Investor Briefing

1
Investor Briefing
by Mr Peter Tay, President CEO

• Introduction to Singapore Food Industries
• Internationalisation Strategy
• FY2005 Financial Highlights
• FY2006 Outlook
• Track Record Since 1999

May 06
2
History

• Established in 1973
• Singapores foremost value-creating integrated
  food company with 8 FB market share
• Listed on Singapore Exchange Mainboard
  (SingFood) since Nov 22, 1999
• We aim to maintain our position as the foremost
  value-creating food processing distribution
  company with significant operations in Europe,
  China South-East Asia

The only fully integrated food logistics/catering
supplier in Singapore
3
Food Distribution

• We manage the entire food logistics supply chain
• Procurement - International network in gt 20
  countries
• Warehousing - Largest operating cold storage
  warehouse gt 9000 MT
• Distribution - Largest fleet of refrigerated
  delivery vehicles (110)
• Focus on higher margin products including
  fresh/chilled meats and fresh fruits
• We serve a complete spectrum of customers-ship
  supplies, wholesalers, food service, hotels,
  supermarkets, institutions, wet markets, and
  re-export

4
Food Distribution

• In Singapore,
• Large scale institutional catering for armed
  forces and hospitals
• Develop and produce shelf-stable packaged
  convenience meals and sauces in retort pouch for
  armed forces and export (incl. Muslim markets
  such as the Middle East)

5
Food Distribution

• Overseas,
• S Daniels plc (100)
• International Cuisine Ltd (100)
• Cresset Ltd (100)
• Production and marketing of chilled convenience
  foods in UK (incl. ready meals, soups, prepared
  fruits, juices and smoothies) and chilled and
  ambient ready meals in Ireland
• Shanghai ST Food Industries (96)
• Production and distribution of value-added frozen
  chicken and rice-based ready meals in Shanghai,
  China
• Urangan Schulz Fisheries (50)
• Seafood processing and trawling in Queensland,
  Australia for export

6
Hog Auction Abattoir
Food Distribution

• Sole abattoir hog auction operator in Singapore
  (with pigs supplied only from Salims Bulan farm)
• Backed by cold-chain distribution system for
  processing, storage transportation of chilled
  pork

7
Internationalisation Strategy

• Mastering the Competitive Landscape

8
SFI Internationalisation Strategy
Focus on meeting changing food needs driven by
changes in lifestyle and demographic patterns

• China
• Food Manufacturing
• Food Distribution Preparation
• Meat Processing

• UK/Europe
• Chilled Convenience Food

• Daniels Chilled Foods (100), UK
• International Cuisine Ltd (100), UK
• Cresset Ltd (100), Ireland

• South East Asia Australia
• Food Distribution and Preparation
• Meat Processing
• Seafood

9
Chilled food market continues to show strong
growth
1,691m
1,527m
1,500m
1,360m
1,324m
Double-digit growth in categories SFI services
807m
682m
675m
475m
437m
Bacon
Cheese
Fresh Milk
Yellow Fats
Sandwiches
Chilled
Pies/Pasties
Chilled Ready
Meals
Meats
Chilled Cooked
Chilled Desserts
Chilled Juices Fruit
Juice
Source IRI Omniscan Value Sales (m) chg,
September 04
10
Chilled food market continuesto show strong
growth
371m
313m
Double-digit growth in categories SFI services
196m
146m
139m
114m
100m
84m
83m
78m

Sausages
Fresh
Cream
Chilled
Breads
Chilled Pizza
Chilled Salads
Fruit
Fresh Prepared
Fresh Soup
Chilled Dips
And Dressings
Fresh Pasta
Other Chilled
( Geest industry estimates)
Source IRI Omniscan, Value Sales (m) chg,
September 04
11
Key Consumer Drivers in Food
The 3 consumer drivers in food suggest chilled
foods will continue to grow
Efficient nutrition
Health aware More info More evidence
Time factor Portion control Prepared food
Convenience
Health
Convenience Plus
Guilt Free Indulgence Low and light, low/no Taste
compromise
Pleasure
Served by SFIs range of products
The sensory experience More ethnic and
exotic More premium and indulgent
12
Drivers of Chilled Food Volume

• Convenience
• Working women (more women work than men by 2008)
• Single homes (29 of homes 2000 v. 18 in 1971)
• Break down of formal meal occasions
• Decline in cooking skills
• Cash rich / time poor in ABC1
• Health
• 45 of UK population will be obese by 2008
• 27 of Children will be obese by 2008
• Consumers increase knowledge of how food
  consumption relates to health
• Taste
• Consumers searching for the panacea no taste
  compromise
• Other
• Retailer desire for differentiation / increase
  chiller space
• Food service
• Low penetration (max in any sub-sector is 13
  over 6 months)

13
Drivers of Chilled Food Profit

• Retailers need to improve cash margins
• Consumers willing to pay price premium
• Category Management principles improve mix and
  space for products
• Supply base consolidation
• Continuous product innovation

14
Daniels Chilled Foods
15
Daniels Chilled Foods
Non-Core Salads Sandwich Fillings Ingredients
16
Investing for the future

• 13m Capex invested in state-of-the-art
  production facilities in 2004/05 for prepared
  fruits and fresh juice and for expanding soup and
  sauce facility
• 3m in new prepared fruits factory (operational
  Sep 04)
• 7m in new fresh juice and drinks facility
  (operational 1Q2005)
• 3m in expanding soup and sauce capacity
• New facilities have enabled us to secure
  own-label businesses with major retailers and
  food service chains
• Capex will underpin growth in next 2-3 years,
  increasing sales capacity by at least 30m

17
Growth Direction

• Organic
• Focussed on identified core categories
• Brand led- NCG and Johnsons
• Strategic Retail Own Label development
• Manufactured in-house
• Acquisition opportunities incremental to organic
  plan

18
International Cuisine Limited

• and Cresset Limited

19
Share of Grocery Market vs Share of CRM Market
Strategy for Existing Customers
Source ACNielsen Homescan
Source Mintel 2004
Source TNS 2004
3 of the top 8 CRM retailers are ICL customers,
and they under-trade in CRMs compared to their
Share of Grocery Market
20
Strategy for Existing Customers

• What does ICL have to leverage with its existing
  customers
• Industry leading technology - 14 yrs experience
• Shelf-life benefits
• Service levels
• Reduced wastage
• Flexibility
• Breadth of product range
• Quality consistency

TRACK RECORD CUSTOMER RELATIONSHIP
21
Cresset Ltd

• Irish Acquisition (March 2004)
• Established in 1974 and based in Cork, Ireland
• Manufactures ambient and chilled ready meals, and
  ambient soup cups
• Existing factory of 5,000 m2 for ambient meals
• Invested 5m in new 1,700 m2 chilled ready meals
  factory financial support from Irish government
• 120 Employees

22
Cresset Ltd

• Growth Strategy
• The Irish Chilled Ready Meals Market is worth 50
  million and growing (worth 150 million if per
  capita consumption similar to UK market)
• Replicate UK experience in the Irish Market-
  localise products to suit Irish consumer
• Opportunity to develop chilled ready meals
  business in Europe in specialist ethnic cuisines
  such as Indian, Chinese Indonesian
• Build on existing ambient customer base and
  strengthen sales

23
In Summary

• UK/Europe will continue to be an area of
  opportunity for growth in the next 3-5 years
• SFI adds value to UK/Europe operations through
  sharing management processes such as EVA and Six
  Sigma, financial discipline and performance
  driven culture
• SFI can also benefit from UK operations in
  production technology, new product development
  processes and brand management
• Key to successful integration - open and regular
  communications and a no surprise regime

24
FY2005 Financial Highlights

• Mastering the Competitive Landscape

25
Financial Highlights
(FY2005 vs FY2004)

• 
  
• m
  FY2005 FY2004
• (Restated)
• Turnover
  597.1 590.1 1.2
• Gross Margins() 27.0 27.4
  (0.4)
• PBT 50.4 47.7
  5.6
• PATMI 36.1
  35.6 1.3
• Net margins ()
  6.2 6.2 -
• Earnings per share (cents) 7.1
  7.1 0.2
• Economic Value Added 26.3
  27.9 5.9
• EVA Spread () 12.2
  15.2 3.0

26
Financial Highlights (FY2005 vs
FY2004)

• 
  
• 
  FY2005 FY2004
• (Restated)
• ROE () 27.0 29.0 (2.0)
• ROTA ()
  12.0 12.6 0.6
• Interest Cover (times) 16.1
  21.0 (23.3)
• Debt/Equity Ratio
  0.4 0.5
• Net Assets per Share (cents) 27.1
  25.4 6.4
• EBITDA (m)
  73.2 70.5 3.8
• Capex (m)
  14.1 49.2 (71.3)

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Outlook

• Mastering the Competitive Landscape

28
Outlook

• Singapore Operations
• Food Distribution
• Sales to food service, ship supplies, and export
  sector expected to grow but sales to government
  institutions and major supermarkets will remain
  weak
• Operating performance expected to be comparable
  to FY2005

• Food Catering Manufacturing
• Food Catering had weak performance in
  1Q2006. Expects improved performance in 2H2006
• Signed US2.1m contract with ME country to
  supply emergency foods over 2-year period
  starting in 2Q2006. First shipments made in Apr
  2006
• Abattoir Hog Auction
• Overall, expected to be significantly weaker
  in FY2006 as weak pig supply to continue for
  rest of the year

29
Outlook

• Overseas Operations
• Daniels
• Expected to deliver growth in all its core
  product categories
• Growth of New Covent Garden soup to continue.
  Additional soup listings agreed with key customer
  in 2006 winter season
• Additional soup production capacity needed to
  meet expected increase in demand. Capex expected
  in 2H2006. Leveraging on synergies in UK/Europe
  operations with single management team

• Supply of own-label drinks for 2 major retailers
  started end of 1Q2006
• Prepared fruit business expected to continue
  to grow strongly

30
Outlook

• ICL
• ICL had good start in 1Q2006 but own-label market
  is extremely competitive
• Initiatives are being taken to deliver a better
  set of results for FY2006

• Cresset
• Acquisition of second key CRM customer in 4Q2005
  improved performance significantly
• Expected acquisition of third key customer in
  mid-2006 key to turnaround
• Expected to deliver better performance than
  FY2005

31
Outlook

• Australia
• FY2006 performance expected to be weaker than
  FY2005 as one-off gains in FY2005 will not recur

• Shanghai STFI
• Strategy to reduce heavy reliance on
  chicken-based products and develop new market
  channels such as food service chains
• Off-take of frozen ready meals targetted at food
  service outlets continues to be good

• Working to convert more key food service accounts
  to strengthen this business

32
FY2006 Outlook

• The outlook for FY2006 is challenging, but
  remains positive at the operating level

Note This is managements outlook based on
current expectations, projections and assumptions
about the future. This is not a forecast.
33
Final Dividend for FY2005

• Final dividend Proposed
• Gross dividend of 4.0 cents per share (or 3.2
  cents net) subject to approval by shareholders at
  AGM on 19 April 2006 (2004 Gross 4.0 cents per
  share or 3.2 cents net).
• Book Closure on 25th to 26th May 2006 to
  determine entitlements. Dividends payable on 8
  June 2006.
• Total gross dividend of 6.2 cents per share (or
  4.96 cents net), including interim dividend paid
  on 25 January 2006 (2004 Gross 6.0 cents per
  share)
• Dividend pay-out represents 70 of PATMI.
• Section 44 credit of 2.6m available for FY 2006
  interim dividends only (if declared).

Dividend policy is 60-70 of net earnings,
subject to capital/investment requirements
Interim Dividend declared after 3Q results Final
Dividend declared after Full Year results
34
Track Record Since 1999
35
Steady Growth with Strong Earnings
Turnover
CAGR 11.3
(m)
Singapore 40
Overseas 60
Profits Attributable to Shareholders
Economic Value Added
(m)
CAGR 13.9
Ave ? EVA 2.4m p.a.
(m)
36
Growth in Overseas Contribution
Overseas Operations as of SFI Group Total
Sales
EBITDA
PBT
37
Creating Shareholder Value
ROE
()
EVA Spread
38
5-Year Profit Dividend History
Dividend policy is 60-70 of net earnings,
subject to capital/investment requirements
Interim Dividend declared after 3Q results Final
Dividend declared after Full Year results
39
Thank You

• This presentation contains certain statements
  that are not statements of historical fact, i.e.
  forward-looking statements. Readers can identify
  some of these statements by forward-looking terms
  such as expect, believe, plan, intend,
  estimate, anticipate, may, will, would,
  could or similar words. However you should
  note that these words are not the exclusive means
  of identifying forward-looking statements.
  Forward-looking statements are made based on
  current expectations, projections and assumptions
  about future events. Although SFI believes that
  these expectations, projections and assumptions
  are reasonable at the time of making them, these
  forward-looking statements are subject to risks
  (known and unknown), uncertainties and certain
  assumptions about SFI, its business operations
  and the environment it operates in. Actual
  future performance, outcomes and results may
  therefore differ materially from those expressed
  in forward-looking statements. Representative
  examples of these risk factors include (without
  limitation) general industry and economic
  conditions, outbreak of animal disease, food
  scares, interest rate movements, cost of capital
  and capital availability, competition from other
  companies and venues for sales /manufacture/distri
  bution of goods and services, shift in customer
  demands, customers and partners, changes in
  operating expenses, including employee wages,
  benefits and training, and governmental and
  public policy changes. Readers are cautioned not
  to place undue reliance on these forward-looking
  statements, which are based on current view of
  management on future events.