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Daibochi Plastic & Packaging
Industry Berhad
Corporate Presentation – AGM 2016
26 May 2016
IR Adviser
AQUILAS
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Operational Highlights
Growing regional exports…
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Operations Highlights Financial Review Investment Merits
Corporate Profile
Driven by higher exports and new product innovations… also noted
for corporate governance
OPERATIONAL AND CORPORATE HIGHLIGHTS 3
Achieved Higher Exports
• Total exports increased 6% year on year to RM181.2 million
(FY2014: RM171.4 million)
• Recorded higher exports to MNCs in S.E.A and ANZ markets
• Export contribution rose to 53% of total group revenue
(FY2014: 50%)
New Product Innovations
• Commercialized 2 new product innovations for MNC customers
Received Awards & Recognition
• Won for the 3rd consecutive year the Top Corporate Governance
Award by Minority Shareholder Watchdog Group in the mid-cap
category, amongst companies between RM100-750 million market
capitalization
• Listed among Top 50 Companies in Malaysian Chapter of
MSWG-ASEAN Corporate Transparency Index 2015
MSWG Top CG Award
MSWG Top CG Award
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Growth Strategies
Enhancing capacity and efficiency…
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Operations Highlights Financial Review Investment Merits
Corporate Profile
Capacity expansion and efficiency improvement positions Group to
target new growth opportunities…
GROWTH STRATEGIES
Delivering on New Orders
• On track to commence new F&B and FMCG contracts for MNCs
in the ANZ markets in 2Q16 and 3Q16
• Local sales expected to be stable in FY2016
Investing RM20 mil CAPEX to Expand Facilities
• Phase 2 of expansion to increase total production floor space
(Daibochi Plastic 1 & 2) to 525K sq. ft. from 460K sq. ft.
previously
• Commissioned new printer and bagging machine in 1Q16; new
blown film machine to arrive in August 2016
• Expansion to be completed in October 2016
Improving Efficiency
• Continuously improving productivity and product quality
through higher-quality machinery, components, and processes
• Also helps company to mitigate ongoing labour-related
challenges and increasing operating costs
5
Daibochi Plastic 2
Phase 2 Expansion Works
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FY2015 Financial Performance
Delivering healthy returns…
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Operations Highlights Financial Review Investment Merits
Corporate Profile
7
Domestic sales posting firmer recovery since GST implementation…
also benefitting from larger exports in 2016
INCOME STATEMENT & BALANCE SHEET
Balance Sheet Highlights As at 31.12.15 As at 31.12.14
Net gearing 0. 14 x 0.31x
Return on Average Shareholders Equity 15.3% 14.4%
Return on Average Total Assets 9.1% 8.3%
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Operations Highlights Financial Review Investment Merits
Corporate Profile
8
First interim single-tier dividend of 1.45 sen per share in
respect of FY2016 payable on 10 June 2016
DIVIDEND HISTORY
9.4 10.1 15.2 17.1 14.8 16.0 4.0
51.6% 50.3% 61.5% 61.3% 62.2% 60.0% 60.9%
0.0 %
25. 0%
50. 0%
75. 0%
100 .0%
0.0 00
6.0 00
12. 000
18. 000
2010 2011 2012 2013 2014 2015 1Q16
Dividend Payout
Dividend Payout (RM 'mil) Payout Ratio
3.4 3.7 5.5 6.2 5.4 5.9 1.5
2010 2011 2012 2013 2014 2015 1Q16
Net Dividend Per Share (sen)*
• Dividends in respect of FY2016 • Declared first interim
single-tier dividend of 1.45 sen
per share amounting to RM4.0 million payout
(payable on 10 June 2016)
• Dividends in respect of FY2015 • Paid four interim dividends
amounting to 5.87* sen per
share or RM16.04 million in total payouts
• Daibochi has a dividend policy to distribute
60% of net profits to shareholders
*Adjusted for 1-for-2 bonus issue, effective 10 Sep 2012;
and
1-to-2 share split and 1-for-5 bonus issue, effective 22 Feb
2016
Stock charts (5-Year & 1-Year)
5YR outperformance:
173.1%
1YR outperformance:
25.9%
22 May ‘15 KLCI: 1787.50 DPP:MK: 1.79*
23 May ’16 KLCI: 1634.89 DPP:MK: 2.10
23 May ’11 KLCI: 1528.98 DPP:MK: 0.75*
23 May ’16 KLCI: 1634.89 DPP:MK: 2.10
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THANK YOU
Bursa: DAIBOCI/8125 Bloomberg: DPP:MK Reuters: DPPM.KL
