1. Enzymes, Animal feed and Waste reduction Peter Natkanski

2. Agribusiness: a large, global industry Global market 2002: $ 41+ bn Source: Phillips McDougall, The Context Network, Syngenta Conventional Seeds ($bn 13) Crop Protection ($bn 25) GM Seeds ($bn 3)

3. Industry consolidation Novartis Syngenta Monsanto DuPont BASF Bayer Dow Ciba Sandoz Zeneca ISK Biosciences Monsanto DuPont Shell Cyanamid BASF Bayer Rhone-Poulenc Hoechst Schering Dow Rohm & Haas Aventis Merck AHP 1992199319941995199619971998199920002001

4. 2002 Sales of Major Agribusiness Companies *Estimated after EU divestments of ~ Euro 700 m Syngenta Bayer CropScience* MonsantoDuPontBASFDow Crop Protection Seeds and Traits $m Source: Phillips McDougall & Annual Reports

5. Non-selective Herbicides Professional Products Selective Herbicides Field Crops Insecticides Fungicides Vegetables & Flowers 9% 22% 15% 9% 8% 26% Crop Protection Seeds (84%) (16%) Sales 2003 $m 6578 Product Lines 10%

6. Strategy … the next three years Enhance leadership Crop Protection Seeds: field crops, traits Agri markets Animal feed Capture opportunity Biopharma Crop processing Fresh produce New markets Drive for growth Seeds: flowers Seeds: vegetables Professional products Consumer driven markets

7. Strategy … the next three years Enhance leadership Crop Protection Seeds: field crops, traits Agri markets Animal feed Capture opportunity Biopharma Crop processing Fresh produce New markets Drive for growth Seeds: flowers Seeds: vegetables Professional products Consumer driven markets

8. Whole Foods Golden Rice –Product concept: GM rice with elevated levels of B-Carotene which converts to vitamin A in the body; antioxidant properties of carotenoids –Value capture: transfer Syngneta Golden Rice to Humanitarian Board for licensing to third world institutes –Beneficial consumer output trait for third world countries

9. Collaborations with 400 institutions and companies worldwide UC Berkeley Clemson University University of NC at Chapel Hill Pohang University NC State University Boyce Thompson/ Cornell Centrum voor Planten- veredlings - en Reproductieonderzoek Myriad Diversa Maxygen Advanta Wealth of collaborations & partnerships Attractive as research partner Collaboration recognized as core value Outsourcing culture Proximity to centers of scientific excellence University of Nevada Oxford University Washington State University Vienna University The Scripps Research Institute Incyte Danisco Discovery Technologies Universities Privatecompanies Researchinstitutes

10. Phosphorus and the animal diet Phosphorus vitally important for bone and tissue growth Phosphorus (organic) stored in phytate and found in corn and soybean oil – animal feeds Phytic acid not readily digestible by monogastric animals Must add supplementary mineral phosphorus Expensive, replaces other valuable nutrients,increases phosphorus in waste, causes pollution.

11. Phytate (myo-inositol hexaphosphate) is the principal storage form of phosphorus in plant seeds Considered an anti-nutrient -Chelates essential dietary minerals such as calcium, iron, copper, and zinc Phosphorus in phytate is nutritionally unavailable to monogastric animals To provide adequate dietary phosphorus to animals, inorganic phosphates are added to formulated animal feeds Phytate

12. Adding Phosphate to Feed Costs $ and Causes Pollution 80+ million tons inorganic Phos @ $1-2/ton 600 000 metric tons of Phos waste = Environmental Cost Many countries are beginning to regulate animal production based upon amounts of Phos in animal waste

13. H OH H OH H OH H OH H OH H OH Phytase Inositol Phytate An enzyme that removes Phos from phytate An enzyme that removes Phos from phytate Used widely in the feed of monogastric animals to allow animals to utilize the Phos contained naturally in feed components (corn, wheat, soy) Used widely in the feed of monogastric animals to allow animals to utilize the Phos contained naturally in feed components (corn, wheat, soy) Use allows reduction of inorganic forms of Phos in feed Use allows reduction of inorganic forms of Phos in feed Reduces Phos in animal waste – positive environmental impact Reduces Phos in animal waste – positive environmental impact 6 PO 4

14. Current Phytase Market Most widely accepted feed enzyme; recognized efficacy Most widely accepted feed enzyme; recognized efficacy Increases animal performance on low Phos diets; reduces need for inorganic Phos Increases animal performance on low Phos diets; reduces need for inorganic Phos Fastest growing segment of feed enzyme market Fastest growing segment of feed enzyme market Limitations in price/performance of current products will cap ultimate market penetration and growth Limitations in price/performance of current products will cap ultimate market penetration and growth >$120M globally with the potential to grow to >$350M >$120M globally with the potential to grow to >$350M

15. Limitations of conventional phytases Animal feed is commonly formed into pellets, a manufacturing process that requires moisture and heat. Most phytases are unstable under normal temperature pelleting conditions and must be applied either with a protective coating before pelleting or post-pelleting by liquid application. Can result in sub-optimal feed and inconsistent animal performance.

16. Why Thermotolerance? Feed Ingredients Steam (90° C) Pellet Formation Cool Mixing High Capital Cost

17. Syngenta and Diversa - a unique collaboration  Started in 1999 through Zymetrics for feed and agricultural processing applications  Expanded in December 2002 to include more nutrition, processing and biopharmaceutical applications  Combines world-class gene discovery, optimization, plant biotechnology  35+ scientists devoted to Zymetrics R&D Organized to deliver a pipeline of high-value animal nutrition products

18. Commercial status  Sales in Mexico since January 2004  Sales in Brazil beginning August 2004  Approval pending in the USA  Registration application made in EU for broilers  Registration in other countries in progress In the warehouse with first shipment of Quantum Phytase: Miloud Araba (Zymetrics), Ruben Bustos (Zymetrics), Plant Manager for Nutriba (first customer)