Top Glove Corporation Bhd. · MYX:TOPGLOV
Top Glove Corporation Bhd — Investor Presentation (July 2022)
28 slides from Top Glove Corporation Bhd's investor presentation, Jul 14, 2022
Slide 1: Top Glove Investor Presentation: Weathering the Effects of Normalization
TOP GLOVE CORPORATION BHD Investor Presentation 14th Jul 2022 WEATHERING THE EFFECTS OF NORMALIZATION Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR United States : TGLVY Page 1/28
Slide 2: Top Glove Business Ethics Claps
TOP GLOVE BUSINESS ETHICS CLAPS 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 @ 21/09/2020 Verified By: Melissa Cheoh @ 21/09/2020 Page 2/28
Slide 3: Top Glove 5 Healthy Wells Claps
TOP GLOVE 5 HEALTHY WELLS CLAPS 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 Page 3/28
Slide 4: Top Glove at a glance
Top Glove Corporation Bhd., ‘Top Glove’ at a glance The World’s Largest Manufacturer of Gloves The world’s largest Market capitalisation(1) of manufacturer of Nitrile, RM8.2 bil, USD1.8 bil Natural Rubber and [as at 14 Jul 2022] Surgical gloves Our Vision 100 billion gloves p.a. 9MFY22 Revenue To be
Slide 5: From Humble Origins to Global Leader
From Humble Origins to Global Leader 1994 2002 2007 2013 2017 2019 2021 ▪ First ▪ Commenced ▪ Revenue Established ▪ Revenue over ▪ Launched ▪ FY21 PAT of overseas operations in over RM1 bil first dedicated RM3 bil BioGreen RM7.8 bil foray and China ▪ Acquisition Group R&D ▪ Commenced Biodegradable e
Slide 6: Strong growth opportunity in developing countries
Healthcare Spending Will Continue to Increase in Emerging Market Strong growth opportunity in developing countries on the back of large population but current low glove usage Glove per Capita Consumption in 2020, Pieces Population by Region in 2020, ‘mil People High glove usage in Low glove usage in
Slide 7: Distribution Across 195 Countries
Distribution Across 195 Countries: % of 3QFY22 Sales Volume by region Distribution Asia Western Eastern ex Japan 20% ▪ 7 distribution hubs globally North 20% Europe 20% America 13% Europe ▪ Over 2,000 customers Japan 6% ▪ An OEM manufacturer in every region ▪ Top 5 customers represent Germany c.11%
Slide 8: Diverse Range of Products to Align with Rapidly Changing Markets
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/TPE/C
Slide 9: Continuous Growth in Manufacturing Capabilities
Continuous Growth in Manufacturing Capabilities Top Glove’s Total Production Capacity Top Glove’s Manufacturing Capabilities In Bil Pcs Total: 37 Glove Factories + 12 Non Glove Factories Deferred some expansion plans Current Capacity: 100 bil pcs p.a. with 812 Production Lines Additional Capacity Ma
Slide 10: Reverse Downtrend in Raw Material Prices
Reverse Downtrend in Raw Material Prices Nitrile & NR Latex Prices 3QFY22 Top Glove’s Cost Structure USD/KG 2.42 2.3 Electricity 2.04 NR Latex 3% Packaging 7% 1.8 1.66 1.63 Chemical 8% 1.22 1.20 Raw Material Labour 12% 1.3 44% 1.17 1.18 1.08 Nitrile Fuel 0.8 1.01 Other 13% Dec/19 Apr/20 Aug/20 Dec/2
Slide 11: 3QFY22 quarterly results
3QFY22 quarterly results for the period 1/3 to 31/5/22 3QFY22 2QFY22 Variance 3QFY21 Variance 1/3 to 31/5/22 1/12/21 to 28/2/22 3QFY22 vs 2QFY22 1/3 to 31/5/21 3QFY22 vs 3QFY21 Revenue, RM’mil 1,465 1,449 4,163 1% (65%) Revenue, USD’mil 342 345 1,010 EBITDA, RM’mil 124 193 2,668 (36%) (95%) EBITDA,
Slide 12: A Consistently High Growth Company Since Listing in 2001 (RM)
A Consistently High Growth Company Since Listing in 2001 Over 21 Years Since Listing in 2001 Compound Annual Growth Rate, CAGR Average PAT Margin Revenue PAT in RM’mil 20% 17% 21% in RM’mil 31 August Financial Year End in RM’mil 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9MFY22
Slide 13: A Consistently High Growth Company Since Listing in 2001 (USD)
A Consistently High Growth Company Since Listing in 2001 Over 21 Years Since Listing in 2001 Compound Annual Growth Rate, CAGR Average PAT Margin Revenue PAT in USD’mil 20% 17% 21% in USD’mil 31 August Financial Year End in USD’mil 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 9MF
Slide 14: Bursa: Shareholder Value Track Record
Bursa: Shareholder Value Track Record Total Shareholders Return of 9,014% Over 21 Years Since Listing in Year 2001 Number of CDS and CDP Number of accounts accounts as at 30 June 2022 Total CDS Accounts, Bursa 131,847 Total CDP Accounts, SGX 9,461 Grand Total 141,308 Source: Registrar of Depository
Slide 15: SGX: Share price appreciation
SGX: Share price appreciation Total Shareholders Return of 125% over 6 years Since Listing in 28 Jun 2016 Number of CDP accounts as at 30 June 2022 9,461 Source: Registrar of Depository Source: Reuters as of 14 Jul 2022 Note: (1) adjusted for bonus issue and share split since IPO Page 15/28
Slide 16: Top Glove Convertible Bond Price Performance
Top Glove Convertible Bond Price Performance Issued on 1st March 2019 and Fully Redeemed on 16th October 2020 Issuer: Top Glove Labuan Ltd Isin: XS1941677764 Convertible Bond Price as at 16th Oct 2020: 490 Issuance size: USD200 million USD 452.12 Coupon: 2% 440 Issued Date: 1st March 2019 Maturity D
Slide 17: Bursa Top 100 Market Capitalization Listed Companies
Bursa Top 100 Market Capitalization Listed Companies Data as of last trading day close price on 14/7/2022 based on Thomson Reuters Page 17/28
Slide 18: Bursa Top 100 Market Capitalization Listed Companies (Con't)
Bursa Top 100 Market Capitalization Listed Companies (Con’t) Data as of last trading day close price on 14/7/2022 based on Thomson Reuters Page 18/28
Slide 19: Bursa Top 100 Market Capitalization Listed Companies (Con't)
Bursa Top 100 Market Capitalization Listed Companies (Con’t) Data as of last trading day close price on 14/7/2022 based on Thomson Reuters Page 19/28
Slide 20: Summary of Research Reports Rating
Summary of Research Reports Rating Target price (TP), Target PE and Projected Profit After Tax (PAT) Summary of Research Reports Rating as at 14/7/2022 Num. Report Research New TP Prev TP Target PE based Proj PAT, RM'mil Call Previous Date House RM RM FY22F FY23F FY22F FY23F rating Call 1 09-Jun-22
Slide 21: We Care for the Health of Our Employees
We Care for the Health of Our Employees Top Glove has 45 Wellness Team Members as at 8 June 2022 9 Medical Doctors 4 Nurses Medical 1 Dentist 4 Clinic Admins 27 Professionals & 1 Mental Health Counselors 1 Paramedic 2 Ambulances 5 Medical Assistants 1 Radiographer 1 Assistant Pharmacist 10 Nutrition
Slide 22: Top Glove's Sustainability Roadmap FY2022 to FY2025
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 Chain
Slide 23: Integrated Sustainability Policy to Uphold Best Practices
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, setting
Slide 24: 40% of KPIs linked to ESG metrics in 5 focus areas
2021 was Year of ESG for Top Glove: Environmental, Social & Governance We aspire to be the Glove Manufacturer of Choice for customers which driven by the integration of sustainability into every aspect of our business. Commitment Good business starts with strong ethics and the Group is linking Execu
Slide 25: 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 Ethics Business Philosophies 1. Honesty 1. We work for our customers To produce consistently high 2. Integrity 2. We take care of the inte
Slide 26: Top Glove's Medium and Long Term Objectives
Top Glove’s Medium and Long Term Objectives OUR VISION OUR MISSION To be your world class partner in gloves Ensuring safe human protection globally and healthcare products supported by our values Our Products, Our People Process & Customers Our Financials Healthy workforce living 5 Wells ▪ Diversify
Slide 27: Thank You
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
Slide 28: Top Glove Customer Centric Claps
TOP GLOVE CUSTOMER CENTRIC CLAPS 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 Page 28/28