Top Glove Corporation Bhd. · MYX:TOPGLOV
Top Glove Corporation Bhd — Investor Presentation (January 2018)
20 slides from Top Glove Corporation Bhd's investor presentation, Jan 3, 2018
Slide 1: Top Glove Corporation Bhd Investor Presentation
TOP GLOVE CORPORATION BHD Investor Presentation 03 Jan 2018 Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100
Slide 2: Modest Beginnings
Modest Beginnings • Founded in 1991 by Tan Sri Dr Lim Wee Chai. Family owned a small rubber plantation and was involved in the rubber trading business. Top Glove commenced operations with 1 factory, 3 production lines and 100 staff. At that time, there were around 250 glove manufacturers in Ma
Slide 3: Steady Global Demand Growth
Steady Global Demand Growth World population estimate at 7.5 bil, average usage 26.8 pcs per population bil pcs Estimate global demand growth at 6% to 8% pa 220 201 200 190 180 180 173 160 160 153 136 135 140 123 127 128 120 110 103 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 4: An Industry with Excellent Growth Potential
An Industry with Excellent Growth Potential Widely Used in Developed Nations, but Underused in Emerging Countries % of World Population % of Global Glove Consumption Developed countries (USA, EU29 and Japan) 18% 70% Other regions 82% 30% % of Global Glove Consumption by Region Source: International
Slide 5: Projected Rubber Glove Consumption Per Capita in 2017
Projected Rubber Glove Consumption Per Capita in 2017 Source: MREPC - Private Sector Consumption of Medical Gloves Page 5 / 20
Slide 6: Top Glove Global Customer Base
Top Glove Global Customer Base • Over 2,000 customers and growing. • Comprising mainly distributors across 195 countries. • A geographically diverse customer base. • A preferred OEM manufacturer in every region. • No single customer contributes more than 4% of revenue. Sales volume by geography Regi
Slide 7: Key Industry Drivers
Key Industry Drivers 1. An indispensable item in the healthcare sector As a protective barrier 2. Increasing hygiene standards and healthcare awareness Non-medical sector in developed countries Medical sector in developing countries 3. A growing ageing population With the elderly being more
Slide 8: Aligning Our Product Mix with Market Demand
Aligning Our Product Mix with Market Demand Nitrile glove Latex powdered glove Latex powder-free glove Vinyl / TPE / CPE glove Surgical glove 1QFY18 product mix by sales quantity Towards a more balanced product mix in line with global demand. Nitrile increased by 1012% over a 8 years period. Page
Slide 9: 33 Manufacturing Facilities Regionwide
33 Manufacturing Facilities Regionwide • 29 glove factories | 550 production lines | 51.9 billion pcs p.a. capacity • 2 latex concentrate/processing plants supplying 60% to 70% of our latex requirements • 1 porcelain hand mold factory • 1 chemical factory • Steadily expanding via organic and non-org
Slide 10: Blueprints for Expansion
Blueprints for Expansion • Boosting nitrile capacity in tandem with growing demand • Faster, more efficient and technologically advanced production lines • Increased automation throughout the manufacturing process • On-going facility optimization initiatives which include the construction of highly-
Slide 11: Cost breakdown
Cost breakdown Natural Rubber Gloves Nitrile Gloves • A cost pass-through mechanism whereby both cost increases and savings to be shared out with customers. • Continuously improving cost efficiency through intensive R&D initiatives. Page 11 / 20
Slide 12: Raw Material Price Trend
Raw Material Price Trend Natural rubber latex price trend (RM/kg) Correlation between natural rubber latex, nitrile latex and crude oil prices (USD/kg) Note: NR Latex & Nitrile Latex based on 60% TSC Page 12 / 20
Slide 13: Latest 1Q18 results
Latest 1Q18 results 1Q18 1Q17 Variance 4Q17 Variance 1 Sep 17– 1 Sep 17– (1Q18 vs 1 Jun 17– (1Q18 vs 30 Nov 17 30 Nov 17 1Q17) 31 Aug 17 4Q17) Total sales (RM ’ mil) 938.1 785.6 19.4% 902.4 4.0% EBITDA (RM ’ mil) 151.3 111.5 35.7% 127.2 18.9% EBITDA margin 16.1% 14.2% 14.1% PBT (RM ’ mil) 122.0 89.8
Slide 14: Steady growth since listing
Steady growth since listing Revenue CAGR PAT CAGR Average PAT margin Past 17 years since Past 17 years since Past 17 years since listing in 2001 : listing in 2001 : listing in 2001 : 22.1% For FY ended 31 August 20.9% 9.5% 1QFY18 (in RM ’ mil) 2010 2011 2012 2013 2014 2015 2016 2017 (unaudited) Sale
Slide 15: Healthy balance sheet
Healthy balance sheet 1QFY18 1QFY17 30 Nov 17 30 Nov 17 Net cash flow from operating activities (RM ’ mil) 86.1 41.6 Capital expenditure (RM ’ mil) 102.0 52.8 As at 30 Nov 17 As at 30 Nov 16 Net cash and short term investment (RM ’ mil) ** 80.0 259.5 Shareholders equity (RM ’ mil) 2,105.9 1,906.9 Ne
Slide 16: Dividend and payout ratio
Dividend and payout ratio Dividend Policy : Payout ratio of 50% of PAT after MI Total dividend payment of RM1,054 mil since listing in 2001 Note: Dividend per share has been adjusted with the bonus issues Page 16 / 20
Slide 17: At 6,514% since IPO (16 years)
At 6,514% since IPO (16 years) With initial investment of 1,000 shares made during initial public offering price of RM2.70 on 27/03/01, the return is as follows: *share Number of Total market Accumulated Cost of Capital Total s/holders Date Price shares held Value dividend investment appreciation re
Slide 18: Guiding principles for growth and success
Guiding principles for growth and success Top Glove’s Business Direction, Ethics, Rules & Philosophies Must know, Must do, Must teach Business direction Business philosophies 1. To produce consistently high quality gloves at efficient low cost. 1.We work for our customers; 2.We take care of the inte
Slide 19: Management Focus Moving Forward
Management Focus Moving Forward • To use technology and further automate production line to reduce workers & improve quality and efficiency. • Computerize the whole company’s operation/ manufacturing. • To invest and recruit staff that are: i. Intelligent ii. Energetic iii. Integrity • Capture growt
Slide 20: Thank you
Thank you Q & A Session www.topglove.com | invest@topglove.com.my | +603 3362 3098 Page 20 / 20