PART 1

EXCECUTIVE SUMMARY

Report of the Executive Committee

In a particularly difficult year of shrinking demand, peaking energy
prices and emerging world crisis, Siam City Cement has managed to
maintain its margins.

In 2008, the global community was faced with what has been described as
a financial tsunami that quickly impacted the entire world. Thailand was
not spared from this widespread crisis as, from the middle of the year
onward, the construction industry began to slide rapidly downward along
with most industries.

As a direct consequence the cement industry was immediately affected to
a considerable extent. To further complicate the business landscape, the
country’s lengthy political uncertainties eroded the confidence in all
sectors – manufacturers, service providers and consumers.

The unfavorable political situation adversely affected the
implementation of major infrastructure projects, leading to only one
project, the Red Line mass transit system extension, awarded to
contractors. The real estate sector also slowed down considerably as
consumers decided to delay big expenditures during the time of
uncertainties.

Overall, cement consumption in Thailand decreased by 10% and Siam City
Cement, maintaining its market share, lost volume for its cement sales
by the same amount. Selling prices were successfully increased during
most of the year, to reflect the huge inflation of energy cost which had
a major impact on cement production costs.

Anticipating that the crisis will extend into 2009, Siam City Cement has
taken appropriate measures to proactively preserve profitability and
cash flow generation, by initiating immediate cost reduction programs
and by reducing capital expenditures to the most critical projects. At
the same time, the sales force, the logistic organization and the
technical support teams are mobilized to continue to bring value to our
customers through excellence in product quality and services.

The company was successful in growing further its ready-mix and
aggregates businesses. Siam City Cement could also make progress in the
implementation of its energy strategy, with the finalization of the
Geocycle alternative fuel production platform and with the launch of a
waste heat recovery project, which will allow us to generate electricity
from the two largest kilns of the company.

Pursuing its long-term strategy, Siam City Cement strives to be a leader
in Health and Safety and in environment. In 2008, Siam City Cement has
further improved its OH&S performance. The company has also achieved an
exceptional distinction in Thailand’s industrial sector by being one of
the first few companies to be awarded CSR-DIW, the standard for
Corporate Social Responsibility, by the Department of Industrial Works,
Ministry of Industry.

In addition, Siam City Cement has applied for the certification for
Carbon Label issued by the Thailand Environment Institute and applicable
to our cement products. It is expected that Siam City Cement will be
among the first few Thai companies to be issued with the Carbon Label
within the first quarter of 2009 – a testament to our concern for the
environment and our commitment to the betterment of the Thai society.

Overall, despite difficult conditions leading to a 7% decrease in net
sales versus 2007, the company was able to achieve Earnings Before
Interest and Tax (EBIT) of 4,583 million baht, 2 percent lower than
2007, and a Net Profit of 3,173 million baht, 2 percent lower than 2007.
Remarkably, the company was able to improve its net profit margin to 15%
from 14% in the previous year.

Outlook 2009:

There is no doubt that 2009 will be a challenging year for all sectors
of the economy in Thailand. Although the political situation is expected
to stabilize, the global financial crisis will likely manifest its
full-blown impact.

However, Siam City Cement Plc. intends to seize the opportunity of the
crisis to accelerate its transformation for stronger operating
performance and improved service to its customers, while keeping its
dedication to social responsibility and sustainable development.

Philippe Arto

Chairman of the Executive Committee

(Investor are recommended to read more details in part 2 and 3 before
making decision on investment)