Corporate Presentation January 2009 1 Agenda Business Updates - PowerPoint PPT Presentation

Corporate Presentation January 2009 1

Agenda  Business Updates  2008 Interim Results & Analysis  Appendix 2

Corporate Information  Global player in lysine business  Pioneer in using corn as raw materials for the production of polyol chemicals  Major vertically-integrated corn-based biochemical and corn-refined products manufacturer in Asia 3

Corn Price Movement in China RMB / mt 1,750 50 1,700 00 1,650 50 1,600 00 1,550 50 1,500 00 1,450 50 1,400 00 1,350 50 1,300 00 1,250 50 Jul-07 Jul-08 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Source: eFeedlink. Based on average price from northeast regions (Jilin, Dalian, Shandong)  4Q 08 – corn price ↓ approx 12%  Abundant supply: 2008 harvest of approx. 156 million mt ( ↑11% yoy )  Continue cost control: purchase corn during harvest season to maintain lowest corn cost 4

Amino Acids – Price Trend R M B / m t 16,000 Lysine 14,000 12,000 10,000 8,000 6,000 Protein Lysine 4,000 2,000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 Source: eFeedlink  4Q 08 – lysine price ↓ approx 10%  Demand remains stable  End users maintain low inventory, impacted by food and economic issues 5

Amino Acids – Detail Breakdowns 1H 2008 Amino Acids Turnover Breakdown Others 3% Lysine 39% Protein Lysine 58% 1H 08 Quantity (mt) YOY Export YOY change volume (mt) change Lysine 60,150 13% 34,900 1% Protein Lysine 159,750 25% 42,800 36% Others 3,400 (39%) 920 49% 6

Lysine Business Overview  Remain one of the global players position; market shares:  Global: ~35%  PRC: ~75%  2009 market environment • Sensitive market price • Sustainable volume • Challenging environment to small players  Cost & production control  Stable income with GP margin of 20+ 7

Corn Based Polyol Chemicals Polyol – a collective name for a group of chemicals Corn Starch Saccharification Glucose ((C 6 H 10 O 5 )n + H 2 O) Hydrogenation Reaction Sorbitol (C 6 H 14 O 6 ) Chemical reaction with catalysts Polyol chemicals mixture Sales & (or product: Resin ): Marketing – Ethylene Glycol (C 2 H 6 O 2 ) anti-freeze, Propylene Glycol (C 3 H 8 O 2 ) plastics, textiles Glycerin (C 3 H 8 O 3 ) industries, etc. Butanediol (C 4 H 10 O 2 ) Distillations / Separations Products: EG / PPG 8

Polyol – Sales & Marketing Applications Adhesive Raw Materials Intermediate Materials Plastics Coatings Footwear Films EG Glasses Polymers PG Fiberglass Polymeric Coolant Glycerin polyol Lubrication Solvent Resins Detersive GBT’s products Fibre Polyester Textile 9

Polyol – Business Overview  Production facilities : • Pilot Plant (for R&D purposes): 10,000 mtpa • Commercial Plant : 200,000 mtpa  Readily markets: • Chemicals demand/consumption in PRC: 5 – 6 million mt • Over 70% demand relies on imports • Petroleum-based chemicals vs green products  Breakeven: Corn Price RMB1,400/mt VS Oil Price US$40/barrel  Production schedule and target volume / margin alter according to market sentiment  Future expansion plan’s schedule altered in view of market sentiment 10

Future Development  New production base: Xinglongshan  Vertically integrated facilities: •Corn refinery: 1.7 million mtpa •Polyol chemicals: 1.0 million mtpa Phase 1: 1 million mtpa Phase 3: 700,000 mtpa Corn Refinery Corn Refinery Phase 2: 500,000 mtpa Phase 4: 500,000 mtpa Polyol Chemicals Polyol Chemicals 1H 2H 1H 2H 1H 2H 1H 2H 2008 2009 2011 2010 Phase 1: 1 million mtpa Phase 2: 500,000 mtpa Corn Refinery Polyol Chemicals 11

Capex 2008 - 2009 1600 1400 Corn Refinery Corn Refinery & supporting & supporting facilities 1200 facilities Maintenance 1000 HK$ (million) 800 Polyol chemical facilities 600 400 200 0 2008* 2009* 2008 2009 * Original plan in 1Q 08 Latest schedule 12

Designed Capacity Designed Capacity (mtpa) FY2008 FY2009 FY2010 Upstream Corn Refinery 2,400,000 3,400,000 3,400,000 Downstream • Amino Acids 450,000 450,000 450,000 • Modified Starch 80,000 80,000 80,000 • Polyol Chemicals 210,000 210,000 210,000 • Corn Sweeteners Global Sweeteners Holdings Limited 1,220,000 1,510,000 1,510,000 13

2008 Interim Results & Analysis

Turnover Breakdown 1H 2 2008 T Turnover B Breakdown Polyol Turnover 1H 2008 1H 2007 Change Chemicals Corn Refinery 13% (HK$‘000) 32% Upstream Corn Sweeteners • Corn Refinery 1,511,139 753,544 101% 13% Downstream Modified Starch Amino Acids 2% • Amino Acids 1,932,676 1,326,140 46% 40% • Polyol Chemicals 697,252 4,205 N/A 1H 2 2007 T Turnover B Breakdown Polyol Chemicals Corn Sweeteners 0% • Modified Starch 91,623 81,016 13% 21% Corn Refinery • Corn Sweeteners 619,263 569,555 9% 28% Modified Starch 3% Amino Acids 48% 15

Gross Profit Breakdown 1H 1H 2008 2008 Gros oss Prof ofit Breakdow kdown Corn Refinery Gross Profit 1H 2008 1H 2007 Change 23% (HK$‘000) Polyol Chemicals Upstream 21% • Corn Refinery 288,242 102,798 180% Corn Sweeteners 13% Amino Acids Downstream 42% Modified Starch • Amino Acids 535,905 342,976 56% 1% • Polyol Chemicals 269,034 (10,265) N/A 1H 2 2007 G Gross P Profit B Breakdown Polyol • Modified Starch 13,597 12,313 10% Corn Refinery Chemicals 17% 0% • Corn Sweeteners 158,855 153,215 4% Corn Sweeteners Amino Acids 25% 56% Modified Starch 16 2%

Sales Analysis Quantity (mt) Gross Profit Margin (%) 1H 08 1H 07 % Change 1H 08 1H 07 % Change Upstream Corn Refinery 650,160 425,540 53% 19% 14% 5% Downstream Amino Acids 223,330 186,350 20% 28% 26% 2% Polyol Chemicals 83,723 985 N/A 39% N/A N/A Modified Starch 30,090 33,890 (11%) 15% 15% - Corn Sweeteners 276,723 309,378 (11%) 26% 27% (1%) 17

Export Breakdown 1H 1H E Expor xport T Tur urnove nover B By R y Regi gions ons Turnover Volume Australia Africa US$’000 mt 3% 0% Amino Acids 98,373 70% 78,600 34% South & North America Modified Starch 4,769 3% 12,660 6% 17% Asia 38,249 27% 137,000 60% Corn Refined Products 44% TOTAL 141,391 228,260 Europe 36% Export to Total Turnover : 23% 18

Operating Cost Structure 1H 08 1H 07 56% Raw materials (Corn + Sweeteners) 56% Other chemicals 11% 5% 16% Utilities 12% Labour 1% 1% Depreciation 5% 7% Packaging 3% 2% Production Overhead 1% 2% Selling and Distribution Expenses 7% 6% Administrative Expenses 3% 4% Other Operating Expenses 1% 1% 19

Operation Results 2008 1H 2007 1H Change HK$ million 2,734 78% 4,852 Turnover 1,266 601 111% Gross Profit 977 498 96% • Corn based biochemical products 288 103 180% • Corn refined products 1,111 549 102% EBITDA 883 381 132% Operating Profit 602 230 162% Net Profit to GBT’s shareholders Basic EPS HK 26.0 cents HK 9.9 cents HK 1.5 cents HK 1.0 cent Interim Dividend Per Share 20

Operational Indicators 30 Jun 08 30 Jun 07 Change 22% 4% Gross Profit Margin (%) 26% • Corn based biochemical products 25% 4% 29% • Corn refined products 19% 14% 5% Operating Margin (%) 18% 14% 4% Net Margin (%) 13% 8% 5% ROE 8% 4% 4% 21

Balance Sheet HK$ million 30 Jun 2008 31 Dec 2007 Change (unaudited) (audited) Non-current Assets 8,732 12% 9,767 Current Assets 5,557 4,666 19% Current Liabilities 3,264 56% 5,093 Cash and Bank Balances 2,022 21% 2,439 Shareholder’s Equity 7,311 6,463 13% Interest-bearing Loans 5,583 4,803 16% 22

Key Financial Ratios 30 Jun 2008 31 Dec 2007 Current Ratio 1.1 1.4 Quick Ratio 0.8 1.1 Gearings: - Total Debt to Total Assets 49% 48% - Net Debt to Equity 43% 43% Inventories Turnover Days 73 87 Debtors’ Turnover Days 52 58 23

Appendix

Milestone 2000 2001 2002 2004 2005 1994 2008 Protein lysine Lysine plant Listed on HFCS JV & polyol pilot Sorbitol GBT was Scales up began Main Board plant began plants began plant began founded polyol project operation of HKEx operation operations operations 1994 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Corn Feed Manufacturer Corn Refinery Corn-based Biochemical Chemicals 1999 1996 2006 2007 1998 2003 Modified starch Spun-off Global Glutamic acid & & corn Established crystallised Sweeteners Corn refinery R&D on Polyol sweeteners plants R&D Centre glucose plants Polyol plant began began began operation began operations began operation 25

Vertical Integration and Product Diversification Raw Material Corn Kernel Corn Refinery Upstream Process Corn Oil Fibre Gluten Corn Starch Biochemical / Chemical processes Global Sweeteners Downstream Process Holdings Limited Amino Acids Polyol Chemicals Modified Starch Corn Sweeteners 26