8.  Capital Structure

(1) The Company’s Security

a)  Share capital: authorized common shares at Baht 1 par value totaling
    1,600,000,000 shares. Fully paid share capital is in 1,200,000,000
    shares. (At the Ordinary Shareholders’ meeting held on March 26,
    2003, the shareholders unanimously approved to change the par value
    of common shares of the Company from Baht 10 per share to Baht 1 per
    share. The Company registered the change with Department of Commerce
    on April 17, 2003.)

The Company does not issue other types of stocks, except from common shares.

The Company does not have any plans to issue and offer share or convertible securities for the Thai Trust Fund.

b)  The Siam Cement Public Company Limited issued 7 series of debentures
    valuing Baht 80,500 million. The Siam Pulp and Paper Public Company
    Limited also issued 1 totaling Baht 5,000 million. The interest rate
    differed for both fixed and floating rates with maturities of 3-6
    years (Details are disclosed in notes to the consolidated financial
    accounts in number 12, page 28).

c)  Among major shareholders, the Company does not have any shareholding
    agreements, which might affect its management.

Remarks : All eight placements of debenture were rated as “A” from Fitch
Ratings (Thailand)

Shareholders

First ten major shareholders of the Company as at its share transfer
registration-closing date on March 3, 2005 are as follows:

+-----+----------------------------------------+---------+------------+
| R   | Name                                   | Number  | % of Total |
| ank |                                        | of      | Shares     |
|     |                                        | Common  |            |
|     |                                        | Shares  |            |
+-----+----------------------------------------+---------+------------+
| 1   | Bureau of the Crown Property           | 360,    | 30.00      |
|     |                                        | 000,000 |            |
+-----+----------------------------------------+---------+------------+
| 2   | Thai NVDR Company Limited*             | 112,    | 9.35       |
|     |                                        | 162,190 |            |
+-----+----------------------------------------+---------+------------+
| 3   | State Street Bank and Trust Company    | 27,     | 2.30       |
|     |                                        | 542,917 |            |
+-----+----------------------------------------+---------+------------+
| 4   | CPB Equity Co., Ltd.                   | 23,     | 1.93       |
|     |                                        | 202,000 |            |
+-----+----------------------------------------+---------+------------+
| 5   | HSBC (Singapore) Nominees Pte Ltd      | 17,     | 1.47       |
|     |                                        | 681,514 |            |
+-----+----------------------------------------+---------+------------+
| 6   | Office of The Privy Purse              | 15,     | 1.29       |
|     |                                        | 473,000 |            |
+-----+----------------------------------------+---------+------------+
| 7   | Chase Nominees Limited 1               | 15,     | 1.27       |
|     |                                        | 275,220 |            |
+-----+----------------------------------------+---------+------------+
| 8   | Randery Burahmakan Co., ltd.           | 14,     | 1.23       |
|     |                                        | 810,400 |            |
+-----+----------------------------------------+---------+------------+
| 9   | Littledown Nominees Limited            | 14,     | 1.19       |
|     |                                        | 300,000 |            |
+-----+----------------------------------------+---------+------------+
| 10  | Cementhai Foundation **                | 13,     | 1.11       |
|     |                                        | 294,300 |            |
+-----+----------------------------------------+---------+------------+

Remarks * Dividend receiving right but non-voting right in shareholders’
meeting except for resolution in delisting from the Stock Exchange of
Thailand. Investors can find number of NVDR shares from website :
www.set.or.th.

  * Donated shares

(2) Dividend Policy

The Company’s dividend policy to measure its total annual dividend
payment to that of its total operating income for that particular year.
For the fiscal year 2004, the Company submitted to its shareholders for
approval, a dividend payout which represents 53% of the total operation
profit. This dividend payout takes into account the stability of the
Company’s financial structure, its investment plan, and its ability to
consistency pay an absolute dividend payout.

AS for the dividend policy of the Company’s subsidiaries, of which the
majority are wholly owned, the Company also takes into account the
stability of the financial structure and investment plan. Furthermore,
the Company does not have any policy of transfer pricing, which is
considered contrary to the principles of corporate governance.

From the Company’s total operating results and financial position, the Board made a resolution to propose the shareholders’ meeting for the dividend payment of 2004 at Baht 15.00 per share. The Company paid interim dividend at Baht 5.50 per share on August 26, 2004 and will pay the rest at Baht 9.50 per share on April 19, 2005. Dividend payment for the last ten years of the Siam Cement Public Company Limited are shown below:

(Unit : Baht/share)

+----------+---------------------+---------------------+--------------+
| Year     | Interim Dividend    | Annual Dividend     | Total        |
+----------+---------------------+---------------------+--------------+
| 1994     | 9.00                | 9.00                | 18.00        |
+----------+---------------------+---------------------+--------------+
| 1995     | 10.00               | 9.00                | 19.00        |
+----------+---------------------+---------------------+--------------+
| 1996     | 10.00               | 10.00               | 20.00        |
+----------+---------------------+---------------------+--------------+
| 1        | -                   | -                   | -            |
| 997-2000 |                     |                     |              |
+----------+---------------------+---------------------+--------------+
| 2001     | -                   | 10.00               | 10.00        |
+----------+---------------------+---------------------+--------------+
| 2002     | -                   | 30.00               | 30.00        |
+----------+---------------------+---------------------+--------------+
| 2003*    | 2.50                | 3.50                | 6.00         |
+----------+---------------------+---------------------+--------------+
| 2004     | 5.50 **             | 9.50 ***            | 15.00        |
+----------+---------------------+---------------------+--------------+

  * Shareholders approved to change par value of common shares from Baht
  10 per share to Baht 1 per share as per details in notes to financial
  accounts –“Share Capital”.

** Paid on August 26, 2004.

*** To be paid on April 19, 2005.