Top Glove Corporation Bhd. · MYX:TOPGLOV
Top Glove Corporation Bhd — Q3 FY2022 Earnings Presentation
22 slides from Top Glove Corporation Bhd's earnings presentation, Jun 9, 2022
Slide 1: Results Briefing 3rd Quarter Financial Year 2022
1/22 TOP GLOVE CORPORATION BHD Results Briefing 3rd Quarter Financial Year 2022 ended 31st May 2022 Date: 9th June 2022, Thursday Time: 3:15pm to 4:15pm WEATHERING THE EFFECTS OF NORMALIZATION Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR United States : TGLVY
Slide 2: Top Glove Business Ethics Clap
2/22 TOP GLOVE BUSINESS ETHICS CLAP Thumbs Up, Ready, 1 2 3 Claps, 2x 3x 2x Initiated By: Tan Sri Dr. Lim Wee Chai @ 17/07/2017 Revised By: Ng Kai Yee @ 18/05/2021 Verified By: Melissa Cheoh @ 18/05/2021
Slide 3: Top Glove 5 Healthy Wells Clap
3/22 TOP GLOVE 5 HEALTHY WELLS CLAP Thumbs Up, Ready, 1 2 3 TOP GLOVE CLEAN WELL EAT WELL WORK WELL EXERCISE WELL SLEEP WELL Claps, 2x 3x 2x Initiated By: Tan Sri Dr Lim Wee Chai @ 18/05/2021 Prepared By: Andy Ting @ 18/05/2021 HEALTHY! HEALTHY! HEALTHY! Verified By: Melissa Cheoh @ 18/05/2021
Slide 4: Agenda
1 Financial Performance 2 Market Update AGENDA 3 Global Recognition of Sustainability Efforts 4 Going Forward
Slide 5: Weathering the Effects of Normalization
5/22 Weathering the Effects of Normalization Total Sales Volume Sales to the USA from Malaysia continues uptrend with an +13% 1 8% QoQ growth +6% The softer performance due to ASPs normalization and 2 rising production cost 4QFY21 2QFY22 3QFY22 Escalating costs resulted in margin compression as the
Slide 6: 3QFY22 Financial Highlights: The Effects of Normalizing
6/22 3QFY22 Financial Highlights: The Effects of Normalizing 3QFY22 2QFY22 QoQ 9MFY22 RM ‘mil Revenue 1,465 1,449 +1.1% 4,498 EBITDA 124 193 (35.8%) 652 Profit Before Tax 38 112 (66.1%) 410 Profit Net of Tax 29 102 (71.6%) 334
Slide 7: 3QFY22 Key Highlights
7/22 3QFY22 Key Highlights 1. Against a highly challenging backdrop, sales volume grew 6% QoQ on the back of higher sales to the USA from Malaysia and other regions 2. CAPEX deferred for the immediate term and Group continues to align expansion plans with the Demand market conditions 3. Sales to the
Slide 8: Good Sales Volume Growth Despite Challenging Times
8/22 Good Sales Volume Growth Despite Challenging Times Nitrile Gloves Key Highlights: 3QFY22 vs 2QFY22 1. Higher sales volume driven by higher sales to the USA from Malaysia and other regions Sales +17% 2. Lower ASPs due to: Volume a. Ongoing normalization trend b. Imbalance in glove demand and sup
Slide 9: Good Demand for Surgical Gloves; Intense Competition for Vinyl Gloves
9/22 Good Demand for Surgical Gloves; Intense Competition for Vinyl Surgical Gloves 3QFY22 vs 2QFY22 Key Highlights: Sales +20% 1. Demand continued to grow following the resumption of elective surgeries Volume post pandemic 2. Top Glove’s sterilization plant which commenced in Mar 22 has eased the A
Slide 10: Diverse Range of Products to Align with Rapidly Changing Markets
10/22 Diverse Range of Products to Align with Rapidly Changing Markets Nitrile Sales Volume Continues to Show an Increasing Trend Driven by the Sales to the USA from Malaysia, Western Europe, Asia and Latin America Nitrile gloves Natural rubber powdered gloves Natural rubber powder-free gloves Vinyl
Slide 11: Reverse Downtrend in Raw Material Prices
11/22 Reverse Downtrend in Raw Material Prices Nitrile & NR Latex Prices 3QFY22 Top Glove’s Cost Structure USD/KG 2.42 Electricity 2.3 3% Packaging 7% 2.04 NR Latex Chemical 8% 1.8 1.66 1.58 Raw Material Labour 12% 44% 1.3 1.22 1.11 Fuel 1.17 1.18 1.08 Nitrile Other 13% 0.8 Jun/22 Overhead Dec/19 Ap
Slide 12: Deferred Some Expansion Plans to Align with Demand and Supply
12/22 Deferred Some Expansion Plans to Align with Demand and Supply Top Glove’s Total Production Capacity Top Glove’s Manufacturing Capabilities In Bil Pcs Total: 37 Glove Factories + 12 Non Glove Factories Capacity Dec 22 Dec 23 Dec 24 Dec 25 Current Capacity: 100 bil pcs p.a. with 812 Production L
Slide 13: Market Update
2 Market Update
Slide 14: 3QFY22 Total Sales Volume Grew 6% QoQ from 2QFY22
14/22 3QFY22 Total Sales Volume Grew 6% QoQ from 2QFY22 3QFY22 vs 2QFY22 Sales Volume Comparison by Region North America Western Europe Eastern Europe Asia ex Japan 1.4% 20% 10% 12% Sales to the USA EASTERN from Malaysia NORTH WESTERN EUROPE continues to show AMERICA EUROPE JAPAN an increasing MIDDL
Slide 15: Sales Volume by Region Well Diversified Across All Markets We Serve
Sales Volume by Region 15/22 Well Diversified Across All Markets We Serve Different Regions Market Needs are Well Supported by Our Diversified Products Range Asia ex Japan Eastern Europe 20% 24% Eastern Europe Africa 3% Africa 3% Asia ex Japan 20% Japan 6% Japan 5% 19% 3QFY22 2QFY22 Middle East Midd
Slide 16: Global Recognition of Sustainability Efforts
Global Recognition of 3 Sustainability Efforts
Slide 17: Top Glove's Sustainability Roadmap FY2022 to FY2025
17/22 Top Glove’s Sustainability Roadmap FY2022 to FY2025 FY2025 FY2023 FY2024 FY2022 To Achieve all Sustainability Targets based on FY2021 Scope 1 and 2 emission Further expand Scope 3 Submission of the Net Zero Disclose internal carbon pricing; reduction targets are set & to reporting with Supply
Slide 18: Integrated Sustainability Policy to Uphold Best Practices
18/22 Integrated Sustainability Policy to Uphold Best Practices Scope of The Top Glove Sustainability Policy will serve as a guide Top Glove Traceability Committee Policy was established in April 2022 to to ethical and responsible sourcing and procurement ensure compliance and adherence activity, se
Slide 19: Going Forward
4 Going Forward
Slide 20: Outlook: Challenging Environment to Persist in the Near Term
20/22 Outlook: Challenging Environment to Persist in the Near Term 1. Global glove demand set to continue increasing as COVID 19 transitions into an endemic phase and gloves remain as an essential item in the healthcare sector 2. Higher demand growth rate from emerging markets where glove consumptio
Slide 21: Top Glove Customer Centric Clap
21/22 TOP GLOVE CUSTOMER CENTRIC CLAP Thumbs Up, Ready, 1 2 3 TOP GLOVE Top Quality Top Value Top Service Claps, 2x 3x 2x Initiated By: Tan Sri Dr Lim WC @ 17/01/2022 Prepared By: Ng Kai Yee @ 17/01/2022 IMPROVE! IMPROVE! IMPROVE! Verified By: Melissa Cheoh @ 17/01/2022
Slide 22: Thank You Have A Nice Day!
Thank You Have A Nice Day! Scan or click to access TG Investor Relations webpage www.topglove.com | invest@topglove.com.my | +603 3362 3098