Scientex : partners Taisei Lamick Japan to expand into liquid and paste packaging

PRESS RELEASE

Scientex partners Taisei Lamick Japan to expand into liquid and paste packaging

• Expands portfolio of packaging solutions for F&B, FMCG, healthcare and hygiene- related sectors for regional clientele
• Invests RM63.8 million for 80.2% stake in Taisei Lamick Malaysia Sdn Bhd

Shah Alam, Selangor, Malaysia, 2 September 2022 - Global packaging manufacturer and leading property developer Scientex Berhad (Scientex, 森 德 公 司 , Bloomberg: SCI MK) is partnering Japan's leading producer of liquid and paste packaging systems, Taisei Lamick Co., Ltd (Taisei Lamick), to expand its market share in the region.

Tokyo Stock Exchange-listed Taisei Lamick is involved in the manufacturing and sale of plastic films, retort pouches and pouches with zippers for automatic filling with liquids and pastes, as well as manufacturing and sale of "DANGAN" auto fillers for liquids and pastes, peripheral devices and technical services.

Its subsidiary Taisei Lamick Malaysia Sdn Bhd (TLM) is primarily involved in the manufacturing and sale of printed and laminated flexible light packaging materials for food and beverage (F&B) and Fast Moving Consumer Goods (FMCG) products.

Scientex's wholly owned subsidiary Scientex Packaging Film Sdn Bhd today announced that it had entered into a share sale agreement (SSA) with Taisei Lamick to acquire 8,100 ordinary shares representing 80.2% equity interest in TLM for RM63.8 million cash consideration. Upon completion of the SSA, Scientex will hold 80.2% equity in TLM, while Taisei Lamick will hold the remaining 19.8% equity.

"This partnership is a meaningful step for Scientex on multiple fronts. Notably, Taisei Lamick is the No. 1 producer for liquid and paste packaging in Japan. This collaboration, leveraging on the strong reputation and collective strengths of Scientex and Taisei Lamick, is poised to bring industry-definingcost-competitive quality products to regional clientele; and hence potentially expanding our flexible packaging market share.

Foremost is the fact that it would enable Scientex to gain an immediate foothold into the fast-growing film business that is used in liquid and paste packaging, thus enhancing our offering of diversified and customised flexible packaging products especially in the F&B sector.

It will also provide opportunity for us to expand our capability into producing customised healthcare and hygiene-related packaging, and widen the range of value-added packaging solutions in the FMCG sector."

Mr. Lim Peng Jin (林炳仁),

CEO, Scientex Berhad

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The proposed acquisition is to be funded by internally-generated funds and/or bank borrowings, and is not subject to the approval of Scientex shareholders and government authorities in Malaysia.

Barring unforeseen circumstances, the proposed acquisition is expected to be completed in the second half of the year 2022, and anticipated to contribute positively to the earnings and net assets of Scientex for the financial year ending 31 July 2023.

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About Scientex Berhad (森德公司, www.scientex.com.my)

Scientex Berhad (Scientex) is a leading manufacturer in flexible plastic packaging and a prominent developer of affordable homes in Malaysia.

Established in 1968, our drive to achieve continuous growth has seen us become one of the world's top manufacturers of stretch film and an end-to-end flexible plastic packaging producer with a presence across the packaging value chain, from stretch films, base films and printed films to bags and multi-layered flexible plastic packaging solutions used in industrial and consumer packaging.

To date, Scientex has 17 manufacturing plants across Malaysia, Vietnam, Myanmar and the United States of America (USA); as well as sales offices in 9 countries, namely, Australia, Indonesia, Japan, Myanmar, New Zealand, Philippines, Singapore, Thailand and USA. Approximately 70% of its packaging products are exported to over 60 countries worldwide.

Scientex's property arm has township development projects in Pasir Gudang, Kulai, Skudai, Senai, Pulai, and Kota Tinggi (all in Johor), Ayer Keroh, Durian Tunggal and Jasin (all in Melaka), Rawang and Kundang Jaya (both in Selangor), Tasek Gelugor (Penang), as well as Ipoh (Perak). The Group recently acquired a 139-acre land in Cheras (Selangor), 158-acre and 1,357-acre lands in Jasin (Melaka), 109-acre land in Seremban (Negeri Sembilan), 202-acre land in Pulai (Johor), 161-acre land in Sungai Petani (Kedah) and 343-acre land in North Seberang Perai (Penang). The Group is also in the process of acquiring 219-acre land in Ipoh, Perak, 251-acre land in Jenjarom, Selangor and 960-acre land in Tebrau (Johor). To date, Scientex has delivered RM7.3 billion worth of properties and has projects-in-hand of RM2.8 billion.

Issued for and on behalf of SCIENTEX BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd

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