2012 Interim Results

Corporate Presentation August 2012

1

Disclaimer

This presentation is prepared by China Lumena New Materials Corp. (the “Company”) and is solely for the

purpose of corporate communication and general reference only. The presentation is not intended as an offer

to sell, or to solicit an offer to buy or form any basis of investment decision for any class of securities of the

Company in any jurisdiction. All such information should not be used or relied on without professional advice.

The presentation is a brief summary in nature and do not purport to be a complete description of Company, its

business, its current or historical operating results or its future prospects.

This presentation is provided without any warranty or representation of any kind, either expressed or implied.

The Company specifically disclaims all responsibilities in respect of any use or reliance of any information,

whether financial or otherwise, contained in this presentation.

This presentation contains certain forward-looking statements with respect to the financial condition, results of

operations and business of the Company. These forward-looking statements represent the Company’s

expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that

could cause actual results, performance or events to differ materially from those expressed or implied in such

statements. Certain statements, such as those that include the words “potential”, “estimated”, “expect”,

“anticipates”, “objective”, “intends”, “plans”, “believes”, “estimates”, and similar expressions or variations on

such expressions may be considered “forward-looking statements”.

Forward-looking statements involve inherent risks and uncertainties. Readers should be cautioned that a

number of factors could cause actual results to differ in some instances materially, from those anticipated or

implied in any forward-looking statement. Forward-looking statements speak only as of the date they are made,

and it should not be assumed that they have been reviewed or updated in the light of new information or future

events. Trends and factors that are expected to affect the Company’s results of operations are described in the

“Business Review and Financial Review”.

2

Agenda

1. Major Highlights

2. Financial Highlights

3. Business Review

4. Future Strategies

5. Q&A

1. Major Highlights

3

Signed a framework agreement with Dutch DSM in March 2012 to jointly develop

new products and explore overseas sales market

By the end of 2012, capacities of PPS resin and PPS fibre will reach 55,000 tpa and

20,000 tpa respectively

By 4Q 2012, the new production line of Yinpian natrii sulfas exsiccatus will carry out

trial production

Joint Development

with Dutch DSM

Significant Development

Expansion of Capacity

No interim dividend

Intend to maintain current dividend payout ratio of 25% of the net profit for the full

year of 2012.

Participation in

Formulation of

National Standards

Dividend

Key participant for drafting of “PPS National Standard Development” - formulating PPS

national standards and national textile industry standards of PPS staple fibre

Appointed by the government to participate in the revision of the national standards for

industrial anhydrous sodium sulfate and the development of the national standards for

cosmetic grade and food grade thenardite

Major Highlights

Continuous

Financial Growth

4

Net Profit: RMB820.1 million

Net Profit Margin: 37.2%

+ 5.9%

+ 1.7%

Actively implement product mix restructuring, switch the focus to develop high value-

added products

Continuous growth in PPS revenue and sales volume, which were +15.4% and +9.9%

respectively

Revenue from PPS and medical thenardite products increased to approximately

84.2% of the total revenue, revenue of medical thenardite products (56% of thenardite

revenue) overtook specialty thenardite products

2. Financial Highlights

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6

Financial Highlights

(RMB mn)

2012 2011 Change

For the six months ended 30 June

Revenue 2,203.1 2,236.1 -1.5%

Gross Profit 1,307.0 1,455.3 -10.2%

Profit before Taxation 1,033.5 1,031.8 +0.2%

EBITDA 1,403.9 1,450.7 -3.2%

Profit for the Period Attributable to

Owners of the Company 820.1 774.5 +5.9%

Basic Earnings per Share (RMB cents) 14.66 15.04 -2.5%

Gross Profit Margin 59.3% 65.1% -5.8% pts

EBITDA Margin 63.7% 64.9% -1.2% pts

Net Profit Margin 37.2% 35.5% +1.7% pts

7

Financial Performance

Notes:

(RMB mn)

(RMB mn) (RMB mn)

(RMB mn) (%) (%)

Revenue EBITDA

Gross Profit & Gross Profit Margin Net Profit & Net Profit Margin

For the six months ended 30 June

* The decrease in the revenue was mainly due to lower pricing of specialty thenardite due to new competitor

* The decrease in gross profit margin was mainly attributable to the adjustment of product portfolio, especially the substantial increase in the

proportion of PPS revenue, and the pressure imposed by the new competitor on the prices of specialty thenardite

* The increase in net profit was attributable to the growth in PPS business and reduction in overall finance costs as well as selling and

distribution expenses

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Revenue by Products

PPS & Thenardite Products Revenue Revenue Breakdown by Products

2012

Thenardite Products PPS Products

Powder thenardite

Medical thenardite

Speciality thenardite

PPS compounds

PPS fibre

PPS resin

For the six months ended 30 June For the six months ended 30 June

(55.1%)

(44.9%)

(64.5%)

(35.5%)

9

Cost Structure

Thenardite Products PPS Products

Coal and other power 11.8%

Packaging 10.4%

Other raw materials (thenardite)

2.2%

Depreciation (thenardite)

6.8%

Labour and others (thenardite)

1.4%

p-DCB (对二氯苯) 26.1%

Sodium sulfide (硫化钠) 4.1%

Other raw materials (PPS) 10.6%

Depreciation (PPS) 15.1%

Electricity 5.0%

Labour and others (PPS) 2.0%

Catalyst and other solvent 4.5%

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Financial Position & Operational Management

As of 30 June 2012 As of 31 Dec 2011

Balance sheet

Total Assets 20,140 19,322

Net Assets 14,040 13,308

Onshore Borrowings 972 993

Offshore Borrowings 3,737 3,702

Borrowings 4,709 4,695

CAPEX Additions 1,031 2,572

Operational Management

Inventory Turnover Days 17 days 15 days

Trade Receivable Turnover Days 79 days 78 days

Trade Payable Turnover Days 39 days 33 days

(RMB mn)

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Major Financial Indicators

As of 30 June 2012 As of 31 Dec 2011

Indebtedness

Net Debt/ EBITDA* (times) 0.74 0.79

Total Debt/ EBITDA* (times^) 1.83 1.79

EBITDA/ Interest (times**) 12.93 6.19

Net Gearing# (times) 0.13 0.16

(RMB mn)

Short Term Borrowings 1,881.4 1,737.5

Long Term Borrowings 2,827.7 2,957.0

Cash & Cash Equivalents 2,816.3 2,631.4

Net Debt 1,892.8 2,063.1

Notes: Interest recognized during 1H2012 was net of capitalized borrowing cost of approximately RMB141.5 million and the finance income of

approximately RMB64.1 million from loan commitment of CIC and CITIC USD120 million Convertible Bonds

* Calculated for the period from 1 July 2011 to 30 June 2012

# Net gearing = Net borrowings / Shareholders’ equity

^ S & P and Moody’s expected ratio is less than 3.

** S & P and Moody’s expected ratio is more than 5.

3. Business Review

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Continuous Growth in PPS Revenue & Sales Volume

Total PPS revenue +15.4%

Total PPS sales volume +9.9%

Revenue of PPS Products Sales Volume of PPS Products (on neat resin basis )

Note: The interim figure of 2010 was not consolidated into the Group’s 1H 2010 figures as it relates to the financial period prior to the acquisition of Sino Polymer

For the six months ended 30 June

(RMB mn)

For the six months ended 30 June

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Continuous Growth in PPS ASP & Gross Profit

ASP by Different PPS Products (Net of Tax) GP and GP Margin of PPS Products

(RMB mn) (RMB’000 / ton) (%)

For the six months ended 30 June For the six months ended 30 June

Notes:

8.4%

5.0%

6.0%

* The decrease of gross profit margin in PPS products for the 6 months ended 30 June 2012 was mainly due to 1) increase in cost of key raw material p-DCB

of approximately 16%, and 2) the additional depreciation of approximately RMB24 million resulting from the completion of technical improvement on existing

resin production line to increase capacity, as compared to the same period in last year

** Overall ASP of PPS products was RMB 73,400 / ton for six months ended 30 June 2012 (six months ended 30 June 2011: RMB 69,900/ton)

15

Thenardite Revenue & Sales Volume

Revenue by Different Thenardite Products Sales Volume of Different Thenardite Products

(RMB mn) (‘000 tons)

Note: 24,000 tons of powder thenardite was internally consumed as sodium sulfide for the production of PPS for the 6 months ended 30 June 2012

For the six months ended 30 June

1H 2012 Sales Volume: 838,500 tons

1H 2011 Sales Volume: 951,000 tons

For the six months ended 30 June

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Thenardite ASP & Gross Profit & GP Margin

ASP of Different Thenardite Products (Net of Tax) GP and GP Margin of Thenardite Products

(RMB mn) (RMB / ton)

For the 6 months ended 30 June

(%)

Note: The decrease in ASP of specialty thenardite for the 6 months ended 30 June 2012 was mainly due to the pricing pressure imposed by a new competitor

7.4%

35.9%

9.4%

For the 6 months ended 30 June

4. Future Strategies

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18

Future Strategies

Seize the opportunities

brought about by the

12th Five-Year Plan,

increasing PPS

capacity

Strengthen the R&D of

PPS new materials,

expanding PPS business

Adjust and improve

the structure of

medical thenardite products,

extending medical

thenardite’s

market segmentation

Tap the potential of

industry chain to improve

the Group’s profitability

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Further Expanding PPS Production Capacity to Meet Strong Demand

2011 2013 2012

Tons per annum

PPS Resin

PPS Fibre

PPS Compounds

20

Seize Market Opportunities & Expand PPS Business

25% CAGR for the new materials industry during 2011-15 and RMB2

trillion market size by 2015 under the 12th Five-Year Plan

Named key product in the new materials industry in China under the 12th

Five-Year Plan, to be supported and developed by the government

New emission standard of air pollutants for coal fired power plants

effective on 1 January 2012, bringing strong demand for environmental

filter bags made of PPS fibre for the plants

PPS confirmed by industry sources as the most cost effective material

for filter bags; Lumena New Materials recommended by Filter Bag

Committee of China Association of Environmental Protection Industry

as the major PPS supplier to association members

Expand the Company’s overseas sales network and boost presence in

overseas market.

Explore the development in PPS/PA46 alloys and the new products and

applications of PPS.

R & D in PPS superfine fibre production technology

R & D in the technology of applying PPS materials in paper manufacturing

facilities

Promotion of the technology in the application of PPS materials in bridge

attachments

Cooperation with Dutch Royal DSM

Research and Development for PPS

PPS listed as one of the key new materials in the 12th Five-Year Plan

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Restructure Product Mix & Prioritize the

Development of Medical Thenardite

Actively implement product mix restructuring, switch the focus to

develop high value-added products

Medical Grade

Pre-medical Grade(inc foodstuff

grade, cosmetic grade and health products grade)

Animal feed grade (inc veterinary

drugs grade )

Industrial grade (anhydrous sodium sulfate)

Enlarge medical thenardite’s market segmentation, adopt product

differentiation strategies to maintain higher profitability of

thenardite business

Develop downstream medical thenardite products. The new

production line of Yinpian natrii sulfas exsiccatus is expected to

carry out trial production in 4Q 2012

Develop new products and applications for medical thenardite.

Remarkable progress was made in the development of a colonic

cleansing agent made from thenardite, which is currently under joint

development by the Group and Huaxi Hospital in China

Value

22

(RMB’mn) 1H 2012 PPS Estimated

2012 PPS

PPS resin production facility 817 1,832

PPS fibre & PPS compounds production

facility 93 866

Repair & Maintenance of existing

production facilities - 200

Sub-total 910 2,898

(RMB’mn) 1H 2012 Thenardite Estimated

2012 Thenardite

Maintenance of mines, plant and

equipment 121 200

Downstream medical thenardite

production facility - 50

Sub-total 121 250

Total 1,031 3,148

CAPEX Plan

5. Open Forum

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Appendix

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Brief Introduction of PPS SRI Consulting published a detailed research report on the current and future PPS market

performance on 13 July 2011

Source: SRI Source:SRI

Properties Representative Uses

Industrial Applications

Excellent corrosion resistance Reduction of weight Resistance to heat and chemicals

Replacement of metals to make pumps, valves and pipes

Electrical and Electronic

Appliances

Good insulation Resistance to heat and chemicals

Electrical connectors and sockets Switch parts and other appliance parts

Automotive / Transportation Chemically resistant to automotive fluids Higher under-the-hood temperature resistance Resistance to fuels, oils, lubricants hydraulic fluids and coolants

Environmental Protection (Filter bag)

Excellent high-temperature resistance Excellent chemical resistance Reduction of maintenance cost

Reduction of dust, emission in coal-fired power plant

Aerospace Applications

Reduction of weight Replacement of metal parts

Coating

Corrosion protection of ferrous metals Application in slurry coating, electrostatic coating on cold or hot surfaces, powder flocking, or fluidized bed coating

Excellent high-temperature resistance

Exceptional chemical resistance

High strength-to-weight ratio

Electrical performance

Corrosion Resistance

Flame resistance

PPS: Pinnacle of the polymer “Performance Pyramid” Outstanding technical performance characteristics

Numerous applications where technical performance is the critical factor

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The #1 PPS Producer Globally, and the Only

Producer in China

Others &

Imports

46.6%

Lumena

53.4%

2010A Total consumption = 41.2 kt

2010A China

PPS Resin

Consumption

By Market

Share (%)

Source: SRI Source: SRI

Source：SRI Source: SRI * New Products: Subway insulators

2011 PPS Resin Planned Capacity (Kt)

2010A China PPS Supply Market Share (%) PPS Resin Capacity (Kt) 169.1

102.6

Lumena is the largest, and only pure-play, PPS producer in the world Lumena is currently the only major PPS producer in China

Leading market share in all PPS market segments in China Expansion of capacity will further strengthen Lumena’s leadership

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Filter Bags 36.2%

New Products* 3.1%

Industrial 7.4%

E&E 17.1%

Automotive

21.5%

Coating 6.3%

Aerospace 8.4%

Highly Attractive Industry Dynamics & Growth

Prospects

Source: SRI Source: SRI

Source: SRI Source: SRI

Global PPS Resin Demand (Kt)

China PPS Resin Demand CAGR ’11E-’15E By Application (%) China PPS Resin Demand ’11E-’15E By Application (%)

China PPS Resin Demand (Kt)

2011E Total = 50.7 kt 2015E Total = 103.9 kt

New products: subway insulators, high speed rail fasteners, PPS fire protection clothes, PPS film and PPS paper

Filter Bags 29.7%

New Products* 23.8%

Industrial

5.0%

E&E 11.3%

Automotive 16.5%

Coating 5.2%

Aerospace 8.5%

China’s PPS market has a number of particularly attractive segments with significant growth prospects

China is currently the world’s largest PPS market and is expected to gain further importance

Significant growth prospects, especially in new products

Demand for PPS is strong globally as it applies widely

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Vertically Integrated PPS Business

Source: Company Information, SRI

Source：Company Information Source：Company Information

China Lumena New Materials Corp. is the largest PPS resin producer in terms of

production capacity in the world and the only Chinese PPS producer with large

scale industrialised production. Its production base is located in Sichuan Province

The Company began to build a new PPS resin production line with annual

production capacity of 25 Kt, and a PPS fibre production line with annual

production capacity of 15 Kt, which are expected to completion by the end of

2012. By that time, the Company’s PPS resin and PPS fibre annual production

capacity will increase to 55 Kt and 20 Kt respectively.

Lumena’s production capacity of PPS resin accounts for more than 99% of PPS

resin in China, and 29% in the world. It supplied 53% on a neat basis of the China

domestic market in 2010

With its leading R&D capabilities, the Company has been able to develop its

proprietary PPS production technology

Established in 2006

PPS resin capacity: 6 Ktpa

PPS compounds capacity: 30 Ktpa

Established in 2007

2 PPS resin production facilities: 24 Ktpa

PPS fibre production facility: 5 Ktpa

Deyang Chemical

Deyang New Materials

Average Selling Price (RMB)

PPS Production Capacity (Kt)

PPS: attractive business profile Moving towards high-value-added products

Significant PPS capacity expansion planned Production base located in Sichuan Province

291.7 807.7

3,064.1

0

1000

2000

3000

4000

60000

70000

PowderThenardite

SpecialtyThenardite

MedicalThenardite

PPSCompounds

73,000

3126.9

539.6 263.7