SP Chemicals Ltd.

CORPORATE PRESENTATION August 2007 By Mr Chan Hian Siang, CEO

Corporate Profile

1 Corporate Profile

SP Chemicals is a Singapore-incorporated chemical raw materials manufacturer with operations based solely in the PRC, catering to the growing in the PRC

Listed on Main Board of the Singapore Exchange on 6 August 2003

Stock Performance

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Our Business

A leading player in the growing PRC chemical industry

Backed by an 11-year track record in the PRC, SP Chemicals manufactures and sells chlor-alkali products and related downstream products.

Products are used in a wide spectrum of industries including , textiles, paper, consumer goods, polymers, rubber, dye, pharmaceuticals, metallurgy and defence.

Customer base in the PRC spans the Jiangsu, Zhejiang and Shandong provinces, as well as Shanghai. In 2004, we started exporting products to the US, Japan, Korea and Taiwan.

Flagship Taixing production facilities are certified by Lloyd’s Register Quality Assurance to ISO 9001:2000 and ISO 14001:1996.

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2 Leading Player in the Growing PRC Chemical Industry

SP Chemicals: Taixing • 4th largest ion-membrane chlor-alkali producer in the PRC Park Shandong • 5th largest aniline producer in the PRC Jiangsu • Only chlor-alkali producer in the Taixing Park Zhejiang

SP Chemicals Taixing Plant Land Area: 1,278,893 sq m

Strategically located in China Fine Chemical Industry Taixing Park

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SP Chemicals’ Competitive Strengths

* A leading chlor-alkali producer

Huge potential market

Strong capacity growth and economies of scale A leading player in the Strategically located growing PRC chemical Strong government support industry

Experienced management

Strong earnings growth

Note: * 4th largest ion-membrane chlor-alkali producer and 5th largest aniline producer in the PRC as at 31 March 2007 6 6

3 SP Chemicals Taixing Plant

Caustic Soda Storage Tanks Salt Yard Bi-polar Electrolysers Aniline Facilities

Coal Jetty Co-generation Plant Conveyor Belt Dry Coal Warehouse

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SP Chemicals Taixing Plant

New Organic Wastewater Co-generation Plant Treatment Facilities Ash Warehouse Brine Processing Facility Brine Storage Tank

Water Purification FacilitiesVCM Facilities Laboratory

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4 SP Chemicals Taixing Plant (night view)

our vision To be a dominant market player and cost leader in the production and sale of chemical raw materials in the PRC

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SP Chemicals Taixing Plant (night view)

Today, SP Chemicals has a strong team of over 1,000 employees who are geared towards a common goal – to excel in delivering quality products, at competitive prices, through the most efficient process.

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5 What’s Next …

Latest Corporate Initiative

PROJECTS IN VIETNAM

 Hoa Tam Park, Dong Hoa Location district, Phu Yen province, Vietnam

Obtained IPA for 2 investment proposals:  To build an integrated petrochemical industrial Investment park of 1,300 hectares Objective  To build a naphtha cracking plant in the park, with production capacity of 800,000 tpa of per annum Phu Yen  To supply raw materials to our own facilities in Rationale the PRC, and Hoa Tam Petrochemical Park, and to a lesser extent for export

 Target to be completed within 15 years in 2 development phases  Phase One – To build a naphtha cracking and utility plant; Targeted to be completed in 2014. Schedule Total : US$1.5 billion  Phase Two – To promote the Hoa Tam Petrochem Park and invite investment for upstream and downstream Petrochemical Projects. Targeted to be completed by 2024 12 12

6 Investment Considerations for Vietnam

Middle East

China South China Vietnam Sea

Singapore

Indian Ocean

Import of Naphtha Export of finished goods 13 13

Hoa Tam Petrochemical Park, Phu Yen, Vietnam

Hoa Tam Petrochemical Park is: • 7km to the north from Port of Vung Ro • 10km to the south from Tuy Hoa Airport • Near the National Highway & Railway • Near the Bai-Goc Mountain & Reservoirs Government of Vietnam has designated Airport Hoa Tam to be an oil refinery and petrochemical processing industrial zone Hoa Tam Petrochemicals Park (Area: 13 km sq)

National Highway

Railway Bai-Goc mountain Vung Ro and reserviors 14 14

7 Investment Considerations for Phu Yen Province, Vietnam

Good Network of highways Natural Sheltered Harbour infrastructure and railways

Airport

Electricity

Vung Ro Sea Port is a gulf body Through its network of highways and protected by mountains railways, Phu Yen is linked to Hanoi, Ho Chi Minh City, Danang and other major provinces in Vietnam. Streets Phu Yen is strategically located at the cross roads of Ho Chi Minh City and Danang City – about 450km away Jetty from each city. Up to date communication 15 15

Investment Considerations for Phu Yen Province, Vietnam

Abundant water supply Potential to Build a Strong support from Deep Water Sea Port Province Government

There are three lakes and The deep water sea port wil facilitate one large river in Phu Yen the import of raw materials and Phu Yen Committee export of chemical products of The Party

Phu Yen People’s Committee

Phu Yen Department of Planning & Investment

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8 SP CHEMICALS’ COMMITMENT

Thank You for Your Support SP Chemicals will strive to do our best in all areas, endeavoring to grow the Group to be a truly well-run corporation and a premier, top-tier chemical company.

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9 THANK YOU

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