By early 2009, it became apparent that the emergence of financial innovative products and encouragement of market forces to determine business activities were detrimental to orderly growth in advanced economics and have pushed Capitalism to the brink. The voice of deregulation began to ebb away throughout the year which was marked with governments’ rescue programs containing stimulus packages and remedial measures aimed at arresting the downward global spiral but which had only limited and illusive successes. Much is needed to be done! In reality, a return to more regulation, hard work, patience, sufficient philosophy are the order of the new era.

Given the depressing economic environment during year 2009, Siam City Cement Plc has relied on its four pillars of strength: customers, communities, employees and business partners to weather through the turbulence. In the process, your company has exhibited resiliency and agility. A marketing campaign in target areas helped to alleviate weak demand. Strong cost controls were intensified and gained acceptance and support in every department of the company. Everyone recognized the need to fully cooperate and work together. We were successful in issuing medium term debentures which were way oversubscribed. Although profit declined slightly, the financial structure of our company has become more solid and well balanced.

The year 2009 experienced a slowdown in the private sector combined with the simmering government instability and a global economic recession. This resulted in the Thai economy contracting by approximately. 2.3 percent which translated into a decline in construction spending for SCCC in both price and volume. Now your company looks toward the challenging year 2010 with optimism and determination to deliver strong performance. Timely implementation of Thai Government’s investments in infrastructures, both mega projects and local community improvements will be significant factors for Thailand to achieve the declared return to GDP growth of over 3 percent. Your company plans to seize this opportunity and avail ourselves of the efficiency of our operations in order to improve our sales revenue and net profits. The developing political situation will be viewed as politics as usual on the road to democracy.

Again this year, the Board of Directors is highly respectful of our shareholders and has resolved on another appropriate dividend payout with a view to provide the highest possible return to our valued shareholders. The Board thereby proposes a full year dividend of 11 baht per share. Our interim dividend of 6 baht per share was paid on 31 August, 2009 and subject to the upcoming shareholders’ consideration and approval, a final dividend of 5 baht per share will be paid on 7 May 2010.

The Board of Directors would like to take this opportunity to thank the shareholders, customers, suppliers, employees and all stakeholders for their supports and trust extended to Siam City Cement Plc.