.00 -

40.00 -

50.00 -

(%) (%)

(%) (%)

* These subsidiaries were changed from indirect subsidiaries to direct subsidiaries in 2006.

** These subsidiaries were transferred from ultimate controlling shareholder controlled the business to the Company in 2005.

*** These subsidiaries were transferred from ultimate controlling shareholder controlled the business to the Company in 2006.

**** Subsidiaries of Pacific Spirits (UK) Limited

***** Associates of Pacific Spirits (UK) Limited

# These are currently non-trading.



121

2.Basisofpreparationofthefinancialstatements

The financial statements issued for Thai reporting purposes are prepared in the Thai language. This English translation of

the financial statements has been prepared for the convenience of readers not conversant with the Thai language.

The financial statements are prepared in accordance with Thai Accounting Standards (“TAS”) including related interpretations

and guidelines promulgated by the Federation of Accounting Professions (“FAP”) and with generally accepted accounting

principles in Thailand.

The financial statements are presented in Thai Baht, rounded in the notes to the financial statements to the nearest million,

unless otherwise stated. They are prepared on the historical cost basis except for the following assets which are stated at

fair value: land and investments in available-for-sale securities.

The preparation of financial statements in conformity with TAS requires management to make judgements, estimates and

assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The

estimates and associated assumptions are based on historical experience and various other factors that are believed to be

reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts

of assets and liabilities that are not readily apparent from other sources.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised

in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and

future periods, if the revision affects both current and future periods.

3.Significantaccountingpolicies

(a)Basisofconsolidation

The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the “Group”) and

the Group’s interest in associates.

Significant intra-group transactions between the Company and its subsidiaries are eliminated on consolidation.

Subsidiaries

Subsidiaries are those companies controlled by the Company. Control exists when the Company has the power, directly or

indirectly, to govern the financial and operating policies of a company so as to obtain benefits from its activities. The financial

statements of subsidiaries are included in the consolidated financial statements from the date that control commences until

the date that control ceases.

Associates

Associates are those companies in which the Group has significant influence, but not control, over the financial and operating

policies. The consolidated financial statements include the Group’s share of the total recognised gains and losses of

associates on an equity accounted basis, from the date that significant influence commences until the date that significant

influence ceases. When the Group’s share of losses exceeds its interest in an associate, the Group’s carrying amount is

122

reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or

constructive obligations or made payments on behalf of the associate.

Business combinations

Business combinations involving businesses under common control have been accounted for in a manner similar to a pooling

of interests, whereby the assets, liabilities and contingent liabilities transferred have been accounted for at book values.

Business combinations are accounted for using the purchase method. The cost of an acquisition is measured at the fair

value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs

directly attributable to the acquisition.

(b)Foreigncurrencies

Foreign currency transactions

Transactions in foreign currencies are translated to Thai Baht at the foreign exchange rates ruling at the date of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Thai Baht at the foreign

exchange rates ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of income.

Non-monetary assets and liabilities measured at cost in foreign currencies are translated to Thai Baht using the foreign

exchange rates ruling at the dates of the transactions.

Foreign entities

The assets and liabilities of foreign entities are translated to Thai Baht at the average foreign exchange rates ruling at the

balance sheet date.

The revenues and expenses of foreign entities are translated to Thai Baht at rates approximating the average foreign

exchange rates ruling at the dates of the transactions.

Foreign exchange differences arising on translation are recognised in a separate component of equity until disposal of the investments.

(c)Derivativefinancialinstruments

Forward exchange contracts are treated as off-balance sheet items.

(d)Cashandcashequivalents

Cash and cash equivalents comprise cash balances, call deposits and highly liquid short-term investments. Bank overdrafts

that are repayable on demand are a component of financing activities for the purpose of the statement of cash flows.

(e)Tradeandotheraccountsreceivable

Trade and other accounts receivables (including balances with related parties) are stated at their invoice value less allowance

for doubtful accounts.

123

The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future expectations of

customer payments. Bad debts are written off when incurred.

(f)Inventories

Inventories are stated at the lower of cost and net realisable value.

Cost of raw material, packaging materials, work in progress and finished goods is calculated using the weighted average

cost formula and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories

to their present location and condition. In the case of manufactured inventories and work-in-progress, cost includes an

appropriate share of overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to complete

and to make the sale.

(g)Investments

Investments in subsidiaries and associates

Investments in subsidiaries in the separate financial statements of the Company are accounted for using the equity method.

Investments in associates in the consolidated financial statements of the Company are accounted for using the equity method.

Investments in other equity securities

Marketable equity securities are classified as being available-for-sale and are stated at fair value, with any resultant gain or

loss being recognised directly in equity. The exceptions are impairment losses, which are recognised in the statement of income.

Equity securities which are not marketable are stated at cost less impairment losses.

The fair value of financial instruments classified as available-for-sale is determined as the quoted bid price at the balance

sheet date.

Disposal of investments

On disposal of an investment, the difference between net disposal proceeds and the carrying amount together with the

associated cumulative gain or loss that was reported in equity is recognised in the statement of income.

(h)Property,plantandequipment

Owned assets

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses except for land,

which is stated at its revalued amount. The revalued amount is the fair value.

124

Property that is being constructed or developed for future use is classified as property, plant and equipment and stated at

cost until construction or development is complete.

Leased assets

Leases in terms of which the Group substantially assumes all the risk and rewards of ownership are classified as finance

leases. Property, plant and equipment acquired by way of finance leases is capitalised at the lower of its fair value and the

present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment

losses. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a

constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to the statement of income.

Revalued assets

Revaluations are performed by independent professional valuers with sufficient regularity. The Group’s policy requires an

appraisal to be conducted every three to five years or when there are factors that might materially impact the value of the

land, to ensure that the carrying amount of these assets does not differ materially from that which would be determined

using fair values at the balance sheet date.

Any increase in value, on revaluation, is credited to equity under the heading “revaluation surplus” unless it offsets a previous

decrease in value recognised in the statement of income in respect of the same asset. A decrease in value is recognised in

the statement of income to the extent it exceeds an increase previously recognised in equity in respect of the same asset.

Upon disposal of a revalued asset, any related revaluation surplus is transferred from equity to retained earnings and is not

taken into account in calculating the gain or loss on disposal.

Subsequent expenditure

Subsequent expenditure relating to an item of property, plant and equipment is added to the carrying amount of the asset when

it is probable that the future economic benefits in excess of the originally assessed standard of performance of the existing asset

will flow to the Group. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.

Depreciation

Depreciation is charged to the statement of income on a straight-line basis over the estimated useful lives of each part of

an item of property, plant and equipment. The estimated useful lives are as follows:

Land improvement 5-20 years

Building and structures 5-40 years

Building improvements 5-20 years

Machinery and equipment 4-40 years

Oak barrels 10-20 years

Furniture, fixtures and office equipment 3-10 years

Vehicles 5-10 years

125

No depreciation is provided on freehold land and assets under construction.

(i)Intangibleassets

Goodwill

Goodwill in a business combination represents the excess of the cost of acquisition over the fair value of the Group’s share

of the identifiable net assets acquired.

Goodwill is stated at cost less accumulated amortisation and impairment loss.

Other intangible assets

Intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and impairment losses.

Amortisation

Amortisation is charged to the statement of income on a straight-line and unit of production basis over the estimated useful

lives of the assets. Intangible assets are amortised from the date that they are available for use. The estimated useful lives

are as follows:

Trademark 10 years (straight-line method)

Computer software 3-10 years (straight-line method)

Broadcasting rights 4 years (unit of production method)

Leasehold Lease term (straight-line method)

Goodwill 20 years (straight-line method)

(j)Impairment

The carrying amounts of the Group’s assets are reviewed at each balance sheet date to determine whether there is any

indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its

recoverable amount. The impairment loss is recognised in the statement of income unless it reverses a previous revaluation

credited to equity, in which case it is charged to equity.

(k)Interest-bearingliabilities

Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges. Subsequent to initial

recognition, interest-bearing liabilities are stated at amortised cost with any difference between cost and redemption value

being recognised in the statement of income over the period of the borrowings on an effective interest basis.

(l)Tradeandotheraccountspayable

Trade and other accounts payable (including balances with related parties) are stated at cost.

126

(m)Provisions

A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of

a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable

estimate can be made of the amount of the obligation. If the effect is material, provisions are determined by discounting

the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and,

where appropriate, the risks specific to the liability.

(n)Differencearisingfromcommoncontroltransactions

Difference arising from common control transactions relates to the restructuring of businesses under the common control of

the ultimate majority shareholder of the Company and arises from the difference between the cost of the combination and

the carrying amounts of net identifiable assets at the date of combination (except for businesses acquired that are not under

common control, net identifiable assets are measured at the fair value). The Company recognises the difference arising

from common control transactions under shareholders’ equity until disposal of the investment.

(o)Revenue

Revenue excludes value added taxes or other sales taxes and is arrived at after deduction of trade discounts.

Sale of goods and services rendered

Revenue is recognised in the statement of income when the significant risks and rewards of ownership have been transferred

to the buyer. No revenue is recognised if there is continuing management involvement with the goods or there are significant

uncertainties regarding recovery of the consideration due, associated costs, or the probable return of goods. Service income is

recognised as services are provided.

When the outcome of a contract for the rendering of services can be estimated reliably, contract revenue is recognised in

the statement of income by reference to the stage of completion of the contract activity at the balance sheet date. When

the outcome of the contract cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised

that are recoverable.

Construction contracts

When the outcome of a construction contract can be estimated reliably, contract revenue and expenses are recognised in

the statement of income by reference to the stage of completion of the contract activity at the balance sheet date. The stage

of completion is assessed the percentage of completion method, which is measured by the project engineer. When it is

probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately as an

expense in the statement of income.

Interest and dividend income

Interest income is recognised in the statement of income as it accrues. Dividend income is recognised in the statement of

income on the date the Company’s / the Group’s right to receive payments is established which in the case of quoted

securities is usually the ex-dividend date.

127

(p)Expenses

Operating leases

Payments made under operating leases are recognised in the statement of income on a straight line basis over the term of

the lease. Lease incentives received are recognised in the statement of income as an integral part of the total lease payments

made. Contingent rentals are charged to the statement of income in the accounting period in which they are incurred.

Finance costs

Interest expenses and similar costs are charged to the statement of income in the period in which they are incurred, except

to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset

which necessarily takes a substantial period of time to be prepared for its intended use or sale. The interest component of

finance lease payments is recognised in the statement of income using the effective interest rate method.

Research and development

Research and development costs, including costs of developing new drinks products and package design is expensed in

the period in which it is incurred.

Other income and expenses are recognised on an accrual basis.

(q)Incometax

Income tax on the profit or loss for the year comprises current tax. Current tax is the expected tax payable on the taxable

income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax

payable in respect of previous years.

4.Businessrestructuring

The Company was formed in 2003 to combine the separate beverages businesses of the ultimate controlling shareholder

group, the Siriwadhanabhakdi family, which were held as part of the operations of 89 separate companies, into a single group

of companies. Of these, 65 businesses were transferred between 2003 and 2004, four businesses were transferred during

2005 and 20 businesses were transferred during 2006. Prior to the restructuring these business were under the common

control of the ultimate controlling shareholder of the Company.

As the same ultimate controlling shareholder controlled the businesses and operations transferred to the Company both before

and after the recent restructuring, the consolidated financial statements have been prepared on the basis of a business

combination involving entities and businesses under common control. Accordingly, the transfer of businesses and operations

has been accounted for in a manner similar to a pooling of interests and the assets, liabilities and contingent liabilities

transferred have been accounted for at book values.

The difference between the cost of the combination and the carrying amounts of net identifiable assets at the date of

combination (except for businesses acquired that were not under common control, whereby net identifiable assets were

measured at their fair value) was recorded as “Difference arising from common control transactions”, which is shown as

a reduction in shareholders’ equity.

128

In preparing the consolidated financial statements, those assets, liabilities, revenues and expenses that are clearly applicable

to the businesses and operations transferred are included in the consolidated financial statements and are stated at their

carrying values, after adjusting for intercompany transactions and transactions with the ultimate controlling shareholder.

Expenses for which the specific identification method was not practical have been allocated on a percentage of sales basis.

Management believes that this is a reasonable basis of estimating what the expenses would have been on a standalone basis.

In 2005, the Group entered into four transfer transactions involving entities under common control, namely the transfer of

Cosmos Brewery (Thailand) Co., Ltd., T.C.C. Cosmo Corporation Ltd., Beer Chang Co., Ltd. and Archa Beer Co., Ltd. from

the ultimate controlling shareholder, who controlled the businesses and operations of the four companies transferred to the

Group both before and after the transfer. Accordingly, the transfer of businesses and operations has been accounted for in

a manner similar to a pooling of interests, as previously applied to similar transactions in 2003. As such, the Company has

prepared the consolidated financial statements as if the transfers were completed at the beginning of the earliest period presented.

The result of the transfer was an increase in “Difference arising from common control transactions” of Baht 6,326.65 million.

This represents the difference between consideration of Baht 9,646 million paid to the ultimate controlling shareholder of

the Group and the carrying amounts of net identifiable assets of the four companies at the date of the transfer of Baht

3,319.35 million.

Subsequently, in 2006, a further 20 entities were transferred to the Group in transactions involving entities under common

control, namely Pacific Spirits (UK) Limited (consisting of 15 subsidiaries and 3 associates) and Best Spirits Company Limited.

The result of the transfer was an increase in “Difference arising from common control transactions” of Baht 1,162.14

million. This represents the difference between consideration of Baht 1,505.24 million paid to the ultimate controlling

shareholder of the Group and the carrying amounts of net identifiable assets of the two companies at the date of the transfer

of Baht 343.10 million.

During the year 2006 and 2005, prior to being transferred to the Company, certain businesses, now subsidiaries of the Company,

increased their share capital in the amount of Baht 27.04 million and Baht 46.59 million, respectively. The currency translation

change reserves of those subsidiaries amounted to Baht 8.54 million and Baht 17.69 million, respectively. The profits (losses)

of such entities transferred prior to restructuring amounted to Baht (23.87) million and Baht 204.47 million, respectively.

Restatement

The consolidated financial statements for the year ended 31 December 2005 have been restated as a result of 20 transactions

involving entities under common control, which occurred in 2006 and were accounted for in a manner similar to a pooling

of interest method. The effects of the restatement on the consolidated balance sheet as at 31 December 2005 and the

consolidated statement of income for the year ended 31 December 2005 are summarised as follows:

129


Consolidated2005

81,211.38 5,925.65 87,137.03

49,845.35 5,577.17 55,422.52

(15,979.26) 348.47 (15,630.79)

31,366.03 348.47 31,714.50

10,409.37 (72.12) 10,337.25

0.47 - 0.47

Balance sheet

Total assets

Total liabilities

Difference arising from common control transactions

Shareholders’ equity

(in million Baht)

Balance previously Effect of the Balance after reported restatement restatement

(in million Baht)

Results previously Effect of the Results after reported restatement restatement

Statement of income

Net profit

Basic earnings per share (Baht)

5.Relatedpartytransactionsandbalances

Related parties are those parties linked to the Group and the Company by common shareholders or directors. Transactions

with related parties are conducted at prices based on market prices or, where no market prices exist, at contractually agreed prices.

The pricing policies for particular types of transactions are explained further below:

Pricingpolicies

Sale of finished goods Agreed prices which approximate market prices

Purchase of raw materials Agreed prices which approximate market prices

Purchase of services Contractual prices

Purchase and sale of property, plant and equipment Contractual prices

Purchase and sale of investments Contractual prices

Interest income and expense Rate as mutually agreed by shareholders with reference

interest rates quoted by domestic commercial banks



130


Transactions for the years ended 31 December 2006 and 2005 with related parties were summarised as follows:

145.84 382.22 - -

32.63 9.03 3,432.47 2,349.83

0.02 27.45 843.88 615.87

18.30 24.96 4.87 1.92

23.68 22.04 9,128.59 9,812.31

4,800.28 4,067.74 - -

1.99 10.70 - -

175.23 235.86 - -

109.00 103.13 885.51 356.91

274.21 249.82 - -

264.76 250.93 254.73 218.04

- 1,108.98 - -

- 474.83 - -

0.66 52.02 - -

1,505.24 9,646.00 - 9,619.91

- - 110.00 -

- 491.35 - -

3.76 17.36 - 27.85

Revenues

Revenue from sales

Service income

Interest income

Other income

Share of profits from investments accounted for

using the equity method

Expenses

Purchase of raw materials and packaging

Production service fees

Overhead costs

Interest expense

Other expenses

Directors’ remuneration

Others

Sale of investments

Sale of property

Sale of plant and equipment

Consideration paid for common control transactions

Purchase of investments

Purchase of property

Purchase of equipment and others

(in million Baht)

2006 2005 2006 2005 Consolidated The Company



131

Balances as at 31 December 2006 and 2005 with related parties were as follows:


(being part of trade accounts receivable in the balance sheets)

6.67 8.83 - -

5.74 - - -

3.85 6.49 - -

2.57 - - -

- 34.15 - -

2.25 1.80 - -

21.08 51.27 _ _

PS Recycle Co., Ltd.

Madrigal Trading Ltd.

Pisetkij Co., Ltd.

Oishi Trading Co., Ltd.

U W D Marketing Co., Ltd.

Others

Total

(in million Baht)


(in m

illion

Bah

t)

- -

- -

- -

3,62

5.70

13

5.86

3,

761.

56

4,69

3.50

65

.20

4,75

8.70

- -

- -

- -

- 14

5.64

14

5.64

-

67.3

1 67

.31

- -

- -

- -

- 46

.67

46.6

7 -

97.2

9 97

.29

-

- -

- -

- -

11.7

4 11

.74

- 15

.26

15.2

6

- -

- -

- -

- 4.

39

4.39

-

5.19

5.

19

- -

- -

- -

- 3.

24

3.24

-

3.73

3.

73

- -

- -

- -

412.

00

6.40

41

8.40

1,

036.

00

10.8

7 1,

046.

87

- -

- -

- -

760.

20

1.82

76

2.02

-

- -

- -

- -

- -

1,91

9.00

44

.85

1,96

3.85

2,

261.

80

20.8

3 2,

282.

63

- -

- -

- -

- 12

.67

12.6

7 -

14.7

4 14

.74

- -

- -

- -

- 12

.52

12.5

2 -

14.4

1 14

.41

- -

- -

- -

329.

60

14.8

6 34

4.46

66

6.10

18

.83

684.

93

- -

- -

- -

- 10

.53

10.5

3 -

12.8

0 12

.80

-

- -

- -

- -

6.69

6.

69

- 9.

04

9.04

- -

- -

- -

2,96

1.80

32

.33

2,99

4.13

2,

565.

80

16.1

6 2,

581.

96

- -

- -

- -

670.

00

8.74

67

8.74

22

0.00

2.

59

222.

59

- -

- -

- -

694.

40

11.5

9 70

5.99

57

5.00

13

.87

588.

87

- -

- -

- -

1,16

0.40

10

.64

1,17

1.04

97

5.40

4.

80

980.

20

- -

- -

- -

680.

00

13.9

1 69

3.91

6

0.00

2.

53

62.5

3

- -

- -

- -

85.3

0 20

2.47

28

7.77

-

130.

70

130.

70

- -

- -

- -

- 19

0.32

19

0.32

-

132.

09

132.

09

- -

- -

- -

- 71

.60

71.6

0 -

119.

79

119.

79

- -

- -

- -

- 61

.35

61.3

5 -

30.1

4 30

.14

- -

- -

- -

- 14

.00

14.0

0 -

28.3

1 28

.31

- -

- -

- -

- 66

.66

66.6

6 -

84.2

4 84

.24

- -

- -

- -

- 30

.18

30.1

8 -

44.0

4 44

.04

Subs

idiar

iesBe

er T

hai (

1991

) PCL

.Be

er T

hip B

rewe

ry (

1991

) Co.

, Ltd

.Sa

ngso

m C

o., L

td.

Fuen

gfua

nant

Co.

, Ltd

.Th

anap

akdi

Co.,

Ltd.

Mon

gkols

amai

Co.,

Ltd.

Kanc

hana

singk

orn

Co.,

Ltd.

Sura

Pise

t Thip

para

t Co.

, Ltd

.Su

ra B

angy

ikhan

Co.

, Ltd

.At

himar

t Co.

, Ltd

.S.

S. K

arns

ura

Co.,

Ltd.

Kank

wan

Co.,

Ltd.

Thep

arun

otha

i Co.

, Ltd

.Un

ited

Wine

ry a

nd D

istille

ry C

o., L

td.

Red

Bull D

istille

ry (1

988)

Co.

, Ltd

.Si

mat

hura

kij C

o., L

td.

Nate

echa

i Co.

, Ltd

.Lu

ckch

ai Liq

uor T

radin

g Co

., Lt

d.Th

ai Al

coho

l PCL

.Th

ipcha

lotho

rn C

o., L

td.

Kritt

ayab

un C

o., L

td.

Sura

thip

Co.,

Ltd.

Sunt

hron

pirom

Co.

, Ltd

.Pi

rom

sura

ng C

o., L

tdNu

m Y

uk C

o., L

td.

Num

Thu

rakij

Co.

, Ltd

.

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

to a

nd

Amou

nts

Due

from

Rel

ated

Par

ties

- -

- -

- -

-46

.67

46.6

7 -

65.0

2 65

.02

- -

- -

- -

- 24

.55

24.5

5 -

34.0

1 34

.01

- -

- -

- -

- 38

.91

38.9

1 -

55.6

0 55

.60

-

- -

- -

- -

89.3

6 89

.36

- 11

9.29

11

9.29

- -

- -

- -

- 37

.32

37.3

2 -

11.0

6 11

.06

- -

- -

- -

- 10

6.68

10

6.68

-

15.9

6 15

.96

- -

- -

- -

- 39

.84

39.8

4 -

9.98

9.

98-

- -

- -

- -

47.8

1 47

.81

- 10

.74

10.7

4-

- -

- -

- -

20.9

2 20

.92

- 5.

85

5.85

- -

- -

- -

- 35

.35

35.3

5 -

7.80

7.

80-

- -

- -

- 23

.00

0.12

23

.12

17.0

0 0.

05

17.0

5-

- -

- -

-13

.30

0.06

13

.36

3.80

0.

02

3.82

- -

- -

- -

50.0

0-

50.0

0 12

0.00

-

120.

00-

- -

- -

- -

- -

185.

50

0.02

18

5.52

-

- -

- -

- -

- -

310.

00

1.32

31

1.32

- -

- -

- -

- -

-50

.00

0.21

50

.21

- -

- -

- -

1,48

3.77

8.29

1,

492.

06

- -

-_

__

__

_14

,868

.47

1,66

7.55

16

,536

.02

13,7

39.9

0 1,

301.

69

15,0

41.5

9

Subs

idiar

ies (c

ontin

ued)

Num

Mua

ng C

o., L

td.

Num

Nak

orn

Co.,

Ltd.

Num

Pala

ng C

o., L

td.

Num

Kijja

karn

Co.

, Ltd

.Po

mth

ip Co

., Lt

d.Po

mkit

Co.

, Ltd

.Po

mku

ng C

o., L

td.

Pom

chok

Co.

, Ltd

.Po

mch

aroe

n Co

., Lt

d.Po

mbu

rapa

Co.

, Ltd

.Bi

onic

Hum

us C

o., L

td.

Mah

aras

Agr

i Co.

, Ltd

.Sa

hatip

karn

kons

ong

Co.,

Ltd.

Dhos

paak

Co.

, Ltd

.Ba

ng-N

a Lo

gistic

Co.

, Ltd

.Th

ai Be

vera

ge M

arke

ting

Co.,

Ltd.

Inte

rnat

ional

Beve

rage

Hold

ings

Ltd.

Tota

l sub

sidia

ries

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

to a

nd

Amou

nts

Due

from

Rel

ated

Par

ties

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

- -

- -

- -

-46

.67

46.6

7 -

65.0

2 65

.02

- -

- -

- -

- 24

.55

24.5

5 -

34.0

1 34

.01

- -

- -

- -

- 38

.91

38.9

1 -

55.6

0 55

.60

-

- -

- -

- -

89.3

6 89

.36

- 11

9.29

11

9.29

- -

- -

- -

- 37

.32

37.3

2 -

11.0

6 11

.06

- -

- -

- -

- 10

6.68

10

6.68

-

15.9

6 15

.96

- -

- -

- -

- 39

.84

39.8

4 -

9.98

9.

98-

- -

- -

- -

47.8

1 47

.81

- 10

.74

10.7

4-

- -

- -

- -

20.9

2 20

.92

- 5.

85

5.85

- -

- -

- -

- 35

.35

35.3

5 -

7.80

7.

80-

- -

- -

- 23

.00

0.12

23

.12

17.0

0 0.

05

17.0

5-

- -

- -

-13

.30

0.06

13

.36

3.80

0.

02

3.82

- -

- -

- -

50.0

0-

50.0

0 12

0.00

-

120.

00-

- -

- -

- -

- -

185.

50

0.02

18

5.52

-

- -

- -

- -

- -

310.

00

1.32

31

1.32

- -

- -

- -

- -

-50

.00

0.21

50

.21

- -

- -

- -

1,48

3.77

8.29

1,

492.

06

- -

-_

__

__

_14

,868

.47

1,66

7.55

16

,536

.02

13,7

39.9

0 1,

301.

69

15,0

41.5

9

Subs

idiar

ies (c

ontin

ued)

Num

Mua

ng C

o., L

td.

Num

Nak

orn

Co.,

Ltd.

Num

Pala

ng C

o., L

td.

Num

Kijja

karn

Co.

, Ltd

.Po

mth

ip Co

., Lt

d.Po

mkit

Co.

, Ltd

.Po

mku

ng C

o., L

td.

Pom

chok

Co.

, Ltd

.Po

mch

aroe

n Co

., Lt

d.Po

mbu

rapa

Co.

, Ltd

.Bi

onic

Hum

us C

o., L

td.

Mah

aras

Agr

i Co.

, Ltd

.Sa

hatip

karn

kons

ong

Co.,

Ltd.

Dhos

paak

Co.

, Ltd

.Ba

ng-N

a Lo

gistic

Co.

, Ltd

.Th

ai Be

vera

ge M

arke

ting

Co.,

Ltd.

Inte

rnat

ional

Beve

rage

Hold

ings

Ltd.

Tota

l sub

sidia

ries

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

to a

nd

Amou

nts

Due

from

Rel

ated

Par

ties

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

-

- -

40.8

5 3.

10

43.9

5 -

- -

- -

-

-

12.0

3 12

.03

- 10

.50

10.5

0 -

- -

- -

-

-

7.97

7.

97

- 7.

93

7.93

-

- -

- -

-

-

6.52

6.

52

- 3.

86

3.86

-

- -

- -

-

-6.

67

6.67

-

7.03

7.

03

- -

- -

- -

-

- -

- 38

.50

38.5

0 -

- -

- -

-

-

0.01

0.

01

- 21

.75

21.7

5 -

- -

- -

-

-

1.96

1.

96

- 3.

25

3.25

-

- -

- -

-

-

6.87

6.

87

- 1.

22

1.22

-

- -

- -

-

-

1.46

1.

46

- 0.

44

0.44

-

- -

- -

-

-

1.81

1.

81

- 1.

21

1.21

-

- -

- -

-

-

1.75

1.

75

- 0.

06

0.06

-

- -

- -

-

-

3.55

3.

55

- 0.

30

0.30

-

- -

- -

-

-

13.0

4 13

.04

- -

- -

- -

- -

-

-

- -

- 2.

56

2.56

-

- -

- -

-

- -

- -

13.3

0 13

.30

- -

- -

- -

-

- -

- 1.

18

1.18

-

- -

- -

-

-

0.69

0.

69

- 0.

64

0.64

-

- -

- -

-

_64

.33

64.3

3 40

.85

116.

83

157.

68_

__

__

_

_

64.3

3 64

.33

40.8

5 11

6.83

15

7.68

14

,868

.47

1,66

7.55

16

,536

.02

13,7

39.9

0 1,

301.

69

15,0

41.5

9

Relat

ed c

ompa

nies

Plas

tic A

gach

on C

o., L

td.

The

Suph

anbu

ri Su

gar I

ndus

try C

o., L

td.

The

Cholb

uri S

ugar

Cor

p. L

td.

The

Mae

Wan

g Su

gar I

ndus

try C

o., L

td.

The

Utta

radit

Sug

ar In

dust

ry C

o., L

td.

Sura

sate

(200

5) C

o., L

td.

Pade

rmch

ai Co

., Lt

d.TC

C AR

GO C

o., L

td.

Pise

tkij C

o., L

td.

Thai

Glas

s In

dust

ries

Co.,

Ltd.

Thai

Char

oen

Insu

ranc

e PC

L.So

uthe

ast A

ssur

ance

(200

0) C

o., L

td.

New

Noble

Pro

perty

And

Loa

n Fu

ndDy

nam

ic As

sets

Pro

perty

and

Loa

n Fu

ndBe

st S

pirits

(Chin

a) C

o., L

td.

T.C.

C. N

ingbo

Bes

t Spir

its C

o., L

td.

Sukh

otha

i Mar

ketin

g Co

., Lt

d.Ot

hers

Tota

l rel

ated

com

pani

esTo

tal

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

to a

nd

Amou

nts

Due

from

Rel

ated

Par

ties

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

Movements during the years on short-term loans to related parties were as follows:

(in million Baht)


135


40.85 417.69 13,739.90 15,395.90

- 6,483.15 13,572.80 15,588.28

(40.85) (6,859.99) (12,444.23) (17,244.28)

_ 40.85 14,868.47 13,739.90

At 1 January

Increase

Decrease

At31December

553.92 273.74 - -

126.04 97.00 - -

59.58 58.78 - -

74.11 75.98 - -

3.35 - - -

- 8.15 - -

2.31 7.47 - -

819.31 521.12 _ _

Berli Jucker PCL.

Thai Beverage Can Ltd.

Pisetkij Co., Ltd.

PS Recycle Co., Ltd.

The Suphanburi Sugar Industry Co., Ltd.

Yunnan Yunlinquan Liquor Co., Ltd.

Others

Total

(in million Baht)



(being part of trade accounts payable in the balance sheets)



-

- -

- -

- 3,

489.

00

17.7

8 3,

506.

78

990.

00

3.08

99

3.08

-

- -

- -

- 1,

052.

00

4.58

1,

056.

58

2,26

3.00

9.

05

2,27

2.05

-

- -

- -

- 20

0.00

0.

80

200.

80

140.

00

0.55

14

0.55

-

- -

- -

- 13

0.00

0.

28

130.

28

20.0

0 0.

03

20.0

3

-

- -

- -

- 92

.00

0.08

92

.08

135.

00

0.57

13

5.57

-

- -

- -

- 19

3.40

0.

59

193.

99

180.

00

0.71

18

0.71

-

- -

- -

- 39

6.00

1.

46

397.

46

329.

60

1.40

33

1.00

-

- -

- -

- 28

6.00

1.

14

287.

14

311.

00

0.95

31

1.95

-

- -

- -

- 39

4.00

2.

01

396.

01

212.

00

0.90

21

2.90

-

- -

- -

- 68

6.00

2.

36

688.

36

- -

-

-

- -

- -

- 47

3.40

3.

57

476.

97

710.

00

3.03

71

3.03

-

- -

- -

- 59

4.30

2.

68

596.

98

916.

00

3.56

91

9.56

-

- -

- -

- 1,

201.

30

5.66

1,

206.

96

1,05

3.80

4.

23

1,05

8.03

-

- -

- -

- 77

2.50

3.

78

776.

28

795.

00

3.19

79

8.19

-

- -

- -

- 12

0.00

0.

33

120.

33

352.

00

0.37

35

2.37

-

- -

- -

- 17

5.30

0.

66

175.

96

284.

00

0.74

28

4.74

-

- -

- -

- 17

0.00

0.

87

170.

87

530.

60

1.19

53

1.79

-

- -

- -

- 12

5.80

0.

30

126.

10

171.

50

0.41

17

1.91

-

- -

- -

- 94

.70

0.05

94

.75

236.

00

0.54

23

6.54

-

- -

- -

- 1,

248.

95

5.48

1,

254.

43

1,21

1.10

4.

30

1,21

5.40

-

- -

- -

- 83

.00

0.10

83

.10

60.0

0 0.

07

60.0

7

-

- -

- -

- 17

6.50

0.

80

177.

30

9.50

0.

04

9.54

-

- -

- -

- 2,

097.

00

10.6

9 2,

107.

69

2,05

0.00

7.

08

2,05

7.08

-

- -

- -

- 44

4.80

2.

09

446.

89

388.

00

1.35

38

9.35

-

- -

- -

- 1,

603.

10

6.88

1,

609.

98

255.

00

0.46

25

5.46

Subs

idiar

iesBe

er T

hip B

rewe

ry (

1991

) Co.

, Ltd

.Sa

ngso

m C

o., L

td.

Fuen

gfua

nant

Co.

, Ltd

.Th

anap

akdi

Co.,

Ltd.

Mon

gkols

amai

Co.,

Ltd.

Athim

art C

o., L

td.

S.S.

Kar

nsur

a Co

., Lt

d.Th

epar

unot

hai C

o., L

td.

Unite

d W

inery

and

Dist

illery

Co.

, Ltd

.Th

ipcha

lotho

rn C

o., L

td.

Kritt

ayab

un C

o., L

td.

Sura

thip

Co.,

Ltd.

Sunt

hron

pirom

Co.

, Ltd

.Pi

rom

sura

ng C

o., L

tdNu

m Y

uk C

o., L

td.

Num

Thu

rakij

Co.

, Ltd

.Nu

m M

uang

Co.

, Ltd

.Nu

m N

akor

n Co

., Lt

d.Nu

m P

alang

Co.

, Ltd

.Nu

m K

ijjaka

rn C

o., L

td.

Thai

Mola

sses

Co.

, Ltd

.Th

ai Co

oper

age

Co.,

Ltd.

Cosm

os B

rewe

ry (T

haila

nd) C

o., L

td.

Pom

thip

Co.,

Ltd.

Pom

kit C

o., L

td.

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

from

and

Am

ount

s Du

e to

Rel

ated

Par

ties

(in m

illion

Bah

t)

-

- -

- -

- 31

0.45

1.

50

311.

95

205.

00

0.63

20

5.63

-

- -

- -

- 57

3.00

2.

16

575.

16

567.

20

2.15

56

9.35

-

- -

- -

- 12

3.30

0.

72

124.

02

20.0

0 0.

01

20.0

1

-

- -

- -

- 49

6.30

2.

16

498.

46

281.

30

0.83

28

2.13

-

- -

- -

- 25

.00

0.13

2

25.1

3 -

-

-

- -

- -

- 10

0.00

0.

51

100.

51

128.

00

0.49

12

8.49

-

- -

- -

- 20

.00

0.10

20

.10

- -

-

-

- -

- -

- 55

.00

0.42

55

.42

50.0

0 0.

27

50.2

7

-

- -

- -

- 40

.00

12.7

6 52

.76

- 6.

22

6.22

-

- -

- -

- 0.

32

0.32

-

- -

-_

__

__

_17

,356

.10

93.4

4 17

,449

.54

15,5

40.6

0 60

.76

15,6

01.3

6

- 9.

90

9.90

-

6.17

6.

17

- 5.

56

5.56

-

0.34

0.

34-

16.6

1 16

.61

- 13

.32

13.3

2 -

1.75

1.

75

- 2.

60

2.60

- -

- -

6.38

6.

38

- -

- -

6.38

6.

38-

10.8

9 10

.89

- 0.

32

0.32

-

- -

- -

-

- -

- -

6.24

6.

24

- -

- -

- -

- 41

.32

41.3

2 -

0.69

0.

69

- -

- -

- -

- 6.

67

6.67

-

0.03

0.

03

- -

- -

- -

- 3.

53

3.53

- -

--

- -

- -

-

- 1.

49

1.49

- -

--

- -

- -

-

4,61

5.23

12

8.62

4,

743.

85

4,01

5.39

11

5.04

4,

130.

43

- -

- -

- -

-

3.53

3.

53

- 1.

28

1.28

-

0.18

0.

18_

0.30

0.

304,

615.

23

222.

56

4,83

7.79

4,

015.

39

149.

47

4,16

4.86

_7.

49

7.49

_9.

62

9.62

4,61

5.23

22

2.56

4,

837.

79

4,01

5.39

14

9.47

4,

164.

86

17,3

56.1

0 10

0.93

17

,457

.03

15,5

40.6

0 70

.38

15,6

10.9

8

Subs

idiar

ies (c

ontin

ued)

Pom

kung

Co.

, Ltd

.Po

mch

ok C

o., L

td.

Pom

char

oen

Co.,

Ltd.

Pom

bura

pa C

o., L

td.

Addit

ive F

ood

Co.,

Ltd.

Beer

Cha

ng C

o., L

td.

Arch

a Be

er C

o., L

td.

Pan

Inte

rnat

ional(

Thail

and)

Co.

, Ltd

.Dh

ospa

ak C

o., L

td.

Inte

rnat

ional

Beve

rage

Hold

ings

Ltd.

Tota

l sub

sidia

ries

Relat

ed c

ompa

nies

T.C.

C. T

echn

ology

Co.

, Ltd

.So

uth

East

Cap

ital C

o., L

td.

T.C.

C. P

rope

rty D

evelo

pmen

t Co.

, Ltd

.Pl

aza

Athe

nee

Hote

l (Th

ailan

d) C

o., L

td.

Thai

Char

oen

Insu

ranc

e PC

L.So

uthe

ast A

ssur

ance

(200

0) C

o., L

td.

Quee

n’s

Park

Hot

el Gr

oup

Co.,

Ltd.

Inda

ra In

sura

nce

Publi

c Co

., Lt

d.M

ae P

ing H

otel

(198

8) L

imite

dGr

eat O

riole

Limite

dOt

hers

Tota

l rel

ated

com

pani

esTo

tal

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

from

and

Am

ount

s Du

e to

Rel

ated

Par

ties

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

-

- -

- -

- 31

0.45

1.

50

311.

95

205.

00

0.63

20

5.63

-

- -

- -

- 57

3.00

2.

16

575.

16

567.

20

2.15

56

9.35

-

- -

- -

- 12

3.30

0.

72

124.

02

20.0

0 0.

01

20.0

1

-

- -

- -

- 49

6.30

2.

16

498.

46

281.

30

0.83

28

2.13

-

- -

- -

- 25

.00

0.13

2

25.1

3 -

-

-

- -

- -

- 10

0.00

0.

51

100.

51

128.

00

0.49

12

8.49

-

- -

- -

- 20

.00

0.10

20

.10

- -

-

-

- -

- -

- 55

.00

0.42

55

.42

50.0

0 0.

27

50.2

7

-

- -

- -

- 40

.00

12.7

6 52

.76

- 6.

22

6.22

-

- -

- -

- 0.

32

0.32

-

- -

-_

__

__

_17

,356

.10

93.4

4 17

,449

.54

15,5

40.6

0 60

.76

15,6

01.3

6

- 9.

90

9.90

-

6.17

6.

17

- 5.

56

5.56

-

0.34

0.

34-

16.6

1 16

.61

- 13

.32

13.3

2 -

1.75

1.

75

- 2.

60

2.60

- -

- -

6.38

6.

38

- -

- -

6.38

6.

38-

10.8

9 10

.89

- 0.

32

0.32

-

- -

- -

-

- -

- -

6.24

6.

24

- -

- -

- -

- 41

.32

41.3

2 -

0.69

0.

69

- -

- -

- -

- 6.

67

6.67

-

0.03

0.

03

- -

- -

- -

- 3.

53

3.53

- -

--

- -

- -

-

- 1.

49

1.49

- -

--

- -

- -

-

4,61

5.23

12

8.62

4,

743.

85

4,01

5.39

11

5.04

4,

130.

43

- -

- -

- -

-

3.53

3.

53

- 1.

28

1.28

-

0.18

0.

18_

0.30

0.

304,

615.

23

222.

56

4,83

7.79

4,

015.

39

149.

47

4,16

4.86

_7.

49

7.49

_9.

62

9.62

4,61

5.23

22

2.56

4,

837.

79

4,01

5.39

14

9.47

4,

164.

86

17,3

56.1

0 10

0.93

17

,457

.03

15,5

40.6

0 70

.38

15,6

10.9

8

Subs

idiar

ies (c

ontin

ued)

Pom

kung

Co.

, Ltd

.Po

mch

ok C

o., L

td.

Pom

char

oen

Co.,

Ltd.

Pom

bura

pa C

o., L

td.

Addit

ive F

ood

Co.,

Ltd.

Beer

Cha

ng C

o., L

td.

Arch

a Be

er C

o., L

td.

Pan

Inte

rnat

ional(

Thail

and)

Co.

, Ltd

.Dh

ospa

ak C

o., L

td.

Inte

rnat

ional

Beve

rage

Hold

ings

Ltd.

Tota

l sub

sidia

ries

Relat

ed c

ompa

nies

T.C.

C. T

echn

ology

Co.

, Ltd

.So

uth

East

Cap

ital C

o., L

td.

T.C.

C. P

rope

rty D

evelo

pmen

t Co.

, Ltd

.Pl

aza

Athe

nee

Hote

l (Th

ailan

d) C

o., L

td.

Thai

Char

oen

Insu

ranc

e PC

L.So

uthe

ast A

ssur

ance

(200

0) C

o., L

td.

Quee

n’s

Park

Hot

el Gr

oup

Co.,

Ltd.

Inda

ra In

sura

nce

Publi

c Co

., Lt

d.M

ae P

ing H

otel

(198

8) L

imite

dGr

eat O

riole

Limite

dOt

hers

Tota

l rel

ated

com

pani

esTo

tal

Cons

olida

ted

The

Com

pany

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2006

Shor

t-te

rmloa

ns to

Amou

nts

due

from

Tota

l

2005

Shor

t-Te

rm L

oans

from

and

Am

ount

s Du

e to

Rel

ated

Par

ties

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

138

Movements during the years on short-term loans from related parties were as follows:

(in million Baht)


4,015.39 4,505.21 15,540.60 7,684.20

630.35 46.21 21,391.94 22,795.80

(30.51) (536.03) (19,576.44) (14,939.40)

4,615.23 4,015.39 17,356.10 15,540.60

At 1 January

Increase

Decrease

At31December

6.Cashandcashequivalents

(in million Baht)


32.55 22.51 0.02 0.02

1,887.03 3,375.48 15.60 18.54

1,919.58 3,397.99 15.62 18.56

Cash on hand

Cash at banks

Total

7.Tradeaccountsreceivable,net

(in million Baht)


21.08 51.27 - -

1,320.74 1,431.11 - -

(23.89) (18.73) - -

1,317.93 1,463.65 _ _

Trade accounts receivable from related parties

Trade accounts receivable from other parties

Less allowance for doubtful accounts

Total

(in million Baht)


957.98 1,123.96 - -

343.07 242.86 - -

17.15 39.33 - -

18.42 39.06 - -

5.20 37.17 - -

1,341.82 1,482.38 - -

(23.89) (18.73) - -

1,317.93 1,463.65 _ _

Within credit terms

Overdue:

Less than 3 months

3 - 6 months

6 - 12 months

Over 12 months


Net

Note

5

The normal credit term granted by the Group is 7 - 150 days.

1,379.46 921.61 - -

523.61 516.43 - -

8,160.89 7,065.93 - -

3,406.65 3,243.37 - -

13,235.05 15,958.20 - -

880.66 279.86 - -

488.81 540.25 - -

240.03 221.37 - -

28,315.16 28,747.02 _ _

139

687.75 1,553.55 - -

380.58 260.80 8.95 8.06

374.23 103.35 0.19 0.09

151.77 148.44 - -

102.51 168.35 - -

55.75 133.11 0.84 0.75

51.87 33.63 - -

30.52 43.32 - -

37.14 44.23 7.01 -

9.56 74.74 - -

50.66 23.50 - 0.66

1,932.34 2,587.02 16.99 9.56

(18.10) (14.02) _ _

1,914.24 2,573.00 16.99 9.56

Prepaid excise tax

Refundable VAT

Deposits

Prepaid property tax

Refundable excise tax

Prepaid expenses

Prepaid income tax

Withholding tax

Advanced payments

Advanced payments for construction

Others


Net

(in million Baht)


Raw materials

Packaging materials

Maturing spirits

Work in progress

Finished goods

- at cost

- at net realisable value

Spare parts

Others

Total

(in million Baht)


As at 31 December 2005, certain finished goods of subsidiaries with a carrying amount of Baht 4,054.76 million were

pledged as security for short-term loans from financial institutions and a long-term loan as disclosed in Note 15.

9.Othercurrentassets

8.Inventories

10InvestmentsAccountedforUsingtheequitymethod

49

.90

49.9

0 69

.06

69.0

6 51

.35

51.3

5 13

5.49

12

8.78

16

.97

23.3

9

4

0.00

40

.00

8.50

8.

50

3.75

3.

75

- -

- -

50

.00

50.0

0 1.

70

1.70

0.

85

0.85

-

- -

-

Asso

ciat

esHe

ld by

sub

sidiar

ies o

f ind

irect

sub

sidiar

iesLiq

uorla

nd L

imite

d In

ver H

ouse

Pols

ka L

imite

dIn

ver H

ouse

Dist

ribut

ion S

A

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Inve

stm

ents

acc

ount

ed fo

r usin

g th

e eq

uity

met

hod

for c

onso

lidat

ed fi

nanc

ial s

tate

men

ts a

s at

31

Dece

mbe

r 200

6 an

d 20

05, a

nd d

ivide

nd in

com

e fro

m th

ose

inves

tmen

ts d

uring

the

year

s en

ded

on

thos

e da

tes,

wer

e as

follo

ws:

Inve

stm

ents

acc

ount

ed fo

r usin

g th

e eq

uity

met

hod

for t

he s

epar

ate

finan

cial s

tate

men

ts a

s at

31

Dece

mbe

r 200

6 an

d 20

05, a

nd d

ivide

nd in

com

e fro

m th

ose

inves

tmen

ts d

uring

the

year

s en

ded

on

thos

e da

tes,

wer

e as

follo

ws:

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

10

0.00

10

0.00

5,

550.

00

5,55

0.00

12

,500

.00

12,5

00.0

0 9,

156.

18

8,94

4.94

82

1.40

66

6.00

10

0.00

10

0.00

6,

600.

00

6,60

0.00

12

,500

.00

12,5

00.0

0 9,

185.

50

8,89

4.18

1,

089.

00

660.

00

10

0.00

10

0.00

1,

666.

67

1,66

6.67

5,

150.

00

5,15

0.00

3,

431.

43

3,30

8.38

25

6.67

-

10

0.00

10

0.00

80

0.00

80

0.00

1,

665.

60

1,66

5.60

2,

200.

96

2,33

3.72

12

0.00

80

.00

10

0.00

10

0.00

7,

500.

00

7,50

0.00

7,

500.

00

7,50

0.00

10

,846

.15

11,4

73.5

6 84

0.00

56

2.50

10

0.00

10

0.00

3,

000.

00

3,00

0.00

3,

000.

00

3,00

0.00

3,

286.

78

3,47

8.71

-

30.0

0

10

0.00

10

0.00

1,

800.

00

1,80

0.00

1,

800.

00

1,80

0.00

2,

046.

13

2,02

5.71

66

.60

21.6

0

10

0.00

10

0.00

4,

000.

00

4,00

0.00

4,

000.

00

4,00

0.00

6,

161.

19

5,95

2.10

60

.00

80.0

0

10

0.00

10

0.00

90

0.00

90

0.00

90

0.00

90

0.00

1,

314.

15

1,30

1.14

10

4.40

11

2.50

10

0.00

10

0.00

90

0.00

90

0.00

90

0.00

90

0.00

1,

262.

76

1,25

8.97

10

8.90

13

5.00

10

0.00

10

0.00

80

0.00

80

0.00

80

0.00

80

0.00

1,

281.

26

1,25

9.23

12

8.80

12

0.00

10

0.00

10

0.00

80

0.00

80

0.00

80

0.00

80

0.00

1,

171.

72

1,15

0.26

12

2.40

16

0.00

Dire

ct s

ubsid

iarie

sBe

er T

hai (

1991

) PCL

.Be

er T

hip B

rewe

ry (1

991)

Co.

, Ltd

.Co

smos

Bre

wery

(Tha

iland

) Co.

, Ltd

.Th

ai Al

coho

l PCL

.Sa

ngso

m C

o., L

td.

Red

Bull D

istille

ry (1

988)

Co.

, Ltd

.Un

ited

Wine

ry a

nd D

istille

ry C

o., L

td.

Sura

Ban

gyikh

an C

o., L

td.

Fuen

gfua

nant

Co.

, Ltd

.At

himar

t Co.

, Ltd

.S.

S. K

arns

ura

Co.,

Ltd.

Kank

wan

Co.,

Ltd.

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

(%)

(%)

(in m

illion

Bah

t)

(in m

illion

Bah

t)

140 68,045.38 59,761.28

110.00 9,619.91

400.00 535.05

(1,162.14) (6,326.65)

9,128.59 9,812.30

(8,055.41) (5,235.68)

1.53 (114.48)

937.24 (0.93)

- (0.08)

(14.17) (5.34)

69,391.02 68,045.38

69,391.02 68,045.38

(937.92) (0.67)

68,453.10 68,044.71

Net book value at 1 January

Purchase of investments

Increase in share capital in subsidiaries

Adjustment of difference arising from

common control transactions (Note 4)

Share of net profits of investments - equity method

Dividend income

Surplus on assets revaluation

Excess of share of losses over costs of investments

Unrealised loss on investment in securities of subsidiary


Netbookvalueat31December

Disclosed as:

Investments accounted for using the equity method

Excess of share of losses over costs of investments

Total

(in million Baht)

2006 2005 The Company

(in million Baht)

2006 2005 The Company

49

.90

49.9

0 69

.06

69.0

6 51

.35

51.3

5 13

5.49

12

8.78

16

.97

23.3

9

4

0.00

40

.00

8.50

8.

50

3.75

3.

75

- -

- -

50

.00

50.0

0 1.

70

1.70

0.

85

0.85

-

- -

-

Asso

ciat

esHe

ld by

sub

sidiar

ies o

f ind

irect

sub

sidiar

iesLiq

uorla

nd L

imite

d In

ver H

ouse

Pols

ka L

imite

dIn

ver H

ouse

Dist

ribut

ion S

A

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Inve

stm

ents

acc

ount

ed fo

r usin

g th

e eq

uity

met

hod

for c

onso

lidat

ed fi

nanc

ial s

tate

men

ts a

s at

31

Dece

mbe

r 200

6 an

d 20

05, a

nd d

ivide

nd in

com

e fro

m th

ose

inves

tmen

ts d

uring

the

year

s en

ded

on

thos

e da

tes,

wer

e as

follo

ws:

Inve

stm

ents

acc

ount

ed fo

r usin

g th

e eq

uity

met

hod

for t

he s

epar

ate

finan

cial s

tate

men

ts a

s at

31

Dece

mbe

r 200

6 an

d 20

05, a

nd d

ivide

nd in

com

e fro

m th

ose

inves

tmen

ts d

uring

the

year

s en

ded

on

thos

e da

tes,

wer

e as

follo

ws:

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

10

0.00

10

0.00

5,

550.

00

5,55

0.00

12

,500

.00

12,5

00.0

0 9,

156.

18

8,94

4.94

82

1.40

66

6.00

10

0.00

10

0.00

6,

600.

00

6,60

0.00

12

,500

.00

12,5

00.0

0 9,

185.

50

8,89

4.18

1,

089.

00

660.

00

10

0.00

10

0.00

1,

666.

67

1,66

6.67

5,

150.

00

5,15

0.00

3,

431.

43

3,30

8.38

25

6.67

-

10

0.00

10

0.00

80

0.00

80

0.00

1,

665.

60

1,66

5.60

2,

200.

96

2,33

3.72

12

0.00

80

.00

10

0.00

10

0.00

7,

500.

00

7,50

0.00

7,

500.

00

7,50

0.00

10

,846

.15

11,4

73.5

6 84

0.00

56

2.50

10

0.00

10

0.00

3,

000.

00

3,00

0.00

3,

000.

00

3,00

0.00

3,

286.

78

3,47

8.71

-

30.0

0

10

0.00

10

0.00

1,

800.

00

1,80

0.00

1,

800.

00

1,80

0.00

2,

046.

13

2,02

5.71

66

.60

21.6

0

10

0.00

10

0.00

4,

000.

00

4,00

0.00

4,

000.

00

4,00

0.00

6,

161.

19

5,95

2.10

60

.00

80.0

0

10

0.00

10

0.00

90

0.00

90

0.00

90

0.00

90

0.00

1,

314.

15

1,30

1.14

10

4.40

11

2.50

10

0.00

10

0.00

90

0.00

90

0.00

90

0.00

90

0.00

1,

262.

76

1,25

8.97

10

8.90

13

5.00

10

0.00

10

0.00

80

0.00

80

0.00

80

0.00

80

0.00

1,

281.

26

1,25

9.23

12

8.80

12

0.00

10

0.00

10

0.00

80

0.00

80

0.00

80

0.00

80

0.00

1,

171.

72

1,15

0.26

12

2.40

16

0.00

Dire

ct s

ubsid

iarie

sBe

er T

hai (

1991

) PCL

.Be

er T

hip B

rewe

ry (1

991)

Co.

, Ltd

.Co

smos

Bre

wery

(Tha

iland

) Co.

, Ltd

.Th

ai Al

coho

l PCL

.Sa

ngso

m C

o., L

td.

Red

Bull D

istille

ry (1

988)

Co.

, Ltd

.Un

ited

Wine

ry a

nd D

istille

ry C

o., L

td.

Sura

Ban

gyikh

an C

o., L

td.

Fuen

gfua

nant

Co.

, Ltd

.At

himar

t Co.

, Ltd

.S.

S. K

arns

ura

Co.,

Ltd.

Kank

wan

Co.,

Ltd.

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

(%)

(%)

(in m

illion

Bah

t)

(in m

illion

Bah

t)

10

0.00

10

0.00

70

0.00

70

0.00

70

0.00

70

0.00

1,

038.

06

1,01

7.71

95

.20

105.

00

100.

00

100.

00

700.

00

700.

00

700.

00

700.

00

845.

82

834.

72

24.5

0 -

10

0.00

10

0.00

70

0.00

70

0.00

70

0.00

70

0.00

80

8.88

84

3.81

24

.50

-

100.

00

100.

00

900.

00

900.

00

900.

00

900.

00

1,15

7.70

1,

134.

23

22.5

0 54

.00

10

0.00

10

0.00

70

0.00

70

0.00

70

0.00

70

0.00

96

8.10

97

3.97

32

.20

52.5

0

100.

00

100.

00

800.

00

800.

00

800.

00

800.

00

1,41

3.04

1,

386.

02

24.0

0 40

.00

10

0.00

10

0.00

80

0.00

80

0.00

80

0.00

80

0.00

1,

211.

23

1,17

1.43

37

.60

100.

00

100.

00

100.

00

1.00

1.

00

2.59

2.

59

165.

43

345.

36

232.

79

149.

99

100.

00

100.

00

5.00

5.

00

26.6

26

.65

187.

23

229.

73

234.

50

55.0

0

100.

00

100.

00

1.20

1.

20

6.84

6.

84

673.

10

630.

62

413.

31

191.

90

100.

00

100.

00

5.00

5.

00

24.7

5 24

.75

1,01

7.77

89

2.94

43

6.99

40

0.00

10

0.00

10

0.00

5.

00

5.00

23

.80

23.8

0 70

7.51

69

0.79

35

0.00

30

0.00

10

0.00

10

0.00

5.

00

5.00

38

.95

38.9

5 9.

19

6.07

0.

06

-

100.

00

100.

00

10.0

0 10

.00

10.0

0 10

.00

221.

84

143.

36

100.

00

70.0

0

100.

00

100.

00

10.0

0 10

.00

10.0

0 10

.00

323.

88

40.1

0 11

6.00

13

0.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 20

5.04

96

.32

74.0

0 50

.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 41

0.52

22

4.82

15

5.00

10

0.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 27

.35

7.96

-

25.0

0

100.

00

100.

00

10.0

0 10

.00

10.0

0 10

.00

294.

18

158.

90

93.0

0 60

.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 72

3.48

67

1.04

24

7.04

20

0.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 1,

228.

42

1,10

2.28

60

4.00

20

0.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 39

4.86

38

7.43

17

0.33

30

.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 50

7.27

49

8.89

26

7.00

50

.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 19

8.94

20

2.45

11

9.04

20

.00

10

0.00

10

0.00

10

.00

10.0

0 10

.00

10.0

0 38

5.11

39

0.48

19

6.31

60

.00

10

0.00

10

0.00

1.

00

1.00

4,

301.

04

4,30

1.04

18

7.32

16

6.87

95

.55

-

100.

00

100.

00

1.00

1.

00

129.

92

129.

92

34.2

6 4.

95

1.60

-

10

0.00

10

0.00

2.

00

2.00

2.

00

2.00

-

- -

-

100.

00

100.

00

1.00

1.

00

53.6

2 53

.62

73.7

1 59

.28

18.8

6 21

.98

10

0.00

10

0.00

1.

00

1.00

38

.11

38.1

1 41

.38

31.0

4 12

.41

6.00

10

0.00

10

0.00

12

1.80

12

1.80

84

.53

84.5

3 10

3.56

10

2.27

-

-

Dire

ct s

ubsid

iarie

s (c

ontin

ued)

Thep

arun

otha

i Co.

, Ltd

.Th

anap

akdi

Co.,

Ltd.

Mon

gkols

amai

Co.,

Ltd.

Sim

athu

rakij

Co.

, Ltd

.Ka

ncha

nasin

gkor

n Co

., Lt

d.Lu

ckch

ai Liq

uor T

radin

g Co

., Lt

d.Na

teec

hai C

o., L

td.

Thipc

halot

horn

Co.

, Ltd

.Kr

ittay

abun

Co.

, Ltd

.Su

rath

ip Co

., Lt

d.Su

nthr

onpir

om C

o., L

td.

Piro

msu

rang

Co.

, Ltd

.T.

C.C.

Cos

mo

Corp

orat

ion L

td.

Pom

thip

Co.,

Ltd.

Pom

kit C

o., L

td.

Pom

kung

Co.

, Ltd

.Po

mch

ok C

o., L

td.

Pom

char

oen

Co.,

Ltd.

Pom

bura

pra

Co.,

Ltd.

Num

Yuk

Co.

, Ltd

.Nu

m K

ijjaka

rn C

o., L

td.

Num

Pala

ng C

o., L

td.

Num

Mua

ng C

o., L

td.

Num

Nak

orn

Co.,

Ltd.

Num

Thu

rakij

Co.

, Ltd

.Be

er C

hang

Co.

, Ltd

.Ar

cha

beer

Co.

, Ltd

.M

ahar

as A

gri C

o., L

td.

Pan

Inte

rnat

ional

(Tha

iland

) Co.

, Ltd

.Ad

ditive

Foo

d Co

., Lt

d.Ch

arun

Bus

iness

52

Co.,

Ltd.

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

(%)

(in m

illion

Bah

t)

10

0.00

10

0.00

10

.00

10.0

0 14

.36

14.3

6 5.

56

12.7

6 -

3.50

99.7

2 99

.72

40.0

0 40

.00

35.4

1 35

.41

117.

67

88.3

5 62

.70

47.8

6

100.

00

100.

00

12.0

0 12

.00

12.0

0 12

.00

85.1

0 60

.12

22.8

0 9.

60

100.

00

100.

00

300.

00

300.

00

300.

00

300.

00

553.

70

515.

10

7.80

-

100.

00

100.

00

20.0

0 20

.00

23.8

9 23

.89

32.1

4 32

.52

8.40

-

100.

00

100.

00

123.

00

123.

00

134.

07

134.

07

196.

57

169.

47

29.7

5 30

.75

100.

00

100.

00

300.

00

300.

00

300.

00

300.

00

931.

04

840.

95

7.50

45

.00

100.

00

100.

00

25.0

0 25

.00

61.5

0 61

.50

61.2

2 15

.10

- -

100.

00

100.

00

535.

10

535.

10

535.

10

535.

10

- 48

4.27

-

-

100.

00

- 50

0.00

-

510.

00

- 49

9.63

-

- -

63

,594

.73

63,0

84.7

3 69

,391

.02

68,0

45.3

8 8,

055.

41

5,23

5.68

Dire

ct s

ubsid

iaries

(Con

tinue

d)Bi

onic

Hum

us C

o., L

td.

Thai

Mola

sses

Co.

, Ltd

.Sa

hatip

karn

kons

ong

Co.,

Ltd.

Thai

Coop

erag

e Co

., Lt

d.Dh

anas

indhi

Co.,

Ltd.

Bang

-Na

Logis

tic C

o., L

td.

Thai

Beve

rage

Mar

ketin

g Co

, Ltd

.Dh

ospa

ak C

o., L

td.

Inte

rnat

ional

Beve

rage

Hold

ings

Limite

dSu

ra P

iset T

hippa

rat C

o., L

td.

Tota

l

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

(%)

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

10

0.00

10

0.00

10

.00

10.0

0 14

.36

14.3

6 5.

56

12.7

6 -

3.50

99.7

2 99

.72

40.0

0 40

.00

35.4

1 35

.41

117.

67

88.3

5 62

.70

47.8

6

100.

00

100.

00

12.0

0 12

.00

12.0

0 12

.00

85.1

0 60

.12

22.8

0 9.

60

100.

00

100.

00

300.

00

300.

00

300.

00

300.

00

553.

70

515.

10

7.80

-

100.

00

100.

00

20.0

0 20

.00

23.8

9 23

.89

32.1

4 32

.52

8.40

-

100.

00

100.

00

123.

00

123.

00

134.

07

134.

07

196.

57

169.

47

29.7

5 30

.75

100.

00

100.

00

300.

00

300.

00

300.

00

300.

00

931.

04

840.

95

7.50

45

.00

100.

00

100.

00

25.0

0 25

.00

61.5

0 61

.50

61.2

2 15

.10

- -

100.

00

100.

00

535.

10

535.

10

535.

10

535.

10

- 48

4.27

-

-

100.

00

- 50

0.00

-

510.

00

- 49

9.63

-

- -

63

,594

.73

63,0

84.7

3 69

,391

.02

68,0

45.3

8 8,

055.

41

5,23

5.68

Dire

ct s

ubsid

iaries

(Con

tinue

d)Bi

onic

Hum

us C

o., L

td.

Thai

Mola

sses

Co.

, Ltd

.Sa

hatip

karn

kons

ong

Co.,

Ltd.

Thai

Coop

erag

e Co

., Lt

d.Dh

anas

indhi

Co.,

Ltd.

Bang

-Na

Logis

tic C

o., L

td.

Thai

Beve

rage

Mar

ketin

g Co

, Ltd

.Dh

ospa

ak C

o., L

td.

Inte

rnat

ional

Beve

rage

Hold

ings

Limite

dSu

ra P

iset T

hippa

rat C

o., L

td.

Tota

l

Cons

olid

ated

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Owne

rship

inte

rest

Paid-

up c

apita

lCo

st m

etho

dEq

uity

met

hod

Divid

end

incom

e

(%)

(in m

illion

Bah

t)

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

(in million Baht)

Cost

/valu

atio

nAt

1 Ja

nuar

y 20

05Ad

dition

sTr

ansf

ers

Disp

osals

At 3

1 De

cem

ber 2

005

Addit

ions

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

6

Accu

mul

ated

dep

reci

atio

nAt

1 Ja

nuar

y 20

05De

prec

iation

cha

rge

for t

he y

ear

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

5De

prec

iation

cha

rge

for t

he y

ear

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

6

Net b

ook

valu

eAt

31

Dece

mbe

r 200

5At

31

Dece

mbe

r 200

6

Cons

olida

ted

Cost

surp

lus o

nlan

dre

valua

tion

Land

impr

ovem

ent

Mac

hiner

y and

equip

men

tBu

ilding

and

impr

ovem

ents

Oak b

arre

ls

Furn

iture

fixtu

res

and

offic

eeq

uipm

ent

Total

Vehic

lesCo

nstru

ction

in pr

ogre

ssTo

tal

Land

(in m

illion

Bah

t)

7,85

6.60

6,

699.

71

14,5

56.3

1 71

9.20

15

,361

.49

34,0

31.6

1 2,

782.

31

447.

87

2,69

8.08

1,

479.

71

72,0

76.5

8

560.

54

20.3

5 58

0.89

0.

06

28.5

4 15

3.66

5.

80

74.3

7 50

.77

6,42

8.27

7,

322.

36

- -

- 0.

83

150.

68

796.

59

- 50

.90

(2.4

6)

(739

.04)

25

7.50

(475

.84)

(1

34.8

3)

(610

.67)

-

(138

.75)

(9

1.70

) (3

5.19

) (1

1.75

) (3

0.88

) (0

.88)

7,

941.

30

6,58

5.23

14

,526

.53

720.

09

15,4

01.9

6 34

,890

.16

2,75

2.92

56

1.39

2,

715.

51

7,16

8.06

78

,736

.62

423.

65

3.16

42

6.81

1.

95

200.

19

1,06

9.89

30

.79

83.6

3 29

.43

2,19

9.01

4,

041.

70

- -

- 43

4.07

79

5.84

5,

438.

83

0.18

(3

5.11

) (2

0.84

) (6

,612

.97)

-

(0.1

2)

(1.6

3)

(1.7

5)

(1.9

6)

(10.

54)

(92.

01)

(0.2

2)

(11.

11)

(25.

23)

(0.4

9)

8,36

4.83

6,

586.

76

14,9

51.5

9 1,

154.

15

16,3

87.4

5 41

,306

.87

2,78

3.67

59

8.80

2,

698.

87

2,75

3.61

82

,635

.01

- -

- 15

5.76

4,

489.

27

16,6

57.9

1 1,

115.

50

271.

81

1,75

8.90

-

24,4

49.1

5

- -

- 45

.40

724.

89

3,00

8.67

13

3.32

65

.13

359.

76

- 4,

337.

17

- -

- -

- 64

.44

- (1

5.44

) (3

.51)

-

45.4

9

- -

- -

(26.

35)

(58.

37)

(7.9

9)

(8.3

5)

(21.

97)

-

__

_ 20

1.16

5,

187.

81

19,6

72.6

5 1,

240.

83

313.

15

2,09

3.18

-

28,7

08.7

8

- -

- 52

.97

732.

51

3,17

1.31

13

4.05

75

.69

314.

25

- 4,

480.

78

- -

- 22

4.14

(2

60.9

9)

85.7

9 0.

18

(34.

45)

(14.

67)

- -

- -

- (1

.42)

(5

.81)

(4

8.23

) (0

.05)

(9

.23)

(2

1.95

) -

__

_ 47

6.85

5,

653.

52

22,8

81.5

2 1,

375.

01

345.

16

2,37

0.81

-

33,1

02.8

7

7,94

1.30

6,

585.

23

14,5

26.5

3 51

8.93

10

,214

.15

15,2

17.5

1 1,

512.

09

248.

24

622.

33

7,16

8.06

50

,027

.84

8,36

4.83

6,

586.

76

14,9

51.5

9 67

7.30

10

,733

.93

18,4

25.3

5 1,

408.

66

253.

64

328.

06

2,75

3.61

49

,532

.14

(919

.82)

(143

.31)

(123

.03)

(86.

69)

144


8.07 8.78 - -

(4.32) (4.32) - -

3.75 4.46 _ _

11.OtherLong-TermInvestments

Non-marketable equity securities

Less allowance for decline in value of investments

Net

In 2005, three subsidiaries sold their investments in non-marketable equity securities with total cost of Baht 1,108.06 million

receiving with a profit of Baht 0.92 million.




Cost

/valu

atio

nAt

1 Ja

nuar

y 20

05Ad

dition

sTr

ansf

ers

Disp

osals

At 3

1 De

cem

ber 2

005

Addit

ions

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

6

Accu

mul

ated

dep

reci

atio

nAt

1 Ja

nuar

y 20

05De

prec

iation

cha

rge

for t

he y

ear

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

5De

prec

iation

cha

rge

for t

he y

ear

Tran

sfer

sDi

spos

alsAt

31

Dece

mbe

r 200

6

Net b

ook

valu

eAt

31

Dece

mbe

r 200

5At

31

Dece

mbe

r 200

6

Cons

olida

ted

Cost

surp

lus o

nlan

dre

valua

tion

Land

impr

ovem

ent

Mac

hiner

y and

equip

men

tBu

ilding

and

impr

ovem

ents

Oak b

arre

ls

Furn

iture

fixtu

res

and

offic

eeq

uipm

ent

Total

Vehic

lesCo

nstru

ction

in pr

ogre

ssTo

tal

Land

(in m

illion

Bah

t)

7,85

6.60

6,

699.

71

14,5

56.3

1 71

9.20

15

,361

.49

34,0

31.6

1 2,

782.

31

447.

87

2,69

8.08

1,

479.

71

72,0

76.5

8

560.

54

20.3

5 58

0.89

0.

06

28.5

4 15

3.66

5.

80

74.3

7 50

.77

6,42

8.27

7,

322.

36

- -

- 0.

83

150.

68

796.

59

- 50

.90

(2.4

6)

(739

.04)

25

7.50

(475

.84)

(1

34.8

3)

(610

.67)

-

(138

.75)

(9

1.70

) (3

5.19

) (1

1.75

) (3

0.88

) (0

.88)

7,

941.

30

6,58

5.23

14

,526

.53

720.

09

15,4

01.9

6 34

,890

.16

2,75

2.92

56

1.39

2,

715.

51

7,16

8.06

78

,736

.62

423.

65

3.16

42

6.81

1.

95

200.

19

1,06

9.89

30

.79

83.6

3 29

.43

2,19

9.01

4,

041.

70

- -

- 43

4.07

79

5.84

5,

438.

83

0.18

(3

5.11

) (2

0.84

) (6

,612

.97)

-

(0.1

2)

(1.6

3)

(1.7

5)

(1.9

6)

(10.

54)

(92.

01)

(0.2

2)

(11.

11)

(25.

23)

(0.4

9)

8,36

4.83

6,

586.

76

14,9

51.5

9 1,

154.

15

16,3

87.4

5 41

,306

.87

2,78

3.67

59

8.80

2,

698.

87

2,75

3.61

82

,635

.01

- -

- 15

5.76

4,

489.

27

16,6

57.9

1 1,

115.

50

271.

81

1,75

8.90

-

24,4

49.1

5

- -

- 45

.40

724.

89

3,00

8.67

13

3.32

65

.13

359.

76

- 4,

337.

17

- -

- -

- 64

.44

- (1

5.44

) (3

.51)

-

45.4

9

- -

- -

(26.

35)

(58.

37)

(7.9

9)

(8.3

5)

(21.

97)

-

__

_ 20

1.16

5,

187.

81

19,6

72.6

5 1,

240.

83

313.

15

2,09

3.18

-

28,7

08.7

8

- -

- 52

.97

732.

51

3,17

1.31

13

4.05

75

.69

314.

25

- 4,

480.

78

- -

- 22

4.14

(2

60.9

9)

85.7

9 0.

18

(34.

45)

(14.

67)

- -

- -

- (1

.42)

(5

.81)

(4

8.23

) (0

.05)

(9

.23)

(2

1.95

) -

__

_ 47

6.85

5,

653.

52

22,8

81.5

2 1,

375.

01

345.

16

2,37

0.81

-

33,1

02.8

7

7,94

1.30

6,

585.

23

14,5

26.5

3 51

8.93

10

,214

.15

15,2

17.5

1 1,

512.

09

248.

24

622.

33

7,16

8.06

50

,027

.84

8,36

4.83

6,

586.

76

14,9

51.5

9 67

7.30

10

,733

.93

18,4

25.3

5 1,

408.

66

253.

64

328.

06

2,75

3.61

49

,532

.14

(919

.82)

(143

.31)

(123

.03)

(86.

69)

12.P

rope

rty,

Pla

nta

ndE

quip

men

t

Thai

Beve

rage

Pub

lic C

ompa

ny L

imite

d an

d its

Sub

sidiar

ies

Not

es t

o Th

e Fi

nanc

ial S

tate

men

ts.

For t

he y

ears

end

ed 3

1 De

cem

ber 2

006

and

2005

(in Million Baht)

410.90 134.52 545.42 4.65 - 121.90 671.97

- - - 63.06 24.18 - 87.24

- - - - - (0.98)

410.90 134.52 545.42 67.71 24.18 120.92 758.23

- - - 27.12 0.02 99.93 127.07

- - - (0.17) - (10.89)

410.90 134.52 545.42 94.66 24.20 209.96 874.24

- - - 0.28 - - 0.28

- - - 5.00 1.62 - 6.62

_ _ _ 5.28 1.62 _ 6.90

- - - 16.64 4.84 - 21.48

- - - (0.07) - -

_ _ _ 21.85 6.46 _ 28.31

410.90 134.52 545.42 62.43 22.56 120.92 751.33

410.90 134.52 545.42 72.81 17.74 209.96 845.93

Cost/valuationAt 1 January 2005AdditionsDisposalsAt 31 December 2005AdditionsDisposalsAt 31 December 2006

Accumulated depreciationAt 1 January 2005Depreciation charge for the yearAt 31 December 2005Depreciation charge for the yearDisposalsAt 31 December 2006

Net book valueAt 31 December 2005At 31 December 2006

The Company

Cost

surplus onland

revaluation

Furniturefixtures

and officeequipmentTotal Vehicles

Constructionin progress Total

Land

(0.98)

(11.06)

(0.07)

146


As at 31 December 2006 the historical cost of fully depreciated plant and equipment, which were still in use amounted to

Baht 3,025.90 million (2005: Baht 2,253.62 million).

As at 31 December 2006 the net book value of property, plant and equipment of certain subsidiary companies, used as

security under the Negative Pledge agreement, as disclosed in Note 15, totaled Baht 34,530.16 million (2005: Baht

31,658.05 million).

As at 31 December 2006 the carrying amount of idle land, which is held for planned future business operations amounted

to Baht 1,625.97 million (2005: Baht 1,735.21 million).



(in Million Baht)CostAt 1 January 2005AdditionsTransferAt 31 December 2005AdditionsAt 31 December 2006

Accumulated depreciationAt 1 January 2005Amortisation charge for the yearTransfersAt 31 December 2005Amortisation charge for the yearAt 31 December 2006

Net book valueAt 31 December 2005At 31 December 2006

Consolidated

Trademark LeaseholdBroadcasting

rightsComputersoftware Goodwill Total

304.86 1.04 4.28 101.96 426.11 838.25

1.82 0.12 11.69 59.93 - 73.56

- - 0.32 - - 0.32

306.68 1.16 16.29 161.89 426.11 912.13

3.43 0.70 8.93 - - 13.06

310.11 1.86 25.22 161.89 426.11 925.19

158.01 0.13 0.58 19.83 140.19 318.74

24.67 0.18 1.57 18.53 34.73 79.68

- - 0.02 - - 0.02

182.68 0.31 2.17 38.36 174.92 398.44

24.93 0.26 3.87 123.53 18.74 171.33

207.61 0.57 6.04 161.89 193.66 569.77

124.00 0.85 14.12 123.53 251.19 513.69

102.50 1.29 19.18 _ 232.45 355.42

147

In 2006 and 2005, the Company and subsidiaries recognized revaluation land as disclosed in Note 19.

Depreciation of plant and equipment for the years ended 31 December, consisted of:

2,879.58 2,378.45 - -

1,601.20 1,958.72 21.48 6.62

4,480.78 4,337.17 21.48 6.62

154.33 82.71 - -

Included in cost of production

Included in selling and administrative expenses

Total

Interest expense

(in million Baht)


Borrowing costs for the years ended 31 December capitalized as part of asset cost, consisted of:

(in million Baht)


13.Intangibleassets


Notes to The Financial Statements. 148


(in million Baht)


1.36

8.20

9.56

6.67

16.23

0.07

1.22

1.29

2.59

3.88

8.27

12.35

Cost

At 1 January 2005

Additions

At31December2005

Additions

At31December2006

Accumulatedamortisation

At 1 January 2005

Amortisation charge for the year

At31December2005

Amortisation charge for the year

At31December2006

Netbookvalue

At 31 December 2005

At 31 December 2006

14.Othernon-currentassets

1,879.16 - 352.34 -

71.44 33.27 - -

57.92 67.29 4.72 -

13.94 18.60 0.07 0.07

2,022.46 119.16 357.13 0.07

(5.36) (6.25) - -

2,017.10 112.91 357.13 0.07

Advance payments to a specialist

Stainless steel plates

Deposits

Others

Less Allowance for impairment of assets

Net

(in million Baht)

Computer software The Company

Note

28

149

1,516.42 858.63 - -

366.89 - 29.56 -

1,883.31 858.63 29.56 -

- 2,700.00 - -

- 36,600.00 - 36,600.00

4,870.00 - 3,000.00 -

4,870.00 39,300.00 3,000.00 36,600.00

2,200.00 - 2,200.00 -

2,300.00 - 2,300.00 -

- 1,086.60 - -

1,500.00 - 1,500.00 -

12,753.31 41,245.23 9,029.56 36,600.00

3,000.00 - 3,000.00 -

3,755.00 - 3,755.00 -

6,755.00 - 6,755.00 -

19,508.31 41,245.23 15,784.56 36,600.00

(in million Baht)

Current

Bank overdrafts

- Guaranteed

- Unsecured

Short-term loans from financial institutions

- Secured

- Guaranteed/Negative pledge

- Unsecured



Current portion of long-term guaranteed bonds


Current portion of long-term loans

- Secured

- Guaranteed/Negative pledg

Non-current

Long-term guaranteed bonds


Long-term loans from financial institutions


Total

2006 2005 2006 2005


15.Interest-bearingliabilities

The periods to maturity of interest-bearing liabilities as at 31 December were as follows:

(in million Baht)


Within one year

After one year but within five years

Total

The interest rate exposure of the borrowings as at 31 December was as follows:

(%)

Range Weighted Range Weighted 2006 2005

Bank overdrafts

Short-term loans from financial institutions


Long-term guaranteed bonds and current portion

Long-term loan and current portion

The currency denomination of interest-bearing liabilities was as follows:

(in million Baht)


Thai Baht (THB)

Great Britain Pound (GBP)

Total

As at 31 December 2006 the Group had unutilized credit facilities totalling Baht 17,789.94 million

(2005: Baht 14,851.74 million).




6.00 - 10.75 7.16 6.00 - 7.00 6.00

5.27 - 5.45 5.41 3.75 - 5.00 4.74

5.40 5.40 - -

5.55 - 5.75 5.66 - -

5.70 - 5.75 5.73 5.00 5.00

12,753.31 41,245.23 9,029.56 36,600.00

6,755.00 - 6,755.00 -

19,508.31 41,245.23 15,784.56 36,600.00

18,652.17 40,386.76 15,784.56 36,600.00

856.14 858.47 - -

19,508.31 41,245.23 15,784.56 36,600.00

The principal features of the borrowings are as follows:

(a) Bank overdrafts are repayable on demand. As at 31 December 2006, the Group has a total overdraft facilities amounting

to Baht 3,705.39 million (2005: Baht 3,595.55 million) which is partially guaranteed by 5 subsidiaries.

(b) Short-term loans from financial institutions as at 31 December 2006, the Group has short-term loan facilities from

several financial institutions totalling Baht 20,820 million, with money market rate quoted by bank. The Group utilized those

facilities in term of promissory notes issued by the Group to several domestic commercial banks totalling Baht 4,870 million

(2005: Baht 39,300 million)

Short-term loans from financial institutions as at December 2005 amounted to Baht 36,600 million were guaranteed by

4 subsidiaries together with Negative Pledge agreement by 17 subsidiaries, whereby these subsidiaries agree not to sell,

transfer, mortgage, pledge, encumber or grant any preferential right in relation to their land, buildings, plant and machinery,

during any period that the Company has not yet repaid these loans and/or is still liable to the banks under these promissory

notes, unless written consent from the banks is received. As at 31 December 2005 the net book value of assets used as

security under the negative pledge are disclosed in Note 12. The remaining short-term loans from financial institutions are

secured certain inventories of subsidiaries. The carrying amount of inventories that have been pledged as security is disclosed

in Note 8. In 2006, such short-term loans were repaid and its collaterals were redeemed.

(c) On 22 February 2006 the Company issued guaranteed bonds totalling Baht 10,000 million with a full co-guarantee by

four subsidiaries and negative pledge undertaken by the Company whereby 17 subsidiaries agree not to sell, transfer,

mortgage, pledge, encumber or grant any preferential right in relation to their land, buildings, plants and machinery.

The Company is required to maintain a consolidated debt (interest-bearing debt) to equity (excluding unrealised foreign

exchange gain or loss) ratio of not more than 2.5 to 1 based on the annual consolidated financial statements prepared in

accordance with generally accepted accounting standards in Thailand.

The bonds have the following payment terms:

Amount Fixed interest rate Maturity (in million Baht) (% per annum)

First tranche 2,500 4.95 22 August 2006

Second tranche 2,200 5.40 22 February 2007

Third tranche 2,300 5.55 22 August 2007

Fourth tranche 3,000 5.75 22 February 2008

The principal is to be redeemed at maturity. Interest is payable semi-annually commencing on 22 August 2006. As at 31

December 2006 the net book value of assets used as security under the negative pledge are disclosed in Note 12.

The proceeds from the issuance of the bonds were utilised in the repayment of short-term loans from financial institutions.

151

(d) Long-term loan and its current portion in the consolidated balance sheet as at 31 December 2005 was obtained from

a domestic commercial bank by a subsidiary and is to be repaid monthly in 23 installments, Baht 110 million for the first 22

installments and Baht 96.60 million for the last installment, which commenced in December 2004. Interest is payable monthly at

a fixed rate of 4% per annum for the first year and MLR-1.75% per annum afterwards. This loan is secured by certain

inventories of subsidiaries. As at 31 December 2005 the carrying amount of those inventories is disclosed in Note 8.

In October 2006, the last installment of such loan was repaid and its secured inventories were redeemed.

During March 2006, the Company entered into new loan agreements with 8 commercial banks to obtain long-term

borrowings totalling Baht 26,600 million in order to repay short-term loans. Of this, the principal of Baht 23,600 million

has a grace period of 2 years and is to be repaid in 36 monthly installments, Baht 654.22 million each for the first 35

installments and Baht 702.20 million for the last installment, from 28 April 2008 to 31 March 2011 with interest at the

fixed rates of 5.75% and 6.00% per annum for the first and the second years, respectively, and MLR-1.5% to MLR-1.75%

per annum from the third year onwards, payable monthly, commencing in March 2006. The remaining principal of Baht

3,000 million is to be repaid in eight quarterly installments, Baht 375 million each, from 28 June 2006 to 28 March 2008

with a fixed interest rate of 5.70% per annum, payable quarterly, commencing in June 2006.

The borrowings are fully co-guaranteed by 4 subsidiaries with a negative pledge made by 17 subsidiaries whereby these

subsidiaries agree not to sell, transfer, mortgage, pledge, encumber or grant any preferential right in relation to their land,

buildings, plant and machinery. The net book values of assets used as security under the negative pledge are disclosed in

Note 12.

The loans were fully drawn during 28 and 29 March 2006 and were immediately utilised for the repayment of short-term loans.

On 30 May 2006 and 5 July 2006, the Company partially repaid long-term loans with accrued interest to 7 financial

institutions amounting to Baht 15,959.20 million and Baht 4,376.31 million, respectively.

16.Tradeaccountspayable

(in million Baht)


Trade accounts payable to related parties

Trade accounts payable to other parties

Total

Note

5

152

819.31 521.12 - -

1,456.36 1,170.02 - -

2,275.67 1,691.14 _ _

(in million Baht)


17.Othercurrentliabilities

Advanced payments from customers for

purchase of goods

Accrued expenses

Value added tax payable

Construction payable

Outstanding cheque paid for excise tax

Deposits and retention payable

Accrued interest expense

Accrued promotion expense

Withholding tax payable

Other payables

Others

Total

(million share/million Baht)

Number Baht 2006 2005

18.Sharecapital

Authorised

At 1 January

Issue of new shares

At31December

Issued and fully paid

At 1 January

Issue of new shares

At31December

Par value (in Baht)

1

1

1

1

1

1

Number Baht

153

1,004.74 1,879.05 - -

883.34 727.00 90.47 53.92

686.81 736.84 104.82 81.61

344.32 596.98 4.72 11.78

294.89 918.68 - -

272.62 318.74 2.93 0.43

163.23 15.13 156.56 14.13

132.70 230.41 - -

79.43 72.80 22.47 23.20

60.93 43.17 11.77 1.31

180.30 59.16 0.47 0.37

4,103.31 5,597.96 394.21 186.75

29,000 29,000 22,000 22,000

- - 7,000 7,000

29,000 29,000 29,000 29,000

22,000 22,000 22,000 22,000

3,110 3,110 - -

25,110 25,110 22,000 22,000

The Extraordinary Meeting of Shareholders of the Company No. 1/2005 held on 8 July 2005 unanimously approved to increase

the authorised share capital of the Company from Baht 22,000 million to Baht 29,000 million through the issue of 7,000

million ordinary shares with a Baht 1 par value. Of this increase, an amount not exceeding 6,000 million shares will be

allocated to the public and an amount not exceeding 1,000 million shares will be available as a “Greenshoe Option”.

The Company registered the increase of its authorised share capital with the Ministry of Commerce on 11 July 2005.

154

The Company listed on the SGX-ST on 29 May 2006 received net proceeds of Baht 16,191.60 million from the issue of

2,444.45 million new ordinary shares, sold to the public through an Initial Public Offering (the “IPO”) at a price of Singapore

Dollar 0.28 per share. Directly attributable expenses for the IPO amounting to Baht 676.49 million are accounted for as a

deduction from the premium on share capital received from the IPO. The Company registered the change in paid-up capital

with the Ministry of Commerce on 29 May 2006 from Baht 22,000 million to Baht 24,444.45 million.

On 3 July 2006, an over allotment option was exercised related to its recent IPO, whereby the Company sold a further

665.58 million new ordinary shares, raising Baht 4,390.54 million in proceeds. The Company registered the change in

paid-up capital with the Ministry of Commerce on 3 July 2006 from Baht 24,444.45 million to Baht 25,110.03 million.

19.Reserves

Sharepremium

Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription monies received in

excess of the par value of the shares issued to a reserve account (“share premium”). Share premium is not available for

dividend distribution.

Currencytranslationchanges

Currency translation changes consisted of foreign exchange differences arising from translation of the financial statements

of foreign operations to Thai Baht.

Fairvaluechangesandrevaluationsurpluses

Fair value changes

Fair value changes recognised in shareholders’ equity relate to cumulative net changes in the fair value of available-for-sale

equity securities.

Revaluation surpluses

During 2003 and 2004, the Group revalued all land held. Revaluations of land are carried out by independent professional

valuers on an open market basis. The revaluations were originally based on valuations reported by the independent

professional valuers in 2003 and 2004. In September 2005, the valuers updated the valuations, which have been

recognised as adjusting events occurring after the balance sheet date. As a result of the updated revaluations a surplus of

Baht 6,453.34 million was recognised as a revaluation surplus in 2003 as a component of shareholders’ equity, a surplus

of Baht 246.38 million was recognized in 2004, and a surplus of Baht 134.83 million was reversed in 2005.

In addition, in 2005, a subsidiary company obtained a revaluation of its land from independent professional valuers and

a surplus of Baht 20.35 million was recognised in the 2005 financial statements.

Subsequently, in 2006, a subsidiary company obtained a revaluation of its land from independent professional valuers and

recognised a revaluation surplus in the amount of Baht 3.16 million. The other subsidiary company sold its land which has

been revalued and recognised a revaluation surplus, and adjusted in a reduction in the revaluation surplus in the amount of

Baht 1.63 million.

155

Legal reserve

Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocate not less than 5% of its annual

net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until this account reaches

an amount not less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution.

20.Segmentalinformation

Segment information is presented in respect of both business and geographical segments. The primary format, business

segments, is based on the Group’s management and internal reporting structure.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated

on a reasonable basis.

In preparing segmental information, those liabilities and related interest expense that are not specifically attributable to a

particular segment are allocated on a percentage of net assets basis. Management believes this to be a fair indication of

the actual use of the liabilities.

Inter-segment transactions are eliminated on consolidation.

Business segments

The Group comprises the following main business segments:

Beer/water Production and sales of branded beer and water products (mostly outside the group);

Spirits Production and sales of branded spirits products (mostly outside the group);

Alcohol Production and sales of alcohol (mostly outside the group); and

Related Purchasing of packaging materials and sale of byproducts (mostly within the group).

Geographical segments

Operating units of the Group are mainly located in Thailand. Portions of product produced from these units are exported

directly or indirectly through foreign subsidiaries to external customers. Certain operating units of subsidiaries are located in

foreign countries.

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of

customers. Segment assets are based on the geographical location of the assets.

46,6

41.0

0 42

,276

.97

51,4

28.3

3 52

,810

.99

1,20

5.04

86

9.18

7,

155.

13

6,63

3.04

(8

,631

.58)

(7

,686

.77)

97

,797

.92

94,9

03.4

1

24

.44

33.7

3 25

.90

33.7

5 1.

07

0.39

9.

14

5.11

(4

.10)

(1

.46)

56

.45

71.5

2

43

.63

141.

16

97.6

9 94

.17

3.76

12

.41

43.5

8 20

.72

(87.

03)

(53.

16)

101.

63

215.

30

46,7

09.0

7 42

,451

.86

51,5

51.9

2 52

,938

.91

1,20

9.87

88

1.98

7,

207.

85

6,65

8.87

(8

,722

.71)

(7

,741

.39)

97

,956

.00

95,1

90.2

3

35,

608.

95

32,5

48.6

8 33

,002

.21

32,0

61.5

2 99

5.25

47

1.34

6,

365.

11

6,06

8.29

(6

,646

.40)

(5

,962

.09)

69

,325

.12

65,1

87.7

4

6,

932.

13

6,98

3.69

7,

169.

68

7,34

3.53

17

7.31

16

5.74

45

4.34

46

1.61

(2

,048

.90)

(1

,774

.32)

12

,684

.56

13,1

80.2

5

42,5

41.0

8 39

,532

.37

40,1

71.8

9 39

,405

.05

1,17

2.56

63

7.08

6,

819.

45

6,52

9.90

(8

,695

.30)

(7

,736

.41)

82

,009

.68

78,3

67.9

9

4,

167.

99

2,91

9.49

11

,380

.03

13,5

33.8

6 37

.31

244.

90

388.

40

128.

97

(27.

41)

(4.9

8)

15,9

46.3

2 16

,822

.24

30

2.94

38

6.69

1,

187.

26

1,26

3.96

51

.23

42.1

4 31

.32

50.4

8 (4

.10)

(1

.46)

1,

568.

65

1,74

1.81

1,

896.

70

1,33

0.16

2,

276.

93

3,28

1.67

7.

78

51.7

1 14

1.48

79

.64

- -

4,32

2.89

4,

743.

18

1,96

8.35

1,

202.

64

7,91

5.84

8,

988.

23

(21.

70)

151.

05

215.

60

(1.1

5)

(23.

31)

(3.5

2)

10,0

54.7

8 10

,337

.25

Reve

nue

Inte

rest

inco

me

Othe

r inc

ome

Tota

l rev

enue

Cost

of s

ales

Sellin

g an

d ad

mini

stra

tive

expe

nses

Tota

l exp

ense

s

Profi

t bef

ore

inte

rest

and

inco

me

tax

expe

nses

Inte

rest

exp

ense

Inco

me

tax

Net p

rofit

(los

s)

Beer

/wat

erTo

tal

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Busin

ess

segm

ent r

esul

tsSp

irits

Alco

hol

Relat

edEli

mina

tion

2,

823.

32

2,74

3.99

25

,077

.45

25,5

98.2

2 27

5.07

11

8.99

13

9.32

28

5.82

28

,315

.16

28,7

47.0

2

19

,940

.44

20,7

16.0

7 25

,673

.45

25,2

41.9

8 1,

681.

17

1,73

6.57

2,

237.

08

2,33

3.22

49

,532

.14

50,0

27.8

4

1,

680.

17

2,57

1.89

5,

298.

09

5,07

9.23

56

2.75

14

4.80

19

1.20

56

6.25

7,

732.

21

8,36

2.17

24

,443

.93

26,0

31.9

5 56

,048

.99

55,9

19.4

3 2,

518.

99

2,00

0.36

2,

567.

60

3,18

5.29

85

,579

.51

87,1

37.0

3

5,

567.

24

11,3

68.5

9 13

,012

.17

27,5

57.9

6 57

1.33

1,

029.

88

357.

57

1,28

8.79

19

,508

.31

41,2

45.2

2

4,

615.

66

4,81

2.41

7,

837.

00

8,50

7.07

45

.45

78.0

8 1,

019.

54

779.

74

13,5

17.6

5 14

,177

.30

10

,182

.90

16,1

81.0

0 20

,849

.17

36,0

65.0

3 61

6.78

1,

107.

96

1,37

7.11

2,

068.

53

33,0

25.9

6 55

,422

.52

1,

350.

45

6,39

5.43

2,

606.

06

481.

49

67.8

3 25

4.25

14

.20

170.

84

4,03

8.54

7,

302.

01

4.

98

4.80

7.

65

5.26

0.

24

0.23

0.

19

63.2

7 13

.06

73.5

6

2,

025.

26

1,90

2.56

2,

238.

02

2,22

8.60

12

6.29

12

0.54

91

.21

85.4

7 4,

480.

78

4,33

7.17

2.

20

16.4

2 44

.83

59.8

7 0.

09

0.03

12

4.21

18

.65

171.

33

94.9

7

Inve

ntor

ies, n

etPr

oper

ty, p

lant a

nd e

quipm

ent,

net

Othe

r ass

ets

Tota

l Ass

ets

Tota

l deb

tOt

her l

iabilit

iesTo

tal li

abilit

ies

Capi

tal e

xpen

ditu

re-

Fixed

ass

ets

- In

tang

ible

asse

tsDe

prec

iation

Amor

tisat

ion

Tota

l20

0620

0520

0620

0520

0620

0520

0620

0520

0620

05Bu

sines

s se

gmen

t fina

ncia

l pos

ition

Beer

/wat

erSp

irits

Alco

hol

Relat

ed

(in m

illion

Bah

t)

(in m

illion

Bah

t)

Geographical segments

The segment financial information of the Group based on geographical segments for the year 2006 and 2005 was as follows:

(in million Baht)

2006 2005 2006 2005 Revenue

95,106.26 92,362.87 48,031.73 48,501.26

2,849.74 2,827.36 1,500.41 1,526.58

97,956.00 95,190.23 49,532.14 50,027.84

Thailand

Overseas

Total

21.Otherincome

(in million Baht)


31.79 20.19 - -

1.69 11.98 - -

- 43.78 - 0.01

- 41.86 - -

44.46 75.45 4.87 2.02

77.94 193.26 4.87 2.03

Revenue from sales of scraps

Gain on disposal of assets

Gain on exchange rate

Reversal of accrued royalty expense

Others

Total

22.Sellingandadministrativeexpenses

(in million Baht)


3,993.54 4,949.79 98.06 84.16

3,095.15 2,946.54 522.48 420.58

1,679.04 2,165.00 - -

806.09 642.18 11.23 25.68

515.68 541.19 24.08 7.84

129.34 - 14.97 -

2,465.72 1,935.55 272.50 184.37

12,684.56 13,180.25 943.32 722.63

Marketing and advertising expenses

Personnel expenses

Vehicle and transportation expenses

Idle capacity

Depreciation and amortisation

Loss on exchange rate

Others

Total

Consolidated Fixed assets

157

(in million Baht)


3,265.19 3,064.57 321.36 288.25

637.22 564.84 154.13 116.75

9.37 6.05 5.35 0.05

785.91 781.49 41.64 15.53

4,697.69 4,416.95 522.48 420.58

22,412 20,134 335 281

Salaries and wages

Bonus

Contribution to defined contribution plans

Others

Total

Number of employees as at 31 December

23.Personnelexpenses

The defined contribution plans comprise provident funds established by the Group for its employees. Membership to the

funds is on a voluntary basis. Contributions are made monthly by the employees at rates ranging from 2% to 3% of their

basic salaries and by the Group at from 2% to 3% of the employees’ basic salaries. The provident funds are registered

with the Ministry of Finance as juristic entities and are managed by a licensed Fund Manager.

24.Earningspershare

The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders and the weighted

average number of shares outstanding.

(in million Baht)


Profit attributable to ordinary shareholders

Weighted average number of ordinary shares

(in million share)

Issued ordinary shares at 1 January

Effect of shares issued on 29 May 2006

Effect of shares issued on 3 July 2006

Weightedaveragenumberofordinaryshares

fortheyear

10,054.78 10,337.25 10,078.65 10,132.78


(number of employees)

158

22,000.00 22,000.00 22,000.00 22,000.00

1,453.27 - 1,453.27 -

331.88 - 331.88 -

23,785.15 22,000.00 23,785.15 22,000.00

25.Promotionalprivileges

Promotional privileges from the Board of Investment

By virtue of the provisions of the Industrial Investment Promotion Act of B.E. 2520, a subsidiary has been granted privileges

by the Board of Investment relating to the production of alcohol and agricultural fuel. The privileges granted include:

(a) exemption from payment of import duty on approved machinery.

(b) exemption from payment of income tax for a period of eight years from the dates on which the income is first derived

from such operations. In the event the subsidiary incurs a loss during this eight year period, the subsidiary can carry these

losses forward to deduct against any future profits for a period of five years.

(c) exemption from income tax on dividends derived from the promoted business of its subsidiary during this eight year period.

As a promoted company, the subsidiary must comply with certain conditions and restrictions provided for in the promotional certificate.

Privileges granted to business operator in Free Zone

Also in 2004 another subsidiary was granted approval from the Customs Department to operate in a “Free Zone”, whereby

the subsidiary obtains privileges related to the payment of import and export taxes, valued added tax and excise tax.

Various other privileges are also granted.

26.Dividends

At the Annual General Meeting of the shareholders of the Company held on 27 March 2006, the shareholders approved the

appropriation of dividends of Baht 0.24 per share, amounting to Baht 5,280 million, from the net profit of 2005.

The dividend was paid to shareholders on 26 April 2006.

At the Board of Directors Meeting of the Company held on 10 August 2006, the meeting approved the appropriation of

interim dividends of Baht 0.11 per share, amounting to Baht 2,762.10 million, from the first half of 2006. The interim

dividend was paid to shareholders on 8 September 2006.

27.Financialinstruments

Financial risk management and policies

The Group is exposed to normal business risks from changes in market interest rates and currency exchange rates and from

non-performance of contractual obligations by counterparties. The Group does not hold or issue derivative financial

instruments for speculative or trading purposes.

Interest rate risk

Interest rate risk is the risk that future movements in market interest rates will affect the results of the Group’s operations

and its cash flows because loan interest rates are mainly fixed. The Group is primarily exposed to interest rate risk from its

borrowings (Note 15). The Group mitigates this risk by ensuring that the majority of its borrowings are at fixed interest rates.

Foreign currency risk

The Group is exposed to foreign currency risk relating to purchases and sales which are denominated in foreign currencies.

159

The Group primarily utilises forward exchange contracts with maturities of less than one year to hedge such financial assets

and liabilities denominated in foreign currencies. The forward exchange contracts entered into at the balance sheet date

also relate to anticipated purchases and sales, denominated in foreign currencies, for the subsequent period.

The table below provides an indication of the Group’s foreign currency positions as at 31 December, relating to the

Group’s exposure and forward exchange contracts used to hedge against the exposure as a result of the Group’s policy.

2006

1.10 39.57 0.19 7.84

0.75 35.55 - 0.11

0.12 3.78 - -

- 0.06 0.15 3.57

0.12 1.38 - -

80.34 11.52

9.98 362.17 7.28 299.02

2.27 108.22 0.79 38.62

1.26 89.42 0.54 38.12

0.22 6.47 0.24 7.42

0.92 4.81 0.05 0.39

571.09 383.57

53.25 1,919.99 16.24 667.39

16.18 771.15 20.17 991.86

7.62 539.64 5.41 384.81

0.87 24.88 3.97 119.55

3,255.66 2,163.61

- - 1.20 49.16

63.60 1,500.61 - -

1,500.61 49.16

Financial assets denominated in foreign currencies:

US Dollar (USD)

Euro (EUR)

Canadian Dollar (CAD)

Singapore Dollar (SGD)

Others

Total

Financial liabilities denominated in foreign currencies:

US Dollar (USD)

Euro (EUR)


Australian Dollar (AUD)

Others

Total

Forward exchange contracts to buy foreign

currencies (mark-to-market value):

US Dollar (USD)

Euro (EUR)


Australian Dollar (AUD)

Total

Forward exchange contracts to sell foreign

currencies (mark-to-market value):

US Dollar (USD)


Total

Consolidated 2005

In foreign currency

In Baht

In foreign currency

In Baht

(million)

160

Credit risk

Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to settle its financial and

contractual obligations to the Group as and when they fall due.

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations

are performed on all customers requiring credit over a certain amount. At the balance sheet date there were no significant

concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial

asset in the balance sheet. However, due to the large number of parties comprising the Group’s customer base, management

does not anticipate material losses from its debt collection.

Liquidity risk

The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to

finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.

Fair values

The fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing

parties in an arm’s length transaction. In determining the fair value of its financial assets and liabilities, the Group takes into

account its current circumstances and the costs that would be incurred to exchange or settle the underlying financial instrument.

28.Commitments

(in million)


620.82 1,330.20 11.00 132.69

8.59 7.44 - -

0.06 - - -

2.97 - - -

0.11 - 0.11 -

2,914.15 2,927.79 1,633.70 1,259.79

0.56 - - -

Capital commitments

Contracted but not provided for Baht

Euro (EUR)

US Dollar (USD)



Authorised but not contracted for Baht

Euro (EUR)

(in million Baht)


284.52 275.75 23.78 19.51

284.46 214.12 37.77 31.17

18.93 0.26 - -

587.91 490.13 61.55 50.68

Non-cancellable operating lease commitments

Within one year

After one year but within five years

After five years

Total

161

Further to the above, the Group has the following additional commitments as at 31 December 2006 are as follows:

In Million In Million In Million In Million In Million Baht US$ AUD Euro GBP

Raw material purchasing agreements (Malt & Hop) - 44.12 - 9.39 6.24

Molasses purchasing agreements 1,727.81 - - - -

Computer system installation agreements 309.13 - - - -

Advertising and sponsorship agreements 122.52 - - - -

Consulting and supervising service agreement

for beer production 31.68 - - - -

Other service agreements 32.43 0.14 - - -

Raw material sale agreements 6.66 - - - -

(a) During 2004, the Company and four subsidiaries entered into production and blending control agreements with a

specialist for a period of 40 years from 1 August 2004 to 1 August 2044. Under the agreements, the Company and its

subsidiaries are obliged to pay monthly service fees of Baht 4.3 million which are to be annually increased by 5% for the

first 20 years from August 1, 2004 to August 1, 2024. Afterwards, the Company has to pay monthly service fees of Baht

250,000 until the expiration of the agreements. Service fee under the agreements totaled Baht 1,766.20 million. As at 31

December 2006 the remaining commitments to be paid, relating to these agreements, amounted to Baht 1,636.72 million.

Subsequently, on 30 December 2005, the Company and the four subsidiaries entered into an addendum to the original

agreements described above. The addendum became effective on 1 January 2006 whereby the Company paid Baht 375

million and the four subsidiaries paid a total of Baht 1,625 million as consideration to the specialist in January 2006 to

exclusively secure his services. Under the addendum, the Company and the four subsidiaries concerned are entitled to

seek damages, not exceeding Baht 2,000 million, for any intentional breach that the specialist fails to remedy, including

non-performance of his contractual duties. Therefore, the total service fees under the agreements both outstanding and

already paid by the Company and its subsidiaries amounted to Baht 3,766.20 million.

(b) During 2005, a subsidiary renewed a sponsorship agreement with Everton Football Club, in the United Kingdom, for a

period of three years as from 1 June 2005 to 31 May 2008 in order to promote the Group’s businesses globally. Under

the agreement, the subsidiary is obliged to pay a minimum amount of £0.50 million and a maximum amount of £2.9 million

per year, dependent on the performance of Everton football team in each year.

29.Litigation

Since 2002 up to 2006, a subsidiary’s property tax assessment totaled Baht 167.82 million, recognised as expenses of

Baht 16.50 million and other current assets of Baht 151.32 million. However, the subsidiary filed an application to the

Central Tax Court to withdraw the assessment of the property tax (amount recognised as other current assets). During

2004 and 2006, the Central Tax Court ruled that the subsidiary should pay additional property taxes amounting to Baht

18.10 million. These additional taxes have been paid by the subsidiary and recognised as an expense.

162

The subsidiary has appealed and the case is currently being considered by the Central Tax Court and the Supreme Court.

The management of the subsidiary and their attorney believe that the likelihood of winning is high.

30.Eventsafterthebalancesheetdate

Significant events after the balance sheet date were as follows:

(a) The Executive Board of Directors’ Meeting No. 1/2007 held on 23 January 2007 unanimously approved the Company

to utilise the long-term loan facilities from a commercial bank in the amount of Baht 4,500 million in order to increase the

capital of International Beverage Holdings Limited in the amount of HK Dollar 980 million.

(b) The Board of Directors’ Meeting No. 1/2007 held on 9 February 2007 unanimously approved to sell land and building

of ThaiBev Tower Project to T.C.C. Hotel Collection Company Limited, a related party, in the amount of Baht 819 million

with a gain on sale of Baht 131.86 million.

(c) The Board of Directors’ Meeting No. 2/2007 held on 27 February 2007 unanimously agreed to propose a dividend

payment of Baht 0.22 per share, totalling Baht 5,524.20 million. The interim dividend was paid of Baht 0.11 per share,

amounting to Baht 2,762.10 million. The remaining is a dividend payment of Baht 0.11 per share, amounting to Baht

2,762.10 million

(d) The Executive Board of Directors’ Meeting No. 4/2007 held on 27 February 2007 unanimously passed for the

following solutions :

- Approval for Pacific Spirit (UK) Limited in principle of granting term loan facilities offered by Barclays Bank PLC.

in the amount of GBP 24 million.

- Approval for Inver House Distillers Limited in principle of granting credit facilities offered by Barclays Bank PLC.

in the amount of GBP 16 million.

- Approval in principle of capital increase of Red Bull Distillery (1988) Co., Ltd. from Baht 3,000 million to Baht

5,000 million by the issue of 200 million ordinary shares with a Baht 10 par value.

31.Reclassificationofaccounts

Certain accounts in the 2005 financial statements have been reclassified to conform with the presentation in 2006 the

financial statements.

32.Newandrevisedaccountingstandardsnotyetadopted

On 11 October 2006, the Federation of Accounting Profession (FAP) announced that the Thai Accounting Standard No.

44 (TAS No.44) “Consolidated Financial Statements and Accounting for Investments in Subsidiaries” is to be revised.

FAP announcement No. 26/2006 requires a parent company which has investments in a subsidiary company, an entity

163

under joint control, or an associate company, which is not classified as a “held for sale” investment, to record such

investment in accordance with either the cost method or with the recognition and measurement basis for financial

instruments (when an announcement is made), instead of the equity method currently used. This revision to TAS No. 44 is

applicable to financial statements covering periods beginning on or after 1 January 2007, with early adoption encouraged.

The Company will adopt the change in accounting treatment for its investments in subsidiaries and associates for its

separate financial statements from equity method to cost method on 1 January 2007 onward.

33.SignificantdifferencesbetweenThaiGAAPandIFRS(unaudited/unreviewed)

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles

in Thailand (“Thai GAAP”), which differ in certain significant respects from International Financial Reporting Standards

(“IFRS”). The following disclosure provides a summary of certain significant differences between Thai GAAP and IFRS, as

applicable to the consolidated financial statements of the Group, and a reconciliation of net profit and total shareholders’ equity

from Thai GAAP to IFRS. Neither the narrative summary nor the reconciliation should be construed as being exhaustive or

presented fairly in all material respects and are provided for information purposes only.

(a)Deferredtax

There is no Thai accounting standard currently effective in relation to accounting for income and deferred taxes. In 2007,

Thai GAAP plans to adopt TAS No. 56 Accounting for Income tax, which is not materially different from International

Accounting Standard (“IAS”) No.12 Income Taxes, with early adoption allowed. Whilst not specifically addressed in Thai

GAAP, provisions for income taxes are typically based on corporate income taxes currently payable in the period under the

Revenue Code of Thailand. The group has not opted for early adoption of TAS No. 56 and, as such, the Group does not

recognise deferred tax assets and liabilities.

Under IFRS, provision is made for deferred tax using a balance sheet approach, with deferred tax calculated on temporary

differences, being the differences between the tax and the book values of assets and liabilities. The deferred tax charge or

credit is the change in the period in deferred tax liabilities and assets. Deferred tax assets are recognised to the extent that

it is probable that future taxable profits will be available against which the temporary differences can be fully utilised.

(b)Employeebenefits

There is currently no Thai accounting standard in relation to accounting for employee benefits, including termination,

retirement and post-retirement benefits. The Group’s primary obligations in respect of employee benefits are contributions

on behalf of employees to provident funds and the payment of statutory severance benefits on retirement and terminating

employment involuntarily. Severance termination and retirement benefits vary according to various factors, including the

employee’s service life and salary. Whilst not specifically addressed in Thai GAAP, contributions are charged as an expense as

incurred.

Under IFRS, employee benefits are accounted for in accordance with IAS No. 19 Employee Benefits. Accordingly,

termination benefits are recognised as a liability and an expense when, and only when, the enterprise is demonstrably

committed to either terminate the employment of an employee or group of employees before the normal retirement date or

164

provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

Retirement benefits are recognised as a liability, being the net total of the present value of the obligation at the balance

sheet date less the fair value of any plan assets and recognised as an expense the net total of current service costs,

interest costs, past service costs and any actuarial gains and losses.

(c)Financialinstruments

Thai GAAP has certain disclosure requirements for financial instruments, but only limited guidance on the recognition and

measurement of financial instruments. The Group has decided not to recognise derivative financial instruments on the

balance sheet. However, foreign currency assets and liabilities hedged by these contracts are translated into Thai Baht at

exchange rates prevailing on the balance sheet date.

Under IFRS, derivative financial instruments are recognised on the balance sheet as either an asset or a liability initially at

cost, which is the fair value of consideration given (in the case of an asset) or received (in the case of a liability). Transaction

costs are included in the initial measurement. Subsequent to initial recognition, derivative financial instruments are stated

at fair value. Movements in fair values are recognised in the consolidated statement of income.

(d)Investmentinproperty

In accordance with Thai GAAP, owned land held to earn rentals is classified as part of property, plant and equipment.

This land is carried at a revalued amount less any subsequent accumulated impairment losses. Movements on the

revaluation surplus are reflected in equity.

Under IFRS, owned property held to earn rentals is classified as part of investment property. This is covered by IAS No. 40

Investment Property. IAS No. 40 allows enterprises to choose either a fair value model or a cost model to measure

investment property.

In accordance with the fair value model, an enterprise should measure all of its investment property at its fair value. A gain

or loss arising from a change in the fair value of investment property should be included in net profit or loss for the period

in which it arises.

In accordance with the cost model, land and buildings held as investment property should be measured at cost less any

accumulated impairment losses.

For the purposes of disclosure under IFRS, the Group has adopted the cost model for investment property consisting of

both land and buildings. For Thai GAAP, the land has been revalued while the buildings have not.

(e)Businesscombination(Goodwill)

Thai GAAP requires goodwill acquired in business combination to be systematically amortised over its estimated useful life,

although its useful life should not exceed 20 years from initial recognition.

165

Asreportedintheseconsolidatedfinancial

statementsunderThaiGAAP

Add (less) : Thai GAAP/IFRS differences

(net of tax effect)

(a) Deferred tax

(b) Employee benefits

(c) Financial instruments

(d) Business combination (Goodwill)

UnderIFRS

(in million Baht)

2006 2005 Consolidated net profit

Asreportedintheseconsolidatedfinancial

statementsunderThaiGAAP

Add (less) : Thai GAAP/IFRS differences

(net of tax effect)

(a) Deferred tax

(b) Employee benefits

(c) Financial instruments

(d) Investment in property

(e) Business combination (Goodwill)

UnderIFRS

(in million Baht)

2006 2005 Consolidated total shareholders’ equity




52,553.55 31,714.50

(1,428.73) (1,444.90)

(520.73) (459.09)

(70.54) (25.85)

(50.86) (50.86)

73.29 54.55

50,555.98 29,788.35

Under IFRS, acquired goodwill is measured after initial recognition at cost less any accumulated impairment losses.

Therefore, goodwill is not amortised and must be tested for impairment annually, or more frequently if events or changes in

circumstances indicate that it might be impaired.

10,054.78 10,337.25

16.12 128.58

(61.65) (54.95)

(44.69) 13.98

18.74 34.73

9,983.30 10,459.59

167

Interested Persons Transactions Report Annual Report 2006 - Thai Beverage Public Company Limited

Transactions in statements of income

Y-T-D

Jan. - Dec. 06

Description Reference Expenses Revenues

Revenue from sales and service income Attachment 1 - 178,462,319.37

Interest income Attachment 2 - 22,383.56

Other income Attachment 3 - 18,302,408.95

Cost of sales Attachment 4 4,977,498,478.12 -

Interest expense Attachment 5 109,000,366.16 -

Other expenses Attachment 6 274,214,504.09 -

Total 5,360,713,348.37 196,787,111.88

Net - expense 5,163,926,236.49

As at 31 Dec. 06

Transactions in balance sheets Assets Liabilities

Accounts receivable Attachment 7 21,080,549.67 -

Accounts payable Attachment 8 - 819,305,613.29

Amount due from and advances Attachment 9 64,334,647.95 -

Amount due to and advances Attachment 10 - 4,837,787,398.32

Purchase of assets Attachment 11 3,762,175.70 -

Total 89,177,373.32 5,657,093,011.61

Net - liabilities 5,567,915,638.29

168

Attachment 1

Revenue from sales and service income

Jan. - Dec. 2006

(Unit : Baht)

Company Type of transaction Amount

LSPV Co., Ltd. Purchasing service 163.90

Bang-Na Glass Co., Ltd. Purchasing service, sales of glass 1,113,052.25

Pisetkij Co., Ltd. Sales of glass remnants 28,603,942.90

PS Recycle Co., Ltd. Sales of scrap, hire of work 106,485,976.91

The Chonburi Sugar Corp. Ltd. Purchasing service, hire of work 3,639,073.98

The Mae Wang Sugar Industry Co., Ltd. Purchasing service 270,630.64

The Suphanburi Sugar Industry Co., Ltd. Purchasing service 366,567.52

Dhipaya Sugar (1999) Co., Ltd. Purchasing service 8,195.52

South East Capital Co., Ltd. Sales of water, rental and service 2,455,215.78

The Thai Glass Industries PCL Hire of work 92,651.77

T.C.C. Technology Co., Ltd. Purchasing service, sales of water 191,730.76

Thai Beverage Can Co., Ltd. Hire of work 16,861.91

Thai Charoen Insurance PCL Sales of drinking water 23,048.88

Plastic Agachon Co., Ltd. Purchasing service 2,155.00

Golden Wealth Co., Ltd. Sales of goods 10,692.00

T.C.C. Commercial Property Management

Co., Ltd. Sales of drinking water 545,504.09

T.C.C. Capital Co., Ltd. Sales of water 89,671.92

Siam Realty Co., Ltd. Sales of water 24,195.72

Southeast Assurance (2000) Co., Ltd. Advertising service, sales of drinking water 4,316,209.73

Southeast Life Assurance Co., Ltd. Advertising service 569,130.89

Plaza Athenee Hotel (Thailand) Co., Ltd. Sales of goods 1,251,691.46

Queen’s Park Hotel Co., Ltd. Sales of goods 123,766.76

Uttaradit Sugar Industry Co., Ltd. Sales of goods 392,577.29

T.C.C. Holding Co., Ltd. Sales of drinking water 60,314.04

Chroenwannakij Co.,Ltd. Construction service 23,210.00

T.C.C. AGRO Co., Ltd. Advertising service 48,406.32

169

Attachment 1

Revenue from sales and service income

Jan. - Dec. 2006

(Unit : Baht)


Tara Hotel Co., Ltd. Sales of goods 257,167.84

Regent Gold Property Fund Sales of drinking water 7,883.84

BJC Engineering Co., Ltd. Construction service 1,117,114.90

Oishi Trading Co., Ltd. Sales of goods 10,730,337.14

Lake View Land Co., Ltd. Sales of goods 671,787.00

North Park Golf And Sport Club Co., Ltd. Sales of drinking water 177,684.55

T.C.C. Land Co., Ltd. Sales of goods 76,782.78

TCCCL Sena Co., Ltd. Sales of goods, advertising service 1,778,224.53

TCCCL Narathiwad Co., Ltd. Sales of goods, advertising service 1,936,009.72

TCCCL Sukhumvit 24 Co., Ltd. Advertising service 2,219,626.17

TCC Hotel Collection Co.,Ltd. Sales of goods 1,569,014.29

Madrigal Trading Limited Sales of goods 7,196,048.67

Total 178,462,319.37

Attachment 2

Interest income

Jan. - Dec. 2006

(Unit : Baht)


Plastic Agachon Co., Ltd. Interest income 22,383.56

Total 22,383.56

170

Attachment 3

Other income

Jan. - Dec. 2006

(Unit : Baht)


Wattanapat Trading Co., Ltd. Rental and service 76,000.00

Pisetkij Co., Ltd. Sales of scrap 12,935,820.55

PS Recycle Co., Ltd. Sales of scrap 206,125.13

Poon Peum Karnsura Co., Ltd. Telephone bill 995.00

Dhipaya Sugar (1999) Co., Ltd. Rental and service 102,504.32

South East Capital Co., Ltd. Claim of document lost 4,000.00

The Thai Glass Industries PCL Sales of scrap, claim of damaged bottles 2,557,155.84

Thai Beverage Can Ltd. Compensation for beer 36,283.50

Berli Jucker PCL. Support for ThaiBev’s event 186,915.89

Thai Charoen Insurance PCL Claim of document lost 896,628.69

Plastic Agachon Co., Ltd. Transportation (employee) 3,500.00

Southeast Assurance (2000) Co., Ltd. Support for ThaiBev’s event 269,041.89

T.C.C. AGRO Co., Ltd. Gain on sales of asset 5,616.88

Best Spirits (China) Company Limited Reimbursement of telephone 3,479.20

BJC Engineering Co., Ltd. Rental 96,000.00

Oishi Trading Co., Ltd. Rental of booth, miscellaneous sales 715,800.00

Mae Ping Hotel (1988) Co., Ltd. Reimbursement of utilities 6,542.06

Mong Reththy Investment Cambodia

Oil Palm Co., Ltd. Sales of boiler 200,000.00

Total 18,302,408.95

171

Attachment 4

Cost of sales

Jan. - Dec. 2006

(Unit : Baht)


Praserdsuk Karnsura Co., Ltd. Purchase bottles 12,780.67

Surapiset Rungroj Co., Ltd. Utilities 858,955.00

Bang-Na Glass Co., Ltd. Purchase of used bottles 43,721,931.02

Pisetkij Co., Ltd. Purchase packing material 819.00

PS Recycle Co., Ltd. Purchase of used bottles 917,990,521.65

The Chonburi Sugar Corp. Ltd. Purchase of molasses 39,835,349.91

The Mae Wang Sugar Industry Co., Ltd. Purchase of molasses 23,952,535.10

The Suphanburi Sugar Industry Co., Ltd. Purchase of molasses 52,539,291.90

Dhipaya Sugar (1999) Co., Ltd. Purchase of molasses 7,652,426.80

South East Capital Co., Ltd. Car rental 3,886,305.15

The Thai Glass Industries PCL Purchase pallet, supplies 1,636,312.50

T.C.C. Technology Co., Ltd. Consultancy and system development 31,120,606.41

Thai Beverage Can Co., Ltd. Purchase packaging material 1,070,207,042.28

Berli Jucker PCL. Purchase of new bottles 1,971,160,065.11

Thai Charoen Insurance PCL Insurance service 35,542,637.78

Plastic Agachon Co., Ltd. Purchase of material 2,381,280.00

Golden Wealth Co., Ltd. Service charge 18,705.00

Southeast Assurance (2000) Co., Ltd. Insurance service 29,111,175.21

Southeast Life Assurance Co., Ltd. Insurance service 792,388.60

N.C.C. Management and Development Co., Ltd. Food and beverage 93,457.94

Plaza Athenee Hotel (Thailand) Co., Ltd. Food and beverage 293,996.88

Queen’s Park Hotel Co., Ltd. Food and beverage 319,508.38

Uttaradit Sugar Industry Co., Ltd. Purchase of molasses 32,078,860.08

T.C.C. AGRO Co., Ltd. Purchase of herb 3,305,220.00

Tara Hotel Co., Ltd. Food and beverage 18,859.81

Regent Gold Property Fund Office rental 1,003,120.75

New Noble Property And Loan Fund Land rental 14,239,860.00

172

Attachment 4

Cost of sales

Jan. - Dec. 2006

(Unit : Baht)


Mr. Pisanu Vichiensanth Hire of work 1,986,825.00

BJC Engineering Co., Ltd. Service charge 159,478.00

Indara Insurance Public Co., Ltd. Insurance service 5,280,409.59

Mae Ping Hotel (1988) Co., Ltd. Food and beverage 1,162,263.42

North Park Golf And Sport Club Co., Ltd. Food and beverage 534,200.63

Dynamic Assets Property and Loan Fund Land rental 50,808,000.00

Pan-Paper (1992) Co.,Ltd. Purchase paper 93,055.00

T.C.C. Ningbo Best Spirits Co., Ltd. Purchase liquor 8,342,644.66

Madrigal Trading Limited Purchase liquor 625,357,588.89

Total 4,977,498,478.12

Attachment 5

Interest expense

Jan. - Dec. 2006

(Unit : Baht)


South East Capital Co., Ltd. Int Expense 291,126.04

Great Oriole Limited Int Expense 108,709,240.12

Total 109,000,366.16

173

Attachment 6

Other expenses

Jan. - Dec. 2006

(Unit : Baht)


Surapiset Rungroj Co., Ltd. Utilities 17,137.79

Wattanapat Trading Co., Ltd. Reimbursement of utilities (984.00)

Pisetkij Co., Ltd. Purchase supplies 301,628.70

PS Recycle Co., Ltd. Reimbursement of packaging material (225,133.65)

Dhipaya Sugar (1999) Co., Ltd. Purchase sugar 81,448.01

South East Capital Co., Ltd. Car rental 81,984,478.98

The Thai Glass Industries PCL Damaged pallet 3,149,575.00

T.C.C. Technology Co., Ltd. Consultancy and system development 19,545,295.94

Berli Jucker PCL. Service charge 600.00

Thai Charoen Insurance PCL Insurance service 24,315,684.61

Sura Sumpun Co., Ltd. Rental, repair 3,426,876.00

Phatralanna Co., Ltd. Rental, service 240,000.00

Plastic Agachon Co., Ltd. Rental, service 892,493.97

Golden Wealth Co., Ltd. Service charge 68,330.00

T.C.C. Capital Co., Ltd. Service charge 558,879.31

Siam Realty Co., Ltd. Rental, service 503,600.00

Southeast Assurance (2000) Co., Ltd. Insurance service 8,741,278.62

Southeast Life Insurance Co., Ltd. Insurance service 5,719,080.80

Plaza Athenee Hotel (Thailand) Co., Ltd. Entertainment 52,170,775.41

Queen’s Park Hotel Co., Ltd. Entertainment 17,699,710.04

T.C.C. Holding Co., Ltd. Training 157,901.84

T.C.C. AGRO Co., Ltd. Travelling 747.66

Tara Hotel Co., Ltd. Entertainment 6,122,575.17

Regent Gold Property Fund Office rental, utilities, car parking 5,273,646.72

Chalitlarp Co., Ltd. Rental, service 180,000.00

Silvercord Capital Co., Ltd. Office shared cost 206,166.97

New Noble Property And Loan Fund Rental, service 918,395.00

174

Attachment 6

Other expenses

Jan. - Dec. 2006

(Unit : Baht)


BJC Marketing Co., Ltd. Entertainment 312,453.99

BJC Engineering Co., Ltd. Service charge 90,000.00

Indara Insurance Public Co., Ltd. Insurance service 1,029,669.32

Mae Ping Hotel (1988) Co., Ltd. Entertainment 5,434,790.80

Lake View Golf And Yacht Club Co., Ltd. Entertainment 1,594,882.05

Lake View Land Co., Ltd. Entertainment 550,487.04

The Imperial Lake View Hotel Co., Ltd. Entertainment 732,632.87

North Park Golf And Sport Club Co., Ltd. Entertainment 8,923,505.55

The Imperial Angkor Palace Hotel Co., Ltd. Entertainment, transportation 433,760.37

Kampuchea Liquor Trading Co., Ltd. Office shared cost 474,804.58

T.C.C. Land Leisure Co., Ltd. Entertainment 2,477,115.34

TCC Hotel Collection Co., Ltd. Entertainment, training 11,615,573.06

Dynamic Assets Property and Loan Fund Insurance service 2,177,323.39

Best Wishes Co., Ltd. Office shared cost 6,220,116.84

Pan-Paper (1992) Co., Ltd. Purchase A4 paper 97,200.00

Total 274,214,504.09

175

Attachment 7

Accountds receivable

As at 31 December 2006

(Unit : Baht)

Company Amount

LSPV Co., Ltd. 60.13

Pisetkij Co., Ltd. 3,848,926.32

PS Recycle Co., Ltd. 6,674,072.21

The Chonburi Sugar Corp. Ltd. 48,672.06

The Mae Wang Sugar Industry Co., Ltd. 22,347.74

The Suphanburi Sugar Industry Co., Ltd. 43,347.12

Dhipaya Sugar (1999) Co., Ltd. 69.55

South East Capital Co., Ltd. 27,399.54

The Thai Glass Industries PCL 18,080.64

T.C.C. Technology Co., Ltd. 26,119.93

Golden Wealth Co., Ltd. 11,440.44

T.C.C. Commercial Property Management Co., Ltd. 49,723.24

T.C.C. Capital Co., Ltd. 7,425.70

Siam Realty Co., Ltd. 16,948.80

Southeast Assurance (2000) Co., Ltd. 850,264.44

Southeast Life Assurance Co., Ltd. 231,413.49

Plaza Athenee Hotel (Thailand) Co., Ltd. 129,715.32

Queen’s Park Hotel Co., Ltd. 2,400.05

Uttaradit Sugar Industry Co., Ltd. 35,087.53

T.C.C. Holding Co., Ltd. 13,816.29

T.C.C. AGRO Co., Ltd. 37,670.76

Tara Hotel Co., Ltd. 30,414.98

Berli Jucker Foods Co., Ltd. 48,000.00

BJC Engineering Co., Ltd. 73,402.00

Oishi Trading Co., Ltd. 2,567,851.20

Mae Ping Hotel (1988) Co., Ltd. 1,680.00

Lake View Land Co., Ltd. 166,443.81

176

Attachment 7

Accountds receivable


(Unit : Baht)

Company Amount

North Park Golf And Sport Club Co., Ltd. 69,798.24

T.C.C. Land Co., Ltd. 62,535.74

TCCCL Narathiwad Co.,Ltd. 225.02

TCC Hotel Collection Co.,Ltd. 228,295.43

Madrigal Trading Limited 5,736,901.95

Total 21,080,549.67

Attachment 8

Accountds payable


(Unit : Baht)

Company Amount

Bang-Na Glass Co., Ltd. 205,102.04


PS Recycle Co., Ltd. 74,111,881.56 The Suphanburi Sugar Industry Co., Ltd. 3,348,578.33 Dhipaya Sugar (1999) Co., Ltd. 39,375.00 South East Capital Co., Ltd. 51,681.00 T.C.C. Technology Co., Ltd. 23,326.00 Thai Beverage Can Co., Ltd. 126,042,054.16 Berli Jucker PCL. 553,917,295.81 Southeast Assurance (2000) Co., Ltd. 538.21 T.C.C. AGRO Co., Ltd. 134,100.00 Mae Ping Hotel (1988) Co., Ltd. 250,306.36 Pan-Paper (1992) Co.,Ltd. 77,371.70 TCC Ningbo Best Spirits Co Ltd 1,520,005.85 Total 819,305,613.29

177

Attachment 9

Amount due from and advances


(Unit : Baht)

Company Amount


PS Recycle Co., Ltd. 36,872.27

The Chonburi Sugar Corp. Ltd. 7,974,045.99

The Mae Wang Sugar Industry Co., Ltd. 6,518,750.00

The Suphanburi Sugar Industry Co., Ltd. 12,031,250.00


The Thai Glass Industries PCL 1,462,886.88

Thai Beverage Can Co., Ltd. 38,823.35

Berli Jucker PCL. 7,155.00

Thai Charoen Insurance PCL 1,808,502.29

Padermchai Co., Ltd. 9,000.00

Southeast Assurance (2000) Co., Ltd. 1,752,939.53

Uttaradit Sugar Industry Co., Ltd. 6,671,875.00

T.C.C. AGRO Co., Ltd. 1,961,583.00

Chalitlarp Co., Ltd. 45,000.00

New Noble Property And Loan Fund 3,552,900.00

Best Spirits (China) Company Limited 3,722.74


Indara Insurance Public Co., Ltd. 1,150.40

T.C.C. Land Co., Ltd. 100,000.00

Dynamic Assets Property and Loan Fund 13,038,000.00

Mong Reththy Investment Cambodia Oil Palm Co.,Ltd. 234,502.79

Total 64,334,647.95

178

Attachment 10

Amount due to and advances


(Unit : Baht)

Company Amount

Surapiset Rungroj Co., Ltd. 172,821.90

Pisetkij Co., Ltd. 29,269.74

The Suphanburi Sugar Industry Co., Ltd. 67.41

Dhipaya Sugar (1999) Co., Ltd. 2,587.48

South East Capital Co., Ltd. 16,608,045.94

T.C.C. Technology Co., Ltd. 9,899,315.15

Thai Charoen Insurance PCL 1,214.45

Suratip Vieng Ping Co., Ltd. 65,400.00

Suratip Sawan Vichitr Co., Ltd. 65,100.00

T.C.C. Capital Co., Ltd. 51,049.70

Southeast Assurance (2000) Co., Ltd. 41,322,276.32

Plaza Athenee Hotel (Thailand) Co., Ltd. 10,883,063.89

T.C.C. Holding Co., Ltd. 106,450.00

Tara Hotel Co., Ltd. 923,941.06

Regent Gold Property Fund 59,528.00

Silvercord Capital Co., Ltd. 231,213.34

BJC Marketing Co., Ltd. 69,336.00


Indara Insurance Public Co., Ltd. 3,533,743.69

Mae Ping Hotel (1988) Co., Ltd. 1,491,366.15

Lake View Golf And Yacht Club Co., Ltd. 151,490.00

Lake View Land Co., Ltd. 234,738.75

North Park Golf And Sport Club Co., Ltd. 400,753.38

T.C.C. Land Co., Ltd. 400,000.00

Kampuchea Liquor Trading Co., Ltd. 413,021.13

TCC Hotel Collection Co.,Ltd. 6,666,224.54

179

Attachment 10

Amount due to and advances


(Unit : Baht)

Company Amount

Dynamic Assets Property and Loan Fund 1,605.59

Great Oriole Limited 4,743,851,305.06

Pan-Paper (1992) Co.,Ltd. 138,559.65

Total 4,837,787,398.32

Attachment 11

Purchase of assets


(Unit : Baht)

Company Amount

LSPV (2001) Co., Ltd. 616,000.00

Parksiri Co., Ltd. 638,505.00

Peampolkanka Co., Ltd. 788,508.78

Wattanapat Trading Co., Ltd. 25,000.00


Sukhothai Marketing Co., Ltd. 4,500.00

T.C.C. Technology Co., Ltd. 176,175.00

BJC Engineering Co., Ltd. 1,211,700.00

T.C.C. Capital Co., Ltd. 310.00

Total 3,762,175.70

180

Appexdix

Renewal of Shareholders’ Mandate for Interested Person Transactions

1. Background The Board of Directors of Thai Beverage Public Company Limited (the “Company”) refer to (a) the Notice of Annual General Meeting of the Company dated April 2, 2007 (the “Notice”), accompanying the Annual Report 2006, convening the Annual General Meeting (“AGM”) of the Company to be held on April 20, 2007, and (b) Resolution No. 9 under the heading “Special Business” set out in the Notice.

2. Shareholders’ Mandate Pursuant to the Company’s Prospectus dated 19 May 2006 (the “Prospectus”), approval of the Shareholders was deemed obtained for a shareholders’ mandate (the “Shareholders’ Mandate”) to enable the Company and its subsidiaries which are considered to be “entities at risk” within the meaning of Rule 904(2) of the listing manual (the “Listing Manual”) of the Singapore Exchange Securities Trading Limited (“SGX-ST”), in their ordinary course of businesses, to enter into categories of transactions with specified classes of the Company’s interested persons, provided that such transactions are entered into on an arm’s length basis and on normal commercial terms. The details of the interested person transactions and shareholders’ mandate were disclosed in pages 124 to 148 of the said Company’s Prospectus.

3. Proposed Renewal of the Shareholders’ Mandate The Shareholders’ Mandate was expressed to take effect until the conclusion of the next AGM. Accordingly, the Directors propose that the Shareholders’ Mandate be renewed at the forthcoming AGM on April 20, 2007, to take effect until the next AGM of the Company.

4. Details of the Shareholders’ Mandate and Extension of Shareholders’ Mandate to include the provisions of manufacturing services to and by Interested Persons Details of the Shareholders’ Mandate, including the rationale for, and the benefits to, the Company, the review procedures for determining transaction prices with interested persons and other general information relating to Chapter 9 of the Listing Manual, are set out in the Annexure to this Appendix.

The Company is also proposing to extend the Shareholders’ Mandate as set out in the Company’s Prospectus to include the obtaining of manufacturing and distributorship services from the specified classes of interested persons and the provision of manufacturing services to the specified classes of interested persons. The rationale for this extension of the Shareholders’ Mandate to allow for the provision of manufacturing and distributorship services from the specified classes of interested persons is to provide the Company, in times of growth and expansion, with the flexibility and quicker access to manufacturing capacity and a distributorship network should these interested persons be able to render these services on terms that are acceptable to the Company in accordance with the Shareholders’ Mandate. Similarly, where the Company has excess manufacturing capacity, the extension of the Shareholders’ Mandate to allow the Company to provide manufacturing services to the specified classes of interested persons, will facilitate the Company’s better use of its manufacturing capability, provided such services are rendered on terms that are acceptable to the Company in accordance with the Shareholders’ Mandate.

5. Audit Committee Statement The Audit Committee has reviewed the terms of the Shareholders’ Mandate and confirms that:-

(a) the review procedures for determining the transaction prices under the Shareholders’ Mandate have not changed since 19 May 2006, date of the Company’s prospectus; and

181

(b) the review procedures referred to in the Annexure are sufficient to ensure that the transactions will be carried out on normal commercial terms and will not be prejudicial to the interests of the Company and its minority Shareholders.

If, during the periodic reviews by the Audit Committee, it is of the view that the established review procedures are no longer appropriate or adequate to ensure that the Interested Person Transactions will be transacted on normal commercial terms and will not be prejudicial to the interests of the Company and minority Shareholders, the Company will seek a fresh mandate from Shareholders based on new review procedures.

6. Directors’ and Substantial Shareholders’ Interests The interests of the directors and substantial shareholders of the Company in the issued shares in the capital of the Company as at 21 January 2007 and 6 March 2007 respectively can be found in the Annual Report in respect of the financial year ended 31 December 2006 to be, or which has been, distributed to shareholders.

7. Abstention from Voting Mr. Charoen Sirivadhanabhakdi, Khunying Wanna Sirivadhanabhakdi, Mr. Thapana Sirivadhanabhakdi and Mr. Panote Sirivadhanabhakdi, who are Directors of the Company, have interests in the shares of the Interested Persons (as described in the Annexure to this Appendix), and also hold directorships and/or executive positions in them. They and their respective associates will abstain from voting on Resolution No. 9 being the Ordinary Resolution relating to the proposed renewal of the Shareholders’ Mandate in respect of their shareholdings in the Company, if any, at the forthcoming AGM.

8. Directors Recommendation The Directors who are considered independent for the purposes of the proposed renewal of the Shareholders’ Mandate are Mr. Komen Tantiwiwatthanaphan, Mr. Narong Srisa-an, Mr. Samut Hatthasing, Ms. Kanoknart Rangsithienchai, Mr. Chukiet Tangpongprush, Mr. Ueychai Tantha-Obhas, Mr. Sithichai Chaikriangkrai, Dr. Pisanu Vichiensanth, Mr. Vivat Tejapaibul, Mr. Puchchong Chandhanankij, Gen. Dr. Choo-Chat Khumbhu Na Ayudhya, Prof. Pornchai Matangkasombut, Mr. Michael Lau Hwai Keong, Mr. Sakthip Krairiksh, Mr. Staporn Kavitanon, Prof. Kanung Luchai, Mr. Manu Leopairote and Mr. Ng Tat Pun (the “Independent Directors”). The Independent Directors are of the opinion that the entry into of the Mandated Transactions described in the Annexure to this Appendix and those Interested Persons (as described in the Annexure to this Appendix is in the ordinary course of its business will be entered into to enhance the efficiency of the Group and are in the best interests of the Company.

For the reasons set out in the Annexure to this Appendix, the Independent Directors recommend that Shareholders to vote in favour of Resolution No. 9, being the Ordinary Resolution relating to the proposed renewal of the Shareholders’ Mandate at the Second AGM.

9. Directors’ Responsibility Statement The Directors collectively and individually accept responsibility for the accuracy of the information given herein and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief, the facts stated and the opinions expressed herein are fair and accurate and that there are no material facts the omission of which would make any statement herein misleading.

10. Action To Be Taken By Shareholders Any Shareholder who is not able to attend the AGM in person should please duly complete a proxy form and submit to the Chairman of the Meeting prior to his proxy attending the Meeting.

182

11. SGX-ST The SGX-ST takes no responsibility for the accuracy of any statements or opinions made in this Appendix.

ANNEXURE General Mandate for Interested Persons Transactions We anticipate that we would, in the ordinary course of business, continue to enter into certain transactions with our interested persons, including but not limited to those categories of transactions described below. In view of the time-sensitive nature of commercial transactions, it would be advantageous for us to obtain a shareholders’ mandate to enter into certain interested persons transactions in our ordinary course of business, provided that all such transactions are carried out on normal commercial terms and are not prejudicial to the interests of our Company and our minority Shareholders.

Chapter 9 of the Listing Manual allows a listed company to obtain a mandate from its shareholders for recurrent interested persons transactions which are of a revenue or trading nature or for those necessary for its day-to-day operations. These transactions may not include the purchase or sale of assets, undertakings or businesses which are not part of our day-to-day operations.

Pursuant to Rule 920(2) of the Listing Manual, our Company may treat a general mandate as having been obtained from our Shareholders (“Shareholders’ Mandate”) for us to enter into interested persons transactions with our interested persons, if the information required under Rule 920(1)(b) of the Listing Manual is included in this document. In relation to us, the information required by Rule 920(1)(b) is as follows:

(a) the class of interested persons with which the Entity At Risk (as defined below) will be transacting;

(b) the nature of the transactions contemplated under the mandate;

(c) the rationale and benefit to the Entity At Risk;

(d) the methods or procedures for determining transaction prices;

(e) the independent financial advisor’s opinion on whether the methods or procedures in (d) above are sufficient to ensure that the transactions will be carried out on normal commercial terms and will not be prejudicial to the interests of our Company and our minority Shareholders;

(f) an opinion from our Audit Committee if it takes a different view to the independent financial advisor; and

(g) a statement from us that we will obtain a new mandate from our Shareholders if the methods or procedures in (d) above become inappropriate.

The Shareholders’ Mandate will be effective until the earlier of the following: (i) our first annual general meeting following the Listing Date of our Company on the Main Board of the SGX-ST; or (ii) the first anniversary of the Listing Date. Thereafter, we will seek the approval of our Shareholders for renewal of the Shareholders’ Mandate at each subsequent annual general meeting.

Entities At Risk For the purposes of the Shareholders’ Mandate, an “Entity At Risk” means: • our Company; • a subsidiary of our Company that is not listed on the SGX-ST or an approved exchange; or • an associated company of our Company that is not listed on the SGX-ST or an approved exchange, provided that the Group or the Group and interested persons has control over the associated company.

183

Classes of Mandated Interested Persons The Shareholders’ Mandate will apply to our Group’s transactions with the list of interested persons as set out in the Schedule – List of Our Interested Persons and Mandated Interested Persons” (the “Mandated Interested Persons” and each a “Mandated Interested Person”).

Transactions with Mandated Interested Persons which do not fall within the ambit of the Shareholders’ Mandate shall be subject to the relevant provisions of Chapter 9 of the Listing Manual.

Mandated Transactions The transactions with interested persons which will be covered by the Shareholders’ Mandate (“Mandated Transactions”) relating to the provision to, or obtaining from, interested persons of products and services in the ordinary course of business of our Group or which are necessary for the day-to-day operations of our Group (but not in respect of the purchase or sale of assets, undertakings or businesses which are not part of our day-to-day operations) are as follows:

(a) purchases from interested persons of raw materials and packaging materials including new and used glass bottles, aluminium cans, molasses, herbs for the production of beer concentrate, cartons and caps;

(b) obtaining from interested persons of insurance and insurance-related services;

(c) purchases from interested persons of all kinds of consumer products, office and storage supplies including tissue paper and sugar for office use, scrap steel, malt bags and wooden pallets;

(d) obtaining from interested persons of services, including services relating to provision of accommodation, vehicles and facilities for the directors of the Company and/or subsidiaries, staff training, telecommunications and software licensing, marketing and advertising and management services and services for the manufacturing and distributorship of products;

(e) obtaining from interested persons of leases or subleases of office space, warehouses, passenger cars and land;

(f) provision to interested persons of services including procurement services, property improvement services, advertising and sales services and manufacturing services;

(g) lease or sub-lease to interested persons of office space, warehouses, passenger cars and land;

(h) sale to interested persons of by-products including fertilizer, used bottles, and factory remnants such as aluminium and glass remnants and scrap paper;

(i) sale to interested persons of our beer, spirits and water, and soda and other products; and

(j) provision or the obtaining of such other products and/or services which are incidental to or in connection with the provision or obtaining of products and/or services in sub-paragraphs (a) to (i) above.

Review Procedures for Interested Persons Transactions Our Audit Committee has oversight of all interested persons transactions undertaken by our Group including, the review and where required, approval of such transactions. For this purpose, our Board of Directors has appointed Mr. Ng Tat Pun, an independent non-executive Director and member of the Audit Committee, to lead the Audit Committee in its role in respect of interested persons transactions undertaken by our Group (the “Lead Independent Director for IPTs”). We have also established the following procedures to ensure that the interested persons transactions are undertaken on an arm’s length basis and on normal commercial terms.

184

Review Procedures and Threshold Limits In general, there are procedures established by our Group to ensure that interested persons transactions, including the Mandated Transactions with the Mandated Interested Persons, are undertaken on an arm’s length basis and on normal commercial terms consistent with our Group’s usual business practices and policies, and on terms which are generally no more favorable to the interested persons than those extended to or obtained from unrelated third parties.

In particular, the following review procedures have been implemented:

(1) Procurement and purchase of goods and obtaining services(a) All procurement and purchases made by our Group of a recurring nature which are in the ordinary course of business of our Group or which are necessary for the day-to-day operations of our Group, including procurement and purchases which are Mandated Transactions with Mandated Interested Persons (such as the transactions referred to in paragraphs (a), (b), (c), (d) and (j) above under “General Mandate for Interested Person Transactions - Mandated Transactions”) will be governed by internal control procedures, which detail matters such as the constitution of internal approving authorities, their approval limits, the number of vendors (minimum of two) who provide us quotes, and the review procedures. The guiding principle is to objectively obtain the best goods and/or services on the best terms through competitive quotations, if appropriate. In determining whether the price and terms offered by interested persons are fair and reasonable, factors such as, but not limited to, delivery schedules, specification compliance, track record, experience and expertise, preferential rates, discounts or rebates offered for bulk purchases, will be taken into consideration. In addition, each interested person transaction entered into by our Group will be monitored as an individual transaction and based on the value of the transaction, will require the prior approval of the corresponding approving authority who is a Director or management employee of the Group (not being an interested person or his associate) and who does not have any interests, whether direct or indirect, in relation to the transaction (the “Relevant Approving Authority”) as follows: Approval Limits Relevant Approving Authority

Interested person transaction not exceeding A deputy managing director or officer of equivalent rank Baht 500,000 in value

Interested person transaction above Baht 500,000 A managing director or officer of equivalent rank but not exceeding Baht 5 million in value

Interested person transaction above Baht 5 million A vice-chairman or officer of equivalent rank but not exceeding Baht 10 million in value

Interested person transaction above Baht 10 million A chairman or officer of equivalent rank but not exceeding Baht 20 million in value

Interested person transaction above Baht 20 million Any two vice-chairmen and/or chairmen or officers but not exceeding 3% of the latest audited net tangible of equivalent rank assets of the Group in value

Interested person transaction above 3% of the latest Any two Audit Committee members, one of whom audited net tangible assets of the Group in value must be the Lead Independent Director for IPTs

185

In relation to paragraph (j) above under “General Mandate for Interested Persons Transactions-Mandated Transactions,” the Relevant Approving Authority (as determined by the value of the transaction) will also assess and approve that the proposed transaction is one which is incidental to or in connection with the provision or obtaining of products and/or services in sub-paragraphs (a), (b), (c) and (d) above under “General Mandate for Interested Persons Transactions-Mandated Transactions.”

(b) In the event that we cannot obtain competitive quotations (for instance, if there are no unrelated third party vendors of similar products and services (taking into account quantum, specifications and delivery schedules among others), or if the product is proprietary in nature), based on the value of the proposed interested persons transaction, the corresponding Relevant Approving Authority as set out above (not being an interested person or his associate) and who does not have any interests, direct or indirect, in relation to the transaction, will determine whether the price and terms offered by the interested person are fair and reasonable.

(c) Purchases under the prevailing terms of the Glass Bottle Purchase Agreement dated 4 August 2004 entered into between Bang-Na Logistic Co., Ltd. and Berli Jucker Public Company Limited (the “Glass Bottle Purchase Agreement”) will be covered under the Shareholders’ Mandate, provided that any amendment to the material provisions of the Glass Bottle Purchase Agreement, including any adjustment authorized by the agreement to the purchase price for glass bottles pursuant to and any renewal or extension of tenure of the Glass Bottle Purchase Agreement, requires the approval of our Board of Directors and the Audit Committee.

(2) Other interested persons transactions of a recurring nature(a) We intend to conduct other interested persons transactions not covered by paragraph (1) above which are of a recurring nature and that occur in the ordinary course of business of our Group. These transactions are necessary for the day-to-day operations of our Group and include the sale of products and provisions of services to interested persons and lease or sub-lease of property to or from interested persons and the Mandated Transactions with Mandated Interested Persons referred to in paragraphs (e), (f), (g), (h), (i) and (j) under “General Mandate for Interested Persons Transactions-Mandated Transactions” above. We intend to conduct these transactions at the prevailing market rates or prices of the product or service to be provided, and at prevailing market rentals for leases and sub-leases of property, on terms no more favorable to the interested person than the usual commercial terms extended to or, where applicable, by unrelated third parties (including, where applicable, preferential rates, discounts to favored customers or for bulk purchases) or otherwise in accordance with applicable industry norms, provided that:

(i) in relation to the sale of products and provision of services which are not contemporaneously in time as the proposed interested person transaction being sold or provided to an unrelated third party, quotes from at least two other suppliers who are unrelated third parties not being the relevant interested person or his associates of similar products or services will be obtained; and

(ii) in relation to the lease or sub-lease of property, we are required to obtain enquiries with at least two landlords and/or tenants who are unrelated third parties not being the relevant interested person or his associates of similarly sized and located properties put to similar use.

In addition, each interested person transaction entered into by our Group will be monitored as an individual transaction and based on the value of the transaction, will require the prior approval of the corresponding Relevant Approving Authority who is a Director or management employee of the Group (not being an interested person or his associate) and who does not have any interests, whether direct or indirect, in relation to the transaction as follows:

186

Approval Limits Relevant Approving Authority


Interested person transaction above Baht 200,000 A managing director or officer of equivalent rank but not exceeding Baht 500,000 in value

Interested person transaction above Baht 500,000 A vice chairman or officer of equivalent rank but not exceeding Baht 5 million in value

Interested person transaction above Baht 5 million A chairman or officer of equivalent rank but not exceeding 3% of the latest audited net tangible assets of the Group in value

Interested person transaction above 3% of the latest Any two Audit Committee members, one of whom audited net tangible assets of the Group in value must be the Lead Independent Director for IPTs In relation to paragraph (j) above under “General Mandate for Interested Persons Transactions - Mandated Transactions,” the Relevant Approving Authority (as determined by the value of the transaction) will also assess and approve that the proposed transaction is one which is incidental to or in connection with the provision or obtaining of products and/or services in sub-paragraphs (e), (f), (g), (h) and (i) above under “General Mandate for Interested Persons Transactions-Mandated Transactions.”

(b) Where the prevailing market rates or prices are not available, whether due to the nature of products to be sold or services to be provided, the unavailability or impracticality of obtaining quotes from third party sources or otherwise, our Group’s pricing for these products and services will be determined in accordance with the Group’s usual business practices and pricing policies, consistent with the usual margin our Group will obtain for the same or substantially similar type of transaction with unrelated third parties. In determining the transaction price payable by Mandated Interested Persons for these products or services, factors such as, but not limited to, quantity, volume, consumption, customer requirements, specifications, duration of contract and strategic purposes of the transaction will be taken into account. In relation to leases and sub-leases of property, where prevailing market rentals are not available, whether due to the unavailability or impracticality of obtaining rental comparisons or otherwise, rental will be determined according to the Group’s usual business practices and policies. In addition, based on the value of the proposed interested person transaction, the corresponding Relevant Approving Authority as set out in paragraph (a) above (not being an interested person or his associate) and who does not have any interests, direct or indirect, in relation to the transaction, will determine whether the price and terms offered by the interested person are fair and reasonable.

(3) Non-recurring interested persons transactionsWe may from time to time also conduct interested persons transactions not covered by paragraphs (1) and (2) above and which do not form part of the Shareholders’ Mandate. These transactions are not of a recurring nature or occur outside the ordinary course of business of our Group or which may not be necessary for the day-to-day operations of our Group and include the purchase or sale of assets, undertakings or businesses which are not part of our day-to-day operations. We intend to conduct such transactions in accordance with the SGX-ST Listing Manual, including the threshold, approval

187

and other requirements under paragraphs 905 and 906 of the SGX-ST Listing Manual. In addition, we will monitor each transaction on an individual basis, and each transaction will require the prior approval of the corresponding Relevant Approving Authority below who is a Director or management employee of the Group (not being an interested person or his associate) and who does not have any interests, whether direct or indirect, in relation to the transaction. The Relevant Approving Authority will also review the transaction to ensure that they are carried out on normal commercial terms and not prejudicial to the interests of our Company and minority Shareholders:

Approval Limits Relevant Approving Authority


Interested person transaction above Baht 200,000 A managing director or officer of equivalent rank but not exceeding Baht 500,000 in value

Interested person transaction above Baht 500,000 A vice chairman or officer of equivalent rank but not exceeding Baht 5 million in value

Interested person transaction above Baht 5 million A chairman or officer of equivalent rank but not exceeding 3% of the latest audited net tangible assets of the Group in value

Interested person transaction above 3% of the latest Any two Audit Committee members, one of whom audited net tangible assets of the Group in value must be the Lead Independent Director for IPTs

In the event that these interested persons transactions require the approval of our Shareholders, additional information may be required to be presented to Shareholders and an independent financial adviser may be appointed for an opinion.

Other Review Procedures Our Audit Committee led by the Lead Independent Director for IPTs will also review all interested persons transactions including, Mandated Transactions to ensure that the prevailing rules and regulations of the SGX-ST (in particular, Chapter 9 of the Listing Manual) are complied with.

Our Group has also implemented the following procedures for the identification of interested persons transactions (including Mandated Transactions) and interested persons (including Mandated Interested Persons) and the recording of all our interested person transactions:

(a) our Group Chief Financial Officer will maintain a register of all transactions carried out with interested persons, including the Mandated Interested Persons (and the basis, including the quotations obtained to support such basis, on which these transactions are entered into), whether mandated or non-mandated; and

(b) on a quarterly basis, our Group Chief Financial Officer will submit a report to our Audit Committee of all recorded interested persons transactions, and the basis of all recorded interested persons transactions, entered into by our Group. Our Company’s annual internal audit plan will incorporate a review of all interested persons transactions, including the established review procedures for the monitoring of the interested persons transactions including Mandated Transactions, entered into or existing interested persons transactions that are renewed or revised during the current financial year, pursuant to the Shareholders’ Mandate.

188

In addition, our Audit Committee led by the Lead Independent Director for IPTs will review, on a quarterly basis, internal controls and review procedures for interested persons transactions to determine if they are adequate and/or commercially practicable in ensuring that the transactions between our Group and interested persons are conducted on normal commercial terms and are not prejudicial to the interests of our Company and our minority Shareholders. In conjunction with this review, our Audit Committee will also ascertain whether we have complied with the established review procedures. Further, if during these periodic reviews by our Audit Committee, our Audit Committee is of the view that the internal controls and review procedures for interested persons transactions are inappropriate or not sufficient to ensure that the interested persons transactions will be on normal commercial terms and not prejudicial to the interests of our Company and our minority Shareholders, our Audit Committee will (pursuant to Rule 920(1)(b)(iv) and (vii) of the Listing Manual) revert to our Shareholders for a new Shareholders’ Mandate based on new internal controls and review procedures for transactions with the Mandated Interested Persons. During the period prior to obtaining a new mandate from Shareholders, all transactions with interested persons will be subject to prior review and approval by the Audit Committee.

For the purposes of the above review of the internal controls and review procedures, any member of our Audit Committee who is not considered independent will abstain from participating in the Audit Committee’s review of the internal controls and review procedures.

Our Audit Committee will have overall responsibility for determining the review procedures with the authority to delegate to individuals or committees within our Group as they deem appropriate.

SCHEDULE

List of our Mandated Interested Persons Mandated Interested Persons

1. TCC Holding Co., Ltd. 2. Bang-Na Glass Co., Ltd. 3. Berli Jucker Cellox Co., Ltd. 4. BJC Engineering Co., Ltd. 5. Berli Jucker Foods Co., Ltd. 6. Berli Jucker Logistics Co., Ltd. 7. Berli Jucker Public Company Limited 8. Berli Jucker Special Co., Ltd. 9. BJC Marketing Co., Ltd. , 10. BJC Trading Co., Ltd. 11. Chalitlarp Co., Ltd. 12. Dhipaya Sugar (1999) Co., Ltd. 13. Golden Wealth Co., Ltd. 14. Indara Insurance Public Company Limited 15. Lake View Golf and Yacht Club Co., Ltd. 16. Lake View Land Co., Ltd. 17. Mae Ping Hotel (1988) Co., Ltd. 18. N.C.C. Management and Development Co., Ltd. 19. New Noble Property and Loan Fund 20. Nongkhai Country Golf Club Co., Ltd. 21. North Park Golf and Sports Club Co., Ltd. 22. P.S. Recycle Co., Ltd.

23. Pisetkij Co., Ltd. 24. Plastic Agachon Co., Ltd. 25. Plaza Athenee Hotel (Thailand) Co., Ltd. 26. Queen’s Park Hotel Co., Ltd. 27. Regent Gold Property Fund 28. Siam Realty Co., Ltd. 29. Southeast Capital Co., Ltd. 30. The Southeast Insurance (2000) Co., Ltd. 31. The Southeast Life Insurance Co., Ltd. 32. The Suphanburi Sugar Industry Co., Ltd. 33. Tara Hotel Co., Ltd. 34. T.C.C. Agro Co., Ltd. 35. T.C.C. Capital Co., Ltd. 36. T.C.C. Commercial Property Management Co., Ltd. 37. T.C.C. Technology Co., Ltd. 38. Thai Beverage Can Co., Ltd. 39. Thai Charoen Insurance Public Company Limited 40. The Chonburi Sugar Corporation Limited 41. Thai Glass Industries Public Company Limited 42. The Maewang Sugar Industry Co., Ltd. 43. The New Imperial Hotel Public Company Limited 44. The Utaradit Sugar Industry Co., Ltd.

189

Implementation and Status of ThaiBev’s SAP

Information technology systems are important to our ability to manage business. Even though the current accounting

closing activities can be supported by the existing system (principally the AS/400), we wish to gain the benefit of

Enterprise Resource Planning (ERP). In 2001, we began implementation of an ERP system called SAP for two breweries

and realized that there was a benefit in consistency and cooperation among business units; group harmonizing and

improved business processes; and centralized financial analysis presenting a credible and transparent accounting

of the costs and the business value realized. In 2006, our management therefore approved a budget to extend SAP

implementation to 34 subsidiaries around Thailand. The working committee issued bid invitations to various SAP

implementation vendors in Thailand and selected SAP Thailand as implementation vendor with the following milestones.

January 2007 SAP System goes live for four companies in the distillery group and Thai Alcohol PLC.

June 2007 SAP System goes live for ten companies in distillery group

July 2007 SAP System goes live for three companies in related business group

September 2007 SAP System goes live for four companies in related business group and five spirits and beer agency companies

January 2008 SAP System goes live for four companies in related business group, one brewery company and

Thai Beverage PLC.

Status of the Completion and Implementation of the Group’s Accounting Policies

ThaiBev developed an accounting manual in 2006, inviting Deloitte Touche Tohmatsu Jaiyos Advisory (Deloitte), part of

one of the world’s top four auditing firms, to assist. An accounting manual will be used eventually to aid in the uniform

understanding and utilization of the accounting system throughout companies in ThaiBev group. It formally comprises

our accounting policy, chart of accounts, organization chart, accounting process flow, samples of documents and

reports received and generated in the accounting process and etc. Deloitte delivered the accounting manual to ThaiBev

on December 22, 2006.

The initial four companies in the group to make use of this accounting manual are Thai Beverage PLC., the parent

company, Beer Thai (1991) PLC., a brewery, Sangsom Co., Ltd., a distiller, and Pomthip Co., Ltd., a marketing and

distribution company. All companies in ThaiBev group are expected to commence implementing the use of the

accounting manual within 2007.

Accounting Manual Policy / SAP System Annual Report 2006 - Thai Beverage Public Company Limited

190

Currently, the project is according to the schedule, as we have already gone live at five companies in the distillery group

and at Thai Alcohol PLC. We expect the 28 remaining companies to migrate to the SAP system under the project plan.

In addition, we plan to extend the implementation scope of the current project as follows:

• Extend SAP implementation to cover distillation operation at Sura Piset Thipharat Co., Ltd.

• Extend SAP implementation to cover production planning and plant maintenance at Cosmos Brewery (Thailand) Co., Ltd.

It is expected that the cost of the additional scope can be covered by the implementation budget approved by

management, but operation costs may slightly increase due to the increase in user licenses required.

In addition to the above SAP implementation project plan, we plan to interface BC-Accounting system of 12 companies

in the marketing business group to the SAP system by September 2008, and to extend SAP implementation to our

overseas businesses by the end of 2010.

191

Compliance with Singapore Exchange Regulations and Best Practices

From May to December 2006, the Company posted 96 announcements via SGX-Net categorized as follows:

1. Four announcements of quarterly financial statements and dividend declaration.

2. Fifty-seven notices of major (substantial) shareholders and directors’ interest and changes in interest. Each time

the Company Secretary was informed of the changes in interest of any director(s), the Company Secretary also

reported such information to other directors.

3. Four appointment announcements, consisting of a Senior Vice President, Company Secretary, Vice President - Office

of Controller, and Vice President - Office of Corporate Planning & Business Development.

4. Two announcements of acquisitions and realizations of assets of other companies resulting from acquisitions by

Company’s subsidiaries.

5. Twenty-nine miscellaneous announcements to conform to the regulations of the SGX, involving details of capital

increases of the Company’s subsidiaries, a summary of business performance results for each quarter for investors,

a clarification of news about the Company, and disclosure of connected transactions among interested persons.

Announcements to SGX 2006 Annual Report 2006 - Thai Beverage Public Company Limited

192

General Corporate Information Annual Report 2006 - Thai Beverage Public Company Limited

Thai Beverage Public Company Limited 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2328 Alcohol Group 1 Thai Alcohol Public Company Limited 31-35 Chalermkhet 1 Road, Khwaeng Wat Thepsirin, Khet Pomprab, Bangkok 10100 (02) 223 3116 (02) 225 4205 2 Moo 5, Tambon Bang Sai Pa, Amphoe Banglen, Nakhon Pathom 73130 (034) 391 021-4 (034) 234 909 Factory Brewery Group 1 Beer Thai (1991) Public Company Limited 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272-2441

349 Moo 2 Tambon Mae Lad Amphoe Klong Klung Kampaengphet 62120 (055) 728 400-15 (055) 728 371 Factory 2 Beer Thip Brewery (1991) Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500 (02) 617 9546

68 Moo 2, Tambon Namtoa, Amphoe Bangban, Ayutthaya 13250 (035) 259 333-47 (035) 289 371 Factory 3 Cosmos Brewery (Thailand) Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9549

Distillery Group 1 Sangsom Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 278 4321 (02) 278 3436 49 Moo 4, Tambon Hormkret, Amphoe Sampran, Nakhon Pathom 73111 (034) 321 777-9 (034) 321 777 Factory 1

37/3 Moo 7, Tambon Wangkhanai, Amphoe Thamuang, Kanchanaburi 71110 (034) 611 053 (034) 611 778 Factory 2

2 Fuengfuanant Co., Ltd. 333 Moo 1, Tambon Tha Toom, Amphoe Si Maha Phot, Prachin Buri 25140 (037) 285 016-20 (037) 285 237

3 Mongkolsamai Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

149 Moo 5, Wangseesoob Ngew-Ngam Road, Tambon Phajud, Amphoe Muang, Uttaradit 53000 (055) 449 126-30 (055) 449 131 Factory 4 Thanapakdi Co., Ltd. 315 Moo 4, Tambon Mae Faek, Amphoe San Sai, Chiangmai 50290 (053) 849 550-3 (053) 849 555

5 Kanchanasingkorn Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295

50 Moo 7, Tambon Wangkhanai, Amphoe Thamuang, Kanchanaburi 71110 (034) 611 783-5 (034) 611 786 Factory

Company Name Address Post Code Telephone Fax Remark

193


6 Sura Piset Thipharat Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295

7 Sura Bangyikhan Co., Ltd. 515-323-5 Moo 2, Tambon Prachathipat, Amphoe Thanya Buri, Pathum Thani 12130 (02) 589 2911-2 (02) 958 4380

82 Moo 3, Tambon Bang Khoo Wat, Amphoe Muang, Pathum Thani 12000 (02) 598 2850-9 (02) 598 2858 Factory 8 Athimart Co., Ltd. 170 Moo 11, Tambon Nikhom, Amphoe Satuek, Buri Ram 31150 (044) 627 200-3 (044) 627 202

(044) 681 011-2

9 S.S. Karnsura Co., Ltd. 101 Moo 8, Tambon Kaeng Dom, King Amphoe Sawang Wirawong, Ubon Ratchathani 34190 (045) 202 210-1 (045) 202 212

(045) 442 006-8

10 Kankwan Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295

309 Moo 6, Nampong-Kranuan Road, Tambon Nampong, Amphoe Nampong, Khon Kaen 40310 (043) 441 013-5 (043) 441 017 Factory 11 Theparunothai Co., Ltd. 99 Moo 4, Tambon Hat Kham, Amphoe Muang, Nong Khai 43000 (042) 462 657 (042) 420 211 (042) 420 208 12 Red Bull Distillery (1988) Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530 8 Moo 5, Setthakit 1 Road, Tambon Nadee, Amphoe Muang, Samut Sakhon 74000 (034) 830 216-6 (034) 831 000 Factory 13 United Winery & Distillery Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295 54 Moo 2, Sukhaphiban Road, Tambon Nakhonchaisri, Amphoe Nakhonchaisri, Nakhon Pathom 73120 (034) 331 954 (034) 331 955 Factory (034) 227 754-7 14 Simathurakij Co., Ltd. 1 Moo 6, Tambon Ban Daen, Amphoe Banphot Phisai, Nakhon Sawan 60180 (056) 279 088-9 (056) 279 091

15 Nateechai Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295 1 Moo 2, Highway No. 41 Road, Tambon Thakong Pang, Amphoe Punpin, Surat Thani 84130 (077) 357 170-3 (077) 357 174 Factory 16 Luckchai Liquor Trading Co., Ltd. 46 Moo 1, Tambon Nong Klang Na, Amphoe Muang, Ratchaburi 70000 (032) 321 791-2 (032) 321 793 (032) 313 611-2

194


Beer Marketing Group 1 Pomthip Co., Ltd. 2194 Charoen Krung Road, Khwaeng Wat Phraya Krai, Khet Bang Kho Laem, Bangkok 10120 (02) 291 9711 (02) 289 4751

2 Pomkit Co., Ltd. 48, 50, 52 Suranaree Road, Tambon Nai Muang, Amphoe Muang, Nakhon Ratchasima 30000 (044) 242 496 (044) 241 714

3 Pomchok Co., Ltd. Daw.16/1 U Thong Road, Tambon Tha Wasukri, Amphoe Phra Nakhon Si Ayutthaya, Ayutthaya 13000 (035) 241 678 (035) 241 032

4 Pomcharoen Co., Ltd. 135/3 Moo 4, Kanchanavithi Road, Tambon Bang Kung, Amphoe Muang, Surat Thani 84000 (077) 224 774 (077) 224 775

5 Pomklung Co., Ltd. 80/13-14 Ekathosarot Road, Tambon Nai Muang, Amphoe Muang, Phitsanulok 65000 (055) 219 110 (055) 219 024

6 Pomburapa Co., Ltd. 51/42 Moo 3, Sukhumvit Road, Tambon Ban Suan, Amphoe Muang, Chon Buri 20000 (038) 287 268 (038) 272 525

Liquor Marketing Group 1 Num Yuk Co., Ltd. 95/390-391 Trok Nokkhet, Rama III Road, Khwaeng Chong Nonsi, Khet Yannawa, Bangkok 10120 (02) 291 9711-5 (02) 289 4751

2 Num Thurakij Co., Ltd. 51/40-41 Moo 3, Sukhumvit Road, Tambon Ban Suan, Amphoe Muang, Chon Buri 20000 (038) 287 268-9 (038) 272 525

3 Num Muang Co., Ltd. Daw.16/2 Moo 1, U Thong Road, Tambon Tha Wasukri, Amphoe Phra Nakhon Si Ayutthaya, Ayutthaya 13000 (035) 242 691 (035) 242 691

4 Num Nakorn Co., Ltd. 149/3 Chulachomklao Road, Tambon Tha Kham, Amphoe Phun Phin, Surat Thani 84130 (077) 224 771-4 (077) 224 775

5 Num Palang Co., Ltd. 1/7-8 Phraya Surasi Road, Tambon Nai Muang, Amphoe Muang, Phitsanulok 65000 (055) 241 132 (055) 219 024

6 Num Kijjakarn Co., Ltd. 1, 3, 5 Trok Wat Muang, Suranaree Road, Tambon Nai Muang, Amphoe Muang, Nakhon Ratchasima 30000 (044) 242 496 (044) 241 747

Distribution Agent Group 1 Thipchalothorn Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

2 Krittayabun Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295

3 Surathip Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295

195


4 Sunthornpirom Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295 5 Piromsurang Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321

(02) 272 2295 Import - Export & Logistics Group 1 Thai Beverage Marketing Co., Ltd. 40/53 Vibhavadi Rangsit Road, Khwaeng Talat Bangkhen, Khet Laksi, Bangkok 10210 (02) 973 4100-5 (02) 973 4109 (02) 521 8040-1 2 Sahatipkarnkonsong Co., Ltd.* 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2316 * The name has been changed to “Thai Beverage Logistics Co., Ltd.” as of 30 Jan. 07

Related Business Group 1 Dhospaak Co., Ltd. 195 Empire Tower, 25th Floor, Sathon Tai Road, Khwaeng Yannawa, Khet Sathon, Bangkok 10120 (02) 670 2525 (02) 670 2535

2 Pan International (Thailand) Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

3 Bionic Humas Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

4 Maharas Agri Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2316

5 Thai Molasses Co., Ltd. 14 Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2316

6 Additive Food Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

7 Charun Business 52 Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

8 Thai Cooperage Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

9 Dhanasindhi Co., Ltd. 949/6-8 Nakhon Chaisi Road, Khwaeng Thanon Nakhon Chaisi, Khet Dusit, Bangkok 10300 (02) 241 0127 (02) 243 1607 (02) 241 0858 10 Bang-na Logistics Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road, Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

196


Overseas Group

1 International Beverage Holdings Limited Room 901-2, Silvercord Tower 1, 30 Canton Road,

Tsim Sha Tsui, Kowloon, Hong Kong (852) 2375 6648 (852) 2375 6188

Moffat Distillery, Airdrie, Lanarkshire, ML6 8PL,

Scotland 44 (0) 1236 769377 44 (0) 1236 779001

2 InterBev (Singapore) Limited 3 Philip Street # 13-04 Commerce Point,

Singapore 048693 (65) 6435 2161

3 InterBev (Cambodia) Co., Ltd. 140 Nehru (Street # 215) Sankat Vealvong,

Khan 7 Makara, Phnom Penh, Kingdom of Cambodia

4 InterBev Malaysia Sdn. Bhd. Suite 6.01, 6th Floor, Plaza See Hoy Chan,

Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia 47500 (603) 5631-1486 (603) 5635-8595

5 International Beverage Holdings Limited 405 Lexington Avenue, 25th Floor, Suite 2532,

USA, Inc. New York, USA 10174 (212) 907 6446-7 (1)(917) 368 8005

2711 Centerville Road, Suite 400, Wilmington,

New Castle, State of Delaware, USA 19808

6 Best Spirits Company Limited Room 901-2, Silvercord Tower 1, 30 Canton Road,

Tsim Sha Tsui, Kowloon, Hong Kong (852) 2375 6648 (852) 2375 6188

7 Pacific Spirits (UK) Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 1236 769377 44 1236 771372

8 Blairmhor Limited Moffat Distillery, Airdrie ML6 8PL, Scotland 44 1236 769377

9 Blairmhor Distillers Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 1236 769377 44 1236 769781 Dormant

10 Inver House Distillers Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 1236 769377 44 1236 769781

11 Liquorland Limited 8 Westbank Road, Belfast, BT3 9JL, Northern Ireland Dormant

12 Inver House Polska Limited ul. Obodrzyc?w 34 A/1, 81-812 Sopot, Poland Dormant

13 Wee Beastie Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377

14 Inver House Distribution SA Avenue des Tilleuls, 62140 Marconne, France Dormant

15 Moffat & Towers Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

16 The Knockdhu Distillery Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

17 Speyburn-Glenlivet Distillery Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

Company Limited

18 The Pulteney Distillery Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

19 The Balblair Distillery Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

20 Glen Calder Blenders Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

21 Hankey Bannister & Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

22 R. Carmichael & Sons Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

23 J MacArthur Junior & Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

24 Mason & Summers Limited 10 Foster Lane, London, EC2V 6HH, England 44 (0) 1236 769377 Dormant

25 James Catto & Company Limited Moffat Distillery, Airdrie, ML6 8PL, Scotland 44 (0) 1236 769377 Dormant

Company Legal Advisor White & Case (Thailand) Limited, 22nd floor, Mercury Tower, 540 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330

Company Compliance Advisor Venture Law LLC, 50 Raffles Place #31-01, Singapore Land Tower, Singapore 048623

Cerfified Public Accountant Mr. Nirand Lilamethwat (CPA No.2316) or Mr. Supot Singhasaneh (CPA No.2826) or Ms. Nittaya Chetchotiros (CPA No.4439) of KPMG Phoomchai Audit Ltd. has been appointed as Company Auditor on March 27, 2006.


Others

1 Vidhayathan Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road,

Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 617 9500-29 (02) 617 9530

2 Muangkij Co., Ltd. 9 Dao Khanong-Chom Thong Road,

Khwaeng Bang Kho, Khet Chom Thong, Bangkok 19500 (02) 272 2051 (02) 272 2584

3 T.C.C. Cosmo Corporation Limited 15 Moo 14, Vibhavadi Rangsit Road,


4 Pan Alcohol Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road,

Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2330 Dormant

5 Banglen Agriculture Co., Ltd. 31-35 Chalermkhet 1 Road, Khwaeng Wat Thepsirin,

Khet Pomprab, Bangkok 10100 (02) 223 3125 (02) 225 4205 Dormant

6 Archa Beer Co., Ltd. 4236/56 Trok Nokkhet, Rama III Road,

Khwaeng Bang Khlo, Khet Bang Kho Laem, Bangkok 10120 (02) 617 9500-29 (02) 617 9530

7 Beer Chang Co., Ltd. 15 Moo 14, Vibhavadi Rangsit Road,


8 Sint Ek Panich Co., Ltd. 31-35 Chalermkhet 1 Road, Khwaeng Wat Thepsirin,

Khet Pomprab, Bangkok 10100 (02) 223 3125 (02) 225 4205 Dormant

9 Sura Piset Sahasan Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road,


(02) 272 2295 Dormant

10 Sura Piset Samphan Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road,


(02) 272 2295 Dormant

11 Sura Piset Pattharalanna Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road,


# 1722 Dormant

12 Thai Thum Distillery Co., Ltd. 14 Soi Yasoob 1, Vibhavadi Rangsit Road,

Khwaeng Chomphol, Khet Chatuchak, Bangkok 10900 (02) 272 2051-5 (02) 272 2321,

# 1731 (02) 272 2295 Dormant

thaibev: annual report 2006

Documents

total liabilities

total assets

current ratio times

equity ratio times

total revenues

contents annual report

financial ratio return

ebitda ratio times