October 12, 2020
Daiwa PI Partners Co. Ltd.
Daiwa Corporate Investment Co., Ltd.
Attention
This is an unofficial translation of an excerpt of the press release issued on October 12, 2020, Daiwa PI
Partners Co. Ltd.. The original press release is in Japanese.

Daiwa Myanmar Growth Fund to Invest in Commercial Plastics Holding Pte. Ltd.
in Singapore/Myanmar

Daiwa Myanmar Growth Fund, a fund managed by Daiwa PI Partners Co. Ltd. (hereinafter referred
to as “DPI”), and Daiwa Corporate Investment Co. Ltd., together with Myanmar Opportunities Fund II, afund managed by Delta Capital Myanmar, made an investment of USD 12.6M into Commercial Plastics
Holding Pte. Ltd. (hereinafter referred to as “CPC”), a plastic bottles recycler in Myanmar. This deal is thefirst private equity investment for Daiwa Myanmar Growth Fund.
This transaction does not fall under the timely disclosure standards set by the Financial Instruments
Exchange for Daiwa Securities Group Inc., which is our parent company.
CPC, through its subsidiary in Myanmar, recycles wasted plastic bottles. Recycle plastic market
has been growing globally, encouraged by national level regulations and companies’ initiatives on
promoting the use of recycle materials, as well as the high awareness for environmental consideration. InMyanmar, with rising disposable income, the polyethylene terephthalate (“PET”) consumption per capita isexpected to grow at 10-15% per year. The country also has a relatively high PET bottle collection rate of64%, leading to favorable opportunities for the recycling plastic market.
This investment is contributing to achieving “Goal 12: Ensure Sustainable Consumption andProduction Patterns” of United Nation’s Sustainable Development Goals (SDGs) by promoting thecollection of used plastic bottles for recycling and expanding the use of recycled product. In addition, CPC’s
recycled PET will serve as a viable alternative to imported virgin PET, reducing Myanmar’s reliance onimports.
The investment will enable CPC to expand its offering and increase its recycling capacity with stateof-the-art equipment. The company will become the first food-grade bottle-to-bottle recycler in Myanmar
with high operating standards and supply to both domestic and overseas PET bottle converters andbeverage manufacturers. In addition to its financial support, DPI will hold a board seat to support CPC’sbusiness expansion.

Daiwa Securities Group has proven strong initiatives on addressing social issues through its
continuous efforts in product development and provision for more than ten years. To accelerate ourinitiatives, Daiwa established the SDGs Promotion Committee chaired by Seiji Nakata (President and CEO)and recently assigned Keiko Tashiro (Deputy President) as the Head of SDGs. This investment is one of
our ongoing efforts to achieve SDGs and to create a sustainable society.

1. Summary of CPC
Singapore Entity

Commercial Plastics Holding Pte. Ltd.

Address in Singapore

80 Robinson Road #02-00 Singapore 068898

Myanmar Entity

Commercial Plastics Company Limited

Address in Myanmar

Plot 119, Minaye Yar Road, Shwe Than Lwin Industrial Zone, Hlaing Thar
Yar, Yangon, Myanmar

Business Description

Plastic bottles recycler in Myanmar – collects, sorts, washes, and grinds
used PET bottles into PET flakes for exports

2. Summary of Daiwa Myanmar Growth FundName

DAIWA Myanmar Growth Fund L.P.

Investment Target

Growing companies operating in Myanmar

Total Fund Commitment

USD 30 million

General Partners

Daiwa PI Partners Co. Ltd. andDaiwa Corporate Investment Co., Ltd.

(Reference) Daiwa Securities Group's SDGs initiatives：
https://www.daiwa-grp.jp/english/sdgs/?cid=ad_eir_ensdgspress