5.  Asset Used in Operation

Total Assets

Total assets of The Siam Cement Group at the end of 2011 were Baht
374,738 million of which 31 percent of them are current assets,
comprising of cash and cash equivalents, trade accounts and notes
receivable, and inventories. The rest (69 percent) are investments,
property, plant and equipment, and other assets.

Most assets shown in the financial statements of the Company and its
subsidiaries were built by and belonged to the Company and its
subsidiaries. SCG has no policy to place any assets as collateral.

Total assets can be classified according to main business units as
follows:

  -------------------- --------------- -------------- --------------------
                       2011            2010           

  SCG Chemicals        176,583         165,087        Million Baht

  SCG Paper            52,534          50,127         Million Baht

  SCG Cement           60,126          61,018         Million Baht

  SCG Building         35,848          24,796         Million Baht
  Materials                                           

  SCG Distribution     16,282          12,177         Million Baht
  -------------------- --------------- -------------- --------------------

From the consolidated financial statements, SCG’s property, plant and
equipment have carrying values of Baht 156,683 million, which are 42
percent of total assets.

Property, Plant and Equipment - Net

[]

Remark: Figures in financial statements are classified according to
Business Groups before adjustment of inter-business transactions.

Intangible Assets

-   Patents

  Hereunder is the list of important patents of the Company and its
  operation subsidiaries.

[]

[]

[]

[]

[]

[]

[]

[]

-   Concession

Concessions in limestone and gypsum mines are long-lived. Their
maturities have been continuously extended because cement is a
fundamental product for construction and infrastructure related to the
country’s economy. Hence, there is a hypothesis that cement market
growth closely links to economic growth of the country.

Details of concessions for the Company and affiliates in cement business
are shown in the Products or Services of SCG Cement on page 47 – 48.

-   BOI Certificates

SCG adheres to the policy to apply for the BOI’s privileges in every
business it is eligible for. The Group believes that it can fully
operate under all BOI’s rules and regulations due to its transparent
operation based on good corporate governance.

SCG Chemicals

The Business acquired BOI tax incentives such as machinery import duty
exemption, corporate tax exemption for 8 years from the date of first
revenue received, and 50 percent reduction of corporate income tax for 5
years after the exemption period. Details are shown below:

+------------------------+--------------+-----------------------------+
| Project                | D            | Expiry of Tax Incentives    |
|                        | ate Acquired |                             |
+========================+==============+=============================+
| PP 3                   | Jul 24, 2007 | Mar, 2013                   |
+------------------------+--------------+-----------------------------+
| HDPE 3                 | Jul 24, 2000 | Oct, 2014                   |
+------------------------+--------------+-----------------------------+
| HDPE 4                 | Jul 24, 2007 | Feb, 2013                   |
+------------------------+--------------+-----------------------------+
| Jetty and Terminal     | Oct 2, 2003  | Dec, 2016                   |
|                        |              |                             |
|                        | May 19, 2004 | Jul, 2017                   |
|                        |              |                             |
|                        | Nov 25, 2004 | Jan, 2018                   |
|                        |              |                             |
|                        | Dec 12, 2007 | Apr, 2023                   |
|                        |              |                             |
|                        | Aug 14, 2009 | Nov, 2023                   |
+------------------------+--------------+-----------------------------+
| Olefins (ROC)          | Aug 14, 1995 | Jan, 2012                   |
|                        |              |                             |
| Olefins (MOC)          | Dec 25, 2006 | Jan, 2023                   |
+------------------------+--------------+-----------------------------+
| PE Compound            | Feb 10, 2003 | Feb, 2017                   |
|                        |              |                             |
|                        | Mar 11, 2004 | Mar, 2018                   |
|                        |              |                             |
|                        | Mar 26, 2004 | Feb, 2020                   |
|                        |              |                             |
|                        | Apr 10, 2006 | Nov, 2019                   |
+------------------------+--------------+-----------------------------+
| Project                | D            | Expiry of Tax Incentives    |
|                        | ate Acquired |                             |
+------------------------+--------------+-----------------------------+
|                        | May 23, 2006 | Jan, 2020                   |
|                        |              |                             |
|                        | Dec 7, 22007 | Mar, 2021                   |
+------------------------+--------------+-----------------------------+
| Catalyst               | Aug 7, 2009  | 13 years from the date of   |
|                        |              | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| Steam (ton per hour)   | Oct 30, 2009 | Apr, 2024                   |
+------------------------+--------------+-----------------------------+
| Calibration            | Jun 30, 2003 | May, 2019                   |
|                        |              |                             |
|                        | Nov 21, 2003 | Jun, 2018                   |
+------------------------+--------------+-----------------------------+
| Industrial Zone        | Dec 4, 1997  | Mar, 2018                   |
+------------------------+--------------+-----------------------------+
| Waste water treatment, | Mar 20, 2008 | Apr, 2023                   |
| Plant Industrial Waste |              |                             |
| and Toxic Chemicals    |              |                             |
| Management             |              |                             |
+------------------------+--------------+-----------------------------+
| Human resources        | Dec 16, 2011 | 13 years from the date of   |
| development            |              | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| PVC 8                  | Aug 5, 1997  | Aug, 2012                   |
|                        |              |                             |
| PVC 9                  | Aug 5, 2005  | Apr, 2021                   |
|                        |              |                             |
| VCM 2                  | Jan 8, 1996  | May, 2012                   |
+------------------------+--------------+-----------------------------+

The project which receives corporate tax exemption for 8 years from the
first date revenue received:

+------------------------+--------------+-----------------------------+
| Project                | Date         | Expiry of Tax Incentives    |
|                        | Acquired     |                             |
+------------------------+--------------+-----------------------------+
| Research & Development | Aug 27, 2009 | 8 years from the date of    |
|                        |              | first                       |
|                        | May 6, 2011  |                             |
|                        |              | revenue received            |
|                        | May 27, 2011 |                             |
|                        |              |                             |
|                        | Oct 20, 2011 |                             |
|                        |              |                             |
|                        | Nov 10, 2011 |                             |
+------------------------+--------------+-----------------------------+

  The project which receives corporate tax exemption on corporate net
  profit in an amount equivalent or less than an investment amount of
  modification project for 3 years from the first date of revenue
  generated:

  ------------------------- --------------- ------------------------------
  Project                   Date Acquired   Expiry of Tax Incentives

  PP (Modification)         Oct 30, 2009    Feb, 2014
  ------------------------- --------------- ------------------------------

The project which receives 8 years of corporate tax exemption in an amount equivalent to 100% of an investment amount of modification project 

  ------------------------- --------------- ------------------------------
  Project                   Date Acquired   Expiry of Tax Incentives

  PE                        Feb 3, 2011     Feb, 2019

  PP                        Feb 3, 2011     Feb, 2019
  ------------------------- --------------- ------------------------------

The project which receives corporate tax exemption in an amount equivalent to 70% of an investment amount of modification project for 3 years from

  ------------------------- --------------- ------------------------------
  Project                   Date Acquired   Expiry of Tax Incentives

  LDPE                      Feb 3, 2001     Feb, 2014
  ------------------------- --------------- ------------------------------

SCG Paper

  Details of companies receiving BOI privileges:

+------------------------+--------------+-----------------------------+
| Project                | Date         | Expiry of Tax Incentives    |
|                        | Acquired     |                             |
+------------------------+--------------+-----------------------------+
| Corrugated Container   | Jan 12, 2008 | Sep, 2011                   |
| (Thai container group  |              |                             |
| – Nawanakorn plant)    |              |                             |
+------------------------+--------------+-----------------------------+
| Corrugated Container   | Mar 25, 2011 | Mar, 2014                   |
|                        |              |                             |
| (Thai containers       |              |                             |
| saraburi Co.,Ltd)      |              |                             |
+------------------------+--------------+-----------------------------+
| Corrugated Container   | May 6, 2011  | May, 2019                   |
| (Thai containers       |              |                             |
| songkhla (1994) Co.,   |              |                             |
| Ltd.                   |              |                             |
+------------------------+--------------+-----------------------------+
| Corrugated Container   | Jul 25, 2011 | Jul, 2014                   |
| (Thai container group  |              |                             |
| – Samutprakarn plant)  |              |                             |
+------------------------+--------------+-----------------------------+
| Pulp                   | Jul 11, 2011 | Jul, 2012                   |
+------------------------+--------------+-----------------------------+
| Kraft Paper            | Jan 18, 2007 | Dec, 2020                   |
|                        |              |                             |
|                        | Mar 16, 2011 | Mar, 2014                   |
|                        |              |                             |
|                        | Sep 20, 2011 | Mar, 2014                   |
|                        |              |                             |
|                        | Sep 20, 2011 | Sep, 2019                   |
+------------------------+--------------+-----------------------------+
| Printing and Writing   | Jan 11, 2007 | May, 2016                   |
| Paper                  |              |                             |
|                        | Jun 24, 2011 | Jun, 2014                   |
|                        |              |                             |
|                        | Jul 11, 2011 | Jul, 2014                   |
+------------------------+--------------+-----------------------------+
| Cogeneration Plant     | Jan 25, 2010 | 8 years from the date of    |
|                        |              | first                       |
|                        | Sep 22, 2005 |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| Paper Recycling        | Jan 4, 2008  | Aug, 2015                   |
| Business               |              |                             |
+------------------------+--------------+-----------------------------+

SCG Cement

  Details of companies receiving BOI privileges:

+------------------------+--------------+-----------------------------+
| Project                | D            | Expiry of Tax Incentives    |
|                        | ate Acquired |                             |
+------------------------+--------------+-----------------------------+
| Waste-Heat Power       | Nov 6, 2007  | Dec, 2016                   |
| Generator (WHG)        |              |                             |
+------------------------+--------------+-----------------------------+
| Solid waste            | May 31, 2010 | Dec, 2018                   |
| pre-treatment plant    |              |                             |
+------------------------+--------------+-----------------------------+

SCG Building Materials

  Details of companies receiving BOI privileges:

+------------------------+--------------+-----------------------------+
| Project                | D            | Expiry of Tax Incentives    |
|                        | ate Acquired |                             |
+------------------------+--------------+-----------------------------+
| Production line of     | Jun 20, 2006 | Jun, 2013                   |
| ceramic roof tiles     |              |                             |
+------------------------+--------------+-----------------------------+
| Aerated lightweight    | Nov 3, 2004  | Jan, 2012                   |
| concrete Plant 3       |              |                             |
+------------------------+--------------+-----------------------------+
| Aerated lightweight    | Dec 15, 2004 | Jun, 2014                   |
| concrete Plant 4       |              |                             |
+------------------------+--------------+-----------------------------+

  SCG Distribution

  Details of companies receiving BOI privileges:

+---------------------------+---------------+-------------------------+
| Project                   | Date Acquired | Expiry of Tax           |
|                           |               | Incentives              |
+---------------------------+---------------+-------------------------+
| Export Service Center     | Nov 18, 2008  | Nov 18, 2013            |
+---------------------------+---------------+-------------------------+

-   Trademarks

The key trademarks of The Siam Cement Public Company Limited and its
subsidiaries comprise of “Elephant” in a hexagon, “Elephant” in a
circle, “Erawan Elephant” in a circle, and “Tiger” in a circle,
“Elephant” in a hexagon and “SCG” trademark etc. About 489 trademarks
are registered at The Department of Intellectual Property.

[]