Dear Shareholders,

I am pleased to report that in 2019, Thai Beverage Public Company Limited (“ThaiBev”, or the “Group”) achieved a remarkable performance yet again. Our revenue grew 16.4% to Baht 267,357 million and our net profit rose 33% year-on-year to Baht 26,083 million. Our sales growth was a result of the recovery in domestic purchasing power and our efforts to bolster our leadership position in the ASEAN beverage market, as part of our Vision 2020.

The revenue of our spirits business showed satisfactory growth of 8.6% to Baht 115,036 million and our margins improved as net profit grew 10.4% to Baht 19,568 million for the year ended 30 September 2019. This was primarily driven by an increase in domestic sales volumes that resulted from growing purchasing power among consumers. ThaiBev remains committed to strengthening and maintaining our leadership position in the spirits business. This year, we added another distinctive feature to our “Ruang Khao” white spirit – new bottles with the embossed “Ruang Khao” name. We also expanded our vodka presence by bringing in the brand “Kulov Vodka” from Scotland to produce in Thailand and launched a herbal spirit “Phayanak”

to offer more choices to consumers who enjoy the taste of spirit mixed with traditional Thai herbs. In Myanmar, we revamped our products’ labels to reflect a more modern image. These changes were remarkably successful and resulted in Grand Royal Group’s strong double-digit growth in sales volumes.

In 2019, our domestic beer business enjoyed good growth due to the recovering domestic beer market and Sabeco’s beer business in Vietnam also achieved impressive growth. As a result, revenue from the beer business grew 26.6% to Baht 119,598 million and the business posted a net profit of Baht 3,154 million. Following this year, Chang approaches its 25th anniversary, and we celebrated this occasion with the launch of “Chang 25th Anniversary Cold Brew Lager”. This special 100% malt beer uses an innovative sub-zero filtration method to fully bring out the taste and aroma of the malt. At Sabeco, we focused on further growing and building business to steer the company towards becoming an international corporation with professional operations and strong brands. We revamped the image of “Bia Saigon” to portray a more modern image and to strengthen its brand identity as the pride of Vietnam. We also expanded our presence in the Myanmar beer market through an investment by Fraser and Neave, Limited in Emerald Brewery Myanmar Ltd. This brewery commenced operations to produce and distribute “Chang” beer in Myanmar, receiving positive feedback from consumers.

The revenue of our non-alcoholic beverage (“NAB”) business grew 7.5% in 2019 to Baht 17,390 million, due to the increase in sales volumes of key products – namely drinking water, carbonated soft drink and green tea. We adjusted the product portfolio, keeping the constantly changing preferences of consumers in mind. We reduced the sugar content in our beverages and offered sugar-free variants in response to the growing trend for healthier beverages. Even though the NAB business reported losses this year, we were pleased to note that the business turned around and registered positive EBITDA of Baht 555 million. This success was a result of our efforts to focus on selling products with higher margins, distributing our products through more profitable channels, and having better control over our expenses.

In 2019, our food business focused on branch expansion, generating revenue growth of 17.3% to Baht 15,561 million and a profit of Baht 472 million. This year, we opened 56 additional restaurants to extend our reach to as many consumers as possible, focused on food innovation to excite consumers, and utilized digital platforms to support the expansion of our delivery networks. We expanded further into the packaged food business by creating the brand “Oishi Eato” and tweaking the menu to keep up with consumer preferences.

Throughout our operations, ThaiBev aims to not only create growth and stability, but also considers our impact on society and the environment. We are proud to have been recognized as the Global Beverage Industry Leader for the second consecutive year, and have retained our listing as a member of the DJSI World Index and DJSI Emerging Markets. ThaiBev is the first beverage company in ASEAN that has been chosen as an Industry Leader and this reflects our continued determination to pursue sustainable development.

Our human capital development and management strategies have also been developed in line with our Vision 2020 goals. We have connected different experiences among employees in our Group through our Beverest system, a global human capital platform. In addition, we have developed a pool of potential talent, ranging from the younger generation to senior executives in Thailand, Singapore, Malaysia, Vietnam and Myanmar, to promote synergy within the Group and truly establish ASEAN as our home. As the younger generation makes up over half of our employees, we have focused on maximizing the potential of these digital era staff. This includes providing them with opportunities for both short and long-term career growth in Thailand, ASEAN, and other countries.

I would like to express my gratitude towards all shareholders, customers, partners and parties from all sectors for their constant support and unwavering trust. I would also like to show my appreciation for the determination and hard work demonstrated by the Board of Directors, the senior management team and all our employees throughout the year. ThaiBev will continue working with all our stakeholders to pursue sustainable progress and business growth, while upholding good corporate governance, social, and environmental responsibility, in order to create value and maximize benefits for all our stakeholders.

Thapana Sirivadhanabhakdi

President and CEO