Top Glove Corporation Bhd. · MYX:TOPGLOV
Top Glove Corporation Bhd — Investor Presentation (July 2018)
24 slides from Top Glove Corporation Bhd's investor presentation, July 2018
Slide 1: Top Glove Corporation Bhd Corporate Presentation
TOP GLOVE CORPORATION BHD Corporate Presentation July 2018 Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100
Slide 2: Top Glove business ethics
Top Glove business ethics Ready, 1 2 3 Claps, 2x 3x 2x Prepared By: Ng Chin Yong @14/07/17 Checked & Verified By: Ng Yong Lin @14/07/17 2
Slide 3: Disclaimer
Disclaim er This document and any related presentations have been prepared by Top Glove Corporation Bhd (the “Company”). This document and any related presentations are being given solely for your information and for your use and may not be taken away, reproduced or redistributed to any other person
Slide 4: Top Glove Corporation Bhd at a glance
Top Glove Corporation Bhd (“Top Glove”) at a glance World’s largest manufacturer of gloves Global leader in Aspion: medical and a transformational surgical gloves acquisition 57.5 billion gloves pa 2,000+ customers Over 17,000 39 factories across 195 employees(1) 618 production countries lines(1) Cu
Slide 5: From humble origins to global leader
From humble origins to global leader Nearly 3 decades of track record of excellence 1991 1994 2001 2002 ▪ Started as a ▪ First overseas foray ▪ Commenced operations in Thailand ▪ Commenced operations in local and established a ▪ Listed on the Second Board of China business marketing arm in the Kuala
Slide 6: Led by an experienced senior management team
Led by an experienced senior management team Tan Sri Dr Lim Wee Chai Dato Lee Kim Meow Lim Cheong Guan Relevant experience Relevant experience Relevant experience ▪ Founded Top Glove in 1991 ▪ Joined Top Glove in 1997 ▪ Joined Top Glove in 2005 Appointed Managing Appointed Executive ▪ Over 30 years
Slide 7: Track Record of Delivering Shareholder Value
Track Record of Delivering Shareholder Value Total dividend payment of RM1.16 billion since listing in year 2001 02 July 2018: RM 12.06 12.0 200 182 182 180 10.0 160 143 8.0 Total Shareholder Return: 140 Dividends (RMmn) 9,718% Share Price (RM) 120 99 99 99 99 6.0 100 27 March 2001: RM 0.13(1) (IPO
Slide 8: Strong industry fundamentals
Strong industry fundamentals Steady growth in global demand for rubber gloves Driven by strong market fundamentals across geographies In billion pieces ▪ As a protective barrier for medical staff, gloves are an indispensable item in the healthcare sector, with increasing customer awareness in develo
Slide 9: Market leader with extensive range of products
Market leader with extensive range of products Extensive products mix applied in diverse industries, with a strong focus on medical / surgical sector Product Sale Key Markets Medical Applications Surgical / industry Industrial Food Market Position Category Contribution 1H18 Sales Volume (including A
Slide 10: Continuous growth in manufacturing capabilities
Continuous growth in manufacturing capabilities Capacity Number of (pieces per Manufacturing Glove type production China annum) lines ▪ 1 Glove Factory Current: Producing: Top Glove: 28 glove factories All 543 lines 52.7 bn ▪ Vinyl gloves Surgical, Aspion: 3 glove factories 75 lines 4.8 bn Nitrile,
Slide 11: Global distribution across 195 countries
Global distribution across 195 countries USA Germany China Distribution ▪ Over 2,000 customers ▪ Comprising distributors across 195 countries ▪ A geographically diverse customer base ▪ An OEM manufacturer in every region ▪ Top 20 customers represent c.25% of total revenue ▪ No single customer contri
Slide 12: Proven track record of growth and profitability
Proven track record of growth and profitability With strong operating cash flows Revenue and growth EBITDA and margins(2) RMmn (x) YoY volume growth 8% 11% 7% 25% 17.6% 18.2% CAGR of 16.5% 13.2% 14.2% 11.5% 3,409 Growth = CAGR of 4.7% 2,889 19.6% 2,511 525 484 Growth = 2,997 442 2,507 36.7% 395 289
Slide 13: Prudent capital management
Prudent capital management Adjusted net debt / (adjusted net cash) position Gearing ratio (D/E) RMmn (x) Adjusted net debt / (180) (304) (71) (95) 1630 0.40x (Adjusted net cash)(1) 0.91x 636 2069 399 376 345 0.22x 0.18x 0.19x 146 224 240 213 191 207 227 248 670 479 31 Aug 15 31 Aug 16 31 Aug 17 31 M
Slide 14: Healthy balance sheet
Healthy balance sheet Proforma In RMmn As of 31 Aug 2017 post Aspion acquisition(1) RMmn USDmn(2) RMmn USDmn(2) Cash and bank balances 240.1 62.1 258.4 66.9 Borrowings 376.4 97.4 1,890.0 489.1 Net debt / (net cash) 136.3 35.3 1,631.6 422.2 Shareholders’ equity 2,003.3 518.4 2,142.0 554.3 Debt / equi
Slide 15: Aspion – A highly synergistic and transformational acquisition
Aspion – A highly synergistic and transformational acquisition Highly synergistic acquisition Top Glove becomes world #1 manufacturer(1) in surgical and medical gloves globally,with 1 leading low-cost and high-techcapabilities 2 Overcome high barriers entry in the surgical gloves market, including r
Slide 16: Becoming the #1 surgical glove manufacturer in the world
Becoming the #1 surgical glove manufacturer in the world(1) ▪ Current surgical glove market is mainly dominated by multi-national corporations ▪ Post-acquisition, Top Glove will be the largest surgical glove producer globally ▪ Potential for capturing more production from MNCs in the future, hence i
Slide 17: Access to new manufacturing knowledge and proprietary materials
Access to new manufacturing knowledge and proprietary materials Access to Top Glove will benefit from Aspion's premium product offering, enhanced by Aspion’s highly specialised Finessis product cutting edge that is expected to lead the trend in preference surgical glove adoption in developed markets
Slide 18: Aspion transaction highlights
Aspion transaction highlights Purchase consideration arrived at after taking into account Salient terms of the transaction risk of the acquisition 1 Profit guarantee: Acquisition ▪ 100% of Aspion Sdn Bhd (“Aspion”) ▪ Guarantee by the Vendor to reimburse the core PAT shortfall in ▪ Adventa Capital Pt
Slide 19: Conclusion
Conclusi on ▪ World’s largest manufacturerof gloves 1 Market leader ▪ Market leadership in all key product segments ▪ Strong growth in usage of rubber gloves historically in developed countries 2 Attractive industry ▪ Future growth potential from emerging markets fundamentals ▪ Continuous growth in
Slide 20: Thank You
TOP GLOVE TOP QUALITY, TOP EFFICIENCY 20
Slide 21: Appendix
TOP GLOVE Appendix 21
Slide 22: Top Glove guiding principles
Top Glove guiding principles Vision: We strive to be the world’s leading manufacturer with excellent quality glove products and services that enrich and protect human lives Corporate To be a world class glove manufacturer by providing Mission: top quality products with excellent services through con
Slide 23: Top Glove strong CSR stewardship
Top Glove strong CSR stewardship Environment Social Employees ISO 14001 Top Glove Foundation Learning & Development ▪ All factories in the process of being ISO 14001 certified ▪ Launched with the objective of providing Transportation ▪ A learning organisation with themotto: funds for the purpose of
Slide 24: Top Quality Top Quality Top Quality
Top Glove group of companies Ready, 1 2 3 TOP GLOVE Top Quality Top Quality Top Quality Claps, 2X 3X 2X Prepared by : QAAdmin (Rev. 6, Date Prepared : 14/7/17) YES! YES! YES! Verified by : Ms. Loo Sun Nooi / QA DGM 24