IR Adviser

4Q FY2017 Results Presentation

5 February 2018

4QFY17 OPERATIONS REVIEW

55.5% RM58.6m

4QFY17

RM105.7m

Exports

53.6%

Exports

+21.0% yoy

34QFY17 CORE REVENUE (YOY CHANGE)

Group 4QFY17 revenue significantly higher on stronger domestic and export sales as well

as new contribution from the Myanmar plant…

4QFY17 total exports leaped 21.0% yoy on new contributions of RM8.5 mil from theMyanmar plant

4QFY16

RM90.4m

46

43

38

38 42

40 43

42

43

40 46

47

1Q

15

2Q

15

3Q

15

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15

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16

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16

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17

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17

Quarterly Domestic Revenue(RM ‘mil)

4QFY17 domestic sales rose 12.2% due to stronger demand from F&B customers

Domestic

RM47.0m 44.5%

+12.2% yoy

Domestic46.4%

41 47

48

45 48 57

51

48 51

47 49

50

6.5 8.5

1Q

15

2Q

15

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Quarterly Export Revenue(RM ‘mil)

Myanmar plant

Exports (excl. Myanmar plant)

1.8 1.6

28.6%

19.3%

3Q17 4Q17

Quarterly PBT & PBT MarginMyanmar Plant (RM ‘mil)

PBT PBT Margin

4DAIBOCHI MYANMAR UPDATE

Daibochi Myanmar 4QFY17 revenue significantly higher on commencement of first export

sales… 5-year income tax waiver commenced in November 2017

4QFY17 PBT dipped 11.5% qoq due to higher key raw materials cost andincreased operating costs to expedite delivery of new export orders; marginsalso saw compression from increased sales to cost-sensitive customers

4QFY17 revenue from the Myanmar plant rose 31.3% qoq on first export salesin December 2017, and increased demand within Myanmar

6.5

8.5

3Q17 4Q17

Quarterly Revenue Myanmar Plant (RM ‘mil)

Approval to export outside Myanmar

Received approval from the Myanmar InvestmentCommission (MIC) on 8 December 2017 to exportgoods outside of Myanmar

Delivered seven containers of flexible packaging toeight cost-sensitive customers in Malaysia inDecember 2017

Commenced 5-year income tax waiver

Received notification from MIC on thecommencement of 5-year income tax waiver from22 November 2017

+31.3%

-11.5%

GROWTH STRATEGIES

6GROWTH STRATEGIES

Malaysia plant to maintain strong growth momentum through new export contracts…

Daibochi Myanmar targets to enter into qualification with MNCs

Eyeing exports to regional markets

Secured a contract with a MNC customer in1QFY18 to supply flexible packaging to the Australiaand New Zealand region for its FMCG brand

Delivery expected to commence in 2QFY18

Working towards commencement of flexiblepackaging supply to another two MNCs for theirF&B and FMCG brands in Indonesia

CAPEX

Investing RM10.5 mil in FY18 for new machinerycomprising:

Printing machine, high-speed slitter, andsupporting machinery

MALAYSIA PLANT MYANMAR PLANT

Targeting new business from Myanmar and SouthEast Asia (SEA)

Targets to enter into qualification with MNCs toserve their expanding packaging requirements in thehigh-growth SEA region

To leverage low-cost and geographical advantage tosecure export contracts from cost-sensitivecustomers in the SEA region

Aiming to reach RM100 mil revenue in FY19

CAPEX

Planned CAPEX of USD1.7 mil in FY18 comprising:

Printing machine, extrusion machine, slittingand rewinding machine

4QFY17 FINANCIAL REVIEW

INCOME STATEMENT

Group revenue and profitability continued quarter-on-quarter expansion… targeting to

deliver strong growth in FY18

RM'mil

4Q17 to

31.12.17

3Q17 to

30.09.17 % chg qoq

FY17 to

31.12.17

FY16 to

31.12.16 % chg yoy

Revenue 105.66 102.03 3.6% 388.65 371.16 4.7%

EBITDA 14.81 14.67 0.9% 51.38 45.27 13.5%

Operating Profit 11.29 11.19 0.9% 37.60 32.61 15.3%

Share of Associate Results 0.78 0.06 1218.6% 1.16 0.09 1183.3%

Profit Before Tax 11.17 10.48 6.6% 35.74 29.95 19.3%

Net Profit to Shareholders 7.93 7.22 9.9% 25.96 24.52 5.9%

Basic EPS (sen)* 2.42 2.20 10.0% 7.92 7.49 5.7%

EBITDA margin 14.0% 14.4% (0.4 pt) 13.2% 12.2% 1.0 pt

PBT margin 10.6% 10.3% 0.3 pt 9.2% 8.1% 1.1 pt

Net margin 7.5% 7.1% 0.4 pt 6.7% 6.6% 0.1 pt

*Adjusted to reflect the bonus issue of 2 for every 10 ordinary shares held by the entitled shareholders, completed on June 28, 2017

8

FY17 Review (yoy comparison)

Revenue increased on new contributions fromDaibochi Myanmar since 3Q17

PBT rose on new contributions from DaibochiMyanmar as well as better sales mix, and progressin efforts to reduce wastage and improve operatingefficiency at the Malaysia plant

Net profit rose in line with higher PBT; partially offsetby higher effective tax rate on lower reinvestmentallowances

EBITDA margins expanded due to similar factorsthat drove PBT higher

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Quarterly Revenue(RM ‘m)

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Quarterly PATMI(RM ‘m)

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Quarterly PBT(RM ‘m)

BALANCE SHEET

Net gearing significantly reduced from 3QFY17 level… continues to sustain double-digit

returns

* The Group carried RM35.1 mil in intangible assets associated with the acquisition of its 60% interest in Daibochi Myanmar

**Based on net profit for the trailing twelve months

9

As at 31.12.2017 As at 31.12.2016

(Unaudited) (Audited)

Fixed Assets (excl associate investment & deferred tax) 173.31 141.22 Due to recognition of RM35.1 million in intangible assets*

Associate Investment 19.36 20.25

Current Assets 173.33 146.81 Due to increase in inventories, and trade and other receivables

Current Liabilities 110.42 92.44 Due to increase in borrowings, and trade and other payables

Shareholders’ Equity 200.88 189.17 Due to issue of bonus shares and warrants

Total Borrowings 69.87 53.99Due to Daibochi Myanmar acquisition and increased working

capital requirements

Cash & Bank Balances 18.31 15.83 Due to higher operating cash flow

Net Gearing 0.26 x 0.20 x Net gearing significantly lower than 0.38x in 3QFY17

Return on Average Shareholders’ Equity** 13.3% 13.2%

Return on Average Total Assets** 7.7% 8.1%

Remarks

DIVIDENDS

Fourth interim single-tier dividend of 1.3 sen per share payable on 21 March 2018 (ex-date

on 27 February 2018)…

4.52 4.90 4.52 4.55

FY14 FY15 FY16 FY17

14.8 16.0 14.8 14.9

62%

60% 60%62%

FY14 FY15 FY16 FY17

Total Dividend Payout Ratio^

Payment HistoryDividend Payout RM’m

Dividend Per Share* sen

Dividend policy revised to pay out at least 60% of

net profit attributable to shareholders, excluding

net profit contributions from Daibochi Myanmar

10

FY2016 FY2017 FY2016 FY2017

1st Interim (single tier) 1.21* 1.10* 3.95 3.61

2nd Interim (single tier) 1.11* 1.00 3.62 3.28

3rd interim (single tier) 1.10* 1.15 3.59 3.76

4th interim (single tier) 1.10* 1.30 3.60 4.30

Total 4.52 4.55 14.76 14.94

Dividend per share

(sen)

Dividend Payout

(RM 'm)

*Adjusted to reflect the bonus issue of 2 for every 10 ordinary shares held by

the entitled shareholders, which was completed on June 28, 2017

^Excludes net profit contribution from Daibochi Myanmar

INVESTMENT MERITS

VALUATIONS AND MERITS (as at 26 January 2018)

Led by innovation and efficiency… a market leader in supplying top quality consumer

flexible packaging to MNCs in the region

12

MNCs make up almost 80% of total revenue(benefitting from steady and large orders, strong creditworthiness)

Exports to SEA & ANZ exceed 50% of revenue

Supplier to renowned F&B and FMCG brands(supporting highly-resilient sectors)

Contribution from Myanmar to see earnings boost

Industry-leading R&D and product innovation

Highly-experienced management team

KEY MERITS

15.3x

4.4x

2.0%

Price Market Cap

P/E (ttm)

EV/EBITDA (ttm) FY17 Div. Yield

P/B

RM2.24 RM733m

28.2x

Contact Information

Investor Relations

Low Jin Wei, Executive Director

Daibochi Plastic and Packaging Industry Berhad

+606-231 9779

jinwei@daibochi.com

Julia Pong, Manager

Aquilas Advisory (M) Sdn Bhd

+6012-390 9258

julia@aquilas.com.my

APPENDIX

CORPORATE PROFILE

16OVERVIEW

Leading consumer flexible packaging player in Malaysia and South East Asia with 45-year

track record… serving leading MNC brands in the F&B and FMCG sectors

Daibochi established since 1972A leading provider of consumer flexible packaging to majorinternational brands in the F&B and FMCG industries

Focused on quality and innovationExperienced R&D team supported by well-equippedlaboratory testing facilities

Increasing exports prowessGrowing exports across South East Asia, Australia and NewZealand markets; exports make up >50% of group revenue

Daibochi’s Malaysia plant certificationsAttained ISO:9001 and ISO:14001 certifications

Hazard Analysis Critical Control Points (HACCP)compliant to ensure adherence to food safety requirements

Obtained Food Safety System Certification (FSSC:22000)

Daibochi’s Myanmar plant certificationsSecured the ISO 9001:2015 accreditation and the HACCPFSMS certification in October 2017

17PRODUCTION FACILITIES

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

clientele… strength in innovation

18PRODUCTION FACILITIES (CONT’D)

Strategically located production facilities… sizable floor space allows Daibochi to cater

for increasing orders from MNCs

Daibochi Plastic Plant 1Located in Ayer Keroh, Melaka, Malaysia

Production floor space of 385,000 sq ft

Daibochi Plastic Plant 2Located in Jasin, Melaka, Malaysia

Commenced operations in 2Q14

Production floor space of 135,000 sq ft

19PRODUCTION FACILITIES (CONT’D)

Addition of Myanmar operations since July 2017 represents the Group’s first expansion of

its manufacturing facilities outside of Malaysia…

Yangon, Myanmar PlantDaibochi and Myanmar Smart Pack Industrial CompanyLimited (MSP) incorporated Daibochi Myanmar

MSP is a leading flexible consumer packaging manufacturerin Myanmar focusing on Home Personal Care products

Consumer packaging plant located 30 minutes from Yangon,with built-up of 6,000 sq m and land area of 36,000 sq m

Quick Facts on Myanmar

Population of >50 mil

Low flexible packaging consumption of<USD1 per capita (Indonesia USD13,Vietnam USD9, India <USD5)1

1PCI Wood Mackenzie, 2015

20OPERATIONAL SYNERGIES

Leveraging strengths & synergies to accelerate expansion in high-growth markets…

WIDER PRODUCT RANGE

• Daibochi Myanmar to benefit from technology transfer from Daibochi Malaysia (CPP & metalliser)

• Daibochi Malaysia to fulfil product line gap in the interim

• Expand F&B packaging line leveraging on Daibochi Malaysia’s strengths and long-term relationships with MNCs

SIGNIFICANT LOW-COST ADVANTAGE

• Capitalise on low manufacturing cost advantage to export to cost-sensitive customers in SEA

• Benefit from bulk purchases of raw materials (e.g. resin)

• Enjoy cost savings from production of in-house film

HUMAN CAPITAL DEVELOPMENT

• Access to ample workforce pool; opportunities for skillset upgrading and optimisation

• To tap into Daibochi’sR&D and specialty films, develop sales team, & enhance production efficiency

• To attain international certifications in food safety, quality & environment management

STRONG CASHFLOW & DIVIDENDS

• Able to fund future growth, without requiring additional capital injection from shareholders

• Targeting dividend payment from Year 3 onwards

• 5-year tax exempt status

21PRODUCTION PROCESS

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

capabilities

PrepressCylinder Making

Gravure Printing

Lamination (Extrusion /

Dry)

Slitting / Bagging

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 films capabilities for quality assurance and constant improvement at key stages

To build high barriersPolypropylene sealing films

22PRODUCT APPLICATIONS

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, Retort Packaging, Ice-cream,

Frozen Food, Cereal Peel Seal,

Seasoning Oil, Powder/Liquid Detergent,

Shower Foam, Tobacco, Pet food

23REGIONAL PRESENCE

Commendable track record in serving a wide number of MNC clientele in the F&B industry

with stringent quality control…

Supplier to leading global brands

The Largest Supplier of Milo packaging in S.E.A

The Sole Supplier to Nestle’s Chembong confectioneryfactory in Malaysia

Daibochi is also the ONLY S.E.A company on Nestle’sRegional Food Safety Committee

Supplier of >90% of Cadbury’s flexible packaging inMalaysia

The Major Supplier of Mondelez International’s (formerlyknown as Kraft) biscuits and snacks packaging in Malaysia

Major Supplier of flexible packaging to PepsiCo’s ChiangMai plant for potato chips manufacturing

24INDUSTRIES SERVED

Diversified clientele of leading brands across various industries…

Food

BeverageFMCG

Specialty

• Confectionary

• Biscuits

• Snack Foods

• Dairy

• Frozen Food

• Cereal

• Shampoo

• Detergent

• Personal Care

• Sanitary

• Coffee/Tea

• Dairy

• Soft Drink

• Tobacco

• Medical Packaging

• ESD / Anti-Static

• Pet Food

Worldwide consumer flexible packaging market worth $92 bil in 2015

Estimated to grow 4% p.a. to reach $114 bil in 2020

Growth to be led by Asia Pacific & other emerging regions (e.g. South & Central America)

Growth catalysts for Asia’s flexible packaging market

Higher demand for cheaper and smaller pack sizes in line with affordability of general population(especially post economic slowdown)

Increase in working mothers / dual-income households leading to preference for convenience packaging

Development of multinational food retailers and manufacturers in the region; indicating the long-termgrowth potential in Asia

25INDUSTRY INSIGHT

Growth in flexible packaging to be led by the Asian region… penetration into new product

categories to bring next wave

Source: Smithers’ Pira – The Global Flexible Packaging Market – Trends and Forecasts

Source: The Asia Pacific Flexible Packaging Market to 2016 by PCI Consulting Films Ltd

26CORPORATE INFORMATION

Market cap of more than RM700 million…

DAIBOCHI PLASTIC & PACKAGING INDUSTRY BERHAD

Exchange Main Market, Bursa Malaysia since 1990

(transferred from Second Board in 2003)

Sector Industrial Products

Codes Bursa: 8125 / DAIBOCI

Bloomberg: DPP:MK

Reuters: DPPM.KL

Share Capital RM164.2 mil (327.3 mil shares)

Market Capitalization RM733.1 mil (RM2.24 as at 26 January 2018)

27MANAGEMENT TEAM

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.

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.

28MAJOR SHAREHOLDERS

Institutional investors holding approximately 33%...

No. of shares (‘mil)(31.12.2017)

Percentage

Low Chan Tian 33.8 10.3%

Apollo Asia Fund Ltd 30.7 9.4%

Lim Koy Peng 27.7 8.5%

Halley Sicav – Halley Asian Prosperity 19.3 5.9%

Datuk Wira Wong Soon Lim 19.1 5.8%