SP Chemicals Ltd

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 chemical industry in the PRC Listed on Main Board of the Singapore Exchange on 6 August 2003 Stock Performance 3 3 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 petrochemicals, textiles, paper, consumer goods, plastic 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. 4 4 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 5 5 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 7 7 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 8 8 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 9 9 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. 10 10 5 What’s Next … Latest Corporate Initiative PROJECTS IN VIETNAM Hoa Tam Petrochemical 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 ethylene 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 16 16 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. 18 18 9 THANK YOU 10.

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