SCG APPLICATION [System] Corporate Overview 1 ESTABLISHMENT AND MAJOR DEVELOPMENTS OF SCG Founded Under the Royal Decree of His Majesty King Rama VI in 1913 2 SCG BUSINESS PHILOSOPHY : THE 4 CORE VALUES Adherence to Fairness Belief in the Value of the Individual Concern for Social Responsibility Dedication to Excellence 3 STOCKHOLDER STRUCTURE SHAREHOLDER STRUCTURE • More than 12,000 shareholders • Majority of the shares (30%) are held by the Crown Property Bureau 4 ิ ค้า และจานวนพน ักงาน บริษ ัทในเครือฯ สน SCG: Consists of more than 80 major companies Manufactures 64,000 product items Employs approximately 20,000 people 5 Evolution of The SCG Begin with Cement Business Follow by Building Materials Expand to Other Business Business Restructuring after the Crisis 6 Business Units of SCG Staffs 1,580 6,000 4,150 7,400 1,000 Company 24 20 14 32 10 Petrochemical products from upstream petrochemicals Products & Services 7 Printing & writing paper, Packaging paper, Corrugated containers Gray cement, Readymixed concrete, Concrete product, White cement, Mortar and Refractories Roof tiles, Ceramic floor/ wall tiles, Paving blocks, Sanitary wares and Faucets Distribution Business: domestic and international trading, logistics, and warehousing The SCG Facts Subsidiaries • Cementhai Chemicals • CCC Polyolefins (CCCP) • Thai Polyethylene (TPE) • Thai Polyethylene (TPE 1993) • Thai Polypropylene (TPP) • Thai Polypropylene (TPP 1994) • CCC Chemical Commerce (CCCC) • Rayong Olefins (ROC) • Map Ta Phut Tank Terminal (MTT) • Rayong Pipeline RPL) Joint with Other Company • Rayong Engineering & Plant Service • Pacific Plastics (Thailand) (PPTL) • Siam Polystyrene (SPCL) • Siam Synthetic Latex (SSLC) • Siam Styrene Monomer (SSMC) • Siam Polyethylene (SPE) • Siam Mitsui PTA (SMPC) • Grand Siam Composites (GSC) • Thai PET Resin (TPRC) • Thai MMA (TMMA) • Thai MFC Co., Ltd. (TMFC) GO TO AWARD PAGE 8 Pulp and Printing & Writing Paper Business PULP •Siam Pulp and Paper •Siam Cellulose •Phoenix Pulp & Paper Forestry •Siam Forestry Paper •Thai Paper •Thai Union Paper Industrial Paper& Packaging Business •Siam kraft Industry • The Siam Cement (Ta Luang) • The Siam Cement (Kaeng Khoi) • The Siam Cement (Thung Song) • The Siam Cement (Lampang • The Concrete Products and Aggregate • Siam Mortar • The Siam White Cement •Siam Refractory • Cementhai Sales & Marketing •Thai Kraft Paper Industry •Thai Union Paper Industry •United Pulp & Paper (Philippines) Containers •Thai Containers •Thai Containers Industry •Thai Containers Ratchaburi •Thai Containers Songkhla •Thai Containers Chonburi •City Pack •Nippon Hi-Pack (Thailand) •Thai Containers V&S Others Siam Toppan • Cementhai Logistics • Siam Cement Trading • Cementhai Home Mart Subsidiaries • Cementhai Building Products • The Siam Fibre-Cement • Tip Fibre-Cement • The CPAC Roof Tile • The CPAC Roof Tile Industry • Thai Ceramic Roof Tile • The Siam CPAC Block • The Siam CPAC Block Industry • Saraburirat Co • The CPAC Concrete Products • The CPAC Concrete Industry • Cementhai Gypsum • The Siam Moulding Plaster • The Siam Nawaphan • Siam Fiberglass • Thai Ceramic • The Sosuco Group Industries • PT.Surya Siam Keramik • Beijing Cementhai Ceramic Associated and Other Companies • The Siam Gypsum Industry. • The Siam Gypsum Industry (Saraburi) • The Siam Gypsum Industry (Songkhla) • Sosuco Ceramic • Siam Sanitary Ware • Siam Sanitary Ware Industry • The Siam Sanitary Fittings • Mariwasa Manufacturing • Saim Mariwasa TOTO Qu i c k Ti m e ™ a n d a TIF F (Un c o m p re s s e d ) d e c o m p re s s o r a re n e e d e d to s e e th i s p i c tu re . Qu i c k Ti m e ™ a n d a TIF F (Un c o m p re s s e d ) d e c o m p re s s o r a re n e e d e d to s e e th i s p i c tu re . Chemicals [System] APPLICATION 9 Chemicals Business • Start with establishing a plant to produce high density polyethylene resins in 1989 • Joint venture with – The Dow Chemical of the U.S.A. (Olefins) – Mitsui Chemicals (Aromatics) 10 Chemicals Business Olefin (upstream) -Ethylene -Propylene Polyolefin (downstream) -Polyethylene -Polypropylene • Production Capacity – 1.1 million tons/year (Polyolefin) – Capacity Share 35% • Production Facilities – Rayong 11 Chemicals Business Chemicals Business CEMENTHAI CHEMICALS CO., LTD. Major Products : Olefins and Polyolefins Major Companies : • Rayong Olefins Co., Ltd. • CCC Polyolefins Co., Ltd. • Thai Polyethylene Co., Ltd. • Thai Polypropylene Co., Ltd. • CCC Chemical Commerce Co., Ltd. Joint ventures with The Dow Chemical Company (USA) Joint ventures with Mitsui Chemicals, Inc. (Japan) Joint ventures with Other Companies Overseas Investment Plant Location : 12 Rayong BACK TO BUSINESS GROUP GO TO AWARD PAGE Paper APPLICATION [System] 13 Paper Business • Start with the acquisition of the kraft paper business in 1975 • Paper and Packaging business’s product offerings fall into two categories: – Industrial Paper and Packaging – Pulp and Printing & Writing Paper • Production Facilities – Ratchaburi(Banpong), Kanchanaburi (Wangsala), Khonkaen 14 Industrial Paper Virgin Pulp Only - 424,000 tons/year Printing and Writing Paper - 345,000 tons/year - Capacity Share 34% - Market Share 55% Kraft Paper (Domestic) - 1,210,000 tons/year - Capacity Share 51% - Market Share 51% 15 Corrugated Carton - 450,000 tons/year - Capacity Share 21% - Market Share 29% Paper Products Industrial Paper and Packaging 16 Pulp and Printing & Writing Paper Paper Business Paper Business THE SIAM PULP AND PAPER PUBLIC COMPANY LIMITED Major Products : Pulp and printing & writing paper, industrial paper and packaging Major Companies : Industrial Paper • Siam Kraft Industry Co., Ltd. • Thai Kraft Paper Industry Co., Ltd. Packaging • Thai Containers Group Co., Ltd. • Citypack Co., Ltd. Pulp and Printing & Writing Paper • The Siam Forestry Co., Ltd. • The Siam Pulp and Paper Public Company Limited • Siam Cellulose Co., Ltd. • Phoenix Pulp and Paper Public Company Limited Plant Location : 17 Rajburi, Kanjanaburi and Songkla BACK TO BUSINESS GROUP GO TO AWARD PAGE Cement APPLICATION [System] 18 Cement Business • Began its first decade of operations during World War I with the first cement plant at Bangsue • The largest combined grey cement capacity in ASEAN, and operating the world’s biggest cement kiln • Producing and distributing cement readymixed concrete, and refractory products 19 Cement Business • Production Capacity – SCI: 23.2 million tons/year – Capacity Share 43% – Thailand: 54.5 million tons/year • Production Facilities – – – – – 20 Ta luang(Saraburi) Khao Wong(Saraburi) Khaeng Khoi(Saraburi) Lampang Tung Song(Suratthani) Cement Products REFRACTORIES 21 Cement Business Cement Business SIAM CEMENT INDUSTRY CO., LTD. Major Products : Various types of cement, ready-mixed concrete, dry mortar, and refractories Major Companies : Grey Cement • The Siam Cement (Ta Luang) Co., Ltd. • The Siam Cement (Thung Song) Co., Ltd. The Siam Cement (Kaeng Khoi) Co., Ltd. The Siam Cement (Lampang) Co., Ltd. White Cement • The Siam White Cement Co., Ltd. Mortar • Siam Mortar Co., Ltd. Ready-Mixed Concrete • The Concrete Products and Aggregate Co., Ltd. • The CPAC Ready Mixed Concrete (South) Co., Ltd. Other • The Siam Refractory Industry Co., Ltd. • SCI Plant Services Co., Ltd. Plant Location : 22 Saraburi, NakornSriThammarat and Lumpang BACK TO BUSINESS GROUP GO TO AWARD PAGE APPLICATION Building materials [System] 23 Building Materials Business • Start with The Siam Fiber-Cement Company to produce roofing tiles in 1938 • Thailand’s largest manufacturer of Building Materials including – Roofing Products: Fiber cement roof, Concrete roof, Ceramic roof – Ceramic: Ceramic tile, Sanitary ware & fittings – Others: Concrete products, Glasswool insulation 24 Building Materials Business Concrete Roof Tile 25 Wood Plank Building Materials Business CPAC Earthrock CPAC Cobble Stone 26 CPAC Laguna Building Materials Business Ceramic Tile 27 Building Materials Business Sanitary Ware 28 Building Materials Business Building Materials Business CEMENTHAI Building Materials CO., LTD. Major Products : Roof tiles, ceramic tiles, sanitary wares, sanitary fittings, concrete paving blocks, post-tension floor and structure, and gypsum boards Major Companies : Roofing Products • The Siam Fibre-Cement Co., Ltd. • The CPAC Roof Tile Co., Ltd. • Thai Ceramic Roof Tile Co., Ltd. Ceramic Tiles • Thai Ceramic Co., Ltd. • Sosuco Ceramic Co., Ltd. • Mariwasa Manufacturing, Inc. (The Philippines) Sanitary Wares • Siam Sanitary Ware Co., Ltd. • TOTO Siam Mariwasa, Inc. (The Philippines) 29 Building Materials Business Building Materials Business CEMENTHAI Building Materials CO., LTD. Major Companies : Sanitary Fittings • The Siam Sanitary Fittings Co., Ltd. Concrete Products • The Siam CPAC Block Co., Ltd. • The CPAC Concrete Products Co., Ltd. • The CPAC Concrete Industry Co., Ltd. Gypsum and Other Businesses • The Siam Gypsum Industry Co., Ltd. • The Siam Moulding Plaster Co., Ltd. • Siam Fiberglass Co., Ltd. Plant Location : Saraburi and NakornSriThammarat BACK TO BUSINESS GROUP 30 GO TO AWARD PAGE Distribution [System] APPLICATION 31 Distribution Business • Specializing in distribution, local and oversea, together with logistics, warehousing and delivery • And also in the retail business, Cementhai Home Mart 32 Distribution Business 33 Distribution Business Cementhai Home mart 34 Distribution Business 35 Distribution Business Distribution Business CEMENTHAI DISTRIBUTION CO., LTD. Major Products : Local and international trade, logistics, delivery and warehousing services Major Companies : • Cementhai Sales and Marketing Co., Ltd. • SCT Co., Ltd. • Cementhai Logistics Co., Ltd BACK TO BUSINESS GROUP 36 GO TO AWARD PAGE Awards BACK TO BUSINESS GROUP 37 Awards 2004-2005 Categories Overall Corporate Governance 38 Awards • • • • • Asia’s Best Companies Asia’s Leading Companies Best Company Investor Relations Best Performance in property & Construction Industry Thailand Corporate Excellence Awards: Overall Corporate Excellence , Visionary Leadership • • Best Corporate Governance in Thailand Best Practice Winner : Corporate Governance Major Public Company Category Disclosure Award SET Awards Honor Award for Destination in Maintaining Excellent Corporate Governance Report • • management • • • • Deming Prize Best CEO The Prime Minister’s Industry Award Thailand Corporate Excellence Awards Products & Services • • • • Thailand Corporate Excellence Awards The Prime Minister’s Industry Award Thailand’s Best Innovation Awards Thailand Quality Class Award Safety / Environment • • The Prime Minister’s Industry Award Outstanding Award for Safety, Occupational Health, and Environment Human Resource • • Thailand Corporate Excellence Awards Golden Award for Best Work Place Awards Summary 2004-2005 SCG Awards 2004 Business Performance (International) • The World’s Most Attractive Big Public Companies for Investors 2004 - Forbes • Deming Application Prize, Union of Japanese Scientist and Engineer (JUSE) – CCC Polyolefins Company Limited (Thailand) – Siam Mitsui PTA Company Limited (Thailand) – Thai Ceramic Company Ltd. (Thailand) • • Thailand’s Top Company, Asian Wall Street Journal FinanceAsia Awards 2004, FinanceAsia Mag. - No.1 Ranking in of the Best Managed Company, Best investor Relations and Best Corporate Governance,No.4 Ranking in of the Most Committed to Strong Dividend Policy Awards 2005 • • • • Thailand’s Top Company, Asian Wall Street Journal Best Investor Relations, Leading CFO และ Leading IR Professional In Building Materials Industry in Asia - Investor Institutional IR Magazine Awards Best Investor relations in South East Asia 2005 Best Thai IR No.44 ranking in the Asian Asian leading corporations in 2005, BusinessWeek Awards 2006 • 39 BEX Highest Trading of the Year, SET Awards Summary 2004-2005 SCG Awards 2005 Business Performance (in Thailand) • • • • • SET awards, Best Performance 2005 - กลุม ่ อสังหาริมทรัพย์และก่อสร ้าง TBLA Awards 2005 - Thailand CEOs’ Choice of the Year -คุณชุมพล ณ ลาเลียง TQC 2005 - บริษัท ผลิตภัณฑ์และวัตถุกอ ่ สร ้าง จากัด Thailand Corporate Excellence Awards - Overall Corporate Excellent, Human Resource Management The Prime Minister's Industry Awards – ประเภทการรักษาคุณภาพสิง่ แวดล ้อม บริษัท ปูนซีเมนต์ไทย (ท่าหลวง) จากัด โรงงานเขาวง จ. สระบุร,ี ประเภทการบริหารความปลอดภัย - บริษัท สยามบรรจุภัณฑ์ จากัด จ. ปทุมธานี, ประเภทการบริหารงานคุณภาพ - บริษัท สยามบรรจุภัณฑ์อต ุ สาหกรรม จากัด จ. สมุทรปราการ Awards 2004 CG • (International) • CG (in Thailand) Awards 2004-2006 • • CG Disclosure Awards 2005 – คณะกรรมการ ก.ล.ต. SET awards 2004-2006 Honor Award for Distinction in Maintaining Excellent Corporate Governance report CSR Awards 2006 Innovation Awards 2005 Sustainability (Performance + CG + CSR) 40 Best Corporate Governance 2004 – Euromoney, No.1 Ranking in Thailand, No. 5 Ranking in Asia and No. 11 Ranking in the World Best Corporate Governance 2004, The Asian Corporate Governance Association - 1st Ranking in Thailand and 10th Ranking in Asia • • Corporate Social Responsibility Awards - SET AFTA Excellence Awards, Innovation Award 2005 – Citypack, SCG Awards 2004-2005 • Dow Jones Sustainability World Index (DJSI) APPLICATION [System] 41