Siam Cement Group (SCG) Overview Thailand’s largest industrial conglomerate, and a regional leader in basic materials D,elo;e[[e Founded in 1913, and listed on the Stock Exchange of Thailand since 1976. Historical roots in producing Cement, with core business expansion to include: Petrochemicals, Paper & Packaging, Building Products, and Distribution. In 2008, asset $8.4 billion, net sales $8.6 billion, EBITDA $1.14 billion. Total of approximately 27,000 employees within the ASEAN region. 2 © 2008 SCG

SCG VISION By the year 2015, SCG will be well recognized as an innovative workplace of choice, and a role model in corporate governance and sustainable development. We see SCG as a regional market leader, contributing to the sustainable progress of ASEAN, and the local communities where SCG operates. 

Our commitment as the leader Contributing to the sustainable progress of ASEAN and the local communities where we operate. Creating value for our customers, employees, and all other stakeholders. What should we do to earn the recognition as a sustainable business leader? We can contribute to the sustainable progress of ASEAN and the local communities where we operate. We commit ourselves to creating value for our customers, employees, and all other stakeholders. What is our value to Customers? What is our value to Employees? Who are other stakeholders? What is our value to stakeholders?

Interdependent & mutually reinforcing pillars SCG Sustainable Development Framework Interdependent & mutually reinforcing pillars Compliance with regulations and laws is a minimum requirement for all SCG operations.

“Value-Based Approach” Move beyond compliance, Ensure license to operate, Innovate, and Grow SCG SD roadmap “Value-Based Approach” Gap analysis / Benchmarking Identify key issues for SCG Global concerns World class company practices Related to SCG Global SD issues Sources: global institutes/ organizations Labor Standard 26000 Compliance with regulations and laws is a minimum requirement for all SCG operations.

SCG SD Issues Economy Environment Society Governance Direct economic value generated (Revenues) Economic value distributed Employee wage and benefit Payment to suppliers Taxes Environment Energy Climate change Water management Waste management Ecosystem/Biodiversity Eco-product Logistics Society Community investment & Donation Labor standards & practices Human rights Human resource Stakeholder engagement Governance CG (Trust & Transparency, Anti - corruption, Antitrust) Risk Reporting

Sustainable Development Guidelines Issue: March, 2008

Business should take leading role in conducting Low Carbon Society SCG has committed 10% GHG emissions reduction target for 2020 on 2007 base year level. GHG emissions data collection and calculation have been verified by third party regarding international protocol. Key strategies for GHG emissions reduction Utilize renewable & alternative energy Encourage supply chain to implement the GHG protocol as well as reduction target

Convert our commitment into action Install Waste Heat Generators at all cement plants 310,000 tons CO2 reduction by CDM project 104 MW power unit, 25% substitution of grid electricity Increase alternative energy utilization by 35% in 2014 Conduct energy efficiency programs State-of-the-art technology Improvement initiatives

Green Business : A new wave of Sustainable era Thailand’s first company to develop eco- friendly label, launched on March 24, 2009 Type II declaration conforms to ISO 14021 + not BAU 3 categories: process, use, recycle LCA + R&D are main contributors Green Procurement Policy driven: Green criteria + Greening the Supply Chain From general supplies to raw materials

Green Business : A new wave of Sustainable era Zero-waste to landfill within 2012 R&D aiming to reuse & recycle as raw materials and alternative fuels within & outside SCG Biodiversity Rehabilitation at all quarries Forest Stewardship Council

Networking & Collaboration are pathways for success Become membership of World Business Council for Sustainable Development – WBCSD since year 2000 Participate in 2 member projects Cement Sustainable Initiative – CSI Sustainable Forestry Products Industry - SFPI

Disclose to create trust and Ensure license to operate SCG Sustainability Report First SD report in Thailand since 2001 Verified by GRI as A Level Dow Jones Sustainability Indexes – DJSI In DJSI list 6 consecutive years since 2004 One of the top performance group in Gold class level

Thank you 15 © 2008 SCG