daibochi plastic & packaging industry berhad€¦ · •won top corporate governance recognition by...
TRANSCRIPT
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Daibochi Plastic & Packaging
Industry Berhad
Corporate Presentation – AGM 2015
8 June 2015
IR Adviser
AQUILAS
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Operational Highlights & Growth Strategies
Expanding sales on resilient demand…
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Operations Highlights Financial Review Investment Merits Corporate Profile
Newly-expanded capacity to serve growing regional demand for flexible packaging…
OPERATIONAL HIGHLIGHTS
Secured New Orders
• Recorded higher exports to existing MNC client’s operations in S.E.A and Australia on the back of new orders secured since 2H13
• Set to grow alongside new and existing clientele’s expansion in APAC region
Increased Production Capacity
• Commenced operations of second factory in April 2014; increased total production floor space to 460K sq ft from 385K sq ft previously
• Invested RM16 mil into new factory building, as well as new machinery with higher-capacity and specifications to serve broader clientele
• To further invest RM15 mil CAPEX in FY2015 for new machinery in Ayer Keroh Plant
Improved Efficiency
• Streamlined metalizing and film-making operations
• Completed installation of 54 units of e-Savers to optimize electricity consumption via smarter heat management
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Daibochi Plastic 2
New Metallizing Machine
New CPP Film Machine
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Operations Highlights Financial Review Investment Merits Corporate Profile
Committed to best standards not only in manufacturing food-safety, but also corporate governance…
OPERATIONAL HIGHLIGHTS (cont)
Food Safety Certifications
• First F&B-based flexible packaging manufacturer in Malaysia to be certified in accordance with the Food Safety System Certification (FSSC) 22000 by the Foundation for Food Safety Certification, Netherlands
• Leading assessment framework for food safety management globally
Received Awards & Recognition
• Won Top Corporate Governance Recognition by Minority Shareholder Watchdog Group in the mid-cap category, amongst companies between RM100-750 million market capitalization
• 2nd consecutive year to receive the award
• Listed among Top 50 Companies in Malaysian Chapter of MSWG-ASEAN Corporate Transparency Index 2014
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Operations Highlights Financial Review Investment Merits Corporate Profile
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Commercialization of product innovations in 2015...
GROWTH STRATEGIES
exis
tin
g
Pro
du
cts
/ B
ran
ds n
ew
existing new
Customers / Geographical Markets
New innovations to have multiplier effect in existing and new markets, as well as new customers; targeted to commence in 2Q15 and 3Q15
Innovations
• High Speed Sealing • Anti-Leak Sealing
• Sterilisable film
1 new product line commenced in 2Q15 for Australia FMCG industry
Existing customer base to sustain growth pace and expose new markets
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Operations Highlights Financial Review Investment Merits Corporate Profile
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Poised for growth via expanding MNC clientele and order size... product innovation to enhance product mix
PROSPECTS AND PLANS
To continuously increase MNC customer base
Poised to support regional clients’ growing production demands
Positive headway in trials for 2-layer film and adoption of high-speed film; To result in favorable product mix going forward
Newly expanded manufacturing capacity to optimize utilization rate CPP film and metallizing utilization rate reduced from 70% to 60% currently;
larger capacity to meet anticipated growth
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FY14 Financial Performance
Maneuvering a higher-cost environment…
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Operations Highlights Financial Review Investment Merits Corporate Profile
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Charted record topline on continued business expansion… expecting strengthened profitability in FY2015
INCOME STATEMENT & BALANCE SHEET
Balance Sheet Highlights As at 31.12.14 As at 31.12.13
Net gearing 0.31 x 0.27 x
Return on Average Shareholders Equity 14.4% 17.6%
Return on Average Total Assets 8.3% 10.6%
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Operations Highlights Financial Review Investment Merits Corporate Profile
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1st interim single-tier dividend of 3.5 sen / share payable on 19 June ’15 (to shareholders on 26 May ’15 ROD)…
DIVIDEND HISTORY
11.7 9.4 10.1 15.2 17.1 14.8 4.0
51.3% 51.6% 50.3% 61.5% 61.3% 62.2% 64.4%
0.0 %
25. 0%
50. 0%
75. 0%
100 .0%
0.0 0
6.0 0
12. 00
18. 00
2009 2010 2011 2012 2013 2014 1Q15
Dividend Payout
Dividend Payout (RM 'mil) Payout Ratio
10.4 8.4 9.0 13.3 15.0 13.0 3.5
2009 2010 2011 2012 2013 2014 1Q15
Net Dividend Per Share (sen)*
• Dividends in respect of FY2015
• Declared 1st interim single-tier dividend of 3.5 sen
per share, amounting to RM4.0 million or 64.4% of
1Q15 net profit
(Ex date 26 May 2015, payable on 19 June 2015)
• Dividends in respect of FY2014
• Paid four quarterly dividends amounting to 13 sen
per share; representing total payout of RM14.8
million or 62.2% of FY2014 net profit
• Daibochi has a dividend policy to distribute
60% of net profits to shareholders *Adjusted for 1-for-2 Bonus Issue, effective 10 September 2012
Stock charts (5-Year & 1-Year)
5YR outperformance:
75.8%
1YR outperformance:
3.0%
03 June ‘14 KLCI: 1,872.55 DPP:MK: 4.40
03 June ’15 KLCI: 1,749.17 DPP:MK: 4.24
03 June ’10 KLCI: 1,294.44 DPP:MK: 2.01*
03 June ’15 KLCI: 1,749.17 DPP:MK: 4.24
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THANK YOU
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