Executive Summary

The Siam Cement Group (SCG) is incorporated in Thailand and holds
investments in the following core business segments: Chemicals, Paper,
Cement, Building Products, Distribution and other businesses under
Cementhai Holding and Cementhai Property.

Concurring with the slower pace of both the world economy and the Thai
economy in 2005, the performance of the Siam Cement Group grew at a
lower rate than last year, affected most significantly by higher energy
costs and slower demand growth rates caused by a series of unfavourable
factors: oil price hikes, higher interest rates, turmoil in the Middle
East, and the impact of massive natural disasters. The December 26, 2004
tsunami, in particular, was a major blow to tourist industry which is a
major contributor to the Thai GDP. Higher oil prices and interest rates
caused the growth of consumer spending to fail and had a dampening
effect on the property sector.

As for operating results for the Siam Cement Group and subsidiaries in
2005, total sales amounted to 218,265 million Baht, up by 13 % from
2004. Operating profit totaled Baht 30,713 million, decreased by 9 %
over last year, while Net Profit also declined by 12 % from previous
year to Baht 32,236 million, which is primarily stem from the decrease
of performance in Chemical and Paper Business.

Based on these results and the overall financial status of SCG, the
Board unanimously resolved to propose to shareholders at the ordinary
general meeting on March 22, 2006 the payment of a full-year dividend of
15 Baht per share, representing 59 % of operating profits. An interim
dividend of 7.50 Baht per share was paid on August 23, 2005 and final
dividends of 7.50 Baht per share will be paid on April 20, 2006.

SCG continues to give the highest priority to good corporate governance
in all operations, while also ensuring that all shareholders receive
equal treatment. We believe that promoting good corporate governance
implementation will strengthen Thailand’s economy and enhance the
Kingdom’s stature in the world community.

In the areas of environmental preservation and social contribution,
SCG’s policy is for all business units to follow the 3R concept: Reduce
the use of resources; Reuse & Recycle used or waste materials; and
Replenish the environment and use practices and processes that generate
the least possible negative impact. SCG introduced the “Do It Green”
program to encourage employees to follow the 3R and, in addition,
established The Watershed Restoration Fund to help prevent drought by
supporting long-term efforts to manage and preserve water resources. Go
for Gold is a sports promotion program run by the Group that helps
develop skills in all aspects of badminton to achieve the levels of
excellence needed for international competition. Another program is the
Thailand Rescue Robot Championship contest that encourages youth to
develop their potentiality and capabilities in science and technology.

SCG 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
SCG has been accepted as one of the leading Thai companies with highly
efficient human resource management.