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 81,000 million. The Siam Pulp and Paper Public Company
    Limited also issued one 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 15, page 33-34).

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+(tha)” from
Fitch Ratings (Thailand)

(2) Shareholders

First ten major shareholders of the Company (as of December 31, 2005)
are as follows:

+------+-------------------------------------+---------------+--------+
| Rank |  Name                               | Number of     | % of   |
|      |                                     |               | Total  |
|      |                                     | Common Shares |        |
|      |                                     |               | Shares |
+------+-------------------------------------+---------------+--------+
| 1    | Bureau of the Crown Property        | 360,000,000   | 30.00  |
+------+-------------------------------------+---------------+--------+
| 2    | Thai NVDR Company Limited*          | 107,936,197   | 8.99   |
+------+-------------------------------------+---------------+--------+
| 3    | CPB Equity Co., Ltd.                | 23,202,000    | 1.93   |
+------+-------------------------------------+---------------+--------+
| 4    | Little Down Nominees Limited        | 19,086,100    | 1.59   |
+------+-------------------------------------+---------------+--------+
| 5    | Chase Nominees Limited 1            | 17,580,600    | 1.47   |
+------+-------------------------------------+---------------+--------+
| 6    | Chase Nominees Limited 42           | 17,188,933    | 1.43   |
+------+-------------------------------------+---------------+--------+
| 7    | State Street Bank and Trust Company | 16,000,043    | 1.33   |
+------+-------------------------------------+---------------+--------+
| 8    | Office of The Privy Purse           | 15,473,000    | 1.29   |
+------+-------------------------------------+---------------+--------+
| 9    | Randery Burahmakan Co.,Ltd.         | 14,810,400    | 1.23   |
+------+-------------------------------------+---------------+--------+
| 10   | Cementhai Foundation **             | 13,294,300    | 1.11   |
+------+-------------------------------------+---------------+--------+

Remarks * Thai NVDR Co.,Ltd. the shareholder of which companies issues
and offers to investors. For more information about investors, it
provides in website: www.set.or.th.

  ** Donated shares

(3) Dividend Policy

The Siam Cement Public Company Limited drew a policy on yearly payment
of dividends based on the operating results of the Company. In 2005, the
Company requested shareholders’ resolution to declare a dividend at 59 %
of Operating Profit. Dividends were paid on the basis of financial
structure, investment and frequency of payment to the shareholders.

For most subsidiaries whose 100% shares owned by the Company, the Siam
Cement Public Company Limited also considered their financial structure
and investment. The Company did not find any policies that led to
transfer of the interest, lack of transparency as stated in the
principles of good corporate governance.

From the Company’s total operating results and financial position, the Board of Directors has agreed to submit for approval at the ordinary Shareholders’ Meeting, a dividend payment of Baht 15.00 per share. However, the Board of Directors had already passed a resolution approving the 2005 interim dividend payment at the rate of Baht 7.50 per share on August 23, 2005. Thus, the final dividend will be at the rate of Baht 7.50 per share, scheduled for payment on April 20, 2006. The dividend is subject to the approval of the shareholders. Dividend payments for the last ten years of the Siam Cement Public Company Limited are shown below:

(Unit : Baht/share)

+-------+-------------+--------------+-----------+-------------------+
|       | Interim     | Annual       | Total     | Dividend on Share |
| Year  | Dividend    | Dividend     |           | Value             |
|       |             |              |           |                   |
|       |             |              |           | at Baht 1.00 per  |
|       |             |              |           | share             |
+-------+-------------+--------------+-----------+-------------------+
| 1995  | 10.00       | 9.00         | 19.00     | 1.90              |
+-------+-------------+--------------+-----------+-------------------+
| 1996  | 10.00       | 10.00        | 20.00     | 2.00              |
+-------+-------------+--------------+-----------+-------------------+
| 1997  | -           | -            | -         | -                 |
| -2000 |             |              |           |                   |
+-------+-------------+--------------+-----------+-------------------+
| 2001  | -           | 10.00        | 10.00     | 1.00              |
+-------+-------------+--------------+-----------+-------------------+
| 2002  | -           | 30.00        | 30.00     | 3.00              |
+-------+-------------+--------------+-----------+-------------------+
| 2003* | 2.50        | 3.50         | 6.00      | 6.00              |
+-------+-------------+--------------+-----------+-------------------+
| 2004  | 5.50        | 9.50         | 15.00     | 15.00             |
+-------+-------------+--------------+-----------+-------------------+
| 2005  | 7.50 **     | 7.50 ***     | 15.00     | 15.00             |
+-------+-------------+--------------+-----------+-------------------+

Remark: - In 1995-2002, par value of the Company common shares are Baht
10.0 per share.

  * Shareholders approved to change par value of common shares from Baht
  10 per share to Baht 1 per share.

** Paid on August 23, 2005. *** To be paid on April 20, 2006.