1

Daibochi Plastic & Packaging Industry

Berhad

Investors’ Briefing

1Q11 Financial Results & Corporate Update

11 May 2011

IR Adviser

AQUILAS

• 1Q11 Operational Highlights

• 1Q11 Financial Review

• Prospects and 2011 Plans

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2

1Q11 Operational Highlights

3

• 1Q11 revenue increase mainly from core biz

» 13.4% revenue growth; packaging the main contributor

with 96% of 1Q11 revenues

» Packaging sales up 9.9% in 1Q11 to RM65.1 mil

(vs 1Q10 RM59.2 mil) largely spurred by higher

average selling prices as a result of passing on of

increased cost of polyester film

» Minimal contributions from property development of

RM2.6 mil in 1Q11 (vs 1Q10 RM0.5 mil)

• Yet still-rising raw material prices impacted profitability» PET prices stabilized in 1Q11, but PE, PP and OPP

resumed uptrend

» Prices of solvent - sourced from Japan - trending up

due to tight supply from disruption to supply chain

» This resulted in 1Q11 net profit of RM4.6 mil

(vs RM5.0 mil in 1Q10)

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1Q11 O

pera

tional Highlights

1Q11 O

pera

tional Highlights

Higher 1Q11 revenues from passing on of higher input costs …however profit impacted by still-rising raw material prices

Revenue CAGR (FY04 to FY10): 8.9%

PBT CAGR (04-10): 32.2%

PATMI CAGR (04-10): 35.8%

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1Q11 Financial Review

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6

1Q11 Inco

me Sta

tement

1Q11 Inco

me Sta

tement

FY2011 expected to remain challenging from raw material price uncertainty…

• 1Q11

showing

improving

margins vs

4Q10 due to

passing on of

increased

polyester

film cost

• Forex loss contained at

RM154K

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

20.0

40.0

60.0

80.0

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

Quarterly Revenue (RM ‘mil)

+13.4%

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

0.0

2.0

4.0

6.0

8.0

10.0

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

Quarterly PATMI (RM ‘mil)

(7.4%)

1Q11 to

31.3.11

1Q10 to

31.3.10

Change vs

previous qtr RM'mil

4Q10 to

31.12.10

Change vs

preceding qtr

67.67 59.69 13.4% Revenue 75.46 (10.3%)

6.27 6.61 (5.1%) Operating Profit 5.34 17.5%

(0.11) (0.09) (15.2%) Share of Associates 0.37 (128.4%)

5.89 6.35 (7.3%) Pre-tax Profit 5.47 7.7%

4.65 5.02 (7.4%) Net Profit to Shareholders 4.16 11.8%

6.20 6.68 (7.2%) Basic EPS (sen) 5.50 12.7%

9.3% 11.1% (1.8) EBIT margin 7.1% 2.2

8.7% 10.6% (1.9) PBT margin 7.2% 1.5

6.9% 8.4% (1.5) Net margin 5.5% 1.4

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7

1Q11 Balance

Sheet (H

ighlights)

1Q11 Balance

Sheet (H

ighlights)

Increasing asset base with additional printing machine to support enlarged operations…

RM’ mil As at 31.3.11

(Unaudited)

As at 31.12.10(Audited)

Fixed assets (excl associate investment) 70.86 66.21

Associate investment 22.97 23.08

Current assets 120.28 122.72

Current liabilities 68.17 69.26

Shareholders’ equity 132.25 131.47

Total borrowings 38.39 29.53

Cash & Bank Balances 8.92 6.30

Net gearing 0.22 x 0.18 x

Return on Average Shareholders Equity 14.1%* 14.3%

Return on Average Total Assets 8.7%* 11.9%

• Higher borrowings

to finance higher

working capital in

line with increased

raw material costs

• Net gearing still low

• Higher PPE from

additional printing

machine

1.52 1.52 3.04 4.55 4.55 11.67 9.38 2.28

52.3%

73.8%

55.9% 52.4% 55.8% 51.3% 51.6% 49.0%

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 1Q11

%RM ‘mil Dividend Payout

Dividend Payout (RM 'mil) Payout Ratio

8

Dividend Histo

ryDividend Histo

ry

1st interim tax exempt dividend of 3.0 sen/share payable on 10 June 2011…

2.02.0 2.02.0 4.04.0 6.06.0 6.06.0 15.515.5 12.512.5 3.03.00.0

4.0

8.0

12.0

16.0

2004 2005 2006 2007 2008 2009 2010 1Q11

sen Dividend Payout (sen)

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PROSPECTS AND 2011 PLANS

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10

Gro

wth Strategies

Gro

wth Strategies

Putting in place strategies to overcome challenging FY2011… also building sustainable and higher-margin earnings base

(I)(I) Regularly monitoring raw material price trends Regularly monitoring raw material price trends

• Quarterly price review mechanism still in place for key customers

• Maintaining R&D to develop new applications

(II) (II) Developing more mainstay clientsDeveloping more mainstay clients

• Aiming to become the main supplier for an increasing number of

MNCs

(III)(III) Obtaining the necessary approvals for higher valueObtaining the necessary approvals for higher value--add packaging add packaging

• Undergoing pre-qualification trials for ESD packaging

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

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IR Contacts:

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

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

APPENDIX

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7

CORPORATE PROFILE

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

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Daibochi, a resilient investment case…

Tra

ck Reco

rdTra

ck 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

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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 RM212.53 mil (RM2.80 as at 9 May 2011)

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Listed since 1990…

Corp

ora

te Inform

ation

Corp

ora

te Inform

ation

Corp

ora

te Pro

file

Corp

ora

te Pro

file

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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

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Corp

ora

te Pro

file (

Corp

ora

te Pro

file (co

n’t

con’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.

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

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Pro

duction Facilities

Pro

duction Facilities

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

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19

Daiboch

i Pro

ducts

Daiboch

i Pro

ducts

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

Customer Base

Customer Base

Diversified clientele of leading brands… 20

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Key M

anagement

Key M

anagement

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

- Appointed on 5 October 2010

- 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.

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Major Shareholders

Major Shareholders

Growing institutional following… Free float retained at >50%

No. of shares (‘mil)(30.4.2011)

Percentage *

Low Chan Tian, ED 6.69 8.9%

Datuk Wong Soon Lim, ED 4.71 6.3%

* Excluding 1,183,200 shares bought back by the Company and retained as treasury shares

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23

FY10

FY10Pro

duct Segmenta

tion

Pro

duct Segmenta

tion

Group retains resilience… Steadily-growing non-F&B segment to broaden revenue base beyond traditional sectors

97% 96% 96% 97%95% 94%

89%

3% 4% 4% 3%5% 6%

11%

80%

85%

90%

95%

100%

2004 2005 2006 2007 2008 2009 2010

Revenue Segmentation (Product)

F&B Non F&B

F&B: Confectionery, snack foods, biscuits, dairy, frozen food, cereal, coffee/tea, soft drinks, etc Non F&B: Shampoo, detergent, personal care, sanitary, cigarette packaging, pet food, etc

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FY10 Geogra

phical Segmenta

tion

FY10 Geogra

phical Segmenta

tion

More volume sales to overseas in FY2010… momentum to continue in FY2011 with new customers in Australia

Overseas40%

Domestic60%

FY10 Revenue: RM267.7 mil

0%

10%

20%

30%

40%

50%

60%

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009 2010

Revenue Contribution

RM ‘milOverseas Revenue

Overseas Revenue (RM'mil) Contribution (%)

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INDUSTRY INSIGHT

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•• 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.

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Industry

Insight

Industry

Insight

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