Da

ibo

ch

i Pla

stic &

P

ac

ka

gin

g In

du

stry

Be

rha

d

Inv

esto

rs’ Brie

fing

3Q

12

Fina

nc

ial R

esu

lts & C

orp

ora

te U

pd

ate

30

Oc

tob

er 2

01

2

IR A

dv

ise

r

AQ

UIL

AS

•Opera

tional H

ighlig

hts

•Fin

ancia

l Hig

hlig

hts

•FY2012 G

row

th S

trate

gie

s

2

•FY2012 G

row

th S

trate

gie

s

•Appendix

:

»Corp

ora

te P

rofile

»In

dustry

Insig

ht

3Q12 Operatio

nal H

ighlig

hts

3

3Q12 Operatio

nal H

ighlig

hts

•Pack

agin

g segm

ent in

creased sa

les o

rders

from existin

g custo

mers

»Revenue fro

m c

urre

nt A

ustra

lian c

usto

mers

(partic

ula

rly in

stant c

offe

e p

ackagin

g) g

rew

26%

yoy to

RM11.7

millio

n in

3Q12

»3Q12 g

ross m

arg

ins ro

se to

18.2

% (3

Q11: 1

3.8

%)

4

3Q12 Operational Highlights3Q12 Operational Highlights

Gaining tra

ction in

Aussie

-MNC market…

record-high PBT fro

m

improvements in

manufactu

ring processe

s

•Im

provements in

manufactu

ring p

roce

sses

»Record

-hig

h p

ackagin

g P

BT o

f RM9.1

millio

n w

ith

13.9

% m

arg

in (3

Q11: 8

.1%) re

sultin

g fro

m:

-fa

voura

ble

pro

duct m

ix

-fu

rther w

asta

ge c

ontro

l

»3Q12 a

lso b

enefitte

d fro

m lo

wer ra

w m

ate

rial

pric

es c

om

pare

d to

in 3

Q11

3Q12 Operational Highlights3Q12 Operational Highlights

Reven

ue C

AG

R (F

Y04 to

FY

11): 8

.5%

PB

T C

AG

R (0

4-1

1): 2

8.1

%P

AT

MI C

AG

R (0

4-1

1): 3

1.8

%

3Q12

5

3Q12

Financia

l Review

3Q12 to

30.9

.12

2Q12 to

30.6

.12

Change v

s

pre

cedin

g q

trRM'm

il

9m

12 to

30.9

.12

9m

11 to

30.9

.11

Change v

s

pre

v p

erio

d

65.6

670.5

8(7

.0%)

Revenue

204.9

9208.5

3(1

.7%)

11.6

111.2

63.2

%EBITDA

32.5

225.2

528.8

%

9.3

59.0

53.3

%Operatin

g Profit

25.9

819.2

235.2

%

0.1

0(0

.03)

>100%

Share of A

ssociate Resu

lts(0

.03)

(0.3

1)

89.5

%

9.2

58.7

95.2

%Pre-ta

x Profit

25.2

418.0

140.2

%

6.9

06.3

98.1

%Net P

rofit to

Shareholders

18.3

914.1

430.1

%

6.0

68.4

7(2

8.5

%)

Basic

EPS (se

n)

16.2

312.5

429.4

%

6

3Q12 Income Statement3Q12 Income Statement

Commendable 9m12 botto

m lin

e despite

lower co

ntrib

utio

n fro

m

property

segment…

�9m

12 e

arn

ings

aid

ed b

y lo

wer

cost o

f sale

s and

finance c

osts

6.0

68.4

7(2

8.5

%)

Basic

EPS (se

n)

16.2

312.5

429.4

%

17.7

%17.1

%0.5

EBIT

DA m

arg

in15.9

%12.1

%3.8

14.1

%13.4

%0.7

PBT m

arg

in12.3

%8.6

%3.7

10.5

%9.7

%0.8

Net m

arg

in9.0

%6.8

%2.2

3Q12 Income Statement3Q12 Income Statement

(3.0

%)

+53.3

%

7Packaging Revenue & PBT TrendPackaging Revenue & PBT Trend

Improved packaging margins o

n fa

vourable product m

ix and

wasta

ge co

ntro

l…

3Q12 to

30.9

.12

2Q12 to

30.6

.12

Change v

s

pre

cedin

g q

tr

PACKAGING SEGMENT

(RM'm

il)9m

12 to

30.9

.12

9m

11 to

30.9

.11

Change v

s

pre

vio

us q

tr

65.1

269.0

2(5

.6%)

Revenue

202.9

0194.3

34.4

%

11.5

010.6

28.3

%EBITDA

31.8

721.9

745.0

%

9.2

48.4

29.8

%Operatin

g Profit

25.3

315.9

458.9

%

9.0

58.1

910.5

%Pre-ta

x Profit

24.6

215.0

463.7

%

17.7

%15.4

%2.3

EBIT

DA m

arg

in15.7

%11.3

%4.4

13.9

%11.9

%2.0

PBT m

arg

in12.1

%7.7

%4.4

Packaging Revenue & PBT TrendPackaging Revenue & PBT Trend

+4.6

%+

92.0

%

8

3Q12 Balance Sheet (Highlights)3Q12 Balance Sheet (Highlights)

Health

y balance sh

eet w

ith net g

earin

g with

in co

mforta

ble ra

nge…

RM

’ mil

As

at

30

.9.1

2(U

na

ud

ited

)

As

at

31

.12

.11

(Au

dite

d)

Fix

ed

asse

ts (e

xcl a

sso

cia

te in

ve

stm

en

t & d

efe

rred

tax)

90

.10

83

.21

Asso

cia

te in

ve

stm

en

t 2

2.9

72

3.0

1

Cu

rren

t asse

ts

11

6.1

51

21

.80

RM14.6

mil C

APEX

to d

ate

larg

ely

financed b

y in

tern

al

funds; R

M5.7

mil

CAPEX in

curre

d in

3Q12 fo

r dry

lam

inato

r (RM3m

il),

3Q12 Balance Sheet (Highlights)3Q12 Balance Sheet (Highlights)

Cu

rren

t liab

ilities

62

.03

70

.43

Sh

are

ho

lde

rs’ e

qu

ity1

50

.49

14

0.2

To

tal b

orro

win

gs

28

.66

35

.54

Ca

sh

& B

an

k B

ala

nce

s1

0.8

11

0.4

1

Ne

t ge

arin

g0

.12

x0

.18

x

Re

turn

on

Ave

rag

e S

ha

reh

old

ers

Eq

uity

16

.9%

*1

4.8

%

Re

turn

on

Ave

rag

e T

ota

l Asse

ts1

0.7

%*

9.1

%

* Annualis

ed

lam

inato

r (RM3m

il),

oth

er e

quip

ment

(RM1.7

mil), a

nd

renovatio

n fo

r

cle

anro

om

(RM1 m

il)

Impro

ved n

et

gearin

g fro

m

reduced b

orro

win

gs

and h

igher

share

hold

ers’ fu

nds

9Dividend HistoryDividend History

On tra

ck to

adhere to

dividend policy

to distrib

ute 60% of

net p

rofits a

s dividends…

•3rd

interim

dividendof 3

.5 se

nper sh

are

in re

spect o

f FY2012

(am

ountin

g to

RM4.0

mil) to

be p

aid

on 7

Dec 2

012

•Dividends in

respect o

f FY2012

Dividend HistoryDividend History

»1

stin

terim

tax e

xem

pt d

ivid

end o

f

3.5

sen/sh

are

(paid

on 8

Jun 2

012)

-Adju

sted D

PS: 2

.3 se

n

»2

nd

inte

rim ta

x e

xem

pt d

ivid

end o

f

6.0

sen/sh

are

(paid

on 7

Sep 2

012)

-Adju

sted D

PS: 4

.0 se

n

* Adju

ste

d fo

r 1-fo

r-2 B

onus Is

sue, e

ffectiv

e 1

0 S

epte

mber 2

012

10

PROSPECTS AND PLANS

Strength

en co

llaboratio

ns w

ith M

NCs

in F

&B a

nd F

MCG se

cto

rs to d

evelo

p th

e

next g

enera

tion o

f ultra

hig

h b

arrie

r films

Contin

ue te

sting a

nd ce

rtificatio

ns fo

r new se

ctors

11

Poise

d fo

r record earnings in

FY2012…

FY2012 Growth StrategiesFY2012 Growth Strategies

Contin

ue te

sting a

nd ce

rtificatio

ns fo

r new se

ctors

(Medic

al a

nd E

&E c

om

panie

s locally

and re

gio

nally

)

Furth

er fa

cility and m

ach

inery expansio

n

to c

ate

r to n

ew

clie

nte

le

FY2012 Growth StrategiesFY2012 Growth Strategies

12

Affo

rdable exposure in

to expanding global F

&B and FMCG se

ctors…

underpinned by decent d

ividend yield of 5

%

ValuationsValuations

Sh

are

Pric

e @

24

-Oct

RM

2.6

1

Ma

rke

t Ca

p @

24

-Oct

RM

29

7.2

mil

His

toric

al P

E1

4.8

x

ValuationsValuations

An

nu

alis

ed

PE

12

.1 x

An

nu

alis

ed

EV

/ EB

ITD

A7

.3 x

His

toric

alD

ivid

en

d Y

ield

13

.4%

FY

12

Div

ide

nd Y

ield

25

.0%

1B

ased o

n a

dju

ste

d d

ivid

end p

er s

hare

of 9

.0 s

en, p

ost 1

-for-2

Bonus Is

sue

2B

ased o

n a

dju

ste

d d

ivid

end p

er s

hare

and a

ssum

ing 6

0%

div

idend p

ayout o

f

annualis

ed

earn

ings

THANK YOU

13

THANK YOU

Bursa

: DAIBOCI/8125

Bloomberg: D

PP:M

KReute

rs: DPPM.K

L

IR Contacts:

Thomas L

imE: to

mlim

@daibochiplastic.c

om

T: 0

6-231 9779

Julia

Pong

E: ju

lia@aquila

s.com.m

yT: 0

12-3909 258

APPENDIX

14

APPENDIX

CORPORATE PROFILE

15

CORPORATE PROFILE

The LARGEST

supplie

r of p

ack

agin

g in SE

AThe LARGEST

supplie

r of p

ack

agin

g in SE

A

16

Daibochi, a

resilie

nt in

vestm

ent ca

se…

Track RecordTrack Record

The SO

LE su

pplie

r to C

hembong C

onfectio

nery

The SO

LE su

pplie

r to C

hembong C

onfectio

nery

Facto

ry in

M’sia

Facto

ry in

M’sia

Supplie

r of >

90% of ’s fle

xible packa

ging in

M’sia

Supplie

r of >

90% of ’s fle

xible packa

ging in

M’sia

Track RecordTrack Record

Supplie

r of >

90% of ’s fle

xible packa

ging in

M’sia

Supplie

r of >

90% of ’s fle

xible packa

ging in

M’sia

The SO

LE su

pplie

r of

The SO

LE su

pplie

r of

biscu

its in M

’siabiscu

its in M

’siaOth

er im

porta

nt c

usto

mers:

�Liste

d sin

ce 1990, n

ow on M

ain M

arket o

f Bursa

M’sia

�Market ca

p of R

M297.2 m

il (24.10.12)

�Dividend policy

of p

aying m

inim

um 60% of a

nnual n

et p

rofit to

shareholders, o

n a quarte

rly basis

DA

IBO

CH

I PL

AS

TIC

& P

AC

KA

GIN

G IN

DU

ST

RY

BE

RH

AD

Lis

ted

Main

Mark

et, B

urs

a M

ala

ysia

sin

ce 1

990

(Tra

nsfe

rred fro

m S

econd B

oard

in 2

003)

Secto

rIn

dustria

l Pro

ducts

17

Liste

d sin

ce 1990…

Corporate InformationCorporate Information

Secto

rIn

dustria

l Pro

ducts

Codes

Burs

a: 8

125 / D

AIB

OC

I

Blo

om

berg

: DP

P:M

K

Reute

rs: D

PP

M.K

L

Share

Capita

lR

M113.9

mil (1

13.8

53 m

il share

s o

f RM

1.0

0 e

ach)

Mark

et C

apita

lizatio

nR

M297.2

mil (R

M2.6

1 a

s a

t 24 O

cto

ber 2

012)

Corporate InformationCorporate InformationCorporate ProfileCorporate Profile

18

Leading fle

xible packaging so

lutio

ns p

rovider, w

ith enviable

reputatio

n exceeding 35 years…

20

09

-A

cq

uire

d 9

thp

rintin

g m

ach

ine

; Ob

tain

ed

HA

LA

L C

ertific

atio

n;

20

08

–A

cq

uire

d w

ide

we

b p

oly

pro

pyle

ne

film m

akin

g m

ach

ine

20

07

-R

ece

ive

d G

old

Aw

ard

for th

e C

olo

rpa

kP

acka

gin

g

Exp

ort A

wa

rd a

t Au

stra

lian

Pa

cka

gin

g A

wa

rds

20

04

–A

cq

uire

d M

’sia

’s 1

st5

-laye

r-blo

wn

film m

ach

ine

to

pro

du

ce

tran

sp

are

nt b

arrie

r films

Re

gio

na

l su

pp

lier fo

r BA

T

20

10

–O

bta

ine

d L

ette

r of V

alid

atio

n fro

m U

SA

for e

lectro

nic

pa

cka

gin

g

20

11

–A

cq

uire

d h

igh

-sp

ee

d p

rintin

g m

ach

ine

; Acq

uire

d m

eta

llize

rto

pro

du

ce

ultra

hig

h b

arrie

r films;

Accre

dite

d w

ith IS

O:1

40

01

20

12

–S

et u

p C

lea

nro

om

for b

ag

gin

g p

roce

ss

Corporate ProfileCorporate Profile

19

94

–A

cq

uire

d fa

ste

st e

xtru

sio

n la

min

ato

r in S

EA

19

96

-M

ove

d to

cu

rren

t pre

mis

es w

ith >

32

5,0

00

sq

ft bu

ilt-up

are

a

20

01

–In

co

rpo

rate

d A

ustra

lian

su

bsid

iary

; Accre

dite

d w

ith IS

O:9

00

1

19

99

–S

up

plie

r to N

estle

M’s

ia

20

02

–A

cq

uire

d m

eta

llize

r with

Pla

sm

a T

ech

to p

rod

uce

hig

h-b

arrie

r films;

Re

gio

na

l Su

pp

lier to

Ne

stle

in S

EA

20

03

–T

ran

sfe

r to M

ain

Bo

ard

(no

w M

ain

Ma

rke

t); Accre

dite

d w

ith H

AC

CP

19

90

–A

cq

uire

d m

eta

llize

rto

pro

du

ce

in-h

ou

se

me

taliz

ed

films; L

iste

d o

n 2

nd

Bo

ard

of K

LS

E (B

urs

a M

’sia

)

19

87

–A

cq

uire

d p

oly

pro

pyle

ne

film-m

akin

g m

ach

ine

to p

rod

uce

in-h

ou

se

films

19

84

–S

tarte

d in

-ho

use

prin

ting

cylin

de

r ma

kin

g

19

72

–E

sta

blis

he

d in

Me

laka

with

10

,00

0 s

q ft p

lan

t; Mo

ve

d to

larg

er p

rem

ise

s w

ith 1

65

,52

7 s

q ft

Corporate Profile (con’t)Corporate Profile (con’t)

••Accre

dite

d and w

orld

Accre

dite

d and w

orld

--class

class

productio

n fa

cilities

productio

n fa

cilities

»Atta

ined ISO

:9001

and ISO

:14001

certific

atio

ns

»Hazard

Analy

sis Critic

al C

ontro

l Poin

ts

(HACCP) c

om

plia

nt to

ensu

re

19

Internatio

nally

-certifie

d productio

n fa

cilities th

at co

mply

with

all fa

ctory audits b

y our M

NC clie

ntele…

Corporate Profile (con’t)Corporate Profile (con’t)

(HACCP) c

om

plia

nt to

ensu

re

adhere

nce to

food sa

fety

require

ments

••Well

Well--e

quipped la

boratory te

sting

equipped la

boratory te

sting

facilitie

sfacilitie

s»

To e

nsu

re o

ur p

roducts e

xceed c

usto

mers’

pack

aging barrie

r (MVTR A

STM F

1249, O

2TR

ASTM D

3895-3

5), re

tentio

n(G

C w

ith

Headsp

ace) a

nd m

igra

tion

(COF A

STM

D1894) re

quire

ments.

20

Production FacilitiesProduction Facilities

Integrated end-to

-end packaging process…

equipped with

specia

lized in

-house ca

pabilitie

s

Th

e o

nly

pla

ye

r with

in-h

ou

se

cylin

de

r-ma

kin

g, a

nd

on

e o

f the

few

with

me

talliz

ing

an

d

se

alin

g c

ap

abilitie

s fo

r qu

ality

assu

ran

ce

an

d c

on

sta

nt im

pro

ve

me

nt a

t ke

y s

tag

es

Production FacilitiesProduction Facilities

Pre

pre

ss

Pre

pre

ss

Cylin

de

r C

ylin

de

r M

ak

ing

Ma

kin

gG

ravu

re

Gra

vu

re

Prin

ting

Prin

ting

La

min

atio

n

La

min

atio

n

(Ex

trus

ion

/ (E

xtru

sio

n /

Dry

)D

ry)

Slittin

g /

Slittin

g /

Ba

gg

ing

Ba

gg

ing

CP

P F

ilmM

eta

llize

r

Up to

9-c

olo

ur 2

-sid

ed p

rintin

gIn

-house c

apabilitie

sS

olv

ent-b

ase

d/fre

eC

apabilitie

s in

cl S

tandin

g P

ouch

To b

uild

hig

h b

arrie

rsP

olyp

rop

yle

ne s

ealin

g film

s

21

Daibochi ProductsDaibochi Products

Wide ra

nge of p

ackaging so

lutio

ns fo

r vario

us p

roduct

functio

ns…

Consta

ntly

innovatin

g fo

r changing re

quire

ments

Film

Typ

eA

pp

lica

tion

s / U

se

Hig

h P

erm

ea

bility

Ba

rrier / P

erfo

rma

nc

eC

offe

e, N

uts

, Po

tato

Ch

ips

Co

st E

ffec

tive

Ba

rrier

Sn

acks, B

iscu

its, W

afe

r, Ch

oco

late

, C

ake

s

Daibochi ProductsDaibochi Products

Ca

ke

s

Ge

ne

ral P

ac

ka

gin

gO

ute

r Pa

ck, N

oo

dle

s, B

iscu

its, W

afe

rs

Sp

ec

ialty

Ap

plic

atio

nL

ab

ellin

g, Ic

e-c

rea

m, F

roze

n F

oo

d,

Ce

rea

l Pe

el S

ea

l, Se

aso

nin

g O

il, P

ow

de

r / Liq

uid

De

terg

en

t, S

ho

we

r Fo

am

, To

ba

cco

, Pe

t foo

d

Customer BaseCustomer Base

Diversifie

d clie

ntele of le

ading brands…

2

2

Fo

od

Be

ve

rag

eF

MC

GS

pe

cia

lty

Customer BaseCustomer Base

23

Key ManagementKey Management

Experie

nced management w

ith in

dustry

expertise

…

Th

om

as

Lim

So

o K

oo

n, M

an

ag

ing

Dire

cto

r

-H

old

s a

degre

e in

Bachelo

r of S

cie

nce In

dustria

l Engin

eerin

g a

nd M

anagem

ent fro

m O

kla

hom

a S

tate

Univ

ers

ity, &

Maste

r of B

usin

ess A

dm

inis

tratio

n d

egre

e fro

m O

kla

hom

a S

tate

Univ

ers

ity.

-Join

ed D

aib

ochi in

1995, a

nd w

as a

ppoin

ted a

s M

anagin

g D

irecto

r in F

ebru

ary

2005.

-P

layed a

key ro

le in

build

ing G

roup’s

MN

C c

liente

le.

Da

tuk

Wo

ng

So

on

Lim

, Ex

ec

utiv

e D

irec

tor

-A

n a

ccounta

nt b

y tra

inin

g a

nd a

mem

ber o

f the M

ala

ysia

n A

ssocia

tion o

f the In

stitu

te o

f Charte

red S

ecre

tarie

s a

nd

Key ManagementKey Management

-A

n a

ccounta

nt b

y tra

inin

g a

nd a

mem

ber o

f the M

ala

ysia

n A

ssocia

tion o

f the In

stitu

te o

f Charte

red S

ecre

tarie

s a

nd

Adm

inis

trato

rs.

-H

as a

n e

xte

nsiv

e e

xperie

nce a

nd k

now

ledge in

the fie

ld o

f accountin

g, fin

ance, c

onsulta

ncy, c

orp

ora

te fin

ance,

manufa

ctu

ring a

nd p

roperty

develo

pm

ent. In

stru

menta

l in lis

ting o

f the C

om

pany.

Lo

w C

ha

n T

ian

, Ex

ec

utiv

e D

irec

tor

-H

old

s a

degre

e in

Bachelo

r of E

ngin

eerin

g fro

m th

e U

niv

ers

ity o

f Weste

rn A

ustra

lia.

-H

as w

ide e

xperie

nce in

manufa

ctu

ring, p

roperty

develo

pm

ent, b

usin

ess a

nd fin

ance.

Lo

w J

in W

ei, E

xe

cu

tive

Dire

cto

r

-H

old

s a

degre

e in

Bachelo

r of C

om

merc

e (M

ajo

r in F

inance &

Mark

etin

g) fro

m U

niv

ers

ity o

f Sydney, N

SW

, Austra

lia.

-P

rior to

this

, Mr. L

ow

was th

e M

anagin

g D

irecto

r / Pro

ject D

irecto

r of G

lassK

ote

(Mala

ysia

) Sdn B

hd fro

m 2

005 to

Septe

mber 2

010.

24

Major ShareholdersMajor Shareholders

Growing in

stitutio

nal fo

llowing… Free flo

at re

tained at >

50%

No. o

f shares (‘m

il)(3

0.9

.2012)

Perce

ntage

*

Low

Chan T

ian, E

D10.1

08.9

%

Datu

k W

ong S

oon L

im, E

D7.5

46.6

%

Major ShareholdersMajor Shareholders

Lim

Koy P

eng

8.6

27.6

%

* Exclu

din

g 1

68

,80

0 s

ha

res b

ou

gh

t ba

ck b

y th

e C

om

pa

ny a

nd

reta

ine

d a

s tre

asu

ry s

ha

res

INDUSTRY IN

SIGHT

25

INDUSTRY IN

SIGHT

••Flexible pack

agin

g market, w

orth

Flexible pack

agin

g market, w

orth

$58.3 bil in

2011, e

stimated to

$58.3 bil in

2011, e

stimated to

reach

$71.3 bil in

2016

reach

$71.3 bil in

2016*

»Favoure

d fo

r its versa

tility, c

om

para

tive

low

cost a

nd p

ote

ntia

l for in

novatio

n.

26

Industry InsightIndustry Insight

Growth in

flexible packaging to

be led by th

e Asia

n re

gion…

Global co

nsumer fle

xible packa

ging

consumptio

n by re

gion, 2

011

(% sh

are

by v

olu

me)

••Asia

: the la

rgest a

nd fa

stest

Asia

: the la

rgest a

nd fa

stest--

growing fle

xible pack

agin

g market

growing fle

xible pack

agin

g market

»Repre

sente

d 2

9.1

% o

f glo

bal m

ark

et

volu

me

»Fore

cast C

AGR o

f 7.9

% fo

r 2011 to

2016;

becom

ing o

ne o

f the fa

stest g

row

ing

mark

ets in

the re

gio

n; le

d b

y In

dia

and

Chin

a in

line w

ith th

eir d

evelo

pin

g

econom

ies

Industry InsightIndustry Insight

*S

ou

rce

: “Th

e F

utu

re o

f Glo

ba

l Fle

xib

le P

acka

gin

g to

20

16

” by P

ira In

tern

atio

na

l