Domestic Market

1
Domestic Market Exports

• Ms. Chantana Sukumanont
• Deputy Chief Executive Officer

2
Economy still grew, but construction slowed down
GDP growth rate

• In 2008, Thailands economy had slow growth since
  Q2/08 mainly due to political turmoil impacting
  investors confidence
• An estimated GDP growth rate in 2008 is 3.9

GFCF growth rate in Construction investment

• InQ3/08 construction investment both private and
  public had negative growth

3
2008 Business environment affected all industries

• Slow-down in private and public investment as a
  result of
• Hamburger Crisis
• Increase in energy costs
• Domestic political turmoil
• High inflation
• Number of construction permits nationwide dropped
  by 6 y-o-y (as of Sept08)
• Continued drop in Consumer Confidence Index
• Consumer behavior shifted towards mid-to-low
  price property segment
• Delayed government projects

4
Land allotment and steel displayed similar impact
The number of Land Allotment permits nationwide

• Number of Land Allotment permits nationwide
  reduced by 6 y-o-y (JanSep 08)

Industrial Factory Building
Low-rise Housing
Commercial Building
Avg
Hotel Building
Office Building
High-rise Housing
Domestic iron steel consumption (Mio.t) 2008
(source BOT)

• Domestic iron steel consumption dropped 9.4
  from 2007

9 14 -21 -38
Growth y-o-y
5
Domestic Capacity and Demand (BOT)
Large excess supply has started since 1998, and
tends to go on..
Total capacity 56.2 Mio.ton
Excess Capacity 15.8 Mio.ton
Export
Domestic
Source Thai Cement Manufacturers Association
(TCMA), Bank of Thailand
6
Domestic Capacity and Demand (BOT)
Siam Cement (SCI) 23.2 mtpa Siam City Cement
(SCCC) 12.2 mtpa TPI Polene (TPIPL) 9.0
mtpa Asia / Jalaprathan (JCC) 7.4
mtpa Cemex 0.8 mtpa Samakkee Cement (SMC)
0.1 mtpa Thai Pride Cement (TPCC) 0.9
mtpa Total 56.2 mtpa
SCI 2.11 mtpa
Lampang
JCC 1.2 mtpa
SMC 0.1 mtpa
Nakornsawan
Lopburi
Saraburi
TPCC 0.96 mtpa.
Cement per Capita Consumption
(kg) 1995 562 1996 614 1997 595 1998 332
1999 300 2000 288 2001 294 2002 354
2003 372 2004
424 2005 450 2006 438 2007 430 2008 382
SCI 14.2 mtpa SCCC 14.8 mtpa TPIPL 9.0
mtpa ASIA 5.0 mtpa Cemex 0.8 mtpa
41.2 mtpa
Phetchburi
2,169 Km.
JCC 1.2 mtpa
SCI 6.91 mtpa
Nakornsrithammarat
991 Km.
7
SCCC Export Volume could not avoid impact

• SCCC export sales volume in Q4/08 and 2008
  dropped 36 y-o-y, higher than Thailands export
  volume decline. This is due to the reduction of
  clinker production volume by 2.0 Mio.t at Plant 1

18.3
-14
4.5
-18
15.7
3.7
-36
-36
Mio.t
Source Thai Cement Manufacturers Association
(TCMA), SCCC
8
Cement solution and service as value proposition
Cement
Fly ash

• Initiated Baan U Sabai
• Implemented 2 in 1 Silo
• Introduced 40 kg bag cement

• Launched INSEE Technical Services Center

9
INSEE Mortar Dedicated production to start

• The new modern Dry Mortar Plant will be completed
  and fully operational on 1St March 2009
• To capture new opportunities in the market by
  enhanced mortar product family with tile adhesive
  mortars, skim coat and other special cements
• Introducing a new mortar bag design with
  application base concept

New mortar plant at Saraburi
10
INSEE Concrete Growth and network building

• Expanded INSEE Concrete Franchise as planned

11
INSEE Concrete Growth with new services

• Introduced small ready-mixed concrete trucks

12
INSEE Aggregates Capture new opportunity

• Continue strategy of supporting vertical
  integration and capturing new business
  opportunities in Bangkok and Eastern Seaboard
  markets
• In the process of consolidating investments,
  optimizing operational processes and implementing
  cost-saving measures

13
CONWOOD Outsmart with new products quality

• Product Name Eave 2 in1 (W 235 mm x T 22mm.xL
  3050mm.)

• Product Positioning Value to customers
• Wooden texture
• Save cost of installation
• One time installation
• 1-1.2 meter length of rafter
• Less accessories
• High strength and no bending

Launched Jan 2009
Product Name Decorative Panel V-Groove (W 305 mm
x T 11mm.xL 3050mm.)
Product Positioning Value to customers

• Consistency in product quality

• Cost-saving for contractor
• Time-saving on installation

• Natural wood look

Launched Jan 2009
14
CONWOOD Total service to meet customer needs
I-service Product installation and EPOXY
painting for
3. Sunshade and Plank 2 4. Fence
1. Decorative Deck 4, 6, 8 and 12 2. Stair
cases - horizontal and vertical
Launched Jan 2009