1

Daibochi Plastic & Packaging Industry

Berhad

Investors’ Briefing

1H11 Financial Results & Corporate Update

9 August 2011

IR Adviser

AQUILAS

• 1H11 Operational Highlights

• 1H11 Financial Review

• 2H11 Prospects and Plans

2

2

1H11 Operational Highlights

3

• 2Q11 revenue increased 20%, attributable equally to packaging and property segments » Packaging segment sales increased by RM5.8 mil or

9.6% to RM67.0 mil (2Q10: RM61.2 mil)

» Property segment contributed RM6.2 mil (2Q10: nil)

• Fluctuating raw material prices in 2Q11, but stable trend for the time being» Sharp spike in raw material prices (resin, solvent and

ink) in April 2011 eased off in May – June 2011, from

resumption of supply chain after Japan earthquake

PET prices stabilized in 1Q11, but PE, PP and OPP

resumed uptrend

» 2Q11 net profit increased to RM5.0 mil (2Q10: 4.2 mil)

4

1H

11

Op

era

tio

na

l H

igh

ligh

ts1

H1

1 O

pera

tio

na

l H

igh

ligh

ts

Packaging segment expanded further while property division recognized more sales…

Revenue CAGR (FY04 to FY10): 8.9%

PBT CAGR (04-10): 32.2%

PATMI CAGR (04-10): 35.8%

3

1H11 Financial Review

5

6

1H

11

In

com

e S

tate

men

t1

H1

1 I

nco

me S

tate

men

t

Margins compressed by higher costs… 2H to be better from positive demand & firmer prices

• 1H11 margin

compression from

higher cost of

raw materials

compared to 1H10

55.8

55.8

57.6

57.6

53.8

53.8

54.6

54.6

59.7

59.7

61.2

61.2

71.4

71.4

75.5

75.5

67.7

67.7

73.2

73.2

20.0

40.0

60.0

80.0

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Quarterly Revenue (RM ‘mil)

+19.6%

5.0

5.0

5.8

5.8

5.9

5.9

6.1

6.1

5.0

5.0

4.2

4.2

4.8

4.8

4.2

4.2

4.6

4.6

5.0

5.0

0.0

2.0

4.0

6.0

8.0

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Quarterly PATMI (RM ‘mil)

+18.8%

2Q11 to

30.6.11

2Q10 to

30.6.10

Change vs

previous qtr RM'mil

1H11 to

30.6.11

1H10 to

30.6.10

Change vs

previous qtr

73.19 61.17 19.6% Revenue 140.86 120.86 16.5%

8.46 7.90 7.1% EBITDA 16.33 16.12 1.3%

7.06 5.95 18.7% Operating Profit 13.34 12.56 6.2%

(0.13) (0.01) n.m. Share of Associates (0.23) (0.10) n.m.

6.62 5.71 16.0% Pre-tax Profit 12.51 12.06 3.7%

4.98 4.19 18.8% Net Profit to Shareholders 9.62 9.21 4.5%

6.64 5.59 18.8% Basic EPS (sen) 12.84 12.28 4.6%

11.6% 12.9% (1.4) EBITDA margin 11.6% 13.3% (1.7)

9.0% 9.3% (0.3) PBT margin 8.9% 10.0% (1.1)

6.8% 6.8% (0.1) Net margin 6.8% 7.6% (0.8)

4

7

1H

11

Ba

lan

ce S

heet

(Hig

hli

gh

ts)

1H

11

Ba

lan

ce S

heet

(Hig

hli

gh

ts)

Capacity expansion during 1H11, with RM4 million investment in new printing machine…

RM’ mil As at 30.6.11

(Unaudited)

As at 31.12.10(Audited)

Fixed assets (excl associate investment) 71.08 66.21

Associate investment 22.85 23.08

Current assets 127.00 122.72

Current liabilities 70.49 69.26

Shareholders’ equity 136.80 131.47

Total borrowings 39.59 29.53

Cash & Bank Balances 13.22 6.30

Net gearing 0.19 x 0.18 x

Return on Average Shareholders Equity 14.4%* 14.3%

Return on Average Total Assets 8.9%* 9.1%

� Additional printing

machine

commissioned in

2Q11

� Higher borrowings

to finance higher

working capital

from larger volume

of sales orders

8

Div

iden

d H

isto

ryD

ivid

en

d H

isto

ry

2nd interim tax exempt dividend of 3.5 sen/share payable on 14 September 2011, translating to 51% payout…

2.02.0 2.02.0 4.04.0 6.06.0 6.06.0 15.515.5 12.512.5 6.56.50.0

4.0

8.0

12.0

16.0

2004 2005 2006 2007 2008 2009 2010 1H11

sen Dividend Payout (sen)

1.52 1.52 3.04 4.55 4.55 11.67 9.38 4.88

52.3%

73.8%

55.9% 52.4% 55.8% 51.3% 51.6% 50.7%

0.0%

25.0%

50.0%

75.0%

100.0%

0.00

3.00

6.00

9.00

12.00

2004 2005 2006 2007 2008 2009 2010 1H11

%RM ‘mil Dividend Payout

Dividend Payout (RM 'mil) Payout Ratio

5

2H PROSPECTS AND PLANS

9

10

Gro

wth

Str

ate

gie

sG

row

th S

tra

tegie

s

Continuing to work on new ventures and customers…

• Exploring innovative packaging with clients

Expanding Expanding scope for scope for existing existing

customerscustomers

• Actively seeking potential customers across the region

Increasing MNC Increasing MNC clienteleclientele

• Adhering to pre-qualification stages for ESD packaging; targeting initial contributions in FY2012

Making progress Making progress on new on new venturesventures

6

THANK YOUBursa: DAIBOCI/8125 Bloomberg: DPP:MK Reuters: DPPM.KL

11

IR Contacts:

Thomas Lim E: tomlim@daibochiplastic.com T: 06-231 9779

Julia Pong E: julia@aquilas.com.my T: 012-3909 258

APPENDIX

12

7

CORPORATE PROFILE

13

The LARGEST supplier of packaging in SEAThe LARGEST supplier of packaging in SEA

14

Daibochi, a resilient investment case…

Tra

ck R

eco

rdT

rack

Reco

rd The SOLE supplier toThe SOLE supplier to ChembongChembong Confectionery Confectionery Factory in Factory in M’siaM’sia

Supplier of Supplier of >90% of ’s flexible packaging in >90% of ’s flexible packaging in M’siaM’sia

The SOLE supplier of Kraft / biscuits in The SOLE supplier of Kraft / biscuits in M’siaM’siaOther important customers:

� Listed since 1990, now on Main Market of Bursa M’sia

� Market cap of RM212.5 mil (9.5.11)

� Dividend policy of paying minimum 50% of net profit to shareholders

8

DAIBOCHI PLASTIC & PACKAGING INDUSTRY BERHAD

ListedMain Market, Bursa Malaysia since 1990(Transferred from Second Board in 2003)

Sector Industrial Products

CodesBursa: 8125 / DAIBOCIBloomberg: DPP:MKReuters: DPPM.KL

Share Capital RM75.9 mil (75.902 mil shares of RM1 each)

Market Capitalization RM219.36 mil (RM2.89 as at 1 Aug 2011)

15

Listed since 1990…

Co

rpo

rate

In

form

ati

on

Co

rpo

rate

In

form

ati

on

Co

rpo

rate

Pro

file

Co

rpo

rate

Pro

file

16

Leading flexible packaging solutions provider, with enviable reputation exceeding 35 years…

1994 – Acquired fastest extrusion laminator in SEA

1996 - Moved to current premises with >325,000 sq ft built-up area

2001 – Incorporated Australian subsidiary; Accredited with ISO:9001

2009 - Acquired 9th printing machine; Obtained HALAL Certification;

1999 – Supplier to Nestle M’sia

2002 – Acquired metallizer with Plasma Tech to produce high-barrier films;

Regional Supplier to Nestle in SEA

2008 – Acquired wide web polypropylene film making machine

2007 - Received Gold Award for the Colorpak Packaging Export Award at Australian Packaging Awards

2004 – Acquired M’sia’s 1st 5-layer-blown film machine to produce transparent barrier films

2003 – Transfer to Main Board (now Main Market); Accredited with HACCP

1990 – Acquired metallizer to produce in-house metalized films; Listed on 2nd Board of KLSE (Bursa M’sia)

1987 – Acquired polypropylene film-making machine to produce in-house films

1984 – Started in-house printing cylinder making

1972 – Established in Melaka with 10,000 sq ft plant; Moved to larger premises with 165,527 sq ft

Regional supplier for BAT

2010 – Obtained Letter of Validation from USA for electronic packaging

9

Co

rpo

rate

Pro

file

(C

orp

ora

te P

rofi

le (

con

’tco

n’t

))

•• Accredited and worldAccredited and world--class class production facilitiesproduction facilities» Attained ISO:9001 certification

» Hazard Analysis Critical Control Points

(HACCP) compliant to ensure

adherence to food safety requirements

» Obtained HALAL certification

•• WellWell--equipped laboratory testing equipped laboratory testing facilitiesfacilities» To ensure our products exceed customers’

packaging barrier (MVTR ASTM F1249, O2TR

ASTM D3895-35), retention (GC with

Headspace) and migration (COF ASTM

D1894) requirements.

17

Internationally-certified production facilities that comply with all factory audits by our MNC clientele…

18

Pro

duct

ion

Fa

cili

ties

Pro

duct

ion

Fa

cili

ties

Integrated end-to-end packaging process… equipped with specialized in-house capabilities

PrepressPrepressCylinder Cylinder MakingMaking

Gravure Gravure PrintingPrinting

Lamination Lamination (Extrusion / (Extrusion /

Dry)Dry)

Slitting / Slitting / BaggingBagging

CPP Film Metallizer

Up to 9-colour 2-sided printingIn-house capabilities Solvent-based/free Capabilities incl Standing Pouch

The only player with in-house cylinder-making, and one of the few with metallizing and sealing capabilities for quality assurance and constant improvement at key stages

To build high barriersPolypropylene sealing films

10

19

Da

ibo

chi

Pro

duct

sD

aib

och

i P

rod

uct

s

Wide range of packaging solutions for various product functions… Constantly innovating for changing requirements

Film Type Applications / Use

High Permeability Barrier / Performance Coffee, Nuts, Potato Chips

Cost Effective Barrier Snacks, Biscuits, Wafer, Chocolate, Cakes

General Packaging Outer Pack, Noodles, Biscuits, Wafers

Specialty Application Labelling, Ice-cream, Frozen Food, Cereal Peel Seal, Seasoning Oil, Powder / Liquid Detergent,

Shower Foam, Tobacco, Pet food

Food Beverage FMCG Specialty

Cust

om

er

Ba

seC

ust

om

er

Ba

se

Diversified clientele of leading brands… 20

11

21

Key

Ma

na

gem

en

tK

ey

Ma

na

gem

en

t

Experienced management with industry expertise…

Thomas Lim Soo Koon, Managing Director

- Holds a degree in Bachelor of Science Industrial Engineering and Management from Oklahoma State University, &

Master of Business Administration degree from Oklahoma State University.

- Joined Daibochi in 1995, and was appointed as Managing Director in February 2005.

- Played a key role in building Group’s MNC clientele.

Datuk Wong Soon Lim, Executive Director

- An accountant by training and a member of the Malaysian Association of the Institute of Chartered Secretaries and

Administrators.

- Has an extensive experience and knowledge in the field of accounting, finance, consultancy, corporate finance,

manufacturing and property development. Instrumental in listing of the Company.

Low Chan Tian, Executive Director

- Holds a degree in Bachelor of Engineering from the University of Western Australia.

- Has wide experience in manufacturing, property development, business and finance.

Low Jin Wei, Executive Director

- Holds a degree in Bachelor of Commerce (Major in Finance & Marketing) from University of Sydney, NSW, Australia.

- Prior to this, Mr. Low was the Managing Director / Project Director of GlassKote (Malaysia) Sdn Bhd from 2005 to

September 2010.

22

Ma

jor

Sh

are

ho

lders

Ma

jor

Sh

are

ho

lders

Growing institutional following… Free float retained at >50%

No. of shares (‘mil)(30.6.2011)

Percentage *

Low Chan Tian, ED 6.69 8.9%

Datuk Wong Soon Lim, ED 4.93 6.5%

* Excluding 439,800 shares bought back by the Company and retained as treasury shares

12

INDUSTRY INSIGHT

23

•• Environmental concerns allayed with flexible packagingEnvironmental concerns allayed with flexible packaging» The ‘greener alternative’ compared to rigid packaging

•• Flexible packaging market, worth $1.41 Flexible packaging market, worth $1.41 bilbil in 2008, estimated to in 2008, estimated to reach $2.22 reach $2.22 bilbil in 2015in 2015*» Robust growth in food processing sector

» Rising demand for food exports, i.e. higher food safety concerns

» Increasing affluence of urban population who favour packaged food

•• Evident trend of flexible packaging gradually replacing rigid Evident trend of flexible packaging gradually replacing rigid packagingpackaging» Similar functions achieved with lower cost and greater flexibility; e.g. Stand-up

pouches and re-closable packs offer merchandizing advantages to FMCG players

» Consumes ~17% less energy compared to rigid packaging, reducing transportation costs.

24

Ind

ust

ry I

nsi

gh

tIn

dust

ry I

nsi

gh

t

Flexible packaging perceived as the environmentally-friendly alternative… poised to tap into large market potential

* Source: “Southeast Asia Plastic Flexible Packaging Market for Food,” Frost & Sullivan, May 2009.

Countries covered were Thailand, Indonesia, Malaysia, the Philippines, and Singapore