Ostasiatiske Kompagni A/S · OMXCOP:OKEAC

Ostasiatiske Kompagni A/S — DDF's Mid Caps Day 2002

45 slides from Ostasiatiske Kompagni A/S's conference presentation, May 23, 2002

1. Slide 1: DDF's Mid Caps Day

   Presentation at DDF’s Mid Caps Day Copenhagen, 23 May 2002 CEO Mark Wilson Executive VP Niels Henrik Jensen Executive VP, CFO Iqbal Jumabhoy

2. Slide 2: EAC at a Glance

   EAC at a Glance ƒ Focus on Asia and South America – Regions count for 62%, respectively 27% of turnover in 2001 ƒ Focus on 4 market-leading consumer and service businesses – Nutrition and Foods, Industrial Ingredients and Moving & Relocation Services ƒ Strong growth in the 4 strategic businesses – S

3. Slide 3: EAC's Restructuring

   EAC’s Restructuring ? ? ? Divestitures : Businesses 4 Entities 7 •Nutrition •Industrial Ingredients 2002 •Foods •Santa Fe/ Selectively build 4 Global Silverhawk core businesses •Trading •Technical Divestitures : Businesses 9 Entities 43 • Nutrition • Santa Fe • Timber • Trading Use proceeds • Foods

4. Slide 4: EAC's Strategy

   EAC’s Strategy ƒ Growth in the strategic businesses – Product extensions, innovation, geographic expansion and acquisitions, taking advantage of the Group’s strong capital structure ƒ Continue to invest in and develop our own brands – DKK 350m in advertising and promotion spendings in 2001 – DKK 312

5. Slide 5: EAC's Financial Targets

   EAC’s Financial Targets Communicated at the AGM 2000: ƒ Return on equity in excess of 10% by 2002 rising to +15% in 2004 – 16,9% in 2001 and 21% in 2000 based on reported net result ƒ Average growth in EPS of 30% per annum between 2000 and 2004 – 197% from 1999 to 2001 based on reported net result ƒ

6. Slide 6: Results From Underlying Operations

   Results From Underlying Operations 500 Operating Result 400 Net Result after Minorities 300 200 DKKm 100 0 -100 -200 1997 1998 1999 2000 2001 Earnings exclude all items not directly related to recurring operations ©EAC2002-05-22 Page 6

7. Slide 7: EAC Share Price Performance vs. KFX

   EAC Share Price Performance vs. KFX 500 500 EAC 450 450 400 400 Index 350 350 300 300 Index 250 250 200 200 KFX 150 150 100 100 50 50 Jan 99 Jan-99 Jun Jun-99 99 Nov Nov-99 99 Apr 00 Apr-00 Sep 00 Sep-00 Feb 01 Feb-01 JulJul-01 01 Dec 01 Dec-01 May 02 May-02 EAC Index KFX index ©EAC2002-05-22 Page 7

8. Slide 8: Q1 2002 and Outlook for 2002

   Q1 2002 and Outlook fomgaoe2” =

9. Slide 9: Highlights for Q1 2002 – Group Financials

   Highlights for Q1 2002 – Group Financials ƒ Net sales for the four strategic businesses up 5% – Net sales for the Group at DKK 1,795m vs. DKK 1,843m in Q1 2001 ƒ Operating result from underlying operations level with last year – Total operating result for the Group up 33% to DKK 161m vs. Q1 2001 ƒ O

10. Slide 10: Highlights for Q1 2002 – Strategic Businesses

    Highlights for Q1 2002 – Strategic Businesses Record EAC Nutrition EAC Foods Record Q1 sales volumes at above DKK 18792 500m tonnes EAC Industrial EAC Moving & Ingredients Relocation Services 21% sales growth, best Best Q1 ever net sales Sales ever and operating (including result China) ©EAC2002-05-

11. Slide 11: Events for the First Quarter 2002

    Events for the First Quarter 2002 ƒ Free float of bolivar from mid-February 2002 ƒ Sale of Fibertex announced on 18 March 2002 ƒ Completion of share repurchase programme ƒ Change in accounting policies – According to the new Danish Company Accounts Act of 7 June 2001 – New policies have been applied

12. Slide 12: Profit & Loss Q1 2002

    EAC Group Profit & Loss Q1 2002 DKKm 2002 2001 Net sales 1,795 - 3% 1,843 EBITDA 204 + 28% 159 Operating result 161 + 33% 121 Financing, net -9 - 36% -14 Revaluation of financial fixed assets 0 - 100% 75 Tax on result of ordinary activities 33 - 20% 41 - 16% 141 Result after tax of ordinary activiti

13. Slide 13: Net Sales by Currency Q1 2002

    EAC Group Net Sales by Currency Q1 2002 2% 5% USD 11% 1% THB JPY NGN 14% DKK Others 68% ©EAC2002-05-22 Page 13

14. Slide 14: Net Sales by Industry Segment Q1 2002

    EAC Group Net Sales by Industry Segment Q1 2002 DKKm 2002 2001 EAC Nutrition 516 + 4% 496 EAC Foods 464 0% 466 EAC Industrial Ingredients 169 + 21% 140 EAC Moving & Relocation Services 105 + 17% 90 Subtotal 1,254 + 5% 1,192 Other Activities 541 + 4% 518 Disposed Businesses 0 - 100% 133 Total 1,795 -

15. Slide 15: Operating Result Q1 2002

    EAC Group EAC Group Operating Result Q1 2002 DKKm 2002 2001 EAC Nutrition 62 - 6% 66 EAC Foods 36 + 16% 31 EAC Industrial Ingredients 24 + 50% 16 EAC Moving & Relocation Services 1 - 88% 8 Subtotal 123 + 2% 121 Other Activities + 150% 10 4 Disposed Businesses 6 - 45% 11 Unallocated Inc./Exp. net 22

16. Slide 16: Operating Result From Underlying Operations Q1 2002

    EAC Group Operating Result From Underlying Operations Q1 2002 DKKm2002 2002 2001 Result of underlying operations 110 - 1% 111 Items not directly related to the recurring operations, net 51 10 Results as reported 161 + 33% 121 Profit from sale of shareholding in Fibertex A/S of about DKK 40m and a ga

17. Slide 17: Financing Q1 2002

    EAC Group Financing Q1 2002 DKK m 2002 2001 Income 14 - 7% 15 Expenses -20 - 13% -23 Translation adjustments and exchange gain/losses, net -3 - 50% -6 Financing income and expenses, net -9 - 36% -14 Revaluation of financial fixed assets 0 n/a 75 Total -9 - 115% 61 ©EAC2002-05-22 Page 17

18. Slide 18: Balance Sheet as at March 2002

    EAC Group Balance Sheet as at 31 March 2002 -11% 6,000 5,000 +12% +13% 4,000 DKKm 3,000 2,000 2002 2001 1,000 0 -1,000 Total Assets Group EAC's share Net Interest Equity of Equity Bearing Debt ©EAC2002-05-22 Page 18

19. Slide 19: Invested Capital in Strategic Businesses

    Invested Capital in Strategic Businesses 900 EAC Nutrition +2% vs. 2001 800 700 EAC Foods 600 -10% vs. 2001 500 EAC Industrial DKKm 400 Ingredients +1% vs. 2001 300 200 EAC Moving & Relocation Services 100 +3% vs. 2001 0 2002 2001 ©EAC2002-05-22 Page 19

20. Slide 20: Ratios

    EAC Group Ratios Q1-2002 Q1-2001 YE 2001 Operating margin 8.9% 6.6% 7.4% Interest coverage 18.4 8.9 12.1 Equity ratio 60.1% 48.1% 57.2% Return on invested capital 23.9% 19.7% 21.9% Annualised earnings per Share 22.8 24.7 20.6 Stock exchange quotation, end of period 170.8 172.8 186.8 Number of employ

21. Slide 21: EAC's Four Strategic Businesses

    EAC’s Four Strategic Businesses EAC Nutrition EAC Foods EAC Industrial EAC Moving and Ingredients Relocation Services ©EAC2002-05-22 Page 21

22. Slide 22: EAC Nutrition

    EAC Nutrition EAC Nutrition develops, produces and markets a wide range of infant and child nutrition products. With market coverage spanning Asia and the Middle East, EAC Nutrition is recognised as one of the leading companies in this field ©EAC2002-05-22 Page 22

23. Slide 23: EAC Nutrition – Highlights Q1 2002

    EAC Nutrition Highlights Q1 2002 ƒ For the first time ever, quarterly net sales surpassed DKK half a billion ƒ China continues to perform well and achieved growth of 31% compared to last year ƒ Non-recurring profit of about DKK 12m from sale of Yoplait-franchise in China ƒ Operating margin, excludin

24. Slide 24: EAC Nutrition – Profit & Loss Q1 2002

    EAC Nutrition Profit & Loss Q1 2002 DKK m 2002 2001 Net sales 516 + 4% 496 Operating result 62 - 6% 66 Operating margin 12.0% - 1.3 pp 13.3% Operating margin excl. one-offs 9.6% - 3.7 pp 13.3% Total assets end-of-period 1,364 + 3% 1,327 Invested capital end-of-period 798 + 2% 781 Return on invested

25. Slide 25: EAC Nutrition – Milk-powder Prices

    EAC Nutrition Milk-powder Prices 2.400 2.200 SMP = Skummet- Skimmed mælkspulver 2.000 Milk (SMP) Powder per ton Smør 1.800 USD USD 1.600 1.400 Sødmælks- pulver (WMP) 1.200 1.000 mar 01 mar 00 sep 99 sep 00 sep 01 Sep. 1999 Mar. 2000 Sep. 2000 Mar. 2001 Sep. 2001 Mar. 2002 ©EAC2002-05-22 Page 25

26. Slide 26: EAC Nutrition – Outlook 2002

    EAC Nutrition Outlook 2002 ƒ Double-digit sales growth for the full year – Sales expected to pick up in the 2nd half of the year ƒ Growth as a combination of: – Continued high growth in China (+20%) and the Philippines – Single-digit growth in Malaysia/Thailand – Product upgrades and product introdu

27. Slide 27: EAC Foods

    EAC Foods EAC Foods is an integrated manufacturer and distributor of processed meat products. Operating under the brand names Plumrose and Oscar Mayer, EAC Foods is the leading processed meat company operating in Ecuador and Venezuela ©EAC2002-05-22 Page 27

28. Slide 28: EAC Foods – Highlights Q1 2002

    EAC Foods Highlights Q1 2002 ƒ Achieved record quarterly volume sales and highest Q1 operating result in the last 5 years ƒ Net sales in DKK level with same period last year ƒ Net sales in USD 5% below last year due to devaluation of the bolivar from mid-February 2002 ƒ In Ecuador net sales grew 40%

29. Slide 29: EAC Foods – Profit & Loss Q1 2002

    EAC Foods Profit & Loss Q1 2002 DKKm 2002 2001 Net sales 464 + 0% 466 Operating result 36 + 16% 31 Operating margin 7.8% + 1.1 pp 6.7% Total assets end-of-period 994 - 6% 1,060 Invested capital end-of-period 600 - 10% 666 Return on invested capital p.a. 22.3% + 3.8 pp 18.5% Employees, no. end-of-per

30. Slide 30: EAC Foods – Macro Economic Key Figures by April 2002

    EAC Foods Macro Economic key Figures by April 2002 ƒ Venezuela crude oil was priced USD 21,37 per barrel end-April – USD 15-20 per barrel assumed for the year ƒ Actual devaluation was 16,29% – 40% devaluation assumed for the year ƒ Actual inflation was 9,3% – 30% annual inflation assumed for the yea

31. Slide 31: EAC Foods – Outlook 2002

    EAC Foods Outlook 2002 ƒ Benefits of efficiency improvements in the value chain – Notably the distribution and the pig farm ƒ Strong year in Ecuador, cautious projections for Venezuela ƒ 10% volume decline and 20% reduction in USD sales ƒ Operating margin in the range of 7% – Following a move toward

32. Slide 32: EAC Industrial Ingredients

    EAC Industrial Ingredients From its strong platform as a leading independent distributor of industrial ingredients in Thailand, EAC Industrial Ingredients has successfully expanded its distribution business in Southeast Asia. In addition, Industrial Ingredients has invested in a number of production

33. Slide 33: EAC Industrial Ingredients – Highlights Q1 2002

    EAC Industrial Ingredients Highlights Q1 2002 ƒ Net sales grew by 21% compared to Q1 2001 ƒ Growth in Thailand distribution sales significantly up ƒ Regional markets continue to sustain a higher rate of growth with Vietnam being a major contributor ƒ Improving margins ƒ The operating result of DKK 2

34. Slide 34: EAC Industrial Ingredients – Profit & Loss Q1 2002

    EAC Industrial Ingredients EAC Industrial Profit & Loss Q1 2002 Ingredients DKKm 2002 2001 Net sales 169 + 21% 140 Operating result 24 + 50% 16 Operating margin 14.2 +2.8 pp 11.4% Total assets end-of-period 541 + 19% 456 Invested capital end-of-period 293 + 1% 290 Return on invested capital p.a. 31.

35. Slide 35: EAC Industrial Ingredients – Outlook 2002

    EAC Industrial Ingredients Outlook 2002 EAC Industrial Ingredients ƒ Double-digit growth in net sales – Domestic demand within main markets and core industries is recovering – Will alleviate slowdown for export-oriented industries ƒ Regional expansion will continue – In line with the objective of fu

36. Slide 36: EAC Moving & Relocation Services

    EAC Moving & Relocation Services EAC Moving & Relocation Services is a dominant force in the Asian moving and relocation industry. Operating from 22 units and covering a wide range of destinations, services include value-added relocation, household removals, office relocations and record management.

37. Slide 37: EAC Moving & Relocation Services – Highlights Q1 2002

    EAC Moving & Relocation Services Highlights Q1 2002 ƒ Net sales increased 17% vs. Q1 2001 as a result of consolidation of the China entity, Sino Santa Fe International from 1 January 2002 ƒ The relocation market remains price competitive ƒ Value added relocation services growing well, particularly i

38. Slide 38: EAC Moving & Relocation Services – Profit & Loss Q1 2002

    EAC Moving & Relocation Services Profit & Loss Q1 2002 DKKm 2002 2001 Net sales 105 + 17% 90 Operating result 1 - 88% 8 Operating margin 1.0% - 7.9pp 8.9% Operating margin excl. one-offs 1.0% + 1pp 0.0% Total assets end-of-period 240 + 6% 227 Invested capital end-of-period 110 + 3% 107 Return on inv

39. Slide 39: EAC Moving & Relocation Services – Outlook 2002

    EAC Moving & Relocation Services Outlook 2002 ƒ Growth in net sales by more than 25% ƒ Strong growth in China following the WTO-membership – Gains also expected in Japan, Thailand, Indonesia and the Philippines ƒ Recovery in Singapore and Hong Kong from 2nd half of the year – Due to improved economi

40. Slide 40: Other Activities

    Other Activities DKKm 2002 2001 Net sales 541 + 4% 518 Operating result 10 + 150% 4 ©EAC2002-05-22 Page 40

41. Slide 41: Outlook 2002

    Outlook 2002 ©EAC2002-05-22 Page 41

42. Slide 42: Economic Growth in Key Markets

    Source: Foreign Exchange Consensus Forecasts, Mar. 11 issue C -7.5% -5.0% -2.5% 0.0% 2.5% 5.0% 7.5% 10.0% H hi na on g K on In g do 1999 ne si M a al ay Ph si 2000 ili a pp in 2001 Si es ng ap or e 2002e Th Economic Growth in Key Markets ai la Ve nd ne zu el a ©EAC2002-05-22 Page 42

43. Slide 43: Strategic Businesses Outlook for 2002 Unchanged

    Strategic Businesses Outlook for 2002 Unchanged EAC Nutrition Double-digit sales growth with operating margins slightly lower than in 2001 EAC Foods 10% volume decline and 20% reduction in US dollar sales. Operating margin around 7% EAC Industrial Double-digit growth in net sales and an operating re

44. Slide 44: Outlook for 2002

    EAC Group Outlook for 2002 ƒ Effect of disposals to date is to reduce income from underlying operations and to increase non-recurring income ƒ Assumption: that future disposals will reduce income from underlying operations, release cash but not contribute to non-recurring income ƒ Overall group outl

45. Slide 45: Questions, please

    Questions, please = =\

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