CORPORATE PRESENTATION

February 2012 Prepared by: Dr. Liew Lai Lai

Corporate Information

The first rubber glove producer listed in Malaysia in 31 Jan 1996

Latexx Partners Berhad
Stock Exchange Ordinary Shares Stock Codes Share Capital Market Capitalization Warrants 2007/2017 Stock Codes Balance No. of Warrants Market Capitalization Exercise Terms Expiry Date Bursa: LATEXX-WA/7064WA Reuters: 7064WA.KL 52,009,601 RM72,813 mil (RM1.40/share as at 31 Jan 2012) 1 warrant for 1 new share at RM0.53 6 Jun 2017 Bursa: LATEXX/7064 Bloomberg: LTX:MK Reuters: LATX.KL RM111.420 mil (222,839,670 shares of 0.50 sen each) RM441.223 mil (RM1.98/share as at 31 Jan 2012) Main Market, Bursa Malaysia

Business Overview

Situated in one location, the Group is one of the most efficient gloves producers in Malaysia
Started in 1988, Latexx is a leading and among the top 5 largest medical examination glove producers in Malaysia Production facilities situated in a single location of 50 acres in Kamunting, Perak, 32% still vacant With 2,500-strong manpower, the 6-plant facilities have total of 89 production lines and annual capacity of producing 9 billion pieces of gloves per year Business model of contract manufacturing (OEM) of rubber and nitrile gloves for global medical product brand names

Products

Produces both rubber and nitrile glovesnitrile gloves grew the fastest
Powdered Latex Examination Glove
Non-sterile, allpurpose latex examination gloves Low in extractable protein and chemical residue

Powder-Free Latex Examination Glove

Non-sterile, ideal for hypersensitive persons to latex protein Custom-moulded ambidextrous glove

Powder-Free Nitrile Examination Glove

100% synthetic rubber Provides better grip for wet and dry condition. Unique design offers excellent tactility, with no hand fatigue and sensitivity

Description Powdered Latex Powder Free Latex Powder Free Nitrile Total

FY 2008 (%) 56 30 14 100

FY 2009 (%) 24 56 20 100

FY 2010 (%) 17 40 43 100

YTD 2011(%) Q1 8 24 68 100 Q2 4 30 66 100 Q3 9 27 64 100 Q4 10 29 61 100 FY 2011 8 28 64 100

Revenue Contribution

Latexx focuses on higher-end premium segment, particularly nitrile products......

Nitril e 20%

2009

2011
PP 24%

PP 8% PF 28%

PF 56%

2010
PP 17% Nitrile 43%

Nitrile 64%
PF 40%

Production Facilities

Accredited production facilities that comply with international medical standards

Accreditations of the facilities include the following: ISO:9001:2000 (Awarded by TUV Management service GmbH, Germany) ISO 13485:2003 (Accredited by Standards council of Canada by TUV America Inc.) EN ISO 13485:2003 (Awarded by TUV product Service GmbH, Germany) Awarded for Standard Malaysian Glove Scheme by The Malaysian Rubber Board

Clientele Base

Renowned clientele in medical supply industrytop distributors in the world, geographically diversified customer base across more than 100 countries

Clientele base of more than 300 worldwide, consisting of global glove brands, medical suppliers, resellers and distributors, not dependent on any single customer, highest number of MNC accounts in the industry.

Revenue by Geographical Region

Geographically diversified, exporting to more than 100 countries, main contribution of revenue from advance countries
Local 12%

Asia pacific 15% Middle East 4%

Medical 91%

Europe 27% Latin America 1%

USA 41%

Non-Medical 9%

Sales by regions

Sales by sectors
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4Q11 Revenue

Strong and consistent quarterly performance despite challenging headwinds in the industry .

Description

4Q2011 RM '000 89,694 8,988 10.0% 7,381 8.2% 926 1.0%

3Q2011 RM '000 121,813 15,865 13.0% 14,130 11.6% 12,729 10.5%

Growth (%) -26.4% -43.3% -3.0% -47.8% -3.4% -92.7% -9.4%

4Q2011 RM '000 89,694 8,988 10.0% 7,381 8.2% 926 1.0%

4Q2010 RM '000 106,713 17,964 16.8% 16,522 15.5% 5,563 5.2%

Growth (%) -15.9% -50.0% -6.8% -55.3% -7.3% -83.4% -4.2%

Revenue Operating Profit Operating Profit Margin (%) Profit Before Tax (PBT) PBT Margin (%) Profit After Tax (PAT) PAT Margin (%)

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4Q11 Profit and Margin

Sustainable EBITDA margin due to effective product mix & better operation control..contributing to higher NTA & EPS comparing to previous quarter
Description EBITDA EBITDA Margin (%) Net Tangible Asset (NTA) NTA per share (RM) EPS (sen) 4Q2011 RM '000 12,452 13.9% 269,113 1.23 0.42 3Q2011 RM '000 19,232 15.8% 273,739 1.23 5.71 Growth (%) -35.3% -1.9% -1.7% 0.0% -92.6% 4Q2011 RM '000 12,452 13.9% 269,113 1.23 0.42 4Q2010 RM '000 20,955 19.6% 234,784 1.07 2.11 Growth (%) -40.6% -5.7% 14.6% 15.0% -80.1%

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Group Revenue Trend

Growth boosted by higher production capacity , global demand growth of rubber glovespremium product mix play a key role
Gross Revenue (RM 'mil) 497.2 440.6 328.4 223.3 127.6 60.5 141 150.8

2004

2005

2006

2007

2008

2009

2010

2011

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Group Profit Trend

Improving operating profits from 2007 spurred by effective operation and cost control..
Group Profit (RM 'mil) 100 80 R M 'm il 60 40 20 0 EBIT PAT EBIT Margin PATMI Margin 2004 3.4 -0.7 5.5% 0.0% 2005 7.8 4.3 6.1% 3.4% 2006 7.3 3.9 5.1% 2.8% 2007 6.0 4.9 4.0% 3.2% 2008 18.5 15.2 8.3% 6.8% 2009 58.5 52.1 17.8% 15.9% 2010 89.8 65.5 18.0% 13.2% 2011 63.3 44.0 14.4% 10.0% 20.0% 15.0% 10.0% 5.0% 0.0%

M argin

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Earnings Per Share Trend

Strong track record of growth and financial performance

Earnings Per Share (Sen)

31.21 26.07 19.62 24.68 19.80 16.94

7.72 2.18 -0.34 2 2.47

2004

2005

2006

2007

2008

2009

2010

2011

Adjusted EPS

Diluted EPS
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4Q11 BALANCE SHEET

Strong and healthy balance sheet with much financial flexibility for expansion
Descriptions Fixed assets, other investment & goodwill Inventories Trade receivables Cash and bank balances Shareholders equity Total borrowings (short and long term) As at 31.12.11 RM mil 256.0 76.6 50.7 55.7 269.1 101.4 As at 30.09.11 RM mil 257.9 64.0 78.6 64.8 273.7 112

Net Cash Flow from Operating Activities Free Cash Flow

18.4 2.4

21.1 1.2

Trade Payables cycle (days) Net Gearing Return on Average Shareholders Equity (Annualised) Return on Average Total Assets (Annualised)

52 0.18x 13.1% 8.1%

53 0.17x 23.2% 13.5%

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Group Financial Ratios

Healthy Financial Ratios indicating good financial health..

YTD 2011 Description

Receivables cycle (days) Inventory cycle (days) Return on Assets (ROA) Return on Equity (ROE) Interest cover Gearing ratio (Net) Current ratio

FY 2008 63 57 7.8% 12.6% 5.6x 0.47 1.1x

FY 2009 46 38 5.1% 9.8% 9.9x 0.35 1.1x

FY 2010 39 34 22.5% 38.2% 16x 0.13 1.6x

Q1 54 45 4.0% 6.6% 11x 0.14 1.8x

Q2 54 37 4.7% 8.3% 14x 0.16 1.7x

Q3 58 47 5.8% 3.4% 9.2x 0.17 1.7x

Q4 51 77 2.0% 3.3% 6x 0.18 1.2x

FY 2011 54 52 4.1% 5.4% 10x 0.16 1.6x

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4Q11 Cost Structure

Sustaining the effective cost structure due to due to effective operation control, cost saving measures and enabled by being a single location manufacturer..
Fu el 10% Latex 32%

Cost Structure (in % of Total Production Cost)

Chemical 8% Labou r 5% Packaging 3% Overhead and other 9%

Nitrile 33%

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Dividend Payout

First dividend payout in 1Q09.1Q10 payout 2.5 sen, 2Q10 further payout 2nd interim dividend of 2.5 sen., final tax exempt dividend of 2.5 sen for 2010, the Group is set for consistent dividend payout in the future..
Financial Year 2009 Dividend (%) 2% 2% 5% 5% 5% 5% 3% Value (RM'000) 1,947 1,973 5,271 5,445 5,552 5,553 *3,332 29,073

Description 1st interim tax exempt dividend 2nd interim tax exempt dividend 1st interim tax exempt dividend 2nd interim tax exempt dividend Final tax exempt dividend 1st interim tax exempt dividend Final tax exempt dividend

Payment date 12.06.2009 16.12.2009 05.07.2010 05.10.2010 18.07.2011 05.01.2012 TBA

2010

2011 Total
* Estimated

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Key Industry Trends

Half of global supply met by 5 Malaysian companies not a sunset industry for these big players, the Company is riding on these key industry trends
Global epidemic diseases (H1N1, Bird flu, SARS) Increased awareness in healthcare providers & implementation of higher hygiene standards and practices Trend of increasing healthcare budgets worldwide Aging population US Healthcare Reform Healthcare revamp in developing countries (China, India) Healthcare regulation

Rising Threat of Global Health Scare

Rising Healthcare Expenditure

Greater consolidation in the pipeline Stronger players to capture vacuum left by exiting smaller peers Higher economies of scale Operational efficiency Better bargaining power

Industry Consolidation To Oligopolistic Market

Increasing Trend of Outsourced Manufacturers

Enables MNCs to focus on Core business Brand building Market development OEM rubber glove manufacturers to play strategic role to MNCs

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Industry Challenges

Maintaining highest level of sensitivity and awareness on the foresee and unforeseen industry challenges ahead, adopting contingency strategies to mitigate the impact of the challenges.

Latex price fluctuation Volatility of raw material prices continue to impact glove manufacturers. Prices for Nitrile Latex is increased by 36% from 1Q11 to 4Q11.

Currency exposure Sales proceed in USD. USD exchange rate is still weak.

Tighter gloves inspection in medical sector More stringent US FDA inspection criteria, from AQL4.0 to AQL2.5 at entry started December 2009.

Constrain in power supply Limited supply in natural gas posing threat to capacity expansions of Malaysia glove manufacturers.

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Raw Material Price & Forex Trend

Sen/kg 15.0 Average Latex Price from Dec 2007 - Dec 2011
Highest 10.87

Persistently rising prices of raw materials raising concerns. Although higher prices effectively passed to customers . still it is affecting gloves consumer behaviors
MYR 4.00 Average USD vs. MYR Forex

10.0

5.0

Lowest 3.350

Current 6.713

0.0 Dec-07 Dec-08 Dec-09 *As at 31 January 2012 Source : Malaysia Rubber Board Dec-10 Dec-11 Dec-12

RM 8.00 6.00
Current 3.033

Nitrile Latex Unit price (MYR)

Highest 6.322

Highest 3.708

3.50

4.00 2.00

3.00

Lowest 3.800

Current 4.442

M ar

M ay

Jul

Feb

Apr

Jun

Aug

Sep

Jan

Oct

Nov

2007

2008

2009

2.50 Dec-08 Dec-09 Dec-10 *As at 31 January 2012 Source : www.exchange-rates.org

Dec-11

Dec-12

2010

*As at 31 December 2011 Source : Company Data

2011

Dec

Lowest 2.963

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Strong Growth

Growth Strategies
High Performance
Strong Growth by focuses in capacity expansion and expansion of market share through market development

Market share expansion

Increase overseas customer base by participating in trade missions and building Latexxs image in international arena, particularly in other regions besides the North America Tie-up with more MNCs for OEM manufacturing by leveraging on existing experience with Ansell, Cardinal Health and Kimberly Clark Corporation for more OEM customers Strategically venturing into the nonmedical markets in all regions

Continue efforts on product improvement, offering and delivering value to customer

Developing and reaping first mover advantage with unique positioning thru innovation and highly demand product

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Strong Growth

Strategic expansion plans with massive land banks of 50 acres, all in one location, well ahead of the planned capacity expansion, having already achieved the 2011 target of manufacturing 9 billion gloves per annum, under the current expansion plan, a total of 89 lines are already in operation.
For future construction

Plant 1: 28 lines running now

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Product Expansion

Continuous product improvement and expansion aiming to offer and delivery more value to customers, sharing the achievement with our customers.
Successfully launched of 2.5 gram nitrile gloves, suitable for the use in non-medical sectors, lower price compare to lower end NR powdered gloves, positioning as perfect substitute product for lower end NR powdered gloves in the non-medical sectors, such as food handling, personal care, beauty care, etc. Successfully launched of 3.0 gram nitrile gloves, suitable for the use in both medical and non-medical sectors, lower price compare to lower end NR powdered gloves and is the perfect substitution for lower end NR powdered gloves Successfully launched of 3.5 gram nitrile gloves, suitable for use in medical sectors, greater value compare to medical used natural rubber gloves

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Product Expansion

Aggressively venturing into the non-medical market and other regions beside the North America...
Aggressively venturing into the non-medical market, i.e. by offering the ultra thin nitrile product range to the food handling, beauty care, personal care, industrial and other non-medical sectors Intensify marketing efforts on other regions besides the North America market, i.e. Europe, Middle East, Japan, India, China , South America, etc.. Adopting high impact penetration into the glove market of these regions through active participation in trade-shows in both advance and emerging regions

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Strategic Positioning with Breakthrough Tech

Developing and reaping the first mover advantage with unique position thru innovative and highly demand product, premium quality powder free natural rubber gloves with unquantifiable protein level target to be commercialized by 2011.
JV with Budev B.V., owner of the breakthrough technology use to reduce the major allergens that cause protein allergy in natural rubber gloves Exclusive rights to JV vehicle, Total Glove Company Sdn Bhd to apply and commercialize the patented method (MPXX) in natural rubber examination and surgical glove A major breakthrough in the existing global rubber gloves industry, targeting to commercialize by 2011 Premium pricing, expected to boost earnings and margins by 2012

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Investment Merits

Poised to post fastest growth amongst peers, the strategic factors indicating why invest in Latexx....
Industry prospects remain bright
Global demand growing faster than expansion of production capacity Health scare and best practice awareness to boost demand

Strong and solid business fundamentals

Centralized location with economies of scale Effective operation control acknowledged by industry players Stringent quality control, defect rate of 1%, lower than the industry average of 1.5-2.5% State of art facilities, 65% of current production lines are less than 2 years old, remaining upgraded In-house technology to design highly flexible and high power machines, equipment and process

Healthy cash flow position

Strong recurring income stream attributed by superior network support with large MNC accounts Prompt payment resulted in low trade receivables cycle

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Investment Merits

Rationales why Latexx as an investment choice as today ..

Product Innovativeness
The Ultra thin nitrile gloves of 2.5g, 3.0g and 3.5g for the medical and non-medical sector The commercialization of the powder free latex gloves with unquantifiable protein level under the FITkit testing method Long-established clientele consisting of world-renowned medical supply providers, resellers and distributors Low cost structure gives Latexx cost advantage Competitive edge over peers powered by high quality standard Prime beneficiary to the increasing number of MNCs outsourcing their glove manufacturing businesses Continuous expansion driven by committed management Future capacity increase enables Group to grab market share in overseas markets

Favorable position as OEM vendor

Well-executed expansion plan

Valuation underappreciated in view of earnings growth

Earnings of 26.07 sen/share in FY09, 31.21 sen/share in FY10, 19.80 sen/share in FY11

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Awards & Accolades

Latexxs excellence performance and continuing efforts in creating shareholder values were proven and acknowledged

KPMG Shareholder Value Award 2010 Malaysia No. 2 in Sector Rank (The Industrial MarketManufacturing Sector) No. 21 in Top 100 Rank

Forbes Asia Best Under A Billion Award 2010 Among 9 of the Malaysian companies in the award list.

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Awards & Accolades

Latexxs excellence performance and continuing efforts in creating shareholder values were proven and acknowledged

FinanceAsia Asias Best Managed Companies : India and Malaysia Best small-cap.

Forbes Asia Best Under A Billion Award 2011 Among 14 of the Malaysian companies in the award list.

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THANK YOU
Please contact us if you have any questions btlow@latexx.com.my llliew@latexx.com.my website: www.latexx.com.my

DISCLAIMER
This presentation slide show is for information purposes only. The information presented above is produced by Latexx Partners Berhad solely for the use of its recipient. Any unauthorized use, disclosure or copying is strictly prohibited. We accepts no responsibility or liabilities for any losses or damages arising in any way from use of this presentation slide show or its contents.