Executive Summary

The Siam Cement Public Company Limited is the holding company of The
Siam Cement Group, which is the largest Thai conglomerate consisting of
5 strategic business units and 2 holding companies. Five core business
units are Petrochemicals Business, Paper and Packaging Business, Cement
Business, Building Products Business, and Distribution Business. Two
holding companies comprises Cementhai Holding Co., Ltd., overseeing the
Group’s non core businesses, and Cementhai Property (2001) Public
Company Limited, managing the Group’s industrial estate.

In 2004, amidst the unstable situation in the Middle East together with
the increases in petroleum prices, the world economy continued to grow.
Similarly, although the spreading of Bird Flu, petroleum price surge and
unrest in the deep south, Thailand’s economy was growing as a result of
the export growth and larger amount of investment from both public and
private sectors.

As a result of the global and domestic economic growth, the speed-up of
the new airport, as well as the continued robust residential
construction sector, the higher demand of the Siam Cement Group’s
products particularly those in Petrochemical, Paper and Packaging,
Cement and Building products encouraged the better performances for most
of the business units. The Group was able to adapt business strategy,
organizational culture and operational efficiency which ultimately
increase its competitive advantage.

In 2004, The Siam Cement Public Company Limited and subsidiaries
accomplished sales of Baht 192,395 million, an increase of 29% over last
year. Operating Profit Before Extraordinary Items of Baht 33,707
million, representing a healthy increase of 89%, while Net Profit
increased 83% from previous year to Baht 36,483 million. This stemmed
from better performances of all business units especially Petrochemicals
Business.

Total assets of the Company and subsidiaries as at December 31, 2004
were Baht 265,682 million, a rise of 6% from last year. Ranking of asset
values by business units is Petrochemical, Cement, and Paper and
Packaging Businesses respectively.

Net Debt (Interesting-bearing debt less cash and short-term investments)
position of the Group

as at December 31, 2004 declined Baht 14,272 million to Baht 100,579
million (This was despite the consolidation of Thai Cane Paper’s (TCP)
outstanding debt) as a result of cash generated from operation. Interest
and Financial Expenses in 2004 were Baht 5,876 million, falling Baht
2,225 million from the previous year.

From better financial position and operating performance in 2004, the
Board of Directors sought the approval of the Ordinary Shareholders’
meeting, regarding the dividend payment of Baht 15.00 per share. The
Company paid interim dividend for Baht 5.50 per share on August 26,
2004. It would pay the final portion at Baht 9.50 per share on April 19,
2005.

The Siam Cement Group has conducted its business for years in line with
good corporate governance throughout the organization. The Group
believes that good corporate governance under good supervision by the
Management and the Board brings about transparency, disclosure, and
fairness to all stakeholders. As a result, the organization will prosper
along with the country’s strength in the long term.

The Siam Cement Group pursues the concept of Total Quality Management
(TQM). In 2004, CCC Polyolefins Co., Ltd., Siam Mitsui PTA Co., Ltd. and
Thai Ceramic Co., Ltd. received Deming Application Prize from the Union
of Japanese and Engineers (JUSE). Currently, six companies within the
Group already received the prize.

In addition, the Group has supported assorted marketing and public
welfare activities including environmental project, education and sport
activities. Major projects in 2004 comprised Thailand Rescue Robot
Championships, a comprehensive badminton sponsorship program for local,
national and international competition, the Do It Clean waste management
program and financial assistance to various foundation and charities
nationwide.

The Group strongly believes that human resource is one of the key
success factors. Therefore, it has been placing significance on human
resource management since the company inception for over 90 years.
Hence, “Belief in the Value of the Individual”, one of the Group’s four
business philosophy, has been respected by all affiliates for many years
until the Group has been accepted as one of the leading Thai companies
with highly efficient human resource management.