1. © 2003 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan. Opportunities in the European Phytosterol Markets Raju Adhikari London, 25/02/04

2. Today’s Presentation 01: Introduction to Phytosterols 02: Why Phytosterols 03: Applications of Phytosterols 04: Issues Facing the Phytosterol Market 05: Phytosterol Market- Key Findings 06: Conclusions 07: Key Market Participants 08: Other Attractions in the Report 09: Questions

3. Introduction to Phytosterols Phytosterols = Plant Stanols + Plant Sterols “Sterols- lipid like complex unsaturated alcohols Stanols- hydrogenated compounds of plant sterols” Functionally and Structurally Similar to Cholesterol Naturally Found in Food Grains and Vegetables (e.g., Corn oil, Soybeans, Rice bran, Wheat germ, Nuts and Spices) In industry, Phytosterol is Extracted Mainly from Two Sources, Soya and Wood pulp

4. Health Benefits from Phytosterols Cholesterol (LDL) Reduction Anti-Inflammatory Prostrate Enlargement Diabetes Management Anti-Ageing

5. Applications of Phytosterols Functional Food Ingredient Including Beverages “New applications in yoghurt/milk type products, bakery and soft-drinks” Pharmaceuticals “Direct formulation of pharmaceutical drugs; e.g., Cholestatin (Degussa)” Supplement “Big European market” Cosmetics “Excellent anti ageing qualities”

6. Trained Sales Teams Development of Brand Products GM Concerns Promotion of Phytosterol Concept Targeted Marketing Consumer Awareness Legislation Low European Manufacturing Capacity Good Marketing Correct Product Targeting to Appropriate Customers Key Issues Facing the Phytosterol Market

7. Key Findings I: Application Food Ingredient Pharmaceuticals Cosmetics 50%

8. Key Findings II: Regional Distribution Scandinavia UK GER, FRA, SPA Others 40%

9. Key Findings III: Market Forecasts

10. Conclusions PS EU Market of US$ 73M with Healthy Growth at 20% PS Concept Gaining Wider Audience Across EU Regions PS Applications Set to Increase Legislation, Consumer Awareness & Manufacturing Capacities are Current Challenges Facing the Industry Careful Planning Essential for New Market Entrants

11. Some Profiled Companies Suppliers Cognis Raisio DRT Teriaka UPM-Kymmene ADM Customers Degussa Raisio Unilever Cosmetic Companies Supplement Manufacturers

12. Other Attractions in the Report Porters Five Forces Analysis Strategic Recommendations Is this the Right Time for Market Entry? Good Marketing Techniques

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