table of contents - listed companyscc.listedcompany.com/misc/set_561/scc-form-561-2013-en.pdf ·...

Table of Contents

Page

Part 1 Business Operation 1. Business Policies and Operation 1

2. Operation of Key Business units 15

3. Risk Management 41

4. Assets Used in operation 63

5. Legal Disputes 93

6. Other Related Information 95

Part 2 Management and Corporate Governance

7. Security and Shareholders 98

8. Management 101

9. Corporate Governance 116

10. Corporate Social Responsibility 158

11. Internal Control and Risk Management 159

12. Connected Transactions 170

Part 3 Financial Position and Operating Performance

13. Financial Statements 174

14. Management Discussion and Analysis 192

Information Certification

Appendix 1 Details of Management and Controlling Persons & Secretary Appendix 2 Details of Directors of Subsidiaries Appendix 3 Details of Internal Audit Director

Appendix 4 Others

Over

S

Rama

the bu

I

Distrib

and s

growt

Chem

S

the c

globa

life th

T

strate

Orga

Pleas

assoc

rview of bus

Siam Cement

a VI to manufa

usinesses of c

In 2013, SCG

bution into SC

services that

th. Now, SCG

micals, and SC

SCG has visio

ommunity SC

al managemen

rough produc

To achieve t

egies – expans

anization cha

e refer to pag

ciate, subsidia

Part 1 Bus

The Siam

iness and v

t Public Comp

acture cemen

construction m

G has reorgan

CG Cement –

will effective

G conducted

CG Paper.

on to be sust

CG operate in

nt practice, c

cts and servic

the vision of

sion in ASEAN

art of SCG

ge 4-14 for sha

aries, and join

siness Operat

Cement Publi

1. Busine

vision

pany Limited (

nt, key constr

material, cera

nized by comb

Building Mat

ly serve cust

three main b

tainable ASEA

n, create valu

orporate gove

es from exce

sustainable

N and High Va

areholding str

nt ventures.

tion / 1. Busin

ic Company L

ess Policie

(or “SCG”) wa

ruction mater

mic, paper an

bining three b

terials to strea

tomers dema

businesses w

AN market le

ue to custom

ernance, safe

llent operatio

ASEAN mark

alue added p

ructure of dire

ess Policies a

Limited

es and Ope

as established

ials for count

nd chemicals

businesses, i.

amline its bus

nd and supp

hich are SCG

ader that pro

mers, employe

ety standard,

n, technology

ket leader in

products and s

ect and indire

and Operation

eration

d in 1913 by t

ry and has ex

.

e., Cement, B

siness, promo

port long-term

G Cement- Bu

mote that pro

ees and all s

and improve

y developmen

2015, SCG

services.

ect ownership

n

the great visio

xpanded sinc

Building Mate

ote innovative

m sustainable

uilding Mater

osperity of AS

stakeholders

the quality o

nt, and innova

has laid ou

of company,

1

on of King

ce then to

erials, and

e products

business

rials, SCG

SEAN and

under the

f people’s

tion

t two key

Signif

2013

•

•

•

2012

•

ficant develop

SCG Ceme

Mt/year cem

SCG Buildin

Group Joint

Ceramics C

in sanitary

Limited from

Managemen

joint venture

controlled lo

SCG Chem

Chemicals a

Chemicals a

Bangkok Sy

share of Ban

SCG Paper

company d

Container G

(Japan), ac

corrugated

Orient Cont

Thailand. In

Industries C

Chain to for

SCG Ceme

acquired 10

Part 1 Bus

The Siam

pments during

nt – Building

ment plant in

ng Materials,

t Stock Comp

Company Limi

ware of Siam

m 35.7% an

nt Company L

e agreement

ogistics which

micals – found

and A.Schulm

acquired 100%

ynthetics – th

ngkok Synthe

r – as a 86.3%

id the tende

Group (TCG),

quired 90% o

container in

tainer Compa

n addition, SC

Company Lim

m a joint vent

nt – Building

00% of the ord

siness Operat

Cement Publi

g 2011 – 2013

Materials – th

Myanmar wh

a subsidiary

pany, a leadin

ted, a subsid

m Sanitary w

d 44.8% to

Limited, subs

with Nichirei

h is expected

ed SCG Eco

man, Inc. to m

% shares of N

e producer o

etics increase

% stake share

r offering for

a 70:30 joint

ordinary share

Indonesia an

any Limited,

CG Paper has

mited (NPI), w

ture to enhanc

Materials – SC

dinary shares

tion / 1. Busin

ic Company L

3 are as follow

he company

ich is expect

of SCG Cem

ng ceramic ti

iary of SCG C

ware Compan

71.4% and

sidiary of SCG

Logistics (Ja

to be fully op

o Polymer Com

manufacture R

NSL Chemica

of synthetic ru

from 26.01%

holder of Tha

all remaining

t venture bet

es of PT Prim

nd 75% ordin

a manufactu

s signed a Me

which will injec

ce the compe

CG Cement, a

of SCG Conc

ess Policies a

Limited

wed:

has announce

ed to start up

ment – Buildin

le producer i

Cement – Buil

y Limited an

90.6% resp

G Cement – B

apan) Compa

perational by 3

mpany, a 87%

Rotational Mo

ls (Thailand)

ubber. This d

to 48.84%

ai Cane Paper

g shares to

tween SCG P

macorr Mandir

ary shares of

urer and dist

emorandum o

ct equity for

etitiveness.

a subsidiary o

crete Indones

and Operation

ed the Green

p in 2nd quarte

g Materials, a

n Vietnam. Fu

ding Material

d Siam Sani

ectively. Mor

Building Mater

any Limited to

3rd quarter of 2

%:13% Joint

olding Compo

Pte Ltd. Singa

eal resulted i

r Public comp

take TCP pri

Paper and Re

ri, a manufac

f Dynapacks

tributor of co

f Understand

30% stake in

of SCG Ceme

sia Group, the

n

nfield investme

er of 2016. In

acquired 85%

urthermore, C

ls, has increa

tary Fittings

reover, SCG

rials, has sign

o provide tem

2014.

Venture betw

ound. In addi

apore, a shar

in the SCG C

pany Limited (

vate. In add

engo Compan

cturer and dis

Company Lim

orrugated co

ding with Nipp

n SCG Paper

ent – Building

e construction

2

ent for 1.8

n addition,

% of Prime

Cementhai

ased stake

Company

Logistics

ned 51:49

mperature-

ween SCG

tion, SCG

eholder of

Chemicals’

(TCP), the

ition, Thai

ny Limited

stributor of

mited and

ntainer in

pon Paper

’s Fibrous

Materials,

n materials

•

•

2011

•

•

•

Furthe

business in

result of sha

distribution

increasing f

invested in

business of

SCG Chem

Company L

20.40% and

Company, r

Chemicals s

SCG Paper

and Rengo

which is a p

SCG Ceme

acquired 99

(Buu Long),

Materials, s

of PT Keram

Indonesia. M

99.09% of t

building ma

SCG Chem

petrochemic

SCG Paper

Company L

(Alcamax) is

ermore, SCG

Part 1 Bus

The Siam

Indonesia, a

areholders’ re

of ceramic

from 46% to

a 31.25% sta

building mate

micals – acqu

Limited (TPC)

d 22.67% stak

respectively. B

sold 25% stak

r - Thai Conta

Company Lim

producer and

nt – Building

9.20% of the

, a manufactu

ubsidiary of S

mika Indones

Moreover, SC

he ordinary s

aterials in Indo

icals – acquir

cal company.

r – Thai Conta

imited, acqui

s a manufactu

has sold its e

siness Operat

Cement Publi

nd also acqu

estructuring in

tiles in the

83%. SCG D

ake in Siam G

erial products

uired 45.02%

and Nawa P

ke in Binh Mi

Both are majo

ke in Long So

ainer Group (

mited), acquir

distributor of

Materials – SC

ordinary shar

urer and distr

SCG Cement

ia Assosiasi

CG Distribution

shares of PT K

onesia.

red a 30% sta

ainer Group (

red 100% of t

urer and distri

entire 5% of Si

tion / 1. Busin

ic Company L

ired the net a

n Mariwasa-S

Philippines,

istribution, a

Global House

s operated in

% additional

Plastic Indust

nh Plastics Jo

or PVC pipe m

n Petrochemi

(TCG), a sub

red 72% of th

corrugated c

CG Cement, a

res of Buu Lo

ributor of whi

– Building M

Tbk (KIA), a

n, a subsidiar

Kokoh Inti Are

ake in PT Cha

(TCG), a 70:3

the ordinary s

ibutor of corru

iam United St

ess Policies a

Limited

assets of read

Siam Ceramic

the Group’s

subsidiary of

Public Comp

a warehouse

interest in T

tries Co., Ltd

oint Stock Co

manufacturers

cals Co., Ltd.

sidiary (70:30

he ordinary sh

ontainers in T

a subsidiary o

ong Industry

te cement in

Materials, acqu

manufacture

ry of SCG Ce

ebama Tbk (K

ndra Asri Pet

30 joint ventu

shares of Alca

ugated contai

teel (1995) Co

and Operation

dy-mixed bus

s, Inc. (MSC)

s ownerships

f SCG Cemen

any Limited w

store.

Thai Plastic a

., a subsidia

ompany and T

s in Vietnam. O

To QPI Vietn

0 joint venture

hares of Tawa

Thailand.

of SCG Ceme

& Investment

Vietnam. In a

uired 93.47%

r and distribu

ment – Buildi

KOKOH), a di

rochemical Tb

re between S

amax Packag

ners in Vietna

o., Ltd. to Nipp

n

iness in Thail

), the manufa

s (direct and

nt – Building

which is the r

and Chemica

ary of TPC, a

Tien Phong J

On the other s

nam.

e between SC

ana Container

ent – Building

t Joint Stock

addition, SCG

of the ordina

utor of ceram

ing Materials,

istributor spe

bk, Indonesia

SCG Paper a

ging (Vietnam)

am.

pon Steel Cor

3

and. As a

acture and

d indirect)

Materials,

etail trade

als Public

cquired a

oint Stock

side, SCG

CG Paper

r Co., Ltd.

Materials,

Company

G Building

ary shares

mic tiles in

, acquired

cializes in

a’s leading

nd Rengo

) Co., Ltd.

rporation.

SInof

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

*

Pa

Th

Supplementavestment in subsidiar

f which their operation

Name

SCG Cement-Building M

Subsidiaries

SCG Cement Co., Ltd.

The Concrete Products a

The Siam Cement (Kaeng

The Siam Cement (Ta Lu

The Siam Cement (Thung

The Siam Cement (Lampa

Siam Mortar Co., Ltd.

The Siam White Cement

The Siam Refractory Indu

0 Cementhai Energy Conse

Eco Plant Services Co., L

2 Siam Research and Innov

3 SCI Eco Services Co., Ltd

4 PT Pion Quarry Nusantar

5 PT SCG Pipe and Precas

6 PT Semen Lebak

7 PT SCG Readymix Indon

8 PT CPAC Surabaya

9 Q Mix Supply Co., Ltd.

0 CPAC Lao Co., Ltd.

CPAC Concrete Products

2 Cementhai Building Mate

3 SCG Building Materials C

* Directly and indirectly holding

art 1 Business Ope

he Siam Cement Pu

ary Informaries, associates, jointlyns are significant.

Materials

nd Aggregate Co., Ltd.

g Khoi) Co., Ltd.

ang) Co., Ltd.

g Song) Co., Ltd.

ang) Co., Ltd.

Co., Ltd.

ustry Co., Ltd.

ervation Co., Ltd.

Ltd.

vation Co., Ltd.

d.

ra

st Indonesia

esia

s (Cambodia) Co., Ltd.

rials (Singapore) Pte. Ltd.

Co., Ltd.

g through the Company, subsidia

eration / 1. Business

ublic Company Lim

ationy-controlled entity and

Principal Business /

Holding

Holding com

ready-mixe

Wh

Ener

Technical ser

plant i

Research and de

Industrial wast

Concret

Ready-mixe

Ready-mixe

Ready-mixe

Ready-mixe

Prec

Holding

Holding

aries, associates, jointly-controlle

s Policies and Ope

mited

d other companies

/ Products

g company

mpany and

d concrete

Cement

Cement

Cement Nakorn

Cement

Dry mortar

ite cement

Refractory

rgy service

rvices and

installation

velopment

te disposal

Quarry

e products

Cement

d concrete

d concrete

d concrete

d concrete

casted slab

g company

g company

ed entity and other companies.

eration

Location

(Head Office

/ Factory) Tele

Bangkok 66-2586-

Bangkok 66-255

Saraburi 66-3624-0

Saraburi 66-362

n Sri Thamaraj 66-755

Lampang 66-542

Saraburi 66-3624-0

Saraburi 66-362

Bangkok 66-2586

Bangkok 66-2586

Saraburi 66-362

Saraburi 66-3627-3

Nonthaburi 66-2962-

Indonesia (6221) 79

Indonesia (6221) 79

Indonesia (6221) 79

Indonesia (6221) 79

Indonesia (6231) 732

Bangkok 66-272

Laos (85621) 72

Cambodia (88523) 9

Singapore (65) 6534

Bangkok 66-2586

4

ephone Facsimile

3060-1 66-2586-3072

5-5000 66-2555-5003

000-98 66-3624-0099

8-8900 66-3628-8909

3-8222 66-7553-8111

3-7500 66-5423-7501

000-98 66-3624-0083

1-8400 66-3635-1219

6-3230 66-2586-2982

6-2410 66-2586-3098

8-9103 66-3628-1212

152-63 66-3627-3151

7295-7 66-2962-7298

7-1190 (6221) 797-1090

7-1190 (6221) 797-1090

7-1190 (6221) 797-1090

7-1190 (6221) 797-1090

2-1512 (6231) 732-1512

8-8800 66-2728-8801

20-385 (85621) 720-224

90-406 -

4-9661 (65) 6534-9662

6-3333 66-2586-2761

Nu

e Type of shares

2 Ordinary shares

3 Ordinary shares

9 Ordinary shares

9 Ordinary shares

Ordinary shares

Ordinary shares

3 Ordinary shares

9 Ordinary shares

2 Ordinary shares

8 Ordinary shares

2 Ordinary shares

Ordinary shares

8 Ordinary shares

0 Ordinary shares

0 Ordinary shares

0 Ordinary shares

0 Ordinary shares

2 Ordinary shares

Ordinary shares

4 Ordinary shares

- Ordinary shares

2 Ordinary shares

Ordinary shares

umber of Issued and

paid-up paid-up C

shares shares

(Million (Million

shares) Baht)

122 4,894

91 9,140

6 625

6 575

35 700

94 589

4 443

2 200

3 300

13 1,310

1 50

1 100

1 50

0.001 16

0.3 287

0.03 1,012

0.002 4

1 43

8 800

0.05 31

0.001 17

0.6 14

190 19,009

Direct

/ Indirect Tota

Company and Direct

Subsidiaries / Indirect

Holding Holding *

(Percent) (Percent)

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

l

t

t

*

)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

*

Pa

Th

Name

4 The Siam Fibre-Cement C

5 The Fibre-Cement Produ

6 Tip Fibre-Cement Co., Ltd

7 SCG Landscape Co., Ltd

8 Siam Fiberglass Co., Ltd.

9 Cementhai Gypsum Co.,

0 Cementhai Ceramics Co.

Thai Ceramic Co., Ltd.

2 The Siam Ceramic Group

3 Cementhai Home Service

4 Gemago Co., Ltd.

5 Cementhai Gypsum (Sing

6 Cementhai Roof Holdings

7 Cementhai Ceramic (Sing

8 Cementhai Ceramics Phi

9 PT SCG Lightweight Con

0 SCG Distribution Co., Ltd

SCG Trading Co.,Ltd.

2 SCG Cement-Building Ma

(Formerly : SCG Network

3 SCG Logistics Managem

4 SCG Trading Services Co

5 SCG Sourcing Co., Ltd.

6 SCG Experience Co., Ltd

7 SCG Skills Development

8 Keating Capital Partners

9 Kitchener Limited

0 SCG Trading Australia Pt


art 1 Business Ope

he Siam Cement Pu

Co., Ltd.

cts (Lampang) Co., Ltd.

d.

.

.

Ltd.

., Ltd.

p Industries Co., Ltd.

es Co., Ltd.

gapore) Pte. Ltd.

s Philippines, Inc.

gapore) Pte. Ltd.

lippines Holdings, Inc.

ncrete Indonesia

d.

aterials Company Limited

k Management Co., Ltd.)

ent Co., Ltd.

o., Ltd.

d.

Co., Ltd.

Pte. Ltd.

ty. Ltd.

g through the Company, subsidia


ublic Company Lim


Fiber ce

Fiber ce

Fiber ce

Concre

for floor wall

Insulation and gl

Holding

Holding

Floor and wall cer

Floor and wall cer

Home related

Electr

Holding

Holding

Holding

Holding

Light-weight

Holding

Internation

Domestic d

Logistic

Business

Exhibition cente

and co

Logistics skills developme

for SCG business

Holding

Holding

Internation

aries, associates, jointly-controll

s Policies and Ope

mited

(

Products

ement roof

ement roof

ement roof

ete blocks

and fence

ass wools

g company

g company

ramic tiles

ramic tiles

d services

ricity plant

g company

g company

g company

g company

t concrete

g company

nal trading

distribution

cs service

s services

Retail

er services

onsultation

ent school

s partners

g company

g company

nal trading

led entity and other companies.

eration

Location

Head Office

/ Factory) Telep

Saraburi 66-2586

Lampang 66-5433-7

Bangkok 66-2286

Saraburi 66-2586

Saraburi 66-3637-3

Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2586-4

Saraburi 66-3637

Bangkok 66-2586

Bangkok 66-2586

Singapore (65) 6297

Philippines (632) 813

Singapore (65) 6297



Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2586

Bangkok 66-2101

Saraburi 66-3672

Singapore (65) 6338

Hong Kong (852) 2846

Australia (612) 9438

5

phone Facsimile

-3333 66-2586-2761

301-5 66-5433-7300

-7888 66-2286-8951-2

-6822 66-2586-6800

441-4 66-3637-3445-6

-3333 66-2586-2761

-3333 66-2586-2761

094-8 66-2587-8800

-6400 66-3637-6422

-4111 66-2586-4017

-3333 66-2586-2761

-9661 (65) 6297-9662

-1666 (632) 813-1704

-9661 (65) 6297-9662

-1666 (632) 813-1704

-0360 (6226) 7861-0361

-3333 66-2586-5454

-3333 66-2586-2251

-3333 66-2586-2961

-3333 66-2586-2158

-3333 66-2586-4445

-3333 66-2586-5625

-9922 66-2101-9920

-4377 66-3672-4378

8 1888 (65) 6337 5100

6 1888 (852) 2845 0476

-1225 (612) 9436-0195

Nu

Type of shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

mber of Issued and

paid-up paid-up Co

shares shares S

(Million (Million

shares) Baht)

110 11,000

5 530

0.3 25

16 1,630

13 422

7 242

60 6,037

27 2,650

96 960

5 115

0.5 45

21 411

14 136

39 1,342

174 192

4 1,253

220 12,150

4 400

21 524

3 300

0.1 10

1 100

5 500

0.1 5

14 400

16 452

0.2 5

Direct

/ Indirect Tota

ompany and Direct


Holding Holding *

(Percent) (Percent)

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 10

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

l

t

t

*

)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

***

Pa

Th

Name

SCG Trading Guangzhou

2 SCG Trading Hong Kong

3 SCG Trading Philippines I

4 SCG Singapore Trading P

5 SCG Trading USA Inc.

6 PT SCG Trading Indonesi

7 SCG Trading Vietnam Co

8 SCG Trading Lao Co., Ltd

9 SCG Marketing Philippine

0 The CPAC Roof Tile Co.,

Thai Ceramic Roof Tile Co

2 Thai Ceramic Holding Co.

3 SCG Concrete Roof (Vietn

(Formerly : CPAC Monier

4 SCGT Malaysia Sdn. Bhd

5 CPAC Monier Philippines,

6 Monier Roofing Co., Ltd.

7 Buu Long Industry & Inves

8 PT KIA Serpih Mas

9 PT KIA Keramik Mas

0 PT Keramika Indonesia A

PT Semen Jawa

2 Kampot Cement Co., Ltd.

* Directly and indirectly holding * No issuance of share for the L

The capital contribution is as

art 1 Business Ope

he Siam Cement Pu

Co., Ltd.

Limited

Inc.

Pte. Ltd.

ia

., Ltd.

d.

es Inc.

Ltd.

o., Ltd.

., Ltd.

nam) Co., Ltd.

Vietnam Co., Ltd.)

.

, Inc.

stment Joint Stock Company

ssosiasi, Tbk.

through the Company, subsidiarLimited Liability Company incorpostipulated in the investment certi


ublic Company Lim

Principal Busines

Interna

Interna

Interna

Interna

Interna

Interna

Logistics service, interna

and loc

Interna

Interna

Conc

Cera

Hold

Conc

Interna

Conc

W

Floor and wal

Cera

Floor and wal

ries, associates, jointly-controlledorated in Vietnam. ficate of the invested company.

s Policies and Ope

mited

ss / Products

ational trading

ational trading

ational trading

ational trading

ational trading

ational trading

ational trading

cal distribution

ational trading

ational trading

crete roof tiles Nakorn P

/ Lamphun / Nak

/ Chon

/Na

amic roof tiles

ding company

crete roof tiles

ational trading

crete roof tiles

Clay roof tiles

White cement

l ceramic tiles

amic roof tiles

l ceramic tiles

Cement

Cement

d entity and other companies.

eration

Location

(Head Office

/ Factory) T

China (86) 208

Hong Kong (852) 2

Philippines (632)

(632)

Singapore (65) 6

USA (1310)

(1310)

(1310)

Indonesia (6221)

Vietnam (848) 352

(84) 90

Laos (85621)

Philippines (632)

Prathom/ Saraburi 66-25

korn Sri Thamaraj 66-25

nburi / Khonkaen

akorn rajchasrima

Saraburi 66-2

Bangkok 66-2

Vietnam (84650)

Malaysia (603) 5

Philippines (632)

Rayong 66-2

Vietnam (8461)

Indonesia (6221)

Indonesia (6221)

Indonesia (6221)

Indonesia (6221)

Cambodia (85523

6

Telephone Facsim

-365-2559 (86) 208-365-25

2838-6456 (852) 3009-83

501-8634 (632) 501-86

501-8630

6295-3455 (65) 6292-52

323-2194 (1310) 324-95

323-2438

323-2528

351-8890 (6221) 352-07

-69001-08 (848) 352-69009-

3-449-633

243-435-6 (85621) 243-4

912-3454 (632) 621-30

86-4032-4 66-2586-43

86-4037-9

2586-5999 66-2586-50

2586-3333 66-2586-27

767-581-4 (84650) 767-5

5632-0168 (603) 5632-01

717-6924 (632) 836-22

2555-0055 66-2555-00

396-5475 (8461) 396-54

386-2322 (6221) 386-22

386-2322 (6221) 386-22

386-2322 (6221) 386-22

350-9491 (6221) 350-97

3) 996-839 (85523) 996-8

mile Type of shares

595 Ordinary shares

360 Ordinary shares

635 Ordinary shares

241 Ordinary shares

528 Ordinary shares

718 Ordinary shares

-10 **

437 Ordinary shares

060 Ordinary shares

308 Ordinary shares

017 Ordinary shares

761 Ordinary shares

580 **

158 Ordinary shares

254 Ordinary shares

001 Ordinary shares

478 Ordinary shares

253 Ordinary shares

253 Ordinary shares

253 Ordinary shares

704 Ordinary shares

849 Ordinary shares

Number of Issued and

paid-up paid-up

shares shares

(Million (Million

shares) Baht)

0.03 24

45 220

0.1 8

1 23

0.02 36

0.002 5

- 64

0.01 7

0.1 23

2 211

2 200

2 200

- 235

0.4 4

206 205

9 950

4 56

3,143 1,528

2,926 2,162

14,929 5,603

0.09 301

4 1,551

Direct

/ Indirect Tota

Company and Direct


Holding Holding *

(Percent) (Percent)

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

99 99

97 97

96 96

96 96

95 95

94 94

l

t

t

*

)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

9

7

6

6

5

4

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

***

Pa

Th

Name

3 PT Kokoh Inti Arebama T

4 The Siam Sanitary Fittings

5 PT Tambang Semen Suk

6 Sosuco and Group (2008)

7 The Concrete Products an

8 Prime Group Joint Stock C

9 Prime Trading, Import and

Limited Liability Company

0 Prime Materials Company

Ceramic Research Institut

2 Prime International Im-Ex

3 Prime Ngoi Viet Joint Sto

4 Prime Pho Yen Joint Stoc

5 Prime Yen Binh Joint Stoc

6 Prime Truong Xuan Joint

7 Prime Mineral Joint Stock

8 Saraburirat Co., Ltd.

9 Mariwasa-Siam Ceramics

0 PT Surya Siam Keramik

Myanmar CPAC Service C

2 Prime Dai Viet Joint Stock

3 Prime Thein Phuc Joint S

4 Prime Phong Dien Joint S

5 Prime Dai Thinh Joint Sto

6 Prime Dai Loc Joint Stock

* Directly and indirectly holding* No issuance of share for the


art 1 Business Ope

he Siam Cement Pu

bk.

s Co., Ltd.

abumi

) Co., Ltd.

nd Aggregate (Vietnam) Co.,

Company

d Export One Member

y

y Limited

tion

x & Servicing Trading Co.,Ltd

ock Company

ck Company

ck Company

Stock Company

k Company

s, Inc.

Co., Ltd.

k Company

tock Company

Stock Company

ock Company

k Company

g through the Company, subsidiaLimited Liability Company incorpstipulated in the investment cert


ublic Company Lim

Principal Busines

Building material

Faucet

Limes

Marketing and s

and wall

, Ready-mix

Hold

Marketing and s

and wall

Exploration and proces

R

development new

materials a

. Marketing

machine a

C

Floor and wall

Wall

Water heater;


Concrete floor a

Floor and wall

Ceram

Ready-mix

Floor and wall


Real Esta

Proces

Floor and wall

ries, associates, jointly-controlleporated in Vietnam. tificate of the invested company.

s Policies and Ope

mited

s / Products

s distribution

ts and fittings

stone Quarry

sales of floor

ceramic tiles

xed concrete

ing company

sales of floor

ceramic tiles

sing material

Research and

w technology,

and products

and sales of

nd sparepart

Clay roof tiles

ceramic tiles

ceramic tiles

mechanical

sing material

and wall tiles

ceramic tiles

mic floor tiles

xed concrete

ceramic tiles

sing material

ate Business

sing material

ceramic tiles


eration

Location

(Head Office

/ Factory) Tele

Indonesia (6221) 35

Bangkok 66-2973-

Indonesia (6221) 35

Bangkok 66-293

Vietnam (8483) 60

Vietnam (84) 211-38

Vietnam (84) 211-38

Vietnam (84) 211-38

Vietnam (84) 211-35

Vietnam (84) 43-787

Vietnam (84) 211-35

Vietnam (84) 280-38

Vietnam (84) 211-38

Vietnam (84) 211-37

Vietnam (84) 211-38

Saraburi 66-258



Myanmar (951) 6

Vietnam (84) 211-38

Vietnam (84) 54-36

Vietnam (84) 211-38

Vietnam (84) 54-37

Vietnam (84) 510-37

7

ephone Facsimile

50-6227 (6221) 350-1767

-5101-7 66-2973-5108-9

50-9491 (6221) 350-9704

38-9833 66-2938-9839

02-7111 (8483) 713-3707

888-987 (84) 211-3888-986

888-987 (84) 211-3898-276

888-987 (84) 211-3898-276

582-345 (84) 211-3898-275

77 -139 (84) 43-7877-138

597-696 (84) 211-3597-702

866-632 (84) 280-3866-474

866-152 (84) 211-3866-154

726-552 (84) 211-3721-786

888-987 (84) 211-3726-547

86-3333 66-2586-6800

17-6901 (6343) 778-2934

96-2458 (6221) 5696-1635

681-351 (951) 681-351

845-238 (84) 211-3844-464

626-282 (84) 54-3752-292

888-987 (84) 211-3888-986

751-222 (84) 54-3751-222

761-762 (84) 510-3761-763

Nu

e Type of shares

7 Ordinary shares

9 Ordinary shares

4 Ordinary shares

9 Ordinary shares

7 **

6 Ordinary shares

6 **

**

5 **

8 **

2 Ordinary shares

4 Ordinary shares

4 Ordinary shares

6 Ordinary shares

7 Ordinary shares

0 Ordinary shares

4 Ordinary shares

5 Ordinary shares

1 Ordinary shares

4 Ordinary shares

2 Ordinary shares

6 Ordinary shares

2 Ordinary shares

3 Ordinary shares

umber of Issued and

paid-up paid-up C

shares shares

(Million (Million

shares) Baht)

981 350

2 200

3 8

1 50

- 112

101 1,413

- 420

- 0.02

- 7

- 6

25 350

15 210

13 182

6 84

0.4 6

1 96

600 430

0.01 87

4 153

13 182

5 70

3 35

0.01 0.2

30 414

Direct

/ Indirect Tota

Company and Direct


Holding Holding *

(Percent) (Percent)

91 91

91 91

90 90

90 90

88 88

85 85

85 85

85 85

85 85

85 85

85 85

85 85

85 85

85 85

85 85

83 83

80 83

80 80

80 80

77 77

77 77

77 77

77 77

76 76

l

t

t

*

)

1

1

0

0

8

5

5

5

5

5

5

5

5

5

5

3

3

0

0

7

7

7

7

6

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

*

Pa

Th

Name

7 CPAC Monier (Cambodia

8 SCG Trading (Cambodia

9 Thai-German Ceramic In

0 Prime Dai An Joint Stock

1 Prime Hop Thinh Joint St

2 Siam Sanitary Ware Co.,

3 Siam Sanitary Ware Indu

4 Siam Sanitary Ware Indu

5 Prime Tien Phong Joint S

6 Mawlamyine Cement Lim

7 CPAC Cambodia Co., Ltd

8 Quality Construction Prod

9 Q-Con Eastern Co., Ltd.

0 Prime Hoa Cuong Joint S

1 Prime Industrial Joint Sto

2 Prime Vinh Phuc Joint St

3 Siam Cement Myanmar T

4 Guangxi SCG Logistics C

5 Sosuco Ceramic Co., Ltd

6 SCG-Sekisui Sales Co.,

7 PT Siam-Indo Gypsum In

8 PT Siam-Indo Concrete P

9 SCG Trading Emirates L

0 Kampot Land Co., Ltd.

1 Prime Dai Quang Joint S

2 Prime Hao Phu Joint Sto


art 1 Business Ope

he Siam Cement Pu

a) Co., Ltd.

a) Co., Ltd.

ndustry Public Company Lim

k Company

tock Company

, Ltd.

ustry Co., Ltd.

ustry (Nongkae) Co., Ltd.

Stock Company

mited

d.

ducts Public Company Limit

Stock Company

ock Company

tock Company

Trading Ltd.

Co., Ltd.

d.

Ltd.

ndustry

Products

.L.C.

Stock Company

ck Company

g through the Company, subsid


ublic Company Lim

Principal Busines

Conc

Interna

Floor and wall


Industrial Park

S

S

S

Floor and wall

Ready-mi

Light-we

Light-we

Engineered St

Industrial Park

Floor and wall

Interna

Log

Floor and wall

Constructio

modular houses m

Gy

Natural-fibre ro

Interna

Lan


iaries, associates, jointly-contro

s Policies and Ope

mited

ss / Products

crete roof tiles

ational trading

ceramic tiles

ssing material

Development

Sanitary ware

Sanitary ware

Sanitary ware

ceramic tiles

Cement

ixed concrete

eight concrete Phra Nakho

eight concrete

teel Buildings

Development

ceramic tiles

ational trading

gistics service

ceramic tiles

on & Sales of

manufactured

ypsum boards

oofing sheets

ational trading

nd investment

Packaging

ssing material

lled entity and other companies

eration

Location

(Head Office

/ Factory) Te

Cambodia (85523)

Cambodia (85523) 99

Saraburi 66-27

Vietnam (84) 211-3

Vietnam (84) 211-3

Bangkok 66-2973-

Saraburi 66-2973-

Saraburi 66-2973-

Vietnam (84) 211-3

Myanmar (951)

Cambodia (85523)

on Si Ayutthaya 66-35

Rayong 66-38

Vietnam (84) 211-3

Vietnam (84) 211-3

Vietnam (84) 211-3

Myanmar (959) 8

China 66-25

Saraburi 66-36

Bangkok 66-25

Indonesia (6221) 88

Indonesia (6226) 7

United Arab (9714) 3

Cambodia (85523)

Vietnam (84) 510-2

Vietnam (84) 27-3

.

8

lephone Facsimi

990-407 (85523) 990-40

90-401-5 (85523) 990-40

90-9800 66-2790-989

728-770 (84) 211-3726-54

888-987 (84) 211-3888-98

-5040-54 66-2973-347

-5040-54 66-2973-347

-5040-54 66-2973-347

888-174 (84) 211-3887-74

225-812 (951) 222-13

990-406

22-1271 66-3522-127

65-0515 66-3895-646

888-987 (84) 211-3898-27

888-987 (84) 211-3888-98

866-637 (84) 211-3887-34

73-0462 (951) 548-05

86-1590

37-6300 66-3637-630

86-1323 66-2586-148

32-0028 (6221) 8832-003

43-2140 (6225) 743-214

21-7663 (9714) 321-766

996-839 (85523) 996-84

471-993 (84) 510-3761-44

821-118 (84) 27-3821-11

ile Type of shares

08 Ordinary shares

00 Ordinary shares

90 Ordinary shares

47 Ordinary shares

86 Ordinary shares

70 Ordinary shares

70 Ordinary shares

70 Ordinary shares

47 Ordinary shares

32 Ordinary shares

- Ordinary shares

70 Ordinary shares

68 Ordinary shares

75 Ordinary shares

86 Ordinary shares

47 Ordinary shares

58 Ordinary shares

- Ordinary shares

09 Ordinary shares

81 Ordinary shares

36 Ordinary shares

49 Ordinary shares

69 Ordinary shares

49 Ordinary shares

44 Ordinary shares

18 Ordinary shares

Number of Issued and

paid-up paid-up

shares shares

(Million (Million

shares) Baht)

0.1 43

0.0001 1

1,698 1,698

3 35

0.001 0.01

1 60

2 200

2 160

12 168

0.2 5

0.2 5

400 400

59 590

12 168

0.1 1

25 350

0.0002 3

- 34

0.008 800

8 825

0.03 306

0.03 446

0.0003 3

0.001 0.2

2 28

3 35

Direct

/ Indirect T

Company and Di

Subsidiaries / Indi

Holding Holdin

(Percent) (Perc

75

75

75

75

72

71

71

71

71

70

69

68

68

65

65

65

60

55

54

51

50

50

49

48

48

43

otal

rect

rect

ng *

ent)

75

75

75

75

72

71

71

71

71

70

69

68

68

65

65

65

60

55

54

51

50

50

49

48

48

43

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

***

Pa

Th

Name

Associates, Jointly-contr

CMPI Land, Inc.

SCG Nichirei Logistics Co

Thai Prosperity Terminal C

CPAC Monier (Laos) Co.,

Sekisui-SCG Industry Co.,

Survey Marine Services C

Jumbo Barges and Tugs C

Noritake SCG Plaster Co.,

Mariwasa Holdings, Inc.

Green Siam Resources Co

CMPI Holdings, Inc.

Siam Global House Public

Anhui Conch-SCG Refract

The Siam Gypsum Industr



PT M Class Industry

Pacific Asian Logistic Join

Asia Cement Public Comp

Holcim Cement (Banglade

SCG Chemicals

Subsidiaries

SCG Chemicals Co., Ltd.

Thai Polyethylene Co., Ltd

SCG Plastics Co., Ltd.

Directly and indirectly holding No issuance of share for the LThe capital contribution is as s

art 1 Business Ope

he Siam Cement Pu

rolled entity and Other Com

., Ltd.

Co., Ltd.

Ltd.

, Ltd.

o., Ltd.

Co., Ltd.

, Ltd.

orporation

c Company Limited

h

tory Co., Ltd.

ry Co., Ltd.

ry (Saraburi) Co., Ltd.

ry (Songkhla) Co., Ltd.

t Stock Company

pany Limited

esh) Limited

d.

through the Company, subsidiaLimited Liability Company incorpstipulated in the investment cert


ublic Company Lim

Principal Business

mpanies

Sh

Concre

Manufacture and d

home c

Transportatio

Manufacture and distrib

Holdin

Bailn

Holdin

Building ma

home improvement products

Gyps

Gyps

Gyps

Cla

Holdin

P

ries, associates, jointly-controlleporated in China. ificate of the invested company.

s Policies and Ope

mited

(H

/ Products

Land rental P

Cold Chain

hipping port Sam

ete roof tiles

distribute of

components

Land rental

on by lighter

bute plaster

ng company P

ng business P

ng company P

aterials and

distribution

Refractory

sum boards

sum boards

sum boards

ay roof tiles

Logistic

Cement

Cement B

ng company

olyethylene

Trading


eration

Location

ead Office

/ Factory) Teleph

Philippines (632) 908-3

Bangkok 66-2586-6

mut Prakarn 66-2754-450

Laos (85621) 243-

Saraburi 66-3637-3

Bangkok 66-2296-149

Bangkok 66-2872-30

Saraburi 66-3637-3578




Roi Et 66-4351-9

China (86) 553-839-9

Bangkok 66-2555-0

Saraburi 66-3637-350

Songkhla 66-7420-600

Indonesia (6202) 6743-6

Vietnam (84) 43-7738-4

Bangkok 66-2641-5

Bangladesh (8802) 988-100

Bangkok 66-2586-4

Rayong 66-3868-339

Bangkok 66-2586-6

9

hone Facsimile

3720 (632) 750 6650

6610 66-2586-3136

01-9 66-2754-4513

-440 (85621) 242-179

3478 66-3637-3480

90-2 66-2296-1494

14-5 66-2872-3016

8-82 66-3637-3577

5-36 (6343) 778-2934

8631 (632) 501-8631

1666 (632) 813-1704

9597 66-4351-1492

9857 (86) 553-839-9877

0055 66-2555-0001

00-9 66-3637-3510

00-5 66-7420-6006

6888 (6221) 539-7094

420 (84) 43-7738-421

5600 -

02-3 -

4762 66-2586-5561

93-7 66-3868-3398

6161 66-2910-4022

Num

p

s

(M

Type of shares s

Ordinary shares

Preferred shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

mber of Issued and

paid-up paid-up Com

shares shares Su

Million (Million

shares) Baht)

100 97

100

6 342

1 63

0.2 21

23 2,325

0.4 37

4 399

4 405

248 267

13 95

48 55

2,613 2,613

- 497

2 150

5 470

1 120

34 222

2 28

778 4,671

0.1 123

344 32,277

52 5,190

0.1 5

Direct

/ Indirect Total

mpany and Direct

ubsidiaries / Indirect

Holding Holding *

(Percent) (Percent)

64 64

51 51

50 50

50 50

49 49

48 48

45 45

40 40

40 40

40 40

40 40

30 30

30 30

29 29

- 29

- 29

28 28

21 21

10 10

10 10

100 100

100 100

100 100

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

***

Pa

Th

Name

6 SCG Performance Chem

7 Rayong Engineering & Pl

8 Protech Outsourcing Co.

9 RIL 1996 Co., Ltd.

0 Texplore Co., Ltd.

1 Vina SCG Chemicals Co

2 SCG Chemicals (Singapo

3 Tuban Petrochemicals Pt

4 Hexagon International, In

5 C4 Holding Pte. Ltd.

6 PT TPC Indo Plastic & C

7 Rayong Pipeline Co., Ltd

8 Thai Plastic and Chemica

9 TPC Paste Resin Co., Ltd

0 The Nawaplastic Industrie

1 Nawa Plastic Industries C

2 Nawa Intertech Co., Ltd.

3 Chemtech Co., Ltd.

4 Total Plant Service Co., L

5 SCG ICO POLYMERS C

6 Map Ta Phut Tank Termi

7 Minh Thai House Compo

8 Map Ta Phut Olefins Co.

9 Rayong Olefins Co., Ltd.

0 Rayong Olefins (Singapo

1 Viet-Thai Plastchem Co.,

2 Alliance Petrochemical In

3 TPC Vina Plastic and Ch

4 Siam Stabilizers and Che



art 1 Business Ope

he Siam Cement Pu

micals Co., Ltd.

lant Service Co., Ltd.

, Ltd.

., Ltd.

ore) Pte. Ltd.

te. Ltd.

nc.

hemicals

.

als Public Company Limited

d.

es (Saraburi) Co., Ltd.

Co., Ltd.

Ltd.

OMPANY LIMITED

inal Co., Ltd.

onent Co., Ltd.

, Ltd.

ore) Pte. Ltd.

Ltd.

nvestment (Singapore) Pte.

emicals Corporation Ltd.

emicals Co., Ltd.

g through the Company, subsidiLimited Liability Company incor

s stipulated in the investment ce


ublic Company Lim

Principal Business

Engineering and

Engineering and

Indu

Chemical technolo

Hold

Hold

Hold

Hold

Raw materials for synt

Rights of w

PVC

PVC pipe

PVC pipe and P

Mold

Plast

Hold

P

Warehouse and transporta

PVC doors a

Raw materials for p

Raw materials for p

Raw materials

PVC

Hold

aries, associates, jointly-controlrporated in Vietnam. rtificate of the invested company

s Policies and Ope

mited

(H

s / Products

Trading

plant service

plant service

ustrial estate

ogy licensing

ing company

ing company

ing company

ing company

thetic rubber

PVC

way, and use

PVC

paste resins

e and fittings

PVC products

ding products

ic compound

ing company

Plastic resins

ation service

and windows

plastic resins

plastic resins

procurement

C compound

ing company

PVC

Stabizer


y.

eration

Location

Head Office

/ Factory) Telep

Bangkok 66-2586-

Rayong 66-3868-50

Rayong 66-3868-26

Rayong 66-3868-94

Rayong 66-2586-

Bangkok 66-2586-

Singapore (65) 6297-


USA 66-2586-

Singapore 66-2586-

Indonesia (6231) 395-

Rayong 66-3893-

Bangkok 66-2827-

Bangkok 66-2827-

Bangkok 66-2586-39

Bangkok 66-2586-39

Rayong 66-3889-

Vietnam (84650) 3784

Rayong 66-3868-73

Bangkok 66-2586-

Rayong 66-3868-94

Vietnam (848) 3754-

Rayong 66-3893-

Rayong 66-3868-50


Vietnam (84650) 3710


Vietnam (848) 3823-

Rayong 66-3868-34

10

phone Facsimile

-4115 66-2586-3676

040-8 66-3891-1309

632-3 66-3868-2633

471-2 66-3891-1955

-6353 66-2586-2086

-5435 -

-9661 -

-9661 -

-4444 -

-1972 -

-2945 (6231) 395-2944

-7065 66-3803-5381

-7272 66-2827-7273

-7272 66-2827-7273

930-5 66-2586-4305

930-5 66-2586-2444

-2190 66-3889-2244

4-992 (84650) 3784-993

320-3 66-3892-5299

-2006 -

471-2 66-3891-1955

-2989 (848) 3844-6073

-7000 66-3891-5310

040-8 66-3868-5036

-9661 -

0-993 (84650) 3740-065

-5318 -

-4730 (848) 3823-4725

451-3 66-3868-3449

Nu

Type of shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

**

Ordinary shares

mber of Issued and

paid-up paid-up Co

shares shares S

(Million (Million

shares) Baht)

0.05 3

0.04 2

0.01 1

11 1,100

0.01 1

3 883

38 804

112 2,349

2 67

7 185

0.03 1,020

4 200

875 875

3 333

4 400

4 426

0.4 40

- 103

12 1,180

1 26

7 700

- 36

395 39,520

153 15,320

0.02 0.5

- 75

46 1,881

- 1,013

190 190

Direct

/ Indirect Tota

ompany and Direct


Holding Holding *

(Percent) (Percent)

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

100 100

96 96

92 92

91 91

91 91

91 91

91 91

91 91

91 91

91 91

87 87

82 82

73 73

55 67

50 67

67 67

66 66

65 65

63 63

54 54

l

t

t

*

)

0

0

0

0

0

0

0

0

0

0

6

2

1

1

1

1

1

1

1

7

2

3

7

7

7

6

5

3

4

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

***

Pa

Th

Name

5 Flowlab & Service Co., Lt

Associates, Jointly-cont

6 SCG Plastics (China) Co

7 Siam Mitsui PTA Co., Ltd

8 SMH Co., Ltd.

9 Siam Styrene Monomer C

0 Siam Synthetic Latex Co.

1 Siam Polyethylene Co., L

2 Siam Polystyrene Co., Ltd

3 Rayong Terminal Co., Ltd

4 PT Siam Maspion Termin

5 SD Group Service Co., Lt

6 Bangkok Synthetics Co.,

7 Thai MMA Co., Ltd.

8 Grand Siam Composites

9 Thai MFC Co., Ltd.

0 Siam Tohcello Co., Ltd.

1 Long Son Petrochemicals

2 Mehr Petrochemical Com

3 PT Trans-Pacific Polyethy

4 PT Trans-Pacific Polyethy

5 Nawacam Co., Ltd.

6 Riken (Thailand) Co., Ltd

7 PT Chandra Asri Petroch

8 GTC Technology US, LLC

9 GTC Technology Internat



art 1 Business Ope

he Siam Cement Pu

td.

trolled entity and Other Com

., Limited

.

Co., Ltd.

., Ltd.

Ltd.

d.

d.

nal

td.

Ltd.

Co., Ltd.

s Co., Ltd.

mpany (P.J.S.C.)

ylene Indonesia

ylindo

.

emical Tbk.

C

tional, LP

g through the Company, subsidiaLimited Liability Company incorp stipulated in the investment cer


ublic Company Lim

Principal Business

Calibrat

mpanies

Raw materials for polyeste

Holdin

Raw materials for p

Syn

Po

P

Tank and term

Term

Holdin

Raw materials for synth

Raw materials

Polypropylene

Melamine

Raw materials for pac

Raw materials for pl

Polyethylene and pol

Polyethyle

Polyethyle

Polyethyle

PVC pipe

PVC

Raw materials for pl

Polyethylene and pol

Chemical technolog

Chemical technolog

aries, associates, jointly-controlleporated in Vietnam. rtificate of the invested company

s Policies and Ope

mited

(

/ Products

tion service

Trading

er and PET

ng company

polystyrene

nthetic latex

olyethylene

Polystyrene

inal service

inal service

ng company

hetic rubber

s for acrylic

e compound

e compound

ckaging film

astic resins

lypropylene

ene (HDPE)

ene (LDPE)

ene (HDPE)

and fittings

C compound

astic resins

lypropylene

gy licensing

gy licensing


y.

eration

Location

(Head Office

/ Factory) Telep

Rayong 66-3891-1

Hong Kong (852) 2544

Rayong 66-3868

Rayong 66-3868

Rayong 66-3868-3

Rayong 66-3868-3

Rayong 66-3868-3

Rayong 66-3868-3

Rayong 66-3868-9

Indonesia (6231) 395-2

Bangkok 66-2365

Bangkok 66-2679

Rayong 66-3868-5

Rayong 66-3868

Rayong 66-3868

Rayong 66-3801

Vietnam (848) 3825

Iran (9821) 8850



Cambodia (85523) 88

Bangkok 66-2501


USA 66-2586

USA 66-2586

11

phone Facsimile

1321-2 66-3891-1381

4-9991 (852) 2544-9992

8-5100 66-3868-7333

8-5100 -

3215-6 66-3868-3991

3215-6 66-3868-3991

3215-6 66-3868-3991

3215-6 66-3868-3991

9471-2 66-2586-6220

2945-8 -

5-7000 66-3868-3991

9-5120 66-2679-5119

5040-8 66-2586-5393

8-4241 66-3868-4255

8-4241 66-3868-4255

1-0500 66-3801-0506

5-7226 (848) 3825-7268

0-0641 (9821) 8805-0642

4-5880 -

4-5880 -

82-072 (85523) 885-172

1-1054 66-2501-1198

0-7950 (6221) 530-8930

6-4444 -

6-4444 -

Nu

Type of shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

umber of Issued and

paid-up paid-up C

shares shares S

(Million (Million

shares) Baht)

0.02 4

0.1 4

48 4,800

1 60

48 4,755

59 5,789

45 4,455

10 995

14 1,325

0.01 327

0.8 78

12 1,173

56 5,590

0.6 64

2 200

0.6 592

- 1,646

0.03 1,335

0.2 472

0.07 337

0.02 7

1 120

3,066 14,690

0.2 102

13 191

Direct

/ Indirect Tota

ompany and Direct


Holding Holding *

(Percent) (Percent)

51 51

58 58

49 50

50 50

50 50

50 50

49 50

50 50

- 50

50 50

50 50

49 49

46 47

46 46

45 45

45 45

44 44

39 39

39 39

39 39

36 36

32 32

30 30

25 25

25 25

l

t

t

*

)

1

8

0

0

0

0

0

0

0

0

0

9

7

6

5

5

4

9

9

9

6

2

0

5

5

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

*

Pa

Th

Name

0 Tien Phong Plastics Joint

1 PT Trans-Pacific Petroch

2 Thai PET Resin Co., Ltd.

3 Mitsui Advanced Compos

4 Binh Minh Plastics Joint S

5 PT Srithai Maspion Indon

6 PT Trans-Pacific Polypro

7 PT Trans-Pacific Styrene

SCG Paper

Subsidiaries

8 SCG Paper Public Comp

9 Thai Paper Co., Ltd.

0 Thai Union Paper Public

1 Siam Kraft Industry Co., L

2 United Pulp & Paper Co.,

3 Paperlink Inter-Trade Co

4 Siam Cellulose Co., Ltd.

5 InfoZafe Co., Ltd.

6 The Siam Forestry Co., L

7 Panas Nimit Co., Ltd.

8 Thai Panason Co., Ltd.

9 Thai Panadorn Co., Ltd.

0 Thai Panaram Co., Ltd.

1 Suanpa Rungsaris Co., L

2 Siam Panawes Co., Ltd.

3 Thai Panaboon Co., Ltd.

4 Thai Wanabhum Co., Ltd

5 Phoenix Pulp & Paper Pu


art 1 Business Ope

he Siam Cement Pu

t Stock Company

hemical Indotama

sites (Zhongshan) Co., Ltd.

Stock Company

nesia

opylene Indonesia

e Indonesia

any Limited

Company Limited

Ltd.

, Inc.

rporation

Ltd.

Ltd.

d.

ublic Company Limited

g through the Company, subsidi


ublic Company Lim


Raw materials for

P

Polypropylene c

Melamine c

Poly

Raw materials for po

Holding company and blea

Printing and wri

Printing and wri

K

K

K

Blea

Shredding

Bleac

Printing and wri

aries, associates, jointly-control

s Policies and Ope

mited

(H

Products

PVC pipe

aromatics

PET resins

compound

PVC pipe

compound

ypropylene

olystyrene

ached pulp

ting paper

ting paper Sam

Kraft paper

Kraft paper

Kraft paper

ached pulp

g business

Forestry

Forestry

Forestry

Forestry

Forestry

Forestry

Forestry

Forestry

Forestry

ched pulp

ting paper


eration

Location

Head Office

/ Factory) Telep

Vietnam (843) 1385-


Rayong 66-3868-

China (86) 760-533-

Vietnam (848) 3969-




Bangkok 66-2586-

Bangkok 66-2586-


Bangkok 66-2586-

Philippines (632) 870-

Philippines (632) 870-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Khonkaen 66-2586-

12

phone Facsimile

-2073 (843) 1364-0133

-5880 -

-5900 66-3868-5999-609

-2138 (86) 760-389-8880

-0973 (848) 3960-6814

-3630 -

-5880 -

-5880 -

-3333 66-2586-2164

-3333 66-2586-2164

00-10 66-2754-2118

-3333 66-2586-2164

-0100 (632) 870-0409

-0100 (632) 870-0409

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

-3333 66-2586-2164

Nu

Type of shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Preferred shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Preferred shares

mber of Issued and

paid-up paid-up Co

shares shares S

(Million (Million

shares) Baht)

43 652

4 9,815

9 900

15 596

45 682

0.01 118

0.07 220

0.1 314

156 1,563

17 1,700

43 430

35 3,450

840 4,328

141

0.1 1

3 300

1 70

1 147

0.02 2

0.02 2

0.02 2

0.02 2

0.02 2

0.03 3

0.03 3

0.03 3

110 1,200

10

Direct

/ Indirect Tota

ompany and Direct


Holding Holding *

(Percent) (Percent)

22 22

20 20

20 20

20 20

19 19

10 10

10 10

10 10

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

98 98

l

t

t

*

)

2

0

0

0

9

0

0

0

8

8

8

8

8

8

8

8

8

8

8

8

8

8

8

8

8

8

226

227

228

229

230

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

***

Pa

Th

Name

6 Phoenix Utilities Co., Ltd.

7 SCGP Excellence Traning

8 SCG Paper Energy Co.,Lt

9 Thai Cane Paper Public C

0 Thai Containers Group Co

1 Thai Containers Khonkae

2 Thai Containers Rayong C

3 Vina Kraft Paper Co., Ltd.

4 TCG Rengo (S) Limited

5 New Asia Industries Co., L

6 Alcamax Packaging (Vietn

7 AP Packaging (Hanoi) Co

8 Packamex (Vietnam) Co.,

9 PT Primacorr Mandiri

0 Dyna Packs Co.,Ltd.

1 Orient Containers Co., Ltd

2 Tawana Container Co., Lt

3 Thai British Security Print

4 Thai British DPost Co., Ltd

Associates and Other Co

5 Siam Toppan Packaging C

6 Siam Nippon Industry Pap

7 P&S Holdings Corporation

8 TCG Rengo Subang (M) S

Other

Subsidiaries

9 Cementhai Holding Co., L

0 Cementhai Property (2001

* Directly and indirectly holding* No issuance of share for the L


art 1 Business Ope

he Siam Cement Pu

g Center Co., Ltd.

td.

Company Limited

o., Ltd.

n Co., Ltd.

Co., Ltd.

.

Ltd.

nam) Co., Ltd.

o., Ltd.

Ltd.

d.

td.

ing Public Company Limited

d.

ompanies

Co., Ltd.

per Co., Ltd.

n

Sdn. Bhd.

Ltd.

1) Public Company Limited

g through the Company, subsidiaLimited Liability Company incorpstipulated in the investment cert


ublic Company Lim

Principal Business / P

Training and

Kr

Corrugat

Corrugat

Corrugat

Kr

Corrugat

Corrugat

Corrugat

Corrugat

Corrugat

Corrugat

Corrugat

Corrugat

Corrugat

Securities d

Digita

Offset-printed

Specia

Holding

Corrugat

Holding

Holding

ries, associates, jointly-controlledorated in Vietnam. ificate of the invested company.

s Policies and Ope

mited

(H

Products

Utilities

d Seminar

Energy

raft paper

ted boxes Bangkok / P

/ Samut Prakarn /

ted boxes

ted boxes

raft paper

ted boxes

ted boxes

ted boxes

ted boxes

ted boxes

ted boxes

ted boxes S

ted boxes S

ted boxes Sam

document Sam

al printing Sam

d cartons Sam

alty paper

company

ted boxes

company

company


eration

Location

Head Office

/ Factory) Teleph

Khonkaen 66-2586-3

Bangkok 66-2586-3

Bangkok 66-2586-3

Bangkok 66-2440-0

Pathumthani 66-2586-5

/ Ratchaburi

Khonkaen 66-2586-3

Rayong 66-2586-3

Vietnam (848) 268-02

Singapore (65) 6661-7

Vietnam (848) 3729-4

Vietnam (84) 650-3743

Vietnam (84) 320-3753

Vietnam (84) 8-729

Indonesia (6221) 596 2

amutsakorn 66-2810-93

amutsakorn 66-3488-34





Bangkok 66-2586-3


Malaysia (603) 5636-3

Bangkok 66-2586-2

Bangkok 66-2586-2

13

hone Facsimile

3333 66-2586-2164

3876 66-2586-4507

3333 66-2586-2164

0707 66-2440-0717

5991 66-2586-4723

3333 66-2586-2164

3333 66-2586-2164

240-2 (848) 268-0239

7325 (65) 6265-3144

4160 (848) 3729-3028

3031 (84) 650-782816

3862 (84) 320-752868

1030 (84) 8-7291031

2345 (6221) 596 2000

346-7 66-2810-9103

422-4 66-3488-3421

0781 66-2324-0079

650-8 66-2384-0917

5215 66-2661-9580

10-7 66-2324-0336

3333 66-2586-2164

0100 (632) 870-0409

3610 (603) 5636-3621

2104 66-2586-2008

2104 66-2586-2008

Num

pa

s

(M

Type of shares sh

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

**

Ordinary shares

**

**

**

**

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

ber of Issued and

aid-up paid-up Com

shares shares Su

Million (Million

hares) Baht)

15 1,500

0.05 5

0.01 1

358 3,583

14 1,384

0.2 150

1 650

- 6,069

2 56

- 345

- 429

- 248

- 8

0.06 183

1 90

26 260

3 300

11 110

3 34

5 500

11 1,100

28 263

15 804

0.01 1

7 72

Direct

/ Indirect Total

mpany and Direct

bsidiaries / Indirect

Holding Holding *

(Percent) (Percent)

98 98

98 98

98 98

85 85

69 69

69 69

69 69

69 69

69 69

69 69

69 69

69 69

69 69

62 62

52 52

52 52

50 50

49 49

25 25

48 48

44 44

39 39

17 17

100 100

100 100

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

*

Pa

Th

Name

Associates and Other C

1 Property Value Plus Co.,

2 SCG Accounting Service

3 SCG Legal Counsel Limit

4 CTO Management Co., L

5 Cementhai Captive Insur

6 SCG Learning Excellence

7 PT SCG Indonesia

8 Siam GNE Solar Energy

9 Siam Kubota Corporation

0 Siam Kubota Metal Tech

1 Siam Kubota Leasing Co

2 Siam Lemmerz Co., Ltd.

3 Siam AT Industry Co., Ltd

4 Thai Engineering Produc

5 The Nawaloha Industry C

6 Aisin Takaoka Foundry B

7 Muang Thong United Co

8 The Siam Nawaloha Fou

9 Musashi Auto Parts Co.,

0 IT One Co., Ltd.

1 Toyota Motor Thailand C

2 Siam Yamato Steel Co.,

3 Michelin Siam Group Co.

4 Michelin Siam Co., Ltd.

5 Lysando AG

6 Siam Toyota Manufacturi


art 1 Business Ope

he Siam Cement Pu

Companies

Ltd.

es Co., Ltd.

ted

Ltd.

rance Pte. Ltd.

e Co.,Ltd

Co.,Ltd

n Co., Ltd.

nology Co., Ltd.

o., Ltd.

d.

cts Co., Ltd.

Co., Ltd.

Bangpakong Co., Ltd.

., Ltd.

ndry Co., Ltd.

Ltd.

o., Ltd.

Ltd.

., Ltd.

ing Co., Ltd.

g through the Company, subsidi


ublic Company Lim

Principal Business / P

and business and land leas

Accounting, financial and tax

Legal co

Maketable securities inv

In

Trainin

Management consulting

E

Agricultural m

Aluminium allo

Automot

Automot

Foot

Motorcycle transmiss

Technical

Aut

Struct

Holding company in tyre

Holding company in tyre

Research and deve

Automotive eng

automo

aries, associates, jointly-control

s Policies and Ope

mited

(H

Products

e service

x services

onsultant

vestment

nsurance

g service

g service

Electricity

machinery P

Cast iron Cha

Leasing P

oy wheels

tive parts

tive parts P

Cast iron

Cast iron

ball team

Cast iron

sion parts P

services

tomotives Sam

ural steel

business

business

elopment Li

gines and

tive parts


eration

Location

Head Office

/ Factory) Telep

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Bangkok 66-2586-

Singapore 66-2586-

Bangkok 66-2586-


Bangkok 66-2586-


achoengsao 66-3885-

Pathumthani 66-2909-

Saraburi 66-3637-330

Chonburi 66-3845-42


Saraburi 66-3633-65

Chonburi 66-3845-46

Bangkok 66-2508-

Saraburi 66-3628-


Bangkok 66-2271-

mut Prakarn 66-2386-

Rayong 66-3868-372

Bangkok 66-2619-300

Bangkok 66-2619-300

iechtenstein 66-2586-

Chonburi 66-3821-34

14

hone Facsimile

-2104 66-2586-2008

-3333 66-2586-2398

-5777 66-2586-2976

-3333 66-2587-2157

-3333 66-2587-2157

-3333 66-2586-2684

-9491 (6221) 352-0718

-5684 66-2586-6284

300-1 66-2909-1698

-5115 66-3885-5110

-0300 66-2909-1697

09-21 66-3637-3312-3

266-8 66-3845-4266

18-22 66-2529-1677

531-4 66-3622-3209

671-7 66-3845-4670

-8100 66-2508-3369

-8300 66-3628-8309

753-6 66-2529-4554

-5111 66-2271-5112

-1000 66-2386-1883

23-30 66-3868-3200

00-19 66-2619-3179

00-19 66-2619-3179

-2104 66-2586-2008

451-5 66-3874-3310

Num

Type of shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Ordinary shares

Preferred shares

Ordinary shares

Ordinary shares

Ordinary shares

mber of Issued and

paid-up paid-up Co

shares shares S

(Million (Million

shares) Baht)

8 820

0.5 5

0.2 15

25 380

1 34

0.2 20

0.1 26

0.2 16

31 2,739

9 900

55 2,000

0.1 110

2 240

0.9 85

3 300

5 475

1 120

3 308

0.2 200

0.8 80

8 7,520

30 3,000

24 2,667

3

38 2,197

1 37

9 1,850

Direct

/ Indirect Tota

ompany and Direct


Holding Holding *

(Percent) (Percent)

100 100

100 100

100 100

100 100

100 100

100 100

100 100

50 50

40 40

- 40

- 40

30 30

30 30

29 30

30 30

30 30

30 30

20 25

21 21

20 20

10 10

10 10

10 10

- 10

10 10

4 4

l

t

t

*

)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

5

1

0

0

0

0

0

0

4

Reve

Rem

SCG

S

distrib

leade

buildi

Key In

Capac

Brand

enue Structu

mark : Fina* Sh

Cement-Build

SCG Cement

bution, focus

er in both dom

ing material p

nformation

city

d

Part 1 Bus

The Siam

2

re

ancial figures hare of profit

ding Materials

t-Building Ma

es on develo

mestics and

product grou

siness Operat

Cement Publi

2. Operat

are classifiedof associates

s

aterials Co.,

oping High Va

ASEAN. The

p, and ceram

• Grey C

• Grey C

• Ready

• Roof p

• Ceiling

• Floor a

♦ Cemen

♦ Ready

♦ Roofin

AYARA

tion / 2. Opera

ic Company L

tion of Key

d according tos and jointly-co

Ltd, busines

alue Added P

main produc

mic product g

Cement (Thail

Cement (Outs

y-Mixed Concr

products

g / Board / Wo

and Wall Cera

nt: Elephant a

y-Mixed Conc

g products: E

A

ation of Key B

Limited

y Business

o business unontrolled entit

ss consists o

Products & S

cts in the com

group.

and)

ide Thailand)

rete

ood substitutio

amic tile

and Tiger Bran

rete: CPAC B

Elephant, CPA

Business Units

units

nit before interties recognize

of cement, bu

Services and

mpany are c

ons

23

1 m

570

98

113

225

nds

rand and Jay

AC Monier, EX

s

rsegment elime by using equ

uilding mate

aims to be th

ement produ

million tons p

million tons pe

0 plants

million Sq.M.

3 million Sq.M

5 million Sq.M

yamix Brand

XCELLA, NeuS

15

mination. uity method.

rials, and

he market

uct group,

per year

er year

per year

M. per year

M. per year

Stile and

Key In

Streng

Major

2.1 P

nformation

gths

r Business Po

Product or Ser

Products

Cement

1. Grey

2. Whit

3. Mor

4. Rea

Part 1 Bus

The Siam

olicy

rvice Features

s and service

Group

y Cement

te Cement

rtar Cement

ady-Mixed Co

siness Operat

Cement Publi

♦ Ceiling

♦ Concre

Elepha

♦ Ceram

CAMP

♦ Sanita

♦ Buildin

♦ Flagsh

♦ Transp

♦ Major

ASEAN

♦ The lar

♦ Embed

policy

♦ Rigoro

service

♦ Expan

♦ Mainta

market

♦ Develo

♦ Contin

social

develo

s

s are primarily

ncrete

tion / 2. Opera

ic Company L

g/Board/Wood

ete blocks, co

ant

mic floor and w

PANA COTTO

ry, Bath Room

ng Material Ou

hip Retail Stor

portation Serv

integrated pro

N

rgest product

dded sustaina

and operatio

ous in-house R

es.

d business in

ain price and

t leadership

op High Value

nuously conse

development

opment.

y classified b

ation of Key B

Limited

d substitutions

oncrete floor t

wall tiles: COT

Italia Prime K

m, and Kitche

utlet: SCG HO

re for SCG: SC

vice: Transpor

oducer of cem

tion capacity

able developm

ns.

R&D efforts to

n ASEAN in or

market stabili

Added Produc

erve natural re

t program with

y companies

Business Units

s: Elephant

tiles, and prec

TTO, SGI Tiles

KIA Mariwasa

n: COTTO

OME SOLUTIO

CG Experienc

rt OK

ment and build

in floor/wall ce

ment philosop

create innov

rder to be a re

ty as well as e

cts and Service

esources and

h local commu

as follows:

s

cast concrete

s, SOSUCO a

Brand

ON, HOME M

ce

ding material

eramic tiles in

phy as part of

vative product

egional leader

enhance its d

ces

environment

unity for susta

16

e walls:

nd

ART

products in

n the world

company

ts and

r

domestic

and join

ainable

2.2 M

5. Fire

6. Aera

Building

7. Roo

8. Ceil

Ceramic

9. Floo

Other Pr

10. Log

11. Imp

12. Disp

13. Othe

Serv

Market and Co

A. Policy an

- Policy1) Comp

• T

V

n

fr

th

a

e

P

M

• T

c

re

to

Part 1 Bus

The Siam

clay Bricks an

ated lightweig

Material Grou

of (Fiber Ceme

ing/Board/Wo

c Group

or and Wall Til

roducts and S

istic service

ort/Export Se

posal of Indus

er Products a

vice

ompetition

nd Market Fe

y and Market Fpetitive Strate

he business

Value Added

eeds such a

riendly produc

he only Thai

llows SCG C

ach custome

recast Ceme

Modeena serie

he business

ost reduction

eduction, and

o provide cu

siness Operat

Cement Publi

nd Special Re

ght concretes

up

ent Roof, Con

ood Substitute

les

Services

rvice

strial Waste

nd Services s

atures of Mai

Features gy

avoids comp

Products and

s continuous

cts to reduce

cement com

ement to effic

r segment su

ent, Elephant

e, Curvlon Roo

has policy to

n projects, for

waste reduc

ustomers pro

tion / 2. Opera

ic Company L

efractory

(ALC)

crete Roof, an

e

such as Insula

in Products a

peting on pric

d Services to

s improvemen

e natural reso

mpany that ha

ciently develo

ch as Tiger P

t Marine Cem

of, Ceramic T

o continuously

r example, en

ction. Furtherm

ofessional ad

ation of Key B

Limited

nd Ceramic R

ation, Roofing

nd Services

ce, by creatin

create differe

nt, becoming

ource consum

as its own re

op its goods

Plastering Cem

ment, Portlan

ile, and COTT

y increase p

nergy cost re

more, SCG CB

dvice and r

Business Units

Roof)

Center, and

g value to cu

entiation and

trend setter,

mption. In ad

esearch and

and services

ment, Tiger Su

d Composite

TO Digital.

roduction effi

eduction, raw

BM also has it

ecommendat

s

Home Produc

ustomers thro

response to

, and develo

ddition, SCG C

development

s to serve the

uper Cement

e cement, Sm

iciency and i

w material con

ts own techni

tion about p

17

ct and

ough High

customer

ping eco-

Cement is

t unit that

needs of

, Elephant

martWood

mplement

nsumption

cal teams

production

2

3

p

re

th

• T

so

a

C

c

2) Customer F

• Ceme

concr

buildi

• Buildi

match

• Ceram

Tar

Med

Med

3) Channel of

• Dom

deale

proje

servi

price

Servi

• Regio

coun

Part 1 Bus

The Siam

rocess, qualit

elated problem

he Customer C

he business g

ocial activities

nd skill abou

Community”, e

ontractors.

Features and

ent Product:

rete roof, boa

ng material p

ing Material P

h with produc

mic products

rget Group/Ap

dium to low in

dium to high i

f Distribution

estics Distrib

ers across Th

ect customers

cing, was us

e estimation,

ice dealer cal

onal Distribut

ntries. The exp

siness Operat

Cement Publi

ty control, an

ms. Therefore

Complaint Ca

gives priority

s such as “E

ut concrete te

education act

Target Group

cement is so

rd, etc. Besid

roducer, and

Products: targ

t categories,

can be classi

pplication

ncome segme

income segm

bution: the b

hailand and su

s, Project Man

ed to enhanc

and service

led SCG Hom

tion: SCG Tra

port will focus

tion / 2. Opera

ic Company L

d cost reduc

e, customers c

all Center.

to society an

lephant Conc

echnology fo

tivity to impro

ps

old to affiliat

des SCG cust

major contra

get groups ar

designs, and

ified as follow

Bran

ent SGI

ment COT

business prov

upports sales

nagement, the

ce efficiency.

installation, i

me Solution an

ading, SCG’s

s on needs of

ation of Key B

Limited

tion as well a

can promptly

d environmen

crete”, educa

r engineering

ove skills and

te companies

omers, ceme

ctors.

e classified b

customer be

ws:

nd

Tiles , SOSUC

TTO

vides strong

s promotion to

e One Stop S

The segmen

s served by

nd COTTO Stu

subsidiary, is

f destination c

Business Units

as suggest po

and directly

nt by providin

tion activity fo

g students, a

d enhance liv

s such as re

nt is sold to d

by price, and

havior in each

CO and CAM

distribution

o both dealers

olution for ma

nt that needs

the One-Stop

udio.

s the SCG ex

customer or d

s

ossible solutio

notify their pr

ng many mark

or increase k

and “Tiger Pr

ving standard

eady mixed c

dealers, major

group of cus

h area.

PANA

network thro

rs and sub-de

anaging, follo

consulting, d

p Shop and

xporting agen

dealer in eac

18

ons of any

roblems to

keting and

knowledge

ofessional

d of local

concreter,

r concrete

stomers to

ough 500

ealers. For

wing, and

designing,

One-Stop

nt to other

h country.

For

subs

• In ad

inform

and

2013

- Pol

Pre

(Sara

Thung

with t

perce

For b

Sarab

and N

marke

1.)

variou

Ordin

dioxid

2.)

which

cover

3.)

work

4.)

want t

5.)

dimen

color

dry pr

Part 1 Bus

The Siam

strategic co

sidiary, manag

ddition, the b

mation techno

increasing de

3, “SCG Skills

icy and Marke

esently, the bu

buri), 2) Khao

g Song Ceme

the productio

ent, which is t

building mate

buri, Nakhrn P

Nakhon Si Tha

et as follows:

Continue ex

us plants to se

nary Cement P

de in cement

Increase prod

h is for floor a

ring cement d

Produce spe

in high rise bu

Produce CPA

to mix more w

Smart Wood

nsion surface

before finishe

rocess and re

siness Operat

Cement Publi

untries, for

ges distributio

usiness focus

ology (IT) to

ealers’ capab

Development

et Features o

usiness has fi

o Wong Ceme

ent Plant (Na

on capacity 2

the highest m

rials, the bus

Prathom, Lam

ammarat. In th

xpanding pro

erve custome

Portland (OPC

production pr

duction capa

and wall deco

decorative.

ecial Mortar fo

uilding or sing

AC Super Plu

water in the wo

d Decorative

e, applicable

ed with water

esistant to wat

tion / 2. Opera

ic Company L

example Ind

on network wit

s on increasi

connect all o

bilities in man

t School” was

of Main Produ

ve grey ceme

ent Plant (Sara

akorn Sri Tha

23.2 million a

market share c

siness has fa

mpang, Lamp

he year 2013,

oduction capa

ers’ needs. PC

C). However,

rocess.

acity of Tiger C

orative to serv

or Formwork

gle house with

us, new ready

orkplace

Wall Panel,

both indoor

r base acrylic

ter and termit

ation of Key B

Limited

donesia, PT

th more than 2

ng efficiency

operation in o

nagement and

s founded in o

cts and Servi

ent plants in T

aburi), 3) Kae

mmarat), 5) L

nd domestic

compared to

actories, prod

hun, Chonbu

, the business

acity of Port

CC can be us

PCC is more

Cement unde

ve customers

panel. This s

h fast, conven

y mixed conc

Modeena se

and outdoor

c paint. In add

te.

Business Units

KOKOH Inti

2,700 dealers

in supply ch

rder to respo

d HR develop

order to develo

ces

Thailand: 1) T

eng Khoi Cem

Lampang Ce

market shar

other domest

ducing roof,

rim Khonkarn

s has product

land Compos

ed in the con

environment

er brand “Tige

s that need u

special Mortar

nience, and st

rete to serve

erie is the u

decoration.

dition, it can

s

Arebama T

s throughout I

hain by using

onse custome

pment. For ex

op partners’ s

Ta Luang Cem

ment Plant (Sa

ment Plant (L

re of approxi

tics cement p

ceiling, and

n, Nakhon Ra

ts and innova

site Cement

ncrete work as

tal friendly fro

er Cement De

nique and ou

r is used for

trong benefits

customers th

nique wall p

Be easily pa

be easily inst

19

Tbk, SCG

ndonesia.

g advance

ers’ needs

xample, in

skills.

ment Plant

raburi), 4)

Lampang)

mately 40

producers.

board, in

atchasima,

tion in the

(PCC) in

s same as

om carbon

ecorative”,

utstanding

the panel

s.

hat do not

panel with

inted with

talled with

6.)

appea

qualit

7.)

Presti

wet o

the til

8.)

the sa

belon

- Dom

In 2

due

decre

produ

For

instab

dome

SCG

creati

buildi

order

netwo

our pr

- Reg

Camb

gover

the m

board

Myan

after t

ceme

projec

Part 1 Bus

The Siam

Tra chang

arance, such

ty, installation

Increase pro

ge tile is conc

n wet system

e and durable

Continue R&D

ame as natur

ngs to SCG an

mestics Marke

2013, the dom

primarily to

eased. The s

ucts.

r 2014, the

bility, and inve

estics’ consum

G CBM focus

ing value to

ng good rela

to be more c

ork nationwide

roducts.

gional Market

bodia: in 2013

rnment infrast

market leader.

d, which main

mar: the cem

the foreign di

ent roof has h

ct channels.

siness Operat

Cement Publi

roof tile, Cu

as colorful &

time is shorte

oduction of C

crete roof tha

and used In

e.

D on Marmo G

ral stone, but

nd was patent

et and Compe

mestic cemen

investment f

sales of build

cement dem

estment polic

mption, the co

ses on mainta

customers th

tionship with

competitive. I

e to increase

t and Compet

3, the grey ce

tructure inves

For building

ly sold throug

ment demand

rect investme

high growth. A

tion / 2. Opera

ic Company L

urvlon serie

shiny color. W

en compared

Concrete Roo

at is designed

organic pigm

Granito. Marm

t stronger and

ted internation

etition

nt demand in

from both g

ding material

mand would

cy on mega p

ompany will fo

aining its mark

hrough high v

customers as

In addition, w

points of pur

tition

ement deman

tment. The ce

materials, the

gh SCG Autho

d from infrastr

ent law was im

All products

ation of Key B

Limited

is made of

With its advan

to usual corru

f at Lamphun

to fill Thai hu

ment that make

mo Granito is t

d more durab

nally.

ncreased by 7

government a

ls have cont

grow slower

project. Howev

ocus more on

ket leadership

value added

s well as impl

we have also i

rchase to faci

nd grew from

ement plant in

e company is

orized Dealer.

ructure and c

mplemented i

were manage

Business Units

f fiber-cemen

ntage in terms

ugated roof til

n for profile a

mid climate. I

es color beco

the artificial st

ble. The Marm

7% compared

and private

inuously grow

r from politic

ver, in case o

cement expo

p, avoiding to

products and

ementing cos

mproved and

litate our cust

economics e

n Cambodia, K

still the leade

construction i

n 2012. For b

ed through re

s

nt and has

s of sizing and

le.

and flat (pres

It is painted c

oming smooth

tone that look

mo Granito te

d to the prev

sectors, whi

wth driving f

cal issue, go

of slowdown

orting.

o compete on

d services (H

st reduction p

d expanded d

tomers’ acce

expansion esp

Kampot Cem

er in concrete

s growing sig

building mate

etails, wholes

20

aesthetic

d superior

stige) tile.

colour with

hness with

k beautiful,

echnology

ious year,

ile export

from HVA

overnment

in cement

n price, by

HVA), and

program in

distribution

ssibility to

pecially in

ent, is still

e roof and

gnificantly

rials, fiber

sales, and

2.3 PA

Type

Main Raw

Limestone

Shale

Sand

Clay

Copper Slag

Gypsum

Kraft Paper

Fuel

Lignite

Petroleum

Coke

Coal

Bunker Oil

Biomass

roducts and SA) Product Pr

NumbeSelle

Materials

-

-

~ 3

~ 3

1

~ 6

4

~ 2

~ 2

~ 10

3

20

Part 1 Bus

The Siam

Services Procrocurement Fe

er of ers

-

Long

exter

3 Occa

long-

3 Long

exter

3-ye

supp

6 Long

supp

from

Year

affilia

supp

2 Long

supp

2 Occa

0 Long

supp

purc

Occa

Long

supp

purc

siness Operat

Cement Publi

curement eature

Procurement

g-term contrac

rnal contracto

asional purch

-term relation

g-term contrac

rnal contracto

ar contracts w

pliers.

g-term contrac

pliers and par

own sources

rly contracts w

ates and inter

pliers

g-term contrac

pliers

asional purch

g-term contrac

pliers and occ

hase.

asional purch

g-term contrac

pliers and occ

hase.

tion / 2. Opera

ic Company L

method

cts with

ors.

hase with

suppliers

cts with

ors.

with external

cts with

rtly operate

s.

with SCG

rnational

cts with

hase

cts with

casional

hase.

cts with

casional

ation of Key B

Limited

Local / Foreign

100% / 0%

100% / 0%

100% / 0%

100% / 0%

0% / 100%

100% / 0%

30% / 70%

100% / 0%

0% / 100%

0% / 100%

100% / 0%

50% / 50%

Business Units

Own supp

Own supp

with contra

Own supp

Currently b

Own supp

long-term c

partly buy

Buy from e

Currently b

partly from

Currently b

partly from

Self-opera

buy from e

Buy from e

Buy from e

Buy from e

Buy from e

s

Rema

ply sources an

ply sources. Lo

actors.

ply sources ke

buy from exte

ply sources. C

contracts with

from externa

external supp

buy from exte

m own sources

buy internatio

m domestics s

ate from its su

external supp

external supp

external supp

external supp

external supp

21

ark

nd self-operate

ong-term con

ept as reserve

rnal sellers.

urrently have

h contractors

l suppliers.

liers

rnal suppliers

s.

nal suppliers

uppliers

pply sources

liers.

liers

liers

liers

liers

ed.

tracts

e.

and

s and

and

and

F

d

s B

For other mat

domestics an

shortage of ra

B) EnvironmeSCG Ce1) Env1.1) Gre

env

be

loc

init

cam

< 1

kee

1.2) Dus

bag

Bui

pla

tran

1.3) Lim

frie

of

mo

add

ma

are

are

eco

1.4) Wa

by

Part 1 Bus

The Siam

erials, the bus

d internationa

aw materials.

ent Protection ment-Buildingvironment Proeen and Cle

vironment pro

“Green and

al communit

iated and imp

mpaign to con

10 mg/ m3). T

ep their workin

st Control: SC

g filters to co

ilding Materia

nts to opera

nsportation sy

mestone Minin

ndly Semi-Op

the natural l

untain intact

dition, during

terial and tran

eas, SCG Cem

eas to its origi

osystem and b

ater Consump

recycling all

siness Operat

Cement Publi

siness has lon

al. The compa

g Materials haotection ean Plant:

otection policy

Clean Plants”

ties and env

plemented the

ntrol the dust

To do so, bot

ng areas and

CG Cement-B

llect dust in e

als systematic

te more effic

ystems were p

ng Process:

pen Cut Minin

andscape by

to maintain s

the mining p

nsportation ro

ment-Building

nal condition

biodiversity.

ption: Water m

used water

tion / 2. Opera

ic Company L

ng term contr

any will not de

as enacted en

SCG Ceme

y by requiring

”. The policy

vironments. B

e Total Preven

within the pla

h employees

machines in

Building Mate

every point of

cally impleme

ciently during

put in place to

For mining

ng has been e

y extracting

surrounding s

process, wate

outes to reduc

g Materials es

by improving

management

from cool do

ation of Key B

Limited

acts with man

epend too mu

nvironment po

ent-Building

g all cement p

y aims to red

Besides, SC

ntive Managem

ant areas at b

and busines

a good and s

erials has inst

f manufacturin

ents preventiv

g working tim

o control dust

operation, th

employed. Thi

our limestone

scenery and

r is sprayed o

ce the spread

stablishes env

g land surface

under the Clo

own process

Business Units

ny raw materia

ch on any sin

olicies as follo

Materials co

plants and the

uce dust as

G Cement-B

ment (TPM) u

below 1 mg/m

s partners ha

safe condition

alled electros

ng process. B

ve maintenanc

me. Raw mat

.

he modernize

s mining tech

e while leavi

reduce noise

onto raw mate

ing of dust. F

vironmental p

e and planting

osed Circuit S

in cement bu

s

al producers

ngle supplier t

ows:

onsistently im

eir surrounding

well as prote

Building Mate

nder “Dust F

m3 (standard

ave full respo

.

static precipit

Besides, SCG

ce plans to e

terial silos an

ed and envir

hnique preser

ng the outsid

e and dust po

erial receipt b

For the deplet

plans to rehab

g native trees

System was c

urning produ

22

both

to prevent

mplements

g areas to

ect nearby

erials has

Free Plant”

regulation

nsibility to

tators and

G Cement-

enable the

nd closed

onmental-

rves much

de of the

ollution. In

basin, raw

ed mining

bilitate the

to restore

conducted

ction and

ma

are

sea

was

reu

1.5) The

qua

sta

from

spe

kno

eve

qua

inve

2) Nat2.1 Alte

app

alte

mat

alte

cou

Tota

2.2 Ene

usa

effic

the

pro

spr

cer

Part 1 Bus

The Siam

chinery within

eas to preserv

ason as well a

s recycled to

using waste w

e quality cont

ality of enviro

ndards, SCG

m factory sta

ecified in the

own as “The

ery smokesta

ality around

estigate and p

tural Resourcernative Fuel

proximately 1

ernative fuels

terial busines

ernative fuel i

untry eliminate

al Waste Qua

ergy Consum

age of each

ciency of exis

forms of both

ocess to redu

ray dryer with

ramic mixes m

siness Operat

Cement Publi

n the factorie

ve water durin

as in Waste H

o use in wall/f

ater from prod

trol of enviro

onment in m

G Cement-Bui

acks, in the c

e environmen

Continuous E

ck to observ

the plant ar

prevent enviro

ces Conservatls: In 2013,

6% of heat c

come mainl

ss invested i

s not only to

e industrial w

ality Adjustme

mption: SCG

cement plan

sting machine

h electricity an

ce natural ga

dry grinding

made up of ra

tion / 2. Opera

ic Company L

es. Besides, t

ng the rainy se

Heat Power G

floor ceramic

duction and

nment: Apart

anufacturing

lding Materia

community ar

tal impact an

Emission Mon

ve the emitted

reas. In addi

onmental imp

tion SCG Ceme

consumption

ly from biom

in gasifier to

reduce natu

waste. Present

nt Permit (Nu

Cement-Bui

nt which indi

es is continuo

nd fuel utiliza

as consumpti

system. The

aw materials w

ation of Key B

Limited

he water well

eason. The re

Generation (W

production p

treatment by

t from installin

process to

als’s cement p

reas around t

nalysis repor

nitoring Syste

d air. Mobile

ition, environ

pact from busi

nt-Building M

in its manuf

mass and ind

reduce natu

ral resources

tly, every SCG

mber 101) fro

lding Materia

icates cemen

usly improved

tion; for exam

ion in powde

process is to

without liquid

Business Units

s are establis

eserved water

WHG). For Cer

process of Th

Ultra Filtration

ng efficient m

meet or even

plant regularl

the factories,

t. Moreover,

ems (CEMS)”

cars are em

mental labor

ness operatio

Materials use

facturing proc

ustrial waste

ural gas con

s consumption

G’s cement p

om the Ministry

als has regula

nt production

d to reduced

mple, ceramics

r preparation

o produce bod

to be a finess

s

shed within th

r will be used

ramics busine

hai Ceramic c

n (UF).

machines to c

n exceed go

y measures

and in the

the automat

has been in

mployed to m

ratories are s

ons.

ed alternative

cess. The s

. In addition

nsumption. Th

n, but also to

plant has bee

ry of Industry.

arly monitore

n efficiency.

energy consu

s business ch

n process by

dy powder by

ses powder th

23

he factory

in the dry

ess, water

co., ltd. by

control the

overnment

air quality

offices as

ic system

nstalled at

monitor air

set up to

e fuels at

ources of

, building

he use of

o help the

n granted

ed energy

Thus, the

umption in

hanges its

replacing

y grinding

hat will be

2.4

SCG

2.1 P

OO

m

a

f

b

PP

t

1

2

3

gra

to b

2.3 Wa

aro

2.4 Nat

Gla

con

Undelivered P None

Chemicals

Product or Ser

Olefins Olefins are th

main raw mate

and Styrene M

from the olef

business’s an

Polyolefins Polyolefins are

ons per year,

1) High De

and good

plastic s

crates, f

insulators

2) Medium

formation

productio

3) Linear Lo

strength.

agricultu

Part 1 Bus

The Siam

anulated with

be used in ce

aste Heat Pow

und 30% of to

tural Resourc

ass Co.,Ltd, S

nsumption for

Projects or Hi

rvice Features

e primary pe

erials for dow

Monomer. The

fins plant suc

d/or SCG sub

e the busines

covering a w

nsity Polyethy

d chemical re

hopping bags

fruit crates, t

s, and etc.

Density Polye

n, and low te

on of coolers,

ow Density Po

. It is norma

ral films, plas

siness Operat

Cement Publi

a granulating

ramic tiles pro

wer Generatio

otal cement p

e Reduction:

CG subsidiar

manufacturin

gh-Valued Pu

s

etrochemical p

wnstream Polyo

e business’s c

ch as Mix-C

bsidiaries’ dow

s’s main prod

wide range of

ylene (HDPE)

esistance. It i

s, milk bottles

trash bins, ro

ethylene (MDP

mperature re

water tanks,

olyethylene (L

ally used as

stic rice bags,

tion / 2. Opera

ic Company L

g system for th

oduction

on (WHG): in 2

plant electricity

In order to re

ry, redesigned

ng glass wool

urchase Agree

product comp

olefin plastics

current Olefins

C4, Benzene

wnstream plan

ducts. The bu

applications a

) Outstanding

s normally us

s, shampoo a

opes, fishnet

PE) Outstand

sistance. It is

water treatme

LLDPE) Outsta

the main ra

and etc.

ation of Key B

Limited

he required p

2012, WHG ca

y consumptio

duce natural

d and installed

.

ements

prising of Eth

s and related

s capacity is 2

and Toluene

nts.

siness has to

as follows:

g features are

sed as the ma

and cosmetics

ts, ring-nets,

ing features a

s normally us

ent tanks, traf

anding feature

aw material fo

Business Units

positive chara

an reduce the

n.

resource con

d Cullet Melte

ylene and Pr

products suc

2,900,000 ton

e are mainly

tal polyolefins

e good flow-a

ain raw materi

s bottles, lubr

water pipes

are high dart i

ed as the ma

ffic cones, and

es are high st

or the produc

s

acteristics of g

e purchasing

nsumption, Sia

er to reduce s

ropylene whic

ch as Polyviny

ns per year. By

consumed w

s capacity of

ability, easy

ial for the pro

ricant contain

s, electric po

impact streng

ain raw mater

d etc.

tiffness and hi

ction of indu

24

granulates

electricity

am Fiber

ilica sand

ch are the

yl Chloride

yproducts

within the

1,900,000

formation,

duction of

ers, bottle

ower cord

gth, stable

rial for the

igh tensile

strial and

4

5

PP

T

m

1

2

JT

s

a

1

2.2 M

A

4) Low Den

normally

films, lids

5) Polyprop

It is nor

wrapping

compone

Polyvinyl ChloPVC products

Thailand and

main categori

1) PVC Res

without c

cannot

propertie

2) PVC Com

additives

additives

many ou

material,

Jetty & Tank The Company

storage of pe

and etc. At p

10,000 dead w

Market and Co

A) Policy an

- PolicyPolyolefi1) Com

•

Part 1 Bus

The Siam

nsity Polyethy

used as the

s, plastic boxe

pylene (PP) O

rmally used a

g films, wove

ents, and etc.

oride (PVC) s from Thai Pla

ASEAN with

ies:

sin - a type of

changing its

be directly f

es according

mpound - nor

s such as ad

s to increase

utstanding fea

, it can be use

Terminal y provides its

etrochemical g

present, the C

weight tons.

ompetition

nd Market Fea

y and Market ns and PVC ampetitive Stra

High Value

siness Operat

Cement Publi

ylene (LDPE)

main raw ma

es, surface co

utstanding fea

as the main

n bags, hous

astics and Ch

total producti

f thermoplastic

original struc

formed into f

to customers

rmally in pelle

ditives to incr

heat resistan

atures such a

ed as insulato

s affiliates wi

gases and liq

Company own

atures of Main

Features are commoditategy

e-Added Prod

tion / 2. Opera

ic Company L

) Outstanding

aterial for the

oatings, and e

atures are hig

raw material

sehold utensi

hemicals Publ

ion capacity o

c in pure pow

cture and can

finished good

s’ specification

et or powder w

rease impact

nce capabilit

s weather res

or, sheath for

th pipe trans

quids such a

ns four jetties

n Products an

ty products w

ucts

ation of Key B

Limited

g features ar

production o

etc.

gh dart impac

for the prod

ls, battery sh

lic Company

of 886,000 ton

wder form whi

n be reused i

ds, thus nee

ns.

which has alre

strength, ad

y without cha

sistance, fire

electrical wire

sportation as

as Naphtha, O

with a capac

nd Services

ith a fairly vola

Business Units

re clarity and

f cold food b

ct strength and

duction of ho

hells, electrica

Limited, the la

ns per year, c

ch can withst

n different pr

eds various a

eady been dr

ditives to help

anging its for

retardant, ligh

e, telephone c

well as jetty

Olefins, Benz

city of 100,00

atile price cyc

s

d high stiffne

bags, food pre

d high heat re

ot food bags

al appliance

argest PVC pr

can be divide

tand heat and

roductions. H

additives to

ry-blended wi

p the forming

rm, and etc.

ht weight, and

cable, pipes, a

y and tank te

zene, Butadie

00, 80,000, 20

cle.

25

ess. It is

eservation

esistance.

s, general

parts, car

roducer in

d into two

d pressure

owever, it

adjust its

th various

g process,

Due to its

d rust-free

and etc.

erminal for

ne, MMA,

0,000 and

•

Part 1 Bus

The Siam

The co

improve pr

has invest

efficiency. A

total sales o

- Pip

- Ro

- Wi

- PE

- Pro

de

- PV

- Ot

an

The b

to reduce

competitive

Price and C

Both

correlated w

by offering

customers.

which emp

Application

maintaining

investment

achieve ec

integrated

concept w

cost reduc

Special Aw

conservatio

siness Operat

Cement Publi

ompany has p

oduct quality

ed in the e

At present, sa

of downstream

pe: PE 100 wa

otomolding: “E

re and Cable

E Wax: proces

opylene com

evices and au

VC: resin and

her specialtie

d wood subst

usiness aims

impact of bu

eness of the b

Cost

domestic an

with the globa

g high quality

The busines

phasizes on

n Prize. In te

g competitive

, the busines

conomy of sca

player, the b

hich emphas

tion. By follow

ward for its a

on as well as

tion / 2. Opera

ic Company L

planned and

and respond

nhancement

ales of high v

m products. H

ater pipe, gas

Elixir” water st

e: sheath for e

ssing aid, disp

mpound and

tomotive part

compound fo

es: constructi

titution mater

to further inc

usiness volat

business.

d export pric

al market pric

y products a

ss has adop

customer an

erms of cost

e cost posit

ss has to con

ale with lowes

business also

sizes on equi

wing TPM co

achievement

s accident a

ation of Key B

Limited

developed hig

d to customer

of research

value-added p

High value-ad

s pipe

torage, outdo

lectrical wire,

persant

Propylene co

s

or medical app

on materials,

ials or Wood P

rease sales p

ility in the do

ces of Polyo

ces. The busin

and different

pted Total Qu

nd quality, an

managemen

ion. As petr

nstantly de-bo

st investment

o utilizes Tot

pment maint

ncept, the bu

in productio

and environm

Business Units

gh value-add

needs. In thi

and develo

products acco

ded products

or furniture

fiber optic ca

o-polymer: co

plication and

door and win

Plastic Compo

portion of high

own cycle w

lefins and PV

ness aims to c

iated value a

uality Manage

nd was awar

nt, the busine

rochemical in

ottlenecking t

cost per ton

al Productivit

enance, prod

usiness was a

on efficiency

ental impact

s

ed products i

is regard, the

opment capa

ounts for 50 p

s are namely:

able, telephon

ompounds fo

automotive p

ndo made fro

osite (WPC)

h value-added

while enhancin

PVC resins ar

create a price

added servic

ement (TQM)

rded with the

ess gives pr

ndustry requ

the plant cap

n. In addition,

ty Manageme

duction efficie

awarded with

enhancemen

t reduction, l

26

in order to

e business

bility and

percent of

ne cable

r medical

arts

om plastic

d products

ng overall

re closely

e premium

ces to its

) concept

e Deming

riorities to

uires high

pacities to

as a fully

ent (TPM)

ency, and

Advance

nt, energy

eading to

•

•

•

Part 1 Bus

The Siam

improveme

advanced

Advanced

customer s

Product Qu

One o

any effects

great impo

integrated

resulted in

14001, and

related to

developme

expectation

Service

The b

developed

gather cus

responds t

the busine

including c

end-user d

continuous

level of se

customers.

Manageme

In the

Therefore,

important. T

(ERP) syste

business to

sales, deliv

Moreover, t

siness Operat

Cement Publi

ent in employe

IT and e-B

Process Con

atisfaction.

uality Manage

of the busines

on the enviro

rtance to occ

ISO system w

being certifie

d TIS 18001.

laboratory m

ent to constan

ns.

business reco

Customer Re

stomer requir

o customer n

ess provides

close collabor

demands, an

ly engages in

rvice standar

ent

e Polyolefins

an excellent

The business

em to increas

o better satis

very, product

the business

tion / 2. Opera

ic Company L

ee morale an

Business sys

ntrol and CRM

ement

ss’s main pol

onment and c

upational hea

with TQM an

ed by the inte

In addition, t

management

ntly improve

gnizes that “s

elationship M

rement and

needs leading

technical a

ration with cu

nd emphasiz

n plans to de

rd and hence

business, p

t manageme

s has improvin

se visibility in

sfy customer

tion, raw mat

is using new

ation of Key B

Limited

d capabilities

stems, such

M Portal to a

icies is to pro

communities.

alth and safety

d TPM to co

ernational qua

the business

since the b

its product q

service is the

anagement s

analysis so

g to sustainab

assistance in

ustomers to c

zes on deliv

velop and inc

e, ability to s

product dem

nt with accu

ng the efficien

supply chain

needs. The s

terial procure

w technologies

Business Units

s. The busines

as e-Suppl

achieve best-i

oduce high q

In addition, t

y managemen

me under on

ality system,

also applied

business inve

quality to me

e heart of sell

ystem by app

that it can

ble customer

Polyolefins

o-create prod

very timeline

crease servic

satisfy the ne

ands and p

urate and ra

ncy of Enterpr

management

system consi

ement, and in

s to continuou

s

ss has also in

ly Chain, e-

in-class effici

quality produc

the business a

nt systems, th

ne quality ma

namely ISO 9

for ISO17025

ests in rese

eet changing

ing”. Therefo

plying IT tech

accurately a

relationship.

and PVC c

ducts that be

ess and acc

e efficiency t

eeds of differ

prices change

apid decision

rise Resource

t in order to e

sts of order

nventory man

usly improve

27

nvested in

-Ordering,

iency and

cts without

also gives

herefore, it

nagement

9001, ISO

5 which is

arch and

customer

ore, it has

hnology to

nd timely

Moreover,

conversion

etter serve

curacy. It

o a better

ent target

e rapidly.

s is very

e Planning

enable the

forecasts,

nagement.

its Supply

2) CusTar

such as

laminatio

classified

The

diversify

as it is n

3) ChaIn 2

percent

•

•

Part 1 Bus

The Siam

Chain Man

(VMI) syste

multimodal

Excellence

Improveme

business p

efficiency o

system to r

stomer Featurget groups a

s film, injectio

on, extrusion

d based on p

e business’s

y the custome

ot dependent

annel of Distr2013, domes

respectively.

Domestic

There

and 7 perc

the busines

risks and

customers,

Export

The b

directly to

efficiently.

which are l

Guangzhou

30 percent

percent in o

siness Operat

Cement Publi

nagement sys

em to reduc

transportatio

(WOEX) for

ent to enhanc

plans to intr

of feedstock

esponse to cu

res and Targare Polyolefin

on molding,

, and pipe.

product types

customers a

r base into div

t on one custo

ribution tic and expo

are two type

cent are re-ex

ss while the re

distribution

goods are so

business main

end-users o

At present, t

ocated in My

u), Brazil, and

in Southeast

other regions.

tion / 2. Opera

ic Company L

stem includin

ce the amou

on system. Als

inventory ma

ce efficiency

roduce Radio

managemen

ustomers in c

et Groups ns converters

monofilament

For PVC bu

such as pipe

are mostly sm

verse segmen

omer.

ort sales of P

es of custome

xporters. For t

rest (54 perce

of products

old mostly thr

nly exports to

or local distr

the business

yanmar, Vietna

d United Arab

Asia, 33 perc

.

ation of Key B

Limited

ng implement

nt of invento

so, it is using

anagement da

y of producti

o Frequency

nt and Busine

case of emerg

which are c

t & yarn, blo

usiness, targ

and fitting, c

mall and frag

nt and region

olyolefins are

ers of which 9

the former, 46

ent) is sold th

s to Polyole

ough direct s

the Asia-Pac

ributors so t

has 8 repre

am, Philippine

Emirates. Th

cent in East A

Business Units

ing Vender M

ory in stock,

Warehouse M

atabase and

on planning

Identificatio

ess Continuity

ency.

lassified bas

ow molding,

get groups a

alendaring an

gmented so

. Hence, the C

e accounted f

93 percent ar

6 percent is t

rough agents

efins convert

ales by the bu

cific region. P

hat custome

sentative com

es, Indonesia

e proportion f

Asia, 4 percen

s

Management

setting up

Management

Supply Chain

system. Bes

on (RFID) to

y Manageme

ed on format

and others w

are plastic c

nd profile and

the business

Company is r

for 43 percen

re domestic c

through direc

s who manage

ters. For re-

usiness.

roducts are d

er needs are

mpanies inter

a, China (Shan

for the export

nt in South As

28

Inventory

Hub and

Operation

n Visibility

sides, the

increase

ent (BCM)

tion types

which are

onverters,

d others.

s aims to

isk averse

nt and 57

customers

t sales by

e financial

-exporters

distributed

e satisfied

rnationally

nghai and

t market is

ia, and 33

•

•

- Comp1) DomThailand

demand

around

to AFTA

the bus

domest

Plastic

percent

Part 1 Bus

The Siam

As th

concentrati

multinationa

global base

for profit o

country.

In 201

Public Com

Domestic

In res

plastic ma

customer d

customers.

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by the busi

Export

The C

directly to c

Asia, Midd

Company h

chemicals

capable of

areas.

petition and Cmestic d has Polyole

d in 2013 wa

53 percent o

A and WTO, ca

siness has th

ic capacity. T

and Chemica

t of total dome

siness Operat

Cement Publi

e business in

ing in one pa

al players an

ed customers

ptimization as

13, Domestic

mpany Limited

spect of loca

nufacturers i

demand and

stomers are d

ness while the

Company exp

customers. M

le East, Afric

has selected o

with the add

f negotiations

Capacity

efins capacity

as approxima

f total produc

ausing higher

e largest Pol

Thailand has

als Public Co

estic capacity

tion / 2. Opera

ic Company L

nternationally

articular coun

d diversify po

s, the busines

s prices may

and export s

d are 58 perce

l distribution,

in various in

to be able to

domestic cus

e rest (8 perc

ported 80 perc

Main export a

ca, Australia a

only capable

dition of good

, co-ordinatio

of approxima

ately 2.5 mill

ction. Import t

r competition.

lyolefins capa

total PVC pro

ompany Limite

y.

ation of Key B

Limited

exports arou

ntry, it is able

olitical or eco

ss is able to

y differ depen

sales of PVC

ent and 42 pe

the Compan

dustries. The

o promptly p

tomers with 9

cent) is sold th

cent, in volum

reas are Chin

and New Zea

companies in

d relationship

on and provid

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ion tons. Mo

tariff for Polyo

. However, wh

acity in the c

oduction capa

ed is the larg

Business Units

nd 1,016,000

e to avoid di

nomic risks.

manage expo

nding on mar

through Thai

ercent respect

ny emphasize

e objectives

rovide techni

92 percent sa

hrough agents

me, through a

na, Southeast

aland. To se

n distribution o

ps with custo

ding assistanc

on tons per y

reover, Thaila

olefins has be

hen comparin

country – abo

acity of 846,0

gest produce

s

0 tons per ye

rect confront

In addition,

ort products

rket condition

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tively.

es on direct

are to know

ical assistanc

ale through di

s.

agents and 2

Asian countr

ell through ag

of plastic pro

omers. They

ces to custom

year while the

and export P

een reduced a

ng with local p

out 34 perce

000 tons per y

er, accounting

29

ar without

tation with

by having

quantities

s of each

Chemicals

selling to

w the real

ces to the

rect sales

0 percent

ries, South

gents, the

ducts and

y are also

mers in all

country’s

Polyolefins

according

producers,

nt of total

year. Thai

g for 64%

2.3 PA-

E

R

M

T

T

T

T

P

C

T

C

2) ForIn 2013

Major e

demand

largest

roducts or SeA) Product Pr- Production

The bus

Estate, Rayon

Com

Rayong Olefin

Map Ta Phut O

Thai Polyethyl

Thai Polyprop

Thai Plastics a

TPC Paste Re

PT. TPC Indo

Chemicals

TPC Vina Plas

Chemicals Co

Part 1 Bus

The Siam

reign , Polyolefins d

xporters are

d in 2013 was

importer in As

ervices Procurrocurement Fe

siness has 2

ng Province. N

mpany

ns

Olefins

ene

ylene

and Chemical

sin

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stic and

orporation

siness Operat

Cement Publi

demand in As

producers in

s 24 million to

sia.

rement eature

Olefins plants

Nameplate ca

Produc

Ethylene

Propylen

Ethylene

Propylen

HDPE 1

HDPE 2

HDPE 3

HDPE 4

LLDPE

LDPE

PP 1

PP 2

PP 3

s PVC Res

PVC Com

PVC Pas

PVC Res

PVC Res

tion / 2. Opera

ic Company L

sia equaled 7

the Middle E

ons. Demand

s and 9 Poly

apacities are d

ct / Service

e

ne

e

ne

sin

mpound

ste Resin

sin

sin

ation of Key B

Limited

76 million tons

East, USA, Ko

growth was

yolefins plants

displayed belo

Capacity

(Ton / Year

800,000

400,000

900,000

800,000

140,000

180,000

240,000

400,000

120,000

100,000

140,000

180,000

400,000

530,000

63,000

36,000

120,000

200,000

Business Units

s with China a

orea, and Sin

mainly driven

s located in M

ow:

r)

Year F

Opera

1999

2010

1989

1997

2001

2010

1990

1995

1993

1997

2010

1971

1993

1996

1994

s

as the largest

gapore. For

n by China wh

Map Ta Phut

First

ated Sha

9

0

9

7

1

0

0

5

3

7

0

1

3

6

4

30

t importer.

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hich is the

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%

reholding

67

67

100

100

91

91

96

63

V

M

R

R

P

-

Com

Viet-Thai Plast

Map Ta Phut T

Rayong Pipeli

Rayong Engin

Plant Service

- Raw Mate

♦ Olefin

The

cons

Midd

mate

mate

♦ Polyo

The

Olefi

per y

tons

busin

Olefi

♦ PVC The

portio

impo

and

purc

Part 1 Bus

The Siam

mpany

tchem

Tank Termina

ne

neering and

erial Procurem

ns Production

key raw ma

sumption com

dle East and

erials such as

erials.

olefins Produc

key raw mate

ns purchase

year. In additi

per year whi

ness’s olefins

ns from PTTG

Production key raw mate

on is captive

orted from ove

ethylene. TP

hases the res

siness Operat

Cement Publi

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l Jetty and

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Engineer

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ment

aterial in Ole

mes from loca

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s LPG, raffinat

ction

rial in Polyole

contracts with

on, the busine

le the rest of

s plant shareh

GC or import in

erial for PVC

used within t

erseas. The ra

PC produces

st quantity thro

tion / 2. Opera

ic Company L

ct / Service

mpound

d Tank

l

nsportation

ring and

rvice

efins product

al oil refineries

ddition, the c

te, and cond

efins productio

h PTT Global

ess has contr

f olefins produ

holders. More

n case of Ole

production is

the group. Ot

aw materials f

54 percent

ough agents

ation of Key B

Limited

Capacity

(Ton / Year

16,500

-

-

-

tion is Naph

s and the oth

crackers wer

ensate if Nap

on is Olefins

Chemical PLC

ract with in ho

uction is sold

eover, the bus

fins shortages

s Vinyl Chlori

ther raw mate

for VCM produ

of its EDC

Business Units

r)

Year F

Opera

1994

1998

1998

2001

tha in which

her 59 percen

re designed

phtha price is

in which the b

C (PTTGC) at

use olefins pr

d to external c

siness is also

s.

de Monomer

erials are dom

uction are eth

demand in

s

First

ated Sha

4

8

8

1

h 41 percen

nt is imported

to use altern

s higher than

business has

t a total of 185

roduction for

customers wh

o able to proc

r (VCM) in wh

mestically sup

hylene dichlor

Rayong prov

31

%

reholding

66

82

92

100

nt of total

d from the

native raw

other raw

long term

5,000 tons

1,469,000

ho are the

cure more

hich some

pplied and

ride (EDC)

vince and

B

e

d

b

R

T

b

S

p

2.4 UN

SCG

engag

of The

and r

million

renam

pulp,

Key In

Capac

Main

B) Environm

One of

environment c

date, efficient

business has

Reuse/Recyc

Technology w

business on s

Moreove

Standard as

party institutio

Undelivered PNone

Paper

SCG Pape

ge in manufac

e Siam Pulp a

raised its cap

n. The Comp

med to SCG P

The SCG

paper, and c

nformation

city

Products

Part 1 Bus

The Siam

mental Impact

the SCG’s P

conservation.

t, energy savi

s implemented

le, and Repl

which are one

sustainability c

er, the busine

well as exam

ons which are

Projects on H

er PLC. was e

cturing and sa

and Paper C

pital to Baht 1

pany was de

Paper PLC. in

Paper PLC.

ontainers. Th

Packag

♦ Pac

♦ Cor

Fibrous

♦ Pul

♦ Prin

Packag

♦ siness Operat

Cement Publi

Philosophies

Therefore, th

ng and enviro

d the Environ

enish) and e

e of the busin

concept.

ess has appli

mined the Env

internationall

igh-Valued Pu

established in

ale of pulp. Its

o., Ltd. The C

1,400 million.

listed from th

April 2007.

and subsidia

eir main busin

ging Chain

ckaging Pape

rrugated Cont

Chain

p

nting and Writ

ging Chain

Kraft paper,

tion / 2. Opera

ic Company L

is “Concern

he business

onmental frien

nmental Mana

eco-efficiency

ness’ commit

ed and certif

vironmental P

ly accredited

urchase Agre

n 1980 by Th

s initial registe

Company was

Currently, th

he Stock Exc

aries is the co

ness chain ar

er

tainers

ting paper

, duplex board

ation of Key B

Limited

for Social

has chosen “

ndly technolo

agement Bes

concepts to

ment to prote

fied with ISO

Performance A

.

eements

he Siam Ceme

ered capital w

s later conve

he registered

change of Th

ountry’s only

e Packaging

d, corrugated

Business Units

Responsibility

“Clean Techn

gy – in the pr

t Practices b

ogether with B

ect the enviro

14001 Enviro

Assessment P

ent PLC. and

was Baht 100

rted into a pu

capital is am

ailand in 200

integrated pr

chain and Fib

1,956,000 to

1,013,000 to

470,000 to

570,000 to

d containers

s

y” which inc

nology” which

roduction pro

by using 3Rs

Best Availab

onment and o

onmental Ma

Program (EPA

Siam Kraft C

million under

ublic compan

mounted to B

03 and was

roducer of hig

brous chain.

ons per year

ons per year

ons per year

ons per year

32

ludes the

h is up-to-

ocess. The

(Reduce,

le Control

operate its

nagement

AP) by 3rd

Co., Ltd to

the name

ny in 1994

Baht 1,563

thereafter

gh quality

Key In

Brand

Streng

MajorPolicy

BusinDevel

nformation

d

gths

r Business y

ess lopment Polic

Part 1 Bus

The Siam

Fibrous

♦ ♦ Pac

♦ Prin

• • •

♦ On

♦ Wo

♦ Co

♦ Stro

wo

♦ Effi

♦ Tot

♦ Ma

♦ Asp

♦ Foc

sha

♦ Co

cy ♦ Imp

♦ Dev

♦ See

prio

♦ Dev

ma

siness Operat

Cement Publi

s Chain

Pulp and pr

ckaging pape

nting and writ

Idea green, Id

PRO Series –

Green Series

ly integrated

orld-class qua

ntinual offerin

ong domestic

rldwide expor

cient product

tal Quality Ma

intain domest

piring for regi

cus on sust

areholders an

nserve the en

prove existing

velop innovat

ek opportuniti

ority.

velop knowle

intain compet

tion / 2. Opera

ic Company L

rinting & writin

er & container

ting paper

dea work, Ide

– Offset PRO N

– Green Offs

producer of p

ality.

ng innovative

c distribution

rts.

tion cost cont

anagement – T

tic market lea

onal leadersh

tainable grow

d stakeholde

nvironment.

g machines fo

tive products

ies in expand

edge, skill a

titive advanta

ation of Key B

Limited

ng paper

r: Green Carto

ea max, Supre

New, Matt PRO

set, Green Ca

pulp, paper, a

products and

channel and

trol.

TQM.

adership.

hip in paper a

wth strategy

rs.

or higher effici

to better serv

ing its busine

nd experienc

age and beco

Business Units

on

eme, Ultimate

O, Card PRO,

rd, Green Mat

and containers

services.

d marketing s

nd packaging

and provid

ency.

e customers’

ess with Merge

ce for all lev

me a regiona

s

, Note PRO, T

tt, Green Form

s in Thailand.

system, as w

g business.

ding good r

needs

er and Acquis

vels of emp

l leader.

33

Text PRO

m

well as the

returns to

sition as a

ployees to

SCG

2.1 P

busin

to ma

positio

relativ

chain

2.2 M

A

Paper

Product or Ser

SCG Pape

ess is the onl

anufacture of

on allows it t

vely less vulne

s as follows:

• Packa

Th

exten

variou

carton

• Fibrou

T

speci

variou

textbo

Speci

carbo

paper

In

fibersMarket and Co

A) Policy and - Policy1) Ma

SC

cus

com

has

the

and

env

Part 1 Bus

The Siam

rvice Features

er is the coun

y integrated p

printing and w

to appropriate

erable to exte

aging Chain

e major prod

sible sacks, k

us types of

n, paper palle

us Chain

The main prod

alty paper a

us paper grad

ooks and pho

ialty paper w

onless paper

r.

n addition, eu

s and melaminompetition

Market Featuy and Market rketing strateG Paper foc

stomers’ nee

mpetitiveness

s developed

same streng

d environme

vironmentally-

siness Operat

Cement Publi

s

ntry’s leading

producer in Th

writing paper

ely allocate t

ernal changes

ucts compris

kraft bags, co

corrugated c

et, merchandis

ducts are euc

nd food pac

des e.g. Print

otocopy pape

which is used

and label pa

ucalyptus pulp

ne compound

ures of Main PFeatures gy

cuses on con

eds. “Innova

in high com

new packagin

th comparing

ental resourc

-friendly prod

tion / 2. Opera

ic Company L

manufacture

hailand with p

r, packaging p

he productio

s, and add va

e of kraft pap

ore paper, gy

containers p

sing display,

calyptus pulp

kaging pape

ting & Writing

er, Kraft pape

for industrial

aper, and a

p is also used

d resin.

Products and

ntinuous dev

ation” is the

mpetitive mark

ng paper cal

g with the rela

ces. SCG P

ucts. Our pro

ation of Key B

Limited

r of pulp, pap

production pro

paper, and co

n capacity, e

alue to its prod

per for the ma

ypsum linerbo

ackaging, of

and design s

p and printing

er. Eucalyptus

paper which

er which is u

applications

also Food pa

d as raw mate

Services

velopment of

e key strate

ket. For Pack

led “Hi-Streng

ative basis we

Paper contin

oducts are aw

Business Units

per, and corru

ocess starting

orrugated con

efficiently con

ducts. There a

anufacture of

oard and coat

ffset laminate

olution center

g & writing p

s pulp is use

h is used for m

sed for pack

such as glas

ckaging pap

erial for other

products an

egy to susta

aging Paper

gth” paper, lo

ight paper. It

nuously imp

warded for pro

s

ugated conta

g from pulp pr

ntainers. Bein

ntrol the costs

are two major

corrugated c

ated duplex b

ed packaging

r.

paper. We als

ed as raw m

magazines, n

kaging and c

ss interleavin

per such as c

applications e

nd services

ainably incre

Business, SC

ower basis w

t saves produ

proves and

omotion of raw

34

iners. The

reparation

ng in such

s, make it

r business

ontainers,

oard, and

g, folding

so provide

aterial for

otebooks,

containers,

g paper ,

cup stock

e.g. rayon

to satisfy

ease our

CG Paper

weight with

ction cost

develops

w material

red

to s

with

env

KT,

hig

pro

pro

fore

we

Con

yea

ran

prin

new

req

has

set

exh

acr

pro

app

pul

to p

ma

free

inc

cou

Part 1 Bus

The Siam

duction and re

specific produ

h other prod

vironmentally-

, TA, TR, TI) a

her recycled

oducts are als

oducts are fro

est managem

re certified by

Dedicated t

ntainers) has

ar so as to off

ge of printing

nting, the mai

w printing s

uirements of

s also investe

of integrate

hibition, and o

ross the count

oduct and serv

For Pulp, we

plication, but

p “Dissolving

produce and

nufacture a ra

For Printing

e paper from

reasingly exp

untry.

siness Operat

Cement Publi

euse by the G

ucts which ha

ducts serving

-friendly certif

and corrugati

content comp

so certified b

om environme

ment. For exam

y FSC for their

to providing

continuously

fer a variety o

g expert into

n experience

ystems, the

the custome

d in developm

d design, inc

other printing m

try and in the

vice.

e are continu

also for other

Pulp”. In the

sell dissolvin

ayon fibres an

and Writing P

m our partn

pand sales i

tion / 2. Opera

ic Company L

Green Label,

ave less detri

g the same

fication, calle

ng medium (C

paring with co

by FSC (Fores

entally approp

mple, testliner

r 100% recyc

total packag

y invested in

of products fo

Offset printin

ed printing sy

business h

ers. Moreove

ment of desig

cluding the

materials. Des

region, the c

ously develop

r applications

e third quarter

ng pulp which

nd also in mel

Paper, we imp

ers to satisf

n provincial

ation of Key B

Limited

the national

mental impac

function. Ad

ed ‘SCG eco

CA, CS) were

ompetitors’ in

st Stewardsh

priate, socially

r (TTF, TCF) a

led raw mater

ing solutions

new machin

or the custome

ng and Digita

stem of the b

has achieved

r, Packaging

gner team to

design of log

sign Solution

customers can

ping our pulp

. We succeed

r of 2013, we

h is a raw ma

lamine indust

plemented ou

fy our custo

areas to en

Business Units

environmenta

ct on the envir

dditionally, SC

value’. For e

certified by S

the market. M

ip Council), w

y beneficial an

and corrugatin

rials.

, Packaging

ery and equi

ers. The busi

al printing, as

business. With

d greater ef

Business (C

work proactiv

go, brand, m

together with

n always rely o

p products to

ded in develo

have started

aterial used in

ry.

tsourcing stra

omer require

hance the co

s

al certification

ronment in co

CG also has

example, test

SCG eco valu

Moreover, SC

which ensure

nd economic

ng medium (C

Business (C

ipment in the

ness has exp

side from Fle

h the inclusio

fficiency to

Corrugated C

vely and to ha

merchandising

the facilities

on the premiu

use not only

oping high val

commercial o

n the textile in

ategy for coat

ements. More

ompetitivenes

35

n awarded

omparison

s its own

tliner (KA,

ue for their

G Paper’s

s that our

ally viable

CAF, CSF)

Corrugated

e previous

panded its

exography

n of these

serve all

ontainers)

ave a skill

g display,

scattering

um quality

for paper

ue added

operations

ndustry to

ted wood-

eover, we

ss across

as

the

Cur

Pra

afte

201

pac

to

mac

use

Pap

“SC

inje

rem

NP

Fib

pro

Hig

bus

2) CusPac

Pac

Cha

Pro

boa

cou

ChPac

Part 1 Bus

The Siam

Besides prin

well. The are

high potent

rrently, we ha

actices for Fle

er we receive

12. We are t

ckaging in Tha

The progres

commercial

chine will be

ed as packag

Another key

per Industries

CG Paper”) to

ection for an in

maining stakes

I and SCG p

rous Chain, in

oduction effic

gh Value Add

siness leader.

stomer Featuckaging Chain

ckaging Pape

annel: Direct

oducts include

ard, paper ba

untries such

ina etc. ckaging

siness Operat

Cement Publi

nting and writi

as of busines

tial growth in

ave received

exible and Fib

d the Certific

the first man

ailand.

ss of the joint v

high value

started up in

ing for food, m

y milestone is

s Company Li

o form a strat

nitial stake of

s will be incre

paper would c

n addition, wo

iency, new p

ded products

res and Chann

er

tly sold to a

e paper rolls

ags, ream pap

as Malaysia,

tion / 2. Opera

ic Company L

ing paper, we

ss that we ex

n both dome

d the Certifica

bre-Base Pac

cate of GMP F

nufacturer to

venture proje

added produ

n the first qua

medical indus

s the signing

mited (or “NP

tegic joint ve

22% in SCG

eased up to a

collaboratively

ould create an

product deve

and service

nnel of Distrib

affiliated firms

for convertin

per, and sma

, Indonesia,

ation of Key B

Limited

e expand our

xpand are “Fo

estic and ov

ate of GMP

ckaging for Fo

FIBRE-BASE f

obtain this t

ct between S

uct 43,000 t

arter of 2014.

stry (Hygienic

g of Joint Ve

PI”), and SCG

nture. This jo

Paper’s Fibro

30% stake w

y enhance th

n effective sy

elopment, ma

es (HVA) and

ution

s under SCG

g plants and

ll rolls. The pr

Singapore, V

Business Units

business to n

ood Packagin

erseas food

FIBER-BASE

ood) for lamin

for paper pro

type of GMP

CG Paper an

tons/year “Ma

The Machine

industry) and

enture Agreem

G Paper Public

oint venture w

ous Chain with

ithin 2016. Th

he competitive

nergistic platf

rketing and

d becoming a

G Paper and

converted p

roducts are a

Vietnam, Cam

s

non-printing a

ng Paper ” to

market in th

(Good Man

nated paper

oduction proc

P certification

d Nippon Pap

achine-Glaze

e-Glazed pap

d furniture ind

ment betwee

c Company L

will involve NP

hin June 2014

his partnership

eness of SCG

form that enh

sales networ

an ASEAN su

d external c

products such

also exported

mbodia, Myan

36

nd writing

response

he future.

ufacturing

for foods,

cess since

n for food

per Group

ed paper”

per will be

ustry.

en Nippon

Limited (or

PI’s equity

4 while the

p between

G Paper’s

ances the

rk, toward

ustainable

ustomers.

h as sheet

to several

nmar and

Cha

with

loc

wid

lam

soluFib

PulCha

throPrinCha

prin

are

the NonpapCha

exp

- Indust

1) Pac

from

to t

bev

pro

con

ban

with

by

Elec

imp

Part 1 Bus

The Siam

annel: Direct

h the custom

ated in ASEA

de range of p

minated packa

ution center. rous Chain

lp annel: Direct

ough agents fnting & Writinannel: 75 per

nting house, i

sold to expo

Middle East Cn-Printing & Wper annel: Direc

port markets.

try, Competitio

ckaging Chain

In 2013, dem

m domestic co

the growth ra

verage, have

oduction cap

nsumption. Fu

n on import f

h decreasing

Early Mortalit

ctrical applia

porting countr

siness Operat

Cement Publi

sold by sale

mers, Packagi

AN, including

products inclu

aging, folding

tly sold to affi

for export marg Paper cent of total s

ndustry uses,

rt markets; Vie

Countries, etcWriting Paper

ctly sold to in

on, and Trend

n

mand for pac

onsumption.

ate of GDP. I

a significant e

acity and c

urthermore, fro

rom Thailand

corrugated c

ty Syndrome:

nces and ele

ries such as t

tion / 2. Opera

ic Company L

es representa

ng Business

g Thailand, V

ude various ty

g carton, pa

liates in the P

rkets.

sales served

, converter, m

etnam, Austra

c. r such as sp

ndustrial cust

d

ckaging pape

Growth rate o

nstant food a

expansion, by

continuously

ozen chicken

, resulting in

containers de

EMS), havin

ectronic relate

the United Sta

ation of Key B

Limited

atives and ac

(Corrugated

Vietnam, Indo

ypes of corru

aper pallet, m

Paper Busines

domestic ma

modern trade

alia, Malaysia

ecialty paper

omers or con

r in Thailand

of corrugated

and beverage

y which many

implemented

export has in

a continuous

emand y-o-y a

g 50 percent

ed industry al

ates, Europe,

Business Units

ccount execut

Containers)

nesia, Singap

ugated contai

merchandising

ss and extern

rket by differe

and stationer

, Japan, othe

for industrial

nvertors and

increased by

containers de

e industries,

manufacture

marketing

ncreased afte

s growth of th

are frozen sh

decline in p

so dropped,

and Japan. I

s

tives that wo

has totally 19

pore, and Ma

ners packag

g display, an

nal customers

ent channels,

ries stores, an

r ASEAN cou

l uses and fo

sold through

y 4 % y-o-y co

emand in 201

especially no

ers have incre

activities to

er many coun

his industry.

rimp industry

productivity. D

comply with

In addition, c

37

rk closely

9 facilities

alaysia. A

ing, offset

nd design

s and sold

including

nd the rest

ntries and

ood packing

h agents for

ontributed

13 is close

on-alcohol

ased their

stimulate

tries lifted

Industries

y (affected

Demand in

the major

hanges in

2.3 PA

pro

the

2) Fib

ave

y. F

pric

pul

in th

from

seg

ma

inte

ove

roduct or SerA) Product Pr

- Raw M1) Pac

PacRaw

unb

Sou

•

•

•

•

Ob

Un

Part 1 Bus

The Siam

oduction techn

re were a num

rous Chain

In 2013, wo

erage price of

For the first ha

ce continuous

p price decre

he third and f

For Printing

m previous ye

gment and eff

rketing activi

ense, showing

erseas.

rvice Procuremrocurement FeMaterial and Sckaging Chainckaging Papew Material Ty

bleached long

urce:

Wastepape

Bleached a

percent fro

Bleached a

Main chem

and import

stacles: Blea

bleached lon

siness Operat

Cement Publi

nology also af

mber of comp

orld bleached

f bleached lon

alf of the year

sly increased

eased due to

ourth quarter

and Writing

ear. The main

fect from poli

ties and adv

g by 20 perce

ment eature Suppliers n er pe: Wastepap

g fibre pulp, a

er: 75 percent

and unbleach

m import.

and unbleach

micals such as

.

ached and

g fiber pulp

tion / 2. Opera

ic Company L

ffect form and

petitors in the

d chemical pu

ng fiber pulp

r bleached lon

however, for

the planned

of 2013.

Paper in Tha

n reasons we

itical uncertai

vertising med

ent growth of

per, bleached

and chemicals

t from local ve

hed short fib

ed long fibre

s starch, sizin

unbleached

is entirely im

ation of Key B

Limited

d size of pack

market, pricin

ulp (BCP) de

and bleached

ng fiber pulp

the second h

start-up of ne

ailand, deman

ere from decr

nty which res

dia budget.

f import pape

d and unbleac

s.

endors and 25

re pulp: 90 p

pulp: All from

ng agent, co

short fibre

mported from

Business Units

aging inevitab

ng strategy wa

emand increa

d short fiber p

price and ble

half of the yea

ew short fiber

nd in 2013 de

easing paper

sulted in the

The market c

er, due to the

ched short fib

5 percent from

percent from

m import.

lor, and other

pulps are p

a few suppl

s

bly. Due to th

as widely use

ased by 2% y

pulp increase

eached short

ar, bleached s

pulp capacit

ecreased by

r demand in

reduction of

competition w

surplus capa

bre pulp, blea

m import.

local vendor

rs: From loca

procured dom

iers within 30

38

e fact that

d.

y-o-y. The

ed 4% y-o-

fiber pulp

short fiber

ty in Brazil

3 percent

magazine

promotion

was more

acity from

ached and

rs and 10

al vendors

mestically.

0-45 days

B

lea

was

PacRaw

Sou

Ob

Sel

2) FibPulRaw

Sou

farm

PrinindRaw

Sou

Obs

B) Environme

In 20

line with it

include:

Green

products

certified p

linerboard

understan

Part 1 Bus

The Siam

d-time. The d

stepaper, whi

ckaging w Material Typ

urce: From Sia

stacles: No p

ling price is s

rous Chain lp w Material Ty

urce: Eucalyp

ming.

nting & Writiustrial uses aw Material Typ

urce:

• Bleached

• Bleached

• Wastepap

• Chemicals

and impor

stacles: Bleac

ental Impact

13, SCG Pap

ts 3Greens co

n Product: S

and services

products inclu

d. SCG Paper

nd SCG eco v

siness Operat

Cement Publi

domestic supp

ich has highe

pe: Kraft pap

am Kraft Indu

problem on raw

set by referring

pe: Eucalyptu

ptus logs and

ng Paper anand food packpe: Bleached

long fiber pu

short fiber pu

per from local

s, synthetic la

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Part 1 Business Operation / 3. Risk Management The Siam Cement Public Company Limited 41

3. Risk Management

Risk Management At SCG, risk management is a key process contributing to the attainment of the Group’s objectives

and goals, leading to value added for the Group, shareholders, and stakeholders while contributing to the SCG’s sustainable growth. SCG Risk Management Framework

To ensure timely response to rapidly changing business environment, address potential problematic situations, and exploit risks to identify new business opportunities domestically and overseas, SCG this year revamped its Enterprise Risk Management Framework to be progressively in line with international standards, adding value throughout the value chain and creating a pervasive risk culture throughout the Company. The SCG Risk Management Framework consists of :

1. Strategy Establishment SCG establishes explicit objectives and risk appetite in managing risk in order to ensure

consistent risk management practices across the organization.

2. SCG Risk Management Structure and Responsibilities Continuously committed to developing and improving risk management structure and

capability, this year SCG has established the SCG Risk Management Committee chaired by the SCG President and CEO. The Committee oversees, supports and monitors risk management in all areas, including compliance. The organization structure of SCG’s risk management is illustrated as follows:


Enterprise Risk Management Organizational Structure

reporting line coordination and information exchange

Audit Committee Board of Directors

SCG Risk Management Committee

SCG President and CEO

Business Unit Risk Management Committee

Business Unit Risk Champions

Business Unit Risk Owners

Risk Management at the Corporate Level

The Committees SCG Sustainable Development

Committee SCG Crisis Management Committee SCG Financial Committee Commodity Hedging Price Risk

Management Committee Other relevant committees as appointed

by the Management

Corporate Units Corporate Risk Management Unit Corporate Compliance Unit

Corporate Risk Owners Business Continuity Management and IT

Strategy Strategic Planning

Risk Management at the Business Level


The Board of Directors and Audit Committee The Board of Directors lays out risk management policies and oversees risk management process and

practice of both domestic and overseas units. The Audit Committee evaluates the risk management to ensure that it is efficient, effective and compliant with the established guidelines.

SCG Risk Management Committee The SCG Risk Management Committee consists of the President and Vice President of each business

unit. The SCG President and CEO serves as the Committee Chairman. The SCG Risk Management Committee has the following core responsibilities:

1. Improves/determines risk management structure and designated responsible parties for risk management.

2. Considers and approves risk management policies, strategies, framework and plans. 3. Reviews risks and monitors SCG risk profile. 4. Reports risks and risk management to the Audit Committee.

2.1 Risk Management at the Corporate Level Risk management at the corporate level comprises of top executives from all business units who establish directions, policies, goals and strategies for managing risks which have a material and pervasive impact upon SCG’s business operations. In this regard, SCG has set up relevant committees/corporate units to manage specific areas and closely monitor ensuing situations. These include: 2.1.1 The SCG Sustainable Development Committee defines policies and guidelines for

sustainable development in the areas of safety, health, environment, community and social responsibility to be on par with international standards, while setting an example at the national level. The Committee also monitors relevant indicators and risk trends and reports to the SCG Risk Management Committee and the Board of Directors.

2.1.2 The SCG Crisis Management Committee consists of the SCG Management members who are assigned the duty to set policies and strategies and make decisions on how to handle crises that affect, legally and otherwise, business operations and corporate image. The Committee also cooperates with external parties to support handling of these crises and provides updates on such situations to the Board of Directors.

2.1.3 The SCG Financial Committee manages financial risks in the following ways: Establishes policies and guidelines for managing financial and foreign exchange risks

with regard to investment transactions, loans, deposits, and international transactions.


Establishes policies and oversees management of financial derivatives and cash. Monitors financial status, foreign exchange and interest rate trends, and reports such

updates to the SCG Risk Management Committee. 2.1.4 The Commodity Hedging Price Risk Management Committee establishes policies, guidelines

and strategies for managing risks from rising or volatile prices of major raw materials and fuels used in manufacturing processes to manage costs and enhance competitiveness in the global market, and proposes such information to the SCG Risk Management Committee and the Board of Directors.

2.1.5 The Corporate Risk Management Unit communicates risk management policies and strategies established by the SCG Risk Management Committee to all relevant parties. The Unit monitors trends and key situations which may impact SCG’s long term goals in order to establish strategies and countermeasures, tracks and continuously improves SCG’s risk management capabilities, promotes sharing of risk management knowledge, build risk management culture throughout the Group, and reports risk management outcomes to the SCG Risk Management Committee.

2.1.6 The Corporate Compliance Unit develops control, communication and reporting systems and defines roles and responsibilities of compliance functions to ensure effectiveness and appropriateness.

2.1.7 Corporate Risk Owners are central corporate units responsible for managing risks which may have a pervasive impact upon SCG operations or which require specialized expertise; e.g. the Business Continuity Management and IT Strategy Unit (responsible for managing risks resulting in business disruption and IT risks); or the Corporate Communication Office (responsible for managing risks which may affect SCG’s reputation).

2.2 Risk Management at the Business Unit Level

As SCG consists of various business units operating in a diverse range of industries and working environments, the Company has established business unit risk management committees to ensure the efficient risk management of each business unit and its ability to cope with business specific risks in a timely and appropriate manner. Each of these committees comprises executives from all companies within each business unit. Responsible for ensuring systematic risk management, the committees establish risk management structures and strategies, designate Risk Owners to manage risks, oversee and monitor outcomes of risk management, and report such outcomes to the SCG Risk Management Committee. The designated Business Unit Risk Champions communicate risk management policies and strategies set by the Business Unit Risk Management Committee to all relevant parties. The risk champions monitor trends and important situations


which may affect the long-term goals of their business unit in order to establish strategies and countermeasures. The champions also track and continuously improve the risk management capabilities of each business unit, as well as promote the exchange of risk management knowledge and build the culture within that unit.

3. Risk Management Process 3.1 Establishing a Common Language

SCG develops the SCG risk universe which covers all risks potentially impacting the company’s operations. The risk are categorized for easy understanding and practice into eight categories as follows: (1) safety, health and environment risk (2) compliance risk (3) intangible assets risk (4) hazard risk (5) input risk (6) operations risk (7) financial risk and (8) business risk.

3.2 Risk Assessment SCG established common risk metrics to standardize assessment methodology across the organization. Risk Owners use various tools (e.g. statistical methods such as scenario analysis, correlation analysis, and benchmarking) to assess the likelihood, severity, and manageability of risk. The assessment results are then compared with specified risk limits, which are devised in accordance with risk appetite. SCG divides risk limit into two levels, the corporate level and the Business Unit level. If the risk owners find that a residual risk remains higher than the designated risk limit, countermeasures must be clearly stated and reported to the Business Unit Risk Management Committee or the SCG Risk Management Committee, until such risk is at the acceptable level.

3.3 Risk Management Process In order to put the above risk framework into practice, SCG designated three primary approaches to manage risk. These are (1) medium and long-term strategic risk management (2) investment project risk management and (3) operational risk management. These risk management processes are documented in the “SCG Risk Management Manual” which provides guidelines and enhances mutual understanding among all concerned parties.

4. Building a Corporate Risk Culture

SCG recognizes that the risk culture is a critical component of the success of risk management, even with leading risk management tools and standards. If parties within the Company do not share a similar understanding of the risk management framework or its components (such as risk appetite), or possess mindsets which are not in accordance with SCG risk management


guidelines, erroneous decision-making with regard to risk/return tradeoffs can arise. SCG has therefore established guidelines for building a corporate risk culture as follows:

- Develop future policies and a risk management system via collaborative workshops. - Develop joint commitment among key concerned parties via meetings, interviews and

requests for recommendations. - Enable practical application at work by designating a business unit risk champion. - Develop the risk management system which can add value to the business by designating

the Corporate Risk Management Unit to follow-up on progress and continuously improve the system.

- Designate risk management as a component of employee training and development programs.

Key Risks and Management Strategies in Accordance with the Sustainable Development Approach Following risk assessment which took into consideration significant economic forecasts, social trends, environmental trends, as well as the business objectives of the Company, SCG faces eight major types of risks, categorized in the SCG Risk Universe as above table. SCG uses a diverse number of strategies in managing such risks, namely, to retain, exploit, transfer, reduce, and avoid as deemed appropriate. Details of such key risks and management strategies are as follows:

Input Risk Fluctuation of fuel and

major raw material prices

Labor shortage and rising

wages

Safety, Health, and Environment Risk Occupational health and

safety

Increasing environmental

conservation trends

Compliance Risk Compliance with

regulations for overseas

operations

Intangible assets Risk Building and managing

brands for overseas

operations

Hazard Risk Political unrest in

Thailand

Natural disasters

Operations Risk Supply chain risk

Human resource management and competency development to support future growth

Financial Risk Fluctuation of foreign exchange rates

Higher leverage resulting from rapid growth of investment projects

Business Risk Disruption of major

government projects in Thailand

Significant events in countries of investment

Industry trends and volatility


1. Safety, health and environment risk consists of significant risks as follows:

1.1 Occupational Health and Safety

SCG conducts its businesses in heavy industries which rely upon both machinery and chemical substances. In addition, the rapid growth of its business, both domestically and overseas, may also contribute to possible accidents or other undesirable health and safety incidents. These, in turn, affect not only the injured party on both physical and mental levels, but may also damage the SCG’s reputation as well as increase its costs.

Preventive Measures and Corrective Actions SCG recognizes that “human resources are a critical factor and a valuable resource” and therefore attributes importance to the health and safety of its employees and business partners. The Group applies proactive measures to prevent such incidents before losses arise. This includes stipulating risk appetite and risk limits at levels indicating that occupational health and safety risks are considered unacceptable at SCG. Safety is also designated as a Key Performance Indicator, which must be monitored and reported to both the Business Unit Management Committee and the SCG Management Committee a monthly basis. In addition, the SCG Safety Framework and Safety Performance Assessment Program were also applied to companies within SCG, both domestically and overseas, to ensure practices generate visible results. SCG carried out the analysis of unsafe working behavior, the survey of safety risk points, danger zones, and the inspection of working conditions and how light, noise, and dust could affect employees’ health. Such information was used to determine preventive measures and mitigation plans as well as to compile a work safety manual and promote the understanding of safety issues to employees, business partners and other relevant third parties. With regard to SCG Chemicals, where sensitivity to safety risks is high, a consultant was contracted to develop a Process Safety Management System in line with internationally accepted standards, and an independent expert on safety was contracted to conduct a third party audit.

1.2 Increasing Environmental Conservation Trends

SCG recognizes that environmental problems are causing widespread impact with regard to climate change, geographical conditions, and the increasing escalation of natural disasters. This has resulted in various environmental conservation movements, which may affect continuity of business operations, the Group’s reputation, or increasing costs due to compensation expenses which may arise. SCG emphasizes an environmentally friendly production process and a control of pollution levels to be within, or lower than, regulatory


limits. SCG launched a number of projects aimed at maintaining its relationship with the community and stakeholders. SCG also assessed various risk factors which form the basis for relevant environmental problems as follows: 1.2.1 Industrial Waste and Pollution

SCG’s core business is a manufacturing business in an industry which is reliant upon

the use of energy, machinery, and chemical substances, all of which could affect

environmental conditions and the community surrounding the plant. This may trigger

environmental activism or opposition from the surrounding community.

Preventive Measures and Corrective Actions SCG’s waste management policy regarding waste from the production process mandates that the emissions of chemical waste, dust and particles, odors and noise pollution are lower than regulatory limits. Continuous enhancement of industrial waste management methods have been carried out by stringently applying the 3Rs principles (Reduce, Reuse/Recycle, Replenish). Focus is given to recycling such waste for reuse within the Group so as to minimize waste to be disposed. For waste requiring external disposal, SCG closely monitors and inspects the disposal process. Certain types of waste, such as used oils, used solution, rubber and plastic scraps which can be used as alternative raw materials and alternative fuels in cement production, are incinerated in the cement kiln at high heat, without causing environmental problems and without affecting cement quality. To this end, SCG Eco Services Ltd., accredited with ISO 14001:2004 standards for the production of alternative fuels from chemicals and recyclable waste, has been contracted. To manage air pollution resulting from dust and particles, chemical substances and odors, SCG uses air pollution treatment equipment, which is highly efficient and includes a Continuous Emission Monitoring System (CEMs). In addition, SCG also has an environmental laboratory to monitor operations and ensure that no adverse environmental impacts occur.

1.2.2 Biodiversity

SCG recognizes that the Company’s operations could impact biodiversity. The

limestone quarry directly impacts biodiversity and the surrounding forest ecosystem in

particular. A part of SCG’s operations is also reliant upon the abundance of natural

resources, such as the paper manufacturing process which depends on eucalyptus

pulp as its primary raw material. The eucalyptus plantation requires soil which contains

sufficient minerals and nutrients.


Preventive Measures and Corrective Actions In managing the limestone quarry to reduce its biodiversity impact, SCG uses a “cradle to grave” procedure which comprises the following: collaborating with external experts to study and formulate a Master Plan aimed at rehabilitating the quarry while preserving the biodiversity of surrounding areas; compliance with preventive measures and mitigation plans regarding environmental impact throughout the mine’s operation; ensuring the allocation of necessary resources in rehabilitating the mine and the conservation of biodiversity throughout the life of the mining operation; consistently communicating with and enhancing the understanding of surrounding communities; sourcing local plant species for the rehabilitation process in order to restore the ecological system back to its original state (as far as possible). In addition, SCG established a center to educate surrounding communities on the diversity of the ecosystem as well as the various ways to carry out rehabilitation of the quarry and to serve as a knowledge center for the community and other interested persons. In order to reduce the impacts arising from the production of paper pulp from eucalyptus trees, SCG conducts its operations based upon the practices for sustainable forest management in line with the standards mandated by the Forest Stewartship Council (FSC) which comprises the following principles: maintaining or enhancing the forest ecosystem; enhancing biodiversity in the conservation areas of the forest; rehabilitating the natural ecology of the forest; conservation of the habitats of rare, threatened or endangered plant and animal species; enhancing the quality of life for local communities; and supporting the optimal use of and adding value to forest products.

1.2.3 Climate Change

Climate change and global warming have had pervasive impacts domestically,

regionally and across the globe, giving rise to risks pertaining to the environment and

natural disasters, which in turn, may have consequences upon SCG’s business

operations: for instance, factors such as temperature change, affecting the survival of

certain living organisms and plants, could impact the biodiversity of the ecosystem.

The melting of polar ice caps caused sea levels to rise, resulting in severe flooding.

Rising temperatures could cause forest fires, droughts, and water shortages in certain

areas. Significant events of global warming today are the result of human behavior, due

to such activities as the burning of fossil fuels and the emission of greenhouse gases.


Preventive Measures and Corrective Actions SCG conducted an assessment of factors contributing to the greenhouse effect and

systematically manages this by: creating a record of greenhouse gases for use as

fundamental data in monitoring greenhouse gas emissions; setting a target goal of a

10% reduction in greenhouse gas emissions from the production process by the year

2020 (using 2007 as the base year); and studying and developing technologies for the

use of alternative fuels, using biomass and waste scraps from domestic households

and factories as alternative fuels in the production process. These projects have

contributed to SCG saving energy costs of 213 Million Baht in 2013. SCG also

continuously improved machinery to utilize energy more efficiently; such as the

recovery of waste heat from the cement production process to generate electricity

using the Waste Heat Power Generator, resulting in the reduction of the purchase of

electricity from external sources by 30%, or an annual savings of 1,500 Million Baht. In

addition, SCG also accelerated the development of environmentally-friendly products

under the SCG eco value label. This will not only assist in enhancing acceptance from

society, but will also create competitiveness over the long term, as consumers and

stakeholders are more likely to choose products and services which are

environmentally-friendly, or have a lower carbon content. In 2013, SCG’s revenue from

sales of products under the SCG eco value label amounted to 114,770 million Baht or

26% of total sales.

1.2.4 Water Resource Risks

Water is a principal natural resource used by SCG in its business operations. SCG

Paper uses water in the planting of eucalyptus trees, boiling chopped wood to produce

paper pulp, rinsing paper pulp, and producing steam power for use in the production

process. SCG Chemicals uses water in the plastic resin cutting process, as well as to

control the pressure and temperature of the machinery used in the production of

plastic resins. SCG uses water from three principal sources: surface water,

groundwater and piped water. Throughout each product’s life cycle, SCG considers

water resource risks comprehensively as follows:


Risks from water shortages and water quality that enters the production process: The increase in world population has consequently increased global demand for water. Meanwhile, the availability of natural water sources is limited, with a tendency towards further reduction due to global warming. This may result in water shortages which could disrupt SCG’s production processes, or increase production costs due to the need to locate alternate sources of water. In addition, human consumption of water causes pollution due to the discharge of waste and chemicals into the water. With regard to water quality risks, if the water used in the production process does not meet requisite standards, not only will production costs increase due to the need to condition the water, product quality will be altered and the efficiency and working life of the machinery will be affected.

Risks arising from volume and quality of water from the production process: Water from the production process which has been treated prior to being released back into public water sources must not cause any environmental impact and be in compliance with regulatory requirements. Otherwise, the environment and ecosystem surrounding the plant could be affected, which could give rise to opposition from the local community, cause additional burdens with regard to compensation costs for damages or expenses for waste disposal in line with regulatory requirements, or damage the Group’s reputation, which cannot be valued in monetary terms.

Preventive Measures and Corrective Actions SCG continues to focus on resolving the problems of water balance. As such, SCG

determined measures to address water resource risks. SCG appointed a water

management working group whose responsibility is to set policies, practice guidelines,

and propose relevant goals and targets to ensure SCG’s water management yields

optimum benefits. The Committee also surveys and monitors water volume from various

sources, such as reservoirs and rivers located in those areas where SCG’s industries

are operating, so as to set crisis levels for water. The Committee also forecasts water

requirements of the manufacturing, agricultural and household sectors, and the

available water supply to determine the difference, in order to identify the possibility of

a water crisis, and prepare relevant measures should such a crisis arise. The

Committee initiates new projects and identifies various tools and instruments to reduce


the use of water in the production process, or to carry out wastewater treatment even

more efficiently. The Committee also remains on alert by monitoring the water situation

via diagnosis equipment which measures water quality continuously. It also establishes

targets similar to those used internationally, and collaborates with local communities

and stakeholders in carrying out projects which raise consciousness about the

importance of water resources.

2. Compliance risk consists of significant risks as follows:

2.1 Compliance with regulations for overseas operations

In line with its vision to become a regional leader, SCG continued to expand its investments overseas. Due to the diverse nature of each country where SCG maintains its investments (including differences in legal and court structure, system, and practices), the Company attributes importance to compliance with relevant laws and regulations overseas. Failure to fully comply with such regulations may lead to losses due to: legal disputes, which in turn could damage the Company’s reputation; the imposition of penalties and fees; or the loss of the opportunity to exercise rights with regard to the law. In addition, if employees do not possess accurate understanding of SCG’s own regulations and business practices, further losses, either financial or those concerning the discredit of SCG’s reputation, could arise.

Preventive Measures and Corrective Actions SCG formulated risk management measures such as studying various good practices to develop the compliance framework in order to ensure systematic governance and management. The Company has assessed risks and will apply the Framework to high risk areas. The Company also stipulates, via its operations manual and the organization of workshops, that SCG overseas companies comply with relevant laws and regulations (both internal and external to the companies). SCG’s internal audit processes are used to oversee compliance with the manual. SCG also closely monitors potential changes with regard to laws and regulations relevant to SCG.

3. Intangible assets risk consists of significant risks as follows:

3.1 Building and managing brands for overseas operations

Reputation risk is a major risk which could have swift and severe repercussions, both in the short run and over the long run, and which cannot be valued in monetary terms. Due to SCG’s 100 years of operation as a reputable organization, stakeholders may have higher expectations of the SCG brand. For SCG’s investment growth overseas, the “One SCG


Brand” strategy has created new opportunities for SCG to increase the sales of its products and services, based on the strength of the original SCG brand. However, this has also increased risk exposure due to the different operating environments, practices and cultures which vary from country to country.

Preventive Measures and Corrective Actions In 2013, SCG appointed a Country Brand Committee for Indonesia and Vietnam. The Committee determines guidelines for brand management in each country so as to be in line with the overall business strategies and brand management of SCG. The Committee oversees the marketing strategies and activities of each country’s business to ensure effective consistency with the SCG brand strategy, and establishes guidelines and strategies for building SCG Brand Engagement with key corporate stakeholders. As part of its standard business operations, SCG regularly conducts a corporate reputation survey, which surveys attitudes and satisfaction of key stakeholders. Survey results are then analyzed with regard to expectations and possible risks to determine future strategies. In addition, SCG consistently hosts crisis communications training and simulation sessions to educate relevant employees, helps to establish a crisis management plan, as well as ensuring employee readiness in handling various crises via drills. SCG also designates a communication procedure to ensure all relevant parties are effectively informed to ensure correct and timely understanding which also contributes to enhancing the corporate reputation. SCG continues to support projects beneficial to the environment and youth development, as well as projects which provide public benefits, both in Thailand and in the countries in which it conducts business.

4. Hazard risk consists of significant risks as follows:

4.1 Political Unrest in Thailand

SCG recognizes that present-day business operations face risks from possible threats as a result of political instability in the country. Such events present direct repercussions on the lives, properties and safety of employees, which inevitably affects business operations.

Preventive Measures and Corrective Actions SCG ensures readiness by continually monitoring and assessing the political situation. Should a potentially violent scenario arise, a Crisis Room will be set up to monitor and closely track developments, transmit critical information on the situation and specify actions to ensure the safety of all concerned, strengthen security measures at SCG business locations, and


formulate a Business Continuity Plan, which incorporates an information technology readiness plan, as well as plans for employees to work at home or at the SCG Backup Office.

4.2 Natural Disasters

Statistics of natural disasters reflect their increasing severity. The flooding in Thailand and Typhoon Haiyan in the Philippines have affected economies on a wide scale, resulting in the loss of lives and property, and possibly causing disruption with regard to the supply chain and business operations.

Preventive Measures and Corrective Actions SCG implements a business continuity management process to companies within SCG, both domestically and overseas and has a plan to roll out this process to all companies. The business continuity management process consists of a value chain analysis to identify critical processes, assesses risks and ranks the importance of each risk identified in the critical process, in order to formulate risk management strategies and compile a Risk Treatment Plan, an Emergency Response Plan and a Business Continuity Plan (BCP). The BCP incorporates an operations plan and designates responsible parties in the event of business disruption during a crisis. Regular drills outlined in the BCP is also mandated. In addition, SCG attributes importance to natural disaster preparedness by monitoring possible natural disasters via reputable sources from both the government and other organizations. The Corporate Business Continuity Management (BCM) and the BCM of each Business Unit monitors, processes, and communicates relevant news and information pertaining to the situation, as well as alerts employees and business groups who may be affected to ensure readiness in handling the situation according to the Business Continuity Plan.

5. Input risk consists of significant risks as follows:

5.1 Fluctuation of Fuel and Major Raw Material Prices

5.1.1 Coal is a primary fuel in the production of cement and paper. This year coal prices

continue to decline slightly from last year. The average Newcastle coal price in 2013

was 85 USD per ton, decreasing by 1 USD per ton, or a decrease of 1% from the

average price in 2012. The price drop was due to the increased supply of coal from

major exporters such as Australia and Indonesia, who continue to increase production.

Although demand for coal faces a slower pace of growth, the risk of higher prices exist

in the long term as supply growth is expected to slacken, while demand is expected to


rise due to Chinese and global economic recovery, all of which will drive production

costs for both cement and paper higher.

Preventive Measures and Corrective Actions SCG formulated several measures in response to such risks, by increasing the use of alternative fuels, such as biomass fuels; exploring new sources of fuels; carrying out long-term coal contracts; hedging prices to reduce price volatilities; purchasing at spot prices when coal prices decline significantly; and investing in energy efficient projects such as the Waste Heat Power Generator, which reuses waste heat from cement production.

5.1.2 Petrochemical major raw materials and products

The average Naphtha prices was 922 USD per ton, decreasing by 3% from the

previous year, due to decreasing crude oil prices stemming from increased supply in

the United States of America. HDPE plastic resin prices and PP plastic resin prices

averaged at 1,488 and 1,519 USD per ton, an increase of 7% and 4% respectively due

to a recovering global economy which resulted in an overall higher margin between the

product and raw material prices when compared to the previous year.

Preventive Measures and Corrective Actions SCG manages raw material costs by hedging purchase prices of Naphtha, and restricting purchase volume to levels suitable to market conditions and product purchase orders. On the sales side, SCG maintains its profit margins between raw material prices and sale prices by accelerating forward selling, driving product sales in overseas markets which offer higher returns, conducting research and developing high value added products and services which meet customer needs, as well as works to retain market share in countries with a strategic customer base.

5.1.3 Wood and Waste Paper

Wood and Waste Paper are principal raw materials in the production process of SCG

paper.

Wood: In 2013, the price of eucalyptus wood, a principal raw material in the production of short fiber composites by SCG Paper, increased by approximately 6% from the year before. This is due to low levels of domestic wood inventory (a consequence of a longer than average rainy season which delayed the harvesting of wood) and the rise of export wood prices, while global short fiber composite prices rose approximately 4% from the previous year.


Preventive Measures and Corrective Actions SCG Paper manages risks related to both the volume and price of wood by using the Geographic Information System (GIS) and the Management Information System (MIS). Both GIS and MIS were applied to monitor forest areas and wood volume. To ensure continuous availability of its raw materials, SCG Paper expanded channels for the purchasing of wood, and promoted the planting of various species of wood in line with the diverse geography of each area. SCG also monitors wood prices domestically and overseas so as to alter wood purchasing strategies and inventory management to ensure competitiveness. Waste Paper: in 2013, the average domestic price of waste paper dropped from 6,500 Baht per ton to 5,700 Baht per ton, compared to the previous year. Sluggish economies both in Thailand and overseas affected the manufacturing sector through a slackening of demand for waste paper in both the domestic and global markets. With regard to the domestic market, the price of SCG Kraft paper decreased at lower levels than the price of waste paper due to sustained sales and marketing activities. SCG Paper managed and monitored such scenarios, enabling it to make profits from the margin between waste paper production costs and the sale price of Kraft paper. However, the company continues to assess possible repercussions as both the volume and price of waste paper are expected to further increase, in light of the improving global economy in 2014.

Preventive Measures and Corrective Actions SCG Paper manages risk by monitoring economic trends, volume and market prices of raw materials, as well as by closely following waste paper purchasing behavior of major producers in the global market, in order to identify opportunities to purchase waste paper at spot price and maintain raw material inventory at appropriate levels. The company also considered selling trends to support decision-making for increasing or reducing the volume of raw materials purchased and storage levels. Furthermore, the company sought additional sources of raw materials by purchasing waste paper directly from users and investing in additional points of purchase and baling stations, both domestically and overseas. SCG Paper also improved the efficiency of the manufacturing process to reduce costs and increased the use of domestic waste paper to reduce dependence on waste paper imports as well as the impacts from the volatility of prices and supply in the global market.


5.1.4 Aggregates

Aggregates consist of rock and sand, which are principal raw materials for the

production of cement and other products manufactured by SCG Cement-Building

Materials. At present, the demand for aggregates has increased each year due to the

expansion of investment projects by both the public and private sectors, resulting in an

upward trend for the prices of aggregates.

Preventive Measures and Corrective Actions SCG Cement-Building Materials manages risks pertaining to the volume and costs of raw materials by seeking additional sources of raw materials and carrying out long-term purchase agreements.

5.2 Labor Shortage and Rising Wages

Prospects for regional economic growth have led to increased demand for labor, which may result in labor shortages and rising wages.

Preventive Measures and Corrective Actions Labor shortages and rising wages have promoted SCG to increase the use of technology. The Group also has a policy to hire subcontractors as appropriate. SCG also collaborated with academic institutions in Thailand and within the ASEAN region, with the objective of developing human resources and shaping them to become part of the future ASEAN. One such program is the “Vocational Students for the Nation Scholarships” project which aims to develop the skills and knowledge vital to building a future profession. Upon graduation, recipients will be able to start their careers flawlessly, whether working in a high demand industry (particularly with regard to the advent of the ASEAN Economic Community, or AEC) or in other sectors. Relationship-building with universities and other institutions in ASEAN was also continuously performed, with university professors invited to SCG Thailand and the recruitment of top university students as employees.

6. Operations risk consists of significant risks as follows:

6.1 Supply Chain Risk

SCG assessed the supply chain risks and specify the risks as follows

Procurement: shortage of raw materials and production equipment due to inadequate

supplies in the market, or dependence on certain suppliers which may lead to increasing

costs.


Production: Inadequate production capacity may cause a loss in sales opportunity or

excessive production capacity incurring unnecessary expenses or inefficient production

process may cause higher production cost and reduce competitive edges

Delivery: The delay or interruption of raw material and product delivery due to natural

disaster, the perils of war and politics, and labor protest may cause disruption to

production continuation or delayed product shipment to customers.

Sales of goods: Inaccurate sales estimate may have an impact on the supply chain

starting with the purchase order of raw materials and inventory management which all

impact cost as well as the deterioration of raw materials or finished goods.

Information technology: damages to the information technology infrastructure or the lack

of systems connectivity cause the lack of crucial information needed for decision making

or misleading information.

Preventive measures and corrective actions SCG considers the risk factors throughout the Supply Chain to begin with the process of procurement of raw materials and materials and equipment used in the production, transportation to sales and delivery of products and services. For the purpose of managing the risk in relation to Supply Chain, SCG uses various instruments and methodology for assessment, for example, the assessment of supply chain disruption risks via the risk methodology of business continuity management, the Spend Analysis that helps categorize key expenses of the production and develop management strategies, identification of key business partners which may impact the business operations by considering economic, social and environmental risks, development of business partners according to sustainable supply chain concept, and the application of Portfolio Diagram in determining the methodology handling key business partners.

6.2 Human Resource Management and Competency Development to Support Future Growth

SCG has dedicated to excellence and in its one hundred years of operation, has always believed in the value of the individual. SCG recognizes the importance of employees as key contributors to the success of the Group. The loss of key personnel may cause the reduction of efficiency and effectiveness in operations, disrupt business continuity, increase costs with regard to the recruitment and training of new employees, while possibly causing the loss of certain knowledge areas. Integration into the AEC in 2015 will facilitate the mobility of skilled labor. This in turn may affect the retention of highly skilled employees, but at the same time


could present the opportunity to attract skilled personnel from overseas due to a wider labor market. Preventive measures and corrective actions

SCG earnestly ensured the readiness of its employees in Thailand to support the future growth of its operations. SCG also developed SCG staff in its companies in ASEAN countries to ensure competency and readiness to advance to management level in those countries. Staff assigned to ASEAN countries are systematically prepared to ensure that they are equipped with relevant knowledge and skills suited to their overseas assignments. Such preparation includes cross-cultural management and communication, managerial skills to ensure preparedness with regard to differing attitudes and work practices, adaptability skills, networking and interpersonal skills, building a global mindset to enhance understanding of conducting business with overseas parties, and change management. In addition, SCG has a plan to establish a Country Business Support Office (CBSO) in strategic countries to promote investment in ASEAN as well as develop the competency of SCG employees within ASEAN. The company has already set up the CBSO in Indonesia.

7. Financial risk consists of significant risks as follows:

7.1 Fluctuation of Foreign Exchange Rates

The fluctuation of foreign exchange rates presents a significant risk for SCG, due to global economic volatility, SCG’s expansion of overseas investments, and the Group’s increasing international trade. Effective management of such risk may contribute to reducing business costs, and avert losses from foreign exchange rates. Preventive measures and corrective actions

SCG appointed the SCG Financial Committee to mandate financial policies for SCG companies and ensure that financial management is consistent across SCG. The policies concern the elimination of foreign exchange risks. The Financial Committee meets monthly to monitor key economic and financial developments, assess risks regarding foreign exchange rates and its effects, as well as to formulate guidelines on carrying out timely and appropriate responses to such risks.

7.2 Higher leverage resulting from Rapid Growth of Investment Projects

In line with SCG’s Business Plan which aims to expand its overseas investments, most notably in the ASEAN region, significant capital expenditure is required. In addition to the cash inflows from operations, additional funding sources may be needed, which could affect the financial position of the Group, or result in higher financial ratios than is deemed acceptable.


Preventive measures and corrective actions

To diversify risk, SCG considers various sources of funding, such as debentures denominated in Thai Baht and in foreign currency, secured loans from banks both in Thailand and overseas. Moreover, SCG has developed a cash pooling system to effectively track and manage excess cash. SCG specified acceptable financial ratios and managed them to be in line with the acceptable level. SCG also carefully considered and systematically ranked large-scale investment projects based on risk and return analysis before making investment decisions.

8. Business risk consists of significant risks as follows:

8.1 Disruption of Major Government Projects in Thailand

Political instability has affected the direction of the Thai economy, trade, investment, and policies for the development of infrastructure. As such, the state mega-project valued at two trillion Baht could be affected, which in turn could slacken growth in the building materials sector. However, SCG views that the construction sector is still driven by regional economic activity, stemming from economic liberalization and the advent of the AEC in 2015, which resulted in lively trade and investment across the region and along the borders, leading to the development of basic infrastructure in neighboring countries, and benefitting private sector investment in infrastructure in nearby countries.

Preventive measures and corrective actions

SCG addresses these risks by distributing product sales to all consumer groups both in the private and public sectors. The disruption of state mega-projects will therefore not have severe repercussions due to demand from other consumer groups, including local state projects which are still carried out continually. SCG also conducts research and analysis to forecast market trends and the potential growth of each client group, so as to retain its client base and seize opportunities which may arise due to changing business conditions.

8.2 Significant Events in Countries of Investment

SCG assesses and monitors the country-specific risks of the countries in which it continuously maintains investments. In this regard, SCG anticipates major trends for the following year, namely: the political situation and changes of state policy in Indonesia such as the reduction of oil price subsidies and the possibility of more stringent regulations with regard to foreign investors and export policies; all of which could impede growth in Indonesia, affect


production costs of SCG, or create complications for SCG investments in the country. The volatility of the Indonesian Rupiah may also affect operating performance. Preventive measures and corrective actions

SCG monitors and assesses country-specific risks with regard to socio-economic aspects, legal system and taxation, infrastructure readiness, political factors and conflict, as well as major global crises. SCG uses a scenario-planning and sensitivity analysis methodology in analyzing and evaluating the repercussions of such incidents to ensure readiness, and formulates appropriate risk management measures, based on cost benefit analysis. Such measures include the plan to establish a Country Business Support Office in each country in order to closely monitor relevant situations. SCG conducts the diligent assessment of risks associated with investment projects prior to making decisions, applies measures to reduce production costs to compensate for variable costs which could increase due to reduction of government subsidies; and increases investment proportion in other countries instead, such as becoming a major shareholder in a ceramics business in Vietnam and building a cement production plant in Myanmar, so as to diversify risk, and optimize benefits resulting from integration of the AEC.

8.3 Industry Trends and Volatility

The petrochemical industry is a cyclical industry with fluctuations of demand and supply, affecting prices of raw materials and plastic resins in the global market. The operating results of SCG Chemicals for the past year reflect such volatility; for instance, during periods of oversupply, profits decreased as a result of reduced plastic resin prices. However, SCG views that the petrochemical industry shows the upward trend in the coming year, due to anticipated global economic recovery, resulting in a higher demand growth than supply growth; while volatility of raw material prices should reduce when compared to the previous year, as a result of easing of tensions in the Middle East, all of which contribute to the company’s assessment that it will receive higher returns overall. With regard to the paper and packaging business, such business continues to be affected by the change in consumer behavior, which increasingly favors the use of electronic media.

Preventive measures and corrective actions SCG manages risks by closely monitoring the market and movements of its competitors. SCG emphasized investment in other businesses, such as integrating the cement, building materials and distribution businesses to create synergy in the building materials business. SCG also accelerated the development and sales of high value-added products, including


the modification of the value chain of the paper and packaging businesses to fibrous chain and packaging chain so as to add value throughout the production cycle, beginning from paper pulp to packaging, in order to diversify risk.

Part 1 Business Operation / 4. Asset Used in Operation The Siam Cement Public Company Limited 63

4. Asset Used in Operation

Total Assets Total assets of The SCG at the end of 2013 were Baht 440,436 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:

2013 2012 SCG Cement-Building Materials 155,458 129,818 Million Baht SCG Chemicals 192,063 176,837 Million Baht SCG Paper 65,169 58,439 Million Baht Other 246,621 215,586 Million Baht

From the consolidated financial statements at the end of 2013, SCG’s property, plant and

equipment have carrying values of Baht 183,589 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.

(in million Baht)

Business Unit Land Building Machine and Others Total Dec 31,13 Dec 31,12 Dec 31,13 Dec 31,12 Dec 31,13 Dec 31,12 Dec 31,13 Dec 31,12

SCG Cement-Building Materials 12,224 10,643 13,913 11,189 48,452 45,766 74,589 67,598 SCG Chemicals 2,884 2,761 5,407 5,574 67,953 68,265 76,244 76,600 SCG Paper 2,014 1,606 4,850 4,418 33,228 29,809 40,092 35,833 Other 431 18 1,332 78 1,296 1,066 3,059 1,162

Consolidated Financial 16,513 14,029 24,436 19,528 142,640 131,735 183,589 165,292


Intangible Assets Patent

At the end of 2013, SCG has 192 valid patents comprising 9 invention patents, 68 petty patents and 115 design patents. The number of patent owned by SCG Cement-Building Materials, SCG Chemicals, SCG Paper and the Siam Cement Plc. are 134 patents, 34 patents, 22 patents, and 2 patents, consecutively. List of important patents owned by Companies and subsidiaries are listed below:

No. Patent Number

Registration Date

Assignee Application Number

Filing Date Patent/Petty Patent Design Patent Expiry Date

The Siam Cement Plc.

1 18017 Jan 11, 2005 The Siam Cement Plc. 9901000939 (049446)

Mar 22, 1999 A process for producing pozzolan from kaolin clay and rice husk ash

- Mar 21, 2019

2 19730 Mar 21, 2006

The Siam Cement Plc. 9901000940 (049447)

Mar 22, 1999 A manufacturing process for cement products and/ or concrete with ceramic coating

- Mar 21, 2019

SCG Chemicals

3 37716 Oct 25, 2013 SCG Chemicals Co., Ltd. 1102000373 Feb 4, 2011 - Container for crops Feb 4, 2021 4 37715 Oct 25, 2013 SCG Chemicals Co., Ltd. 1102000374 Feb 4, 2011 - Container for crops Feb 4, 2021 5 Petty Patent

7762 Jan 16, 2013 SCG Chemicals Co., Ltd. 1103000619 Jun 21, 2011 Container - Jun 21, 2021


No. Patent

Number Registration

Date Assignee Application

Number Filing Date Patent/Petty Patent Design Patent Expiry Date

6 Petty Patent 6747

Dec 9, 2011 SCG Chemicals Co., Ltd. 0903000414 Apr 28, 2009 A fire-resistant polyethylene compound and a composite obtained by forming the fire-resistant polyetylene compound

-

Apr 28, 2019

7 28126 Jun 30, 2010 Thai Polyethylene Co., Ltd. 0101003359 Aug 21, 2001 A catalyst for ethylene polymerization and a process for ethylene polymerization using the catalyst

- Aug 21, 2021

8 23793 Jun 2, 2008 Nawaplastic Industries Co., Ltd. 0402001092 Apr 19, 2004 - Building component Apr 18, 2014



11 24115 Nov 14, 2008 Nawaplastic Industries Co., Ltd. 0402000475 Feb 16, 2004 - Building component Feb 15, 2014

12 24116 Nov 14, 2008 Nawaplastic Industries Co., Ltd. 0402000477 Feb 16, 2004 - Building component Feb 15, 2014

13 24117 Nov 14, 2008 Nawaplastic Industries Co., Ltd. 0402001094 Apr 19, 2004 - Building component Apr 18, 2014

14 24118 Nov 14, 2008 Nawaplastic Industries Co., Ltd. 0402001100 Apr 19, 2004 - Building component Apr 18, 2014



No. Patent

Number Registration


Number Filing Date Patent/Petty

Patent Design Patent Expiry Date


17 25083 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402001089 Apr 19, 2004 - Frame component Apr 18, 2014



20 25086 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402000481 Feb 16, 2004 - Door or window frame component Feb 15, 2014 21 25087 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402000479 Feb 16, 2004 - Sliding door or window frame component Feb 15, 2014

22 25088 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402000478 Feb 16, 2004 - Sliding door or window frame trim component Feb 15, 2014

23 25089 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402001087 Apr 19, 2004 - Door or window frame component Apr 18, 2014

24 25090 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402001088 Apr 19, 2004 - Door or window frame component Apr 18, 2014

25 25091 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402000474 Feb 16, 2004 - Building component Feb 15, 2014

26 25092 Jun 3, 2009 Nawaplastic Industries Co., Ltd. 0402000473 Feb 16, 2004 - Building component Feb 15, 2014



29 25716 Mar 25, 2009 Nawaplastic Industries Co., Ltd. 0502000120 Jan 19, 2005 - Building component Jan 18, 2015




No.

Patent Number

Registration Date



32 28461 Sep 17, 2010 Nawaplastic Industries Co., Ltd. 0502000126 Jan 19, 2005 - Plastic pallet Jan 18, 2015 33 28463 Sep 17, 2010 Nawaplastic Industries Co., Ltd. 0502000125 Jan 19, 2005 - Plastic pallet Jan 18, 2015 34 33133 Jul 6, 2012 Nawaplastic Industries Co., Ltd. 0702000288 Feb 2, 2007 - Casement door or

window frame component

Feb 1, 2017

35 33232 Jul 23, 2012 Nawaplastic Industries Co., Ltd. 0702000285 Feb 2, 2007 - Fixed sash adapter Feb 1, 2017 36 33233 Jul 23, 2012 Nawaplastic Industries Co., Ltd. 0702000287 Feb 2, 2007 - Sliding door or window

frame component Feb 1, 2017

SCG Paper 37 Petty Patent

3439 Aug 21, 2007 SCG Paper Plc. 0603000102 Jan 26, 2006 Splicer for Single Face - Jan 25, 2016

38 Petty Patent 6021

Mar 2, 2011 SCG Paper Plc. 0603001927 Dec 7, 2006 Pressure Testing Equipment - Dec 6, 2014


Jan 13, 2012 SCG Paper Plc. 0903001383 Nov 25, 2009 Mobile Pressure Testing Equipment

- Nov 24, 2015


Jul 20, 2012 SCG Paper Plc. 1003000688 Jul 30, 2010 Pallet - Jul 29, 2016


Apr 29, 2008 Siam Kraft Industry Co., Ltd. 0603000103 Jan 26, 2006 Motion detector for slow speed machine

- Jan 25, 2016


No. Patent

Number Registration




Jun 27, 2008 Siam Kraft Industry Co., Ltd. 0603001675 Oct 17, 2006 Wire twist machine - Oct 16, 2014


Oct 15, 2007 Thai Containers Songkhla (1994) Co., Ltd.

0603000791 Jun 19, 2006 Slitter Knife - Jun 18, 2014


Oct 15, 2007 Thai Containers Group Co., Ltd. 0703000328 Mar 16, 2007 Equipment for keeping and delaminate backing sheet of Black Tape

- Mar 15, 2015


Jan 28, 2009 Thai Containers Group Co., Ltd. 0803000764 Jun 12, 2008 Box Partition - Jun 11, 2014

46 25568 Mar 3, 2009 Thai Containers Group Co., Ltd. 0402002194 Aug 26, 2004 - Paper Pallet Aug 25, 2014

47 29361 Dec 22, 2010 Thai Containers Group Co., Ltd. 0502004374 Dec 6, 2005 - Cushion Dec 5, 2015

48 29362 Dec 22, 2010 Thai Containers Group Co., Ltd. 0502004373 Dec 6, 2005 - Cushion Dec 5, 2015

49 31692 Jan 17, 2012 Thai Containers Group Co., Ltd. 0702002359 Sep 11, 2007 - Cushion Sep 10, 2017

50 34441 Nov 29, 2012 Thai Containers Group Co., Ltd. 0702002360 Sep 11, 2007 - Container Sep 10, 2017


No. Patent Number

Registration Date



51 34990 Feb 5, 2013 Thai Containers Group Co., Ltd. 0702001297 May 16, 2007 - Paper Pallet May 15, 2017



54 35765 May 28, 2013 Thai Containers Group Co., Ltd. 0702002882 Oct 31, 2007 - Carton Blank Oct 30, 2017

55 35766 May 28, 2013 Thai Containers Group Co., Ltd. 0702002883 Oct 31, 2007 - Carton Blank Oct 30, 2017

56 35767 May 28, 2013 Thai Containers Group Co., Ltd. 0702003392 Dec 21, 2007 - Container Blank Dec 20, 2017

57 36314 Jul 26, 2013 Thai Containers Group Co., Ltd. 0702003153 Nov 28, 2007 - Carton Blank Nov 27, 2017

58 36654 Aug 19, 2013 Thai Containers Group Co., Ltd. 0902000310 Feb 11, 2009 - Folding Chair Feb 10, 2019

SCG Cement-Building Materials 59 19083 Nov 7, 2005 The Concrete Products and

Aggregate Co., Ltd. 0201004833 Dec 24, 2002 The rotable concrete or mortar

(mixed cement and sand) mixer system, powered by the engine of the compact truck for installing on the 4 and 6 wheel truck

- Dec 23, 2022


No. Patent Number

Registration Date



60 27668 Mar 17, 2010 The Concrete Products and Aggregate Co., Ltd.

0701002440 May 17, 2007 Air brake system for motor - Mar 17, 2026

61 27669 Mar 17, 2010 The Concrete Products and Aggregate Co., Ltd.

0702001549 Jun 12, 2007 - Hydraulic Concrete Bucket Conveyor

Jun 11, 2017


Mar 2, 2007 SCG Cement Co., Ltd. 0603000610 May 8, 2006 Producing compressive strength cement by using fluorspar

- May 7, 2014


Jun 12, 2007 SCG Cement Co., Ltd. 0603001634 Oct 6, 2006 Mixture substance for mining work

- Oct 5, 2014


Apr 20, 2009 SCG Cement Co., Ltd. 0803001101 Jul 14, 2008 Round column surface polishing Equipment

- Jul 13, 2014


May 23, 2011 SCG Cement Co., Ltd. 0803000151 Jan 21, 2008 Equipment for use in cutting or extraction of construction materials.

- Jan 21, 2014


No. Patent Number

Registration Date




Mar 23, 2012 SCG Cement Co., Ltd. 0903000048 Jan 21, 2008 Method and testing kit for the closed packaging.

- Jan 20, 2017


Mar 23, 2012 SCG Cement Co., Ltd. 0803000884 Jul 14, 2008 Dust-free by water-curtain - Jul 14, 2017

68 20285 Jul 28, 2006 The Siam Refractory Industry Co., Ltd. 0301003134 (084687)

Aug 22, 2003 Procedure for packaging basic brick to improve ventilation system

- Aug 21, 2023

69 25337 Jan 23, 2009 The Siam Refractory Industry Co., Ltd. 0301003133 Aug 22, 2003 Spraying or Mortar Refractory - Aug 21, 2023


Dec 11, 2013 SCI Eco Services Co., Ltd. 1203000839 Aug 10, 2012 Solid fuel product that is made from waste.

- Aug 9, 2018


Oct 4, 2013 SCG Cement Co., Ltd. 1303000220 Mar 1, 2013 Equipment used to test the strength of the concrete blocks.

- Feb 29, 2019

72 29833 Mar 31, 2011 The Siam Fibre-Cement Co., Ltd. 0602001170 Apr 28, 2006 - Roof Tile Apr 27, 2016

73 25463 Mar 19, 2009 SCG Building Materials Co., Ltd. 0502002199 Jun 30, 2005 - Roof Tile Jun 29, 2015

74 25464 Feb 17, 2009 SCG Building Materials Co., Ltd. 0502002200 Jun 30, 2005 - Round Ridge Jun 29, 2015


No. Patent Number

Registration Date



75 26085 Jun 5, 2009 SCG Building Materials Co., Ltd. 0402002256 Sep 2, 2004 - Side Ridge Sep 1, 2014

76 26086 Jun 5, 2009 SCG Building Materials Co., Ltd. 0402002255 Sep 2, 2004 - Beginning Ridge Sep 1, 2014

77 26361 Aug 5, 2009 SCG Building Materials Co., Ltd. 0402000467 Feb 13, 2004 - Hook for tiles Feb 12, 2014

78 28232 Jul 16, 2010 SCG Building Materials Co., Ltd. 0502002019 Jun 17, 2005 - Roof Tile Jun 16, 2015



81 28235 Jul 16, 2010 SCG Building Materials Co., Ltd. 0602002130 Jul 25, 2006 - Rood Ridge Jul 24, 2016



84 28294 Jul 23, 2010 SCG Building Materials Co., Ltd. 0602002132 Jul 25, 2006 - Roof Tile Jul 24, 2016


86 29607 Feb 16, 2011 SCG Building Materials Co., Ltd. 0602003695 Dec 27, 2006 - Corrugate roof tile Dec 26, 2016 87 29693 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003696 Dec 27, 2006 - Flat roof tile Dec 26, 2016 88 29694 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003697 Dec 27, 2006 - Flat roof tile Dec 26, 2016


No. Patent Number

Registration Date



89 29695 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003698 Dec 27, 2006 - Flat roof tile Dec 26, 2016

90 29696 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003699 Dec 27, 2006 - Flat roof tile Dec 26, 2016

91 29697 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003705 Dec 27, 2006 - Fascia Bracket Dec 26, 2016

92 29698 Mar 7, 2011 SCG Building Materials Co., Ltd. 0602003706 Dec 27, 2006 - Fascia Bracket Dec 26, 2016

93 29819 Mar 31, 2011 SCG Building Materials Co., Ltd. 0602003700 Dec 27, 2006 - First row roof tile Dec 26, 2016

94 30006 May 12, 2011 SCG Building Materials Co., Ltd. 0602002134 Jul 25, 2006 - Round Ridge Jul 24, 2016

95 30023 May 23, 2011 SCG Building Materials Co., Ltd. 0602003702 Dec 27, 2006 - Fascia Bracket Dec 26, 2016

96 30582 Sep 6, 2011 SCG Building Materials Co., Ltd. 0502000449 Feb 18, 2005 - Roof mounting mean Feb 17, 2015

97 30583 Sep 6, 2011 SCG Building Materials Co., Ltd. 0502000452 Feb 18, 2005 - Roof mounting mean Feb 17, 2015

98 30584 Sep 6, 2011 SCG Building Materials Co., Ltd. 0402002861 Oct 21, 2004 - Ventilated chimney Oct 20, 2014

99 30821 Sep 27, 2011 SCG Building Materials Co., Ltd. 0502000216 Feb 1, 2005 - Translucent Flat Tile Jan 31, 2015


Mar 5, 2010 SCG Building Materials Co., Ltd. 0803000408 Mar 12, 2008 Conveyer machine - Mar 11, 2014


May 6, 2010 SCG Building Materials Co., Ltd. 0803000800 Jun 20, 2008 Conveyer machine - Jun 19, 2014


No. Patent Number

Registration Date




Jul 16, 2010 SCG Building Materials Co., Ltd. 0603001665 Oct 13, 2006 Conveyer machine - Oct 12, 2014


Sep 3, 2010 SCG Building Materials Co., Ltd. 0803000922 Jul 25, 2008 Method for installing roof insulation - Jul 24, 2014


Jan 11, 2011 SCG Building Materials Co., Ltd. 1003000350 Apr 26, 2010 Ventilated cabinet - Apr 25, 2016


Mar 25, 2011 SCG Building Materials Co., Ltd. 0903000394 Apr 24, 2009 Connector for waste water in water closet

- Apr 23, 2015


May 12, 2011 SCG Building Materials Co., Ltd. 1003000629 Jul 16, 2010 Isostatic punch - Jul 15, 2016


Jun 24, 2011 SCG Building Materials Co., Ltd. 1103000369 Apr 12, 2011 Apparatus for roof attachment - Apr 11, 2017


Aug 1, 2011 SCG Building Materials Co., Ltd. 0803000801 Jun 20, 2008 Mould for ceramic tile - Jun 19, 2014


Aug 11, 2011 SCG Building Materials Co., Ltd. 1103000368 Apr 12, 2011 Cementitious garden floor - Apr 11, 2017


No. Patent Number

Registration Date




Sep 26, 2011 SCG Building Materials Co., Ltd. 0703000485 Apr 27, 2007 Method for bathroom renovation without damage existing structure

- Apr 26, 2015


Sep 26, 2011 SCG Building Materials Co., Ltd. 0603000569 Apr 28, 2006 Rainbow glass tile and process thereof

- Apr 27, 2014


Oct 5, 2011 SCG Building Materials Co., Ltd. 0803000600 Apr 29, 2008 Surface Covering - Apr 28, 2014

113 China Patent

ZL200710305114.7

Aug 17, 2011 SCG Building Materials Co., Ltd. 200710305114.7

Sep 20, 2007 Apparatus and Method for Forming a Pattern in Ceramic Tile or Slab with Prescribed Thicknes

- Sep 19, 2027


Apr 18, 2008 Siam Fiber Glass Co., Ltd. 0603001313 Sep 14, 2006 Ceiling and wall board for heat insulation and sound absorption

- Sep 13, 2014


Apr 18, 2008 Siam Fiber Glass Co., Ltd. 0603001315 Sep 14, 2006 Ceiling and wall board, made from fiberglass, with groove or tapered edge for heat insulation and sound absorption

- Sep 13, 2014


No. Patent

Number Registration




Apr 18, 2008 Siam Fiber Glass Co., Ltd. 0603001314 Sep 14, 2006 Heat insulation for ceiling - Sep 13, 2014

117 30040 May 25, 2011 Siam CPAC Block Co., Ltd. 0602000284 Feb 2, 2006 - Construction Materials Feb 1, 2016


Aug 9, 2005 Saraburirat Co., Ltd. 0403000183 Feb 23, 2004 Polyurethane Mould - Feb 22, 2014


Jul 7, 2006 Thai Ceramic Co., Ltd. 0403000298 Mar 18, 2004 Production of glass tiles - Mar 17, 2014


Aug 9, 2006 Thai Ceramic Co., Ltd. 0403000710 Jul 7, 2004 Ceramic Cutting Machine - Jul 6, 2014


Aug 9, 2006 Thai Ceramic Co., Ltd. 0403000391 Apr 5, 2004 Gold or platinum glass tiles and production process

- Apr 4, 2014


Aug 9, 2006 Thai Ceramic Co., Ltd. 0403000390 Apr 5, 2004 The production of luminous glass tile

- Apr 4, 2014


No. Patent Number Registration Date




Dec 26, 2006 Thai Ceramic Co., Ltd. 0403000885 Aug 20, 2004 Ceramic Color Testing Machine

- Aug 19, 2014


Jun 15, 2007 Thai Ceramic Co., Ltd. 0403000389 Apr 5, 2004 Motion Image on decorative items and production process

- Apr 4, 2014

125 Europe Patent EP1717000B1

Apr 1, 2009 Thai Ceramic Co., Ltd. 05450074.9 Apr 25, 2005 A device for making continuous veining of desired patterns extending through the entire thickness of a product and a process of making thereof

- Apr 24, 2025

126 33522 Aug 17, 2012 SCG Building Materials Co., Ltd. 0702000121 Jan 12, 2007 - Concrete block dividing unit Jan 11, 2017 127 33521 Aug 17, 2012 SCG Building Materials Co., Ltd. 0702000122 Jan 12, 2007 - Floor tile Jan 11, 2017 128 33520 Aug 17, 2012 SCG Building Materials Co., Ltd. 0702000123 Jan 12, 2007 - Concrete block dividing unit Jan 11, 2017 129 33217 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702000251 Jan 31, 2007 - Curb Jan 30, 2017

130 33222 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702001033 Apr 10, 2007 - Roof tile Apr 9, 2017


No. Patent Number

Registration Date



131 33745 Sep 11, 2012 SCG Building Materials Co., Ltd. 0702001034 Apr 10, 2007 - Roof tile Apr 9, 2017

132 32920 Jun 22, 2012 SCG Building Materials Co., Ltd. 0702001035 Apr 10, 2007 - Roof tile Apr 9, 2017

133 33220 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702002409 Sep 13, 2007 - Fence Sep 12, 2017

134 33219 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702002410 Sep 13, 2007 - Fence Sep 12, 2017

135 33218 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702002417 Sep 13, 2007 - Construction material Sep 12, 2017

136 32919 Jun 20, 2012 SCG Building Materials Co., Ltd. 0702002667 Oct 5, 2007 - Roof tile Oct 4, 2017

137 33221 Jul 20, 2012 SCG Building Materials Co., Ltd. 0702002668 Oct 5, 2007 - Roof tile Oct 4, 2017

138 32678 May 16, 2012 SCG Building Materials Co., Ltd. 0702002967 Nov 7, 2007 - Construction material Nov 6, 2017

139 33744 Sep 11, 2012 SCG Building Materials Co., Ltd. 0802000804 Mar 12, 2008 - Construction Material Mar 11, 2018

140 32764 Jun 1, 2012 SCG Building Materials Co., Ltd. 0802003120 Oct 17, 2008 - Growing unit Oct 16, 2018


Oct 5, 2011 SCG Building Materials Co., Ltd. 0803000600 Apr 29, 2008 Wall block - Apr 28, 2014


Oct 12, 2012 SCG Building Materials Co., Ltd. 1003001095 Oct 29, 2010 Vertical green panel - Oct 28, 2016


No. Patent Number

Registration Date




Apr 12, 2012 SCG Building Materials Co., Ltd. 1003001134 Nov 2, 2010 Glass mosaic - Nov 1, 2016


Jan 26, 2012 SCG Building Materials Co., Ltd. 1103000083 Jan 28, 2011 ALC counter - Jan 27, 2017


Jan 26, 2012 SCG Building Materials Co., Ltd. 1103000303 Mar 25, 2011 Screen wall system - Mar 24, 2017


Nov 16, 2012 Cementhai Home Service Co. 1203000798 Jul 31, 2012 High-level display unit - Jul 30, 2018


Dec 4, 2012 Cementhai Home Service Co. 1203000799 Jul 31, 2012 Lifting device - Jul 30, 2018

148 34903 Jan 28, 2013 SCG Building Materials Co., Ltd. 0802000825 Mar 13, 2008 - Washbasin Mar 12, 2018 149 34975 Feb 4, 2013 SCG Building Materials Co., Ltd. 0702002966 Nov 7, 2007 - Ridge Nov 6, 2017 150 35905 Jun 14, 2013 SCG Building Materials Co., Ltd. 0702002411 Sep 13, 2007 - Fence Sep 12, 2017

151 35906 Jun 14, 2013 SCG Building Materials Co., Ltd. 0702002413 Sep 13, 2007 - Fence Sep 12, 2017

152 35904 Jun 14, 2013 SCG Building Materials Co., Ltd. 0802000826 Mar 13, 2008 - Roof tile Mar 12, 2018

153 35907 Jun 14, 2013 SCG Building Materials Co., Ltd. 0802001448 Apr 25, 2008 - Tile Apr 24, 2018


No. Patent Number

Registration Date



154 35919 Jun 18, 2013 SCG Building Materials Co., Ltd. 0702002414 Sep 13, 2007 - Fence Sep 12, 2017 155 35921 Jun 18, 2013 SCG Building Materials Co., Ltd. 0802001447 Apr 25, 2008 - Growing unit Apr 24, 2018 156 35920 Jun 18, 2013 SCG Building Materials Co., Ltd. 0802001449 Apr 25, 2008 - Tile Apr 24, 2018



159 35966 Jun 25, 2013 SCG Building Materials Co., Ltd. 0802000805 Mar 12, 2008 - Block Mar 11, 2018

160 35970 Jun 25, 2013 SCG Building Materials Co., Ltd. 0802000823 Mar 13, 2008 - Bidet Mar 12, 2018

161 35971 Jun 25, 2013 SCG Building Materials Co., Ltd. 0802000824 Mar 13, 2008 - Sanitary ware Mar 12, 2018

162 38303 Nov 29, 2013 SCG Building Materials Co., Ltd. 0802000827 Mar 13, 2008 - Wall tile Mar 12, 2018

163 36132 Jul 15, 2013 SCG Building Materials Co., Ltd. 0902000057 Jan 16, 2009 - Roof tile Jan 15, 2019

164 36133 Jul 15, 2013 SCG Building Materials Co., Ltd. 0902000506 Feb 25, 2009 - Roof tile Feb 24, 2019


166 36368 Jul 31, 2013 SCG Building Materials Co., Ltd. 0502000451 Feb 18, 2005 - Fixing device Feb 17, 2015

167 36367 Jul 31, 2013 SCG Building Materials Co., Ltd. 0902000056 Jan 16, 2009 - Roof tile Jan 15, 2019


169 36778 Aug 28, 2013 SCG Building Materials Co., Ltd. 0402002257 Sep 2, 2004 - Fixing device Sep 1, 2014

170 36779 Aug 28, 2013 SCG Building Materials Co., Ltd. 0902000164 Jan 28, 2009 - Fixing device Jan 27, 2019


No. Patent Number

Registration Date



171 36780 Aug 28, 2013 SCG Building Materials Co., Ltd. 0902000165 Jan 28, 2009 - Fixing device Jan 27, 2019 172 37016 Sep 16, 2013 SCG Building Materials Co., Ltd. 0502000450 Feb 18, 2005 - Fixing device Feb 17, 2015 173 37017 Sep 16, 2013 SCG Building Materials Co., Ltd. 0502000453 Feb 18, 2005 - Fixing device Feb 17, 2015

174 37456 Oct 9, 2013 SCG Building Materials Co., Ltd. 0502000454 Feb 18, 2005 - Fixing device Feb 17, 2015

175 38253 Nov 28, 2013 SCG Building Materials Co., Ltd. 0402002859 Oct 21, 2004 - Fixing device Oct 20, 2014 176 38254 Nov 28, 2013 SCG Building Materials Co., Ltd. 0902000163 Jan 28, 2009 - Fixing device Jan 27, 2019


Jan 24, 2013 SCG Building Materials Co., Ltd. 1103001300 Dec 6, 2011 Rain filtering device - Dec 5, 2017


Feb 1, 2013 SCG Building Materials Co., Ltd. 1203001319 Nov 16, 2012 Air washing foot valve - Nov 15, 2018


Mar 4, 2013 SCG Building Materials Co., Ltd. 1203000406 Apr 24, 2012 Foundation system - Apr 23, 2018


May 23, 2013 SCG Building Materials Co., Ltd. 0803001305 Oct 31, 2008 Cement for fiber cement board

- Oct 30, 2014


Jul 15, 2013 SCG Building Materials Co., Ltd. 1103001301 Dec 6, 2011 Rain filtering device - Dec 5, 2017


No. Patent Number

Registration Date




Sep 4, 2013 SCG Building Materials Co., Ltd. 0803000588 Apr 25, 2008 Porous block - Apr 24, 2014


Sep 16, 2013 SCG Building Materials Co., Ltd. 1003000717 Aug 6, 2010 Tile reverse device - Aug 5, 2016


Sep 24, 2013 SCG Building Materials Co., Ltd. 0903000393 Apr 24, 2009 Wall installation system - Apr 23, 2015


Sep 24, 2013 SCG Building Materials Co., Ltd. 1303000079 Jan 24, 2013 Heat trapping device - Jan 23, 2019


May 3, 2007 SCG Logistics Management Co.,Ltd. 0603000996 Jul 28, 2006 Attachment Part of Truck for Loading - Jul 27, 2014


Aug 21, 2007 SCG Logistics Management Co.,Ltd. 0603000139 Feb 3, 2006 Level Measurement Equipment of Barge Draft

- Feb 2, 2014


Feb 1, 2008 SCG Logistics Management Co.,Ltd. 0603001619 Oct 5, 2006 Arrangement Equipment for Wood Slab

- Oct 4, 2014


Nov 5, 2009 SCG Distribution Co.,Ltd. 0703000033 Jan 9, 2007 Warning System for Doze Off - Dec 8, 2015


No. Patent Number

Registration Date




Dec 4, 2009 SCG Distribution Co.,Ltd. 0803001512 Dec 22, 2008 Canvas Tester - Dec 21, 2014


Jun 17, 2011 SCG Distribution Co.,Ltd. 0903001006 Sep 11, 2009 Multi Wall System - Sep 10, 2015

192 35965 Jun 21, 2013 SCG Distribution Co.,Ltd. 0802000673 Feb 27, 2008 - Breath Alcohol Tester Feb 26, 2014


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 utilized concessions of The Siam Cement Public Company Limited and Companies under SCG Cement-Building Materials are shown in below table

Concessionaire Location Type of Mineral

Number of Concession

(Copies)

Type of Area

Area (Rai)

Remaining Years of

Concession

Expiry Year

The Siam Cement Plc.

Saraburi

Limestone for cement industry

13 RFD 3,683 3 2017

3 RFD 897 4 2018 15 RFD 3,012 22 2036

Pyrophyllite 1 RFD 95 14 2028 2 RFD 183 18 2032

Nakorn Sawan Gypsum 1 RFD 298 17 2031 1 RFD 278 11 2025

Nakorn Sri Thammarat

Shale for cement industry

1 Owned by

the company 151 1 2015

SCG Cement Co., Ltd.

Lamphun Lignite 1 Owned by


Lampang Lignite 1 RFD 209 18 2032

The Siam Cement (Lampang) Co., Ltd.

Lampang


17 RFD 4,987 4 2018


2 RFD 597 4 2018

Industrial Clay for cement

industry

1 Owned by


1 Owned by



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.

Concessionaire Location Type of Mineral

Number of Concession

(Copies)

Type of Area

Area (Rai)

Remaining Years of

Concession Expiry Year

The Siam Cement (Kaeng Khoi) Co., Ltd.

Saraburi


10 RFD 2,575 13 2027


3 Owned by


Lopburi Industrial Clay

for cement industry

1 Owned by


The Siam Cement (Ta Luang) Co., Ltd.

Saraburi


5 RFD 954 16 2030

Industrial Clay for cement

industry

1 Owned by


3 Owned by


The Siam Cement (Thung Song) Co., Ltd.

Nakorn Sri Thammarat


19 RFD 4,973 19 2033

Krabi Industrial Clay

for cement industry

2 Owned by


Kampot Cement Co.,Ltd.

Cambodia Limestone for

cement industry

1

Ministry of industry,

Mines and Energy

6,133 52 2066


o 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 Date Acquired Expiry of Tax Incentives

PP 3 Jul 24, 2007 Mar, 2023

HDPE 3 Jul 24, 2000 Oct, 2014

HDPE 4 Jul 24, 2007 Feb, 2023

Jetty and Terminal Oct 2, 2003

May 19, 2004

25 Nov, 2004

Dec 12, 2007

Aug 14, 2009

Mar 5, 2010

Jun 26, 2012

Dec, 2016

Jul, 2017

Jan, 2018

Apr, 2023

Nov, 2023

May, 2024

Nov, 2025

Olefins (MOC) Dec 25, 2006 Jan, 2023

PE COMPOUND Feb 10, 2003 Mar 11, 2004 Mar 26, 2004 Apr 10, 2006 May 23, 2006 Dec 7, 2007 Apr 20, 2012

Feb, 2017 Mar, 2018 Feb, 2020 Nov, 2019 Jul, 2020 Mar, 2021 Mar, 2026

STEAM Oct 30, 2009 Apr, 2024 CATALYST Aug 7, 2009 8 years from the date of

first revenue received


Project Date Acquired Expiry of Tax Incentives INDUSTRIAL WAX Feb 28, 2013 Nov, 2026 DPEX (LDPE) Nov 22, 2013 8 years from the date of

first revenue received R&D (SCG CHEM) May 6, 2011 Nov, 2026 R&D (SCG CHEM) May 27, 2011 8 years from the date of

first revenue received R&D (SCG CHEM) Nov 10, 2011 Dec, 2024 ISOPRENE, Piperylene and DI-Cyclopentadiene (DCPD) (SCG CHEM)

May 21, 2013

8 years from the date of first revenue received

Butene-1 and Methyl Tertiary Butyl Ether (MTBE) (SCG CHEM)

May 21, 2013 8 years from the date of first revenue received

R&D (SCG CHEM) Nov 22, 2013 8 years from the date of first revenue received

CALIBRATION Jun 30, 2003 Nov 21, 2003 May 22, 2012

May, 2019 Jun, 2018


Industrial Zone Dec 4, 1997 Mar, 2018 Waste water treatment, Plant Industrial Waste and Toxic Chemicals Management

Mar 20, 2008 Apr, 2023

Human resources development Dec 16, 2011 8 years from the date of first revenue received

PVC RESIN Jul 17, 2007 Jul 16, 2020 PROFILE,PIPE,JOINT Dec 26, 2002 Jan 13, 2017 Dec 26, 2003 Feb 28, 2017 Apr 23, 2004 Jan 5, 2018 Dec 16, 2004 Mar 7, 2018 Dec 16, 2004 Jan 31, 2018 Oct 4, 2005 Oct 7, 2018 Mar 10, 2006 Jul 2, 2013 Sep 18, 2006 Jan 26, 2014 Sep 18, 2006 Jul 31, 2019


Project Date Acquired Expiry of Tax Incentives PROFILE,PIPE,JOINT Sep 18, 2006 Mar 12, 2020 Dec 15, 2009 Feb 16, 2017 Dec 29, 2010 Jan 5, 2024 Mar 11, 2011 May 31, 2024 May 6, 2011 Jul 1, 2018 May 14, 2012 Mar 12, 2025 Jul 11, 2012 Mar 12, 2020 Jul 11, 2012 Jul 22, 2025 Sep 25, 2012 Oct 22, 2025 Mar 22, 2013 30 Sep, 2026 MOULD Aug 23, 2005 Aug, 2018 Nov 25, 2010 Nov, 2023

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

received but doesn’t receive corporate tax reduction: Project Date Acquired Expiry of Tax Incentives

R&D (SCG CHEM) Aug 27, 2009

Oct 20, 2011

Feb 10, 2012

8 years from the date of

first revenue received

R&D (TPC) Jun 30, 2003

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:


PP (Modification) Oct 30, 2009 Feb, 2014

HDPE1 Dec 23, 2013 Dec, 2016


The project which receives 8 years of corporate tax exemption in an amount equivalent to 100% of an investment amount excluding cost of land and working capital for the projects with measures to reduce environmental impact. So that the project receives the corporate tax exemption on its revenue from existing operation.


PE Feb 3, 2011 Feb, 2019

PP Feb 3, 2011 Feb, 2019

LDPE Feb 3, 2011 Feb, 2019

TERMINAL/ JETTY Oct 10, 2012 Oct, 2020

PVC RESIN May 31, 2013 May, 2021

The project which receives 3 years of corporate tax exemption in an amount equivalent to 70% of an investment amount excluding cost of land and working capital for the investment promotion in energy for sustainable development. So that the project receives the corporate tax exemption on its revenue from existing operation.


COMPOUNDED PLASTICS May 31, 2013 May, 2016

VINYL CHLORIDE MONOMER (VCM) May 31, 2013 May, 2016

SCG Paper

Details of businesses in SCG Paper receiving BOI privileges:


PULP Mar 25, 2011

Jul 11, 2011

Mar, 2014

Jul, 2014

Uncoated paper Jan 11, 2007 May, 2016

Coated and uncoated paper Jun 24, 2011

Jul 11, 2011

Jun, 2014

Jul, 2014



Hygienic plastic coated paper Jul 12, 2012 Jul, 2018

Kraft Paper Feb 14, 2013

Feb 14, 2013

Feb 14, 2013

Feb 14, 2013

May 20, 2013

Aug 16, 2013

Mar, 2019

Sep, 2014

Sep, 2019

Dec, 2020

May, 2021


Eucalyptus Forest Feb 6, 2013 Jun, 2021

Cogeneration Plant Apr 5, 2010

Sep 22, 2005

Mar, 2019


Corrugated Container Sep 11, 2012

Apr 1, 2013

Apr 1, 2013

Apr 1, 2013

Apr 1, 2013

May 14, 2013

Sep 27, 2013

Sep, 2020

Sep, 2015

May, 2014

Sep, 2014

Oct, 2019

8 years and


Corrugated Sheet and Container Jul 24, 2007 Jan, 2022


SCG Cement-Building Materials

Details of businesses in SCG Cement-Building receiving BOI privileges:


Waste Heat Power Generator (WHG) Nov 6, 2007 Jan, 2018

Solid Waste Pre-Treatment Plant May 31, 2010 Dec, 2018

Environmental Laboratory Jun 29, 2012 13 years from the date of first revenue

Production line of ceramic roof tiles LINE 3 (No. 1871(2)/2005)

May 25, 2005 May 11, 2018


Dec 4, 2012 Nov 14, 2020


Aug 13, 2013 Not started using the tax right.

7 years from the date of first revenue

Fiberglass insulation

No. 1475(2)/2011

Nov 9, 2010 Feb, 2020

7 years from the date of first revenue

Export Service Center Mar 2, 2010 Mar 29, 2018


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 553 trademarks are registered at The Department of Intellectual Property.

Investment policy in subsidiaries and associate companies

The Siam Cement Public Company Limited is the holding company. Therefore, to ensure clarity in business management and effective resource management to strengthen the organization management according to the long term strategy and corporate governance. SCG has diversified into three core businesses, namely SCG Cement-Building Materials, SCG Chemicals and SCG Paper. And SCG Investment was established to manage investment in jointly invest with leading companies in other businesses, such as agricultural machinery business, automotive business, automotive accessories and equipments business, and steel business. The returns are in term of dividend and management fee.

Please refer to page 4-14 for shareholding structure of direct and indirect ownership of company, associate, subsidiaries, and joint ventures.

Part 1 Business Operation / 5. Legal Disputes The Siam Cement Public Company Limited 93

5. Legal Disputes

Legal disputes in which the Company is a party concerned or disputed, whether the disputes are cases or unsettled claims and are not related to ordinary course of business, are summarized as follows.

Case: Theft of Company Property (Form of Ordinary Share Certificates) and Forgery of Ordinary Share Certificates by a Former Employee

In the first quarter of 2009, the Company lodged a criminal complaint with the police officers against a former employee for the theft (form of ordinary share certificate) and the forgery of 672,000 Company’s ordinary share certificates. In the second quarter, the Company was notified by the Civil Court that the heirs and the estate administrator of the shareholder whose share certificates were forged filed a civil lawsuit against the Company and relevant individuals and juristic persons (9 parties altogether) alleging the joint liability in negligence and claiming for restitution and damages of Baht 223 million.

On November 30, 2011, the Civil Court decided that Mr. Praphan Chumuang, the former employee of the Company, committed a tort against the plaintiffs and ordered Mr. Chumuang to return 672,000 shares of the Company to the plaintiffs. If the returning of the shares is not possible, Mr. Chumuang would have to pay the share price of 164 million baht, together with interest of 7.5 % per annum from the commencement date of the tort until the payment is made in full, including the dividend which the plaintiffs should have received. The Civil Court also decided that the Company, as the employer of Mr. Chumuang, shall be jointly liable to the plaintiffs. The Company has already appealed the judgment of the Civil Court to the Appeal Court in 2012. Currently, the case is being reviewed by the Appeal Court.

Risk Reduction of Map Ta Phut Projects

Due to the Central Administrative Court ordered governments authorities to order the temporary suspension of the projects representing a total of 18 projects of SCG Chemicals in the Map Ta Phut Industrial Estate and vicinity of Rayong Province, on September 2, 2010, the Central Administrative Court delivered its judgment to revoke permits of the projects, for which such permits were issued after the Constitution B.E. 2550 came into force, and fall within the list of 11 types of serious impact projects issued on August 31, 2010 by the Ministry of Natural Resources and Environment. As a result of the judgment, almost all projects of the Group which are considered as non-serious impact projects are able to continue their operations, except for 1 project of the Group namely the Capacity Expansion of Vinyl Chloride Monomer Project of Thai Plastic and Chemicals Public Company Limited; which fall within the list. Around the end of 2012, such project has complied with the paragraph 2 of Article 67 of the Constitution B.E. 2550. The Industrial Estate Authority of Thailand (IEAT) was of the opinion that the project has fulfilled the requirements and accordingly, IEAT has submitted the issue to the prosecutor, requesting the prosecutor

Part 1 Business Operation / 5. Legal Disputes The Siam Cement Public Company Limited 94

to request the Supreme Administrative Court to revoke the temporary suspension order in order to allow the project to resume construction. On April 1, 2013, the prosecutor has filed the petition to the Supreme Administrative Court. Currently, the petition is being reviewed by the Supreme Administrative Court.

Part 1 Business Operation / 6. Other Related Information The Siam Cement Public Company Limited 95

6. Other Related Information

1. Company Information Name: The Siam Cement Public Company Limited Stock code: SCC (Listed on the Stock Exchange of Thailand - SET) Registration No: 0107537000114 Type of Business: Holding Company Website: www.scg.co.th Year of Establishment 1913 First Trade Date April 30, 1975 Headquarter Address 1 Siam Cement Road, Bangsue, Bangkok 10800 Registered capital: 1,600 Million Baht Paid-up capital: 1,200 Million Baht Comprised of 1,200 Million ordinary shares Par value: 1 Baht par value Preferred Share None Fiscal Year January 1 – December 31 of each year Shareholders The Crown Property Bureau Group holds approximately 31.6% of shares while the remaining shares are held by other institutional and individual shareholders Contacts Corporate Headquarters Tel. 66-2586-3333, 66-2586-4444 Fax 66-2586-2974 e-mail: [email protected]

Corporate Secretary Office Tel. 66-2586-6098 Fax 66-2586-3007 e-mail: [email protected]

Investor Relations Department Tel. 66-2586-3309 Fax 66-2586-3307 e-mail: [email protected]


Corporate Communications Office Tel. 66-2586-3770 Fax 66-2586-2974 e-mail: [email protected]

Designated Directors as Minority Shareholders’ Representative Fax 66-2586-3007 e-mail: [email protected]

2. Investment in subsidiaries, associates, jointly-controlled entity and other companies of which their operations are significant are disclosed in page 4-14.

3. References Registrars: Thailand Securities Depository Company Limited Address: The Stock Exchange of Thailand Building

1st Floor, 62 Ratchadapisek Road, Klongtoey, Bangkok 10110 Tel: 66-2229-2800 Fax: 66-2359-1259 e-mail: [email protected]

Website: www.tsd.co.th

Auditors: KPMG Phoomchai Audit Ltd. Mr. Supot Singhasaneh (Certificated Public Accountant Registeration No. 2826) and / or Mr. Winid Silamongkol (Certificated Public Accountant Registeration No. 3378) and / or Mr. Charoen Phosamritlert (Certificated Public Accountant Registration No. 4068) and / or

Ms. Sureerat Thongarunsang (Certificated Public Accountant Registration No. 4409)

Address: Empire Tower 50th – 51st Floors, 195 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120 Tel: 66-2677-2000 Fax: 66-2677-2222


Legal: SCG Legal Counsel Limited Address: 1 Siam Cement Road, Bangsue, Bangkok 10800 Tel: 66-2586-5777 or 66-2586-5888 Fax: 66-2586-2976

Trustee of Debenture Holders: Thanachart Bank Public Company Limited for the Debentures of The Siam Cement Public Company No. 2/2553 Due B.E. 2558

Address: 900 Tonson Tower, Ploenchit Road, Lumpini Patumwan, Bangkok 10330

Tel: 66-2655-9000 Fax: 66-2655-9171 Website: www.thanachartbank.com

Trustee: TMB Bank Public Company Limited for the Debentures of The Siam Cement Public Company No.1/2554 Due B.E. 2558, No.2/2554 Due B.E. 2558, No.1/2555 Due B.E. 2559, No.2/2555 Due B.E. 2559, No.1/2556 Due B.E. 2560, No.2/2556 Due B.E. 2560 and No.1/2557 Due B.E. 2561

Address: 3000 Phahon Yothin Road, Chatuchak, Bangkok 10900

Tel: 0-2299-1111 Fax: 0-2990-6010 Website: www.tmbbank.com

http://www.tmbbank.com/

Part 2 Management and Corporate Governance / 7. Security and Shareholders The Siam Cement Public Company Limited 98

7. Security and Shareholders 7.1 The Company’s Security

(a) Share capital: authorized common shares at Baht 1 par value totaling 1,600,000,000 shares. Issued and fully paid share capital is in 1,200,000,000 shares. (At the Ordinary Shareholders’ meeting held on March 26, 2003, the shareholders unanimously approved to change the par value of common shares of the Company from Baht 10 per share to Baht 1 per share. The Company registered the change with Department of Commerce on April 17, 2003.)

(b) The Company does not issue other types of stocks, except from common shares. 7.2 Shareholders

(a) First 10 major shareholders as at February 21, 2014 No. Shareholders No. of ordinary

shares % of total shares

1 THE CROWN PROPERTY BUREAU 360,000,000 30.00 2 THAI NVDR CO., LTD 113,796,687 9.48 3 CHASE NOMINEES LIMITED 42 41,163,732 3.43 4 STATE STREET BANK AND TRUST COMPANY 40,057,003 3.34 5 BNP PARIBAS SECURITIES SERVICES LUXEMBOURG 26,953,936 2.25 6 STATE STREET BANK EUROPE LIMITED 22,377,294 1.86 7 SOCIAL SECURITY OFFICE 20,027,600 1.67 8 CPB EQUITY CO., LTD 19,220,000 1.60 9 NORTRUST NOMINEES LIMITED-NT0 SEC LENDING

THAILAND 17,672,900 1.47

10 BNP PARIBAS SECURITIES SERVICES, LONDON BRANCH

16,039,600 1.34

Remark : CPB Equity Co., Ltd. is the company fully-owned by The Crown Property Bureau. The information of Investors under Thai NVDR Co., Ltd. is shown on the website: www.set.or.th


As at February 21, 2014, the first major 3 NVDR holders were as follows: No. NVDR shareholders No. of ordinary


1 HSBC (SINGAPORE) NOMINEES PTE LTD 14,833,625 1.24 2 STATE STREET BANK AND TRUST COMPANY 13,395,729 1.12 3 STATE STREET BANK EUROPE LIIMITED 10,102,108 0.84

(b) The majority of shareholders are a group whose movement has a marked influence on the establishment of corporate policy and strategy. (As at February 21, 2014)

No. Shareholders No. of ordinary


1 THE CROWN PROPERTY BUREAU 360,000,000 30.00 2 CPB EQUITY CO., LTD 19,220,000 1.60

- Among major shareholders, the Company does not have any shareholding agreements, which might affect its management.

Foreign Limit The company has imposed limitations on the number of shares which can be held by the

foreigners at 25% of fully paid-up capital. As at February 21, 2014, the company declared that 25% of fully paid-up capital shares are held by the foreigners.

7.3 Issuance of Other Securities

The Siam Cement Public Company Limited issued 9 series* of debentures valuing Baht 141,500 million. The interest rate is 3.85 – 4.5 percent with maturities of 4 - 7 years (Details are disclosed in notes to the consolidated financial accounts in number 19, page 167) Remarks: * Debenture were rated as “A(tha)” from Fitch Ratings (Thailand).

7.4 Dividend Policy The company has a dividend payout policy on paying dividends to the shareholders at 40% -

50% of the consolidated net profit. However, when reviewing the dividend payout for any potential changes for the respective period, the company may take into account all irreg ular situations, and uncontrollable factors, accordingly. In 2013, the consolidated net profit amounts at 36,522 Million Baht, resulting in the retained earnings for appropriation at the ordinary general meeting of shareholders on March 26, 2014, the Board resolved to declare the annual dividends for the year 2013 at 15.50 Baht per share or equal to 51 percent of net profit.


For most subsidiaries whose 100 percent shares owned by the company, The Siam Cement Public Company Limited considered their operating results, concerning the corporate structure financial position and investment plan. The company did not find any policy that led to transfer of interests, lack of transparency as stated in the principles of good corporate governance.

Detail of Other Dividend Distribution

Year Interim dividends (Baht/share)

Final dividends (Baht/share)

Annual dividend (Baht/share)

Dividends payout ratio on net profit (%)

2009 3.50 5.00 8.50 42

2010 4.50 8.00 12.50 40

2011 5.50 7.00 12.50 55

2012 4.50 6.50 11.00 56

2013 8.50 7.00* 15.50 51

*Remark: The Board of Director resolved to propose the ordinary general meeting of shareholders on March 26, 2014, to approve the final dividend distribution at 7.00 Baht per share.

Part 2 Management and Corporate Governance / 8. Organization Structure The Siam Cement Public Company Limited 101

8. Organization Structure

Management Structure (As at January 1, 2014)

Reporting Line

SCG Paper

SCG Chemicals


President and CEO

The Audit Committee

SCG Top Executives

The Board of Directors The Siam Cement Public Company Limited

The Remuneration Committee

The Audit Office

SCG Risk Management Committee

Finance and Investment

SCG Investment

CSR Committee for Sustainable Development

The Governance and Nomination Committee

Corporate Administration Corporate Compliance Unit

Corporate Risk Management Unit


8.1 Board of Directors Composition of the Board of Director The Board of Directors comprises nationally respected, knowledgeable and competent persons who are

responsible for drawing up corporate policy and collaborating with the top executives in making operating plans, both short-term and long-term, including financial policy, risk management policy, and organizational overview. The Board, which plays an important role in overseeing, monitoring and assessing the performance of the Company and top executives on an independent basis, comprises the following names:

1. Mr. Chirayu Isarangkun Na Ayuthaya Chairman 2. Mr. Snoh Unakul Director 3. Mr. Sumet Tantivejkul Independent Director 4. Mr. Pricha Attavipach Independent Director 5. Mr. Panas Simasathien Director 6. Mr. Yos Euarchukiati Director 7. Mr. Arsa Sarasin Independent Director 8. Mr. Chumpol NaLamlieng Director 9. Mr. Tarrin Nimmanahaeminda Independent Director 10. Mr. Pramon Sutivong Independent Director 11. Mrs. Tarisa Watanagase Independent Director 12. Mr. Kan Trakulhoon Director, President & CEO Among the Board directors, four have been appointed as authorized directors, namely, Mr. Snoh

Unakul, Mr. Yos Euarchukiati, Mr. Panas Simasathien, and Mr. Kan Trakulhoon. Any two of the authorized directors are authorized to sign jointly on behalf of the Company.

11 non-executive directors One executive director, who is the company’s president & CEO The six independent directors are Mr. Sumet Tantivejkul, Mr. Pricha Attavipach, Mr. Arsa Sarasin, Mr.

Tarrin Nimmanahaeminda, Mr. Pramon Sutivong and Mrs. Tarisa Watanagase

The Audit Committee The Audit Committee comprises four independent directors, all of whom are well accepted and have a full

understanding of, and experience in, accounting or finance. Mr. Tarrin Nimmanahaeminda and Mrs. Tarisa Watanagase, with their extensive knowledge and experience, are responsible for reviewing the reliability of the financial statements. The Audit Committee members’ duties include a review to ensure that operations have been carried out in accordance with the Company’s Articles of Association as well as the laws and regulations of compliance-related agencies. Moreover, the Committee is committed to promoting the advancement of SCG’s financial and accounting report system to meet international standards and to ensure that the


Company has an appropriate, modern and efficient internal control system, internal audit system and risk management system. The Audit Committee acts and expresses opinions independently.

Internal Audit Office with Mr. Anuwat Jongyindee as its Director acts as an operations unit reporting directly to the Audit Committee. The Audit Committee also consults regularly with external auditors, consultants and specialists in the areas of law and accounting. The Audit Committee must set up meetings with the Company’s external auditor, which exclude the management, at least once a year in order to hear their comments. In addition, the Committee may seek external consultation and professional advice from independent consultants or specialists, as deemed appropriate, at the Company’s expense.

Internal Audit Committee of the Company comprises the following four members:

1. Mr. Tarrin Nimmanahaeminda Chairman 2. Mr. Pricha Attavipach Member 3. Mr. Pramon Sutivong Member 4. Mrs. Tarisa Watanagase Member

The Governance and Nomination Committee The Governance and Nomination Committee comprises five of the Company’s directors, all of whom

are non-executive directors. The chairman of the Governance and Nomination Committee is an independent director. The Committee is responsible for proposing, revising, and supervising the Company’s corporate governance matters. The Committee is also in charge of the nomination of persons qualified to become directors to replace those who are retired by rotation, or as the case may be. In addition, the Committee reviews the performance evaluation system of the Board of Directors and other committees, as well as the succession plan for the position of president.

The Governance and Nomination Committee of the Company comprises the following five members:

1. Mr. Sumet Tantivejkul Chairman 2. Mr. Snoh Unakul Member 3. Mr. Panas Simasathien Member 4. Mr. Arsa Sarasin Member 5. Mr. Tarrin Nimmanahaeminda Member

The Remuneration Committee The Remuneration Committee comprises three of the Company’s directors. The Committee is

responsible for monitoring and studying changes and trends in the remuneration of the Board of Directors


and SCG top executives to suggest remuneration policies that can motivate these executives to lead the Company toward success as well as to retain smart and ethical employees within the organization.

The Remuneration Committee of the Company comprises the following three members: 1. Mr. Chumpol NaLamlieng Chairman 2. Mr. Yos Euarchukiati Member 3. Mr. Pramon Sutivong Member

The CSR Committee for Sustainable Development The CSR Committee for Sustainable Development comprises five of the Company’s directors and

three top executives. The Committee is responsible for establishing policies and guidelines on CSR activities for sustainable development, proposing the setting of annual CSR budget as well as monitoring the Committee’s performance and reporting to the Board of Directors.

The CSR Committee for Sustainable Development comprises the following eight members: 1. Mr. Snoh Unakul Chairman 2. Mr. Chirayu Isarangkun Na Ayuthaya Member 3. Mr. Sumet Tantivejkul Member 4. Mr. Yos Euarchukiati Member 5. Mr. Kan Trakulhoon Member 6. Mr. Kajohndet Sangsuban Member 7. Mr. Roongrote Rangsiyopash Member 8. Mr. Tanawong Areeratchakul Member

Board of Directors’ Meetings It is the duty of each member of the Board to consistently attend the Board’s meetings to stay

informed of SCG’s operations and make decisions regarding them. The Board holds at least eight scheduled meetings per year, making sure that the agendas are set forth clearly prior to each meeting. In addition, the Board may organize special meetings to consider and decide urgent matters.

At the meetings, the Chairman and the President & CEO of the Company jointly determine which agenda items are relevant to the meetings. Every individual member of the Board is entitled to propose agenda items.

In 2013, the Board held 10 meetings, eight scheduled meetings and two special meetings. Prior to each meeting, all members received the agenda and supporting documents five working days prior to the date of the meeting to allow adequate time for preparation.

When considering the matters presented to the Board, the Chairman of the Board presides over and duly conducts the meetings. All members of the Board are allowed to express their opinions independently.


Resolutions are passed with a majority vote, whereby one director is eligible for one vote. A director with a vested interest in the issue under consideration or a director ineligible to vote shall be excused and/or abstain from voting. In case of a tied vote, the chairman of the meeting will cast his vote to reach a resolution.

SCG executives are allowed to attend the Board’s meetings to provide useful information to the Board, and to learn directly about the Board’s initiatives and policies for effective implementation. However, the executives are not allowed to attend the meeting for certain agenda items which are reserved only for the Board of Directors or for non-executive directors in order to ensure independence of consideration.

In addition, the Board attaches significance to managing the conflicts of interest of the concerned parties with prudence, fairness and transparency. The information shall be fully disclosed. Any director with a vested interest in the matter under consideration must not be involved in the decision process.

After the Meeting, the company secretary is responsible for preparing the minutes for all directors. The minutes must then be approved as the first agenda item of the following meeting of the Board, which is duly signed by the chairman. Directors may make comments, corrections or additions to ensure maximum accuracy and completeness. After approval, minutes of the meeting are stored securely in the corporate secretary’s office together with all related documents, which are backed up electronically to facilitate data searches.

In addition, for the months in which the Board of Directors meeting is not held, all directors are continuously informed of the operating results. The Company submits to the director relevant documents, together with information about any significant developments that occurred during the month, in order to keep them informed.

Non-executive directors hold a meeting among themselves to discuss the succession plan for top executives and to evaluate the performance of the President. So as to ensure that the non-executive directors can express their opinions independently, the President is excluded from attending a meeting held to evaluate his performance and other related issues.


The Attendance of the Directors in 2013 (as of December 31, 2013)


8.2 Top Executives

Top Executives of SCG (As at January 1, 2014) comprises 1. Mr. Kan Trakulhoon President & CEO, SCG 2. Mr. Chaovalit Ekabut Vice President – Finance and Investment & CFO, SCG

President, SCG Investment 3. Mr. Tanawong Areeratchakul Vice President – Corporate Administration, SCG 4. Mr. Pichit Maipoom President, SCG Cement-Building Materials

Vice President – Operations, SCG Cement-Building Materials

5. Mr. Aree Chavalitcheewingul Vice President – Regional Business, SCG Cement-Building Materials

6. Mr. Nithi Patarachoke Vice President – Domestic Market, SCG Cement-Building Materials

7. Mr. Cholanat Yanaranop President, SCG Chemicals 8. Mr. Somchai Wangwattanapanich Vice President – Operations, SCG Chemicals 9. Mr. Roongrote Rangsiyopash President, SCG Paper

The above-mentioned top executives of SCG are “Management” in accordance with the Securities and

Exchange Commission Notification No. Tor Jor 23/2551. SCG top executives are empowered with an authority to operate business under the policy, strategies and

goals directed by the Board of Directors, which approves a clear and definite scope of responsibilities to ensure transparency and flexibility of operation. The nine members of top executives have no forbidden qualification as following:

1. Never dishonestly committed an offence against property. 2. Never entered into any transaction which may cause conflicts of interest against SCG during the year.


Remark: Mr. Nithi Patarachoke has been appointed to be SCG Top Executive since September 1, 2013

8.3 The Secretary to the Board of Directors and the Company Secretary

The Secretary to the Board of Directors The Board appointed Mr. Worapol Jennapar as the secretary to the Board of Directors responsible for

providing advice to the Board regarding the performance of duties in compliance with the law, preparing the minutes of the Board’s meetings, and attending every Board meeting. He is deemed by the Board to be highly knowledgeable and experienced, especially in legal matters, allowing him to provide appropriate advice to the Board regarding laws, rules, regulations and the SCG Corporate Governance Policy.

The Corporate Secretary The Board appointed Mrs. Pornpen Namwong as the corporate secretary responsible for organizing

the meetings of the Board, committees and shareholders. The corporate secretary is also in charge of preparing the minutes of the Board’s meetings, the minutes of shareholders’ meetings, and Annual Report as well as filing documents as stipulated by law. She is deemed by the Board to be appropriate because she is knowledgeable in managing corporate secretarial work, having served as director of the corporate secretary office, which supports the corporate secretarial work involving compliance with laws, rules, regulations and the SCG Corporate Governance Policy.


The Company constantly supports the company secretary to undergo training and development in the areas of law, accounting, or corporate secretarial work. The qualifications and experience of the company secretary are disclosed in the Company’s annual report.

8.4 Remuneration for the Board and the Top Executives Remuneration for the Board and the committees SCG sets appropriate remuneration for members of the Board and the top executives at rates

comparable to those of leading companies listed in the SET, and other top companies in the same industries. Remuneration for the Board is also considered based on SCG’s operating results, before being proposed for approval in the Shareholders’ Meeting. Remuneration for the top executives is set by the Board of Directors, based on their responsibilities and performance, and the operating results of each business.

Apart from ordinary remuneration, the Shareholder’s Meeting on March 24, 2004 passed a resolution approving the Company to pay a bonus to the Board of Directors in an amount not exceeding 0.5% of total dividends paid to shareholders. The Board of Directors is responsible for consideration of the appropriate amount of bonus and the amount to be paid to each director. The resolution is effective from the date of approval until any subsequent resolution. The bonus for directors will be considered based on the growth of profits of the Company, while the bonus of top executives is considered based on the performance of each business as well as individual performance.

As for remuneration for the committees, the Board of Directors is entitled to set the remuneration for each committee according to Clause 40 of the Company’s Article of Association. However, to ensure transparency in tune with good corporate governance, the Board found it appropriate to seek from the Shareholders’ Meeting the approval of the remuneration for three committees, namely, the Audit Committee, the Governance and Nomination Committee, and the Remuneration Committee. In 2006, the 13th Annual General Meeting of Shareholders on March 22, 2006 passed a resolution approving the remuneration for the committees at the same rates as proposed by the Board. Later in 2011, the 18th Annual General Meeting of Shareholders on March 30, 2011 approved new remuneration rates for the three committees.

Director Remuneration In the 11th Annual General Meeting of Shareholders held on March 24, 2004, a resolution passed

concerning the remuneration and bonuses of directors. Monthly remuneration for all directors was set at 1,800,000 Baht, to be distributed among the directors in such manner that they themselves may consider appropriate. Regarding bonuses, permission was granted for the Board itself to determine the appropriate


amount, but the amount cannot exceed 0.5% of total dividends paid to shareholders, and should be apportioned among the directors in such manner they themselves may consider appropriate. This took effect from the day the resolution was passed by a vote of the shareholders and remained in effect until the Shareholders’ Meeting determined otherwise.

The Apportionment of Board Remuneration and Bonuses Monthly Remuneration The Board of Directors passed a resolution to pay the chairman a 1.5 portion, or 216,000 Baht per

month, and the other 11 board members one portion, or 144,000 Baht per month.

Director Bonuses The Board of Directors passed a resolution to pay the chairman a bonus of 1.5 portions and each of the

other board members bonuses of one portion of total bonuses as approved in the Shareholders’ Meeting.

Remuneration for the Committees The Board of Directors passed a resolution to remunerate members of the committees on the basis of

a fixed fee and attendance fee, as follows:

Unit: Baht Position Annual fixed fee Attendance fee

The Audit Committee

Chairman 180,000 45,000 Director 120,000 30,000

The Governance and Nomination Committee/ The Remuneration Committee

Chairman 150,000 37,500

Director 100,000 25,000


The Remuneration for the Board of Directors and the Subcommittees paid in 2013

Remark: 1. Chairman of the Board of Directors 2. Chairman of the CSR Committee for Sustainable Decekopment**** 3. Chairman of the Governance and Nomination Committee 4. Chairman of the Remuneration Committee 5. Chairman of the Audit Committee

* The directors' bonus paid in 2013 consisted of the bonus payment based on the final dividend of the year 2012 paid to shareholders on April 25, 2013 and the interim dividend of the year 2013 paid on August 29, 2013 and the special interim dividend of the year 2013 paid on November 28, 2013 as represented in the item of “Administrative expenses” on the consolidated statements of income.

** Retired from the company’s directorship and chairman of the Audit Committee since March 27, 2013

*** Has been a company’s director and a member of the Audit Committee since March 27, 2013

**** The CSR Committee for Sustainable Development has no remuneration


Top Executive Remuneration (As at December 31, 2013) The total remuneration for ten executives in the form of salaries, bonuses, variable pay and others

amounted to 231,901,753 Baht. For 2013, the Company made contributions of 14,945,320 Baht to the provident fund for the executives, because they are employees of the Company.

The remuneration for the directors and top executives of subsidiaries, which are SCG’s core businesses (As at the year ended December 31, 2013)

Total remuneration for directors of subsidiaries that are core business of SCG Directors of the core businesses, which encompass SCG Cement-Building Materials, SCG Chemicals

and SCG Paper are the top executives who are not subject to remuneration paid for being the directors.

Total remuneration for top executives of subsidiaries that are core businesses of SCG

1) Remuneration paid as money, such as monthly salary, bonus, and variable pay. 2) Other compensation such as provident fund contributions.

Details of compensation are as follows:

Subsidiaries that are core businesses Number of executives

Total Remuneration in the form of money

(Baht)

Other compensation

(Baht) 1. SCG Cement-Building Materials Co., Ltd. 4 24,795,840 2,045,784

2. SCG Chemicals Co., Ltd. 6 30,642,065 2,574,312

3. SCG Paper PLC. 8 40,054,000 3,451,188

Therefore, the number of executives, and the remuneration for the above-mentioned executives, excluding the presidents and vice president of subsidiaries that are SCG’s core businesses, included the number and remuneration of the top executives of The Siam Cement Public Company Limited, which are listed on SCG Annual Report 2013.

8.5 Human Resource At SCG, “Belief in the value of the individual” is one of philosophy. Therefore, employees are the most

valuable asset. We devoted to develop their skills, capability, and quality of life with the appropriated remuneration. Therefore, SCG has improved the human resource management in correspondence with the business strategy. The Company draws up tactics to foster the success by planning for the next 5 years as following:


1. Human resource preparedness to support the future investment 1.1 Arrange manpower to serve an expansion

Other than the readiness in the terms of International staffs and SCG staff in Overseas Operations to support the oversea business’s expansion, SCG also builds the brand to be recognized as employer of choice by generating the campus recruitment in leading education institutions, offering scholarships to students and local staffs for graduate to doctoral degree, and building strong relationship with the government, private sector, community, and leading corporate of the invested countries. Moreover, SCG arranges quarterly meeting with SCG coordinator of each country to make sure that the company’s policy on human resource management has been applying accordingly. Such meeting opens up additional information exchange channel in terms of business and human resource as a way of employee’s care of both local and international staffs.

1.2 Employee capability development SCG focuses on creating atmosphere that allows employees to be inspired and learned

through training sessions, knowledge sharing activities, knowledge improvement programs, and in-work experience. Employees would have attitude and behavior that suits the company as well as broaden their knowledge, skills and visions that enable them to adapt to constant changing environment both local and overseas. SCG continuously provides employees at all levels of the organization with a variety of Business Foundation Programs such as “Abridged Business Concept (ABC)”, “Business Concept Development (BCD)”, “Management Program (MDP)”, “Executive Development Program (EDF)” and “Advanced Management Program (AMP)”, in order to encourage their career development. Furthermore, SCG also determines to prepare and plan individual Training Roadmap based on each employee’s competency to empower them with skills and expertise both in technical and management aspects.

As a preparation for oversea expansion, SCG improves staff’s ability in working at international stage by teaching them language, culture, and business norms of each country through Cross-Cultural Exclusive Development programs and international business practice program. Furthermore, SCG has developed SCG Orientation International Program for local staffs to understand the SCG’s business strategy and promoting the proud of being SCG employees and building working network.

1.3 Modification on human resource management to encourage for working overseas Aims to have same standard of human resource management with SCG and also suitable

for different cultures, the overseas companies have implemented e-HR management software.


SCG brings excellent practices, such as introducing SCG Career Camp projects, monitoring employees through HR committee, and applying HR development methods e.g. TQM, TPM, Safety to the overseas companies in order to illustrate its intention of sustainable and long-term investment and boost working effectiveness. Also, the intentioned programs allow local staffs to have career growth opportunity in the same playing field with others throughout SCG. The HR system platform is a key that allows HR system to be applied in foreign countries much more effectively. For top managements, SCG has a policy that requires them to have working experience in foreign countries.

2. Encourage new culture lead to innovative organization 2.1 Change the culture into innovative organization

Through diverse activities, SCG aims to promote and alter working culture to be known as innovative organization as well as changing its employee’s working behavior. Every employees is required to adhere to SCG Business Philosophy and Code of Conduct which are guidelines for practices and also courageous to think and talk as well as having opened-mind and ability to change in order to create Innovative Workplace environment. SCG also initiated various activities such as Inno Award, Inno Idea Tank, Book Brief, and Eager to Learn. In addition, SCG sees the importance of adding number of researchers in subjects which are related to business direction because these staffs are the critical mass in driving innovation policy to be in effect rapidly.

2.2 Develop employees’ competency who support innovative culture To develop employees’ competency in supporting innovative culture, SCG has arranged

number of programs to develop them in each level. These programs are, for instance, Thinking Skills for Innovation, Coaching for Innovation, Leadership Development Program, and Inno Executive Coaching. In the meantime, SCG has developed SCG Inno Facilitators in every business to act as promoters of innovative culture within the organization.

2.3 Modify human resource management to enhance innovative organization

Human resource management is an importance tool in sustainability achieving innovation goal. The HR systems that support the mentioned policy are listed below:

- Improve Recruitment Process by developing internal recruiting procedure to serve career part of employees via SCG Career Click.

- Review Performance Management System to motivate employees and teams both output and working procedures in driving innovation

- Define wage management and career development for researchers and specialists in each business.


- Take care of employees’ Health both physically and mentally. We at SCG constantly arrange activities to promote “Holistic Health Program” and ensure employees’ welfare so as to encourage “Employee Engagement” which leads to the collaboration in building SCG innovation culture.

- Cooperate with external institutions for R&D such as AIT, Chulalongkorn University as well as develop skills for technicians in mechanical technology by cooperating with King Mongkut’s University of Technology North Bangkok and Model School Project , in cooperation with Vocational Education Committee to support SCG’ s future technology improvement.

SCG believes that its focus on HR development in knowledge, skill, and ethic will allow the Company to achieve the goal of becoming international company of innovation. Such adherence will lead the Company to experience sustainable growth both local and in ASEAN.

As at December 31, 2013, The Siam Cement Public Company Limited had 1,635 employees with a compensation of Baht 2,379 million. Total employees of the Group were 49,287 with a compensation of Baht 32,417 million. (Compensation includes salary, bonuses, provident fund, and welfare)

Number of Employees in Each Business of the Siam Cement Group As at December 31, 2013

Company / Business Unit Number of Employees

The Siam Cement Public Company Limited 1,635

SCG Cement-Building Materials 32,788

SCG Chemicals 4,876

SCG Paper 9,877

Other 111

Total 49,287

Part 2 Management and Corporate Governance / 9. Corporate Governance The Siam Cement Public Company Limited 116

9. Corporate Governance

9.1 Corporate Governance Policy

SCG conducts business with responsibility and fairness, adhering to principles it has long practiced. SCG’s business principles are defined by its ethical framework and constantly improved in view of economic and social changes. These principles call for balancing both sustainable benefits and respectful treatment of all stakeholders.

SCG considers corporate governance to be a part of its business policy, which the Board of Directors has agreed to review and evaluate on an annual basis. In addition, the Company makes improvements, amendments and changes in corporate governance in line with the changing economic and social situation. The Board of Directors has assigned the Governance and Nomination Committee to take charge of corporate governance matters as well as to consider trends and new developments at the international level. For example, the Committee compares the rules and practices of the world’s leading companies and stock exchanges with those of SCG in order to find areas for improvement and assesses compliance with the corporate governance policy. In addition to the annual review of such policy, charters of the Board of Directors and committees are periodically reviewed to ensure their conformance with laws, international best practices and the guidelines of the Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC). The Board of Directors, moreover, specifies corporate governance to be one of the main items on the agenda at the Board of Directors’ meeting.

The Governance and Nomination Committee set forth a policy to develop the SCG Principles of Corporate Governance so they can be applied to establishing business strategies to prepare the Company for ASEAN’s economic growth accelerated by the coming implementation of the ASEAN Economic Community. Examples include the revision of SCG Corporate Governance principles to be in line with an official ASEAN CG Scorecard.

In 2013, the Board of Directors resolved to approve, with the recommendation of the Governance and Nomination Committee, the revision of the charters of the Board of Directors and Sub-committees to align with the current Scope of Authority and in compliance with applicable laws, international practices, the Principles of Good Corporate Governance of the Stock Exchange of Thailand (SET) and the Thai Institute of Directors (IOD), and ASEAN CG Scoreboard. The revision is posted on SCG website.


For the year 2013, SCG obtained five awards from Corporate Governance Asia as follows: 1. Asia’s Best CEO 2. Asia’s Best CFO 3. Best CSR 4. Best Investor Relations Company (Thailand) 5. Best Investor Relations Professional

In addition, SCG won a rating of “Excellent” in the Thai Investors Association’s 2013 Annual General Meeting Checklist survey (AGM Checklist). The Thai Institute of Directors gave SCG an “Excellent CG Scoring” in the 2013 Corporate Governance Report on Thai Listed Companies. On top of this, the Company received a SET Award for 2013 - the special “SET Award of Honor in Best Corporate Social Responsibility” for the sixth consecutive year.

SCG Code of Conduct

In 2007, SCG updated the SCG Code of Conduct by adding guidelines for each business, illustrative examples, clearer practices, and a whistleblower policy that protects any employee who files a complaint or reports on improprieties or suspected violations of laws, SCG rules and regulations, the Company’s Articles of Association, the SCG Code of Conduct or Anti-corruption Policy. In addition, the Company formed a working team responsible for devising the policies and providing consultancy regarding the SCG Code of Conduct. This team comprises top management from functions responsible for ensuring compliance with the SCG Code of Conduct and from the business units. This working team monitors performance and gives advice on relevant issues.

To further raise awareness of the SCG Code of Conduct among employees and to maintain strong adherence to SCG’s corporate governance standards, the Company shares knowledge and promotes adherence to the SCG Code of Conduct to each employee at every level with a focus on raising awareness from the first day of employment onward. The Company has published a booklet on the Code of Conduct and distributed it to all new SCG employees along with conducting informational events to expound the Code of Conduct principles and practices to ensure that employees understand it clearly and use them as guidelines in performing their duties vigorously. This will be a key factor in assessing the yearly performance of employees. In 2012 SCG produced promotional materials and video clips that re-enact cases described in the Code of Conduct booklet to communicate the ideas as clearly, realistically and memorably as possible. The focus was on enabling employees to readily and knowledgeably practice these principles on the job and in daily life. The Company sent an e-newsletter to each employee’s email address and posted the video clips on the internal website.


In addition, the Company provides channels for employees to express their views and share experiences together with providing employees information and consultation via the “SCG Code of Conduct” and “SCG Code of Conduct Consultation System” website. The Audit Office also focuses on constantly organizing workshops to support all SCG Business Units to operate in compliance with the principles of corporate governance and SCG Code of Conduct.

SCG sees its corporate governance policy and Code of Conduct as essential guidelines for the organization; therefore, it puts strong emphasis on principles and practices concerning responsibility and fairness toward all stakeholders. The principles include a clear outline of the structure, components, duties, independence and performance of the Board of Directors; transparency of information disclosure; a strict auditing system; and strict risk management policies. These build trust among shareholders and create additional value for them. SCG has disclosed related information through a growing variety of media to give stakeholders easier access to the information. Among these media and information channels are the Annual Report, 56-1 Form, website of the Stock Exchange of Thailand (SET), and SCG website, which together provide diverse and convenient access to information.

Policy on Protection and Fairness for Employees Who Inform on or Disclose of Wrongful Conduct or Non-Compliance with the Laws, Rules, and Regulations, the Company’s Articles of Association, and SCG Code of Conduct (Whistleblower Policy)

SCG has given great priority to good corporate governance. The Company carries out business with fairness to all parties and stresses the importance of transparency and accountability. SCG thus opens up opportunities for its employees and stakeholders to report or inform any irregularity in the business operations of SCG such as financial transactions, and compliance with legal requirements, regulations, ethical practices, and anti-corruption policy through specific channels provided. To assure that such reporting or provision of information will not cause trouble to the complainant or informant, SCG has established a mechanism for protecting and relieving the distress that might occur unfairly to those who report or inform from being abused or threatened. The Audit Office responsible for the security of the Whistleblower System has designated a separate server using two-level password authentication to prevent any leak of information.

In 2013, SCG established additional channels for the outside stakeholders to complain about or report on corruption or incompliance with laws, regulations, requirements, SCG Code of Conduct and anti-corruption policy as well as SCG Suppler Code of Conduct. They include the SCG website at www.scg.co.th under SCG Whistleblower System or directly reporting to the Company via Independent Directors or Audit Committee in addition to the receipt of complaints made verbally or in writing via letter, email, or intranet from employees.

http://www.scg.co.th/


This will be followed by a procedure for fact investigation established by the Company and a report to the Board of Directors. Moreover, contact information is clearly provided, and the procedure as well as channels are stated on the Company’s website and Annual Report. (For complaints concerning the quality of products and services, consumers can file complaints via each company’s website.)

In 2013, there were 10 complaints via the whistleblower system. The Audit Office concluded investigations most of all these complaints, two of which are regarded as instances of fraud with immaterial economic value.

However, these too were taken into consideration for fine-tuning the Company’s system to prevent fraud in the future.

Anti-corruption Efforts

On countering corruption, in the year 2012 the Company signed a Declaration of Intent of the Thai Institute of Directors’ Private Sector Collective Action Coalition Against Corruption, whereby SCG’s president & CEO vowed to adhere to the Coalition’s aim to fight corruption in all forms. To that effect, the Company assessed risks associated with corruption and prepared itself for self-assessment on anti-corruption measures.

The Board of Directors of Siam Cement Public Company Limited resolved to announce the Anti-corruption Policy on May 29, 2013 to clearly prescribe the principles, guidelines, and communication associated with corruption in addition to those stated in handbooks on Code of Conduct, Corporate Governance, SCG Four Core Values, and SCG Stakeholder Engagement Policy.

SCG applied for the certification of its anti-corruption compliance program by having the self-evaluation concerning its anti-corruption mechanisms verified by Audit Committee. The Company was certified on July 5, 2013.

The Siam Cement Public Company Limited is the first conglomerate company in Thailand to have been proclaimed a Certified Company by The Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) Council.

SCG focused on communicating and implementing the anti-corruption mechanisms across the Company. SCG President & CEO informed employees at all levels through Message from CEO via the Company’s intranet. SCG Anti-corruption Policy is accessible on www.scg.co.th.

Guidelines on SCG’s Corporate Governance


1. The Rights of Shareholders

SCG has a policy to support, promote, and facilitate every shareholder including institutional investors to ensure that shareholders, both as investors and owners of the Company, are entitled to all basic rights meeting widely accepted and reliable standards, which include the right to freely trade or transfer their own shares, the right to receive dividends from the Company, the right to attend Shareholders’ Meetings, the right to propose in advance the Meeting agenda, the right to nominate a person to be a director, the right to express opinions independently, and the right to make decisions on important affairs of the Company, e.g., the election of directors, the appointment of auditors and fixing of the audit fee, approval of significant transactions influencing the Company’s direction, as well as amendment of Memorandum of Association and Articles of Association of the Company, etc. Each shareholder has the right to vote at meetings according to the number of shares owned whereby one share is entitled to one vote, and no particular share allows privilege over the rights of other shareholders.

Apart from the abovementioned rights of the shareholders, SCG has made additional efforts to encourage and facilitate shareholders to exercise their rights as follows:

1. SCG provides essential, clear, and up-to-date information for shareholders regarding the Company’s business. Even though some information is not required to be disclosed by law, if SCG considers that it is of significance to shareholders, the Company will notify shareholders of the information through SCG’s website and the Stock Exchange of Thailand.

2. Prior to the date of the Meeting, SCG provides clarifications and rationales for each agenda item to ensure that all shareholders have significant and sufficiently detailed information for study well in advance. Such information, both in Thai and English, will be posted on SCG’s website around two months before the date of meeting and the related documents are submitted to shareholders more than 20 days prior to the Meeting. The shareholders’ right to attend the Meeting and the right to vote on resolutions will be clearly stated in the Meeting notice submitted by the Company.

3. Any shareholder who is unable to attend a Meeting is entitled to appoint a representative, e.g., an independent director or other person, to act as proxy, using any one of the proxy forms attached to the notice of the Meeting. The Company has prepared the proxy forms in compliance with the specifications defined by the Ministry of Commerce whereby the shareholders can exercise their voting rights as wished. The proxy forms can also be downloaded from SCG’s website. For shareholders’ convenience, SCG provides the duty stamp to be sealed on the proxy form.

Shareholders who arrive after the Meeting has commenced are able to vote on the agenda item being considered provided that a resolution is not yet made. Late-arriving shareholders shall


constitute part of the quorum starting from the agenda item for which they are in attendance and can exercise their voting rights unless the Meeting states otherwise.

4. Shareholders can send queries about details of each agenda or other information via email: [email protected] or to the Company address prior to the Meeting.

5. For 2013, the Company held the Annual General Meeting of Shareholders on March 27, 2013. Eleven directors attended the Meeting as follows: 1. Mr. Chirayu Isarangkun Na Ayuthaya Chairman 2. Mr. Snoh Unakul Director 3. Mr. Sumet Tantivejkul Independent Director 4. Mr. Pricha Attavipach Independent Director 5. Mr. Panas Simasathien Director 6. Mr. Yos Euarchukiati Director 7. Mr. Arsa Sarasin Independent Director 8. Mr. Chumpol NaLamlieng Director 9. Mr. Tarrin Nimmanahaeminda Independent Director 10. Mr. Pramon Suthiwong Independent Director 11. Mr. Kan Trakulhoon Director and President & CEO

One absent Director was Air Chief Marshal Kamthon Sindhvananda, Independent Director and Chairman of the Audit Committee, who completed his term and expressed his intention of not being elected as a Director of the Company.

The Company deemed it appropriate to organize the Meeting at Athenee Crystal Hall on the 3rd floor of Plaza Athenee Bangkok, A Royal Meridien Hotel, as was previously done in 2012. This was in response to the increasing numbers of shareholders attending the Meeting each year, because SCG would like to make it easier for them to attend, raise questions, and express opinions all in the same room in order to ensure a smooth and effective meeting. The venue is easily accessible as it is situated on Wireless Road within close reach of a BTS station. An exhibition of SCG 100 Years was showcased at the entrance of the Hall to keep shareholders abreast of SCG’s information in different areas from the past to present. The Company also prepared a special gift for shareholders attending this year’s Meeting. It was a concrete elephant sculpture which underlines the strong bond between SCG and shareholders, having built upon SCG’s four core values for 100 years.

mailto:[email protected]


6. On the date of the Meeting, the Company uses a barcode system for registration based on the reference number already included in the registration form and proxy form to ensure convenience for shareholders and facilitate the registration.

7. Prior to the Meeting, the Secretary to the Board explained to the Meeting the procedures of voting, counting of votes, and announcing of voting results, which can be summarized as follows:

7.1 In voting for each agenda, each Shareholder or a proxy authorized by any Shareholder to vote on his/her behalf was entitled to vote equal to the number of shares held, whereby one share would be equal to one vote. Votes were to be cast by the raising of hands.

7.2 In casting votes by the raising of hands, any Shareholder who wished to vote for, vote against or abstain from such agenda shall mark the voting card accordingly w ith his/her signature affixed. The officers of the company shall scan the barcodes and collect the voting cards only for the Shareholders who voted against or abstained to count the number of opposing and abstaining votes for each agenda. All the voting cards for the Shareholders who voted for all the matters shall be collected altogether when the Meeting adjourns.

7.3 In vote counting, a system of negative deduction shall be used whereby the “disapprove” and “abstain” votes shall be deducted from the total number of votes attending the Meeting for each agenda. The remaining votes shall then be counted as “approve” votes. In counting and summing up the votes for each agenda, the votes indicated in Proxy forms shall also be counted.

7.4 During the casting of the votes on each agenda, the votes shall be counted from the total number of votes cast by the Shareholders present at the Meeting with the right to vote in such agenda, which might vary from item to item since Shareholders might leave the Meeting or later enter into the Meeting. The results of the vote count shall be announced at the Meeting after the completion of the counting of votes for each agenda item. However, vote counting for some agenda items might take longer. In such cases, the Chairman might request the Meeting to proceed with the consideration of the next item on the agenda to avoid disrupting the meeting. The Meeting will be informed of the result as soon as the vote counting has finished.

8. One-third of the directors must retire from office on a rotational basis in each Annual General Meeting of Shareholders, and the election of directors to replace the retired directors takes place

during the Meeting. Shareholders will be informed that if the number of nominated persons does not exceed the number of directors required for that election, all of them shall be elected as


directors. However, if the number of candidates exceeds the number of directors required, each candidate is then elected individually. During the Meeting, shareholders are entitled to freely propose names of individuals for directorship of the Company.

In 2012, the Board of Directors suggested by the Governance and Nomination Committee proposed that the 2012 Annual General Meeting of Shareholders consider and approve the amendments to Clause 25 of the Company’s Articles of Association to enable a proxy to vote on are solution as authorized by a shareholder and Clause 30 to enable a shareholder to vote on an individual candidate. However, after the remarks and inquiries made by the shareholders to which the management replied, the Board of Directors deemed it appropriate to withdraw the matter from this Meeting without putting it to a vote as it was not an urgent matter and further consideration would be given to the matter in detail.

As a consequence, in 2012, the Governance and Nomination Committee reviewed the matter and proposed amendments to the two clauses of the Company’s Article of Association. The Board resolved to re-propose the agenda item to the 2013 Annual General Meeting of Shareholders in compliance with the criteria on good corporate governance of the Thai Institute of Directors (IOD) and its AGM Checklist.

The 2013 Annual General Meeting of Shareholders resolved to approve the amendments to Clause 25 and Clause 30 of the Company’s Articles of Association as proposed by the Board. Details are as follows:

25. A shareholder who has any special interest in a resolution cannot vote on such resolution, except for voting on the election of Directors.

30. The election of Directors at a general meeting of shareholders shall be carried out in accordance with the following rules and procedures:

(1) A shareholder shall have one vote for each share he holds or represents.

(2) At the election of Directors, the shareholders shall vote for each individual candidate nominated for Directors, but not exceeding the number of Directors required for that election. The vote shall not be distributed.

(3) The candidates shall be ranked in order descending from the highest number of votes received to the lowest, and shall be appointed as Directors in that order until all of the

Director positions are filled. Where the votes cast for candidates in descending order are tied, which would otherwise cause the number of Directors to be exceeded, the remaining appointment shall be made by the chairman of the meeting who shall have a casting vote.


The Company has completed the registration of the amendments to both Clauses as approved by the Shareholders’ Meeting with the Ministry of Commerce. They shall come into force at the 2014 Annual General Meeting of Shareholders.

9. At the Meetings, the Company provides clarifications and rationales for each agenda item as stated in the Meeting notice and shareholders are allowed to freely express their opinions, give suggestions and raise questions on any agenda item before casting votes, so that shareholders can obtain sufficiently detailed information on the matter question. Should shareholders have questions or inquiries, specialists in specific fields are available to answer queries under the authority of the Board with representatives from the Auditor of the Company as witnesses.

10. For any item on the agenda at the Shareholders ’Meeting, the shareholders can call for a casting of votes by secret ballot if at least five shareholders make such request. The Shareholders’ Meeting shall resolve to approve the casting of votes by secret ballot upon a majority of votes.

11. An agenda item regarding the Board’s remuneration is included to inform shareholders of the amount and type of remuneration received by each director including meeting allowance and bonus. Full details can be found in the Company’s Annual Report on page 41-43.

12. The agenda of the 2013 Annual General Meeting of Shareholders was considered chronologically as it appeared in the invitation letter submitted to shareholders prior to the Meeting, without any changes in order or request for the Meeting to consider any agenda item other than those specified in the invitation letter.

13. The Company disclosed the voting results and resolutions for each agenda item at the 2013 Annual General Meeting of Shareholders to the public via SET Portal and SCG website after the Meeting has ended.

14. The Company prepared the minutes of the Shareholders’ Meeting completely encompassing all material information: names of directors attending and not attending the Meeting, resolutions of the Meeting, voting results for each agenda item, key questions, clarification, and opinions. The Company prepared the Minutes of the 2013 Annual General Meeting of Shareholders’ and submitted them to the Stock Exchange of Thailand and the Ministry of Commerce within 14 days from the date of the meeting as stipulated by law. They were disseminated on the Company’s website.


2. The Equitable Treatment of Shareholders

SCG shall provide equitable treatment to every individual shareholder, major or minor, as well as institutional or foreign investors. To that effect, the Company strives to find tools to ensure equality, especially for minor shareholders, which include:

Provision of opportunities for minor shareholders to propose matters to be included in the Meeting agenda and to nominate candidates for the election of Board members who retire on rotation prior to the date of the Shareholders’ Meeting.

Prior to the Meeting, one or several shareholders holding in aggregate at least 5% of all issued shares of the Company have the right to suggest issues to be included in the agenda of the Annual General Meeting of Shareholders for 2014. Shareholders were allowed to exercise this right three months in advance between September 1 – 30 November, 2013 so that the Governance and Nomination Committee could screen the issues before presenting them to the Board of Directors for consideration. Should the proposed issue be included on the Meeting agenda, the Company shall specify in the notice of the Meeting that the agenda item was proposed by a shareholder. However, in case the proposed agenda item is rejected, the Company shall inform shareholders of the reasons at the Annual General Meeting of Shareholders. Moreover, any shareholder is entitled to nominate in advance any qualified candidates for the election of Board members in the same period. The Governance and Nomination Committee shall consider the proposed nominees together with other nominated persons according to the Company’s criteria for the nomination of directors. The Committee then presents the nominees to the Board for consideration before proposing them to the Shareholders’ Meeting for approval. The Company made available a form for advance proposals for the Meeting agenda and director candidates, for the convenience of shareholders. However, no shareholder proposed any agenda item or candidate prior to the Meeting.

Assigning Independent Directors to Take Care of Minor Shareholders

SCG provides channels for minor shareholders to give suggestions, express opinions or file complaints to the independent directors directly via e-mail at [email protected]. The independent directors are responsible for handling each matter appropriately, for example, investigating and seeking a proper solution. On the other hand, if there is a suggestion that is considered to affect the stakeholders or the business, the independent director will report it to the Board of Directors’ meeting for consideration and include it in the agenda of the Shareholders’ Meeting. In 2013, there were no comments or complaints from shareholders.


Preventing Conflicts of Interest

The Board has established policies and measures regarding conflicts of interest as follows:

SCG has a clear and transparent shareholder structure. There is no cross-holding among major shareholders, thereby preventing any conflict of interest or transfer of benefits from one party to another. The shareholder structure of SCG and its subsidiaries is published in the Company’s annual report, as are each Board member’s holdings of ordinary shares and debentures.

There is a clear separation of duties and responsibilities among the Board, management, and shareholders, thereby ensuring no overlap of duty or responsibility. Any director or executive who may have a vested interest in any agenda item under consideration must not attend the meeting or must abstain from voting on such agenda item. This is to ensure that the Board and executives make decisions in a fair manner for the utmost benefit of shareholders.

The Company has an established policy governing the use of internal information and has incorporated the power of authorities and employee regulations in writing, with penalties for the executives or employees in the event the internal information is disclosed to the public or used for personal benefit.

Directors, top executives, employees responsible for related functions as well as their spouses and children who are minors are prohibited from trading stock futures linked to SCG ordinary shares in order to ensure compliance with SCG’s Corporate Governance Policy.

The SCG Code of Conduct includes additional guidelines that prohibit employees from using the Company’s assets or spending working hours to search, contact or conduct activities related to share-trading on a regular basis for personal gain or on behalf of others without justifiable reason and not for SCG’s interests.

Establishing Sound Relationships with Shareholders

In 2013, SCG invited interested shareholders to participate in the Company’s CSR activities. The efforts not only opened up opportunities for shareholders to take part in activities beneficial to society and the environment but also fostered sound relationships with shareholders of the Company. In this regard, SCG provided equal rights for both major and minor shareholders. Seven such activities were held during the year as follows:

1. Admiring the National Heritage: Rattanakosin Exhibition between February 12-15, 2013 2. SCG Paper Open House in Kanchanaburi on April 30, 2013


3. SCG Cement-Building Materials Open House in Saraburi on May 8, 2013 4. SCG Chemicals Open House in Rayong on May 23, 2013 5. SCG 100th Innovative Exposition between August 2 – September 1, 2013 6. SCG BWF World Junior Championships 2013 between October 23 – November 3, 2013 7. Beautiful Temples: The Cultural Heritage of Rattanakosin between November 7-8, 2013

The activities organized by SCG all year round were well-received by shareholders. SCG is planning to organize activities dedicated to promoting an ongoing good relationship with shareholders to foster and maintain positive relations with shareholders on a broad scale.

3. The Role of Stakeholders in Corporate Governance

SCG conducts business with the highest awareness of its responsibility to ensure sustainable and mutual benefits to all related parties. The Board of Directors oversees the management system to ensure that the Company acknowledges the rights of stakeholders, both as stated by law and as clearly written in the “SCG Corporate Governance Policy,” and the “SCG Code of Conduct,” and guarantees that those rights are protected and treated equally. SCG published a written “SCG Stakeholder Engagement Policy” in 2010 in order to adhere to its responsibility to stakeholders and respond to changing social, environmental and business trends and the fact that stakeholders nowadays are more sophisticated with higher expectations regarding treatment, the expression of opinion, and decisions and actions taken on matters affecting them. The Policy gives employees clear guidelines on how to do business by adding value for shareholders in the long run while at the same time always considering the impacts on other stakeholders. The Company upholds its commitment to being a good citizen in society, especially in communities where its operations are located, by doing business with a sense of respect for the rights of stakeholders and ensuring that they are given fair treatment. The Company listens to opinions and concerns, promotes understanding among stakeholders, supports creative cooperation on matters of interest to stakeholders, and assists in the development of society and the environment, all of which are intended to ensure that SCG conducts business on the basis of fairness to all involved parties. The policy, which is published on the SCG website, covers four main areas:

Definition of stakeholders.

Policy on treatment of stakeholders.

Guidelines on treatment of stakeholders.

Management duties.

In 2011, SCG compiled the existing policies and practices toward various groups of stakeholders as well as additional policies and practices. They were put together in writing and disseminated on the Company’s website to provide employees with clear guidelines. Having been approved by the Board of


Directors, “SCG Policies and Practices Toward Stakeholders” have already been introduced. They encompass 12 groups of stakeholders as follows:

1) Shareholders: Besides the basic rights of shareholders and the rights stipulated by law and the Company’s Articles of Association such as the right to request a verification of the number of shares; the right to receive share certificates; the right to attend the Shareholders’ Meetings; the right to vote at the Meetings; the right to freely express opinions at the Shareholders’ Meetings; and the right to receive a fair return, SCG also gives shareholders the right, as the owners of the Company, to make suggestions and comments on the Company’s affairs to the independent directors. Each comment and suggestion will be carefully considered and presented to the Board of Directors.

2) Employees: SCG truly believes that its employees are the most valuable assets and is determined to ensure that every employee is proud of and confident in the organization. During the previous year, the Company organized activities to promote a collaborative working environment to drive innovation and enhance the competence of employees, readying them to work both in Thailand and abroad, and to cope with the volatile economic situation. Furthermore, we focused on treating employees and workers fairly as well as promoting employees’ health and safety, excellent working conditions, and competitive remuneration.

3) Customers: SCG puts great importance on providing customers with maximum benefits in terms of the quality and price of its products and services. Likewise, the Company is determined to develop and maintain sustainable relationships with customers. It has set up a support office to provide product information, solve problems and receive complaints in order to ensure customers’ total satisfaction with SCG’s products and services.

4) Suppliers: SCG operates its business within a competitive context by strictly upholding its promises, the SCG Code of Conduct, and commitments to suppliers.

5) Business Partners: SCG has a policy of taking good care of its business partners regarding the environment, work safety and remuneration. Further, the Company is resolved to develop the capabilities and knowledge of business partners both at work and beyond to enable them to work more efficiently.

6) Joint Venture Partners: SCG respects the rights of joint venture partners and treats every partner equitably and fairly. The Company works collaboratively with joint venture partners to ensure that the joint ventures achieve the shared goals.


7) Creditors: SCG complies with the terms of loans and obligations to its creditors such as business creditors and depositors. The Company, moreover, organizes various projects in order to keep good relations with creditors such as activities for debenture holders.

8) Community: SCG conducts business with fairness to all related parties and with concern for social responsibility. In addition, the Company is open to comments and suggestions from every part of society to ensure a shared approach to operating business sustainably alongside social and community development. The Company supports activities that promote quality of life and create happiness for communities and the public wherever it operates, both in Thailand and in other ASEAN countries. SCG organizes various activities for the benefit of society, especially projects to develop the potential of young people in different fields, namely, science, technology, sports, and the arts. In addition, the Group provides emergency relief at times of disaster.

9) Government Agencies: SCG attaches significance to government agencies as stakeholders of the Company. Guidelines for engaging in transactions with government agencies are defined in the SCG Code of Conduct to allow employees to proceed accurately and appropriately. The Company also cooperates with government agencies, providing technical assistance and support for various activities.

10) The Media: SCG stresses the importance of disclosing information to the media so that they can communicate the information to the public accurately and rapidly. To establish good relationships with the media, the Company organizes various activities such as plant visits, socially beneficial activities, and meetings to exchange views.

11) Competitors: SCG operates its business within a competitive context by being fair and strictly following the law and the SCG Code of Conduct. During the year, there was no dispute with competitors.

12) Civil Society Sector, Academia, Opinion Leader: SCG carries out business with concern for social responsibility and all stakeholders.The Company is committed to disclosure of information, transparency, and verification as well as to welcoming comments and suggestions from all involved parties to find an approach to collaboration to ensure that sustainable business

operations take place alongside social and community development.

Furthermore, SCG encourages its employees and related parties to take part in activities that benefit local communities and the general public in achieving sustainable growth. Even amid the economic downturn, the Company continues to devote its creativity, knowledge, and capabilities to enhance the efficiency of these projects in order to maximize benefits for local communities and the public.


For the environment, SCG sets guidelines for sustainable development in respect of environmental management and conservation under the concept of “the 3Rs,” which are to “Reduce, Reuse/Recycle and Replenish.” This concept is applied to operations in all of SCG’s businesses. The guidelines shape the design of the plants, help develop and improve production processes, and lead the Group to utilize eco-friendly technology. The Company ensures that systematic management is in place for its production processes, products and services as well as for the restoration and improvement of natural resources. In addition, the Company constantly promotes awareness regarding environmental conservation and encourages its employees and related parties to participate in protecting the environment.

Reflecting SCG’s concern for the environment and society, the Company has introduced the “SCG eco value” label for eco-friendly products and services that are produced by using special processes that minimize environmental impacts, based on the ISO 14021 standards. In 2013, 82 products were certified for the SCG eco value label. Revenue from sales of SCG eco value products currently account for 26% of total revenue from sales. By 2015, the number is expected to increase to one-third of total revenue from sales.

SCG has set its sights on achieving “zero waste to landfill”. The efforts include reducing waste at its source and selecting raw materials that produce the least waste. At the same time, waste will be sorted or recycled for reuse as alternative fuels or materials for cement production. In addition, the Company has a policy of purchasing products from suppliers that recycle or reuse their used products to maximum benefit or purchasing products with a longer service life.

Moreover, SCG has joined forces with businesses in Map Ta Phut Industrial Estate to establish the “Community Partnership Initiative”. At present, the number of members grown from 5 to 13. At the same time, SCG, in cooperation with cement manufacturers in Saraburi Province, set up “Cement Partnership Project” to develop prototype eco-friendly cement plants that exceed the statutory standards. The project also aims to work side by side with the community to solve problems and to enhance the quality of life of the community like family members. A similar partnership has also been expanded to other industries. In 2013, SCG established the “Community Partnership Project” in collaboration with cement manufacturers and coal importers in Nakhon Luang District, Ayutthaya Province to develop environmentally-friendly operations, allowing the industry and the community to coexist symbiotically and sustainably.

SCG joined forces with the National Center for Genetic Engineering and Biotechnology as well as other government and business agencies to help farmers in the Northeast faced with severely saline soils where rice or other cash crops cannot grow. To that effect, scientific and technological know-how was used to research and develop saline-tolerant rice varieties while SCG worked with local soil experts to introduce the techniques for the cultivation of rice along with other cash crops, enabling crops to grow well on saline soils.


Moreover, the community set up a self-help farmer group in the form of a community enterprise to promote jobs and supplementary means to increase their household income. SCG takes aim at promoting the know-how in saline soil reclamation on a broader scale to serve as a prototype in developing the productivity of Thai agricultural society.

SCG continues its focus on water conservation. The “SCG Conserving Water for Tomorrow” project has made progress in providing support to communities for the building of check dams, which restore the balance of nature and lead to the sustainable growth of the community. Through the end of 2013, SCG, together with communities and networks, have built more than 62,000 check dams to celebrate 100 years of SCG business sustainability. Moreover, SCG strives to raise awareness among the public and communities about conservation of water and the environment in order to achieve sustainable growth. Details of SCG’s environmental and social activities are available in the annual Sustainability Report, which has been published each year since 2001, at www.scg.co.th.

In 2013, SCG developed the SCG Supplier Code of Conduct to give SCG’s suppliers a better understanding and provide them with guidelines in dealing in business with SCG. The five principles are as follows:

1) Ethical Business Practices: Conduct their business with adherence to honesty, integrity and fairness to all stakeholders. They shall provide a full and accurate disclosure of information, keep any confidential information, and respect the intellectual property rights of others.

2) Labor Protection and Human Rights: Avoid discriminatory employment practices, and give importance to labor protection especially child labor, female employees, and foreign workers. Suppliers must not use or exploit forced labor. They shall pay workers accurately and fairly including wages, benefits and define the working hours according to the laws.

3) Occupational Health and Safety: Provide a safe and healthy work environment as well as controlling accident risks and health impacts associated with the performance of duty. Suppliers shall also provide sufficient and reliable personal protective equipment.

4) Environment: Operate with concern for natural resources and the environment consistent with the 3Rs concept: Reduce, Reuse/Recycle, and Replenish.

5) Laws and Regulations: Abide by all applicable laws, rules, and regulations.

Furthermore, SCG organized the Supply Chain Sustainability Forum under the theme of “Walking Together to Contribute to a Sustainable Society and the Environment” to promote a SCG Supplier Code of Conduct among suppliers and the demonstrate SCG’s concern for social responsibility.


Moreover, SCG provides opportunities for all stakeholders to make comments and suggestions to SCG Investor Relation via email at [email protected]. The suggestions will be compiled, reviewed, and reported to SCG management and the Board of Directors, respectively.

4. Disclosure and Transparency

SCG recognizes the importance of information disclosure because it greatly affects decision-making by investors and stakeholders. It is necessary, therefore, to define and administer measures concerning the disclosure of information, both financial and non-financial. Information disclosed via the SET Community Portal (of the Stock Exchange of Thailand) and SCG’s website shall be complete, sufficient, reliable and up-to-date, written in both Thai and English. SCG is committed to obeying the law, and the regulations and obligations mandated by the Securities and Exchange Commission (SEC), the SET and relevant government bodies. Regular amendment takes place to ensure that SCG is up-to-date in its adherence to laws, regulations and obligations, and to guarantee SCG’s transparency in conducting business. For example, we:

1. Disclose accurate, complete and timely financial information and non-financial information. 2. Prepare a report on the Board’s responsibility for financial statements and present it along with the

Audit Committee’s report in the Annual Report. 3. Establish a policy that requires the Company’s directors and executives to report their own

interests, and those of any related persons, which are vested interests relating to the management of the Company or its subsidiaries. The criteria and reporting procedures are as follows:

Report when first taking office as a director or executive.

Report every time there is a change in director’s or executive’s vested interests.

Report at every-year-end.

Allow any director retiring on rotation and being re-elected to not report his/her own interests again should there be no change in the information.

Require a director or executive to submit the Report on Interests via the Corporate secretary, who will gather and store the documents and submit them to the chairman of the Board of Directors and the chairman of the Audit Committee for acknowledgement within seven days after the Company receives the documents.

4. Announced a policy in 2010 requiring all directors to disclose and/or report their securities trading and holdings to the Board of Directors’ meeting. In 2013, the Board of Directors announced a policy requiring all management to disclose their securities holdings both directly and indirectly as well as the changes in securities holdings of the directors and top executives by reporting the number of shares they held at the beginning of the year and at year end together with that traded during the year in the Company’s annual report.

5. Disclose procedures about Board member selection and the Board’s performance assessment.


6. Disclose the performance and attendance record of each member of the Committee. 7. Disclose the date of the director’s appointment. 8. Disclose information on the remuneration each director receives as a member of the Committee. 9. Disclose the policy on the remuneration of directors and top executives, including forms, types

and amount of remuneration for each committee member. 10. Disclose detailed information on the operations and investment structure of subsidiaries and

associate companies. 11. Disclose the audit fee and other fees in the Company’s annual report. 12. Disclose the Company’s Memorandum of Association and Articles of Association on the

Company’s website. 13. Disclose policy on environmental and social responsibility and related performance. 14. Report on corporate governance policies and related performance. 15. Reveal significant investment projects and relevant impacts of the projects via the SET Community

Portal of the Stock Exchange of Thailand and SCG website to ensure that shareholders, investors, the press, and related parties are kept informed of information accurately, extensively, and transparently. For example, in 2013 the Company disclosed its investment projects in various businesses. Chief among them were the quality enhancement of high value-added (HVA) products and the expansion of the LDPE resin production capacity of SCG Chemicals, and the acquisition of a packaging business in Thailand and Indonesia of SCG Paper. Meanwhile, SCG Cement-Building Materials included the construction of a cement plant in Myanmar, an investment in a ceramic tile business in Vietnam, and a joint venture with Nichire Logistics (Japan) Co.,Ltd to provide temperature-controlled logistic services.

Moreover, in 2013, the Board of Directors still upheld information disclosure guidelines related to SCG so as to systematize the Company’s information disclosure and avert any damage caused by improper disclosure. This reassured shareholders, investors, the general public and all stakeholders that SCG is committed to disclosing information clearly, equitably and in compliance with the law. To that effect, the existing practices have been compiled and formulated in SCG’s Disclosure Policy set forth in 2008. The Company has designated the persons responsible for disclosing non-public information as well as establishing guidelines on the disclosure of different types of information to the public and setting up critical periods in which extreme caution should be taken prior to the disclosure of information to the public. Details of the guidelines are available for stakeholders and the general pu blic on SCG’s website.

The Investor Relations Department of SCG is responsible for communications with institutional investors, retail investors, shareholders, analysts and relevant government bodies on an equal and fair basis. Should


the shareholders require additional information, they can contact the Investor Relations Department directly via [email protected]. In 2013, SCG arranged activities for the president & CEO and the vice president to meet retail investors, institutional investors and analysts on a regular basis, whereby the operating results, financial statements and position, management discussion and analysis, and industry trends were presented. During the year these activities included:

Domestic roadshows and conferences for the President & CEO as well as Vice President to meet with domestic institutional investors to clarify, communicate, and create accurate understanding based on SCG’s business approach and general information. A total of eight events were held.

Meetings for the President of each business unit to meet with analysts and domestic institutional investors to inform and communicate business strategies and directions, providing them with knowledge and insights into each of SCG’s business.

Analyst conferences held on a quarterly basis.

A total of 12 overseas roadshows.

Various company visits as well as direct replies to inquiries from investors via telephone and email on a regular basis.

5. The Board of Directors: Its Responsibilities

The Structure of the Board of Directors

5.1 Composition of the Board of Directors

The Board of Directors comprises nationally respected, knowledgeable and competent persons who are responsible for drawing up corporate policy and collaborating with the top executives in making operating plans, both short-term and long-term, including financial policy, risk management policy, and organizational overview. The Board, which plays an important role in overseeing, monitoring and assessing the performance of the Company and top executives on an independent basis, comprises the following names:

1. Mr. Chirayu Isarangkun Na Ayuthaya Chairman 2. Mr. Snoh Unakul Director 3. Mr. Sumet Tantivejkul Independent Director 4. Mr. Pricha Attavipach Independent Director 5. Mr. Panas Simasathien Director 6. Mr. Yos Euarchukiati Director 7. Mr. Arsa Sarasin Independent Director 8. Mr. Chumpol NaLamlieng Director 9. Mr. Tarrin Nimmanahaeminda Independent Director


10. Mr. Pramon Sutivong Director 11. Mrs. Tarisa Watanagase Independent Director 12. Mr. Kan Trakulhoon Director, President & CEO

Among the Board directors, four have been appointed as authorized directors, namely, Mr. Snoh Unakul, Mr. Yos Euarchukiati, Mr. Panas Simasathien, and Mr. Kan Trakulhoon. Any two of the authorized directors are authorized to sign jointly on behalf of the Company.

11 non-executive directors

1 executive director, who is the company’s president & CEO

The six independent directors are Mr. Sumet Tantivejkul, Mr. Pricha Attavipach, Mr. Arsa Sarasin, Mr. Tarrin Nimmanahaeminda, Mr. Pramon Suthiwong and Mrs. Tarisa Watanagase.

Scope of Authority of the Board of Directors

The Board of Directors has the following authorities: 1. Acting in a best interest of shareholders (Fiduciary Duty) by observing the following four main

practices: 1.1 Performing its duties with responsibility and all due circumspection and caution (Duty of

Care). 1.2 Performing its duties with faithfulness and honesty (Duty of Loyalty). 1.3 Performing its duties in compliance with laws, objectives, Articles of Association, the

resolutions of the Board of Directors and resolutions of Shareholders’ Meetings (Duty of Obedience).

1.4 Disclosing information to shareholders accurately, completely, and transparently with verification and timeliness. (Duty of Disclosure).

2. Directing the vision, mission, as well as business and risk management policies of SCG for stability and the balanced and sustainable benefits of all stakeholders, while continuously adding value for shareholders.

3. Reviewing the operating plan, strategies, budget, and business goals, and developing the capabilities of SCG for competitiveness at the global level.

4. Reviewing top executive development plan and the succession plan for the president while overseeing to ensure the effective performance assessment of top executives on an annual basis and determining appropriate remuneration in line with the Company’s operating results to provide both short- and long-term incentives.

5. Overseeing to ensure effective risk management systems together with reviewing and assessing the systems periodically and in the wake of a change in risk levels.


6. Devoting their time and efforts to the Company without seeking benefits for themselves or others and not acting in conflict of interest or in competition with the Company or SCG.

7. Directing the Company’s operation in compliance with the laws, objectives, Articles of Association, resolutions of the Board of Directors and resolutions of Shareholders’ Meetings in good faith and with care to preserve the highest interests of the Company and fairness to all involved parties.

8. Overseeing and developing SCG’s corporate governance to keep it consistent with international standards to provide guidelines for business operations while monitoring to ensure compliance and being a role model in complying with the principles of good corporate governance and SCG Code of Conduct.

9. Overseeing and monitoring of each business unit and SCG’s overall performance by requiring their performance reports periodically, and setting policies to develop and improve the business operations with concern for safety, hygiene, social and environmental responsibility and development of SCG’s employees.

10. Encouraging staff at all levels to be conscious of ethics and morality and comply with SCG’s principles of corporate governance, Code of Conduct and the anti-corruption policy while promoting awareness of the importance of internal control system and internal audits to reduce the risk of fraud and abuse of authority and prevent any illegal act.

11. Protecting the fair rights and interests of both major and minor shareholders along with supporting shareholders in exercising their rights to protect their own interests, and receive accurate, complete, transparent, veritable, and timely information.

12. Recognizing the roles, duties, and responsibilities of the Board of Directors, paying respect to the rights of shareholders, treating shareholders and other stakeholders fairly, conducting the business transparently, disclosing information accurately and adequately as well as establishing a clear process and channels for receiving and handling complaints from informants or stakeholders.

13. Assessing the performance of the Board of Directors annually by performing three types of assessments, namely that of the Board and its Committees as a whole, that of each individual director as a self-assessment, and that of the chairman together with monitoring the assessment results of the Board and its Committees which will be jointly deliberated by the Board of Directors.

14. Overseeing and monitoring to ensure the selection and nomination process of a director is carried out transparently and the remunerations for directors and sub-committee members are determined appropriately.

15. Attending all meetings of the Board of Directors and Shareholders’ Meetings, except in unavoidable circumstances. The directors who are unable to attend a meeting must notify the Chairman or the Secretary to the Board in advance of the meeting.


Performing its duties, the Board of Directors may seek external consultation from independent consultants or experts in various fields, as deemed necessary and appropriate.

The Board meeting suggested that the President and CEO consider the appropriateness and necessity to set up a compliance unit in response to SCG’s business expansion and to systemize the overlapping work of different functions in each Business Unit that had been designated to take responsibility for each specific area.

SCG Management in 2013 commissioned an external consultant to consider the guidelines in establishing a compliance unit, setting control, communication, and reporting systems as well as defining the scope of responsibilities of the compliance unit to ensure maximum efficiency and consistency with SCG’s organizational structure.

Scope of Authority of the Board of Directors Chairman

The Chairman of the Board of Directors has the following authority:

1. Sets Board meeting agenda in consultation with the President & CEO and oversees to ensure Board members receive accurate, complete, timely, and clear information prior to the meeting to assist in their decision making process.

2. Provides leadership and direction to the Board of Directors and chairs meetings of the Board. 2.1 Conducts a Board meeting according to the agendas, the Company’s Regulations, and

applicable laws. 2.2 Encourages and allocates sufficient time to each Board member to discuss and express their

free and frank opinion with due circumspection and concern for all stakeholders. 2.3 Sums up the Board meeting resolutions and the actions to take clearly. 2.4 Sets up a Board meeting without the presence of the Executive Director.

3. Chairs meetings of shareholders according to the agendas, the Company’s Articles of Association, and relevant laws by allocating time appropriately along with providing opportunities for shareholders to express their opinions equitably and ensuring that shareholders’ inquiries are responded to appropriately and transparently.

4. Supports and be a role model in compliance with the principles of good corporate governance and SCG Code of Conduct.

5. Fosters a positive working relationship between the Board of Directors and the Management and supports the performance of the duties of the President & CEO and the Management in accordance with the Company’s policy.

6. Oversees to ensure the transparent disclosure of information and management in the event of conflicts of interest.


7. Oversees to ensure the Board of Directors has appropriate structure and composition. 8. Oversees that the Board of Directors as a whole, Sub-committee members, and each individual

director perform their duties effectively and efficiently. 9. Oversees to ensure the performance assessment of the Board of Directors as a whole and self-

assessment of directors, Chairman, and Sub-committee members. The assessment results are reviewed to find ways to improve their performance and enhance the knowledge and capabilities of the directors and sub-committee members.

The Board of Directors’ Authorization

The Board of Directors is empowered to authorize various matters in accordance with the scope of authority stipulated by laws, the Company’s Articles of Association, the Board of Directors charter, and the shareholders’ meeting resolutions. Such matters include defining and reviewing corporate vision, operating strategies, operating plans, risk management policy, annual budget and business plans, and medium-range business plan. Added to this is the defining of the target operating results, following up and assessing the operating results to ensure they are consistent with the plan, and overseeing capital expenditure, merger and acquisition, corporate spin-off, and joint venture deals.

Directors’ Term of Service on Board

Duration of Each Term

At the Annual General Meeting of Shareholders each year, one-third of the total directors must retire from office. If it is not possible to divide the total number of directors evenly by three, the number closest to

one-third must retire from the office. In choosing those directors who retire, length of service on the board should be considered, so that those who have served longest are most eligible to retire. Nevertheless, a retiring director is eligible for re-election.

Number of Consecutive Terms a Director is Permitted to Serve

The Company believes that each of its elected directors is a highly qualified individual who is respected for being knowledgeable, virtuous, moral and effective. If shareholders show confidence in a director by re-electing him or her, the Board of Directors will honor that decision. Therefore, the Company does not set a limit on consecutive terms of service by a director. Further, in 2011, the Board of Directors resolved to limit the number of terms for which an individual may serve as an independent director to a maximum of three consecutive terms. The first term started from May 25, 2011. The appointment date of each independent director will be disclosed in the Company’s annual report.


Limitation of the Number of Listed Companies in Which a Director May Hold Directorship

The Board of Directors has set a policy to limit the number of listed companies in which each director may hold a directorship. This policy aims to protect the Company’s best interests because it helps ensure that directors have time sufficient to handle their duties. The Board of Directors has agreed to set the policy prescribing that each director should hold directorship of a maximum of five listed companies. In addition, SCG has a guideline in case the President & CEO is appointed as director of another company. The matter will be proposed to the Board of Directors for approval.

Policy on Top Executives Holding Directorship in Organizations Outside SCG

The Board of Directors has set a policy that allows top executives to hold directorship in organizations outside SCG, and to spend company work hours carrying out the directorship duties, for organizations of certain types:

1. Governmental organizations that are not established for the benefit of political parties, because the executives’ service represents their cooperation with the authorities and contribution to the general public.

2. Private organizations that are established for the benefit of the general public such as the Federation of Thai Industries, Thai Chamber of Commerce, Thailand Management Association, and so on.

3. Private organizations that are established for trading purposes; present no conflicts with SCG and; do not consume time to the extent that it is disadvantageous for the Company. (Subject to approval.) (Source: Resolution No. 5.2 of the Board of Directors Meeting of SCG No. 206 (1/2536): RE: Policy of the Board of Directors regarding employees spending company work hours to work for non-SCG organizations)

Separation of the Roles of the Board of Directors and the Management

The Company defines clear roles and responsibilities regarding the Board of Directors and the management. The Board shall be responsible for establishing the policies and overseeing the management’s implementation of those policies. The management, on the other hand, shall be responsible for implementing the policies formulated by the Board, and ensuring that these are carried out as planned. Therefore, the Chairman and the President & CEO of the Company shall not be the same person, and each must be nominated and elected by the Board in order to ensure their appropriateness. Furthermore, the Board is responsible for establishing a succession plan covering the top executives, which is subject to annual review.

The Chairman shall not be a member of the management and shall not participate in the management of SCG’s business; nor shall the Chairman be authorized to sign binding agreements on behalf of the


Company. This is to clearly define separate roles between supervision of the Company’s overall policy, and management of the business.

In 2013, SCG’s top executives comprised the following ten executives: - President & CEO, SCG - Vice President – Finance and Investment & CFO, SCG - Vice President – Corporate Administration, SCG - President, SCG Cement-Building Materials - Vice President-Operations, SCG Cement-Building Materials - Vice President-Regional Business, SCG Cement-Building Materials - Vice President-Domestic Market, SCG Cement-Building Materials - President, SCG Chemicals - Vice President-Operations, SCG Chemicals - President, SCG Paper

The ten executives are authorized to manage the Company’s operations in accordance with the policies set by the Board; take responsibility for the Company’s operating results; control expenses and capital expenditures within the limits approved by the Board in the annual operating plan; manage human resources in line with the prescribed policy; resolve problems or conflicts that affect the Company; and maintain effective communication with the stakeholders.

Performance Appraisal and Knowledge Enhancement

Performance Appraisal of the Board

SCG makes available the performance evaluation form of the Chairman. The directors are required to appraise the Chairman’s performance, since his role in defining policy and ensuring good corporate governance is essential to the Company. In addition, the performance appraisal of the Board consisting of group assessment (as a whole) and self-assessment must be carried out on an annual basis at least once a year. The assessment results are reviewed in order to find ways to continue to improve the Board’s performance.

The performance appraisal of the Board both as a whole and self-assessment comprises eight major topics as follows:

1. Knowledge and understanding about the role and responsibilities of a director in accordance with the laws, rules, and regulations stipulated by various agencies or institutions such as SEC, SET, or Federation of Accounting Professions. 2. Strategy-setting and policy-making. 3. Performance of duties as director /committee.


4. Monitoring financial performance and reporting. 5. Board of Directors’ meetings. 6. Nomination of the Company’s directors and President & CEO. 7. Setting remuneration for the directors and top executives. 8. Performance appraisal of the President.

In 2013, the assessment result of the Board as a whole was 95% and the result of self-assessment was 92%.

Performance Assessment of SCG’s President & CEO and Top Executives

The Board and the Remuneration Committee assess the performance of the President & CEO based on the Company’s operating results, implementation of the Board’s policies, and the overall socio-economic circumstances. The Remuneration Committee will then consider the appropriate remuneration for the President & CEO and top executives of SCG and propose such amount to the Board for approval, taking into account the following information regarding the current and previous years:

1. The business unit’s operating results based on percentage of EBITDA on operating assets. The target EBITDA percentage for each business unit of SCG shall be set forth each year for assessment and comparison purposes.

2. The operating results of the business unit compared to those of other companies in the same industry, both locally and internationally.

3. The executive’s capability to develop the business unit and improve operational efficiency for each business unit each year.

In addition, a survey on manager-level employees’ opinions regarding the President & CEO and the top executives is included in the Remuneration Committee’s consideration each year.

Development of Directors and Top Executives

The Governance and Nomination Committee deemed it appropriate to arrange activities to enhance knowledge beneficial to the performance of duties and responsibilities

of the Company’s directors. In the years past, the Company held two dialogs, allowing for an exchange of opinions among the directors, top executives, and outside experts as follows:

On Wednesday July 6, 2011, a dialog on the “Laws, Rules, and Regulations Concerning the Listed Companies Essential to Directors and Suggestion for Preventive Measures” was held, allowing for an exchange of views between the directors and officers of the SEC and the Stock Exchange of Thailand (SET).


On Monday July 23, 2012, a dialog on “Corporate Governance and Risk Management” between the Company’s Board of Directors, top executives, and Dr. Bandid Nijathaworn, President & CEO of Thai Institute of Directors Association (IOD) was held.

In 2013, the Governance and Nomination Committee suggested that the Company organize a dialog on “The Role of the Board of Directors in Mergers and Acquisitions” for the Company’s directors in accordance with their need survey results. Held on July 25, 2013, the dialog focused on the following issues:

Relevant laws and regulations concerning the mergers and acquisitions of listed companies.

Considerations/issues to be addressed by the Board of Directors in the event of mergers and acquisitions.

Role and responsibilities of the Board of Directors of listed companies in mergers and acquisitions

In addition, the directors also attended national events designed to promote good corporate governance and allow for the exchange of opinions with regionally-renowned experts such as The 2nd National Director Conference 2013 organized by the IOD. Moreover, during the Board of Directors’ meetings, the Audit Committee reported on any cases of corruption or accounting cover-ups at SCG subsidiaries, both domestic and foreign, to keep the directors and top executives informed of the cases to prevent such fraud from happening again to the Company and its associates.

SCG prepared a handbook for directors, which includes the summary of laws, rules and regulations related to the directors as well as practices to keep directors informed of roles, duties, principles and practices for a director. The handbook is distributed to all directors for use as reference regarding basic information. In addition, directors are also kept abreast of laws related to or promoting good corporate governance such as anti-corruption legislation. In 2012, the Company distributed a handbook for independent directors published by the Stock Exchange of Thailand to every Board member with a concise summary for the Governance and Nomination Committee during the Board of Directors’ meeting. However, the Board recommended producing a document or publication to enhance the directors’ knowledge and understanding about the applicable laws and regulations. The Governance and Nomination Committee deemed it appropriate for the management to compile rules, requirements, and information useful for the directors’ performance of duties into a publication with an executive summary for easy understanding and reference. Therefore, in 2013 the Company revised its handbook for directors in both wording and presentation of information, making it more concise and easier to understand as well as modifying and adding rules in accordance with the currently prescribed regulations.

For new directors, SCG established a Director Induction Program to facilitate their prompt performance of duties. SCG has commissioned the corporate secretary to coordinate the work in three areas:


1. To compile the necessary information for directors to ensure their compliance with laws, rules, and regulations related to the directors.

2. To provide important information essential for the directors’ performance of duty such as the Articles of Association, SCG’s directors handbook, the handbook for directors of listed companies, and summary of operating results, for use as quick reference.

3. To arrange for a meeting with the Chairman and directors and the executives or head of each function to stay informed and make queries about SCG’s business in depth.

Moreover, SCG encourages all members of the Board and the top executives to attend various seminars and courses beneficial to their responsibilities, allowing them to constantly meet and exchange opinions with directors and top executives of different organizations. Some of these courses are organized by the SCG Human Capital Institute, and some by governmental agencies or independent organizations, such as the Thai Institute of Directors Association. The SEC requires directors of all listed companies to complete at least one of the following training courses: Director Certification Program (DCP), Director Accreditation Program (DAP) or Audit Committee Program (ACP). Experience gained from these courses is useful to SCG’s development.

To support the Board’s responsibilities, SCG has assigned the secretary to the Board and corporate

secretary to work in coordination with the Board and the top executives. In addition, the Corporate


Secretary Office is responsible for overseeing the legal matters, relevant standard practices and activities of the Board to ensure implementation of the Board’s resolutions.

9.2 The Sub-committees

The Board has further established the Audit Committee, Governance and Nomination Committee, Remuneration Committee, and CSR Committee for Sustainable Development to be responsible for their specific areas and report directly to the Board for its consideration or reference. The Board of Directors is entitled to form other sub-committees to handle any specific situations as seen appropriate. In this regard, SCG put in place its Charter of the Board of Directors and Charter of the Sub-committees specifying rights and duties, which is published on the Company’s website. Moreover, an evaluation of the performance of the Board of Directors and Sub-committees and review of their operational results are conducted at least once a year. In 2013, the same performance evaluation forms of the Board of Directors, the Sub-committees, and the Chairman as in 2012 were used with slight modification to the performance evaluation forms for the Audit Committee which was revised in 2013.

1) The Audit Committee

The Audit Committee comprises four independent directors, all of whom are well accepted and have a full understanding of, and experience in, accounting or finance. Mr. Tarrin Nimmanahaeminda and Mrs. Tarisa Watanagase, with their extensive knowledge and experience, are responsible for reviewing the reliability of the financial statements. The Audit Committee members’ duties include a review to ensure that operations have been carried out in accordance with the Company’s Articles of Association as well as the laws and regulations of compliance-related agencies. Moreover, the Committee is committed to promoting the advancement of SCG’s financial and accounting report system to meet international standards and to ensure that the Company has an appropriate, modern and efficient internal control system, internal audit system and risk management system. The Audit Committee acts and expresses opinions independently. The Audit Office with Mr. Anuwat Jongyindee as its Director acts as an operations unit reporting directly to the Audit Committee. The Audit Committee also consults regularly with external auditors, consultants and specialists in the areas of law and accounting. The Audit Committee must set up meetings with the Company’s external auditor, which exclude the management, at least once a year in order to hear their comments. In addition, the Committee may seek external consultation and professional advice from independent consultants or specialists, as deemed appropriate, at the Company’s expense.

The Audit Committee of the Company comprises the following four members:

1. Mr. Tarrin Nimmanahaeminda Chairman 2. Mr. Pricha Attavipach Member 3. Mr. Pramon Sutivong Member


4. Mrs. Tarisa Watanagase Member

The Audit Committee’s Term on Board

The Audit Committee is subject to a three-year term. The directors must retire from office by rotation at the Annual General Meeting of Shareholders. Nevertheless, a retiring director is eligible for re-election.

Scope of Authority of the Audit Committee

The Audit Committee is authorized to fulfill the following duties: 1. Check that the Company has an appropriate financial reporting system and disclosure of

information in its financial statements in accordance with the legally defined accounting standard, with transparency, correctness, and adequacy.

2. Promote the development of financial reporting systems in compliance with international accounting standard.

3. Check that the Company has appropriate and effective internal control and internal audit systems according to internationally accepted approaches and standards.

4. Check that the Company has in place preventive operation system to enhance operating effectiveness and efficiency.

5. Check the corporate risk management system. 6. Check that the Company is in full compliance with the Securities and the Stock Exchange Law

and other laws relating to the Company’s business. 7. Check the report on dishonesty, establish preventive measures and check the Company’s

whistleblowing process. 8. Check the correctness and effectiveness of the information technology system relating to internal

control, financial reports, and risk management and suggest updates and improvements as needed.

9. Consider connected transactions or those having possible conflict of interest to ensure compliance with all pertinent laws and requirements of the Stock Exchange of Thailand.

10. Check that the performance assessment, both as a whole and self-assessment, of the Audit Committee is made annually.

11. Review and comment on operations of the Audit Office and coordinate with the Company’s auditor.

12. Prepare the Audit Committee’s report to be disclosed in the Company’s Annual Report and duly signed by the Chairman of the Audit Committee and containing opinions on various matters as required by the Stock Exchange.


13. Consider, select, propose the appointment and remuneration of, and assess the efficiency of the Company’s independent auditor.

14. Organize meetings with the Company’s auditor, without the attendance of management, at least once a year.

15. Check that performance assessment of the Audit Office is in compliance with international standards.

16. Consider and approve the audit plan, budget, and manpower of the Audit Office. 17. Provide comments on the appointment, removal, transfer, or dismissal of the Director of the

Internal Audit Office. 18. Consider the independence of the Audit Office based upon the scope of work, reports, and line

of command. 19. Review the self-assessment about anti-corruption measures which have been checked and

assessed by the Audit Office to ensure that the Company has the anti-corruption mechanisms in place as reported in the self-assessment form of the Thai Institute of Directors Association (IOD).

20. Perform other actions as required by law or as assigned by the Board of Directors.

To fulfill its duties under its scope of authority, the Audit Committee is authorized to call for and order management, heads of offices, or employees concerned to present opinions, attend meetings, or submit necessary documents. In addition, the Committee may seek independent opinion from professional consultants as deemed appropriate, at the Company’s expense.

The Audit Committee performs duties within its authority and responsibilities under the order of the Board of Directors. The Board of Directors is responsible for the Company’s operations and is directly accountable to shareholders, stakeholders, and the public.

Responsibilities of the Audit Committee 1. In case the Audit Committee is informed by the auditor about suspicious behavior of directors,

managers or persons responsible for business operation of the Company, which may violate paragraph 2 of Section 281/2, Section 305, 306, 308, 309, 310, 311, 312 or 313 of the Securities and Exchange Act, the Audit Committee is to investigate the case and submit a preliminary report to the Securities and Exchange Commission (SEC), as well as to the auditor, within 30 days of the date it is informed.

2. Upon finding or having doubt about the following actions or transactions, which may significantly affect the financial position and performance of the Company, the Audit Committee is to report such events to the Board of Directors in order to find remedy within a period deemed appropriate by the Audit Committee:

(1) Transactions which may cause conflicts of interest.


(2) Fraud or irregular events or material flaws in the internal control system. (3) Violations of laws pertaining to Securities and the Stock Exchange, the regulations of the

Stock Exchange, or laws pertaining to the Company’s business.

Should the Board of Directors or management fail to remedy the issues within the timeline specified by the Audit Committee, a member of the Audit Committee may report the issue to the SEC or the SET.

2) The Governance and Nomination Committee

The Governance and Nomination Committee comprises five of the Company’s directors, all of whom are nonexecutive directors. The chairman of the Governance and Nomination Committee is an independent director. The Committee is responsible for proposing, revising, and supervising the Company’s corporate governance matters. The Committee is also in charge of the nomination of persons qualified to become directors to replace those who are retired by rotation, or as the case may be. In addition, the Committee reviews the performance evaluation system of the Board of Directors and other committees, as well as the succession plan for the position of president.

The Governance and Nomination Committee of the Company comprises the following five members: 1. Mr. Sumet Tantivejkul Chairman 2. Mr. Snoh Unakul Member 3. Mr. Panas Simasathien Member 4. Mr. Arsa Sarasin Member 5. Mr. Tarrin Nimmanahaeminda Member

The Governance and Nomination Committee’s Term on Board

The Governance and Nomination Committee is subject to a three-year term. The Directors must retire from office by rotation at the Annual General Meeting of Shareholders. Nevertheless, a retiring director is eligible for re-election.

Scope of Authority of the Governance and Nomination Committee

The Governance and Nomination Committee is authorized to fulfill the following duties:

Corporate Governance 1. Draw up the scope and policy of SCG’s corporate governance and present them to the Board of

Directors. 2. Make recommendations on the practice of SCG’s corporate governance and give advice on

corporate governance to the Board of Directors.


3. Oversee and monitor the performance of the Company’s Board of Directors and the management to ensure their compliance with SCG’s corporate governance policy.

4. Review the practice of corporate governance within SCG to ensure it is appropriate for the Company’s business operations and consistent with international best practices and make recommendations to the Board of Directors for further improvement and keeping it up-to-date.

5. Review the independence of t h e Board of Directors, as well as any potential conflicts of interest in the performance of its duties.

6. Review the appropriateness of retaining the directorship should there be any change in a director’s qualifications.

7 Recommend methods to assess the performance of the Board of Directors and the committees and review them annually. In addition, follow up and conclude the assessment results to the Board of Directors for acknowledgement and utilize such information for the improvement of work efficiency and enhancement of the directors’ knowledge and capabilities.

8. Report regularly on progress and performance results to the Board of Directors after every meeting of the Governance and Nomination Committee.

9. Review and give advice to the Board of Directors on the structure, roles and responsibilities, and practices of the Board of Directors and the committees. Should there be an alteration to the Charter of the Board of Directors and the committees, the recommendations in keeping it up-to-date. Governance and Nomination Committee shall review and make appropriate

10. Review the performance appraisal of the Governance and Nomination Committee on a regular annual basis as a whole and as self-assessment.

11. Perform other duties as assigned by the Board of Directors.

Nomination of Directors and Top Executives

1. Specify qualifications of any person to be nominated for directorship and lay down the director nomination process to replace the retiring director, considering diverse candidates with skills, experience, gender and expertise useful for the Company.

2. Identify qualified candidates to replace directors retiring at the end of their terms, or whatever the case may be and submit a list of nominees to the Board of Directors and/or Shareholders’ Meeting for resolution.

3. Recommend a plan for succession of the Company’s President & CEO and the top executives to the Board of Directors for consideration.



To fulfill its duties under its scope of authority, the Governance and Nomination Committee is authorized to call for and order the management, heads of offices or employees concerned to give opinions, attend meetings or submit necessary documents. In addition, the committee may seek external consultation from independent consultants or experts in various fields, as deemed necessary and appropriate, at the Company’s expense.

3) The Remuneration Committee

The Remuneration Committee comprises three of the Company’s directors. The Committee is responsible for monitoring and studying changes and trends in the remuneration of the Board of Directors and SCG top executives to suggest remuneration policies that can motivate these executives to lead the Company toward success as well as to retain smart and ethical employees within the organization.

The Remuneration Committee of the Company comprises the following three members: 1. Mr. Chumpol NaLamlieng Chairman 2. Mr. Yos Euarchukiati Member 3. Mr. Pramon Sutivong Member

The Remuneration Committee’s Term on Board

The Remuneration Committee is subject to a three-year term. The Directors must retire from office by rotation at the Annual General Meeting of Shareholders. Nevertheless, a retiring director is eligible for re-election.

Scope of Authority of the Remuneration Committee

The Remuneration Committee is authorized to fulfill the following duties: 1. Propose guidelines and methods for remuneration to be paid to the Board of Directors and the

committees appointed by the Board of Directors, including bonus and attendance fee. 2. Recommend the policy on SCG management incentives including salary and annual bonus, in line

with the Company’s operating results and the performance of each top executive. Whenever it deems appropriate, the Committee shall consider the hiring of consulting firms to advise on project implementation.

3. Assess the performance of the President & CEO on an annual basis in order to determine his/her remuneration before proposing the Board of Directors for approval.

4. Assess the performance of each SCG top executive on an annual basis, based on the recommendation of the President & CEO, in order to determine his/her remuneration before proposing this to the Board of Directors for approval.

5. Consider the annual budget for the salary increase, changes of wage and compensation, and bonus of top executives before proposing to the Board of Directors.


6. Review, study, and track regularly the changes and trends in remuneration for the Board of Directors and SCG top executives in order to propose for the approval of the Board of Directors.

7. Consider the remuneration of the Board of Directors and SCG top executives, as compared to the remuneration offered by other listed companies operating in the same business, to ensure that SCG retains its leadership in that industry and to motivate them to foster the Company’s continuing development.

8. Report regularly on progress and performance results to the Board of Directors after every meeting of the Remuneration Committee.

9. Assess the performance of the Remuneration Committee and report the assessment results to the Board of Directors for acknowledgement.

10. Review and recommend for the Board of Directors’ approval if there may be any alteration to the Charter of the Remuneration Committee in keeping it applicable and up to- date.


To fulfill its duties under its scope of authority, the Remuneration Committee is authorized to call for and order the management, heads of offices or employees concerned to give opinions, attend meetings or submit necessary documents. In addition, the Committee may seek external consultation from independent consultants or experts in various fields, as deemed necessary and appropriate, at the Company’s expense.

4) The CSR Committee for Sustainable Development

The CSR Committee for Sustainable Development comprises five of the Company’s directors and three top executives. The Committee is responsible for establishing policies and guidelines on CSR activities for sustainable development, proposing the setting of annual CSR budget as well as monitoring the Committee’s performance and reporting to the Board of Directors.

The CSR Committee for Sustainable Development comprises the following eight members: 1. Mr. Snoh Unakul Chairman 2. Mr. ChirayuIsarangkun Na Ayuthaya Member 3. Mr. Sumet Tantivejkul Member 4. Mr. Yos Euarchukiati Member 5. Mr. Kan Trakulhoon Member 6. Mr. Kajohndet Sangsuban Member 7. Mr. Roongrote Rangsiyopash Member 8. Mr. Tanawong Areeratchakul Membe


9.3 Nomination and Appointment of Directors and Top Executives

Independent Directors

The six independent directors are Mr. Sumet Tantivejkul, Mr. Pricha Attavipach, Mr. Arsa Sarasin, Mr. Tarrin Nimmanahaeminda, Mr. Pramon Suthiwong and Mrs. Tarisa Watanagase

Qualifications of Independent Directors of SCC

On January 30, 2013, the Company revised the qualifications of independent directors to be more stringent than those prescribed by the Office of Securities and Exchange Commission. These qualifications require that an independent director:

1. Shall not hold shares exceeding 0.5% of the total number of voting shares of the Company, its parent company, subsidiary, associate, major shareholder or controlling person, including shares held by related persons of such independent director.

2. Shall neither be nor have ever been a director with management authority, employee, staff member, advisor who receives a salary or is a controlling person of the Company, its parent company, subsidiary, associate, same-tier subsidiary company, major shareholder or controlling person unless the foregoing status has ended not less than two years prior to the date of becoming a director. Such prohibitions shall not, however, include cases where the independent director previously served as a government officer or an advisor to a government agency which is a major shareholder or controlling person of the Company.

3. Shall not be a person related by blood or legal registration as father, mother, spouse, sibling, or child, including spouse of child of other directors, of an executive, major shareholder, controlling person, or person to be nominated as director, executive or controlling person of the Company or its subsidiary.

4. Shall neither have nor have ever had a business relationship with the Company, its parent company, subsidiary, associate, major shareholder or controlling person, in a manner that may interfere with his/her independent judgement, and neither is nor has ever been a significant shareholder or controlling person of any person having a business relationship with the Company, its parent company, subsidiary, associate, major shareholder or controlling person, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director.The term “business relationship” in the preceding paragraph shall include any normal business transaction, rental or lease of immovable property, transaction relating to assets or services or granting or receipt of financial assistance through receiving or extending loans, guarantees, providing assets as collateral, and any other similar actions, which result in the applicant or his/her counterparty being subject to indebtedness payable to the other party in the amount of 3% or more of the net tangible assets of the applicant or 20 Million Baht or more,


whichever is lower. The amount of such indebtedness shall be calculated according to the method for calculation of value of connected transactions under the Notification of the Capital Market Supervisory Board governing rules on connected transactions. The consideration of such indebtedness shall include indebtedness incurred during the period of one year prior to the date on which the business relationship with the person commences.

5. Shall not be nor have ever been an auditor of the Company, its parent company, subsidiary, associate, major shareholder or controlling person, and not be a significant shareholder, controlling person, or partner of an audit firm which employs auditors of the Company, its parent

company, subsidiary, associate, major shareholder or controlling person, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director.

6. Shall not be nor have ever been a provider of any professional services including legal advisor or financial advisor who receives service fees exceeding 2 Million Baht per year from the Company, its parent company, subsidiary, associate, major shareholder or controlling person, and not be a significant shareholder, controlling person or partner of the provider of professional ser vices, unless the foregoing relationship has ended not less than two years prior to the date of becoming an independent director.

7. Shall not be a director appointed as representative of the Board of Directors, major shareholder or shareholder who is related to a major shareholder of the Company.

8. Shall not undertake any business in the same nature and in competition with the business of the Company or its subsidiary, nor be a significant partner in a partnership or director with management authority, employee, staff member or advisor who receives salary or holds shares exceeding 1% of the total number of shares with voting rights of another company which undertakes business in the same nature and in competition with the business of the Company or its subsidiary.

9. Shall be able to attend meetings of the Board of Directors and make independent judgment. 10.Shall not have any other characteristic that limits his or her ability to express independent opinions

regarding the Company’s operations. 11.Shall be able to look after the interests of all shareholders equally. 12.Shall be able to prevent conflicts of interest. 13. Shall not have been convicted of violating security or stock exchange laws, financial institution

laws, life insurance laws, general insurance laws, anti-money laundering laws or any other financial law of a similar nature, whether Thai or foreign, by an agency with authority under that certain law. Such wrongful acts include those involved with unfair trading in shares or perpetration of deception, fraud or corruption.


14.If qualified according to all items 1-13 specified above, the independent director may be assigned by the Board of Directors to make decisions relating to business operations of the Company, its parent company, subsidiary, associate, same-tier subsidiary or any juristic person with a conflict of interest on the basis of collective decision, whereby such actions of the independent director are not deemed partaking of management.

In 2013, all the six Independent Directors neither involved in any business nor provided any professional service of which its value exceeded the specification in the Notification of Capital Market Supervisory Board Re: Application for and Approval of Offer for Sale of Newly Issue Shares.

Nomination and Appointment of Directors and Top Executives

Nomination of Board Members

The Governance and Nomination Committee is responsible for selecting qualified candidates to replace the directors who are retiring on rotation at the end of their terms, or whatever the case may be, and proposing a list of nominees to the Board for resolution at the Shareholders’ Meeting. The Governance and Nomination Committee selects the candidates with credentials in a wide range of professions, excellent leadership, breadth of vision, a proven record of ethics and integrity, and who are able to share their opinions independently. The qualities of the candidates are defined by considering the necessary skills that the Board of Directors is still lacking in. Furthermore, the Governance and Nomination Committee shall consider the personal qualities of the candidates proposed for selection as Board members as regards:

Integrity and accountability.

Informed judgment

Maturity and stability, being a good listener, and the ability to express individual, independent opinion.

Commitment to work principles and professionalism.

Special expertise and certain knowledge required for the Board are also taken into consideration, so that the Board can formulate strategies and policies and oversee implementation of the strategies effectively.

Rules and Procedures for the Election of Directors 1. Prior to the Annual General Meeting of Shareholders, the Governance and Nomination Committee

proposes to the Board the names of persons to replace directors who are retired by rotation. The nominees will then be listed for consideration for election during the Meeting. All shareholders have an equal right to propose other candidates. Authority to select directors rests with the shareholders.


2. A shareholder shall have one vote for each share he holds or represents. 3. At the election of Directors, the shareholders shall vote for each individual candidate nominated

for Directors, but not exceeding the number of Directors required for that election. The vote shall not be distributed.

4. The candidates shall be ranked in descending order from the highest number of votes received to the lowest, and shall be appointed as directors in that order until all of the director positions are filled. If the votes cast for the candidates in descending order are tied, which would otherwise cause the number of directors to be exceeded, the chairman of the Meeting shall cast the deciding vote.

At the 2013 Annual General Meeting of the Shareholders, the four board members who were due to retire by rotation were 1) Mr. Chirayu Isarangkun Na Ayuthaya, 2) Air Chief Marshal Kamthon Sindhvananda, 3) Mr. Tarrin Nimmandhaeminda, and 4) Mr. Pramon Suthiwong. Air Chief Marshal Kamthon Sindhvananda expressed his intention of not being re-elected as a Director of the Company.

According to the Company’s Articles of Association, the one-third of directors who have served longest must retire from office. In the nomination process, each director proposes appropriate persons to the Governance and Nomination Committee. The Committee, which excluded the members having special interests, considered a total of ten nominees, nominated by each director. Four of them were retiring directors according to the Agenda, and seven were newly qualified nominees. The Committee then nominated four qualified nominees, namely, 1) Mr. Chirayu Isarangkun Na Ayuthaya, 2) Mr. Tarrin Nimmanahaeminda, 3) Mr. Pramon Sutivong, and one new candidate, namely Mrs. Tarisa watanagase. The Shareholders’ Meeting on March 27, 2013 resolved to elect all of the four candidates as Directors of the Company by a simple majority vote of the total votes of Shareholders attending the Meeting and having the right to vote.

Nomination and Succession Plan for Top Executive Positions at SCG

SCG has put in place a proper and transparent nomination process for key management positions at every level in order to ensure that all of our top executives are professionals who perform their duties independently from the major shareholder and other shareholders. The succession plan for the president and top executives is carried out by the Governance and Nomination Committee and considered by the Board of Directors. SCG’s nomination process commences with the process of recruiting candidates who possess both talent and integrity. Young talents are the focus of recruitment, so that they can be groomed to become leaders in the future. Qualified employees will undergo a high potential assessment and pursue development courses following individual career development plan. These talents will be assigned challenging tasks, and their positions will be rotated periodically in order to further develop their leadership skills and all-round knowledge in every area of SCG’s business. The plan is implemented at every level of employment to ensure that staff members are ready to fill any positions that become vacant.


9.4 Oversight of Associates, Jointly-Controlled Entities, and Other Companies’ Operations

For SCG to be recognized as an innovative organization and a role model in corporate governance and sustainable development in ASEAN in line with SCG vision, it is imperative that SCG put in place effective and efficient corporate governance, risk management, and internal controls that conform to international standards both in operation and information technology system. As a consequence, to ascertain that the oversight of associates, jointly-controlled entities’ operations aligns with the operating policies prescribed by the Board of Directors, the Board has set forth mechanisms for overseeing and monitoring the management and operations of SCG’s associates and jointly-controlled entities. To that effect, the Board has empowered SCG President and/or President of each business unit to perform such duties as selecting representatives to be board members, executives, or controlling persons in those entities and reporting it to the Board.

The number of SCG’s representatives in each associate or joint-controlled entity is determined by the percentage of holding in that entity. However, to ensure proper oversight of SCG’s investment, SCG President and/or President of each business unit shall report on the operating results of the associates and jointly-controlled entities to the Board of Directors at the board meeting on a quarterly basis. A report on the operating results shall be submitted to the Board in the month when there is no board meeting.

Moreover, to enable SCG’s representatives to oversee the operations of associates and jointly-controlled entities properly and in compliance with the Company’s operation policies, SCG has prepared an authority manual prescribing the scope of authority, duties, and responsibilities of persons representing SCG as board members or executives in the associates and joint-controlled entities in establishing key business policies. The manual allows the representatives to operate with effectiveness more and efficiency. Constant revisions on such manual are made in consistent with changes in the associates and joint-controlled entities both in Thailand and overseas.

Mechanisms for overseeing disclosure of financial information and operating results; connected transactions between associates and/or between joint-controlled entities and related parties; disposal or acquisition of assets; or complete and accurate material transactions are stated in the regulations of the associates and joint-controlled entities transactions shall be in compliance with the rules and procedures stipulated by the announcement of the Stock Exchange of Thailand.

Apart from the authority manual adopted by the associates and joint-controlled entities in internal control, the Audit Committee, which is responsible for overseeing the Company’s effective internal controls, resolved that the associates and joint-controlled entities conduct business self-audit to promote the concept of pro-active risk management. This has prompted the need to streamline the internal controls in response to the emerging risks. The Internal Audit Office (reporting directly to the Audit Commitee is


tasked with providing consultancy on defining controls and monitoring procedures. For their parts, each business unit is required to submit a report on audit results to the Internal Audit Office for use in devising an audit plan and assessment of internal audit system. Such process aims to raise awareness of risks and internal controls among employees at all levels.

The key to effective and efficient operational management between SCG and other affiliates is the agreement on mutual understanding concerning issues such as separation of duty in management, the scope of authority , fair division of profit for all concerned parties. To that effect, SCG generated a Shareholders’ Agreement which stipulates SCG to respect the rights of its business partners with all due fairness and cooperates fully with the partners to ensure successful operations of the joint ventures.

9.5 Internal Information Control

The Board of Directors has established measures to control the use, and prevent misuse of internal information in writing and notified the involved persons, namely the Board of Directors, SCG’s top executives, and employees dealing with internal information, including their spouses and children who are minors. They are as follows:

All concerned persons are prohibited from Trading Company shares for a two-week period prior to release of the Company’s quarterly and annual financial statements, and for 24 hours after the release (“Blackout Period”).

Should they have knowledge of confidential information that could have any impact on the Company’s share price, they are prohibited from trading Company shares until 24 hours after the public disclosure.

The secretary to the Board and the corporate secretary will inform the Board of directors, SCG Executive Committee and related employees of the prohibition period not less than one week prior to such period.

In addition, the Board of Directors will monitor all required actions in accordance with the related measures. Any changes in the shareholding of a director or top executive must be reported in every Board of Directors’ meeting and disclosed in the Company’s annual report.

9.6 Audit fee

For the fiscal year 2013, the Siam Cement Public Company Limited and its subsidiaries paid an audit fee of 28.87 Million Baht to KPMG Phoomchai Audit Ltd., which the auditors worked for, and to persons or businesses related to the auditors and audit firm. This audit fee amount excluded the remuneration paid by associates.


In this regard, KPMG Phoomchai Audit Ltd. and its auditors do not have any relationships or interests involving the company, management, or major shareholders, including their related persons.

Audit fees for the year 2013

1. Annual audit fee for SCC’s financial statements. 250,000 Baht

2. Quarterly review fee and annual audit fee of 124 subsidiaries and consolidated financial statements.

28.62 Million Baht

3.Total audit fees of The Siam Cement Public Company Limited

and its subsidiaries

28.87 Million Baht

Non-audit fee

For this fiscal year, the subsidiaries paid a non-audit fee, which was for reviewing compliance with the conditions of the BOI Promotion Certificate amounting to 1.80 Million Baht and for consulting of merged companies amounting to 9.56 Million Baht, to the audit firm and persons or businesses related to the auditors and the audit firm.

Part 2 Management and Corporate Governance / 10. Corporate Social Responsibility The Siam Cement Public Company Limited 158

10. Corporate Social Resposibility

Details of SCG’s social responsibility activities are available in the annual Sustainability Report, which has been published each year at www.scg.co.th

http://www.scg.co.th/

Part 2 Management and Corporate Governance / 11.Internal Control and Risk Management

The Siam Cement Public Company Liminted 159

11. Internal Control and Risk Management

Internal control and risk management 1. Internal control

SCG’s vision is to be recognized as an innovative workplace, and a role model in corporate governance and sustainable development in ASEAN region. The Management recognizes that to become a leading organization, the Company must have efficient and effective corporate governance, risk management and internal control systems in accordance with international standards regarding operational practices and information technology systems. This is in compliance with Audit Committee policy which mandates that SCG’s internal control and internal audit applies with international standards as follows:

- Corporate Governance reference: Organization for Governance Economic Co-operation and Development (OECD)/Stock Exchange of Thailand (SET)/Thai Institute of Directors Association (IOD)

- Risk Management reference: COSO Enterprise Risk Management/ISO 31000 - Internal Control reference: COSO Internal Control-Integrated Framework/COBIT

The Management kept track of the modifications in COSO (The Committee of Sponsoring Organizations of Tradeway Commissions) Internal Control-Integrated Framework released in May, 2013. The Company evaluated SCG’s internal control processes and found that internal control of SCG is in accordance with COSO’s 5 components and 17 principles. In addition, SCG modified and developed tools to meet the changing of risks, and set proactive and preventive system for domestic and overseas businesses. In 2013, the Management approved relevant internal control principles or tools to be consistent with changes in risks as follows: 1.1 Compliance Practice Guideline

1.1.1 Overseas Compliance Guideline SCG expanded its investments in the ASEAN region, with a diversified investment

portfolio according to the appropriateness of each country e.g. establishing additional manufacturing plants, mergers and acquisitions, etc. The investments may involve various risks such as political, economic, social, legal, regulatory or environmental risks. To build awareness and reduce such risks, the Management established the Overseas Compliance Guideline for use as a reference manual for operations. In this regard, the Management set agenda for overseas companies in executive meetings to communicate and clarify the use of the Guidelines, and application to relevant laws, regulations and the culture of each



country. The Guideline comprises such details as objectives, compliance with laws and company regulations, key internal controls and concern points, as well as prohibited activities and lessons learned.

1.1.2 Approval Authority Manual The empowerment of authority to each management level ensures flexibility in

operations. The Approval Authority Manual is used as a reference manual to support the use of authority and management decisions at respective levels. In 2013, as business restructuring and the expansion of overseas investments, the Management reviewed the Approval Authority Manual to align the current operating conditions for companies in Thailand. In this regard, a new Approval Authority Manual for overseas companies is published, and workshops are carried out to clarify its use to management and employees.

1.1.3 Manual for the Control of the Development of Truck Scale Program SCG uses a scale for receiving raw materials or distributing a large quantity of

products. Apart from the accuracy of the scale, the scale program is also an important factor contributing to ensuring the accuracy of weighing details. To ensure accuracy, transparency and accountability of business transactions among SCG, business partners, and customers, the Management approved the Manual for the Control of the Development of Truck Scale Program to serve as a guideline for consideration of relevant risks and control points when developing the program. The Management also approved this program for copyright as SCG intellectual property.

1.2 Information Technology System Control At present, information technology (IT) is considered an important factor to support

business operations, as a facilitating tool and for gathering information to support decision-making in timely manner. In order to promote the consistent use of IT throughout SCG, the Management reviewed risks arising from diversified business expansions, rapidly changing technologies, security of IT network system, as well as the use of IT to support management for domestic and overseas businesses. As a result, SCG IT Governance Committee was established in 2013. The Committee is in charge of determining policy and guidelines for using information technology to attain maximum benefits in investment and share use of IT among all business units in Thailand and overseas, as well as supporting, promoting and monitoring important projects. The Committee also serves as a consultant to the sub-working group.

1.3 Developing continuous monitoring and continuous auditing systems for business units



SCG has developed continuous monitoring and continuous auditing system as a tool for analyzing, tracking and solving irregularities, as well as determining preventive measures which are critical in promoting an efficient internal control system.

1.4 Conducting Business Self Audit The Audit Committee, as a role for supervising the effectiveness of internal control,

mandates that Business Self Audit must be conducted to stimulate businesses to gain deeper insight into prevention of continuously changing risks. This may result in the need to change internal control processes to address such risks accordingly. The Audit Office provides consultancy regarding control processes and monitors throughout the process from the beginning to the sale of products and services, including after-sale service, by using the Value Chain concept. The Audit Office trains the Business Self Audit team to perform an audit efficiently and effectively in operation to determine whether established controls are sufficient. In the event of changes in risk, such controls must be changed to support the achievement of the Group’s objectives. The audit report must be submitted to the Audit Office as supporting information for future audit plan and the review of internal control systems. This process will install risks and internal controls mindset into employees at all levels of SCG.

1.5 Developing the Whistleblower System SCG earlier created a Whistleblower System to allow employees to report non-compliance with

code of conduct, rules, regulations and laws or fraudulent acts. The system promotes intensive adherence to ethics and sustainable development. In 2013, the Management therefore expanded this system to enable participation of other stakeholders apart from SCG employees, allowing stakeholders outside the Company to report dishonesty via https://whistleblower.scg.co.th/, or report such irregularities directly to the Independent Board of Directors or the Audit Committee, for further investigation and reporting to the Board of Directors respectively.

2. Internal Audit

The Audit Committee supervises the Audit Office to ensure that it works with independence, integrity, ethics and expertise in line with International Standards for the Professional Practice of Internal Audit (The Institute of Internal Auditors: IIA), and Information Technology System Auditing Standards (Information Systems Audit and Control Association: ISACA; Global Technology Audit Guide: GTAG). In addition, the Charter of Audit Committee and the Internal Audit Office charter clearly prescribe the mission, scope of work, authority, duties and responsibilities as well as the operating and auditing guidelines. Both charters are reviewed annually.



The Audit Committee approved the Medium Term Plan (2011-2013) of the Audit Office regarding achieving Global Internal Audit Excellence in 2013. To ensure professionalism in line with international standards, the Audit Committee also approved the Quality Assurance Review (QAR) by internal assessments based on IIA, ISACA, and GTAG guidelines. The Audit Office sent the surveys to all stakeholders, both internally and externally totaling 7 groups comprising 306 people. This survey included evaluation of IT audits’ quality which are beyond international standards. The evaluation consists of 2 primary principles which ensure compliance with international standards for functional and IT auditing practices, and evaluation of stakeholder satisfaction. The assessment has been completed by the Audit Office, with evaluation results exceeding designated criteria of 80% satisfaction.

In addition, the Audit Committee approved the training program of “Certified Professional Internal Audit of Thailand” for all auditors. The program aims to enhance knowledge and skills, as well as share experiences with qualified lecturers with credentials in a wide range of business fields. The Audit Office gathered the evaluation results from the internal assessment and training program to develop the internal audit professional skills as follows: 2.1 Creating High Value Services

Committed to enhancing audits to create high value services in a sustainable and continuous manner, assurance and consulting services are provided by the Audit Office independently and fairly to add value and enhance SCG’s operating performance. The high value services are as follows: 2.1.1 Implemented integrated audit by setting up a team dedicated to auditing special projects

with high risks. The team comprising both IT and functional auditors, jointly assessed risks, made suggestions on consolidating the work process, applied IT system to enhance audit efficiency and monitored any irregularities in the process of work.

2.1.2 Enhanced the Proactive Preventive System by using shortcomings identified from operations to develop an appropriate system and prevent recurring risks, and providing lessons learned for other functions, companies, or business units throughout SCG.

2.1.3 Focused on providing consultancy to each company. During internal auditing or assessment of internal control system with relevant parties, the Audit Office will provide information and suggestions on correct work procedures and the internal controls appropriate for the nature of each business; every time the Audit Office carried out an audit at a company and found points to be improved. After the consultation, the Audit Office followed up on these recommendations in order to prevent mistakes from recurring.

2.2 Establishing Local Internal Audit Teams



At present, SCG significantly expanded investments in various countries according to the Group’s vision to be an ASEAN sustainable business leader. To facilitate overseas operations and ensure efficiency in accordance with SCG policies, the Audit Committee approved to set up overseas audit teams to evaluate efficiency and effectiveness in governance, risk management, and internal control processes, which are under the authority of the Director of the Internal Audit Office in Thailand, including policy and practice. Audit teams in Thailand and overseas work collaboratively to create value added for SCG.

In 2013, SCG sent auditors from Thailand to work in collaboration with local audit teams, whose companies were acquired by SCG in Indonesia and Vietnam. The auditors will jointly assess risks, perform auditing, and create proactive preventive system. In addition, the Audit Office has recruited Vietnamese auditors and set up a medium-term plan for expansion to other companies and other countries in the future.

2.3 Compiling the Anti-corruption Audit Guideline SCG stresses the importance of conducting business with transparency, fairness, and in line

with clear practices, apart from laws and regulations. This includes the SCG Four Core Values, SCG Code of Conduct and SCG’s corporate governance policy etc. However, anti-corruption practices have not been clearly identified. In 2012, SCG joined the anti-corruption member network and became a certified company with Thailand’s Private Sector Collective Action Coalition Against Corruption on July 5, 2013. This was considered as an opportunity to review and official announce Anti-corruption Policy to external parties, as well as communicate to employees at all levels for their information and consistent practice. To create a reasonable level of confidence for the Management, the Audit Office provided the Anti-corruption Audit Guideline as internal audit practices, evaluating the possibility of corruption and the effectiveness of internal controls.

2.4 Information Technology Audit Due to SCG’s rapid expansion, the latest IT systems must be introduced to support business

operations. In developing core IT systems, a working group will be set up, comprising representatives from the Audit Office as consultants, with the responsibility of providing suggestions regarding the establishment of appropriate control processes and testing of control system. This is aimed to decrease problems or losses which may result from setting-up the IT system. After the setting-up is completed, an IT audit will carry out the testing once again.

2.5 Developing Auditors’ Competencies The results of the internal assessments on Quality Assurance Review (QAR) and training

program have been compiled by the Audit Office for the purposes of continuously developing the audit expertise as follows:



2.5.1 Reviewing Internal Audit Competency The Audit Office reviewed internal audit competency in 2013 to ensure that it remains in accordance with international standards, and the results of the Certified Professional Internal Audit of Thailand (CPIAT) training; auditors will conduct the evaluation together with their supervisors for setting Individual Development Plan (IDP).

2.5.2 Developing Internal Audit Global Knowledge - Kept track of best practices in good governance, risk management and internal controls

among leading audit firms both domestically and overseas, and applied appropriate practices in line with the nature of SCG’s business.

- Encouraged the internal auditors’ development through continuous training both internally and externally. They are equipped with knowledge, competence and expertise in internal auditing, as well as other skills needed by SCG.

- Promoted and supported the improvement of internal auditors’ expertise so as to become qualified as certified internal auditors or to attain other related professional certifications, based upon designated Key Performance Indicators (KPIs). In this regard, the Audit Office has achieved targeted goals of promoting at least 40% of total auditors to receive professional certification.

2.5.3 Development of Business Knowledge - Enhanced the internal auditors’ business acumen by inviting experts from each business

unit, as well as external experts, to give presentations sharing their knowledge about business and major changes in business, thereby empowering the internal auditors to better assess risks and to provide practical consultancy.

- Established a recruiting policy for internal auditors by transferring employees with knowledge and expertise in operations from other departments to serve as internal auditors and assigning them to other areas of the Group to acquire new knowledge.

- Organized knowledge-sharing activities to share interesting issues or material findings in audit work on a regular basis.

2.5.4 Information Technology Knowledge - Adopted IT knowledge to support the auditing process, and define red-flag warnings to

alert auditors to material risks in business operations. - Supported auditors’ capacity development, enabling them to possess audit knowledge,

skills and competency of international standards as well as to provide advice on IT management at an international standard.



The Audit Committee’s Report

The Audit Committee performed its duties independently, as assigned by the Board of Directors in accordance with the Audit Committee Charter to verify the adequacy of SCG corporate governance in line with the regulations and good practices guideline for the audit committees of the Securities and Exchange Commission and the Stock Exchange of Thailand as well as leading overseas organizations. These duties included reviewing the financial statements and corporate governance practices; assessing the risk management system, internal control and internal audit systems and fraud investigations; as well as proposing the appointment of external auditors.

In 2013, the Committee held 6 meetings and attendance by its members was 100%. The Committee considered an internal quality assessment (Quality Assurance Review) conducted by the Audit Office, which was evaluated and deemed in line with the medium-term plan regarding Global Internal Audit Excellence. The Committee also considered the review and establishment of Anti-Corruption policies, the development of information technology systems based on international standards and the development of the SCG Whistleblower System for external parties to report dishonesty via the SCG Website. In 2013, the Committee performed its duties as follows:

1. Review of Financial Statements The Audit Committee reviewed significant information in the quarterly and annual financial statements of the Company for the year 2013, as well as in the consolidated financial statements of The Siam Cement Public Company Limited and its subsidiaries, which were prepared according to Thai Financial Reporting Standards (TFRS) in conformance with the International Financial Reporting Standards (IFRS). The Committee reviewed material items and special items and obtained clarification from the external auditors, the Management, and the director of the Audit Office, confirming that the financial statements and the disclosure in the notes to the financial statements are in compliance with relevant laws and financial reporting standards. The Audit Committee therefore approved the Financial Statements, which were reviewed and audited by the external auditors without reservation. In addition, the Committee held a meeting with the external auditors without the presence of the Management so as to freely discuss important matters in the preparation of the financial statements and the disclosure of information in accordance with financial reporting standards and beneficial to users of these financial statements, as well as to hear whether there was any suspicious information indicating potential fraud following Section 89/25 of the Securities and Exchange Act B.E. 2535 as amended by the Securities and Exchange Act (No. 4) B.E. 2551. In 2013, the external auditors did not discover any material misstatements or indications of suspicious incidents. Furthermore, to confirm that no such incidents were found, the Audit Committee resolved that the President & CEO report the results received from all business units and relevant responsible parties to the Audit Committee. In 2013, the President & CEO confirmed



that no indications of such suspicious incidents were found. Thus, the preparation of the financial statements and consolidated financial statements was conducted with reliability and transparency, and the external auditors performed their duties independently and with verifiability.

2. Review of Corporate Governance The Audit Committee reviewed compliance with the SCG Code of Conduct and SCG Corporate Governance and revealed that directors and employees strictly followed prescribed principles. The Board of Directors consistently and continuously instilled a sense of ethics and morality into employees. This year, SCG continues to conduct its business in line with the principles of sustainable development and corporate governance. SCG compiled the “Anti-Corruption Policy” into a formal written document, and conducted an evaluation on Self – Evaluation Tool for Countering Bribery according to the specifications mandated by the Thai Institute of Directors Association. In this regard, Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) announced a resolution accepting The Siam Cement Public Company Limited as a certified company member of the CAC on July 5, 2013. Moreover, the Audit Committee strictly complied with the laws relating to securities and stock exchange laws of the Stock Exchange of Thailand as well as the laws relating to other business operations, especially in terms of connected transactions and those which might result in conflict of interest as well as the information regarding related directors. Such information was reviewed and disclosed to the Stock Exchange of Thailand in a timely manner.

The Audit Committee also conducted performance assessment of both as a whole and self-assessment, with a highly satisfactory result similar to the previous year. Matters assessed included the Committee’s preparedness, financial reports, meetings with the external auditors, review of connected transactions, disclosure of information in other reports, risk management and internal controls, the Audit Office, the Audit Committee meetings and the performance of the Audit Office and the Secretary.

3. Review of Assessment of Risk Management SCG this year reviewed the establishment of the SCG Risk Management Committee, in which SCG President & CEO serves as the Chairman, and SCG Management Committee as the members. The Committee considers structure and approves policy, risk management framework and risk management plans, as well as reviews risks and monitors SCG risk management on a quarterly basis while the Corporate Risk Management Unit is responsible for compiling risk reports and managing risks. SCG Management has engaged a consulting firm to conduct enterprise risk management through the review and adaptation of the Company’s entire risk management framework. New risk categories were identified and established while risk appetites were stipulated to ensure that those risks were managed to acceptable level. This was communicated to all relevant parties to enhance understanding and establish a risk culture while encouraging all members within the Company to recognize that risk management is a shared responsibility among management and employees of all levels. In addition, the Audit Committee reviewed the assessment of risk management of all business units, risks



arising from major changes in circumstances of the world and regional economies, as well as risks arising from overseas investment and potential business disruptions. The Committee conducted this review on a quarterly basis according to the principles outlined in the SCG risk management manual. The Committee took into consideration the internal and external risk factors, likelihood levels, impacts, and management to ensure that significant risks remained at acceptable levels. Furthermore, the Committee reviewed risk warning signals in compliance with established criteria.

4. Review of Internal Control and Internal Audit Systems The Audit Committee reviewed the results of the internal control system assessment which was reported by the Audit Office on both a monthly and quarterly basis. The results showed that these systems are appropriate to the Company’s business operations. This corresponds to the external auditor’s opinion that no material deficiencies impacting the Company’s financial statements were found. The Management attributes importance to the Proactive Preventive System. In this regard, the SCG Business Self Audit principle was expanded from control self assessment that was further consolidated to enable the business units to monitor and follow up work by themselves. This will enable business units to assess anticipated risks and set forth guidelines to mitigate effects across the entire value chain, including focusing on mitigating risks from overseas investments. The Overseas Compliance Guideline was therefore compiled to strengthen the preventive system which includes fraud prevention guidelines for each operating system. The Audit Office, together with the Corporate Information Technology and Business Continuity Management Unit, assessed SCG’s IT internal control and governance. Results were incorporated as plans for future development. In addition, the Audit Office, in collaboration with business units in SCG, further developed the continuous monitoring and continuous auditing system to support businesses in governance of operations within their responsibilities, and enable the auditor to use such information in the audit process. Workshops were organized for business units by using material findings as case studies to allow the persons in charge at all levels to gain a better understanding about the risks, impacts, and important internal controls involved in each step of operations.

Regarding the internal audit, the Audit Committee reviewed the Audit Committee Charter and the Internal Audit Office Charter on an annual basis, to ensure its accordance with the risks and SCG’s current operating environment for adoption as a practical guide. This year, the Audit Committee approved conducting an internal quality assessment (Quality Assurance Review) by the Audit Office, as an indicator of Global Internal Audit Excellence’s achievement, using guidelines from The Institute of Internal Auditors (IIA), an internationally recognized institute for internal auditing, and ISACA/COBIT, internationally recognized agencies for IT auditing. The evaluation was conducted by the survey of 7 target stakeholder groups (transcending IIA standards which required only 2 target groups). The results of this evaluation exceeded target objectives of 80%. The Audit Committee reviewed the operations of the Audit Office according to the approved medium-term plan and annual plan. This review showed that established targets and key performance indicators were achieved. With regard to audit development, the Audit Office emphasized



leveraging the competency of auditors as well as developing audit tools in accordance with the International Standards for the Professional Practice of Internal Auditing of the IIA, and world-class internal audit practices. Such development also pertains to internal auditors of SCG’s foreign companies commencing in Indonesia and Vietnam in order to foster audit practices in line with those of SCG.

5. Review of Fraud Investigations This year, SCG further developed a Whistleblower System to enable external parties to report dishonesty other than receiving dishonesty reports from employees, and also improved the linkage of both systems to allow reports on dishonesty via www.scg.co.th (beginning at the end of 2013). In 2013, 10 cases were filed by employees via the Whistleblower System. All of them have been investigated, of which 2 cases were found as fraud cases but the amount of financial impact was insignificant. Learning from such cases was adapted to determine fraud prevention guidelines. In addition, the Audit Committee reviewed the results of fraud investigations on a monthly and quarterly basis. The Audit Committee also reviewed preventive measures and fraud prevention guidelines for each work process. Fraud audit based on risk assessment and investigation protocols to ensure that they are up-to-date and appropriate for continuous business operations.

6. Appointment of the External Auditor and Review of the Audit Fee for 2014 KPMG Phoomchai Audit Ltd. has been selected and appointed as the external auditor of SCG for the three-year period from 2012 through to 2014, from a selection process of 4 auditors. Based on the satisfactory results of their performance appraisal, and their qualification as independent auditors, the external auditors possess professional expertise, knowledge and experience in auditing SCG’s businesses therefore the Audit Committee recommended them to the Board of Directors. The Board of Directors agreed to seek approval at the Shareholders’ Meeting for the appointment of Mr. Winid Silamongkol, Certified Public Accountant Registration No. 3378, and/or Ms. Sureerat Thongarunsang, Certified Public Accountant Registration No. 4409, and/or Ms. Porntip Rimdusit, Certified Public Accountant Registration No. 5565; all of KPMG Phoomchai Audit Ltd.; as the Company’s auditors for the year 2014; approval of the Company’s audit fee for the fiscal year 2014 amounting to 0.25 Million Baht and acknowledgement of annual and quarterly audit fees for SCC and subsidiaries and consolidated financial statements amounting to 28.33 Million Baht.

On behalf of the Audit Committee

Tarrin Nimmanahaeminda Chairman of the Audit Committee

Part 2 Management and Corporate Governance / 12. Connected Transactions The Siam Cement Public Company Limited 170

12. Connected Transactions

The Board of Directors emphasizes the need for careful review and consideration before granting approval for connected transactions, related transactions or transactions that may cause conflict of interest. The SCG Code of Conduct has set forth a policy regarding such transactions as follows:

Connected Transactions between the Company and its Subsidiaries SCG comprises a large number of companies whose businesses are bound to conduct transactions with one another in such ways as providing services, trading raw materials and products, or providing financial support, technical assistance, human resources, etc. In doing business or performing duties related to such matters, all employees and parties concerned are required to comply with the law, the rules and regulations of government agencies, as well as the rules of SCG in addition to any criteria or conditions prescribed by local communities.

Transactions with Outside Entities In undertaking transactions with outside entities or other companies, the Company shall proceed by implementing fair methods and complying with the terms and conditions as agreed upon honestly. The Company shall also avoid making transactions that may cause trouble or damage to outside parties. The Company has specified guidelines and procedures on how to consider the granting of approval for connected transactions, related transactions or transactions with potential conflict of interest, to ensure the Company’s best interests and in accordance with rules and regulations as prescribed by law. The directors and management shall disclose to the Company in advance whether they hold any stakes involving potential conflict of interest. The Company, in turn, shall consider the appropriateness of any transaction, and in cases where such transactions need approval in accordance with regulations and procedures prescribed by law, the management shall propose such matters to the Board of Directors or at the Shareholders’ Meetings, and shall disclose the information to investors in a transparent manner. Under no circumstances shall the directors or management concerned be allowed to participate in the process of considering approval. However, in accordance with the SCG Code of Conduct and SCG Corporate Governance Policy, SCG has revised its Stakeholder Engagement Policy, making it clearer. Transactions will be based on a market price mechanism, which is a standard and efficient tool used throughout the Company’s business operations.


Future Connected Transaction Connected transactions in the future will continue to be based on the traditional business practices and will follow the policy of the market determining prices in negotiated transactions, as in the past. No special benefit will accrue either to companies or individuals from connected transactions.

Connected Transactions in 2013 The Company follows a policy to comply with the Notification of Capital Market Supervisory Board re:

Rules on Connected Transactions and the Notification of the Board of Governors of the Stock Exchange of Thailand re: Disclosure of Information and Other Acts of Listed Companies Concerning the Connected Transactions, as well as laws, regulations, notifications or order relating to the execution of connected transaction. In 2013, the Company did not engage in the transactions with connected persons which complied with the said notifications.


Details of connected transactions between the Group and a company or a person which/who may have a potential conflict.

Total Amount (Million Baht)Type of Connected companies Direct SCC SCG SCG SCG Other PricingTransaction / Relationship / Indirect Cement- Chemicals Paper policy

Holding Building(%) Materials

1. Transactions with associates and joint ventures1.1 SCG Cement-Building MaterialsService - 98 - - 6 Market price

expenses The Siam Gypsum Industry (Saraburi) Co., Ltd. 29 applied with

and others The Siam Gypsum Industry (Songkhla) Co., Ltd. 29 third party

Sales - 2,951 - - - Market price

Sekisui-SCG Industry Co., Ltd. 49 applied with

Noritake SCG Plaster Co., Ltd. 40 third party

The Siam Gypsum Industry (Saraburi) Co., Ltd. 29 transactions

The Siam Gypsum Industry (Songkhla) Co., Ltd. 29

The Siam Gypsum Industry Co., Ltd. 29

Purchases - 120 77 495 - Market price

Sekisui-SCG Industry Co., Ltd. 49 applied with

The Siam Gypsum Industry (Saraburi) Co., Ltd. 29 third party

The Siam Gypsum Industry (Songkhla) Co., Ltd. 29 transactions

Loans from 143 100 - - - Agreed

Mariwasa Holdings, Inc. 40 interest

PT M Class Industry 28 rate

Service - 684 - - - Market price

income Jumbo Barges and Tugs Co., Ltd. 32 applied with

third party

transactions

1.2 SCG Chemicals

Service - 84 1,769 - 24 Market price

expenses Siam Mitsui PTA Co., Ltd. 50 applied with

and others Siam Polyethylene Co., Ltd. 50 third party

Rayong Terminal Co., Ltd. 50 transactions

Siam Synthetic Latex Co., Ltd. 50

Thai MMA Co., Ltd. 47

Grand Siam Composites Co., Ltd. 46

Siam Tohcello Co., Ltd. 45

Long Son Petrochemicals Co., Ltd. 44

Mehr Petrochemical Company (P.J.S.C.) 39

Bangkok Synthetics Co., Ltd. 49

Thai PET Resin Co., Ltd. 20

Sales - - 12,739 - - Market price

Siam Polyethylene Co., Ltd. 50 applied with

Siam Synthetic Latex Co., Ltd. 50 third party

PT Chandra Asri Petrochemical Tbk 30 transactions

Bangkok Synthetics Co., Ltd. 49

Thai PET Resin Co., Ltd. 20

Purchases - 34 53,704 13 - Market price

Siam Polyethylene Co., Ltd. 50 applied with

Bangkok Synthetics Co., Ltd. 49 third party

Siam Styrene Monomer Co., Ltd. 50 transactions

Grand Siam Composites Co., Ltd. 46

PT Styrindo Mono Indonesia 30

SCG Plastics (China) Co., Limited 58

Nawacam Co., Ltd. 36


Total Amount (Million Baht)Type of Connected companies Direct SCC SCG SCG SCG Other PricingTransaction / Relationship / Indirect Cement- Chemicals Paper policy

Holding Building(%) Materials

Thai MMA Co., Ltd. 47

Siam Synthetic Latex Co., Ltd. 50

PT Chandra Asri Petrochemical Tbk 30

Binh Minh Plastics Joint Stock Company 19

Mitsui Advanced Composites (Zhongshan) Co., Ltd. 20

Loans from - - 46 - - Agreed

GTC Technology International, LP 25 interest

rate

Guarantees 1,147 - 105 - - Contract

Siam Tohcello Co., Ltd. 45 rate

Mehr Petrochemical Company (P.J.S.C.) 39

1.3 SCG Paper

Purchases - - - 397 - Market price

Siam Toppan Packaging Co., Ltd. 48 applied with

third party

transactions

1.4 Other

Service 589 392 124 98 2 Market price

income IT One Co., Ltd. 20 applied with

third party

transactions

Service 1,044 65 - - 5 Market price

expenses Siam Kubota Corporation Co., Ltd. 40 applied with

and others third party

transactions


Siam Kubota Corporation Co., Ltd. 40 applied with

third party

transactions

Purchases - 105 - 26 - Market price

Siam Kubota Corporation Co., Ltd. 40 applied with

The Nawaloha Industry Co., Ltd. 30 third party

The Siam Nawaloha Foundry Co., Ltd. 25 transactions

2. Transactions with other companies which have SCG executives holding 2.1 Other

Service - 123 5 - 347 Market price

expenses Siam Yamato Steel Co., Ltd. 10 applied with

and others Mr. Chaovalit Ekabut / Director third party

Mr. Tanawong Areeratchakul / Director transactions


Siam Yamato Steel Co., Ltd. 10 applied with

Mr. Chaovalit Ekabut / Director third party


Purchases - 949 5 2 - Market price

Siam Yamato Steel Co., Ltd. 10 applied with

Mr. Chaovalit Ekabut / Director third party


Part 3 Financial Position and Operating Performance / 13. Financial Statements

The Siam Cement Piblic Company Limited 174

13. Financial Statements

Summary of Auditor’s Report

Auditor’s Office: KPMG Phoomchai Audit Ltd.

Names of Auditors: Mr. Supot Singhasaneh Auditor Number 2826 or Mr. Winid Silamongkol Auditor Number 3378 or Mr. Charoen Phosamritlert Auditor Number 4068 or Ms. Sureerat Thongarunsang Auditor Number 4409

From the audits carried out upon the generally accepted standards, the auditors formed the opinion that the financial statements of the Siam Cement Public Company Limited and subsidiaries present fairly, in all material respects, the financial position as at December 31, 2013 2012 and 2011, the financial performance and cash flows for the years then ended in accordance with Thai Financial Reporting Standards.



Consolidated Financial Statements and Financial Ratios

of

The Siam Cement Public Company Limited and Subsidiaries



THE SIAM CEMENT PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013, 2012 AND 2011(Million Baht)

Assets 2013 % 2012 % 2011 %

Current assetsCash and cash equivalents 17,434 4.0 25,064 6.3 22,680 6.1 Temporary investments 6,984 1.6 7,677 1.9 7,205 1.9 Trade and other receivables 49,453 11.2 42,877 10.8 40,657 10.9 Short-term loans to related parties 146 0.0 137 0.0 154 0.0 Inventories 55,557 12.6 48,890 12.4 41,838 11.2 Other current assets 5,556 1.3 4,621 1.2 4,230 1.1

Total current assets 135,130 30.7 129,266 32.7 116,764 31.2 Non-current assets

Available-for-sale investments 11,137 2.5 12,048 3.0 25,638 6.9 Investments in associates 74,843 17.0 64,964 16.4 54,773 14.7 Investments in jointly-controlled entities 4,346 1.0 611 0.2 974 0.3 Other long-term investments 3,478 0.8 3,286 0.8 3,229 0.9 Long-term loans to related parties 143 0.0 137 0.0 401 0.1 Investment properties 1,535 0.3 1,474 0.4 1,595 0.4 Property, plant and equipment 183,589 41.7 165,292 41.8 156,683 41.9 Goodwill 10,300 2.3 3,801 1.0 2,511 0.7 Intangible assets 6,279 1.4 4,870 1.2 4,011 1.1 Deferred tax assets 4,604 1.0 4,301 1.1 2,903 0.8 Other non-current assets 5,052 1.1 5,523 1.4 4,307 1.2

Total non-current assets 305,306 69.3 266,307 67.3 257,025 68.8 Total assets 440,436 100.0 395,573 100.0 373,789 100.0

Note: The figures for year 2012 and 2011 are restated for comparative purpose with 2013.



THE SIAM CEMENT PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013, 2012 AND 2011(Million Baht)

Liabilities and shareholders' equity 2013 % 2012 % 2011 %

Current liabilitiesBank overdrafts and short-term loans from

financial institutions 12,917 2.9 13,771 3.5 20,058 5.4 Trade and other payables 51,211 11.6 45,471 11.5 36,273 9.7 Current portion of long-term debts 5,859 1.3 5,218 1.3 4,305 1.2 Current portion of debentures 14,963 3.4 29,911 7.6 39,910 10.7 Short-term loans from related parties 88 0.0 105 0.0 93 0.0 Income tax payable 2,596 0.6 2,304 0.6 4,177 1.1 Other current liabilities 2,101 0.5 1,950 0.5 1,635 0.4

Total current liabilities 89,735 20.4 98,730 25.0 106,451 28.5 Non-current liabilities

Long-term debts 26,929 6.1 30,298 7.7 28,156 7.5 Debentures 126,174 28.6 96,273 24.3 69,839 18.7 Deferred tax liabilities 2,773 0.6 2,472 0.6 1,562 0.4 Employee benefit liabilities 6,123 1.4 5,566 1.4 3,899 1.0 Other non-current liabilities 1,680 0.4 1,111 0.3 913 0.2

Total non-current liabilities 163,679 37.2 135,720 34.3 104,369 27.9 Total liabilities 253,414 57.5 234,450 59.3 210,820 56.4

สวนของผถอหนShareholders' equityShare capital

Authorised share capital 1,600 1,600 1,600 Issued and paid-up share capital 1,200 0.3 1,200 0.3 1,200 0.3

Retained earnings Appropriated

Legal reserve 160 0.0 160 0.0 160 0.0 General reserve 10,516 2.4 10,516 2.7 10,516 2.8

Unappropriated 156,031 35.4 137,500 34.8 128,738 34.4 Other components of equity (6,115) (1.4) (6,190) (1.6) (415) (0.1) Total equity attributable to owners of the parent 161,792 36.7 143,186 36.2 140,199 37.5 Non-controlling interests 25,230 5.7 17,937 4.5 22,770 6.1 Total shareholders’ equity 187,022 42.5 161,123 40.7 162,969 43.6

รวมหนสนและสวนของผถอหนTotal liabilities and shareholders' equity 440,436 100.0 395,573 100.0 373,789 100.0




THE SIAM CEMENT PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESCONSOLIDATED INCOME STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2013, 2012 AND 2011(Million Baht)

2013 % 2012 % 2011 %

Revenue from sales 434,251 100.0 407,601 100.0 368,579 100.0 Cost of sales (363,096) (83.6) (353,696) (86.8) (315,811) (85.7) Gross profit 71,155 16.4 53,905 13.2 52,768 14.3 Other income 13,141 3.0 10,737 2.7 10,894 3.0 Profit before expenses 84,296 19.4 64,642 15.9 63,662 17.3 Selling expenses (15,598) (3.6) (15,845) (3.9) (14,378) (3.9) Administrative expenses (24,434) (5.6) (20,673) (5.1) (18,760) (5.1) Total expenses (40,032) (9.2) (36,518) (9.0) (33,138) (9.0) Profit from operations 44,264 10.2 28,124 6.9 30,524 8.3 Share of profit of associates and

jointly-controlled entities 6,546 1.5 1,561 0.4 6,774 1.8 Profit before finance costs and income 50,810 11.7 29,685 7.3 37,298 10.1 tax expense

Finance costs (8,193) (1.9) (6,321) (1.6) (6,048) (1.6) Profit before income tax expense 42,617 9.8 23,364 5.7 31,250 8.5 Income tax expense (5,003) (1.2) (4,742) (1.1) (7,504) (2.1) Profit for the year 37,614 8.6 18,622 4.6 23,746 6.4

Profit (loss) attributable toOwners of the parent 36,522 8.4 23,580 5.8 27,281 7.4 Non-controlling interests 1,092 0.2 (4,958) (1.2) (3,535) (1.0)

37,614 8.6 18,622 4.6 23,746 6.4

Basic earnings per share (in Baht)Attributable to owners of the parent 30.44 19.65 22.73



THE SIAM CEMENT PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED 31 DECEMBER 2013, 2012 AND 2011(Million Baht)

2013 2012 2011

Profit for the year 37,614 18,622 23,746

Other comprehensive income Foreign currency translation differences (664) (751) 192 Net change in fair value of available-for-sale investments 169 821 (3,041) Defined benefit plan actuarial gains (losses) (28) (1,287) 39 Share of other comprehensive income of associates

and jointly-controlled entities 177 (108) (122) Income tax on other comprehensive income 4 243 1,223 Other comprehensive income for the year, net of income tax (342) (1,082) (1,709) Total comprehensive income for the year 37,272 17,540 22,037

Total comprehensive income (loss) attributable toOwners of the parent 36,197 22,635 25,678 Non-controlling interests 1,075 (5,095) (3,641)

37,272 17,540 22,037



THE SIAM CEMENT PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER 2013, 2012 AND 2011

(Million Baht)

2013 2012 2011

Cash flows from operating activities

Profit for the year 37,614 18,622 23,746 Adjustments for

Depreciation and amortisation 15,718 14,047 13,208 Interest income (1,048) (1,328) (1,894) Interest expense 7,503 7,409 7,001 Unrealised gain on foreign currency exchange (50) (196) (843) Allowance for decline in value of inventories (reversal) 35 14 (244) Dividend income (4,894) (4,414) (2,668) Employee benefit expense 754 743 523 Share of profit of associates and jointly-controlled entities (6,546) (1,561) (6,774) Income tax expense 5,003 4,742 7,504 Gain on revaluation of investments and others (2,261) (674) (2,981)

Profit provided by operating activities before changes in

operating assets and liabilities 51,828 37,404 36,578

Decrease (increase) in operating assets

Trade and other receivables (1,133) (3,798) (6,960) Inventories (4,460) (6,436) (4,217) Other current assets (479) (372) 231 Other non-current assets (13) 357 231

Net increase in operating assets (6,085) (10,249) (10,715)







(Million Baht)

2013 2012 2011

Increase (decrease) in operating liabilities

Trade and other payables 2,446 7,606 3,505 Other current liabilities (81) 329 237 Employee benefit liabilities (330) (416) (532) Other non-current liabilities 248 193 31

Net increase in operating liabilities 2,283 7,712 3,241

Cash generated from the operations 48,026 34,867 29,104

Income tax paid (5,491) (6,686) (6,151) Net cash provided by operating activities 42,535 28,181 22,953

Cash flows from investing activities

Interest received 1,100 1,432 1,765 Dividends received 7,649 9,002 7,058 Short-term investments 702 (414) (998) Available-for-sale investments (11,583) (14,027) (44,321) Investments in associates, jointly-controlled entities and other companies (11,049) (12,472) (14,003) Net cash outflow on acquisition of subsidiaries (7,726) (4,428) (4,217) Proceeds from sales and return of investments 13,250 29,236 29,811 Income tax paid from sales of investments (11) (816) (7,215) Purchases of property, plant and equipment (28,965) (17,938) (13,409) Proceeds from sales of property, plant and equipment 177 242 182 Purchases of Intangible assets (1,748) (453) (761) Payments received on loans to (loans to) related parties (2) 189 8 Currency translation differences (456) (305) 7 Net cash used in investing activities (38,662) (10,752) (46,093)







(Million Baht)2013 2012 2011

Cash flows from financing activities

Borrowings

Interest paid (7,643) (7,327) (6,976) Increase (decrease) in bank overdrafts and short-term loans

from financial institutions (2,941) (6,291) 11,061 Proceeds from (payments of) short-term loans from related parties (79) 12 (64) Proceeds from long-term debts 8,398 7,865 5,002 Payments of long-term debts (10,675) (5,406) (11,309) Proceeds from (payments of) finance lease (679) (529) 361 Proceeds from issuance of debentures 44,922 56,410 24,921 Redemption of debentures (29,968) (39,977) (24,905)

Net increase (decrease) in borrowings 1,335 4,757 (1,909)

Dividends paid

Dividends paid to owners of the parent (17,922) (13,774) (16,188) Dividends paid to non-controlling interests (747) (688) (1,880)

Total dividends paid (18,669) (14,462) (18,068)

Acquisition and increase in capital of non-controlling interests 5,831 (5,340) 1,970 Net cash used in financing activities (11,503) (15,045) (18,007)

Net increase (decrease) in cash and cash equivalents (7,630) 2,384 (41,147)

Cash and cash equivalents at beginning of the year 25,064 22,680 63,827 Cash and cash equivalents at end of the year 17,434 25,064 22,680

Supplementary information for cash flows

Non-cash transactionsOutstanding payable from purchases of property, plant, equipment and intangible assets 1,407 265 82





Consolidated Financial Statements2013 2012 2011

LIQUIDITY RATIOCurrent Ratio (Times) 1.51 1.31 1.10 Quick Ratio (Times) 0.72 0.70 0.60 Cash Flow Liquidity (Times) 0.45 0.27 0.24 Accounts Receivable Turnover (Times) 11.10 11.32 12.15 Collection Period (Days) 32 32 30 Inventory Turnover (Times) 17.69 19.36 19.91 Inventory Turnover Period (Days) 20 19 18 Accounts Payable Turnover (Times) 9.71 11.66 13.06 Payment Period (Days) 37 31 28 Cash Cycle (Days) 15 20 20

PROFITABILITY RATIOGross Profit Margin (%) 16.39 13.22 14.32 Net Profit Margin * (%) 8.05 5.62 7.06 Return on Equity (%) 23.95 16.64 19.96

EFFICIENCY RATIOReturn on Total Assets (%) 8.74 6.13 7.44 Return on Fixed Assets (%) 29.62 23.09 26.09 Assets Turnover ** (Times) 1.09 1.09 1.05

FINANCIAL POLICY RATIODebt to Equity Ratio (Times) 1.35 1.46 1.29 Interest Coverage Ratio (Times) 5.86 5.52 4.81 Cash Flow Adequacy (Times) 1.01 0.84 0.71 Dividend Payout Ratio (%) 50.93 55.98 55.07

Note* Net Profit Margin = Profit for the Year / Total Revenue** Assets Turnover = Total Revenue / Total Assets (Average)



Financial Statements and Financial Ratios

of

The Siam Cement Public Company Limited



THE SIAM CEMENT PUBLIC COMPANY LIMITED

STATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013, 2012 AND 2011

(Million Baht)

Assets 2013 % 2012 % 2011 %

Current assets

Cash and cash equivalents 1,726 0.7 15,686 7.6 16,589 9.0

Temporary investments 6,984 3.0 7,487 3.6 7,205 3.9

Other receivables 2,923 1.2 2,254 1.1 3,265 1.8

Short-term loans to related parties 96,941 41.0 72,573 34.9 56,764 30.7

Other current assets 875 0.4 870 0.4 855 0.5

Total current assets 109,449 46.3 98,870 47.6 84,678 45.9

Non-current assets

Available-for-sale investments 10,461 4.4 11,448 5.5 25,115 13.6

Investments in associates 573 0.3 572 0.3 704 0.4

Investments in subsidiaries 105,380 44.6 89,724 43.2 67,338 36.5

Other long-term investments 3,257 1.4 3,257 1.5 3,217 1.7

Long-term loans to related parties - - 92 - 565 0.3

Investment properties 1,917 0.8 1,644 0.8 1,549 0.8

Property, plant and equipment 3,052 1.3 1,151 0.6 683 0.4

Intangible assets 1,841 0.8 620 0.3 582 0.3

Other non-current assets 324 0.1 318 0.2 282 0.2

Total non-current assets 126,805 53.7 108,826 52.4 100,035 54.1

Total assets 236,254 100.0 207,696 100.0 184,712 100.0



THE SIAM CEMENT PUBLIC COMPANY LIMITEDSTATEMENTS OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013, 2012 AND 2011

(Million Baht)Liabilities and shareholders' equity 2013 % 2012 % 2011 %Current liabilities

Short-term loans from financial institutions 6,500 2.8 - - - - Other payables 644 0.3 496 0.2 373 0.2 Current portion of debentures 15,000 6.3 30,000 14.4 40,000 21.7 Short-term loans from related parties 5,306 2.2 5,513 2.7 5,177 2.8 Accrued interest expense 1,332 0.6 1,225 0.6 1,127 0.6 Income tax payable 38 - 6 - 1,079 0.6 Other current liabilities 229 0.1 205 0.1 171 0.1

Total current liabilities 29,049 12.3 37,445 18.0 47,926 26.0 Non-current liabilities

Debentures 126,500 53.5 96,500 46.5 70,000 37.8 Deferred tax liabilities 383 0.2 506 0.3 464 0.3 Employee benefit liabilities 518 0.2 486 0.2 197 0.1 Other non-current liabilities 1,038 0.4 463 0.2 345 0.2

Total non-current liabilities 128,439 54.3 97,955 47.2 71,005 38.4 Total liabilities 157,488 66.6 135,400 65.2 118,931 64.4 Shareholders' equity

Share capital Authorised share capital 1,600 1,600 1,600 Issued and paid-up share capital 1,200 0.50 1,200 0.6 1,200 0.6 Retained earnings Appropriated Legal reserve 160 0.1 160 0.1 160 0.1 General reserve 10,516 4.5 10,516 5.0 10,516 5.7 Unappropriated 64,085 27.1 57,567 27.7 51,733 28.0

Other components of equity 2,805 1.2 2,852 1.4 2,172 1.2 Total shareholders' equity 78,766 33.4 72,296 34.8 65,781 35.6 Total liabilities and shareholders' equity 236,254 100.0 207,696 100.0 184,712 100.0




INCOME STATEMENTS


(Million Baht)

2013 % 2012 % 2011 %

Revenues

Dividend income 23,456 77.0 18,283 73.7 13,150 58.3

Intellectual property income 2,929 9.6 2,825 11.4 2,565 11.4

Management fees for administration 2,226 7.3 2,078 8.4 1,898 8.4

Other income 1,857 6.1 1,616 6.5 4,935 21.9

Total revenues 30,468 100.0 24,802 100.0 22,548 100.0

Expenses

Administrative expenses 2,297 7.5 2,084 8.4 1,902 8.4

Profit before finance costs and income tax expense 28,171 92.5 22,718 91.6 20,646 91.6

Finance costs 3,446 11.3 2,691 10.8 2,105 9.3

Profit before income tax expense 24,725 81.2 20,027 80.8 18,540 82.3

Income tax expense 285 1.0 377 1.5 1,709 7.6

Profit for the year 24,440 80.2 19,650 79.3 16,831 74.7

Basic earnings per share (in Baht) 20.37 16.37 14.03




STATEMENTS OF COMPREHENSIVE INCOME


(Million Baht)

2013 2012 2011

Profit for the year 24,440 19,650 16,831

Other comprehensive income

Gains (losses) on remeasuring available-for-sale invesments (59) 745 (3,447)

Defined benefit plan actuarial gains (losses) - (51) 7

Income tax on other comprehensive income 11 (55) 1,230

Other comprehensive income for the year, net of income tax (48) 639 (2,210)

Total comprehensive income for the year 24,392 20,289 14,621




STATEMENTS OF CASH FLOWS


(Million Baht)2013 2012 2011

Cash flows from operating activitiesProfit for the year 24,440 19,650 16,831 Adjustments for

Depreciation and amortisation 140 74 88 Interest income (4,181) (3,879) (4,432) Interest expense 5,496 5,291 5,140 Unrealised loss (gain) on foreign currency exchange 430 (69) (1,283) Dividend income (23,455) (18,283) (13,150) Employee benefit expense 53 286 44 Income tax expense 285 377 1,709 Gain on sales of assets and others (790) (177) (3,065)

Profit provided by operating activities before changes in operating assets and liabilities 2,418 3,270 1,883

Decrease (increase) in operating assetsOther receivables (267) (218) 244 Other current assets (5) (14) (15) Other non-current assets (13) (2) 11

Net decrease (increase) in operating assets (285) (234) 240 Increase (decrease) in operating liabilities

Other payables 86 122 44 Other current liabilities 14 37 91 Employee benefit liabilities (11) (50) (61) Other non-current liabilities 51 74 186

Net increase in operating liabilities 140 183 260 Cash generated from the operations 2,273 3,219 2,383

Income tax paid (364) (648) (323) Net cash provided by operating activities 1,909 2,571 2,060




STATEMENTS OF CASH FLOWS


(Million Baht)2013 2012 2011

Cash flows from investing activitiesInterest received 4,208 3,937 4,300 Dividends received 23,485 19,325 12,116 Temporary investments 512 (224) (998) Available-for-sale investments (11,583) (14,027) (44,321) Investments in subsidiaries, associates and other company (15,657) (22,452) (14,118) Proceeds from sales and return of investments 12,841 28,951 29,710 Income tax paid from sales of investments - (816) (7,030) Purchases of property, plant and equipment and intangible assets (3,384) (677) (870) Proceeds from sales of property, plant and equipment and intangible assets 75 72 74 Loans to related parties (24,327) (15,441) (274) Net cash used in investing activities (13,830) (1,352) (21,411)

Cash flows from financing activitiesBorrowings

Interest paid (5,409) (5,192) (5,202) Increase in Short-term loans from financial institutions 6,500 - - Proceeds from (Payments of) short-term loans from related parties (208) 344 334 Proceeds from issuance of debentures 45,000 56,500 25,000 Redemption of debentures (30,000) (40,000) (25,000)

Net increase (decrease) in borrowings 15,883 11,652 (4,868) Dividends paid (17,922) (13,774) (16,188) Net cash used in financing activities (2,039) (2,122) (21,056)

Net decrease in cash and cash equivalents (13,960) (903) (40,407) Cash and cash equivalents at beginning of the year 15,686 16,589 56,995 Cash and cash equivalents at end of the year 1,726 15,686 16,589



FINANCIAL RATIOS OF THE SIAM CEMENT PUBLIC COMPANY LIMITED

Financial Statements

2013 2012 2011

LIQUIDITY RATIO

Current Ratio (Times) 3.77 2.64 1.77

Quick Ratio (Times) 0.30 0.62 0.50

Cash Flow Liquidity (Times) 0.06 0.06 0.06

PROFITABILITY RATIO

Net Profit Margin (%) 80.21 79.23 74.65

Return on Equity (%) 32.36 28.46 31.48

EFFICIENCY RATIO

Return on Total Assets (%) 11.01 10.01 9.90

Assets Turnover (Times) 0.14 0.13 0.13

FINANCIAL POLICY RATIO

Debt to Equity Ratio (Times) 2.00 1.87 1.81

Interest Coverage Ratio (Times) 1.64 2.10 2.79

Cash Flow Adequacy (%) 76.13 67.64 102.13

Dividend Payout Ratio (%) 76.10 67.18 89.12

Part 3 Financial Position and Operating Performance / 14. Management Discussion and Analysis

The Siam Cement Public Company Limited 192

14. Management Discussion and Analysis Operating Results and Financial Status of The Siam Cement Public Company Limited and its Subsidiaries

Business Overviews

In 2013, SCG’s revenue from sales increased 7% from the previous year to 434,251 Million Baht with growths in all business units. EBITDA increased 34% to 61,265 Million Baht. Similarly, profit for the year increased 55% to 36,522 Million Baht, benefiting from the recovery of chemicals margin, and higher domestic demand of cement products.

Share of profit of associates for 2013 amounted to 6,546 Million Baht, an increase of 4,985 Million

Baht from the previous year with details as follows:

SCG Chemicals associates: Share of gain amounted to 2,774 Million Baht, recovered from the loss of 606 Million Baht in the previous year, attributable to better margins from the chemicals associates.

Other associates: Share of profit amounted to 3,772 Million Baht, increased 1,605 Million Baht from the previous year, mainly from the other associates which were affected by the flood in the first half of 2012.

Total dividends received in 2013 was 7,707 Million Baht, down 3% from the previous year, with

details as follows: a) 2,813 Million Baht from “Associated” companies (20%-50% stake), and b) 4,894 Million Baht from “Other” companies (less than 20% stake).

Operating Results of Strategic Business Segments SCG Cement-Building Materials

In 2013, domestic demand for cement and building materials increased from the previous year driven by growth in government and private investment. Domestic demand for cement rose 7%, resulting in an increase in domestic sales whereas export sales declined. Meanwhile, sales of building materials grew steadily, attributable to the continued development of high value added products and services (HVA) to address customer needs. Demand for cement and building materials in ASEAN saw a steady growth on the back of a rise in domestic and foreign investment as a result of the government’s efforts to encourage foreign investment.



In 2013, revenue from sales increased 13% from the previous year to 174,642 Million Baht on volume growth in addition to the acquisition of Prime Group, a leading ceramic tiles producer in Vietnam, including consolidation of Siam Sanitary Ware Co., Ltd. and The Siam Sanitary Fittings Co., Ltd. EBITDA increased 14% from the previous year to 26,274 Million Baht, and profit for the year increased 23% to 16,092 Million Baht.

SCG Chemicals

In 2013, the chemicals business continued to see improving margins as the global economy showed signs of recovery, following difficult margins in 2012. The average prices of polyethylene and polypropylene resins were 1,488 and 1,519 USD per ton, an increase of 7% and 4%, respectively. Meanwhile, prices of Naphtha, main feedstock, was 922 USD per ton, a decrease of 3% from the previous year on the back of falling crude oil prices triggered by the growing supply in the U.S. This resulted in wider product-to-feed margins compared to the year before.

In 2013, revenue from sales increased 3% from the previous year to 209,997 Million Baht. EBITDA increased 136% from the previous year to 20,342 Million Baht, likewise, profit for the year which increased 320% from the previous year to 11,292 Million Baht, as a result of the recovery of chemicals margin. SCG Paper

In 2013, revenue from sales increased 3% from the previous year to 59,135 Million Baht, mainly attributed to higher sales volume and improved efficiency in the Packaging Chain, in addition to the acquisition of Dyna Packs Co., Ltd. and Orient Containers Co., Ltd., and PT Primacorr Mandiri (Indonesia). EBITDA increased 7% to 9,473 Million Baht, likewise, profit for the year increased 1% from the previous year to 3,587 Million Baht.

Packaging Chain: Total sales volume increased 3% from the previous year, following rising demand for packaging paper and corrugated containers in the ASEAN region in response to the growing economy.

Fibrous Chain: Total sales volume increased 7% from the year before as a result of the higher sales of pulp. However, printing & writing paper sales volume dropped due to more production capacity added to the market and less demand in Thailand market.



Financial Status Assets

Total assets of SCG as at December 31, 2013 was 440,436 Million Baht, with an increase of 11% from the previous year. Key components of total assets were property, plant and equipment at 42%, current assets at 31% and investments at 21%. Ranking of asset values by business segments are SCG Chemicals, SCG Cement-Building Materials, and SCG Paper, respectively. Current assets: amounted to 135,130 Million Baht as at December 31, 2013, with an increase of 5% from the previous year, comprising largely of inventories, trade and other receivables and cash and cash equivalents. At December 31, 2013, SCG’s working capital was 55,896 Million Baht with working capital days at 48 days.

Cash and cash under management: amounted to 29,667 Million Baht as at December 31, 2013, a drop of 8,866 Million Baht from the previous year following continued CAPEX and Investments.

Investments in associates and jointly-controlled entities: amounted to 79,188 Million Baht as at

December 31, 2013, an increase of 13,613 Million Baht or 21% from the previous year, with reasons as follows:

Increase in investments amounted to 10,871 Million Baht, mainly from SCG Chemicals’ acquisition of Bangkok Synthetics Co., Ltd. (BST), a manufacturer of raw materials for synthetic rubber in Thailand, and PT Chandra Asri Petrochemical Tbk., a leading petrochemical company in Indonesia.

Increase from share of profit using equity method amounted to 6,546 Million Baht. Decrease from dividends received amounted to 2,813 Million Baht. Decrease from the change status of associates to subsidiaries amounted to 1,049 Million Baht of

Siam Sanitary Ware Co., Ltd. and The Siam Sanitary Fittings Co., Ltd.

Property, plant and equipment: amounted to 183,589 Million Baht as at December 31, 2013, an increase of 18,297 Million Baht or 11% from the previous year due to the CAPEX and business acquisition during the year.



Liabilities

Total liabilities as at December 31, 2013 amounted to 253,414 Million Baht, an increase of 8% from the previous year. During the year, SCG issued new debentures which amounted to 45,000 Million Baht to replace the matured debentures of 30,000 Million Baht and to support future investments. Finance costs were 8,193 Million Baht, an increase of 1,872 Million Baht from last year.

Net debt (interest-bearing debt less cash and cash under management) of SCG as at December 31, 2013 increased 20,220 Million Baht from the previous year to 157,263 Million Baht from investing in CAPEX and Investments of 50,064 Million Baht, mainly from investing in Bangkok Synthetics Co., Ltd. (BST) and PT Chandra Asri Petrochemical Tbk., including the acquisition of Prime Group. Liquidity

At the end of year 2013, SCG had cash and cash equivalents amounted 17,434 Million Baht, a decrease of 7,630 Million Baht from last year. As a consequence of cash flows provided by operating activities amounted 42,535 Million Baht, meanwhile, cash flows used in investing activities amounted to 38,662 Million Baht, mainly from the CAPEX and M&A activities. Moreover, cash flows used in financing activities was 11,503 Million Baht, mainly from dividend payment.

Regarding the liquidity ratios, SCG earned a current ratio of 1.5 times while the cash flow liquidity was 0.5 times. SCG’s Cash Cycle was 15 days (average collection period + inventory turnover period - average payment period). The cash flows and liquidity ratios ensured that SCG possessed adequate liquidity for business operation, accompanying with overdraft accounts with various banks for 6,500 Million Baht.

Financial Ratios

In 2013, current ratio registered 1.5 times and net debt to EBITDA ratio decreased to 2.6 times, compared to 3.0 times in last year. At the end of 2013, debt to equity ratio decreased to 1.4 times, compared to 1.5 times in last year.

CAPEX

SCG’s 2013 CAPEX & Investment amounted to 50,064 Million Baht, increased 2,588 Million Baht from the previous year, following continued CAPEX and M&A activities.

From the financial position and performance of 2013, the Board of Directors considered proposing the Annual General Meeting of Shareholders for approval of 2013 dividend payment of 15.5 Baht per share,



representing a dividend payout ratio of 51% of consolidated profit for the year. SCG has already paid an interim dividend of 5.5 Baht per share on August 29, 2013 and an interim dividend for the SCG’s 100 Year Anniversary of 3.0 Baht per share on November 28, 2013. The final dividend will be paid at the amount of 7.0 Baht per share on April 24, 2014.

In summary, SCG continues to maintain solid financial position and performance with growth in all

business units. SCG pledges to expand its business operations and to continue to advance its competitive edge by operating its business in a sustainable development approach, through learning and swift adjustment in anticipation of changing circumstances. SCG, under the principles of good corporate governance, focuses on achieving a balance in economic, social, and environmental development. Moreover, SCG has focused on promoting research and development (R&D), realizing that R&D is a key contributing factor to enhancing the organization’s capabilities to gear up for competition in ASEAN. Throughout its 100 years of operation, SCG has pledged to drive innovation in products, services, and processes to accommodate customer needs, uplift people’s quality of life as well as contribute to a better environment and sustainable society in pursuit of becoming an ASEAN sustainable business leader in accordance with SCG vision, with a firm belief in the potential of the ASEAN Economic Community (AEC) to support strong and sustainable growth.

Information Certification The Siam Cement Public Company Limited

The Company has prudently examined the facts and figures in the above-mentioned report. The Company declares the facts and figures as complete, accurate, truthful, not misleading, or not inadequate in materiality– which may cause possible damage to the bearer or buyer of the securities. In addition, the Company declares that

1. The financial statements and financial information, attached as parts of this annual information, present accurate and complete, in all material aspects, the financial position, result of operations, and cash flows of the Siam Cement Public Company Limited and subsidiaries.

2. The Company is responsible for fine disclosure system to ensure that the Company has accurately and completely disclosed material information of the Company and subsidiaries as well as supervising the compliance of the system.

3. The Company is responsible for good internal control and overseeing the conformity to such system. The Company informed the internal control evaluation as at February 20, 2014 to the auditors and the Audit Committee. The report included any shortcomings and major changes in the internal control system as well as any dishonesty that might affect the financial statements of the Company and subsidiaries.

In order to ensure the authenticity and the wholeness of all the said documents endorsed by us, the Company instructed Mr. Pichit Leelaphantmetha to initial each and every sheet of the document. Should any sheet of document be without his initial, the Company will consider such sheet (or sheets) not certified by us.

The Siam Cement Public Company Limited

Name Position Signature

1. Mr. Yos Euarchukiati Director _______________

2. Mr. Kan Trakulhoon President _______________

Authorized Person

Mr. Pichit Leelaphantmetha Corporate Accounting Director _______________

ManagementCompany Management consists of

The Board of Directors

1. Mr. Chirayu Isarangkun Na Ayuthaya 71 - B.Sc. Economics (Hons) - London School of Economics, - - None 1976 - 1979

Chairman University of London, UK - Deputy Minister of Industry 1983 - 1985

Director of CSR Committee fo - Ph.D., Economics - Australian National University, Australia 1985

Sustainable Development - Role of the Chairman Program (RCP) 1/2000 - Thai Institute of Directors Association - Minister of Prime Minister's Office 1986

Date of Appointment - Chairman, The Siam Cement Public Company Limited 1998 - 1999

March 28,2007 - Chairman, The Siam Commercial Bank Public Company Limited 1998 - 2007

- Director-General, The Crown Property Bureau 1987 - present

- Grand Chamberlian, The Royal Household Bureau 1987 - present

- Chairman,The Deves Insurance Public Company Limited 1987 - present

- Chairman,National Institute of Development Administration 1998 - Present

- Director, CPB Equity Company Limited 2006 - Present

- Director, The Siam Commercial Bank Public Company Limited 2007 - Present

- Member, Advisory Board,Sasin Graduate Institute of Business 2013 - Present

Administration of Chulalongkorn University

2. Mr. Snoh Unakul 82 - Certificate in Accountancy - Thammasat University 30,000 120,000 None - Member of National Legislative Assembly 1972-1975,1977-1979

Director - B. Commerce - University of Melbourne, Australia - Deputy Permanent Secretary, Ministry of Commerce 1973 - 1974

Member of The Governance and - M.A. Economics - Columbia University, USA - Secretary General, The National Economic and 1974-1975,1980-1989

Nomination Committee - Ph.D. Economic - Columbia University, USA - Social Development Board

Chairman of CSR Committee for - National Defence College (Class 24) - Governor of Bank of Thailand 1975 - 1979

Sustainable Development - Honorary Degree, Doctor of Economics - Chulalongkorn University - Chairman, National Institute of Development Administration 1976 - 1980

(The Authorized Director) - Honorary Degree, Doctor of Commerce - Thammasat University - Senator 1981 - 1991

Date of Appointment - Honorary Degree, Doctor of Social Science - Srinakharin Wirot University - Chaiman, Council of Bura Pha University 1991 - 1992

April 28,1992 - Honorary Degree, Doctor of Economics - Thammasat University - Deputy Prime Minister 1991 - 1992

- Honorary Degree, Doctor of Economics - The National Institute of Development - Chairman of the Board of Directors and Chairman of the 1992 - 1995

Development Administration - Executive Committee, The Bank of Asia Public Company Limited

- Honorary Degree, Doctor of Economics - Bura Pha University - Chairman, The First Governor of the Bank of Thailand Selection 2010

- Honorary Degree, Doctor of Economics - Khon Kaen University Committee

PeriodAge

Highest educational qualification and Training in

Directors' Role and Duty Own

Spouse or

Immatured

Children

- Minister of Industry

(As at January 1, 2014)

Detail of Management and Controlling Persons

Common Shares holding Experiences

- Dean, School of Development Economics, NIDA

Full name and PositionPosition

Educational Institutes

Family

Relationship

among

Management


- Advanced Director Program "Board's Failure - Thai Institute of Directors Association - Chairman,Thailand Development Research Institute Foundation 1984 - Present

and How to Fix It” - Research Institute

- Director Accreditation Program (DAP) 32/2005 - Thai Institute of Directors Association - Director, Dole (Thailand) Co., Ltd. 1992 - Present

- Director, Board of the Crown Property Bureau 1993 - Present

- Director, CPB Equity Co., Ltd 2006 - Present

- Chairman, Siam Bioscience Company Limited 2009 - Present

- Chairman, Apexcela Company Limited 2011 - Present

- Vice Chairman, Buddhadasa Indatanno Archives Foundation 2011 - Present

- Chairman of Toyota Thailand Foundation 2013 - Present

3. Mr. Sumet Tantivejkul 74 - B.A. (Polotical Science) - Grenoble University, France - - None - Secretary-General, Office of The National Economic and 1994 - 1996

Independent Director - M.A. (Political Science and International Law) - Montpellier University, France Social Development Board

(From January 28,1998) - Ph.D. (Political Science) - Montpellier University, France - Director, Bank of Thailand 1994 - 1996

Director - Diploma - The Economic Development Institute of the - Director, Thai Airway International Public Company Limited 1994 - 2001

Chairman, The Governacnce and World Bank (EDI),Washington, D.C.,U.S.A. - Director, Krung Thai Bank Public Company Limited 1996 - 1997

Nomination Committee - Bankruptcy and Rehabilitation Process: - Thai Institute of Directors Association - Chairman, Telephone Organization of Thailand 1997 - 1998

Member of CSR Committee for (What Directors and Executive should know?) - Director, Thai Farmers Bank Public Company Limited 1997 - 2000

Sustainable Development - The Audit Committee, Expectation Increase - The Stock Exchange of Thailand - Director, Council of Burapha University 2001 - 2012

Date of Appointment and The Responsibility Expansion - Persident of University, Council of Thammasat University 2005 - 2010

January 28,1998 - Director Certification Program (DCP) 30/2003 - Thai Institute of Directors Association - Member and Secretary-General, The Chaipattana foundation 1988 - Persent

- Finance for Non-Finance Director (FND) 5/2003 - Thai Institute of Directors Association - Chairman, Elephant Reintroduction Foundation 2002 - Present

- Audit Committee Program (ACP) 11/2006 - Thai Institute of Directors Association - Chairman, The Sirindhorn International Environmental Park Foundation 2002 - Present

- Chairman, Foundation for a Clean and Transparent Thailand 2004 - Present

4. Mr. Pricha Attavipach 75 - B.Sc. (Industrial Engineering) - Chulalongkorn University 4,100 25,000 None - Director, PTT Exploraton and Production Public Company Limited 1993 - 2001

Independent Director - M.S. (Industrial Engineering & Management) - Oklahoma State University, U.S.A. - Permanent Secretary, Ministry of Industry 1996 - 1999

(From March 31,1999) - Directors Certification Program (DCP) 39/2004 - Thai Institute of Directors Association - Chairman, Electricity Generating Authority of Thailand 1997 - 1998

Member of The Audit Committee - Finance for Non-Finance Directors (FND) 8/2004 - Thai Institute of Directors Association - Chairman, Petroluem Authority of Thailand 1997 - 1999

Date of Appointment - Audit Committee Program (ACP) 11/2006 - Thai Institute of Directors Association - Chairman, National Petrochemical Public Company Limited 1999 - 2000

March 31,1999 - Director, H.C. Starck Co., Ltd. 1993 - Present

- Chairman, Pan - Paper Co., Ltd. 2000 - Present

- Specialist Senior Engineering (Industrial Engineer), Council of Engineer 2001 - Present

Full name and Position AgeHighest educational qualification and Training in

Directors' Role and DutyEducational Institutes

ExperiencesFamily

Relationship

among

Management

Own Position Period

Spouse or

Immatured

Children

Common Shares holding


- Law Councillor of Ministry of Labour 2002 - Present

- Chairman, SIAM P.P. International Co., Ltd. 2003 - Present

- Chairman, Ekaratpattana Co., Ltd. 2004 - Present

- Academic Director of the Safety and Health Vocational 2004 - Present

Management System, The Engineering Institute of Thailand

Under H.M. The King's Patronage (E.I.T)

- Independent Director and Chairman of the Audit Committee, 2004 - Present

Thai Rung Union Car Public Company Limited

- President of the University Council, Chaopraya University 2007 - Present

- Chairman, Thai Sugar Terminal Public Company Limited 2008 - Present

- Chairman, TS Oil Industry Company Limited 2008 - Present

- Chairman, TSG Asset Company Limited 2008 - Present

- Chairman, Kasest Thai Sugar Refinery Company Limited 2008 - Present

- Chairman, TS Flour Mills Public Company Limited 2008 - Present

- Chairman, SI Property Company Limited 2010 - Present

- Chairman, Kaset Thai Bio Power Company Limited 2011 - Present

5. Mr. Panas Simasathien 81 - Certificate in Accountancy - Thammasat University 100,000 - None - Chairman, Krung Thai Bank Public Company Limited 1982 - 1992

Director - B.A.,Cum Laude, (Business Administration) - Claremont Men’s College,California,U.S.A - Permanent Secretary, Ministry of Finance 1982 - 1992

Member of The Governance and - M.S. (Accounting) - University of Illinois, USA - Minister of Finance 1992

Nomination Committee - Ph.D. (Accounting) - University of Illinois, USA - Chairman, Electricity Generating Authority of Thailand 1993 - 1995

(The Authorized Director) - Honorary Doctorate in Commerce - Thammasat University - Member of The Securities and Exchange Commission 1994 - 2006 Date of Appointment - Director Certification Program (DCP) - Thai Institute of Directors Association - Chairman, The National Economic and Social Development Board 2005 - 2013

December 29,1999 - 2/2000 - Chairman of the Executive Committee, Saha Union Public 2011 - 2012

- The Corporate Governance of Family - Thai Institute of Directors Association Company Limited

- Business: A Path to Sustainable Success - Deputy Chairman and Chairman of the Executive Committee, 1992 - Present

- Strengthening Corporate Governance - Thai Institute of Directors Association Siam Piwat Company Limited

- Practices in Thailand - Director, Board of The Crown Property Bureau 2000 - Present

Spouse or

Immatured

Children

Common Shares holding



ExperiencesFamily

Relationship

among

Management

Own Position Period


- Effective AGMs for Better Communication - Thai Institute of Directors Association - Chairman, The Council of State, Group 12 2003 - Present

- with Your Shareholders - Director,CPB Equity Company Limited 2006 - Present

- Developing CG Policy Statement - Thai Institute of Directors Association

- Director Independence and Handling of - Thai Institute of Directors Association

- Conflict of Interests- DCP Refresher Course (DCP Re) 1/2005 - Thai Institute of Directors Association

6. Mr. Yos Euarchukiati 71 - B.Sc. (Eng.) - University College London, 1,500,000 - None - Managing Director, Thai Plastic and Chemicals Public Company Limited 1968 - 1974

Director - University of London, England - Senior Executive Vice President, Bank of Asia for Industrial and Commercia 1974 - 1981

Member of the RemunerationCommittee - Role of the Chairman Program (RCP) 1/2000 - Thai Institute of Directors Association - President and Director, The Bank of Asia Company Limited 1981 - 1992

Member of CSR Committee for - The Board's Role in Setting Effective - Thai Institute of Directors Association - Vice Chairman, The Bank of Asia Company Limited 1992 - 1997

Sustainable Development - Compensation Policy - Advisor, The Crown Property Bureau 1994 - 1997

(The Authorized Director) - Chairman, Thai Industrial Gases Public Company Limited 2000 - 2002 Date of Appointment - Director, National Petrochemical Public Company Limited 2000 - 2005

September 30,1998 - Director, Minor International Public Company Limit 2006 - 2009

- Chairman, Thai Plastic and Chemicals Public Company Limited 1990 - 2012

- Advisor - Financial and Investment, The Crown Property Bureau 1997 - Present

- Chairman of the Executive Board of Director, CPB Equity Co., Ltd. 2001 - Present

- Chairman, CPB Property Co., Ltd. 2001 - Present

- Director, Siam Piwat Company Limited 2001 - Present

7. Mr. Arsa Sarasin 77 - B.A. (Business Administration) - Boston University, USA 13,000 - None - Ambassador Extraordinary and Plenipotentiary, Royal Tha 1977 - 1980

Independent Director - Director Accreditation Program (DAP) 5/2003 - Thai Institute of Directors Association Embassy, Belgium & Chief of Mission to the European Community

(From July25, 2001) - Finance for Non-Finance Director (FND) 39/2008 - Thai Institute of Directors Association - Director-General, Department of Political Affairs 1980 - 1982

Member of The Governance and - Audit Committee Program (ACP) 19/2007 - Thai Institute of Directors Association Ministry of Foreign Affairs

Nomination Committee - Role of the Chairman Program (RCP) 32/2013 - Thai Institute of Directors Association - Permanent Secretary, Ministry of Foreign Affairs 1982 - 1986 Date of Appointment - Ambassador Extraordinary and Plenipotentiary 1986 - 1988

July 25,2001 Royal Thai Embassy, USA

- Minister of Foreign Affairs 1991 - 1992

- Co-Chairman of the Thai-Lao Association 1994 - 2004

- Director, Vinythai Public Company Limited

- Vice Chairman of the Board of Directors, Bangkok Bank 1995 - 1999

Public Company Limited

- Chairman, The Second Asia-Europe Business Forum (AEBF) 1997

Family

Relationship

among

Management

Own Position

Spouse or

Immatured

Children

PeriodFull name and Position Age



Common Shares holding Experiences


- Chairman of The Foundation for International Human Resources Developmen 1998 - 2000

- Advisor to the Board of Directors, Bangkok Bank Public Company Limited 2000 - 2008

- His Majesty’s Principal Private Secretary 2000 - 2012

- Chairman, Thai Asia Pacific Brewery Co.,Ltd 1993 - Present

- Chairman, Amata City Co., Ltd. 1995 - Present

- Chairman, Padaeng Industry Public Company Limited 1998 - Present

- Independent Director, Charoen Pokphand Foods Public Company Limited 1999 - Present

- Chairman, Siam Makro Public Company Limited 1999 - Present

- Director, Thai Pure Drinks Company Limited 2003 - Present

- Chairman of The Board of Governors for Amata Spring Country Club 2004 - Present

- Chairman of Advisors, Thai-Laos Friendship Association 2004 - Present

- Vice Chairman, Thai Tapioca Development Institute 2005 - Present

- Chairman, Mae Sod Clean Energy Company Limited 2006 - Present

- Vice Chairman and Chairman of the Audit Committee Charoen Pokphand 2013 - Present

Foods Public Company Limited

- Chairman, Mitsubishi Elevator Asia Company Limited 2013 - Present

- Advisor, Mitsubishi Electri Asia (Thailand) Company Limited 2013 - Present

8. Mr. Chumpol NaLamlieng 66 - B.S. Mechanical Engineer - University of Washington, U.S.A. 1,001,000 - None - President, The Siam Cement Public Company Limited 1993 - 2005

Director - MBA - Harvard Business School, U.S.A. - Director, British Airways Public Company Limited 2005 - 2009

Chairman of the Remuneration - Role of the Chairman Program (RCP) 2/2001 - Thai Institute of Directors Association - Chairman, Singapore Telecommunication Limited 2004 - 2011

Committee - Director, Dole (Thailand) Ltd. 1995 - Present

Date of Appointment - Director, Siam Commercial Bank Public Company Limited 2007 - Present

August,1,1992 - Director, CBP Equity Company Limited 2011 - Present

- Director, Kempin Siam Company Limited 2012 - Present

- Director, Kempinski International SA 2012 - Present

Period

Spouse or

Immatured

Children

Common Shares holding ExperiencesFamily

Relationship

among

Management

Own PositionFull name and Position Age




9. Mr. Tarrin Nimmanahaeminda 68 - B.A. (Government, Cum Laude) - Harvard College, U.S.A - 25,000 None - President and Chief Executive Officer, Siam Commercial Bank 1984 - 1992

Independent Director - MBA (Finance) - The Stanford Graduate School of Business, Public Company Limited

(From October 24,2007) - U.S.A. - Chairman of the Thai Bankers’ Association 1991 - 1992

Member of The Audit Committee - Minister of Finance (September 1992-May 1995) 1992 - 1995

Member of The Governance and - Member of the House of Representative 1996 - 2005

Nomination Committee - Minister of Finance (November 1997-February 2001) 1997 - 2001 Date of Appointment - Chairman of The Development Committee, The World Bank Group 1999 - 2000

October 24,2007 - Vice Chairman, Princess Maha Chakri Sirindhorn Foundation 1988 - Present

- Director and Treasurer, The Prostheses Foundation 1992 - Present

- Chairman, Siam Piwat Co., Ltd. 2003 - Present

- Chairman, Nantawan Company Limited 2013 - Present

10. Mr. Pramon Sutivong 74 - B.Sc. (Mechanical Engineering) - University of Kansas, U.S.A - 45,000 None - Esso Standard Thailand Co., Ltd. 1965 - 1980

Independent Director - M.S. (Mechanical Engineering) - University of Kansas, U.S.A - Managing Director, SCT Co., Ltd. 1981 - 1996

(From June 1,2011) - Advanced Management Program (AMP) - Harvard Business School, U.S.A - Vice President , The Siam Cement Public Company Limited 1984 - 1992

Member of The Remuneration - Role of the Chairman Program (RCP) 4/1001 - Thai Institute of Directors Association - Senior Vice President , The Siam Cement Public Company Limited 1992 - 1999

Committee - Director Accreditation Program (DAP) 6/2003 - Thai Institute of Directors Association - Director, SCG Foundation 1990 - 2005

Member of The Audit Committee - Role of Compensation Committee (RCC) 9/2009 - Thai Institute of Directors Association - Chairman, International Chamber of Commerce Thailand 1998 - 2002

Date of Appointment - Audit Committee Program (ACP) 45/2003 - Thai Institute of Directors Association - Chairman, Bankthai Public Company Limited 1999 - 2004

April 29, 2007 - Member, National Legislative Assembly 2006 - 2008

- Chairman, The Thai Chamber of Commerce 2004 - 2009

- Chairman, Board of Trade of Thailand 2005 - 2009

- Director, The Navakij Insurance Public Company Limited 1997 - Present

- Chairman, Toyota Motor Thailand Co., Ltd, 1999 - Present

- Chairman, Siamcompressor Industry Co., Ltd. 1999 - Present

- Director, Toyota Thailand Foundation 1999 - Present

- Director, Office of The Civil Service Commission 2007 - Present

- Honorary Director of the University Council, University of 2009 - Present

the Thai Chamber of Commerce

- Senior Chairman, The Thai Chamber of Commerce and 2009 - Present

Board of Trade of Thailand

- Chairman, Anti-Corruption Organization of Thailand 2011 - Present



Period

Spouse or

Immatured

Children


Relationship

among

Management

Own Position


- Member, Advisory Board, Sasin Graduate Institute of Business 2013 - Present

11. Mrs. Tarisa Watanagase 64 - B.A.,Economics - Keio University, Tokyo, Japan - 11,000 None 2006 - 2010

Independent Director - M.A.,Economics - Keio University, Tokyo, Japan - Chairperson, The Bank of Thailand Board 2006 - 2009

(From March 27,2013) - Ph.D.,Economics - Washington University, U.S.A - Chairperson, Monetary Policy Committee 2006 - 2010

Member of the Audit Committee - Advanced Management Program (AMP) - Harvard Business School, U.S.A - Chairperson, Financial Institutions Policy Committee 2006 - 2010

Date of Appointment - Diploma, The State, Private Sector and Political - National Defense College - Chairperson, Payment Systems Committee 2006 - 2010

March 27,2013 Sectors Course (Class 3) - Board Member, The National Economic and Social Dvelopment Board 2006 - 2010

- Ph.D. (Honorary) in Economics - Keio University, Tokyo, Japan - Commission Member, The SEC Commission Members 2006 - 2010

- Director Certification Program (DCP) 4/2000 - Thai Institute of Directors Association - Direcor, Board of Insurance Commission 2006 - 2010

- Director, Thai Asset Management Corporation Board of Directors 2006 - 2010

- Expert, The Financial Sector Assessment Program (FSAP), IMF 2011

- Member, International Advisory Panel, State Bank of Vietnam, Vietnam 2012 - 2013

- Member, World Bank-IMF Joint Committee on Remuneration of 2013

Executive Directors and Alternates

- Director, Puey Ungphkorn Institute 2006 - Present

- Member, Foundation For Thailand Rural Reconstruction Movement 2006 - Present

Under Royal Patronage

- Member, Board of Director, Ramathibodi Hospital Foundation 2010 - Present

- Member, Board of Director and Audit Committee, the Heart Foundation 2011 - Present

of Thailand under the Royal Patronage of the Crown Princess

- Director,Member,Board of Directors,Thailand's Private Sector 2011 - Present

Collective Action Coalition Against Corruption (CAC)

- Member, APD Avisory Group, Asia Pacific Department, IMF, 2011 - Present

Washington, D.C.

- Director, Thailand Philharmonic Orchestra 2012 - Present

- Associate, Alliance for Financial Inclusion, Thailand 2013 - Present

- Member, Advisory Board, Central Banking Publication, U.K. 2013 - Present

- Senior Advisor, Promontory Financial Group, Washington, D.C., U.S.A. 2013 - Present

- Governor,The Bank of Thailand



Administration of Chulalongkorn

Period

Spouse or

Immatured

Children


Relationship

among

Management

Own Position


12. Mr. Kan Trakulhoon 58 - B. Engineering - Chulalongkorn University - - None - President, Cementhai Ceramics Co., Ltd. 1999 - 2002

Director (Electrical), First Class Honours - Vice President, The Siam Cement Public Company Limited 2003 - 2004

President & CEO - M.S. (Ceramic) - The Georgia Institute of Technology,U.S.A - Executive Vice President, The Siam Cement 2004 - 2005

Member of CSR Committee for - M.S. (Management) - The Georgia Institute of Technology,U.S.A Public Company Limited

Sustainable Development - Advanced Management Program (AMP) - Harvard Business School, U.S.A - Outside Director, Kubota Corporation (Japan) 2009 - 2011

(The Authorized Director) - Honorary Degree, - Mahasarakham University - Being Chairman and Director of non-listed companies

Date of Appointment Doctor of Engineering (Production Engineering) under SCG totaling 10 companies

March,27,2013 - Director Certification Program (DCP) 29/2003 - Thai Institute of Directors Association - Board Member, East Asia Council, INSEAD 2004 - Present

- Board Member of World Business Council for Sustainable Developme 2006 - Present

- Member of School of Engineer and Technology, 2006 - Present

Asian Institute of Technology

- Member of Asia Business Council 2007 - Present

- Member, Board of Trustees, Asia Business Council 2010 - Present

- Shayu (Company Associate), Kubota Corporation (Japna) 2011 - Present

- Global Advisor, Kubota Corporate (Japan) 2011 - Present

- Advisor,The Federation of Thai Industries 2013 - Present

- Honorable Advisor,Environmental Engineering, Association of Thailan 2013 - Present

- Director, National Science Technology and Innovation Policy Board 2013 - Present

- Director, National Science Technology Development Board 2013 - Present

- Committee, Mahidol University Foundation 2013 - Present

- Director, The Engineering-Section Committee, 2013 - Present

Anandamahidol Foundation

- Member, Advisory Board, Sasin Graduate Institute of Business 2013 - Present

Administration of Chulalongkorn University

Period

Spouse or

Immatured

Children


Relationship

among

Management

Own PositionFull name and Position Age



SCG Top Executives

1. Mr. Kan Trakulhoon 58 - B. Engineering - Chulalongkorn University - - None - President, Cementhai Ceramics Co., Ltd. 1999 - 2002

Director (Electrical), First Class Honours - Vice President, The Siam Cement Public Company Limited 2003 - 2004

President & CEO - M.S. (Ceramic) - The Georgia Institute of Technology, USA - Executive Vice President, The Siam Cement 2004 - 2005

Member of CSR Committee for - M.S. (Management) - The Georgia Institute of Technology, USA Public Company Limited

Sustainable Development - Advanced Management Program (AMP) - Harvard Business School, USA - Outside Director, Kubota Corporation (Japan) 2009 - 2011

Date of Appointment - Honorary Degree, - Mahasarakham University - Being Chairman and Director of non-listed companies

March,27,2013 Doctor of Engineering (Production Engineering) under SCG totaling 10 companies

- Director Certification Program (DCP) - Thai Institute of Directors Association - Board Member, East Asia Council, INSEAD 2004 - Present

- 29/2003 - Board Member of World Business Council for Sustainable Development 2006 - Present

- Member of School of Engineer and Technology, 2006 - Present

Asian Institute of Technology

- Member of Asia Business Council 2007 - Present

- Member, Board of Trustees, Asia Business Council 2010 - Present

- Shayu (Company Associate), Kubota Corporation (Japan) 2011 - Present

- Global Advisor, Kubota Corporate (Japan) 2011 - Present

- Advisor,The Federation of Thai Industries 2013-Present

- Honorable Advisor, Environmental Engineering, Association of Thailand 2013-Present

- Director, National Science Technology and Innovation Policy Board 2013-Present

- Director, National Science Technology Development Board 2013-Present

- Committee, Mahidol University Foundation 2013-Present

- Director, The Engineering-Section Committee, Anandamahihol Foundation 2013- Present

- Member, Advisory Board, Sasin Graduate Institute of Business Administration 2013- Present

of Chulalongkorn University

2. Mr. Chaovalit Ekabut 55 - B. Engineering (Mechanical), - Chulalongkorn University - - None - Business Development and Project Division Manager, 1997 - 1999

Vice President - Finance and Investment (First Class Honours) The Siam Cement Public Company Limited

& CFO, SCG - M.E.(Industrial Engineering and Management) - Asian Institute of Technology - Managing Director, Thai CRT Co., Ltd. 1999 - 2002

President, SCG Investment - Advanced Management Program (AMP) - Harvard Business School, USA - Managing Director, Thai Paper Co., Ltd. 2002 - 2004

- Director Accreditation Program (DAP) 2004 - Thai Institute of Directors Association - Executive Vice President, The Siam Pulp and Paper Public Company Limited 2004 - 2005

- Director Certification Program (DCP) - Thai Institute of Directors Association - President, SCG Paper 2005 - 2010

84/2007 - Chairman, Thai Cane Paper Public Company Limited 2005 - 2010

- Role of the Chairman Program (RCP) - Thai Institute of Directors Association - Chairman, Thai British Security Printing Public Company Limited 2005 - 2010

Period


Relationship

among

Management

Spouse

or

Immatured

Children

Own

Full name

and PositionAge

Highest educational qualification

and Training in Director's

Role and Duty

Educational

Institutes Position

Top Executives

- Being chairman and director of SCG's subsidairies, associated and

other companies which are non-listed as assigned by the company

- Commissioner, PT Chandra Asri Petrochemical Tbk., Indonesia 2011-Present

3. Mr. Tanawong Areeratchakul 50 - B. Engineering (Electrical) - King Mongkut's University of Technology - - None - Managing Director, Rayong Olefins Company Limited 2007 - 2008

Vice President - Corporate Administration, Thonburi - General Director, Long Son Petrochemicals Company Limited 2008 - 2010

SCG - Advanced Management Program (AMP) - Harvard Business School, U.S.A. - Being chairman and director of SCG's subsidiaries, associates and

Member of CSR Committee for other companies which are non-listed as assigned by the company

Sustainable Development

4. Mr. Pichit Maipoom 57 - B.E. (Machanical Engineering) - King Mongkut's Institute of Techology - - None - Managing Director, Thai Ceramic Co., Ltd. 2001-2005

President, Second Class Honours, North Bangkok - Executive Vice President, Cementhai Building Products Co., Ltd. 2004-2005

SCG Cement-Building Materials - M.E. (Industrial and Management) - Asian Institute of Technology - President, SCG Building Materials Co., Ltd. 2005-2012

Vice President-Operations, - Advanced Management Program (AMP) - Harvard Business School, U.S.A. - Honorable Chairman, Ceramic Industry Club of Thailand,

SCG Cement-Building Materials - Director Accreditation Program (DAP) 2004 - Thai Institute of Directors Association The Federation of Thailand Industries 2008 - 2012

- Executive Vice President, SCG Cement Company Limited 2012

- Being chairman and director of SCG's subsidairies, associated and

other companies which are non-listed as assigned by the company

- Director and Member of Executive Committee,Thai-German Ceramic 2008 - Present

Industry Public Company Limited

- Director and Member of Executive Committee, 2010 - Present

Quality Construction Products Public Company Limited

- President Commissioner, PT Keramika Indonesia Assosiasi Tbk 2011 - Present

Indonesia

- Commissioner, PT Kokoh Inti Arebama Tbk, Indonesia 2011 - Present

- Director, Siam Global House Public Company Limited 2013 - Present

5. Mr. Aree Chavalitcheewingul 50 - B. Engineering (Electrical), Honor - Chiang Mai University - - None - Managing Director, The Siam Ceramic Group Industries Co., Ltd. 2007 - 2008

Vice President - Regional Business, - M.E.(Industrial Engineering and Management) - Asian Institute of Technology - Managing Director, Thai-German Ceramic Industry Public Company Limited 2008 - 2011

SCG Cement-Building Materials - Advanced Management Program (AMP) - Harvard Business School, USA - Director, Thai Plastic and Chemicals Public Company Limited 2011-2012

- Vice President Coporate Administration, The Siam Cement Public 2011-2012

Company Limited

Full name

and PositionAge



Role and Duty

Educational

Institutes Period


Relationship

among

Management

Own

Spouse

or

Immatured

Children

Position

Top Executives

- Executive Vice President,SCG Buidling Materials Company Limited 2012

- Director, Siam Global House Public Company Limited 2012-2013- Being chairman and director of SCG's subsidairies, associated

and other companies which are non-listed as assigned by the company

- Director and Member of Executive Committee, 2008-Present

Thai-German Ceramic Industry Public Company Limited

- Director and Member of Executive Committee, 2011 - Present

Quality Construction Products Public Company Limited

- Commissioner, PT Keramika Indonesia Assosiasi Tbk, Indonesia 2011 - Present

- Commissioner, PT Kokoh Inti Arebama Tbk,Indonesia 2011 - Present

6. Mr. Nithi Patarachoke 50 - B.E. (Industrial), - Chulalongkorn University 4,000 - None - Corporate Planning Director, The Siam Cement Public Company Limited 2005 - 2010

Vice President - Domestic Market, - MBA (Finance and Operations Management) - University of Chicago, U.S.A - Managing Director, SCG Logistics Management Co., Ltd. 2010 - 2013

SCG Cement - Building Materials - Advanced Management Program (AMP) - Havard Business School, U.S..A - Being director of SCG's subsidairies, associates and other companies

which are non-listed as assigned by the company

- Councilor, Thailand Management Association 2006 - Present

- Director, Siam Global House Public Company Limited 2012 - Present

7 Mr. Cholanat Yanaranop 54 - Bachelor of Environmental Chemical - Salford University, Manchester, UK 18,500 - None - Managing Director, Thai Polyethylene Co., Ltd. 1995 - 2005

President, Engineering (Second Class Honours) - Managing Director, Thai Polypropylene Co., Ltd. 1995 - 2005

SCG Chemicals - Master of Chemical Engineering - Imperial College, London, UK - Managing Director, Siam Polyolefins Co., Ltd. 1999 - 2002

- Advanced Management Program (AMP) - Havard Business School, U.S..A - Managing Director, CCC Chemical Commerce Co., Ltd. 2002 - 2004

- Director Accreditation Program (DAP) 2005 - Thai Institute of Directors Association - Managing Director, CCC Polyolefins Co., Ltd. 2002 - 2005

- Executive Vice President, Cementhai Chemical Co., Ltd. 2004 - 2005

- Director, PTT Chemicals Public Company Limited 2005 - 2010

- President, The Thai Institute of Chemical Engineering and Applied Chemistry 2007 - 2008

- Being chairman and director of SCG's subsidairies, associates and other

companies which are non-listed as assigned by the company

- Director, Petroleum Institute of Thailand 2006 - Present

- Advisor, The Thai Institute of Chemical Engineering 2008 - Present

and Applied Chemistry

-Commissioner, PT Chandra Asri Petrochemical Tbk., Indonesia 2011 - Present

- Chairman, Thai Plastic and Chemical Public Company Limited 2012 - Present

Period


Relationship

among

Management

Own

Spouse

or

Immatured

Children

Position

Full name

and PositionAge



Role and Duty

Educational

Institutes

Top Executives

8. Mr. Somchai Wangwattanapanich 55 - B.Engineering (Mechanical) - Chulalongkorn University 16,600 - None - Managing Director, Rayong Engineering & Plant Service Co., Ltd. 2002 - 2004

Vice President - Operations, SCG Chemicals - MBA - Chulalongkorn University - Managing Director, Rayong Olefins Co., Ltd. 2004 - 2007

- Advanced Management Program ( AMP) - Harvard Business School, U.S.A. - Chairman of Map Ta Put Plant Manager Club 2005-2008

- Managing Director, Map Ta Phut Olefins Co., Ltd. 2007-2013

- Vice Chairman of Petrochemical Industry Club, 2010 - 2012

The Federation of Thai Industries

- Executive Committee of the Institute of Industrial and Water Resource 2010 - 2012

and Supplies

- Chairman, Climate Change working group under The Joint Standing 2011 - 2013

Committee on Commerce, Industy and Banking



- Director,The Industrial Environment Institute 2010 - Present

- Vice Chairman of Executive Committee,The Industrial Environment Institute 2011 - Present

- Vice Chairman of Executive Committee ,The Institute of Industrial Energy 2012 - Present

- Vice Chairman, The Federation of Thai Industries 2012 - Present

9. Mr. Roongrote Rangsiyopash 50 - B. Engineering (Mining) - Chulalongkorn University 30,000 - None - Vice President-Production, TileCera Inc., USA 1996 - 1997

President, - M.S. (Industrial Engineering) - University of Texas (Arlington), U.S.A. - President, TileCera Inc., USA 1997 - 2000

SCG Paper - MBA - Harvard Business School, U.S.A. - Corporate Planning Director, The Siam Cement Public Company Limited 2000 - 2005

Member of CSR Committee for - Director Accreditation Program (DAP) 2004 - Thai Institute of Directors Association - Director, PTT Chemical Public Company Limited 2005 - 2010

Sustainable Development - Vice president & CFO, The Siam Cement Public Company Limited 2005 - 2010

- Director, Thai-German Ceramic Industry Public Company Limited 2008 - 2011

- Director, Quality Construction Products Public Company Limited 2010 - 2011



- Chairman of the Board of Directors and Executive Committee, 2011 - Present

Thai Cane Paper Public Company Limited

- Chairman of the Board of Directors and Executive Committee, 2011 - Present

Thai British Security Printing Public Company Limited

- Director, Thai Plastic and Chemicals Public Company Limited 2012 - Present

Period


Relationship

among

Management

Own

Full name

and PositionAge



Role and Duty

Educational

Institutes

Spouse

or

Immatured

Children

Position

Top Executives

-Director, Giga Impact Initiative Board (GII Board) 2013 - Present

National Science and Technology Development Agency (NSTDA)

- Expert Member, Government Pension Fund (GPF) Board Directors 2013 - Present

- Chairman of Risk Management Subcommittee, 2013 - Present

Government Pension Fund (GPF)

Position Period


Relationship

among

Management

Own

Full name

and PositionAge



Role and Duty

Educational

Institutes

Spouse

or

Immatured

Children

Chief Officers in Finance and Accounting

1. Mr. Pichit Leelaphanmetha 49 - Bachelor of Accountancy - Chulalongkorn University - - None - Manager, Managerial Reporting and Consolidation, Corporate 2005

Corporate Accounting Director - Master of Commerce - Thammasat University Accounting Division, The Siam Cement Public Company Limited

Managing Director, - Senior Manager, BAR Process, 2006

SCG Accounting Services Company Limited SCG Accounting Services Company Limited

- General Manager, Corporate Services Group, 2007

Thai Plastic and Chemicals Public company Limited

- Being director and executive of non-listed companies under SCG

as assigned by the Company

- The Committee of Management Accounting, Federation of 2012 - Present

Accounting Professions (FAP) under The Royal Patronage of

His Majesty the King

2. Mrs. Chantanida Sarigaphuti 44 - BBA (Finance) - Chulalongkorn University - - None - Managing Director, SCT Services Co., Ltd. 2008

Corporate Treasurer - M.S. (Finance) - University of Illinois, U.S.A. - Manager International Business Services Division, SCT Co., Ltd. 2008

- General Manager, Corporate Services Group, 2010

Thai Plastic and Chemicals Public company Limited

- Being director and executive of non-listed companies under SCG

as assigned by the Company

Period


Relationship

among

Management

Own

Spouse

or

Immatured

Children

Position

Full name

and PositionAge



Role and Duty

Educational

Institutes

The Company Secretary

1. Mrs. Pornpen Namwong 52 - Bachelor of Economics - Thammasat University 1,000 - None - Manager,Quality System,Thai Polyethylene Co., Ltd. 1993 - 1999

Corporate Secretary Director (Second Class Honours) - Manager, Legal and Business Affairs, SCG Chemicals Co., Ltd. 1999 - 2010

- M.S., Japanese Business Studies - Chaminade University of Honolulu, - Being company secretary of listed company under SCG as assigned

Hawaii, U.S.A. by the company

- Company Secretary Program (CSP) 51/2013 - Thai Institute of Directors Association - Director, Thai Company Secretary Club 2010 - Present

- Anti-Corruption: The Practical Guide (ACPG) - Thai Institute of Directors Association

Full name

and PositionAge



Role and Duty

Educational

Institutes Period


Relationship

among

Management

Own

Spouse

or

Immatured

Children

Position

As at January 1, 2014Position of The Directors of The Siam Cement Public Company Limited in Its Subsidiaries and Associates

Company Name Mr. Chira

yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

SCG Cement-Building Materials X ChairmanSubsidiaries * Vice Chairman

1 SCG Cement Co., Ltd. X / Director2 The Concrete Products and Aggregate Co., Ltd. // President3 The Siam Cement (Kaeng Khoi) Co., Ltd. /// Managing Director4 The Siam Cement (Ta Luang) Co., Ltd.

5 The Siam Cement (Thung Song) Co., Ltd.

6 The Siam Cement (Lampang) Co., Ltd.

7 Siam Mortar Co., Ltd.

8 The Siam White Cement Co., Ltd.

9 The Siam Refractory Industry Co., Ltd.

10 Cementhai Energy Conservation Co., Ltd.

11 Eco Plant Services Co., Ltd.

12 Siam Research and Innovation Co., Ltd.

13 SCI Eco Services Co., Ltd.

14 PT Pion Quarry Nusantara

15 PT SCG Pipe and Precast Indonesia

16 PT Semen Lebak

17 PT SCG Readymix Indonesia

18 PT CPAC Surabaya

19 Q Mix Supply Co., Ltd.

20 CPAC Lao Co., Ltd.

21 CPAC Concrete Products (Cambodia) Co., Ltd.

22 Cementhai Building Materials (Singapore) Pte. Ltd.

23 SCG Building Materials Co., Ltd. X24 The Siam Fibre-Cement Co., Ltd.

25 The Fibre-Cement Products (Lampang) Co., Ltd.

26 Tip Fibre-Cement Co., Ltd.

27 SCG Landscape Co., Ltd.

28 Siam Fiberglass Co., Ltd.

29 Cementhai Gypsum Co., Ltd.

30 Cementhai Ceramics Co., Ltd.

31 Thai Ceramic Co., Ltd.

32 The Siam Ceramic Group Industries Co., Ltd.

33 Cementhai Home Services Co., Ltd.

34 Gemago Co., Ltd.

35 Cementhai Gypsum (Singapore) Pte. Ltd.

36 Cementhai Roof Holdings Philippines, Inc.

37 Cementhai Ceramic (Singapore) Pte. Ltd.

38 Cementhai Ceramics Philippines Holdings, Inc.

39 PT SCG Lightweight Concrete Indonesia

40 SCG Distribution Co., Ltd. X41 SCG Trading Co.,Ltd.

42 SCG Cement-Building Materials Company Limited


yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

43 SCG Logistics Management Co., Ltd. X Chairman44 SCG Trading Services Co., Ltd. * Vice Chairman45 SCG Sourcing Co., Ltd. / Director46 SCG Experience Co., Ltd. // President47 SCG Skills Development Co., Ltd. /// Managing Director48 Keating Capital Partners Pte. Ltd.

49 Kitchener Limited

50 SCG Trading Australia Pty. Ltd.

51 SCG Trading Guangzhou Co., Ltd.

52 SCG Trading Hong Kong Limited

53 SCG Trading Philippines Inc.

54 SCG Singapore Trading Pte. Ltd.

55 SCG Trading USA Inc.

56 PT SCG Trading Indonesia

57 SCG Trading Vietnam Co., Ltd.

58 SCG Trading Lao Co., Ltd.

59 SCG Marketing Philippines Inc.

60 The CPAC Roof Tile Co., Ltd.

61 Thai Ceramic Roof Tile Co., Ltd.

62 Thai Ceramic Holding Co., Ltd.

63 SCG Concrete Roof (Vietnam) Co., Ltd.

64 SCGT Malaysia Sdn. Bhd.

65 CPAC Monier Philippines, Inc.

66 Monier Roofing Co., Ltd.

67 Buu Long Industry & Investment Joint Stock Company

68 PT KIA Serpih Mas


70 PT Keramika Indonesia Assosiasi, Tbk.

71 PT Semen Jawa

72 Kampot Cement Co., Ltd.

73 PT Kokoh Inti Arebama Tbk.

74 The Siam Sanitary Fittings Co., Ltd.

75 PT Tambang Semen Sukabumi

76 Sosuco and Group (2008) Co., Ltd.

77 The Concrete Products and Aggregate (Vietnam) Co., Ltd.

78 Prime Group Joint Stock Company

79 Prime Trading, Import and Export One Member

Limited Liability Company

80 Prime Materials Company Limited

81 Ceramic Research Institution

82 Prime International Im-Ex & Servicing Trading Co.,Ltd.

83 Prime Ngoi Viet Joint Stock Company

84 Prime Pho Yen Joint Stock Company

85 Prime Yen Binh Joint Stock Company

86 Prime Truong Xuan Joint Stock Company

87 Prime Mineral Joint Stock Company

88 Saraburirat Co., Ltd.

89 Mariwasa-Siam Ceramics, Inc.


yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

90 PT Surya Siam Keramik X Chairman91 Myanmar CPAC Service Co., Ltd. * Vice Chairman92 Prime Dai Viet Joint Stock Company / Director93 Prime Thein Phuc Joint Stock Company // President94 Prime Phong Dien Joint Stock Company /// Managing Director95 Prime Dai Thinh Joint Stock Company

96 Prime Dai Loc Joint Stock Company

97 CPAC Monier (Cambodia) Co., Ltd.

98 SCG Trading (Cambodia) Co., Ltd.

99 Thai-German Ceramic Industry Public Company Limited

100 Prime Dai An Joint Stock Company

101 Prime Hop Thinh Joint Stock Company

102 Siam Sanitary Ware Co., Ltd.

103 Siam Sanitary Ware Industry Co., Ltd.

104 Siam Sanitary Ware Industry (Nongkae) Co., Ltd.

105 Prime Tien Phong Joint Stock Company

106 MAWLAMYINE CEMENT LIMITED

107 CPAC Cambodia Co., Ltd.

108 Quality Construction Products Public Company Limited

109 Q-Con Eastern Co., Ltd.

110 Prime Hoa Cuong Joint Stock Company

111 Prime Industrial Joint Stock Company

112 Prime Vinh Phuc Joint Stock Company

113 Siam Cement Myanmar Trading Ltd.

114 Guangxi SCG Logistics Co., Ltd.

115 Sosuco Ceramic Co., Ltd.

116 SCG-Sekisui Sales Co., Ltd.

117 PT Siam-Indo Gypsum Industry

118 PT Siam-Indo Concrete Products

119 SCG Trading Emirates L.L.C.

120 Kampot Land Co., Ltd.

121 Prime Dai Quang Joint Stock Company

122 Prime Hao Phu Joint Stock Company

123 CMPI Land, Inc.

124 SCG Nichirei Logistics Co., Ltd.

125 Thai Prosperity Terminal Co., Ltd.

126 CPAC Monier (Laos) Co., Ltd.

127 Sekisui-SCG Industry Co., Ltd.

128 Survey Marine Services Co., Ltd.

129 Jumbo Barges and Tugs Co., Ltd.

130 Noritake SCG Plaster Co., Ltd.

131 Mariwasa Holdings, Inc.

132 Green Siam Resources Corporation

133 CMPI Holdings, Inc.

134 Siam Global House Public Company Limited

135 Anhui Conch-SCG Refractory Co., Ltd.

136 The Siam Gypsum Industry Co., Ltd.

137 The Siam Gypsum Industry (Saraburi) Co., Ltd.

Associates, Jointly-controlled entity and Other Companies


yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

138 The Siam Gypsum Industry (Songkhla) Co., Ltd. X Chairman139 PT M Class Industry * Vice Chairman140 Pacific Asian Logistic Joint Stock Company / Director141 Asia Cement Public Company Limited // President142 Holcim Cement (Bangladesh) Limited /// Managing Director

SCG Chemicals

Subsidiaries

143 SCG Chemicals Co., Ltd. X144 Thai Polyethylene Co., Ltd.

145 SCG Plastics Co., Ltd.

146 SCG Performance Chemicals Co., Ltd.

147 Rayong Engineering & Plant Service Co., Ltd.

148 Protech Outsourcing Co., Ltd.

149 RIL 1996 Co., Ltd.

150 Texplore Co., Ltd.

151 Vina SCG Chemicals Co., Ltd.

152 SCG Chemicals (Singapore) Pte. Ltd.

153 Tuban Petrochemicals Pte. Ltd.

154 Hexagon International, Inc.

155 C4 Holding Pte. Ltd.

156 PT TPC Indo Plastic & Chemicals

157 Rayong Pipeline Co., Ltd.

158 Thai Plastic and Chemicals Public Company Limited

159 TPC Paste Resin Co., Ltd.

160 The Nawaplastic Industries (Saraburi) Co., Ltd.

161 Nawa Plastic Industries Co., Ltd.

162 Nawa Intertech Co., Ltd.

163 Chemtech Co., Ltd.

164 Total Plant Service Co., Ltd.

165 SCG ICO POLYMERS COMPANY LIMITED

166 Map Ta Phut Tank Terminal Co., Ltd.

167 Minh Thai House Component Co., Ltd.

168 Map Ta Phut Olefins Co., Ltd.

169 Rayong Olefins Co., Ltd.

170 Rayong Olefins (Singapore) Pte. Ltd.

171 Viet-Thai Plastchem Co., Ltd.

172 Alliance Petrochemical Investment (Singapore) Pte. Ltd.

173 TPC Vina Plastic and Chemicals Corporation Ltd.

174 Siam Stabilizers and Chemicals Co., Ltd.

175 Flowlab & Service Co., Ltd.


176 SCG Plastics (China) Co., Limited

177 Siam Mitsui PTA Co., Ltd.

178 SMH Co., Ltd.

179 Siam Styrene Monomer Co., Ltd.

180 Siam Synthetic Latex Co., Ltd.

181 Siam Polyethylene Co., Ltd.

182 Siam Polystyrene Co., Ltd.

183 Rayong Terminal Co., Ltd.

184 PT Siam Maspion Terminal

185 SD Group Service Co., Ltd.


yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

186 Bangkok Synthetics Co., Ltd. X Chairman187 Thai MMA Co., Ltd. * Vice Chairman188 Grand Siam Composites Co., Ltd. / Director189 Thai MFC Co., Ltd. // President190 Siam Tohcello Co., Ltd. /// Managing Director191 Long Son Petrochemicals Co., Ltd.

192 Mehr Petrochemical Company (P.J.S.C.)

193 PT Trans-Pacific Polyethylene Indonesia

194 PT Trans-Pacific Polyethylindo

195 Nawacam Co., Ltd.

196 Riken (Thailand) Co., Ltd.

197 PT Chandra Asri Petrochemical Tbk.

198 GTC Technology US, LLC

199 GTC Technology International, LP

200 Tien Phong Plastics Joint Stock Company

201 PT Trans-Pacific Petrochemical Indotama /202 Thai PET Resin Co., Ltd.

203 Mitsui Advanced Composites (Zhongshan) Co., Ltd.

204 Binh Minh Plastics Joint Stock Company

205 PT Srithai Maspion Indonesia

206 PT Trans-Pacific Polypropylene Indonesia

207 PT Trans-Pacific Styrene Indonesia

SCG Paper

Subsidiaries

208 SCG Paper Public Company Limited X209 Thai Paper Co., Ltd.

210 Thai Union Paper Public Company Limited

211 Siam Kraft Industry Co., Ltd.

212 United Pulp & Paper Co., Inc.

213 Paperlink Inter-Trade Corporation

214 Siam Cellulose Co., Ltd.

215 InfoZafe Co., Ltd.

216 The Siam Forestry Co., Ltd.

217 Panas Nimit Co., Ltd.

218 Thai Panason Co., Ltd.

219 Thai Panadorn Co., Ltd.

220 Thai Panaram Co., Ltd.

221 Suanpa Rungsaris Co., Ltd.

222 Siam Panawes Co., Ltd.

223 Thai Panaboon Co., Ltd.

224 Thai Wanabhum Co., Ltd.

225 Phoenix Pulp & Paper Public Company Limited

226 Phoenix Utilities Co., Ltd.

227 SCGP Excellence Traning Center Co., Ltd.

228 SCG Paper Energy Co.,Ltd.

229 Thai Cane Paper Public Company Limited

230 Thai Containers Group Co., Ltd.

231 Thai Containers Khonkaen Co., Ltd.

232 Thai Containers Rayong Co., Ltd.

233 Vina Kraft Paper Co., Ltd.


yu Isa

rangku

n Na A

yuthay

a

Mr. Snoh

Unakul

Mr. Sum

et Tant

ivejku

l

Mr. Prich

a Attav

ipach

Mr. Pana

s Simasa

thien

Mr. Yos

Euarchu

kiati

Mr. Arsa

Saras

in

Mr. Chum

pol NaLa

mlieng

Mr. Tarri

n Nimmana

haemind

a

Mr. Pram

on Sutiv

ong

Mrs. Tar

isa W

atanag

ase

Mr. Kan

Trakul

hoon

Remarks

234 TCG Rengo (S) Limited X Chairman235 New Asia Industries Co., Ltd. * Vice Chairman236 Alcamax Packaging (Vietnam) Co., Ltd. / Director237 AP Packaging (Hanoi) Co., Ltd. // President238 Packamex (Vietnam) Co., Ltd. /// Managing Director239 PT Primacorr Mandiri

240 Dyna Packs Co.,Ltd.

241 Orient Containers Co., Ltd.

242 Tawana Container Co., Ltd.

243 Thai British Security Printing Public Company Limited

244 Thai British DPost Co., Ltd.

Associates and Other Companies

245 Siam Toppan Packaging Co., Ltd.

246 Siam Nippon Industry Paper Co., Ltd.


248 TCG Rengo Subang (M) Sdn. Bhd.

Other Subsidiaries

249 Cementhai Holding Co., Ltd. X250 Cementhai Property (2001) Public Company Limited

251 Property Value Plus Co., Ltd.

252 SCG Accounting Services Co., Ltd.

253 SCG Legal Counsel Limited X254 CTO Management Co., Ltd.

255 Cementhai Captive Insurance Pte. Ltd.

256 SCG Learning Excellence Co.,Ltd

257 PT SCG Indonesia

258 Siam GNE Solar Energy Co.,Ltd

259 Siam Kubota Corporation Co., Ltd.

260 Siam Kubota Metal Technology Co., Ltd.

261 Siam Kubota Leasing Co., Ltd.

262 Siam Lemmerz Co., Ltd.

263 Siam AT Industry Co., Ltd.

264 Thai Engineering Products Co., Ltd.

265 The Nawaloha Industry Co., Ltd.

266 Aisin Takaoka Foundry Bangpakong Co., Ltd.

267 Muang Thong United Co., Ltd.

268 The Siam Nawaloha Foundry Co., Ltd.

269 Musashi Auto Parts Co., Ltd.

270 IT One Co., Ltd.

271 Toyota Motor Thailand Co., Ltd.

272 Siam Yamato Steel Co., Ltd.

273 Michelin Siam Group Co., Ltd. /


275 Lysando AG

276 Siam Toyota Manufacturing Co., Ltd.

Position of The Management Committee of The Siam Cement Public Company Limited in Its Subsidiaries and AssociatesAs at January 1, 2014

Company Name Mr. Kan

Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks


Subsidiaries

1 SCG Cement Co., Ltd. X / // / / X Chairman2 The Concrete Products and Aggregate Co., Ltd. X * Vice Chairman3 The Siam Cement (Kaeng Khoi) Co., Ltd. X / Director4 The Siam Cement (Ta Luang) Co., Ltd. X // President5 The Siam Cement (Thung Song) Co., Ltd. X /// Managing Director6 The Siam Cement (Lampang) Co., Ltd. X7 Siam Mortar Co., Ltd. X8 The Siam White Cement Co., Ltd. X9 The Siam Refractory Industry Co., Ltd. X

10 Cementhai Energy Conservation Co., Ltd. X11 Eco Plant Services Co., Ltd. X12 Siam Research and Innovation Co., Ltd. X /13 SCI Eco Services Co., Ltd. X14 PT Pion Quarry Nusantara /15 PT SCG Pipe and Precast Indonesia /16 PT Semen Lebak /17 PT SCG Readymix Indonesia /18 PT CPAC Surabaya

19 Q Mix Supply Co., Ltd. / X20 CPAC Lao Co., Ltd. X /21 CPAC Concrete Products (Cambodia) Co., Ltd. X22 Cementhai Building Materials (Singapore) Pte. Ltd.

23 SCG Building Materials Co., Ltd. X / / //24 The Siam Fibre-Cement Co., Ltd. / X25 The Fibre-Cement Products (Lampang) Co., Ltd. / X26 Tip Fibre-Cement Co., Ltd. / X27 SCG Landscape Co., Ltd. / X28 Siam Fiberglass Co., Ltd. / /29 Cementhai Gypsum Co., Ltd. / X,///30 Cementhai Ceramics Co., Ltd. / X,/// /31 Thai Ceramic Co., Ltd. X,/// /32 The Siam Ceramic Group Industries Co., Ltd. / X33 Cementhai Home Services Co., Ltd. / X34 Gemago Co., Ltd. X,/// /35 Cementhai Gypsum (Singapore) Pte. Ltd.

36 Cementhai Roof Holdings Philippines, Inc. /37 Cementhai Ceramic (Singapore) Pte. Ltd.

38 Cementhai Ceramics Philippines Holdings, Inc. /39 PT SCG Lightweight Concrete Indonesia / X40 SCG Distribution Co., Ltd. X / /41 SCG Trading Co.,Ltd. / /42 SCG Cement-Building Materials Company Limited /

\


Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks

43 SCG Logistics Management Co., Ltd. X Chairman44 SCG Trading Services Co., Ltd. * Vice Chairman45 SCG Sourcing Co., Ltd. / / Director46 SCG Experience Co., Ltd. // President47 SCG Skills Development Co., Ltd. /// Managing Director48 Keating Capital Partners Pte. Ltd. / //49 Kitchener Limited

50 SCG Trading Australia Pty. Ltd. X51 SCG Trading Guangzhou Co., Ltd.

52 SCG Trading Hong Kong Limited X53 SCG Trading Philippines Inc. X54 SCG Singapore Trading Pte. Ltd. X55 SCG Trading USA Inc. X56 PT SCG Trading Indonesia X57 SCG Trading Vietnam Co., Ltd. X58 SCG Trading Lao Co., Ltd. X59 SCG Marketing Philippines Inc.

60 The CPAC Roof Tile Co., Ltd. X61 Thai Ceramic Roof Tile Co., Ltd. X /62 Thai Ceramic Holding Co., Ltd. X /

63 SCG Concrete Roof (Vietnam) Co., Ltd.

(Formerly: CPAC Monier Vietnam Co., Ltd.) / X

64 SCGT Malaysia Sdn. Bhd. X65 CPAC Monier Philippines, Inc. X66 Monier Roofing Co., Ltd.

67 Buu Long Industry & Investment Joint Stock Company

68 PT KIA Serpih Mas


70 PT Keramika Indonesia Assosiasi, Tbk. X /71 PT Semen Jawa / /72 Kampot Cement Co., Ltd. X /73 PT Kokoh Inti Arebama Tbk. / /74 The Siam Sanitary Fittings Co., Ltd. / /75 PT Tambang Semen Sukabumi / /76 Sosuco and Group (2008) Co., Ltd. X77 The Concrete Products and Aggregate (Vietnam) Co., Ltd.

78 Prime Group Joint Stock Company X79 Prime Trading, Import and Export One Member Limited Liability Company

80 Prime Materials Company Limited

81 Ceramic Research Institution

82 Prime International Im-Ex & Servicing Trading Co.,Ltd.

83 Prime Ngoi Viet Joint Stock Company

84 Prime Pho Yen Joint Stock Company

85 Prime Yen Binh Joint Stock Company

86 Prime Truong Xuan Joint Stock Company

87 Prime Mineral Joint Stock Company

88 Saraburirat Co., Ltd. / X89 Mariwasa-Siam Ceramics, Inc.


Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks

90 PT Surya Siam Keramik X / X Chairman91 Myanmar CPAC Service Co., Ltd. X * Vice Chairman92 Prime Dai Viet Joint Stock Company / Director93 Prime Thein Phuc Joint Stock Company // President94 Prime Phong Dien Joint Stock Company /// Managing Director95 Prime Dai Thinh Joint Stock Company

96 Prime Dai Loc Joint Stock Company

97 CPAC Monier (Cambodia) Co., Ltd. X /98 SCG Trading (Cambodia) Co., Ltd. X99 Thai-German Ceramic Industry Public Company Limited / /100 Prime Dai An Joint Stock Company

101 Prime Hop Thinh Joint Stock Company

102 Siam Sanitary Ware Co., Ltd. / /103 Siam Sanitary Ware Industry Co., Ltd. / /104 Siam Sanitary Ware Industry (Nongkae) Co., Ltd. / /105 Prime Tien Phong Joint Stock Company

106 MAWLAMYINE CEMENT LIMITED

107 CPAC Cambodia Co., Ltd. X /108 Quality Construction Products Public Company Limited

109 Q-Con Eastern Co., Ltd. / /110 Prime Hoa Cuong Joint Stock Company

111 Prime Industrial Joint Stock Company

112 Prime Vinh Phuc Joint Stock Company

113 Siam Cement Myanmar Trading Ltd.

114 Guangxi SCG Logistics Co., Ltd.

115 Sosuco Ceramic Co., Ltd. X /116 SCG-Sekisui Sales Co., Ltd. X117 PT Siam-Indo Gypsum Industry / X118 PT Siam-Indo Concrete Products X119 SCG Trading Emirates L.L.C. X120 Kampot Land Co., Ltd.

121 Prime Dai Quang Joint Stock Company

122 Prime Hao Phu Joint Stock Company

123 CMPI Land, Inc.

124 SCG Nichirei Logistics Co., Ltd. /125 Thai Prosperity Terminal Co., Ltd.

126 CPAC Monier (Laos) Co., Ltd. /127 Sekisui-SCG Industry Co., Ltd. /128 Survey Marine Services Co., Ltd.

129 Jumbo Barges and Tugs Co., Ltd.

130 Noritake SCG Plaster Co., Ltd. /131 Mariwasa Holdings, Inc.

132 Green Siam Resources Corporation

133 CMPI Holdings, Inc.

134 Siam Global House Public Company Limited / /135 Anhui Conch-SCG Refractory Co., Ltd.

136 The Siam Gypsum Industry Co., Ltd. /137 The Siam Gypsum Industry (Saraburi) Co., Ltd. /



Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks

138 The Siam Gypsum Industry (Songkhla) Co., Ltd. / X Chairman139 PT M Class Industry / * Vice Chairman140 Pacific Asian Logistic Joint Stock Company / Director141 Asia Cement Public Company Limited // President142 Holcim Cement (Bangladesh) Limited /// Managing Director

SCG Chemicals

Subsidiaries

143 SCG Chemicals Co., Ltd. X / / // / /144 Thai Polyethylene Co., Ltd. / X / /145 SCG Plastics Co., Ltd. / X / /146 SCG Performance Chemicals Co., Ltd. / X / /147 Rayong Engineering & Plant Service Co., Ltd. X /148 Protech Outsourcing Co., Ltd. X149 RIL 1996 Co., Ltd. / X /150 Texplore Co., Ltd. X /151 Vina SCG Chemicals Co., Ltd. / X /152 SCG Chemicals (Singapore) Pte. Ltd. /153 Tuban Petrochemicals Pte. Ltd. X154 Hexagon International, Inc. X155 C4 Holding Pte. Ltd.

156 PT TPC Indo Plastic & Chemicals X157 Rayong Pipeline Co., Ltd. X /158 Thai Plastic and Chemicals Public Company Limited X /159 TPC Paste Resin Co., Ltd. X160 The Nawaplastic Industries (Saraburi) Co., Ltd. X161 Nawa Plastic Industries Co., Ltd. X162 Nawa Intertech Co., Ltd. X163 Chemtech Co., Ltd.

164 Total Plant Service Co., Ltd. X165 SCG ICO POLYMERS COMPANY LIMITED X /166 Map Ta Phut Tank Terminal Co., Ltd. / X /167 Minh Thai House Component Co., Ltd.

168 Map Ta Phut Olefins Co., Ltd. / X /169 Rayong Olefins Co., Ltd. / X /170 Rayong Olefins (Singapore) Pte. Ltd. X /171 Viet-Thai Plastchem Co., Ltd.

172 Alliance Petrochemical Investment (Singapore) Pte. Ltd.

173 TPC Vina Plastic and Chemicals Corporation Ltd.

174 Siam Stabilizers and Chemicals Co., Ltd. /175 Flowlab & Service Co., Ltd. X

176 SCG Plastics (China) Co., Limited X177 Siam Mitsui PTA Co., Ltd. / X178 SMH Co., Ltd. / X179 Siam Styrene Monomer Co., Ltd. / X /180 Siam Synthetic Latex Co., Ltd. / X181 Siam Polyethylene Co., Ltd. / X182 Siam Polystyrene Co., Ltd. / X183 Rayong Terminal Co., Ltd. / X /184 PT Siam Maspion Terminal *185 SD Group Service Co., Ltd. / X



Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks

186 Bangkok Synthetics Co., Ltd. / / / X Chairman187 Thai MMA Co., Ltd. / X * Vice Chairman188 Grand Siam Composites Co., Ltd. / X / Director189 Thai MFC Co., Ltd. X // President190 Siam Tohcello Co., Ltd. X /// Managing Director191 Long Son Petrochemicals Co., Ltd. / /

192 Mehr Petrochemical Company (P.J.S.C.)

193 PT Trans-Pacific Polyethylene Indonesia

194 PT Trans-Pacific Polyethylindo

195 Nawacam Co., Ltd.

196 Riken (Thailand) Co., Ltd. /

197 PT Chandra Asri Petrochemical Tbk. / /

198 GTC Technology US, LLC / /

199 GTC Technology International, LP / /

200 Tien Phong Plastics Joint Stock Company

201 PT Trans-Pacific Petrochemical Indotama / /

202 Thai PET Resin Co., Ltd. X

203 Mitsui Advanced Composites (Zhongshan) Co., Ltd. /

204 Binh Minh Plastics Joint Stock Company

205 PT Srithai Maspion Indonesia

206 PT Trans-Pacific Polypropylene Indonesia

207 PT Trans-Pacific Styrene Indonesia

SCG Paper

Subsidiaries

208 SCG Paper Public Company Limited X / / / //

209 Siam Cellulose Co., Ltd. / X

210 InfoZafe Co., Ltd. / X

211 The Siam Forestry Co., Ltd. / X

212 Panas Nimit Co., Ltd. / X

213 Thai Panason Co., Ltd. / X

214 Thai Panadorn Co., Ltd. / X

215 Thai Panaram Co., Ltd. / X

216 Suanpa Rungsaris Co., Ltd. / X

217 Siam Panawes Co., Ltd. / X

218 Thai Panaboon Co., Ltd. / X

219 Thai Wanabhum Co., Ltd. / X

220 Phoenix Pulp & Paper Public Company Limited / X

221 Phoenix Utilities Co., Ltd. / X

222 SCGP Excellence Traning Center Co., Ltd. X

223 SCG Paper Energy Co.,Ltd. X

224 Thai Cane Paper Public Company Limited X

225 Thai Containers Group Co., Ltd. / X

226 Thai Containers Khonkaen Co., Ltd. / X

227 Thai Containers Rayong Co., Ltd. / X

228 Vina Kraft Paper Co., Ltd. / / X


Trakul

hoon

Mr. Chao

valit E

kabut

Mr. Tana

wong Ar

eeratc

hakul

Mr. Pich

it Maip

oom

Mr. Aree

Chavalit

cheew

ingul

Mr. Nithi

Patarac

hoke

Mr. Chol

anat Y

anaran

op

Mr. Som

chai W

angwatta

napani

ch

Mr. Roon

grote R

angsiyo

pash

Remarks

234 TCG Rengo (S) Limited / / / X Chairman235 New Asia Industries Co., Ltd. X * Vice Chairman236 Alcamax Packaging (Vietnam) Co., Ltd. X / Director237 AP Packaging (Hanoi) Co., Ltd. X // President238 Packamex (Vietnam) Co., Ltd. X /// Managing Director239 PT Primacorr Mandiri

240 Dyna Packs Co.,Ltd. X

241 Orient Containers Co., Ltd. X

242 Tawana Container Co., Ltd. X

243 Thai British Security Printing Public Company Limited X

244 Thai British DPost Co., Ltd.


245 Siam Toppan Packaging Co., Ltd. / /

246 Siam Nippon Industry Paper Co., Ltd. /


248 TCG Rengo Subang (M) Sdn. Bhd.

Other Subsidiaries

249 Cementhai Holding Co., Ltd. X // / / / /

250 Cementhai Property (2001) Public Company Limited X,// / /

251 Property Value Plus Co., Ltd. X /

252 SCG Accounting Services Co., Ltd. X

253 SCG Legal Counsel Limited X /

254 CTO Management Co., Ltd. X

255 Cementhai Captive Insurance Pte. Ltd. X

256 SCG Learning Excellence Co.,Ltd X

257 PT SCG Indonesia

258 Siam GNE Solar Energy Co.,Ltd / /


259 Siam Kubota Corporation Co., Ltd. / / /

260 Siam Kubota Metal Technology Co., Ltd. /

261 Siam Kubota Leasing Co., Ltd.

262 Siam Lemmerz Co., Ltd. *

263 Siam AT Industry Co., Ltd. *

264 Thai Engineering Products Co., Ltd. *

265 The Nawaloha Industry Co., Ltd. *

266 Aisin Takaoka Foundry Bangpakong Co., Ltd. *

267 Muang Thong United Co., Ltd.

268 The Siam Nawaloha Foundry Co., Ltd. *

269 Musashi Auto Parts Co., Ltd. /

270 IT One Co., Ltd. X /

271 Toyota Motor Thailand Co., Ltd. /

272 Siam Yamato Steel Co., Ltd. / /

273 Michelin Siam Group Co., Ltd. / /


275 Lysando AG /

276 Siam Toyota Manufacturing Co., Ltd. *

Detail of Directors in subsidiaries with revenue over 10% of total revenue in Consolidated Income Statements(As at January 1, 2014)

CompanyMr. C

holanat Yanaranop**

Mr. Chaovalit E

kabut**

Mr. Roongrote

Rangsiyopash

**

Mr. Kajohndet Sangsuban

Mr. Pich

it Maipoom**

Mr. Somchai W

angwattanapanich**

Mr. Chang Fe

ng Liu

Mr. Yuttan

a Jiamtragan **

Mr. Jirasak S

ingmaneechai

Mr. Nithi Patarachoke**

Mr. Bunn Kasemsup**

Mr. Thongchai Sopon**

Mr. Sakchai Patiparnp

reechawut **

Mr. Polsh

om Chan-Urai**

Mr. Mongkol Hengrojanasophon**

Mr. Pich

it Nithiva

sin

Mr. Suchai Asva

thavornvanit**

Mr. Chainoi P

uankosom

หมายเหต

Subsidiaries X Chairman

1. Map Ta Phut Olefins Co., Ltd. X / / / / /// * Vice Chairman

2. SCG Plastic Co., Ltd. X / / / / /// / Director

3. X / / / / / /// / / / // President

4. SCG Building - Materials Co., Ltd. X / / / /// /// Managing Director

** Group personnel

Rayong Olefins Co., Ltd.

Head of Internal Audit

Mr. Anuwat Jongyindee Age 56

Internal Audit Director

1980 Bachelor of Science (Business Administration), Kasetsart University

1986 Master of Accountancy, Chulalongkorn University 2010 Director Certification Program (DCP) 135/2010,

Thai Institute of Directors Association

2010 Audit Committee Program (ACP) 31/2010, Thai Institute of Directors Association

2010 Director Accreditation Program (DAP) 82/2010, Thai Institute of Directors Association

2003 Accounting Office Manager, The Siam Pulp and Paper Public

Company Limited

2004 Deputy Managing Director - Shared Services

Function 2, Cementhai Accounting Services Company Limited

2005-2010 Corporate Accounting Director, The Siam Cement Public Company Limited

2005-2010 Director of Accounting Committee and President of Accounting Sub-Committee, Federal Accounting Profession of Thailand

2007-2010 Director, Thai Accounting Standard Committee, Federal Accounting Profession of Thailand

Since 2008 Vice President and Auditing Supervision Committee, Association of Provident Fund

Since 2011 Vice President of Accounting System Setting Committee, Federation of Accounting Profession of Thailand

Position in SCC

Education

Previous

Experience

Other Current Positions

Seminar on Role and Responsibility of Director

Pride of SCG SCG

HRH Princess Maha Chakri Sirindhorn’s Trophy for Thailand Corporate Excellence Awards 2012 from Thailand Management Association (TMA) and Sasin Graduate Institute of Business Administration of Chulalongkorn University - Human Resource Management Excellence for the 12th consecutive year - Innovation Excellence for the 8th consecutive year - Corporate Social Responsibility Excellence - Product and Service Excellence - Leadership Excellence - A Decade of Excellence: Hall of Fame

Industry Leader in Construction Materials from Dow Jones Sustainability Indices (DJSI) by Robeco Sustainable Asset Management (RobecoSAM) for the 3rd consecutive year and ranked highest level in Gold Class for the 6th consecutive year (2008 – 2013) - SET Award of Honor in Best Corporate Social Responsibility for the 6th consecutive year from The Stock Exchange of Thailand (2008-2013)

The Best Company from Southeast Asia’s Institutional Investor Corporate Poll of Alpha Southeast Asia magazine - Most Organized Investor Relations - Strongest Adherence to Corporate Governance - Most Consistent Dividend Policy

The Best CEO, Best CFO, Best CSR, Best Investor Relations Company (Thailand) and Best Investor Relations Professional from Asian Excellence Recognition Awards 2013 of Corporate Governance Asia

LEED Platinum in Building Design and Construction (LEED BD+C) from the U.S. Green Building Council (USGBC)

Sustainability Report Awards 2013 in Excellence from The Securities and Exchange Commission CSR CLUB Thai Listed Companies Association and Thaipat Institute

Thailand’s Top Corporate Brand Values 2013 Real Estate and Construction Group from Chulalongkorn University

SCG Cement-Building Materials Siam fiberglass Co.,Ltd and The Siam Sanitary Ware Industry Co.,Ltd

Carbon Reduction Label from Thailand Greenhouse Gas Management Organization (Public Organization)

SCG Logistics Management Co.,Ltd.

The ‘Deming Prize’ from the Japanese Union of Scientist and Engineers SCG Skills Development Co.,Ltd

Honor Plate of Labor Relation 2013 (Skill Development) from Ministry of Labour and Social Welfare

SCG Chemicals Rayong Olefins Co., Ltd

Award for Safety, Occupational Health and Working Environment from Ministry of Labor for the 11th consecutive year

Certification for ISO 50001 Energy Management System from Management System Certification Institute (Thailand)

Map Ta Phut Olefins Co., Ltd

Certification for ISO 50001 Energy Management System from Management System Certification Institute (Thailand)

Siam Mitsui PTA CO., Ltd

Outstanding Award for Safety Occupational Health & Working Environment 2013 for 11th consecutive year

SCG Polyolefins Co., Ltd

Thailand Energy Awards for Outstanding Management of Controlled Plant from Ministry of Energy


Thai MFC Co., Ltd.

Good Governance on Environmental Practice Award by Industrial Estate Authority of Thailand Thai MMA Co., Ltd.


Thai PET Rasin Co.Ltd.

Award for 1 Million Hours Working without DAWC (Silver Medal) from Ministry of Labor

Award for National Occupational Health & Safety from Ministry of Labor Zero Accident Campaign Awards from Ministry of Labor

Thai Plastic and Chemicals Public Co., Ltd


Nawa Plastic Industries Co., Ltd.

Total Energy Management Award from Ministry of Industry

SCG Paper Siam Kraft Industry Co.,Ltd.

The Prime Minister’s Industry Award 2013 for Logistic Management from Ministry of Industry

ASEAN Coal Awards for ‘Best Practice-Clean Coal and Technology in Industry’ from ASEAN Centre for Energy

Thailand Coal Awards 2013 for ‘The Winner of Clean Coal Use & Tecnology (Industry)’ From Ministry of Energy

Thai Britist Security Printing Public Company Limited

CSRI Recognition Awards 2013 ‘The Hornor’ from The Stock Exchange of Thailand Thai Containers Group Co.,Ltd.

The prestige Suriya Sasithorn Award 2013 for the design name ‘celebration’ from the Public Relations Society of Thailand

The first Thai Company that certified for ISO22301 Business Continutity Management (BCM) from Buraeu Veritas Certification (Thailand) Co., Ltd.

AsiaStar Awards 2012 and ThaiStar Packaging Awards 2013 from Ministry of Industry and Asian Packaging Federation

Information of Appraised value of assets N/A

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