Part 1

Executive Summary

Polyplex (Thailand) Plc. (“PTL” or “the Company”), which was
incorporated on March 26, 2002 under the promotional privileges of the
Board of Investment (BoI), is in the business of manufacturing and
distributing Thin Polyester (“PET”) film. PTL is currently 70%-owned
subsidiary, through direct and indirect shareholding, of the India-based
Polyplex Corporation Limited (“PCL”), which is in the same business as
the Company’s for more than 20 years.

PET film is a high performance film produced from PET resin (also known
as PET chips). It is a versatile product catering to a broad range of
packaging, industrial, electrical, magnetic media and imaging
applications. Another broad classification made by the Industry is Thin
(including Magnetic media) and Thick PET films. The Company produces
only thin films and operates in the packaging, industrial and electrical
segments.

PTL’s plant, which is located at Siam Eastern Industrial Park, Rayong
Province, accommodates two PET film production lines each with a
production capacity of 19,500 tons per year, aggregating to a total
production capacity of 39,000 tons per year. However, the company has
obtained BOI approval for availing benefits & incentives upto a capacity
of 48000 tons per year. The company also has a captive facility to
manufacture Pet resin with a production capacity of 52,500 tons per year
and has utilized part of the surplus available for merchant sales
including exporting to its subsidiary company in Turkey. In 2005-06, the
Company had also set up capacity for Metallized PET film which is a
forward integration project for improving the product mix. The company
has also commenced production of Extrusion Coated films from April’08
and has also expanded its Metallized film capacity by putting up a new
line which commenced production from May’08. A project for CPP film line
is under implementation and is expected to commence operations in Q2
2009-10. The Board has approved in principle in May’08, a project to
invest in an additional Thin PET film line with associated facilities of
Polyester resin plant and Metallized film line. This project is expected
to start up within 12-18 months of financial closure. Size, an
integrated operation, cost efficiency and high productivity have been
the key competitive factors for the company. The company plans to
continue its focus on growth and value added films and is evaluating
several products / projects including OPP films and thick Pet films.

In May’08, the company’s subsidiary company in Turkey, Polyplex Europa
Polyester Film Sanayi ve Ticaret A.S. (PE) has started commercial
operations from its second PET film plant and also a second Metallized
film line. PE is a 100% subsidiary of Polyplex (Singapore) Pte Ltd
(PSPL), an investment holding company in Singapore which in turn is 100%
held by the company. The company had also acquired a distribution
company in the USA (Polyplex (Americas) Inc – formerly Spectrum
Marketing Inc) effective from January 1, 2006 in order to improve its
market penetration in the North American markets.

PTL began commercial operations from its first PET film line in April
2003 with the second line commissioned in November 2003. Its
consolidated sales revenue accounted for Bt. 1,645.47 million in
2003/04, rising to Bt. 3,262.97 million in the year 2004/05, Bt.
3,299.99 million in the year 2005/06 ,Bt 4,718.57 million in the year
2006-07 and Bt, 6,398.68 million in the year 2007-08, an increase of
288.87% over 4 years. Around 80-85% of PTL’s revenue comes from exports.
The key financial indicators for the Company (consolidated) are given
below:

  ------------------------ --------- ----------- ------------- -------------
                           Unit      2005-06     2006-07       2007-08

                                     Apr 05 –    Apr 06-Mar 07 Apr 07-Mar 08
                                     Mar 06                    

  Revenues                 Bt. Mn.   3,427       4,809         6,510

  Operating Profit         Bt. Mn.   463         339           851

  Operating Profit Margin  (%)       14.02%      7.17%         13.31%

  Net Profit               Bt. Mn.   561         342           814

  Net Profit Margin        (%)       16.37%      7.11%         12.50%

  Earning Per Share        Bt. Mn.   0.70**      0.43**        1.02**

  Return on Assets         (%)       11.98%      5.98%         11.51%

  Return on Equity         (%)       16.74%      9.76%         20.72%

  Debt to Equity Ratio     Times     0.61        0.66          0.92
  ------------------------ --------- ----------- ------------- -------------

** Par value Bt. 1 per share

In the year 2007/08, the Company and its subsidiaries has recorded about
35% higher revenues of Bt. 6,510 million with significantly higher net
profit margins of 12.50% as compared with 7.11% of 2006-07, and an EPS
of 1.02 (with par value of Bt. 1 per share). The increase in Net Profit
margin is due to the improvement in market situation of demand-supply in
2007-08. The industry has been recovering from the cyclical downtrend in
the PET film industry witnessed in 2005-2006 and 2006-07.Demand growth
has been catching up with supplies to create a balanced market situation
thereby giving manufacturers an opportunity to pass on significant Raw
material increases to end customers by way of a price increase. Net
profits have increased due to increase in volumes at Thailand as well as
Turkey and also due to cost efficiency in Turkey with the start up of
their Polyester resin plant in Dec’06.

As of March 31, 2008, PTL’s and its subsidiaries’ assets account for Bt.
8,299 million, total liabilities Bt. 3,970 million, and shareholders’
equity Bt. 4,329 million. It’s paid up registered capital is Bt. 800
million, divided into 800 million ordinary shares of par value of Bt. 1
each. On Nov’ 30 /Dec’ 1, 2004, the company had made an Initial Public
Offer for common shares aggregating 240 million shares of par value of 1
Baht each at an IPO price of Baht 6.90 per share.

The key risk factors in the company’s operations relate to cyclical
nature of the industry usually caused by over supply leading to
volatility in the margins besides foreign exchange risk given that most
of its earnings are from exports. Competition from existing/new
producers, volatility in raw material prices, threat of trade barrier
measures are the other risks which the company tries to mitigate through
various measures. The company has effective policies in place to
mitigate the risk of dependence on the parent company and risk from
overlap of products and markets within the group production companies.
(Details in Part-2)

(The investors should study the details in Part 2 before making
investment decision.)