25 From the cover: Content Investor Information Business Operation Sustainable Business 01 Overview of Business and Vision 1 Stock Code SCC 02 Message from the Board of Directors 2 Contacts (Listed on the Stock Exchange of Thailand-SET) Corporate Headquarters Over the year, SCG has long adopted the 4 03 Following the Royal Footsteps of Registration No. 0107537000114 Tel. 66-2586-3333, 66-2586-4444 principles of Sufficiency Economy in its business “ His Majesty King Bhumibol Adulyadej Type of Business Holding Company Fax 66-2586-2974 practice. The balance of economy, society, 04 Financial Overview 10 Website www.scg.co.th e-mail: [email protected] environment and culture has enable the Year of Establishment 1913 Corporate Secretary Office company to survive challenges and crises 05 Operating Results 11 First Trade Date April 30, 1975 Tel. 66-2586-6098 and thrive amid constant global economic 06 Business Highlight 12 Headquarter Address 1 Siam Cement Road, Bangsue, Bangkok Fax 66-2586-3007 changes. SCG Cement-Building Materials 14 10800 e-mail: [email protected] “Sufficiency” does not mean “stop”, but rather SCG Chemicals 18 Registered Capital 1,600 Million Baht Investor Relations Department “working at full potential to achieve sustainable SCG Packaging 22 Paid-up Capital 1,200 Million Baht Tel. 66-2586-3309 Comprised of 1,200 Million Ordinary shares Fax 66-2586-3307 growth”. The principles of Sufficiency Economy 07 Sustainability Highlights 2016 26 is the approach to sustainability which can Par Value 1 Baht par value e-mail: [email protected] 08 Supplementary Information 28 be adopted by all, not only by the agricultural Preferred Share None Enterprise Brand Management Office Fiscal Year January 1 – December 31 of each year Tel. 66-2586-3770 sector. Therefore, operating business in Management and Corporate Governance accordance to the principles of Sufficiency Shareholders The Crown Property Bureau Group holds Fax 66-2586-2974 09 Securities and Shareholders 46 Economy does not mean that one must halt approximately 32.3% of shares while the e-mail: [email protected] 10 Management Structure 49 business growth or maximizing short-term remaining shares are held by other institutional Independent Directors as Minority profitability, but one must rather use the 11 The Governance and 78 and individual shareholders Shareholders’ Representative principles to help achieve business stability Nomination Committee’s Report Fax 66-2586-3007 e-mail: [email protected] and sustainable growth. 12 Corporate Governance 79 With eternal respect and gratitude for H.M. 13 The Remuneration Committee’s Report 111 King Bhumibol Adulyadej, SCG pledges to 14 The CSR Committee for 112 follow the Royal footsteps in sustaining Sustainable Development’s Report the development of our business and giving 15 Corporate Social Responsibilities 114 5 YEARS SHARE PRICES (2012 - 2016) knowledge and act as a role model to other 16 Internal Control and Internal Audit 118 Compared to SET Index organizations to maintain ASEAN sustainable growth and prosperity. 17 Risk Management 124 Set Index SCC Stock Price (Baht) 18 Connected Transactions 130 1,800 600 Financial Position and Operating Performance ” 19 Report on the Board of Directors’ Responsibilities 136 1,500 500 for Financial Statements 1,200 400 20 The Audit Committee’s Report 137 21 Operating Results and Financial Status 140 900 300 22 Consolidated Financial Statements of 142 The Siam Cement Public Company Limited 600 200 and its Subsidiaries 300 100 23 Financial Statements of 232 The Siam Cement Public Company Limited 0 0 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Dec Other Related Information Investors can find further information regarding the Company from 2012 2013 2014 2015 2016 the Annual Registration Statement (Form 56-1) which has been 24 References 284 disclosed at www.sec.or.th or www.scg.co.th 25 Investor Information 285 01 Overview of Business and Vision SCG is a leading ASEAN business conglomerate with Today, SCG is comprised of three core business units, regional focus, and established commitments towards namely 1) SCG Cement-Building Materials, 2) SCG Chemicals business conducts that are in line with good corporate and 3) SCG Packaging. governance and sustainable development principles. Our vision is that, SCG will be a regional market leader, Established in 1913, following the royal decree of His contributing to the sustainable progress of ASEAN and the Majesty King Rama VI, SCG’s cement products were the local communities where we operates. SCG is the first in essential materials for the construction of Thailand’s Thailand to have been included in the prestigious Dow Jones infrastructure projects during that period, which have Sustainability Indices (DJSI) by Robeco Sustainable Asset contributed greatly towards the country’s modernization. Management (RobecoSAM) and has been ranked the longest; Since its inception, SCG has grown continuously and has for 13 consecutive years since 2004. Through SCG’s world earned widespread recognition as a role model for other class business practices, corporate governance principles businesses, both locally and internationally. SCG is also a and uncompromising safety standards, we are committed to role model company that has adopted the principles of creating value for our customers, employees, and all other Sufficiency Economy in business operations, resulting in stakeholders. We will constantly ensure that our operational sustainable business achievement. excellence, technology development and innovation will allow us to provide quality products and services in order to enhance the quality of life for all. 1 02 Message from the Board of Directors 2016 was the year that all Thais suffered the greatest loss In Thailand, the draft constitution was approved after the after the announcement of the passing of H.M. King Bhumibol referendum vote in 2016, making the country’s political roadmap Adulyadej which came in a statement from the Bureau of and timeframe become clearer. As for the economic aspect, The Royal Household on October 13, 2016. numerous economic and industrial reforms have been With eternal respect and gratitude for H.M. King Bhumibol announced, contributing to enhanced competitiveness and future Adulyadej’s dedication and kindness to Thai people, SCG economic growth of the country. pledges to follow the Royal Footsteps in sustaining the SCG remained strategically focused on expanding its development of our business for many years to come. investment in ASEAN and continuously developing high The Board of Directors, the Management, and SCG staff value-added products and services (HVA) to address the needs humbly offer our utmost respect and best wishes to His of customers while embracing digital technology to streamline Majesty King Maha Vajiralongkorn Bodindradebayavarangkun. business efficiency and operations in order to enhance its business Long live His Majesty the King. competitiveness and tackle social and economic challenges. For 2016, SCG reported revenue from sales of 423,442 2016 marked the year of change for the global economy, Million Baht, declining by 4% from the preceding year due triggered by a slew of significant political events and economic largely to lower product prices. Nevertheless, profit for the year factors. Chief among them include Britain’s vote to leave the increased to 56,084 Million Baht, a sharp rise of 24% year-on-year European Union (Brexit), the presidential election results in the in the time of upswing in the petrochemical industry and low U.S., the Philippines and Myanmar, coupled with China’s energy costs, resulting in a higher profit margin. Having taken structural economic reform and fluctuating energy, coal and into the account of the Company’s performance, its overall oil prices. Despite the continued change, ASEAN Economic financial status, and global economic conditions, the Board of Community (AEC) maintained their steady growth pace, propelled Directors has resolved to propose to the 2017 Annual General by government infrastructure investment as well as domestic Meeting of Shareholders a dividend of 19.00 Baht per share for consumption and trade between ASEAN nations. 2016, representing 41% of consolidated profit for the year. 2 The full year dividends was divided into an interim dividend of in only three days, employing innovative construction modules 8.50 Baht per share and a final dividend of 10.50 Baht per share. such as SCG Heim modular system and Smartboard ceiling & wall systems. Commitment to Growing Firmly alongside ASEAN CIERRATM, the world’s new functional material, was SCG has continued to expand its investment in ASEAN in developed in collaboration with Oxford University. As a high pursuit of becoming the region’s sustainable business leader. performance material platform, CIERRATM is used in a wide Major investment projects include cement plants in Myanmar, array of HVA products. Initial applications include flame retardant integrated greenfield cement plant in the Lao People’s polymers, barrier packaging and antimicrobial additives for Democratic Republic, the capacity expansion project at the kraft consumer products. paper facilities in Vietnam, and debottleneck project at Chandra As a total packaging solutions provider, SCG has developed Asri petrochemical facilities in Indonesia. a variety of excellent quality packaging products and services While incorporating sustainable development in its business such as flexible packaging, an innovative packaging solution for investment and expansion, SCG also places high importance food and consumer products that has seen a fast-growing on the concern for society, and the environment and is demand, and “Fest”, food safety packaging produced from clean determined to uplift the quality of life for the community where and safe food grade paper. Added to this is the pop-up it operates. Examples are the SCG Sharing the Dream project corrugated point of purchase display, using corrugated paper that provides scholarships to students in Vietnam, Myanmar, as the main material.