PART 1

EXCECUTIVE SUMMARY

“Report of the Executive Committee”

Siam City Cement Public Company Limited faced a number of trading
challenges in 2006. The domestic market has been stagnating compared
with an increase of approximately some four percent in 2005.

The housing sector, a traditional source of growth for the industry,
witnessed a general flattening of consumer confidence caused by
increased oil prices, high interest rates, decreasing disposable
incomes, widespread flooding in rural communities and continued
political uncertainty.

In the public sector, the industry as a whole was affected by continued
delays and uncertainties with proposed major infrastructure projects.
The company remains well placed, however, to serve the nation’s
interests when such projects are confirmed thanks to our attention to
three key aspects of the business.

Customers are the lifeblood of any business and we focused our attention
on the continuous development and improvement of our customer
relationship management programmes. The introduction of state-of-the-art
management systems lifted our professional and technical expertise and
enhanced our supply chain operations.

The company systematically concentrates on building materials that
complement each other and improve value adding products and solutions to
the housing, commercial, residential building and infrastructure
sectors. In this respect our product offering was further enhanced with
new developments in our mortar range, the development and marketing of
sand and aggregate and a further strengthening of the Ready - Mixed
Concrete operations - particularly in Bangkok and on the Eastern
Seaboard. Conwood added six new products to its product line.

The transition from a product-focused business to a customer-orientated
company through the ‘As I Wish’ campaign is well under way.

Operational efficiency forms the second pillar in support of the
company’s ‘cement solution provider’ strategy. The Saraburi plant
operated at full capacity and programmes to improve productivity,
efficiency and quality showed tangible results.

The increased use of alternative fuels and raw materials (AFR) made an
important contribution to our drive to produce quality premium products
at the lowest cost.

The investment in a state-of-the-art AFR Platform started in 2006. We
make this commitment to become more energy-efficient and environmentally
friendly in the knowledge that we are making an important contribution
to the many communities in which we operate and serve.

Occupational Health and Safety (OH&S) remains paramount in our company.
We introduced a wide range of initiatives in 2006 and it is pleasing to
note that OH&S is starting to become an embedded value at all our
operations.

Safe working environments are not only an important aspect of our
Corporate Social Responsibility policy but also make sound business
sense - reflecting competence, productivity and excellence across the
business. The introduction of the 12 Golden Rules, representing our
operational philosophy in 12 clear, concise and straightforward
statements, forms the framework for further progress and development in
this key area

All three initiatives have been made possible by the enthusiasm and
dedication of our hard working and motivated employees. The continuous
development of our people through training and educational programmes is
reflected in our results.

People development will remain an essential part of the company’s
management strategy to meet the many significant challenges that face
the business in the years ahead.

The challenges faced by our organization in 2006 have demonstrated the
strength and depth of the company, the dedication and commitment of the
workforce and the quality of the entire product range. These are assets
that will ensure that the company remains in good health - fit and able
to remain Thailand’s ‘cement solution provider’ of choice.

2007 Outlook

The company has a cautious outlook for 2007. However, we are confident
that, with a clear focus on customer and operational efficiency, the
company will be able to further improve its position.