Challenges Ahead and Strategic Initiatives

1
Challenges Ahead and Strategic Initiatives

• Mr. Philippe Arto
• Chief Executive Officer

2
Negative trend of World Economic 2009

• Hard hit by Hamburger Crisis, World GDP in 2009
  is projected to grow only 0.9.
• Economic Dominant Countries like the US, EU
  country, Japan and Singapore are expected to have
  negative GDP growth rate.
• Thailand GDP is forecasted by many sources to
  have negative growth rate. However, Governments
  economic stimulus packages are a vital key of the
  GDP direction.

3
Prices of Fuels
World crude oil price (USD per barrel) Coal
price (USD per ton)
Thailand diesel price (Bath per liter)
Source EPPO, OPEC
4
Development of domestic cement sales priceand
production cost squeezed margins
Note Based Year 2004
5
Geocycle New platform to convert waste materials
into energy
Private vehicle entrance, with HQ on left
Weigh bridges inspection house

• In August of 2008, Geocycle has opened its new
  state-of-the-art platform which has ability to
  produce homogeneous alternative fuels from waste
  materials with capacity of 100,000 tons per year.

6
Geocycle Safe waste elimination and replacing
coal by alternative fuels

• SCCC has begun to co-process treated wastes into
  alternative fuels and raw materials into the
  cement kilns. Examples of these wastes are
  Sorted municipality waste, fly ash and bottom
  ash, liquid wastes, industrial sludge, shredded
  solids, etc.

Warehouse

• Geocycle is expected to be able to produce
  alternative fuels to replace up to 10 percent of
  solid fuels used to fire cement kilns by 2010

Laboratory
7
Waste Heat Recovery Saving resources and
environment

• We are now recovering waste heat from Kiln 4
• Hot gas from Kiln 4 will be used to dry sand in
  our new mortar plant starting in 2009

5
4
Kiln 5
Kiln 6
1
6
7
2
3
Simulated picture

• In 2010, recovered waste heat from kilns 5 and 6
  will be used to produce about 25 megawatts of
  electricity, replacing about 25 of our
  electricity consumption saving 100,000 tons of
  CO2 emissions per year. Investment of US50
  million.

8
Service Innovation to deliver customer
satisfaction

• The first in industry to offer Mobile Lab

• 24 x 7 Customer Service Center to support all
  customer needs

• Logistics Control Center to ensure on-time and
  safe transportation

9
People Development always in focus

• 54 million baht invested in training
  development (average 27,000 baht per employee)
• 129 managers employees have been sent to attend
  HOLCIM training/conference
• 9 employees from SCCC group companies were
  transferred /assigned to work with Holcim group
• 75 of promotion/transfer are from within SCCC
• Competency based People Development
• Systematic On-going People Development

Excellent Labor Relations Labor Welfare Award
2008
10
Conclusion

• The current crisis impacts our markets, but also
  offers opportunities to reduce our costs
• SCCC is a strong company, with solid long-term
  strategy
• We have a real ability to adapt and to keep
  delivering a sustainable performance to all
  stakeholders