5.  Asset Used in Operation

Total Assets

Total assets of The Siam Cement Group at the end of 2010 were Baht
359,219 million of which 39 percent of them are current assets,
comprising of cash and cash equivalents, trade accounts and notes
receivable, and inventories. The rest (61 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:

  -------------------- --------------- -------------- --------------------
                       2010            2009           

  SCG Chemicals        165,087         165,964        Million Baht

  SCG Paper            50,127          47,942         Million Baht

  SCG Cement           61,018          60,681         Million Baht

  SCG Building         24,796          22,991         Million Baht
  Materials                                           

  SCG Distribution     12,177          10,110         Million Baht
  -------------------- --------------- -------------- --------------------

From the consolidated financial statements of the Company and its
subsidiaries property, plant and equipment have carrying values of Baht
151,400 million, which are 42 percent of total assets.

Property, Plant and Equipment - Net

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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.

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-   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 - 50.

-   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                   | J            | 13 years from the date of   |
|                        | ul. 24, 2007 | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| HDPE 3                 | J            | Oct. 2014                   |
|                        | ul. 24, 2000 |                             |
+------------------------+--------------+-----------------------------+
| HDPE 4                 | J            | 13 years from the date of   |
|                        | ul. 24, 2007 | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| Jetty and Terminal     | J            | Sep. 2011                   |
|                        | an. 26, 1998 |                             |
|                        |              | Sep. 2011                   |
|                        | Mar 31, 1998 |                             |
|                        |              | Dec. 2016                   |
|                        | Oct. 2, 2003 |                             |
|                        |              | Jul. 2017                   |
|                        | May 19, 2004 |                             |
|                        |              | Jan. 2018                   |
|                        | Nov. 25,     |                             |
|                        | 2004         | 13 years from the date of   |
|                        |              | first                       |
|                        | Dec. 12,     |                             |
|                        | 2007         | revenue received            |
|                        |              |                             |
|                        | Aug. 14,     |                             |
|                        | 2009         |                             |
+------------------------+--------------+-----------------------------+
| Olefins (ROC)          | A            | Jan. 2012                   |
|                        | ug. 14, 1995 |                             |
| Olefins (MOC)          |              | 13 years from the date of   |
|                        | Dec. 25,     | first                       |
|                        | 2006         |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| PE Compound            | F            | Feb. 2017                   |
|                        | eb. 10, 2003 |                             |
|                        |              | Mar. 2018                   |
|                        | Mar. 11,     |                             |
|                        | 2004         | Feb. 2020                   |
|                        |              |                             |
|                        | Mar. 26,     | Nov. 2019                   |
|                        | 2004         |                             |
|                        |              | Jul. 2020                   |
|                        | Apr. 10,     |                             |
|                        | 2006         | Mar. 2021*                  |
|                        |              |                             |
|                        | May. 23,     |                             |
|                        | 2006         |                             |
|                        |              |                             |
|                        | Dec. 7, 2007 |                             |
+------------------------+--------------+-----------------------------+
| Catalyst               | Aug. 7, 2009 | 13 years from the date of   |
|                        |              | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| Steam (ton per hour)   | Oct. 3       | 13 years from the date of   |
|                        | 0^(th), 2009 | first                       |
|                        |              |                             |
|                        |              | revenue received            |
+------------------------+--------------+-----------------------------+
| Calibration            | J            | May. 2019                   |
|                        | un. 30, 2003 |                             |
|                        |              | Jun. 2018                   |
|                        | Nov. 21,     |                             |
|                        | 2003         |                             |
+------------------------+--------------+-----------------------------+
| Industrial Zone        | Dec. 4, 1997 | Mar. 2018                   |
+------------------------+--------------+-----------------------------+
| Waste water treatment, | M            | 13 years from the date of   |
| Plant Industrial Waste | ar. 20, 2008 | first                       |
| and Toxic Chemicals    |              |                             |
| Management             |              | revenue received            |
+------------------------+--------------+-----------------------------+
| PVC 8                  | Aug. 5, 1997 | Aug. 2012                   |
|                        |              |                             |
| PVC 9                  | Aug. 5, 2005 | Apr. 2021                   |
|                        |              |                             |
| VCM 2                  | Jan. 8, 1996 | May 2012                    |
+------------------------+--------------+-----------------------------+
| HDPE 2                 | J            | Aug. 2011                   |
|                        | ul. 10, 1995 |                             |
+------------------------+--------------+-----------------------------+

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

+---------------------------+---------------+-------------------------+
| Project                   | Date Acquired | Expiry of Tax           |
|                           |               | Incentives              |
+---------------------------+---------------+-------------------------+
| Research & Development    | Aug. 27, 2009 | 8 years from the date   |
|                           |               | of first                |
|                           |               |                         |
|                           |               | revenue received        |
+---------------------------+---------------+-------------------------+

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 date of first revenue
generated:

+----------------------------+--------------+-------------------------+
| Project                    | Date         | Expiry of Tax           |
|                            | Acquired     | Incentives              |
+----------------------------+--------------+-------------------------+
| PP (Modification)          | Oct. 30,     | 3 years from the date   |
|                            | 2009         | of first                |
|                            |              |                         |
|                            |              | revenue received        |
+----------------------------+--------------+-------------------------+

SCG Paper

  Details of companies receiving BOI privileges:

+----------------------------+--------------+-------------------------+
| Project                    | Date         | Expiry of Tax           |
|                            | Acquired     | Incentives              |
+----------------------------+--------------+-------------------------+
| Sheetboard                 | S            | Sept 2011               |
|                            | ept 12, 2008 |                         |
+----------------------------+--------------+-------------------------+
| Paper Recycling Business   | Jan 4, 2008  | Aug, 2015               |
+----------------------------+--------------+-------------------------+
| Cogeneration Plant         | Sept 22,     | 8 years from the date   |
|                            | 2005         | of first                |
|                            |              |                         |
|                            |              | revenue received        |
+----------------------------+--------------+-------------------------+
| Kraft Paper                | Mar 28, 1997 | Dec 2011                |
+----------------------------+--------------+-------------------------+
| Cogeneration Plant         | Jan 19, 2005 | Dec 2011                |
| (Philippines)              |              |                         |
+----------------------------+--------------+-------------------------+
| Printing and Writing Paper | Jan 11, 2007 | May 2016                |
+----------------------------+--------------+-------------------------+
| Kraft Paper (Vietnam)      | Jan 18, 2007 | Dec 2020                |
+----------------------------+--------------+-------------------------+
| Sheetboard and Corrugated  | Jul 24, 2007 | 13 years from the date  |
| Container                  |              | of first                |
|                            |              |                         |
|                            |              | revenue received        |
+----------------------------+--------------+-------------------------+
| Cogeneration Plant         | Jan 25, 2010 | 8 years from the date   |
|                            |              | of first                |
|                            |              |                         |
|                            |              | revenue received        |
+----------------------------+--------------+-------------------------+

SCG Cement

  Details of companies receiving BOI privileges:

+----------------------------+--------------+-------------------------+
| Project                    | D            | Expiry of Tax           |
|                            | ate Acquired | Incentives              |
+----------------------------+--------------+-------------------------+
| Waste-Heat Power Generator | Nov 6, 2007  | Dec, 2016               |
| (WHG) under Cementhai      |              |                         |
| Energy Conservative        |              |                         |
| Company Limited            |              |                         |
+----------------------------+--------------+-------------------------+

 

SCG Building Materials

  Details of companies receiving BOI privileges:

+---------------------------+---------------+-------------------------+
| Project                   | Date Acquired | Expiry of Tax           |
|                           |               | Incentives              |
+---------------------------+---------------+-------------------------+
| Production line of ridge  | Jun. 20, 2006 | Jun. 2013               |
| tile                      |               |                         |
+---------------------------+---------------+-------------------------+
|                           | Jul. 29, 2004 | Jul. 2011               |
+---------------------------+---------------+-------------------------+
|                           | Nov. 3, 2004  | Jan. 2012               |
+---------------------------+---------------+-------------------------+
|                           | Dec. 15, 2004 | Jun. 2014               |
+---------------------------+---------------+-------------------------+

  SCG Distribution

  Details of companies receiving BOI privileges:

+---------------------------+---------------+-------------------------+
| Project                   | Date Acquired | Expiry of Tax           |
|                           |               | Incentives              |
+---------------------------+---------------+-------------------------+
| Warehouse in Laem Chabang | Nov 18, 2008  | Nov 18, 2013            |
| (Export Service Center    |               |                         |
| Phase 1)                  |               |                         |
+---------------------------+---------------+-------------------------+

-   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 41 trademarks are
registered at The Department of Intellectual Property.

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