MIRA INFORM REPORT

Report Date :

30.12.2011

IDENTIFICATION DETAILS

Name :	UNILEVER THAI HOLDINGS LTD.
Registered Office :	18 Scb Park Plaza Building 1, Ratchadapisek Road, Ladyao, Jatujak, Bangkok 10900
Country :	Thailand
Financials (as on) :	31.12.2010
Date of Incorporation :	20.12.1932
Com. Reg. No.:	0105475000033
Legal Form :	Private Limited Company
Line of Business :	Manufacturer, Importer, and Distributor Consumer Products
No. of Employees :	1,600

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Thailand	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name

UNILEVER THAI HOLDINGS LTD.

SUMMARY

ADDRESS : 18 SCB PARK PLAZA BUILDING 1,

RATCHADAPISEK ROAD, LADYAO, JATUJAK, BANGKOK 10900

TELEPHONE : [66] 2554-2000, 2554-2222, 2170-5200

FAX : [66] 2512-2622, 2512-2818

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1932

REGISTRATION NO. : 0105475000033 [Former : 234]

CAPITAL REGISTERED : BHT. 380,000,000

CAPITAL PAID-UP : BHT. 380,000,000

SHAREHOLDER’S PROPORTION : DUTCH : 100%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. PRACHA POKTHITIYUK, THAI

CHIEF EXECUTIVE OFFICER

NO. OF STAFF : 1,600

LINES OF BUSINESS : CONSUMER PRODUCTS

MANUFACTURER, IMPORTER,

AND DISTRIBUTOR

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was initially established in Thailand on December 20, 1932 as a private limited company under the registered name “Thai Industries [1932] Co., Ltd.” by Dutch group. On January 13, 1954 the subject’s name was changed to “Lever Brother [Thailand] Ltd.”

On September 5, 1997, its name was finally changed to UNILEVER THAI HOLDINGS LTD. It is a wholly owned subsidiary of Unilever Thai Trading Co., Ltd., which is a member of The Unilever group, the world’s largest consumer product companies. The subject currently employs 1,600 staff.

Its headquarters are in London, United Kingdom and Rotterdam, the Netherlands with subsidiaries and affiliates in 150 countries worldwide.

AWARD RECONITION

· The subject received numerous of International awards recognition such as the Environment Marketing Award in 1994 and 1995 Received ISO 9002 Quality Standard Certification and Good Manufacturing Practice Certification award for the country’s first ice-cream manufacturer.

· In April, 1998 the subject has received two certificates, one commending its concern for consumer rights, the other its sponsorship of the Consumer Protection Year 1998-1999 campaign.

· In December 1999, the company won award from the Japan Institute of Plant Maintenance for its Total Productive Maintenance [TPM] programme. [TPM has helped the company improve labour productivity by more than 30% while reducing machine down-time by 60%]

· On April 1, 2006, its marketing and distribution activity was transferred to Unilever Thai Trading Co., Ltd., the parent company.

The subject’s registered address was initially located at 411 Srinakarn Rd., Suanluang, Bangkok.

On August 29, 2000, the subject’s registered address was relocated to 18 SCB Park Plaza Building 1, Ratchadapisek Rd., Ladyao, Jatujak, Bangkok 10900, and this is the company’s current operation address.

THE BOARD OF DIRECTORS

Name	Nationality	Age
Mr. Pracha Pokthitiyuk	Thai	58
Mr. Sekpong Jiramanusnakorn	Thai	41
Ms. Nartrudee Arjharnwong	Thai	44
Mr. Surachet Chantree	Thai	37

AUTHORIZED PERSON

Two of the above directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Pracha Pokthitiyuk is the Chief Executive Officer.

He is Thai nationality with the age of 58 years old.

Mr. Sekpong Jiramanusnakorn is the General Manager.

He is Thai nationality with the age of 41 years old.

Ms. Nartrudee Arjharnwong is the Human Resources & Financial Director.

She is Thai nationality with the age of 44 years old.

Mr. Pichayane Tanprasert is the Production Director.

He is Thai nationality.

Mrs. Chanvipa Limpanon is the Products Manager.

She is Thai nationality.

Mr. Suwan Sutthikajornkijakarn is the Warehouse Manager.

He is Thai nationality.

BUSINESS OPERATIONS

The subject’s activity is the country’s number one manufacturer of consumer products.

The subject offers a wide range of best - selling’ brands with over 100 brands are renowned worldwide. The products can be classified under three main categories.

Home Care Products Group

These include Breeze and Omo detergents, Comfort fabric softener, Sunlight dishwashing liquid, Promax floor cleaners, Lux beauty soap, and Lifebuoy and Harmony soap.

Personal Care Products Group

These include Sunsilk, Clinic shampoos and conditioners; Close-Up toothpaste; Pond’s and Aviance skin care products; Citra and Vaseline body lotions; Rexona and Axe deodorants; Lux and Dove Beauty Soap.

Food and Beverages Products Group

These include Wall’s and Ben & Jerry’s ice-cream, Lipton tea, Best Foods jam, cream salad and Mayonnaise, and Knor food seasonings.

Unilever Thai Holdings also produces and distributes numerous products and chemicals for industrial use.

The subject also established three innovation centres in Thailand, nameed the Hair Innovation Centre, the Laundry Innovation Centre, and the Ice Cream Innovation Centre. These centres focus on in-depth study of consumer needs to develop better products for consumers. They are also centers of new product innovation for the South East Asia region.

Production and Product Quality Development

· Designing products that have the least possible effect on the environment. Thus, the Breeze Ultra and Omo concentrate detergents contain fewer chemicals and require less water. Cabinets for Wall’s ice cream are now CFC-free.

· Implementing environment-friendly production processes.

For example, the NTR [Non-Tower Route] system recycles water and reduces

fuel consumption by 80% in the production of concentrated detergent and

thus minimizes the impact to the environment.

· Creating new types of packaging that consume a minimum of natural resources. Detergent boxes are now designed for long and repeated use with refills rather than made from cardboard. Comfort fabric softener and Sunlight dishwashing liquid are sold with refills to minimize packaging waste. Containers for SunSilk shampoo, furthermore, are made from recyclable plastic.

· Further motivating are commitment, Unilever Thai Holdings won the “Environmental Marketing Award” for 1994 and 1995.

IMPORT

Some of raw materials are imported from United States of America, France, Italy, Singapore, Hong Kong, United Kingdom, Japan, Republic of China, Taiwan and Netherlands.

SALES [LOCAL]

100% of the products is distributed by Unilever Thai Trading Co., Ltd.

MAJOR CUSTOMER

Unilever Thai Trading Co., Ltd.

Big C Supercenter Public Company Limited

PARENT COMPANY

Unilever Thai Trading Co., Ltd.

Business Type : Distributor of consumer products

RELATED COMPANY

Unilever Thai Bestfoods Co., Ltd.

Business Type : Manufacturer and distributor of consumer and food products under

the brand name “BESTFOODS”

LITIGATION

Bankruptcy and Receivership

There are no litigation on bankruptcy and receivership cases filed against the subject found at Legal Execution Department for the past five years.

Others

There are no legal suits filed against the subject for the past two years.

CREDIT

Sales are by cash or on the credits term of 30-60 days

Local bills are paid by cash or on the credits term of 30-60-90 days.

Imports are by L/C at sight or T/T.

BANKING

Bangkok Bank Public Co., Ltd. [ Head Office : Silom Road ]

Siam Commercial Bank Public Co., Ltd. [ Head Office : Ratchadapisek Road ]

Bank of Ayudhya Public Co., Ltd. [ Head Office : Rama 3 Road ]

Krung Thai Bank Public Co., Ltd. [ Head Office : Sukhumvit Road ]

EMPLOYMENT

The subject employs approximately 1,600 staff. [office staff and factory workers]

LOCATION DETAILS

The premise is rented for operating administrative office at the heading address. Premise is located in commercial/residential area.

Factory and warehouses are located on 160,000 square meters of land, at 63 Moo 4,

Ladkrabang Industrial Estate, Chalongkrung Rd., Ladkrabang, Bangkok 10520.

Tel. : [66] 2326-0869, 2739-4500 Fax. : [66] 2326-0685.

REMARK

CREDIT OF US$ 125,000 AGAINST D/A TERM SHOULD BE IN ORDER.

COMMENT

The subject is the largest manufacturer of consumer goods in Thailand.

With more than 1,000 brands under its umbrella, consumers worldwide find the Unilever products in their trolleys. In Thailand products such as Breeze, Omo, Comfort, Lux, Dove, Sunlight, Vim, Lipton, Wall’s, Sunsilk, Clinic, Pond’s, Vaseline, Close-up are household well-known and recognized by consumers.

Unilever’s Thailand manufacture also served similar products to countries like Cambodia and Laos.

The subject has a solid business and its operating performance always remains profitable.

FINANCIAL INFORMATION

The capital was registered at Bht. 50,000,000 divided into 500,000 shares of Bht. 100 each.

Bht. 90,000,000 on March 16, 1979

Bht. 140,000,000 on January 9, 1981

Bht. 230,000,000 on May 3, 1983

Bht. 280,000,000 on June 22, 1984

Bht. 380,000,000 on March 21, 2000

The latest registered capital was increased to Bht. 380,000,000 divided into 3,800,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE

[as at April 22, 2011]

NAME	HOLDING	%
Unilever Thai Trading Co., Ltd. Nationality : Dutch Address : 18 SCB Park Plaza Building 1,Ratchadapisek Rd., Ladyao, Jatujak, Bangkok 10900	3,799,994	100.00
New Asia BV. Nationality : Dutch Address : Rotterdam, Netherlands	4	-
Thai B1 BV. Nationality : Dutch Address : Rotterdam, Netherlands	1	-
Thai B2 BV. Nationality : Dutch Address : Rotterdam, Netherlands	1	-

Total Shareholders : 4

Share Structure [as at April 22, 2011]

Nationality	Shareholders	No. of Share	% Shares
Thai	-	-	-
Dutch	4	3,800,000	100.00
Total	4	3,800,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Ms. Varaporn Vorathitikul No. 4474

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2010 & 2009 were:

ASSETS

Current Assets	2010	2009
Cash and Cash Equivalents	30,556,622	355,940,549
Trade Accounts Receivable
- Related company	2,956,487,024	1,968,649,833
- Other company	3,706,382	11,246,432
Receivable-Related Company	85,926,287	88,090,801
Inventories	858,050,174	647,355,878
Derivative Assets	2,365,927	1,356,172
Other Current Assets	323,834,125	235,167,278
Total Current Assets	4,260,926,541	3,307,806,943
Loan to Employees	5,023,635	7,021,997
Intangible Assets	249,647,255	255,310,560
Fixed Assets	3,248,871,755	2,766,613,509
Other Assets	57,866,544	83,878,087
Total Assets	7,822,335,730	6,420,631,096

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2010	2009
Current Portion of Long-term Loan from Financial Institutions	2,500,000,000	-
Trade Accounts Payable
- Related company	145,710,237	52,277,249
- Other company	2,934,415,645	2,141,618,433
Account Payable-Related Company	111,829,968	172,237,201
Current Portion of Financial Lease Contract Liabilities	118,557,153	92,517,959
Accrued Income Tax	25,052,685	58,837,479
Accrued Expenses	146,745,070	102,377,938
Derivative Liabilities	25,735,179	49,802,059
Other Current Liabilities	445,313,331	148,753,116
Total Current Liabilities	6,453,359,268	2,818,421,434
Long-term Loan from Financial Institution	-	2,500,000,000
Financial Lease Contract Liabilities	36,916,315	155,473,468
Estimated Liabilities for Employees’ Award	16,521,598	27,695,104
Estimated Liabilities for Employees’ Pension	435,156,085	432,190,401
Estimated Liabilities for Employees’ Benefit	3,025,396	1,567,783
Total Liabilities	6,944,978,662	5,935,348,190
Shareholders' Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 3,800,000 shares	380,000,000	380,000,000
Capital Paid	380,000,000	380,000,000
Statutory Reserve	38,000,000	38,000,000
Retained Earning - Unappropriated	459,357,068	67,282,906
Total Shareholders' Equity	877,357,068	485,282,906
Total Liabilities & Shareholders' Equity	7,822,335,730	6,420,631,096

PROFIT & LOSS ACCOUNT

Revenue	2010	2009
Sales	17,617,484,042	16,494,838,949
Other Income	256,631,783	204,208,432
Total Revenues	17,874,115,825	16,699,047,381
Expenses
Cost of Goods Sold	16,506,969,284	14,788,698,997
Administrative Expenses	745,397,101	712,200,290
Total Expenses	17,252,366,385	15,500,899,287
Profit before Financial Expenses & Income Tax	621,749,440	1,198,148,094
Financial Expenses	[108,234,029]	[164,320,349]
Profit before Income Tax	513,515,411	1,033,827,745
Income Tax	[121,441,249]	[342,494,343]
Net Profit / [Loss]	392,074,162	691,333,402

FINANCIAL ANALYSIS

ITEM	UNIT	2010	2009
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.66	1.17
QUICK RATIO	TIMES	0.48	0.86
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	5.42	5.96
TOTAL ASSETS TURNOVER	TIMES	2.25	2.57
INVENTORY CONVERSION PERIOD	DAYS	18.97	15.98
INVENTORY TURNOVER	TIMES	19.24	22.84
RECEIVABLES CONVERSION PERIOD	DAYS	0.08	0.25
RECEIVABLES TURNOVER	TIMES	4,753.28	1,466.67
PAYABLES CONVERSION PERIOD	DAYS	64.89	52.86
CASH CONVERSION CYCLE	DAYS	(45.84)	(36.63)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	93.70	89.66
SELLING & ADMINISTRATION	%	4.23	4.32
INTEREST	%	0.61	1.00
GROSS PROFIT MARGIN	%	7.76	11.58
NET PROFIT MARGIN BEFORE EX. ITEM	%	3.53	7.26
NET PROFIT MARGIN	%	2.23	4.19
RETURN ON EQUITY	%	44.69	142.46
RETURN ON ASSET	%	5.01	10.77
EARNING PER SHARE	BAHT	103.18	181.93
LEVERAGE RATIO
DEBT RATIO	TIMES	0.89	0.92
DEBT TO EQUITY RATIO	TIMES	7.92	12.23
TIME INTEREST EARNED	TIMES	5.74	7.29
ANNUAL GROWTH
SALES GROWTH	%	6.81
OPERATING PROFIT	%	(48.11)
NET PROFIT	%	(43.29)
FIXED ASSETS	%	17.43
TOTAL ASSETS	%	21.83

PROFITABILITY RATIO

Gross Profit Margin	7.76	Deteriorated	Industrial Average	28.80
Net Profit Margin	2.23	Impressive	Industrial Average	(12.13)
Return on Assets	5.01	Impressive	Industrial Average	(2.01)
Return on Equity	44.69	Impressive	Industrial Average	4.47

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. The company's figure is 7.76%. When compared with the industry average, the ratio of the company was lower. This indicated that company was originated from the problems with control over its costs.

Net Profit Margin is the indicator of the company's efficiency in that net profit takes into consideration all expenses of the company. A low profit margin indicates a low margin of safety, higher risk that a decline in sales will erase profits and result in a net loss. The company's figure is 2.23%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient operator in a dominant position within its industry.

Return on Assets measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. Return on Assets ratio is 5.01%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

Return on Equity indicates how profitable a company is by comparing its net income to its average shareholders' equity, ROE measures how much the shareholders earned for their investment in the company. Return on Equity ratio is 44.69%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Downtrend

Return on Equity Uptrend

LIQUIDITY RATIO

Current Ratio	0.66	Risky	Industrial Average	23.90
Quick Ratio	0.48
Cash Conversion Cycle	(45.84)

The Current Ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities. The company's figure is 0.66 times in 2010, decreased from 1.17 times, then the company may not be efficiently using its current assets. When compared with the industry average, the ratio of the company was lower.

The Quick Ratio is a liquidity indicator that further refines the current ratio by measuring the amount of the most liquid current assets there are to cover current liabilities. The company's figure is 0.48 times in 2010, decreased from 0.86 times, then the company has not enough current assets that presumably can be quickly converted to cash for pay financial obligations.

The Cash Conversion Cycle measures the number of days a company's cash is tied up in the production and sales process of its operations and the benefit from payment terms from its creditors. It meant the company could survive when no cash inflow was received from sale for -46 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE RATIO

Debt Ratio	0.89	Impressive	Industrial Average	1.01
Debt to Equity Ratio	7.92	Risky	Industrial Average	1.29
Times Interest Earned	5.74	Deteriorated	Industrial Average	410.61

Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. A lower the percentage means that the company is using less leverage and has a stronger equity position.

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 5.75 higher than 1, so the company can pay interest expenses on outstanding debt.

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.89 greater than 0.5, most of the company's assets are financed through debt.

Trend of the average competitors in the same industry for last 5 years

Debt Ratio Uptrend

Times Interest Earned Uptrend

ACTIVITY RATIO

Fixed Assets Turnover	5.42	Deteriorated	Industrial Average	1,393.86
Total Assets Turnover	2.25	Impressive	Industrial Average	1.53
Inventory Conversion Period	18.97
Inventory Turnover	19.24	Impressive	Industrial Average	16.73
Receivables Conversion Period	0.08
Receivables Turnover	4,753.28	Impressive	Industrial Average	17.35
Payables Conversion Period	64.89

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover Uptrend

Total Assets Turnover Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.36
UK Pound	1	Rs.82.51
Euro	1	Rs.68.99

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.