Stakeholders Meeting

21 July 2008

AgendaAgendaCompany Background

Nature of Business

Current Infrastructure

Industry Background

Industry Trends

Industry Growth

Target Consumers

Key Competitors

SWOT

Production Expansion

Sales & Marketing

Recommendations

Recap

Q & A

Key PurposesKey Purposes

Company OverviewCompany Overview

Background Business Infrastructure Operations

1988 1992

Factory in Malaysia

Salt TamarindHead office in Singapore

Households

Restaurants

Hawkers

Seasoning

Flour Powder

Grains Beans

Seeds Sauces

Condiments

Wholesalers

30% imports

Singapore

Malaysia

Brunei

Processes raw materials

Company Background Company Background

QUALITY MUST BE OF CONSISTENT STANDARDS & FOOD FIT FOR HUMAN CONSUMPTION

Knowing, Understanding, Maximizing

Food ProcessingFood Processing• Methods and techniques used to transform

raw ingredients into food for human consumption

• Good processing techniques, and proper packaging, transportation and storage food can play a significant role in reducing spoilage and extending shelf life

ChallengesChallenges• Retaining nutritional value, flavor, aroma, and

texture of foods

• Presenting in near natural form with attractive added conveniences at low incremental costs

• Physico-chemical parameters and sensory evaluations providing the only means of benchmarking

Industry TrendsIndustry Trends

Men and Women Working

Convenience and Fast

PreparationInstant Food

Greater Level of Pre-packing

Healthier Food Products and Food Safety

Reduction of Fat Content

As time progresses, people progresses…

Industry GrowthIndustry Growth• Growth of food processing sector nearly

doubled to 13.7 per cent during last four years

• Target growth to 20 per cent by 2015

• Investments buoyant

• Processed food sales worldwide; US$3.2 trillion (2004)

Fish FarmsFish Farms

•Seasoning•Commodities for daily operations

Cooked Food Cooked Food IndustriesIndustries

•Household •Hawkers•Restaurants

Good quality products to

capture consumers’

hearts

Key CompetitorsKey Competitors

Key CompetitorsKey Competitors

Pure Harvest

– Leader in the natural and organic food industry– Highest quality of natural and organic ingredients – Trend moving towards having healthier choices– A threat to Ken Hong Seng Tat Kee Trading as

both sells beans

Disadvantage: Expensive

Key CompetitorsKey CompetitorsThe Prima Groups

– Variety of products– Established reputation; first few flour

millers in the whole of South East Asia– Experience leading to customers’ trust

and loyalty– Recent food poisoning case that caused

turmoil in Singapore

StrengthsStrengths WeaknessesWeaknesses

OpportunitiesOpportunities ThreatsThreats

•Large variety of products•Larger shelf space & larger market share•Cater to different needs of customer•Providing satisfaction and building up trust

•Usage of good quality ingredients as their marketing strategy have helped them established a good reputation

•Insufficient advertisements

•Causes unawareness•Dependent on loyal customers to spread the word

•Ken Hong Seng Tat Kee Trading not a listed company

•They do not have much funding•Many limitations to what they can do

•China-ASEAN free trade agreement established by 2010•Many business opportunities to break into the market of China

•Few organic companies in current industry•Preferences shifting towards healthier choices

•Increasing oil prices •Put a toll on the company’s operation cost

•Unlisted company with limited funding

•Would make the company reconsider expanding its business

Building Blocks…

Entry ModesEntry Modes

Core Entry Mode

– Foreign Direct Investments• Begins as a small venture• Expands when the opportunity appears

ConsiderationsConsiderations

Governmental Stability

Security Risk

Economy

Foreign Relations

Rental & Utilities

Transportation

Population Size

Labour Cost

CountriesCountries

• Inefficiency•Inconsistent Legislation•Corruption

• Harsher penalties •Reduce civil unrest

• ASEAN FTA•Indo-Japan Economic Partnership

• GDP below projected rate•Tax & Disbursement Deficit•High Inflation•Increased Wages

• 237,512,355 People•Unemployment 9.6%•Agriculture 43.3%•Severance 30times salary

•Transportation 8.72%•Rental SGD$(30-250) per month

•“Harmonious Social Development”•Build an “Equal Society” by 2020•Controlled corruption • Free-Trade

Area with SEA

• Improved railway lines & port facilities•Factory size 1200sqm - $7000 per month•Utilities $600 per month

• 3rd Largest Economy•Abolished Agricultural Tax•Improved infrastructure & telecommunications•GDP > 10%

•1.3 Billion People•Growing Population

•Unemployment ↓ 4% to 4.5%•47% agriculture industry

• Deteriorating infrastructure•Competitors strategic investment•High utilities

• Largest Economy•Economic downturn and financial crisis•May recover only after 2010•High inflation

• World Super Power•Growing discontent with President Bush

•Freight ports, airports, bridges, roads, rail and transit networks •Contributed more than $1 for every $10 produced in the GDP

• 303,824,646 People•Serious tensions between races •Presence of

Terrorism

The mechanism behind profit

ConsiderationsConsiderations

Governmental Stability

Security Risk

Economy

Foreign Relations

Knowing Competitors Well

Transportation

Population Size

Competitors Price Level

CountriesCountries

One of the richest countries in Asia

Developed Country

Currency coupled with recent pull-back in price of some key exports, eg: Oil

Corruption Scandals

Illegal loans and bribes paid to governmental

officials

Limited natural resources & limited land

One of the largest markets in European UnionLimited natural

resources

New insights, new dimension

Recap - ProductionRecap - Production

•Political inefficiency and corruption

•Low GDP

•3rd largest economy •Fastest growing nation•Free-trade agreement•Easy access to resources

•Unstable political and economical structure

•Possibility of going into economic recession

ProductionProduction

Recap – Sales & MarketingRecap – Sales & Marketing

Recap – Sales & MarketingRecap – Sales & Marketing

Sales & MarketingSales & Marketing

ConclusionConclusion

Thank you for your time…