US Investor Relations Roadshow

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US Investor Relations Roadshow

• NOVEMBER 2004

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Investment Profile

• Listed on London Stock Exchange
• Member of original FT-30 founded 1932
• UK Food Producers Sector
• Market Capitalization approx 4 billion
• 100 Free float
• Price 462p/share, 34.15 per ADR (11 November
  close)
• P/E ratio 14.13x
• Dividend Yield 4.1

Source Reuters
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Purpose and Vision

• PURPOSETo create the worlds leading renewable
  ingredients business

• VISION
• We will grow by uniting our businesses and
  developing partnerships to create the worlds
  leading renewable ingredients business. We will
  build a consistent global portfolio of
  distinctive, profitable, high value solutions in
  products and services for our customers.

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Tate Lyle Today
CEREAL SWEETENERS STARCHES
SUGARS
VALUE-ADDED RELATIONSHIPS

• EUROPE
• TLS/Alcantara
• Sugar Trading
• United Molasses
• Eastern Sugar
• AMERICAS
• Redpath Sugar
• Occidente
• Vietnam

• EUROPE
• Amylum
• Eaststarch
• AMERICAS
• Staley
• Almex
• Citric Acid

SPLENDA Sucralose Sorona Bio 3G AquastaTM
Astaxanthin
The DuPont Oval Logo, DuPontTM, Sorona, and The
miracles of scienceTM are trademarks or
registered trademarks of E.I. du Pont de Nemours
and Company
SPLENDA and the SPLENDA logo are trademarks of
McNeil Nutritionals, LLC
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Uniting Our BusinessesOne Company, One Brand,
One Tate Lyle
Tate Lyle
Sugars, Europe
Sugars, Americas
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Choosing How We Will GrowEconomics of the Four
Segments
Cash Generation per Unit
Cash for Growth
Consumer Branded
Cash and Low Cost/ High Volume Substrate for
Growth
Growth Opportunities
Data Illustrative not to scale
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Contribution to Profitability Year Ended March
2004
Margin Category Sales
EBITA/Sales Contribution to
Mgn Value added 15 23
3.4
Consumer branded 5 20
1.0 Quota constrained 16 10
1.6 Commodity 64
3 1.9 Group total
100 7.9
7.9
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The Starch ProcessCommodity Base Supports Value
Added Growth and Overall Group Margin Enhancement
Starch
Value Added Starches
Conversion
Glucose Syrup
Hydrogenation
Refining
42 55 HFCS Crystalline Dextrose Crystalline
Fructose Maltodextrin
AquastaTM Bio-3G Citric Acid Ethanol Xanthan Gum
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What Do Our Products Do?

• Thicken
• Bind
• Adhere
• Strengthen
• Sweeten
• Preserve
• Suspend
• Carry
• Improve Appearance
• Extend Shelf-Life
• Provide Humectancy

• Enrich / Fortify
• Encapsulate
• Emulsify
• Gel
• Agglomerate
• Coat
• Stabilise
• Acidify
• Provide Body
• Add Bulk
• Reduce Calories

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Product Analysis by Unit
UNIT Value Added Consumer Quota
Commodity Branded
Constrained Staley ?
? ? ? Redpath
? ? ? ? TL
Sugars ? ? ?
? Alcantara ? ?
? ? Amylum ?
? ? ? Sucralose
? ? ?
? Bio-3G ? ? ?
? Astaxanthin ? ? ?
?
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Where Can We Look For Added-Value Growth? Where
Is The Opportunity In Foods?
Forecast category values, Retail Sales Price, bn
bn
(North America, Western Europe)
200
22
153
150
22
125
23
103
32
2003
100
84
84
82
25
68
2008
62
49
17
39
50
38
18
16
11
8
0
Beverages
Bakery
Confectionery
Dairy
Soups, Sauces,
Breakfast
Bars
Dressings
cereals
Source Euromonitor, 2004
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From Supplier to Partner
Strategic Relationship Top-to-Top

• Sharing strategic priorities and consumer/market
  insights
• Set frameworks
• Listen to needs and set priorities
• Agree review process

Account Co-ordination/Planning
Collaborative project

• Routine price negotiation for commodities
• Partnering on innovation projects
• Solutions/account teams
• Separate pricing discussions from
  innovation/solutions relationships

OTIFFT
Delivery one way of doing business
Service level 1 Service level 2 Service level
3 Service level 4

• Choice of channel face-to-face, Electronic Data
  Interface, call centre
• Consistent standards and operations to meet the
  customers service targets
• Innovating the services we offer them
  (traditional relationships and added-value
  partnerships)

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We Are Helping Our Customers Respond Effectively
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SPLENDA Sucralose

• Realignment completed April 2004 132m cash
  paid
• Two expansions of Alabama facility totalling
  US75m to more than double capacity by April 2006
• US175m (97m) investment in new facility in
  Singapore completion by January 2007
• Plant will have approximately two-thirds of the
  expanded capacity of Alabama facility. Total
  capacity will be more than tripled

Before amortisation
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Barriers to entry
SPLENDA Sucralose brand
Regulatory Specifications
Economy of Scale
Technology
Know-how
Patents
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Intense Sweetener Market Relative Value Split by
Geography and by Product, Total Value US1bn
USm, Manufacturers Sales 2003
Data Company Estimates
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SPLENDA Sucralose Ingredient Use Split by
sales revenue
Pharma, 6
Beverages, 32
Food, 62
Data Company Estimates
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Bio-products

• Bio-3G (1,3-Propanediol)
• Bio-gums
• AquastaTM Astaxanthin

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Developing Partnerships Bio-3G with DuPont

• Combined investment approx. US100m by March 2006
• Initial commercial manufacturing facility in
  Loudon, Tennessee
• Construction complete 31 March 2006
• Sales forecast US75m by 2008
• Total addressable market estimated at US2bn
• If new plant successful, will not be a niche
  product

Bio-3G Loudon Plant (north view) Computer
Generated Image
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Market Polyester Grows Globally
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Bio-Gums -An Example of Organic Growth

• A family of hydrocolloid gums produced by
  fermentation
• A thickener high viscosity at low concentrations
  
• Opportunity for a portfolio of unique bio-gums -
  Xanthan gum first entry
• Complementary to food and industrial ingredients
• Highly value added - an important addition to
  our solution set approach to customers
• Principal markets food ingredients and oil well
  drilling

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AquastaTM Natural Astaxanthin

• Joint venture with US bio-tech company, Igene,
  announced in March 2003 to produce natural
  astaxanthin, AquastaTM
• Selby, UK plant is being commissioned
• Essential nutrient for farm raised fish
• Natural fermentation product
• Brand is trademarked

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Key ResultsSix Months to September 2004

• 9 increase in profit before tax, amortisation
  and exceptional items to 130m
• Exceptional growth in SPLENDA Sucralose
• Better than expected performance at Amylum
• Continued growth in value added food ingredients
• PBI/sales margin increased from 8.0 to 8.5
• RONOA of 17
• Interim dividend increased by 0.1p to 5.7p per
  share

before exceptional items and amortisation
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Profit and Loss AccountSix Months to September
HALF YEAR FIGURES
before exceptional items and amortisation
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Profit and Loss AccountSix Months to September
HALF YEAR FIGURES
before exceptional items and amortisation
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Exceptional ItemsLoss for the Half Year (42)m
HALF YEAR FIGURES
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Sweeteners and StarchesAmericas
HALF YEAR FIGURES
61 Group PBI

• Exchange translation reduced profits by 6m

before exceptional items and amortisation
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Sweeteners and StarchesAmericas

• Strong performance from food ingredients
• HFCS market slightly down
• Industrial starch gross margins volumes higher
• Higher corn, energy and ingredients costs
• Improved profitability
• Plant being commissioned
• Increased profitability

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Sweeteners and Starches AmericasSucralose

• Very strong demand buoyed by pipeline for product
  launches
• Pipeline fill, sales met out of stock
• Stock rebuild in H2
• Sales US113m, PBI 51m
• Transitional costs lower than expected

before amortisation
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Sweeteners and StarchesEurope
HALF YEAR FIGURES
41 Group PBI

• Profits decreased by 2m due to exchange
  translation

before exceptional items and amortisation
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Sweeteners and StarchesEurope

• Wheat corn prices fall to more normal levels
• Profitability reduction lower than expected
• Growth in food ingredients
• Optimise production capabilities
• Strong cash flow
• Profits in line with corresponding period
• Improved trading following EU accession

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EU Sugar Regime

• Due for renewal on 1 July 2006
• July 2004 - radical white paper by Agricultural
  Commission
• Paper has attracted widespread opposition and our
  view is that it is unlikely to survive in this
  form
• October 2004 - WTO panel found in favour of
  plaintiffs
• November 2004 - new Commissioners were due to
  take office. Mariann Fischer Boel listed to
  replace Franz Fischler
• EU expected to appeal WTO panel means that next
  round of proposals unlikely before spring 2005
• Outcome uncertain we cannot quantify impact
• Underscores importance of value added growth

Mariann Fischer Boel
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Capital Expenditure Investments
HALF YEAR FIGURES
m
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Free Cash FlowSix months to September 2004, in m
HALF YEAR FIGURES
53
11
181
51
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Tax
EBITDA
Interest
in WCap
Capex
Free cash flow
subsidiaries only, before exceptional items
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Net Debt Increased to 530mSix Months to
September 2004, in m

530
388
Net debt Sep 04
Net debt Mar 04
Free cash flow
Foreign Exchange Other
Dividends
Investments
HFCS settlement
Disposals
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Summary Balance Sheet
m
Times
subsidiaries only, annualised, before
exceptional items
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Key Financial RatiosSix Months to September
HALF YEAR FIGURES
before exceptional items and
amortisation annualised, subsidiaries only,
before exceptional items annualised,
before exceptional items
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Conclusion

• Strong balance sheet
• Proven management team
• Sound strategy based on continued growth in value
  added products
• Success in growing the business both organically
  and through partnerships
• Investing in research and development, consumer
  research and customer focus
• Excellent start to the 2005 financial year and we
  expect results for the year as a whole to reflect
  satisfactory progress

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Question and Answers