China Aviation Oil Singapore Corporation Ltd Fuelling The

China Aviation Oil (Singapore) Corporation Ltd Fuelling The Rapidly Growing China Aviation Industry China Aviation Oil (Singapore) Corporation Ltd 1

Presentation Outline Section 1 Who We are Section 2 Our Unique Business Section 3 Proven Track Record Section 4 Growth Strategy Section 5 Summary Section 6 Issue Statistics China Aviation Oil (Singapore) Corporation Ltd 2

Section 1 Who We Are China Aviation Oil (Singapore) Corporation Ltd 3

Who We Are The Sole Jet Fuel Procurement Arm Of China’s Civil Aviation Industry China Aviation Oil (Singapore) Corporation Ltd 4

Who We Are Business International Trading Jet Fuel Procurement q Jet fuel procurement is low risk and provides steady earning growth q Planned investments will strengthen and grow our business Pudong & HK China Aviation Oil (Singapore) Corporation Ltd q International trading is built up on the jet fuel procurement business 5

Who We Are Milestones 2000 1999 Implemented 1998 Expanded risk manage 1995 Turned regionally ment 1993 Became and loss increased Established the wholly- into owned product as a joint profit portfolio venture in subsidiary Singapore of CAOSC China Aviation Oil (Singapore) Corporation Ltd 6

Section 2 Our Unique Business China Aviation Oil (Singapore) Corporation Ltd 7

Our Unique Business CAO’s Uniqueness Leveraging On the Growing Chinese Aviation Industry Sole Jet Fuel Importer Proposed Acquisition of a Stake in Shanghai Pudong International Airport Aviation Fuel Supply Corporation Ltd. --- the most profitable jet fuel operations in China Aviation Oil (Singapore) Corporation Ltd 8

Our Unique Business Leveraging On the Growing Chinese Aviation Industry Ø GDP will grow at 7% and above, probably exceeds 10% in some years The Macro Picture of China’s Growth - Far East Economic Summit Ø Foreign Reserve will exceed USD 200 bn, Chinese people’s deposit will exceed USD 400 bn in the year of 2002 - Lianhe Zaobao Ø China will overtake Japan and Germany as the second largest trading country by 2012 and will be the largest trading country by 2016 - Lianhe Zaobao Ø China is expected to be the same economic entity as the USA by 2020 - World Bank China Aviation Oil (Singapore) Corporation Ltd 9

Our Unique Business Leveraging On the Growing Chinese Aviation Industry Petroleum Demand Outstrips Supply In The Long-Term China has been a net oil importing country since 1993 12, 000 10, 000 8, 000 6, 000 4, 000 2, 000 0 Production Consumption Source: Energy Information Administration, US (EIA) China Aviation Oil (Singapore) Corporation Ltd 10

Our Unique Business Leveraging On the Growing Chinese Aviation Industry Growing Jet Fuel Import Million MT th row G ual ond nn y % A & Be 16 ted 2000 ec roj From P e t Ra Source: Civil Aviation Administration of China Aviation Oil (Singapore) Corporation Ltd 11

Our Unique Business Leveraging On the Growing Chinese Aviation Industry Domestic Air Travel Growth Demand Is Driven By Domestic Air Travel § Short haul consumes more jet fuel per km § Independent of world trends Source: 1. Boeing Company 2. Lianhe Zaobao China Aviation Oil (Singapore) Corporation Ltd 12 § New order for 30 Boeing a/c Oct 2001 § Expected 500 a/c in the next 5 -7 years

Our Unique Business Leveraging On the Growing Chinese Aviation Industry USA Solid Growth Potential Population (billion) 0. 28 (billion) China 1. 25 (billion) Airport 18, 443 149 Aircraft 219, 646 949 72. 9 (Mil MT) Jet Fuel Consumption 4. 6 (Mil MT) Note: All the figures are as at the end of 1999 Source: Dept. of Transportation of USA, Energy Information Administration of USD and Civil Aviation Administration of China Aviation Oil (Singapore) Corporation Ltd 13

Our Unique Business Sole Jet Fuel Importer Strong Backup from Parent Company (CAOSC) Ø CAO is currently the only wholly-owned overseas subsidiary of CAOSC Ø CAOSC committed not to set up another company to compete with CAO Ø Chairman and other non-executive Directors of CAO are key executives of CAOSC China Aviation Oil (Singapore) Corporation Ltd 14

Our Unique Business Sole Jet Fuel Importer § No Negative Impact China’s Entry Into WTO Has Positive Impact On Our Business - Indonesia is a WTO member earlier than China, its jet fuel supply is controlled by its national oil company - High entry barriers to potential jet fuel suppliers to access to infrastructure - Proven track record as a niche player will be able to withstand foreign competition China Aviation Oil (Singapore) Corporation Ltd 15 § More Benefits - More jet fuel consumption a. Import & export cargo b. Business travel c. Switch from train to aircraft - Lift of import quota will create more demand for overseas jet fuel

Our Unique Business Sole Jet Fuel Importer Parent’s Controlling Position Will Be Likely Maintained v The small volume of current jet fuel consumption is not justified for many players, economic scale is key v Jet fuel is a national strategic resource, we believe that government will pay attention to the supply of jet fuel v Current jet fuel supply infrastructure is complete and systematic, breaking such a system will not create competition, but operational inefficiency v The announcement of merger of CAOSC and CASC imply the emphasis placed by government on the economic scale China Aviation Oil (Singapore) Corporation Ltd 16

Our Unique Business Proposed Acquisition of Pudong Aviation Fuel Corporation q Attractive Business Own the sole jet fuel supplying infrastructure Exclusive right in supplying jet fuel in Pudong International Airport Low maintenance cost and repair expenses q Great Potential Pudong vs Chicago China Aviation Oil (Singapore) Corporation Ltd 17

Section 3 Proven Track Record China Aviation Oil (Singapore) Corporation Ltd 18

Proven Track Record Financial Performance Increasing Profit After Tax S$’ Mil 50 40 45 40 % 84 R AG 35 C 30 25 20 13. 5 15 10 8. 8 6. 4 5 0 1998 China Aviation Oil (Singapore) Corporation Ltd 1999 19 2000 2001 Forecast

Proven Track Record Financial Performance Strong Revenue Growth (Physical Cargo) S$’ Mil 1400 1, 085 5% 1200 8 GR A C 1000 963. 7 800 600 414. 5 400 200 170. 7 0 1998 China Aviation Oil (Singapore) Corporation Ltd 1999 20 2001 Forecast

Proven Track Record Financial Performance Growing Procurement and Trading Volume Million MT 6% 6 GR A C China Aviation Oil (Singapore) Corporation Ltd 21

Proven Track Record Financial Performance • No Gearing • No bad debts • Growing cash position China Aviation Oil (Singapore) Corporation Ltd 22

Section 4 Growth Strategy China Aviation Oil (Singapore) Corporation Ltd 23

Growth Strategy Strategies For Growth Geographical Expansion Jet Fuel Procurement Maintain and increase profit margin USA/Europe New market and end users STRATEGY Investments Fuel facilities and end users -complementary to procurement / trading business China Aviation Oil (Singapore) Corporation Ltd 24

Section 6 Summary China Aviation Oil (Singapore) Corporation Ltd 25

Summary China Sole Importer Pudong China Aviation Oil (Singapore) Corporation Ltd 26

Tan Jeh Wuan, DBS Bank China Aviation Oil (Singapore) Corporation Ltd 27

Summary Issue Statistics Issue size : 144 million New Shares - 10 mln public offer shares - 134 mln placement shares Issue price : S$0. 56 per share Gross Proceeds : S$80. 64 mln Historical PER : 18. 1 Forecast PER : 6. 2 Gross Dividend Yield : 5. 0% China Aviation Oil (Singapore) Corporation Ltd 28

Summary Use of Proceeds Net Proceeds of approximately S$76. 6 million: S$57. 0 million for future expansion through joint ventures and/or strategic investments in China and Hong Kong; S$15. 5 million to acquire companies and/or set up subsidiaries in USA and Europe within the next two years; and S$4. 1 million for working capital China Aviation Oil (Singapore) Corporation Ltd 29

Summary Important Dates Open : 26 th Nov 2001, Monday, 12 noon Close : 4 th Dec 2001, Tuesday, 12 noon Trading : China Aviation Oil (Singapore) Corporation Ltd 6 th Dec 2001, Thursday, 9. 00 a. m. 30

Q&A China Aviation Oil (Singapore) Corporation Ltd 31

China Aviation Oil (Singapore) Corporation Ltd Fuelling The Rapidly Growing China Aviation Industry China Aviation Oil (Singapore) Corporation Ltd 32