Riverstone Holdings Limited · SGX:AP4
Riverstone — Q3 2023 Earnings Presentation
32 slides from Riverstone's earnings presentation, 2023
Slide 1: Riverstone Holdings Ltd Corporate Presentation 3Q2023
Riverstone Holdings Ltd Corporate Presentation 3Q2023
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Agenda
• Business Overview • Key Milestones • Group Structure • Financial Highlights • Investment Merits • ESG Presentation 3
Slide 4: Manufacturing
Manufacturing High Tech Cleanroom Gloves Premium Healthcare Gloves Cleanroom Consumables 4
Slide 5: Key Milestones
1989 1994 2006 2009 2013 2020/21 5
Slide 6: Group Structure
Riverstone Holdings Limited (Investment Holding) Riverstone Resources Riverstone Cleanroom Riverstone Resources Eco Medi Glove Sdn Protective Technology Sdn Bhd Products Sdn Bhd (Singapore) Pte. Ltd. Bhd Co. Ltd. Cleanroom & (fka Riverstone Industrial Distribution Cleanroom Cleanroom & Cleanroom Glo
Slide 7: Malaysia Facilities
MALAYSIA (TAIPING) MALAYSIA (BUKIT BERUNTUNG) RIVERSTONE RESOURCES SDN BHD RIVERSTONE RESOURCES SDN BHD MALAYSIA BUKIT BERUNTUNG) MALAYSIA (TAIPING) RIVERSTONE CLEANROOM PRODUCTS SDN BHD ECO MEDI GLOVE SDN BHD 7 fka RIVERSTONE INDUSTRIAL PRODUCTS SDN BHD
Slide 8: China and Thailand Facilities
CHINA THAILAND RIVERSTONE RESOURCES (WUXI) COMPANY LIMITED PROTECTIVE TECHNOLOGY COMPANY LIMITED 8
Slide 9: Business Segment
BUSINESS SEGMENT 01. CLEANROOM BUSINESS 02. HEALTHCARE BUSINESS @ Cleanroom gloves VY) Examination gloves Ss) Cleanroom consumables ® Food grade gloves Q Personal protective equipment
Slide 10: Cleanroom Business
}O1 Introduction Cleanroom gloves: To protect semiconductor products from contamination, corrosion & ESD. 03] Business Model (i) Riverstone is an own-brand manufacturer (OBM), developing high tech cleanroom gloves that’s sold directly to customers via regional offices (ii) Riverstone provides soluti
Slide 11: Healthcare Business
}O1 Introduction Healthcare gloves offer users a protection barrier against biohazards whilst performing general medical practices. 03] Business Model (i) Riverstone develops in-house & produce specialty gloves (ii) Riverstone is an OEM for selected customers HEALTHCARE BUSINESS 02 Product Suite + P
Slide 12: 9M2023 and 3Q2023 Financial Highlights
9M2023 3Q2023 (RM'000) (RM'000) 684,962 222,801 204,557 77,784 194,760 73,513 152,850 59,267 *Totaled figures may have some discrepancy due to rounding 12
Slide 13: Revenue by Quarter
3,500.0 3,082.5 3,000.0 410.2 2,500.0 652.8 1,829.8 Q4 2,000.0 Q3 Q2 Q1 987.2 1,500.0 720.8 1,259.5 988.9 235.2 1,000.0 257.4 482.3 270.0 685.0 251.3 352.0 222.8 1,032.3 500.0 347.3 239.7 224.2 402.3 240.5 279.4 238.0 0.0 2019 2020 2021 2022 2023 13
Slide 14: Gross Profit by Quarter
2,000.0 1,906.8 154.4 1,800.0 1,600.0 357.2 1,400.0 1,200.0 Q4 686.9 Q3 1,000.0 897.6 Q2 Q1 800.0 448.3 600.0 450.3 70.8 400.0 708.3 251.6 91.2 198.9 204.5 133.8 200.0 52.6 77.8 51.4 130.6 154.5 64.8 48.3 46.6 67.1 61.9 0.0 2019 2020 2021 2022 2023 14
Slide 15: Profit Before Tax by Quarter
1,600.0 1,417.9 1,400.0 110.8 1,200.0 266.4 1,000.0 Q4 Q3 800.0 518.0 Q2 Q1 647.3 600.0 331.1 400.0 314.4 42.0 522.7 178.6 63.5 152.9 200.0 130.4 100.2 32.1 59.3 35.6 90.9 108.7 46.9 32.5 30.2 46.6 46.7 0.0 2019 2020 2021 2022 2023 15
Slide 16: Net Profit by Quarter
1,700.0 1,569.8 45.9 1,500.0 449.0 1,300.0 1,100.0 Q4 900.0 Q3 Q2 702.7 600.4 Q1 700.0 296.0 500.0 398.5 105.1 184.5 300.0 53.6 197.8 167.8 474.5 126.7 59.0 47.9 170.5 47.0 81.3 100.0 22.3 113.1 50.6 51.7 57.5 2019 2020 2021 2022 2023 -100.0 16
Slide 17: Dividends Declared and Payout Ratio
Dividends Declared (RM Sen/Share)˜ 50.00 48.00 Dividend Payout Ratio 9M2023 97.0% 45.00 FY2022 160.3% 50.2% 40.00 FY2021 FY2020 55.0% 35.00 34.00 FY2019 42.0% FY2018 38.6% 30.00 FY2017 40.7% 24.00 25.00 FY2016 40.0% FY2015 37.8% 20.00 FY2014 36.0% FY2013 42.4% 15.00 FY2012 49.3% 10.00 10.00 FY2011 4
Slide 18: Advantages & Opportunities
ADVANTAGES & OPPORTUNITIES Competitive Advantages et Extensive R&D a Leading in-house technology Partnership & collaboration with wy (in terms of Electrostatic customers Discharge properties) Soluti id State-of-the-art product ae High barrier to entry for cleanroom olutions provider testing faciliti
Slide 19: Investment Merits
RESILIENT BALANCE SHEET AT ALLTIMES SINCE 2006 INVESTMENT MERITS CONSISTENT DIVIDEND PAYOUT DISTINCTION FROM PEERS + Net cash position + Sustainable positive operating cash flow EXTENSIVE R&D + Consistent payout since listing FLEXIBLE PRODUCTION FACILITIES + 2 sources of revenue (diversified) + High
Slide 20: Recent Challenges
RECENT CHALLENGES Challenges Solutions & Competition from newcomers & * Diversified into 2 sources a Chinese manufacturers 3 (Cleanroom & Medical) (Customer trust) Well-established with tr) Increase in gas, utility and labour cost ea greater experience/expertise Overcapacity of medical gloves in (Ss
Slide 21: ESG Presentation 2023
Riverstone Holdings Ltd ESG presentation 2023 Social Corporate Environmental Compliance Governance 21
Slide 22: Reduce Water Usage
REDUCE WATER USAGE 23%* Using '20 as 19%* baseline 14%* '25 10%* '24 5%* saving target '23 0% '22 '21 '20 *All % water savings are calculated by using '20 as the baseline. Existing Ongoing Future Future REDUCE WATER FREQUENCY OF RAINWATER RECYCLING PROCESS HARVESTING PRODUCT SYSTEM OPTIMISATION COLO
Slide 23: Reduce Electricity Consumption
REDUCE ELECTRICITY CONSUMPTION 10%* Using '20 as 8%* baseline 6%* '25 4%* '24 2%* saving target '23 0% '22 '21 '20 *All % electricity savings are calculated by using '20 as the baseline. Ongoing Ongoing Ongoing Future IMPROVEMENT REDUCE ON PACKING CHILLER FREQUENCY OF IMPLEMENTING AREA FRESH HYBRID
Slide 24: Reduce Wastage
REDUCE WASTAGE Reduce Frequency of Product Colour Changeover Current Colour Options Fewer Colour Options 3 years target Target: reduce waste by 50% '22 '25 "When different product colours are requested, Reduce WASTE is created due to PRODUCT CHANGEOVER" WASTE Reduced Product Colour Options = Fewer C
Slide 25: Environmental: Solar Panel and Biomass
ENVIRONMENTAL + Reduces greenhouse gas emission by approximately 351 tCO e/year. (3 (i) * Biomass is a renewable energy source from byproducts (sawdust, wood v/ chips & palm kernels). * Continuous Emission Monitoring System (CEMS) has been installed to improve emission observations wi 25
Slide 26: Social: Workers' Hostel
• Built our own workers' hostel equipped with gymnasium, indoor sports arena, first aid room, barber shops, grocery shops, and laundry services. 26
Slide 27: Employee Benefits and Training
• Provides fair and competitive • Provides technical and soft skills remuneration with comprehensive training, language classes, and local benefits to our employees cultural adaptation classes to all local and foreign employees. • Periodically rewards employees with incentives on top of annual incre
Slide 28: Education Assistance
• Annual budget allocated to provide our employees' children with payment assistance when school reopens. 28
Slide 29: Board Structure and Committees
BOARD STRUCTURE • COMMITTEES • • • Voluntary Quarterly Financial Reporting • • 29
Slide 30: Management Diversity and ESG Committee
MANAGEMENT DIVERSITY • • ESG COMMITTEE • • • 30
Slide 31: Certifications & Compliances
CERTIFICATIONS & COMPLIANCES @ aniZation ory goon fop rs ES, & IBS &. f : Ex EDA 3 a § 3 So} : ISO) r 2 gf % S — 510(k) eas : 2016 ee 2018 Advancing Sustainability Globally <gpi22t10N fo, so & SEX Iso: Ney’ 9001: 2015 14001:2015 io, yoternar 3]
Slide 32: Thank You
THANK YOU