PART I

EXECUTIVE SUMMARY

The financial performance delivered by Siam City Cement Company stands
as testimony to the company’s ability to act quickly and effectively in
a dynamic operating environment. Particular highlights are net profit
increase of 26% and EBITDA increase of 16%.

The company’s drive to ensure that its product and service portfolio is
tailored to the changing demands of customers saw a number of
developments to the INSEE family of high-quality cements in 2004. A new,
compact, 25 kilogram package of the popular INSEE TONG premium
plastering cement was brought to market in response to demand from the
home building sector, and INSEE POON KEAW, a general purpose mixed
cement, was launched to meet the needs of end users for whom cost is the
primary concern.

These developments within the INSEE family neatly encapsulate the
customer-centric focus that guides our strategic thinking. Anticipating
and then meeting the needs of our customers is securing our long term
success. While we have made much progress to align the demands of the
markets, further and continued organizational capabilities are required.
2004 saw your company inject a new vigor into the push to deliver on our
brand promises, in preparation for the “As I Wish” campaign launched in
early 2005. Our goal is to become recognized not just as a producer but
as the preferred provider of solutions and services for the construction
industry, whether cement, ready-mix concrete or wood replacement
materials.

Parallel to market and customer orientation the efficient running of our
operations remains a top priority. In recent years the Company has been
distinguished by our work in respect of alternative fuels and raw
materials (AFR). AFR is presently delivering positive savings in terms
of energy costs. A comprehensive review of our AFR policies and
practices was undertaken in 2004 to decide on the future direction of
this important area and a number of new developments are now being
planned and executed for 2005 and beyond.

Ensuring the safety and continuity of manufacturing operations remains
our core objective. The accident at Saraburi in April 2004 threw this
into sharp focus. The company subsequently engaged the services of
DuPont to carry out a review of all OH&S procedures, in order to ensure
that everything possible is done to achieve the safest possible working
environment.

People development and training stays a top priority of the company. We
are fully aware that well trained people are the base for efficient
operations. The company has continued to train employees at all levels
to ensure that talent for the future is being developed.

The company further seeks to distinguish itself through its emphasis on
skills and vocational training for students and workers in the
construction industry. Through such activities the company is able to
transfer knowledge regarding new construction techniques and
technologies and promote its practical application. It is currently
supporting 6 different programmes of training courses, each attended by
between 50-300 people, comprising skilled workers, construction
technique trainers from vocational institutes nationwide, students and
local officials.

The company’s commitment to the communities in which it operates remains
unstinting, as do efforts to meet the highest standards of social
responsibility, environmental performance and good corporate
citizenship.

In the wake of the devastation caused in Southern Thailand by the
tsunami in December 2004, the company moved quickly to set up the INSEE
Relief and Reconstruction Fund. Employees and business partners donated
generously to the fund, which also received a lump sum of one million
Swiss Franc, or some THB 33 Mio, from Holcim. In addition, more than
2000 tones of cement and a large quantity of construction materials were
donated to the relief effort.

Looking to the year ahead, the Executive Committee is confident that
your company is well positioned to grow and prosper. The aspiration to
become the “Cement Solution Specialist” will reinforce our belief that
at Siam City Cement “we deliver” what our customers wish.

Please see Part II for further details.