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The East Asiatic Company Ltd. A/S

EAC Nutrition enters India

27 November 2002

©EAC2002-11-27

EAC at a Glance

Focus on Asia and South America– Asia accounts for 62%, South America for 27% of turnover in 2001

Focus on 4 market-leading consumer and service businesses– Nutrition and Foods, Industrial Ingredients and Moving & Relocation Services

Strong growth in the 4 strategic businesses– Since 1998, turnover increased

by 62%, and operational profits more than tripled

– 4 businesses account for 92% of Group’s operating result in 2001 vs. 60% in 2000

0

100

200

300

400

500

600

1998 1999 2000 2001Operating profit in Strategicbusinesses

DK

Km

Operating profit in strategic businesses

©EAC2002-11-27

EAC’s Restructuring

Divestitures: Businesses 4 Entities 28•Nutrition

•Foods•Chemicals

•Santa Fe•Timber

•Wool

•Trading •Technical •Fibertex

•DFD •Shipping•Consumer Products

•Graphics

•Logistics

Divestitures: Businesses 5 Entities 8

•Trading 2002

2000

1998

Selectively build 4 core businesses

Divestitures: Businesses 9 Entities 43•Nutrition

•Foods (reduced)

•Chemicals

•Santa Fe•Consumer Products (reduced)

•Trading •Technical

•Fibertex

•DFD

•Various Investments

•Timber•Wool

• Nutrition• Industrial

Ingredients

• Foods• Santa Fe/Global Silverhawk

Use proceeds and free cash to pay

down debt

Exit bulk of non-core businessesin the short run

Use cash to acquire and strengthen2003

©EAC2002-11-27

EAC’s Strategy : 2002

Growth in the strategic businesses– Product extensions, innovation, geographic expansion and acquisitions, taking

advantage of the Group’s strong capital structure

Continue to invest in and develop our own brand– DKK 343m in advertising and promotion spendings in 2001– DKK 312m invested in intangible and tangible fixed assets in 2001

Continue restructuring and divestment of remaining non-core activities

Create value for stakeholders– Credibility as a company creating shareholder value through long-term rises in share

price– Share buy-back programmes of DKK 100m both in 2001 and 2002

©EAC2002-11-27

EAC’s Strategy : 2002/03

Further focus

To acquire and to expand those businesses with the most attractive potential – notably Nutrition in Asia.

©EAC2002-11-27

EAC Nutrition

©EAC2002-11-27

EAC NUTRITION - PROFILE

EAC Nutrition develops, produces and markets a wide range of infant and child nutrition products. EAC Nutrition enjoys a market-leading position in its established markets in China, Malaysia, Singapore and Thailand.

©EAC2002-11-27

EAC NUTRITION – ORIGINS

Dumex trademark “Danish United Medical Exports” -was first introduced by The East Asiatic Company Ltd (EAC) in 1946Used initially for pharmaceutical productsDumex baby food products launched in 1953 and quickly achieved high popularityDumex has a long history in child nutrition:– Malaysia since 1958– Thailand since 1959– Singapore since 1960– China and Vietnam since 1992– Philippines since 2000

©EAC2002-11-27

EAC NUTRITION – MARKET PRESENCE

CHINA

Shanghai

Malaysia

Singapore

China

Thailand

Saudi Arabia

Vietnam Philippines

ISO 9002/HACCP

certified plants in:

-Shanghai

-Kuala Lumpur

-Bangkok

EAC Nutrition holds a strong no. 1 or 2 position in main markets

©EAC2002-11-27

EAC Nutrition

Small Acquisitions

– A Significant Strategic Move

©EAC2002-11-27

EAC NUTRITION – MARKET PRESENCE

EAC Nutrition holds a strong no. 1 or 2 position in main markets

CHINA

Shanghai

Malaysia

Singapore

China

Thailand

Saudi Arabia

Vietnam Philippines

ISO 9002/HACCP

certified plants in:

-Shanghai

-Kuala Lumpur

-Bangkok

Pakistan

Bangladesh

IndiaPopulation

1 bn

India: Approx. 22m births p.a.

Sri Lanka

©EAC2002-11-27

India Key Statistics

Country population 1,027m India

Bombay

Bangalore

Chennai

New Delhi

Calcutta

.

..

..

.Hyderabad

GDP growth rates 5.7% in 2001 & 5.5% in 2002F

GDP per capita is US$ 460

Birth rate: over 1.9%

23 major metros more than 1m people. 277 minor metros between 0.5 – 1m people.

Bombay 17.0mCalcutta 13.2mNew Delhi12.4mHyderabad 7.3mChennai 6.9mBangalore 5.8m

Source: The World Bank

©EAC2002-11-27

India is Worlds largest milk producer

2 broad market segmentations

Fresh milk & dairy

Dry Milk based nutrition:

Dry Milk based nutrition market 120,000 tonnes / DKK 3.8bn

Split into 3 Sub-segments

Infant & Child Nutrition 45,000 tonnes / DKK 1.2bn

Milk powder

Growth rates of 5% p.a.

Weaning baby Food 20,000 tonnes / DKK 0.8bn

Cereal & Milk based


Milk Food Nutrition 55,000 tonnes / DKK 1.8bn

Milk Food powderbeverages


©EAC2002-11-27

Market segmentation for Dry Milk based Nutrition in India

1200

800

1560

240

Infant & ChildNutrition

Weaning BabyFood

Ethical ProteinSupplements

Milk BasedNutritionBeverage

1800

Market sizes in DKK million

Protinex

©EAC2002-11-27

Protinex (1)

“Pre-digested” protein supplement

Contains Vitamins, Mineral and carbohydrate

One pack size/one flavour

Can be purchased OTC from chemist only distribution

Prescribed by doctors for :pregnant women, recovery from surgery, children for healthy growth, malnutrition , burns

©EAC2002-11-27

Protinex (2)

2001 sales of DKK 36m

Compound annual growth rate of 12.5%

Over 20% operating margins

Market leader with 28% share of protein supplements market

Protein supplements segment estimated at DKK 130m

Protinex distributed in more than 70 cities with a catchment population above 100m

©EAC2002-11-27

Protinex Brand Awareness - Doctors

Highest top of mind awareness forHighest top of mind awareness for ProtinexProtinex

Brand Ist mention

Protinex

49%

Others

26%

B- Protein

19%

Threptin

6%

Source: AC Nielsen

©EAC2002-11-27

Protinex Brand Awareness - Doctors

Brand of Ethical Protein Supplement Brand of Ethical Protein Supplement recommendedrecommended

Source: AC Nielsen

32

23

95 4

1 1

65

32 33

22

58 8

Proti

nex

B-Prote

inTh

reptin

Protinu

lesNu

treva

GRD

Alprov

it

Most Often

TotalMentions

©EAC2002-11-27

Terms of the transaction

EAC has signed a Memorandum of Understanding to acquire the Protinex brand from Pfizer India and theDumex trademark in India and other subcontinent countries from Pfizer Products Inc., subsidiaries of world’s largest pharmaceutical company Pfizer Corp.

Total consideration of DKK 105m

DKK 52.5m to Pfizer Corp and Pfizer Products

DKK 52.5m to Pfizer India

Transaction is expected to be effective by end 2002

Final contracts scheduled for signing 29th November

©EAC2002-11-27

Transition Arrangements

Pfizer will contract manufacture Protinex for a minimum period of 3 years

EAC will take over responsibility for medical detailing, marketing and distribution on a region-by-region basis:

2003: territories representing circa 20% of sales

2004: circa 45%

2005: circa 65%

2006: 100%

EAC books sales and margins in territories it is responsible for.

©EAC2002-11-27

An Advantageous Starting Point

India with a population of over 1 billion people is a high potential market for EAC Nutrition.

Acquisition of Protinex reduces the risk and learning curve in entering the Indian market

Protinex is market leader in the ethical protein segment

Acquisition leverages EAC’s experience in building businesses in emerging markets

Dumex trademark in India offers brand awareness with medical profession and trade

©EAC2002-11-27

The Strategic Rationale for Protinex

Low Risk Entry Platform (1)

Strong future entry platform for Dumex branded nutrition products

Reduced risk through transitional arrangement with Pfizer ensuring smooth handover and knowledge transfer

Transitional arrangement allows EAC time to build organisation and learning in India

Strong distribution platform in chemist outlets

©EAC2002-11-27

The Strategic Rationale for Protinex

Low Risk Entry Platform (2)

Synergy in medical detailing: fit with EAC Nutrition products

Research confirms Protinex as brand leader in its category in terms of awareness and recommendation with medical profession

Potential for new product range extensions under Protinex brand to expand to larger nutritional supplement market worth DKK 1.6 bn

©EAC2002-11-27

The Strategic Rationale for the Dumex Trademark Acquisition

Dumex in India is a long established trademark used on a number of OTC products

EAC founded Dumex in India in 1946. The first Dumex production facility worldwide was established in Bombay in 1954. EAC sold the Dumextrademark to Pfizer in 1958

Pfizer India has marketed a number of medicines under the Pfizer-Dumex name. A strong heritage in India for Dumex still exists with the medical profession

The repurchase of Dumex by EAC provides EAC Nutrition with a unique opportunity to build on Dumex brand successes achieved in Asia and establish Dumex in the second largest population market in the world.

DUMEX

Dumex trademark as it appeared in the 1950’s is still being prominently used on the Protinex tin

©EAC2002-11-27

Summary - Protinex

Platform for EAC Nutrition products

Low risk entry mode

Synergies in distribution, medical detailing when EAC Nutrition enters the infant and child nutrition market in India

Opportunities to develop Protinex brand through product improvement and extensions

Attractive margins

©EAC2002-11-27

Summary – Dumex Trademark

Credibility with Indian medical professionals

India and other subcontinent countries

Consistent branding across Asia

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