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BRIEFING

BRIEFING. EVERGREEN FIBREBOARD BERHAD. 23 rd March 2010. 1. INTRODUCTION. PRINCIPAL INFORMATION. FULL. 1.1 Principal Information. The corporate structure of the EFB Group is as follows:-. Malaysia. EVERGREEN FIBREBOARD BERHAD (HQ) (BATU PAHAT,JOHOR). Medium Density Fibreboard,

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BRIEFING

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  1. BRIEFING EVERGREEN FIBREBOARD BERHAD 23rd March 2010

  2. 1. INTRODUCTION PRINCIPAL INFORMATION FULL

  3. 1.1 Principal Information The corporate structure of the EFB Group is as follows:-

  4. Malaysia EVERGREEN FIBREBOARD BERHAD (HQ) (BATU PAHAT,JOHOR). Medium Density Fibreboard, value added downstream products such as Paper,Veneer,Coated/Emboss,Printed,Melamine Board Laminations & Knock Down wooden Furniture. CAPACITY : 250,000 M3/ANNUM ALLGREEN TIMBER PRODUCTS SDN BHD (SEGAMAT,JOHOR) Manufacturing of Particle Board from wood waste of various wood species. Currently 30% of its produce are being sent to Evergreen Fibreboard in Parit Raja for the production of Knock-down Wooden Furniture. CAPACITY : 120,000 M3/ANNUM EVERGREEN FIBREBOARD (JB) SDN BHD ( PASIR GUDANG ) A producer of thin MDF using Tropical and Acacia wood species. It produces thin E1/E0 panel too. CAPACITY : 120,000 M3/ANNUM

  5. Malaysia EVERGREEN FIBREBOARD BERHAD ( PASIR GUDANG) Involved in the secondary process of Medium Density Fibreboard which is supplied from our Parit Raja Plant , Plywood and Decorative Faced Veneer Sheets that are derived from purchase of imported logs by rotary and slicing. CAPACITY : 100 MILLION SQFT/ANNUM DAWA TIMBER PRODUCTS SDN BHD ( PASIR GUDANG ) An Associate Company of Evergreen Fibreboard Berhad that carries out similar activities with Evergreen Fibreboard Berhad in Pasir Gudang, Johor. CAPACITY : 24 MILLION SQFT/ANNUM Evergreen Fibreaboard (Nilai) Sdn.Bhd Evergreen Adhesive & Chemicals Sdn.Bhd A producer of medium density fibreboard. A producer of Adhesive. CAPACITY : 250,000 M3/ANNUM CAPACITY : 96,000 MT/ANNUM

  6. Malaysia Evergreen Hevea Resources Sdn.Bhd. ( Malaysia ) Harvesting of Rubber Timber Consession. Indonesia PT Hijau Lestari Raya Fibreboard ( Indonesia ) A producer of Plain MDF & adhesive. CAPACITY : 120,000 M3/ANNUM (MDF) 60,000 MT/ANNUM (Adhesive)

  7. Thailand DYNEA KRABI COMPANY LIMITED ( THAILAND ) A producer of adhesive. CAPACITY : 150,000 MT/ANNUM SIAM FIBREBOARD COMPANY LIMITED ( THAILAND ) A producer of plain MDF CAPACITY : 570,000 M3/ANNUM GRE ENERGY COMPANY LIMITED ( THAILAND ) a bio-mass (waste material) power generation plant that uses steam turbine technology and it supplies SIAM FIBREBOARD its full electricity requirement. CAPACITY :: 18 MEGAWATTS OF ELECTRICITY & 20 TONS OF STEAM

  8. World Top 5 producer. Capacity of 1.3 million m3 MDF per annum. 10 MDF production lines & 1 Particleboard production line(120,000m3 per annum). Total of 11 manufacturing plants. Presence in more than 40 countries worldwide.

  9. Europe Asia North America South America

  10. 1.4 IPO DETAILS • Listed on the Main Board of Bursa Malaysia Securities Berhad on 10th March 2005. • Paid up capital of RM128,250,000 consisting of 513,000,000 ordinary shares of RM0.25 each in EFB. • IPO shares priced at RM1.14 per share, net P/E of 8.42 times on forecast net EPS for FYE 31/12/2005 of 13.53 sen per ordinary shares of RM0.25 each.

  11. Percent of Foreign/Institution Investors participations ( Free Float Shares )

  12. 2. BUSINESS OVERVIEW WHAT DOES THE EFB GROUP DO?

  13. 1.1 BUSINESS ACTIVITIES • The principal activities of EFB are of manufacturing medium density fibreboard (“MDF”), value added MDF & knocked-down wooden furniture The subsidiaries and associated company of EFB are mainly involved manufacturing of Particleboard (ATP), lamination of MDF (EDP/EFB-PG) and fancy plywood (DTI). • Products consists of: 2005 2006 2007 2008 2009 • (a) Reconstituted wood-based panel board • (1) Plain MDF & 85.9% 86.9% 90.9% 89.6% 90.4% • Value-added MDF • Plain MDF66.7% 69.2% 73.6% 73.8% 79.5% • Value added MDF 19.2% 17.7% 17.30% 15.9% 10.9% • (2) Plain Particleboard 7.3% 8% 4.0% 4.9% 4.8% • (b) Downstream Wood-based Products • (1) Knocked-down wooden furniture. 6.2% 4.6% 4.3% 4.7% 4.0% • Based on 2005, 2006, 2007,2008 & 2009 Revenue.

  14. 2.2 BUSINESS ACTIVITIES (continued) • The Production, capacity and utilisation of facilities for the Groupare as follows : :

  15. 2.2 BUSINESS ACTIVITIES (continued) • The Production, capacity and utilisation of facilities for the Groupare as follows : :

  16. 2.3 BUSINESS ACTIVITIES (continued) • The Breakdown of revenue by local and export markets are as follows : :

  17. Rubber Wood Logs Price Index For Year 2005 - 2010

  18. Glue Price Index For Year 2005 - 2010

  19. Evergreen’s MDF ApplicationsBuilding Materials • Building interiors – architectural features i.e. columns and archways, partitions, walls and ceiling, panelling, doors, base materials for laminated and veneered wood products for flooring and wall panelling • Profiling, joinery and millwork applications i.e. furniture mouldings, joinery, skirting, architecture mouldings, decorative doors, pillars, architraves, window and door components such as frames, sills, stiles, rails, louvre blades and panelling, flooring pieces, fingers joints and veneer-wrapped mouldings, door stops, door jambs casings etc

  20. Evergreen’s MDF Applications Household & Automotive • Household products i.e. picture frames, toys, games boards, cots, hi-fidelity speaker boxes, shoe heels, snooker tables etc • Furniture and fixtures i.e. kitchen bench tops, kitchen cabinets, office and household furniture, shelves, computer stands, television casings, built-in furniture, dining sets, bedroom sets, backers of cupboards and drawers, display cabinets etc • Automotives including interior parts of automotives

  21. Evergreen Strength (Competition Advantages) Customer Base – MDF • Diversify market coverage • Extends to approximately 45 countries including Malaysia Total Market Distribution by Countries* Distributor : 58.47% End User : 17.94% Downstream : 23.59%

  22. EFB GROUP : Total Market Distribution by Countries (2008)

  23. Diverse Customer Base* • 90% of its top 10 customers have been with Evergreen for 5 or more years. • Of this, 60% have been dealing with the Group for 9 or more years.

  24. Meeting International Standards & Certifications • SGS ISO 9001 :2000 • SGS FSC (FOREST STEWARDSHIP COUNCIL) , (CHAIN OF CUSTODY) • FIRA BS EN 120 MDF QUALITY STANDARD • SCIENTIFIC CERTIFICATION SYSTEM (WOOD RECOVERY) • MALAYSIAN TIMBER INDUSTRY BOARD, SUSTAINABLE FOREST MANAGEMENT STATEMENT.

  25. Malaysia World leader in wood-based products • Top 3 MDF exporter in the world* • Top 7 producer of MDF* • RM17bil in export earnings in 2004# • from RM16.3 bil in 2003 • from RM15.2 bil in 2002 • *MIDA and Department of Statistics • #Plantation Industries & Commodities Minister, Jan 5, 2005

  26. World Top-10 MDF Producing Countries Installed Capacity ‘000 m3 per year Source : Metso Mill Directories 2003

  27. World Top-10 MDF Exporting Countries Export Volume ‘000 m3 per year Source : MTIB

  28. 2.7mm Plywood Price For Year 2005 - 2010

  29. 9.0mm Plywood Price For Year 2005 - 2010

  30. 3. FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS & EARNINGS OUTLOOK

  31. 4.1 HISTORICAL FINANCIAL PERFORMANCE

  32. SUCCESSFUL PERFORMANCE TRENDS

  33. STRONG PROFIT TRACK RECORD

  34. 4.2 Ratio Analysis Financial ratios analysis for the Group

  35. 3.3 Tax incentives EFB has obtained its Pioneer Certificate on the 26th May 2005 certifying the pioneer period from 24th December 2004 until 23rd December 2009 for income tax exemption of 70% on its income for this period. EJB – New acquired company, Evergreen Fibreboard (JB) Sdn Bhd has obtain Investment Tax allowance. ( ITA) GRE – New acquired company, GRE was granted tax exemption for 8 years ending in 2014. SFC - Siam Fibreboard new 3rd line was granted tax exemption for 8 years.

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