SOUTHERN ACIDS (M) BERHAD

Analyst & Press BriefingFinancial Results 2nd Quarter ended 31st October 2010

10 December 2010

DELIVERING QUALITY SINCE 1981

Disclaimer NoticeThis presentation may contain projections and forward looking statements. Such statements are based on current circumstances and assumptions which may change over time. Accordingly no reliance should be placed on any of these projections and forward looking statements, express or implied in this presentation.

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Presentation Contents

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1. Operating Business Divisions

5. Share Price Performance

4. Business Outlook

2. 2nd Quarter Group Financial Highlights

3. Review of Major Operations

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FINANCIAL RESULTS 2nd QUARTER ENDED 31 OCT 2010

Oleochemical

Palm Oil Plantation

Healthcare

Warehousing & Port Cargo Handling

Investment & Management

Operating Business Segments

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2nd Quarter

Group Financial

Highlights

FINANCIAL RESULTS FOR THE 3 MONTHS ENDED 31 OCT 2010

128,599 111,134 15.72%

653.40%14,940

11,509

1,983

1,334Profit for the period after tax

Profit before tax

Revenue

5.78 sen 0.30 senEarnings per share (EPS)

15,129Total comprehensive income for the period 1,334

3 months Oct 2009 (RM’000)

3 months Oct 2010 (RM’000) Change

762.74%

1,034.11%

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1,826.66%

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FINANCIAL RESULTS FOR THE 6 MONTHS ENDED 31 OCT 2010

257,830 219,639

6 months Oct 2010 (RM’000)

6 months Oct 2009 (RM’000) Change

17.39%

124.40%

129.84%

26,638

19,523

11,871

8,494Profit for the period after tax

Profit before tax

Revenue

9.92 sen 4.35 senEarnings per share (EPS)

24,774Total comprehensive income for the period 8,494 191.66%

128.05%

Total Group Revenue (RM’000)

2Q FY112Q FY10

6 months FY116 months FY10

-

50,000

100,000

150,000

200,000

250,000

300,000

128,599 111,134

257,830

219,639

Revenue up mainly on higher sales volume and average selling prices recorded by the oleochemical and plantation divisions. 7

Group Profit before Tax (RM’000)

2Q FY112Q FY10

6 months FY116 months FY10

-

5,000

10,000

15,000

20,000

25,000

30,000

14,940

1,983

26,638

11,871

Profit before tax up mainly on higher sales and better margin earned on sales recorded by the oleochemical and the plantation divisions.

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Revenue by Business Segment 3 Months ended 31 Oct 2010 (RM’000)

2Q FY112Q FY10

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000 87,234

76,596

24,032 17,789

15,224 13,238

1,694 2,233 415

1,278

Oleochemicals

Plantation

Healthcare

Warehousing

Others

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Revenue by Business Segments 6 Months ended 31 Oct 2010 (RM’000)

6 months FY116 months FY 109

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000 177,598

151,203

46,329 34,791

29,803 27,055

3,094 4,010 1,006

2,580

Oleochemicals

Plantation

Healthcare

Warehousing

Others

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Pre-Tax Profit/Loss by Business Segment 3 months ended 31 Oct 2010

(RM’000)

2Q FY112Q FY10 (2,000)

-

2,000

4,000

6,000

8,000

10,000

4,019

(1,396)

9,118

2,599 1,017

(1,174)

632 990 153 963

Oleochemicals

Plantation

Healthcare

Warehousing & Conveying

Others

Better results were recorded by all major operating divisions for the 2nd quarter ended FY 2011 save for the warehousing and conveying business who registered a small reduction in profit compared to FY 2010 results. 11

Pre-Tax Profit/Loss by Business Segment 6 months ended 31 Oct 2010

(RM’000)

6 months FY116 months FY10

(2,000) -

2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000

7,202

1,698

16,240

7,663

1,273

(1,744)

1,601 1,721 321

2,533

Oleochemicals

Plantation

Healthcare

Warehousing & Conveying

Others

Better results were recorded by all major operating divisions for the 6 months ending FY 2011 save for the warehousing and conveying business who registered a small reduction in profit compared to the FY 2010 results. 12

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ReviewOf Major

Operations

Reven

ue

Pre-tax

Profit

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000 1

77,5

98

7,2

02

151

,203

1,6

98

6 months FY11

6 months FY10

17.46%

324.15%

Oleochemical Demand for the division’s oleochemical products

remained strong in the six months financial year ending 2011 because of the aggressive marketing & pricing strategy and dynamic production modules to suit customers’ needs.

Revenue for the six months ending 2011 was higher by 17.46% compared to year ended 2010 as a result of higher sales volume and higher average selling price realised on sales.

Pre-tax profit was also significantly higher at RM7.2 million in the six months for the current financial year because of higher sales and a forex gain in FY2011 as compared to a forex loss in FY2010.

Review of Major Operations

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Revenue

Pre-tax P

rofit

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000 4

6,32

9

16,

240

34,

791

7,6

63

6 months FY11

6 months FY10

33.16%

111.93%

Palm Oil Plantation• The much improved results recorded by

the division for the 6 months ending FY2011 is mainly due to higher production and sales volume, higher CPO selling prices achieved and profit margin earned on sales.

• Increased FFB quantities processed.• Oil Extraction Rate (OER) achieved in

the 1st 6-months was 23.35%.

Review of Major Operations

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Review of Major Operations

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(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000 29,803

1,273

27,055

(1,744)

6 months FY11

6 months FY10

Private Healthcare The Healthcare division has now

registered profit in two consecutive quarters in FY2011 as against the two quarter of losses recorded in the previous corresponding periods in FY2010.

The improved results is contributed mainly by the higher in-patient revenue recorded in the 1st 6-months of FY2011.

• The division is continuing with its efforts to aggressively market itself as a tertiary hospital of choice in the surrounding areas in Klang & Indonesia besides initiatives to also tap into the regional medical tourism market to broaden its income base.

10.16%

172.99%

RM’000

Review of Major Operations

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Reven

ue

Pre-tax

Profit

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500 3,094

1,601

4,010

1,721

6 months FY11

6 months FY10

Warehouse & Conveying

• Revenue and pre-tax profit from the warehousing and conveying division reduced marginally during the six months of FY2011 as against the previous corresponding six months in FY2010, mainly because of lower throughput handled by the division in FY2011 against FY2010.

RM’000

6.97%

22.84%

Business Outlook• Oleochemical • SAB’s oleo-chemical division is likely to enjoy robust growth in 2010 -

2012 in tandem with industry trends in Southeast Asia, fuelled by a short-term hike in demand from consumer markets and wider availability of raw materials such as palm oil, palm kernel oil.

• Growing markets for green chemicals and uses in new applications (eg. bio-lubricants, green chemicals, bio-plastics and biopolymers) may stimulate long-term growth in the regional oleochemical industry.

• Prices of fatty acids in Asia are dependent on feedstock palm kernel, palm stearin and CPO prices and tend to follow the price trends of these raw materials.

• Oil Palm Plantation• SAB’s plantation division is expected to benefit in the next

financial quarter FY2011 from the current hike in CPO prices which is trading at above RM3,500/mt. 18

Business Outlook• Private Health Care• SAB’s Private Health Care Division’s turnaround of financial

performance during the 1st & 2nd financial quarters FY2011 stems from its aggressive marketing campaign and success in winning support from its corporate clients.

• The Private Health Care Division is poised to take advantage of the growing medical tourism market in the region in the long term. Performance for the 3rd financial quarter FY2011 is expected to hold steady although seasonal influence of the festive period during the 3rd quarter may have a moderate impact on patient flow.

• Warehousing & Port Cargo Services• SAB’s Warehousing & Conveying Division is expected to hold its

current performance in tandem with demand for palm kernel expeller (pke) in the world market.

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Business Outlook• The Group’s 2nd quarter results was an

improvement over the 1st quarter, and the 1st 6-months results (FY2011) surpassed that of the previous corresponding period (FY2010) both in terms of revenue and profitability.

• Barring any unforeseen circumstances, we are optimistic that the Group will be able to sustain its current performance throughout the entire financial year.

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SharePrice

Performance

Share Price Performance

Jan 2008

Feb 2008

Mar 2008

Apr 2008

May 2008

Jun 2008

Jul 2008

Aug 2008

Sep 2008

Oct 2008

Nov 2008

Dec 2008

Jan 2009

Feb 2009

Mar 2009

Apr 2009

May 2009

Jun 2009

Jul 2009

Aug 2009

Sep 2009

Oct 2009

Nov 2009

Dec 2009

Jan 2010

Feb 2010

Mar 2010

Apr 2010

May 2010

Jun 2010

Jul 2010

Aug 2010

Sep 2010

Oct 2010

Nov 2010

Dec 2009

-

0.50

1.00

1.50

2.00

2.50

3.00

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Questions & Answers

Thank you