2004 Interim Results

Corporate Presentation

Highlights

- 3 -

Summary of Interim Results

2003 2004 Change(%)

Turnover

Gross Profit

EBITDA

Net Profit

Basic EPS (US cents) Per Share

Interim Dividend (US cent) Per Share

94.8

24.0

26.7

9.9

0.94

0.321

109.4

37.4

31.8

15.7

1.04

0.506

+15.5%

+56.0%

+19.2%

+57.9%

+10.6%

+57.6%

Six months ended 30 June, USD million

- 4 -

Continuous Improvementin Profitability

0

5

10

15

20

25

30

35

40

2003 1H 2003 2H 2004 1H

Gross Profit

Net Profit

%

24.0M

12.2 M15.7 M

25.3%

9.9M

10.5%

30.7M

28.2%

11.2%

37.4M

34.2%

14.3%

- 5 -

Strong Balance Sheet

Cash 35.4 39.6

Short-term Debt 31.5 37.2

Long-term Debt 24.3 19.5

Total Debt 55.8 56.7

Shareholders’ Equity 225.1 232.4

As of31 Dec 2003(USD million)

As of30 Jun 2004(USD million)

- 6 -

31 Dec 2003 30 June 2004

Current Ratio (Times)

Net Gearing Ratio* (%)

ROE Ratio (%)

2.09

9.0%

4.7%(30 June)

2.12

7.4%

6.7%

Key Financial Ratio

* net debt / equity

Business

Review

- 8 -

Market Analysis

Turnover by Geographical Location

ASEAN* & other regions

7.8%

Vietnam56.0%

PRC10.6%

Japan23.8%

Taiwan 3.5%

Vietnam57.6%

Japan24.4%

PRC9.3%

20032004

Six Months Ended 30 June

ASEAN* and other regions

5.2%

* Other than Vietnam

Taiwan1.8%

- 9 -

Major Market Analysis

Vietnam

2004 1H economic growth at 7.1%

Operations unaffected by bird flu outbreak due to implementation of precautionary measures

Higher sales due to effective nationwide promotional activities and deeper market penetration to cover more areas

Double digit growth in all major products including MSG, lysine and starch products

GA sales lower due to customers’ switch to buying MSG for direct processing

12.0% to US$61.1 million

- 10 -

Major Market Analysis

Japan

Main boost came from growing lysine sales at higher prices

MSG sales temporarily down due to stock adjustment of a major customer; expected to pick up again in 2nd half

12.9% to US$26.1 million

ASEAN

Contribution rising rapidly due to phenomenal sales growth of 52% and 138% for MSG and starch products respectively

Identified by the Group as a major growth market:- comprised of some of Asia’s fastest growing economies with total

population of over 500 million - free trade agreement in place with Vietnam

59.9% to US$4.0 million

- 11 -

Major Market Analysis

PRC

MSG sales 19.4% higher as people’s dining expenditure grew

Sales of starch products rocketed by over 15 times due to increased orders from large industrial customers as well as new customer

Price of corn (main ingredient of GA) rose due to higher international grain prices which resulted in higher production cost

32.1% to US$11.6 million

- 12 -

Major Market Analysis

PRC (con’t)

Acquisition of Shanghai Vedan Foods:Multiple benefits: significant boost in MSG production capacity in

China. establishment of flagship head quarter in most

efficient manner. ready infrastructure and facilities to allow speedy

set up of new production lines. additional brand value from “Hoping” ( 皇品 ), a

leading MSG brand in Greater Shanghai area.

- 13 -

Product Analysis

MSG66.2%

Lysine17.2%

G.A.4.1%

Cassava starch based products

7.8%

Others4.7%

MSG68.5%

Lysine12.4%

G.A.8.1%

Cassava starch based

products5.6%

Others5.4%

Turnover by Products

2003 2004Six Months ended 30 June

- 14 -

Major Product Analysis

MSG

Stable pricing environment on the back of solid demand

Significant sales increase in several major markets including Vietnam, China, other ASEAN countries and Europe. ASEAN and Europe recorded an increase of 52% and 40.6% respectively

Lysine

Continual strong demand despite bird flu resulting in higher prices

Orders up in Vietnam as well as other marketsStarch

Sales of modified starch rose remarkably by 108%

Ability to customize diversified product types render increased orders from existing customers

Secured news customers from China, Europe and Australia

11.6% to US$72.5 million

60.4% to US$18.8 million

63.2% to US$8.6 million

- 15 -

Summary of Performance

Achieved great leap in turnover due to higher sales in MSG, lysine and starch based products

Reaped significant cost saving benefits from switch to natural gas as fuel at Vietnam plant

Higher efficiencies also contributed to higher profit margins

Penetrated new markets including Europe, Australia, Russia and South Africa

Important progress made in PRC market expansion

Stronger financial position : higher liquidity and lower net gearing ratio

Prospects For 2H 2004

- 17 -

Favorable MarketEnvironment in Asia

ASEAN Free Trade Area (AFTA) promotes trade flow within the region

Low per capita MSG consumption in the PRC and ASEAN countries presents huge potential

High Economic Growth Forecasts for 2004

Vietnam 7.5%

Strong Demand for Vedan’s Products

Asia 6.1% PRC 7.0%

Market outlook in Asia expected to remain positive:

- 18 -

Existing Capacity(Tons)

Capacity AfterExpansion (Tons)

MSG 148,000 180,000

Starch

Modified Starch 40,000 60,000

Native Starch 216,000 324,000

Phased expansion in various fast growth products:

Boost Sales :Capacity Expansion

- 19 -

Lower Costs: Enhance Cost Structure

Energy Source

Full switch to natural gas implemented in Vietnam: significant cost saving of at least US$4 million per year

Materials

Cassava

Set up 3 more starch raw material processing plants in central part of Vietnam and also near border area to Cambodia

Molasses

Currently, mostly procured through third party trading agents, in the future, will purchase directly from large suppliers

- 20 -

Improve Margins:New Product Launch

Wide applications for food, cosmetic, agriculture,

pharmaceutical, environmental and water treatment

Started testing market response since 2003 through trial production

Application for patent rights in process

Commercial production to start by end of 2004 or early 2005Versatile flavor enhancers made from MSG and various natural seasonings

Product launch expected by end of 2004

Successfully innovated 4-5 different products

Enjoys strong demand due to diverse tastes of Asian dishes

PGA

High Value-addedSeasonings

- 21 -

Our PRC Expansion Strategy

• Enhance operation of Shanghai Vedan Enterprise - Consolidation of brand and marketing resources

- Integration of sales network with Xiamen Vedan

- Recruitment of local talents to support expansion

• Merger and acquisition strategy remains: identify

suitable targets with considerable brand awareness

and established sales network

• Strategic alliance with local GA suppliers to secure raw

material supplies

• Localization of business: invest in local talents

• Strengthen sales and marketing network

- 22 -

“To be Asia’s leading manufacturer of

fermentation-based amino acids,

food additive products and

cassava starch based products”

Mission

- 23 -

Q & A Session