1. 2006 Soy 20/20 Annual Update Focus on Soy Soy 20/20 2006 Annual Update Jeff Schmalz Executive Project Director

2. 2006 Soy 20/20 Annual Update lululemon.com

3. 2006 Soy 20/20 Annual Update Cool Threads! Soy clothing made from soy protein fiber is the newest thing in eco-friendly fashion Take leftovers from soybean oil or tofu production, extract protein and spin the fiber into cloth In 2004 in China, soybean fiber sold for $16 per kilo, or roughly $8 a pound, about 20% pricier than wool and on a par with silk Soy-based yarn is today being exported by Chinese companies into North America

4. 2006 Soy 20/20 Annual Update Maintaining Focus A year of change, but momentum maintained Mandate: To stimulate and seize new global bio-science opportunities for Canadian soybeans Vision: Canada's Soybean Industry - Leading in value-added Innovation Market Analysis Opportunity Development Research Coordination

5. 2006 Soy 20/20 Annual Update Creating an Innovation Climate There is no one single market …there are a number of divergent opportunities We analyze real, practical business propositions and provide the insight and environment to move those businesses forward Polyols, next generation beverages, next generation meat analogues, specialty oils, full fat flours --- the innovation climate is pretty good! ~Fostering passionate optimism and realism in the industry~

6. 2006 Soy 20/20 Annual Update results Analyzed over 10 concepts Collective opportunity of over 567,000 acres (polyols…..big!) building networks and establishing relationships to make it happen

7. 2006 Soy 20/20 Annual Update Capturing Opportunities Working with a wide range companies is really important Focusing on key opportunities that have potential to create whole-chain wealth is essential (eg. polyols, food ingredients) Each opportunity is entirely unique The value of the network cannot be understated ~ Committed to achieving real business development ~ Committed to achieving real business development ~

8. 2006 Soy 20/20 Annual Update results Worked with over 25 companies Secured financing Many good companies do not require financing and continue to invest in good ideas, for long term, strategic reasons Estimated future investments being considered by our clients exceed $10MM

9. 2006 Soy 20/20 Annual Update Aligning Research Developing novel traits is essential for us Researchers are building the critical mass, changing mind-set, identifying gaps and working together room exists for truly outside-of-the-box thinking that looks not only at what is being done but what can be done We lead AND we lean on our core and non- traditional researcher communities ~We need to think AND act…ACTION is the key~

10. 2006 Soy 20/20 Annual Update results 8 brand new research projects supported Possible new funding of up to $375,000 Continue to work on 5 strategic projects Building new relationships and supporting our world class personnel

11. 2006 Soy 20/20 Annual Update Future Outlook? Is the glass half empty or is the glass…… Half full?

12. 2006 Soy 20/20 Annual Update So what are the opportunities? OilMeal Edible Oil: Vegetable oil Margarine Ingredients –Lecithin –Sterols –Vitamin E Livestock Feed: Soyfoods: Full flour Tofu Soymilk Soy dairy Soy sauce Okara Bioproducts: Biodiesel Lubricants Plastics Intermediate Chemicals Fatty acids Edible: Ingredients –flour –concentrate –isolate –TVP New foods with soy: Modern meat analogues Nutrition bars/ drinks Cereals Bread and baked goods Pasta Typical uses Advancing uses! Traditional food use Soybeans

13. 2006 Soy 20/20 Annual Update Looking forward Maintain our clear focus Understand soy market opportunities….and seek them out Continue to work on numerous projects, both food and bio product Strive for major new processing investment in Canada

14. 2006 Soy 20/20 Annual Update focused The successful man is the average man, focused. source unknown