The Siam Cement Public Company Limited and its Subsidiaries

Consolidated balance sheets

As at 31 December 2007 and 2006

Assets Note 2007

(in thousand Baht)

Current assets

Cash and cash equivalents 6 4,145,872

Trade accounts and notes receivable

- Related parties 5 2,906,713

- Other companies 7 23,389,608

Receivables from and short-term loans to related parties 5 4,573,885

Current portion of long-term loans to other company 5 399,520

Inventories 8 37,089,871

Other current assets 5,920,333

Total current assets 78,425,802

Non-current assets

Investments in associates 9 46,135,183

Other long-term investments 10 3,184,846

Long-term loans to related parties 5 495,042

Long-term loans to other company 5 1,077,133

Property, plant and equipment 11 108,988,032

Intangible assets 12 3,505,185

Deferred tax assets 13 3,407,983

Other non-current assets 14 3,036,820

Total non-current assets 169,830,224

Total assets 248,256,026

The accompanying notes are an integral part of these financial statements. 2

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated balance sheets
As at 31 December 2007 and 2006

Liabilities and shareholders' equity Note 2007

(in thousand Baht)

Current liabilities

Bank overdrafts and short-term loans

from financial institutions 15 2,819,369

Trade accounts payable

- Related parties 5 3,002,166

- Other companies 20,669,890

Current portion of long-term debts 16 3,037,185

Current portion of debentures 17 24,812,385

Payables to and short-term loans from related parties 5 298,616

Accrued expenses 3,705,746

Income tax payable 1,891,754

Other current liabilities 4,910,906

Total current liabilities 65,148,017

Non-current liabilities

Provident funds 26 368,642

Long-term debts 16 8,473,313

Debentures 17 64,619,016

Deferred tax liabilities 13 94,285

Other non-current liabilities 18 1,013,505

Total non-current liabilities 74,568,761

Total liabilities 139,716,778

The accompanying notes are an integral part of these financial statements. 3

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated balance sheets
As at 31 December 2007 and 2006

Liabilities and shareholders' equity Note 2007

(in thousand Baht)

Shareholders' equity

Share capital

Authorised share capital 19 1,600,000

Issued and paid-up share capital 19 1,200,000

Reserves

Fair value changes (754)

Currency translation changes (697,674)

Equity in associates 200,344

Retained earnings

Appropriated

Legal reserve 20 120,000

General reserve 10,516,000

Unappropriated

From operations of the Company, subsidiaries

and associates 74,793,182

Total equity attributable to the Company's shareholders 86,131,098

Minority interest

- From capital, operations and others 22,408,150

Total shareholders’ equity 108,539,248

Total liabilities and shareholders' equity 248,256,026

The accompanying notes are an integral part of these financial statements. 4

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of income
For the years ended 31 December 2007 and 2006

Note 2007

(in thousand Baht)

Net sales 5 267,736,718

Cost of sales 5 217,274,274
Gross profit 50,462,444

Selling expenses 12,632,323

Administrative expenses 23 12,455,652
Directors’ remuneration 24 83,020
Profit from sales 25,291,449

Gain (loss) on sales of investments and assets for restructuring,

allowance for impairment of investments 4 6,623,903
Other income 25 5,344,688

Profit from operations 37,260,040

Share of profits from investments accounted for using
the equity method 8,243,084

Profit before interest expense,

financial charges and income tax expense 45,503,124
Interest expense and financial charges 27 5,273,273

Income tax expense 28 5,897,578

Profit after income tax expense 34,332,273

Net profit of minority interest (3,980,373)

Net profit 30,351,900

Basic earnings per share (in Baht) 29 25.29

The accompanying notes are an integral part of these financial statements. 5

 2006

(Restated)

(in thousand Baht)

2,434,551

2,959,360

20,328,322

1,857,440

35,715,131

4,080,946

67,375,750

46,359,673

5,400,505

1,413,708

93,004,605

4,402,193

5,213,030

3,094,643

158,888,357

226,264,107

The accompanying notes are an integral part of these financial statements. 6

 2006

(Restated)

(in thousand Baht)

9,313,414

2,429,763

15,285,290

4,543,646

15,732,293

837,232

3,229,784

2,276,688

2,402,899

56,051,009

348,590

10,825,953

64,228,067

9,198

1,235,922

76,647,730

132,698,739

The accompanying notes are an integral part of these financial statements. 7

 2006

(Restated)

(in thousand Baht)

1,600,000

1,200,000

1,748,606

(888,282)

17,108

120,000

10,516,000

62,309,519

75,022,951

18,542,417

93,565,368

226,264,107

The accompanying notes are an integral part of these financial statements. 8

 2006

(Restated)

(in thousand Baht)

258,174,968
201,967,319
56,207,649

11,648,100
12,469,314
83,116
32,007,119

(1,758,972)
4,244,229

34,492,376

10,736,618

45,228,994
5,169,191

4,036,133

36,023,670

(6,572,977)

29,450,693

24.54

The accompanying notes are an integral part of these financial statements. 9

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of changes in shareholders' equity
For the years ended 31 December 2007 and 2006

Reserves Retained earnings

Appropriated Unappropriated Total
from operations equity
Issued and Currency of the Company, attributable to Total
paid-up Fair value translation Equity Legal General subsidiaries and the Company's Minority shareholders'
Note share capital changes changes in associates reserve reserve associates shareholders interest equity
(in thousand Baht)
Balance at 1 January 2006 1,200,000 1,474,185 (310,004) 197,036 120,000 10,407,000 50,858,826 63,947,043 6,746,007 70,693,050
Change in accounting policy 32 - - - - - - - - 3,975,700 3,975,700
Restated balance 1,200,000 1,474,185 (310,004) 197,036 120,000 10,407,000 50,858,826 63,947,043 10,721,707 74,668,750
Changes in shareholders' equity
for 2006
Fair value changes - 274,421 - (167,609) - - - 106,812 - 106,812
Translation loss relating to financial
statements of foreign operations - - (578,278)
### (12,319) - - - (590,597) (160,728) (751,325)
Net income (expense) recognised
directly in shareholders' equity - 274,421 (578,278) (179,928) - - - (483,785) (160,728) (644,513)
Net profit - - - - - - 29,450,693 29,450,693 6,572,977 36,023,670
Total recognised income and expense - 274,421 (578,278) (179,928) - - 29,450,693 28,966,908 6,412,249 35,379,157
General reserve - - - - - 109,000 - 109,000 - 109,000
Dividends 31 - - - - - - (18,000,000) (18,000,000) (6,326,209) (24,326,209)
Increase in minority interest - - - - - - - - 7,734,670 7,734,670
Balance at 31 December 2006 1,200,000 1,748,606 (888,282) 17,108 120,000 10,516,000 62,309,519 75,022,951 18,542,417 93,565,368

The accompanying notes are an integral part of these financial statements. 6

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of changes in shareholders' equity
For the years ended 31 December 2007 and 2006

Reserves Retained earnings

Appropriated Unappropriated Total
from operations equity
Issued and Currency of the Company, attributable to Total
paid-up Fair value translation Equity Legal General subsidiaries and the Company's Minority shareholders'
Note share capital changes changes in associates reserve reserve associates shareholders interest equity
(in thousand Baht)
Balance at 1 January 2007 1,200,000 1,748,606 (888,282) 17,108 120,000 10,516,000 62,309,519 75,022,951 12,926,475 87,949,426
Change in accounting policy 32 - - - - - - - - 5,615,942 5,615,942
Restated balance 1,200,000 1,748,606 (888,282) 17,108 120,000 10,516,000 62,309,519 75,022,951 18,542,417 93,565,368
Changes in shareholders' equity
for 2007
Fair value changes - (1,749,360) - 201,325 - - - (1,548,035) - (1,548,035)
Translation gain (loss) relating to financial
statements of foreign operations - - 190,608 (18,089) - - - 172,519 (123,160) 49,359
Net income (expense) recognised
directly in shareholders' equity - (1,749,360) 190,608 183,236 - - - (1,375,516) (123,160) (1,498,676)
Net profit - - - - - - 30,351,900 30,351,900 3,980,373 34,332,273
Total recognised income and expense - (1,749,360) 190,608 183,236 - - 30,351,900 28,976,384 3,857,213 32,833,597
Dividends 31 - - - - - - (17,868,237) (17,868,237) (3,441,187) (21,309,424)
Increase in minority interest - - - - - - - - 3,449,707 3,449,707
Balance at 31 December 2007 1,200,000 (754) (697,674) 200,344 120,000 10,516,000 74,793,182 86,131,098 22,408,150 108,539,248

The accompanying notes are an integral part of these financial statements. 7

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of cash flows
For the years ended 31 December 2007 and 2006

2007

(in thousand B
Cash flows from operating activities
Net profit 30,351,900
Adjustments for
Unrealised gain on foreign currency exchange (78,120)
Allowance for doubtful accounts and allowance for obsolescence
67,103
Depreciation and amortisation 12,609,588
Allowance for (reversal of) impairment of asse (50,200)
Allowance for impairment of investments 6,019
Gain on sales of investments and assets for res (6,579,722)
Gain on sales of property, plant and equipment (498,560)
Dividend income (2,482,364)

Share of profits from invesments accounted for using the equity method (8,243,084)

Net profit of minority interest 3,980,373

Deferred tax, net 1,862,469

Profit provided by operating activities before changes in

operating assets and liabilities 30,945,402

Decrease (increase) in operating assets

Trade accounts and notes receivable (2,841,817)

Receivables from related parties (46,025)

Inventories (1,321,617)

Other current assets (1,709,502)

Other non-current assets (868,629)

Net increase in operating assets (6,787,590)

The accompanying notes are an integral part of these financial statements. 8

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of cash flows
For the years ended 31 December 2007 and 2006

2007

(in thousand Baht

Increase (decrease) in operating liabilities

Trade accounts payable 6,356,533

Payables to related parties (41,874)

Income tax payable (384,934)

Accrued expenses and other current liabilities 438,658

Provision for provident funds 20,052

Net increase (decrease) in operating liabilities 6,388,435

Net cash provided by operating activities 30,546,247

###

Cash flows from investing activities

Investments in associates and other companies (474,950)

Dividends received 8,539,829

Investments in subsidiaries

Acquisition of subsidiaries net of cash (219,462)

Excess of cost over equity of subsidiaries (32,882)

Minority interest (676,628)

Net increase in investments in subsidiaries (928,972)

Proceeds from sales of investments and assets for restructuring 9,873,558

Purchases of property, plant and equipment (25,683,813)

Proceeds from sales of property, plant and equipment 854,311

Payment received on loans to (loans to) related parties (2,452,229)

Currency translation differences (69,316)

Net cash used in investing activities (10,341,582)

The accompanying notes are an integral part of these financial statements. 9

The Siam Cement Public Company Limited and its Subsidiaries
Consolidated statements of cash flows
For the years ended 31 December 2007 and 2006

2007

(in thousand Baht

Cash flows from financing activities

Borrowings

Bank overdrafts and short-term loans from financial institutions (6,541,746)

Repayments of long-term debts (4,610,860)

Proceeds from long-term debts 1,035,611

Short-term loans (repayment of short-term loans) from related parties (521,495)

Finance lease payment (231,745)

Finance lease liabilities -

Proceeds from issuance of debentures 24,941,730

Redemption of debentures (15,470,689)

Net decrease in borrowings (1,399,194)

Dividends

Cash dividends to minority interest (3,408,317)

Cash dividends (17,868,237)

Total dividends (21,276,554)

Increase in minority interest from increase in share capital 4,075,921

Other non-current liabilities 106,483

Net cash used in financing activities (18,493,344)

###

Net increase (decrease) in cash and cash equivalents 1,711,321

Cash and cash equivalents at beginning of the year 2,434,551

Cash and cash equivalents at end of the year 4,145,872

Supplemental disclosures of cash flow information

Cash paid during the year

Interest expense 5,247,253

Income tax expense 4,336,618

Non-cash transactions

Dividend receivable 1,931,260

The accompanying notes are an integral part of these financial statements. 10
Dividend payable to minority interest 38,083

The accompanying notes are an integral part of these financial statements. 11

 2006
(Restated)
in thousand Baht)

29,450,693

(314,373)
114,367
13,129,026
3,588,400
695
(1,418,576)
(96,774)
(1,491,710)

(10,736,618)

6,572,977

(707,799)

38,090,308

(3,252,527)

65,500

(2,024,006)

(174,206)

(365,064)

(5,750,303)

The accompanying notes are an integral part of these financial statements. 12

 2006

(Restated)

(in thousand Baht)

(733,653)

(61,997)

478,213

(243,768)

23,711

(537,494)

31,802,511

(6,743,222)

9,448,811

363,963

(81,703)

(416,124)

(133,864)

5,822,530

(16,116,632)

304,121

1,253,535

(774,826)

(6,939,547)

The accompanying notes are an integral part of these financial statements. 13

 2006

(Restated)

(in thousand Baht)

892,504

(4,150,445)

4,008,104

93,892

810,020

24,904,698

(29,538,026)

(2,979,253)

(6,320,996)

(18,000,000)

(24,320,996)

2,308,907

9,504

(24,981,838)

(118,874)

2,553,425

2,434,551

5,274,952

4,299,357

1,226,646
The accompanying notes are an integral part of these financial statements. 14
 5,213

The accompanying notes are an integral part of these financial statements. 15