8. CAPITAL STRUCTURE 

8.1 The Company’s Securities 

8.1.1 Registered and paid-up capital 

  The following table shows details of the Company’s capital, as at 31
  December 2006:

  Registered Capital

As at 31 December 2006

+----------------+------------------+------------+--------------------+
|                | Number of Shares | Par Value  | Registered Capital |
|                |                  |            |                    |
|                |                  |            | (Baht)             |
+----------------+------------------+------------+--------------------+
| Ordinary       | 920,475,835      | 1.00       | 920,475,835        |
| shares         |                  |            |                    |
+----------------+------------------+------------+--------------------+
| Preferred      | 2,226,850        | 1.00       | 2,226,850          |
| shares         |                  |            |                    |
+----------------+------------------+------------+--------------------+
| Total          | 922,702,685      |            | 922,702,685        |
+----------------+------------------+------------+--------------------+

  Paid-up Capital

As at 31 December 2006

+----------------+------------------+------------+--------------------+
|                | Number of Shares | Par Value  | Registered Capital |
|                |                  |            |                    |
|                |                  |            | (Baht)             |
+----------------+------------------+------------+--------------------+
| Ordinary       | 727,825,372      | 1.00       | 727,825,372        |
| shares         |                  |            |                    |
+----------------+------------------+------------+--------------------+
| Preferred      | 2,226,850        | 1.00       | 2,226,850          |
| shares         |                  |            |                    |
+----------------+------------------+------------+--------------------+
| Total          | 730,052,222      |            | 730,052,222        |
+----------------+------------------+------------+--------------------+

  In the first quarter of 2006, 134,000 preferred shares (2005: 332,000
  shares) were converted into ordinary shares at ratio of one preferred
  share to one ordinary share. The Company registered this conversion
  with the Ministry of Commerce on 14 March 2006.

8.1.2 Preferred Shares

  As at 31 December 2006, the Company had issued and paid-up preferred
  shares of 2,226,850 shares. Preferred shareholders have similar rights
  to ordinary shareholders, except for the right to dividends, which is
  detailed in Section 8.3 Dividend Policy. In February of every year,
  preferred shareholders can convert their preferred shares into
  ordinary shares at the rate of one preferred share to one ordinary
  share.

8.1.3 Thai Trust Funds of Non-Voting Depository Receipts (NVDR) 

  As at 19 February 2007, there were 40,735,894 shares held in NVDR.
  This accounts for 5.58 percent of the total share. The shares held by
  NVDR will not be entitled to voting rights.

8.1.4 Convertible bonds 

  As at 31 December 2006, the Company has two tranches of convertible
  bonds in a total outstanding amount of Baht 550 million. Details of
  each tranch are as follows:

  ------------------------------------------------------------------------
  Name             BH Partly Secured           BH Partly Secured
                   Convertible Bonds Series #1 Convertible Bonds Series #2
                   Due 2012                    Due 2012
  ---------------- --------------------------- ---------------------------
  Date of issue    24 August 2000              24 August 2000

  Issuing amount   Baht 300 million            Baht 1,000 million

  Outstanding      Baht 300 million            Baht 250 million
  amount                                       

  Maturity         12 years                    12 years

  Coupon rate      2.5% for year 1-4, 5% for   1%
                   year 5-8 and 10% for year   
                   9-12                        

  Terms of payment Semiannually                Semiannually

  Current          Baht 4.55                   Baht 3.50
  conversion price                             

  Conversion       The bondholders have the    The bondholders have the
  option           option to convert the bonds option to convert the bonds
                   into ordinary shares        into ordinary shares
                   throughout the life of the  throughout the life of the
                   bonds.                      bonds.

  Forced           On the maturity date, the   On the maturity date, the
  conversion       Company has the option to   Company has the option to
  feature          either redeem the           either redeem the
                   convertible bonds or to     convertible bonds or to
                   convert the bonds into      convert the bonds into
                   ordinary shares             ordinary shares

  Collateral       A mortgage of the Company’s A mortgage of the Company’s
                   land                        land

  Credit rating    Not required as the bonds   Not required as the bonds
                   were issued to specific     were issued to specific
                   investors with restriction  investors with restriction
                   on transfer of the bonds of on transfer of the bonds of
                   maximum of 10 bondholders   maximum of 10 bondholders
                   at any time                 at any time
  ------------------------------------------------------------------------

8.1.5 Agreement between major shareholders

  A letter of undertaking has been signed between the Company, Istithmar
  and Temasek that Istithmar and Temasek together shall be entitled to
  nominate a single director and a single observer to the Company’s
  board of directors, which director seat and observer seat shall be
  rotated between Istithmar and Temasek every year, so long as the
  combined shareholding by Istithmar and Temasek continue to exceed 5%
  of the Company’s ordinary shares on a fully diluted basis.

8.2 Shareholders

  List of Company’s 10 major shareholders as at 19 February 2007 is as
  follows:

+------------------------------------------+------------+--------------+
| Shareholder                              | Number of  | Sh           |
|                                          | shares*    | areholding** |
|                                          |            |              |
|                                          |            | (%)          |
+==========================================+============+==============+
| 1. Bangkok Insurance Pcl.                | 96,286,402 | 13.19        |
+------------------------------------------+------------+--------------+
| 2. HSBC (Singapore) Nominees Pte Ltd     | 77,206,000 | 10.58        |
+------------------------------------------+------------+--------------+
| 3. Sinsuptawee Asset Management Co.,     | 63,258,514 | 8.66         |
| Ltd.                                     |            |              |
+------------------------------------------+------------+--------------+
| 4. Istithmar PJSC                        | 43,370,743 | 5.94         |
+------------------------------------------+------------+--------------+
| 5. Thai NVDR Co., Ltd.                   | 40,735,894 | 5.58         |
+------------------------------------------+------------+--------------+
| 6. UOB Kay Hian Private Limited          | 30,920,390 | 4.24         |
+------------------------------------------+------------+--------------+
| 7. Wattanasophonpanich Co., Ltd.         | 25,121,875 | 3.44         |
+------------------------------------------+------------+--------------+
| 8. Littledown Nominees Limited 9         | 24,615,100 | 3.37         |
+------------------------------------------+------------+--------------+
| 9. Citibank Nominees Singapore Pte Ltd - | 21,685,372 | 2.97         |
| Aranda Investments Pte Ltd               |            |              |
+------------------------------------------+------------+--------------+
| 10. TLS Alpha Pte Ltd                    | 21,685,371 | 2.97         |
+------------------------------------------+------------+--------------+
| Total                                    | 4          | 60.94        |
|                                          | 44,885,661 |              |
+------------------------------------------+------------+--------------+

  * Number of shares includes both preferred shares and common shares

  ** The calculation of holding percentage includes both preferred
  shares and ordinary shares

  The Company has shareholders in the top ten major shareholders list
  who are foreign financial institutions or custodians acting as trust
  companies or nominee accounts. The Company has no knowledge of the
  ultimate shareholders of these companies as these shareholders have
  never nominated their representatives to serve on the Board of
  Directors or take part in the management of the Company.

  The shareholders with significant influence on the policies or
  management of the Company

  Bangkok Bank Pcl, the major shareholder of the Company with 9.75*
  percent shareholding, has 2 representatives on the Board of Directors,
  which are Mr. Chatri Sophonpanich and Mrs. Kulathida Sivayathorn. The
  other group of major shareholders, Istithmar and Temasek, with a total
  shareholding of 11.88%, has one rotating board seat between the two.
  Currently, Sultan Ahmed Bin Sulayem from Istithmar is the
  representative on the Company’s Board of Directors.

  * The data as of at 19 February 2007; the shareholding includes that
  of Sinsuptawee Asset Management Co., Ltd. and Bangkok Bank Pcl.

  ** The data as of at 19 February 2007; the shareholding includes that
  of Istithmar PJSC, Aranda Investments Pte Ltd and TLS Alpha Pte Ltd.

8.3 Dividend Policy

8.3.1 The Company’s dividend policy is as follows:

  8.3.1.1 When the Company has net profit which can be distributed to
  shareholders, the preferred shareholders will receive dividends before
  the ordinary shareholders. In any year that dividends distributed to
  the preferred shareholders reaches 15% of the capital represented by
  the preferred shares, the balance of the profit shall be distributed
  to the ordinary shareholders at any amount as determined by the
  shareholders meeting.

  In any year that the Company is able to distribute dividends of more
  than 15% of its capital, the shareholders of both types shall receive
  the dividends equally.

  8.3.1.2 For the payment of dividends, the Board of Directors is to
  follow the resolution of the shareholders’ meeting.

  8.3.1.3 For every dividend payment, the Company shall reserve at least
  5% of the profit as appropriated statutory reserve, until the reserve
  accounts for 10% of the Company’s capital.

  8.3.1.4 Accrued dividends are not entitled to any interest payment.

8.3.2 Subsidiaries’ dividend policy is as follows:

  8.3.2.1 When the company has profit which can be distributed to
  shareholders, the company is eligible to pay dividends to its
  shareholders at any amount in accordance with the resolution of
  shareholders’ meeting.

  8.3.2.2 Accrued dividends are not entitled to any interest payment.

  For the year 2006, the Company paid an interim dividend to preferred
  and ordinary shareholders from the net profit of 1 January 2006 until
  30 June 2006 of Baht 0.30 per share, totaling to Baht 219 million. In
  addition, on 27 February 2007, the Board of Directors has approved
  dividend payment to preferred and ordinary shareholders of Baht 0.45
  per share, amounting to Baht 329 million. Such amount is subject to
  shareholders’ approval in shareholders’ meeting to be held in April
  2007. Therefore, the total dividend payment for the operation of the
  year 2006 is expected to be Baht 0.75 per share, which is 50.0%
  dividend pay-out ratio. For the year 2005, the Company paid dividend
  of Baht 0.75 per share, which is 52.0% of the Company’s 2005 net
  profit.