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Page 1: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

April 2011

Page 2: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Agenda

� Overview

� Leading Manufacturer of AA & AE and PMIDA/Glyphosate

� Industry Outlook

� Financial Performance

� Ongoing Projects

� Investment Merits

Page 3: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section One

Overview

Page 4: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Overview Of SunVic

► First-mover and largest PRC-based company to undertake large-scale

production of acrylic acid (“AA”) and acrylate esters (“AE”)

► Leading manufacturer of PMIDA & Glyphosate

► Manufacturing facilities located in Yancheng (Chenjiagang Chemical

Zone, with a 3000-tonne liquid-cargo jetty) and Taixing in Jiangsu, PRC

► Client base of over 500 customers located in PRC and overseas markets

spanning across Asia, Middle East, Europe and North and South America

etc.

Page 5: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Strategic Location

Yancheng, Chenjiagang Chemical Zone- AA (205Kpa) & AE (250Kpa)- 1,000,000-tonne Cracking Plant (to be

completed by Q2 2011)- A 3,000-tonne liquid cargo jetty

Nantong Port, Zhangjiagang Port, Shanghai Port

Liangyungang Port

Jiangsu province

- Good infrastructure and transportation links

► Located in eastern region of the PRC with highest growth in demand for AA and AE

► Proximity to our major suppliers in Jiangsu province and neighbouring Shandong province

► Convenient land and water transportation links

► Lower labour and land costs compared with Southern Jiangsu province

Tai Xing, Chemical Zone- Phase I of 160 Kpa AA plant (complete by end 2011)- Phase II of 160 Kpa AA plant (complete by 1H2012)

Page 6: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Expanding Sales & Marketing Coverage

Asia Market

► More than 80% of our products

supplied to Asia (including the

PRC market)

Overseas Markets

► Overseas customers include

large MNCs such as Degussa

and ECEM B.V. in Europe

► Our products have also been

exported to Japan, Taiwan,

Hong Kong, India, Korea,

Southeast Asia, Australia, Europe and South and North

America etc

South and North America

Set up sales offices in Brazil and

Argentina

Over 500 customers around the

world

Over 500 customers around the

world

Page 7: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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AA & AE – Building Blocks For Essential

Industrial & Consumer Products

Source: CMAI

Super Absorbent Polymers (SAP)

Polyacrylates

Detergent Builders

Water Treatment

Detergents

Disposable Baby Diapers

Female Hygiene Products

Emulsions

Plastic Additives

Acrylic Rubber

Textile Treatments

Coatings, Adhesives, Sealants

Automotives

Textiles

AA

AE

Adult Incontinency Products

Page 8: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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PMIDA – Essential Material Of Glyphosate

PMIDA

Glyphosate(herbicide/ weeds killer)

(Effective in transgenic crops plantation)

Page 9: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section Two

Leading Manufacturer of AA

& AE and PMIDA/Glyphosate

Page 10: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Global Distribution of AA Production Capacity

Country/Region

America Europe PRC Japan Others Total

Capacity (‘000 tonnes)

1,355 1,290 1,138 600 773 5,156

Source: 2010 AA Industry Summary,

Author: Zheng Chengwang

Page 11: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Global Top 10 Manufacturers

Company Name Country Global Capacity

(KTp.a.)

BASF Germany 1,140

Dow Chemical U.S.A 600

Akema U.S.A 595

Nippon Shokubai Japan 515

StoHaas Monomer U.S.A 430

Formosa Taiwan 320

Jiangsu Jurong (Sunvic) PRC 205

Shanghai Huayi PRC 200

LG Chemical Korea 193

American Acryl U.S.A 120

(as of Dec 2010)

Source: 2010 AA Industry Summary,

Author: Zheng Chengwang

Page 12: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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PRC major AA manufactures

Company Name Capacity in PRC

(KTp.a.)

Jiangsu Jurong 江苏裕廊江苏裕廊江苏裕廊江苏裕廊((((昇立化工昇立化工昇立化工昇立化工)))) 205

Formosa(台塑集团) 160

Yangzi-BASF(扬子石化-巴斯夫) 160

Shanghai Huayi(上海华谊) 200

Shenyang Chemical(沈阳石蜡化工) 80

Lanzhou Chemical(兰州化工) 80

Beijing Dongfang(北京东方) 80

Zhejiang Weixing (浙江卫星) 40

Shandong Zhenghe(正和石化) 60

Others 73

Total 1,138

Source: 2010 AA Industry Summary,

Author: Zheng Chengwang

Page 13: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Major Manufactures of Glyphosate in PRC

Company Current

Capacity(Tonnes)

Expanding

Capacity(Tonnes)

Total

Capacity(Tonnes)

Zhejiang Xinan 30,000 50,000 80,0000

Nantong Jiangshan 27,000 25,000 52,000

Zhejiang Jiema 15,000 30,000 45,000

Jiangsu Jurong 40,000 (PMIDA) 40,000 (PMIDA)

Anhui Huaxing 15,000 20,000 35,000

Nanjing Red Sun 20,000 20,000

Jiangsu Yinyan 15,000 15,000

Zhejiang Jinfanda 12,000 12,000

Source: 《草甘膦市场调研报告》

Page 14: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section Three

Industry Outlook

Page 15: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Industry Outlook

► Our wide-application AA & AE products tapping into the strong

recovery of the PRC domestic market

► Demand for AA & AE in the PRC expected to grow at CAGR of

15-20% in next few years

► High entry barrier for new player

Page 16: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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AA & AE- Strong demand from Downstream Industries in PRC

Super Absorbent

Polymers (SAP)

As the improvement of living standard,

SAP consumption expected to grow at 20% in next few years

Coatings, paints

Adhesives, Sealants

Water Treatment

Booming property and automobile markets bring the increase in coatings and paints products, expected growth rate at 15%

Estimated growth at 5%

New water treatment technology increase the demand for AA & AE

Source : various media reports

Page 17: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section Four

Financial Performance

Page 18: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Financial Highlight

RMB ’ million Full Year Ended

31 Dec 10 31 Dec 09 Change

Group Revenue 3,363.4 1,819.5 85%

Gross Profit 982.2 151.8 547%

Gross Profit Margin 29% 8% +11 pts

Profit Before Tax 736.0 10.9 6640%

Net Profit Attr to the Company 650.1 4.1 NM

EPS(RMB cents/SGD Cents)

119.0/23.3

0.7/0.1

NM

NAV per share (RMB cents/SGD Cents)

250.4/49.1

130.6/25.6

92%

In FY2010, the Group’s subsidiary received tax incentive amounted to RMB112.1 million

Page 19: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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RevenuesRMB’mln

► Sales growth from FY05 to FY08 backed by increasing capacities

► Due to the global financial crisis, the revenue decreased significantly in FY2009

► In FY2010, revenue increased due to higher ASP and higher sales volume in AA & AE resulted from strong demand in PRC and overseas markets

Page 20: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Geographical Sales

Page 21: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Profitability

Gross and Net ProfitsRMB’000

Page 22: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Margin Analysis

Page 23: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Sales Volume

▶ AA & AE sales volume increased by CAGR of 39.5% for FY05 to FY10

▶ Sales volume for FY10 increased by30.9% due to strong demand from downstream

industries

Tonnes

AA & AE Sales Volume

Page 24: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Sales Volume

▶ PMIDA production ceased since Q2 2010 due to weak demand from export market

7,4858,200

19,641

17,24216,095

2,283

0

5,000

10,000

15,000

20,000

25,000

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

Tonnes

PMIDA Sales Volume

Page 25: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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AA & AE Average Selling Price

AA & AE ASP vs Raw material- PropyleneRMB/ tonne

▶ AA conversion ratio from propylene is 1:0.76

▶ The average price is based on simple average price

Page 26: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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AA Price TrendRMB per tonne

21,500

AA’s raw material- Propylene Price Trend

Strong Demand Led to a Rising Selling Price

11,350

Source: www.16ds.com

Page 27: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Utilisation Rate

AA and AE Capacity Utilisation

▶ AA and AE production are convertible, we have flexibility to adjust AA or AE

production to better facilitate the market requirement

▶ In Q3 & Q4 10, AA plant partially shut down for repair, maintenance or change

of catalyst

%

Page 28: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Balance Sheet Highlight

RMB’ mln FY 2010 FY2009 FY2008

Current Assets 1,604.6 957.2 608.8

Current Liabilities 1,569.6 891.1 574.1

Non-current Assets 1,747.2 677.1 739.1

Non-current Liabilities 292.5 0 0

Shareholders’ Equity 1,368.4 743.2 773.8

Bank borrowings, net of deposits pledged

604.4 267.6 310.8

Cash and Bank Bal ( after net of deposits pledged)

157.9 81.2 128.7

D/E ratio 0.44 0.36 0.40

Page 29: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section Five

Ongoing Projects

Page 30: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Ongoing Projects for Sustainable Growth

► Produce AA’s raw material- Propylene and other petroleum products

► Synergy in cost saving, production efficiency and sources sharing

► New streams to Group’s revenue and profit through sales of petroleum

related products

► Commence production in Q2 2011

1,000,000-tonne Cracking Plant

Page 31: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Ongoing Projects for Sustainable Growth

► Tapping into robust demand for AA&AE products

► Phase I of 160,000-tonne to commence production by end of 2011

► Phase II of another 160-tonne to be completed by 1H2012

► With totaling 525,000-tonne AA capacity, Sunvic to be the LARGEST

manufactures in the PRC or

Top 5 in the world

► Expect to bring significant

contributions

320,000-tonne new AA Plants in Taixing

Page 32: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Ongoing Projects for Sustainable Growth

► Glyphosate is weeds killer which is effective in plantation of transgenic

crops

► Technology and network advantage in producing and marketing

Glyphosate

► Built up sales offices in South America, Brazil and Argentina

► Expect Glyphosate production licence to be granted in 2011

► Well-positioned to capitalise on opportunities when this segment

recovers

PMIDA Downstream Product-Glyphosate

Page 33: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Section Six

Investment Merits

Page 34: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Investment Merits

Page 35: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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Share Performance

Earnings Per Share: RMB 1.19 or SGD0.2353Closing Price (21/04/2011): SGD0.765, 3X PEDividend for FY2010: SGD 2 cents (1 cent ordinary + 1 cent special)

Page 36: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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“We are optimistic about the outlook of the AA & AE industry in the PRC. We are well-positioned to capture the opportunity and stay competitive through our economies of scale and upstream integrated productions.

“ With our cracking plant and new AA plants coming on board in 2011 and 2012 respectively, we will be able to pursue a long-term sustainable growth and create more values for our shareholders.”

Sun Liping Executive Chairman & CEO

Page 37: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

Thank You

External Auditor: KPMGInternal Auditor: Ernst & Young

For more information, pls contact:

Lim Jin Sin, Financial Controller, [email protected] Liu, IR Manager, [email protected]

Page 38: SunVic - Corporate Presentation-Apr 2011sunvic.listedcompany.com/newsroom/20110426_171530... · Asia Market More than 80% of ... Global Top 10 Manufacturers Company Name Country Global

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