Investors Presentation 2018 - - PowerPoint PPT Presentation
Growing Global Investors Presentation 2018 ..
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Investors Presentation 2018
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About us
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Contents
Financial Performance Dividends & Share Price Performance Industry Outlook Hartalega NGC Status Antimicrobial Gloves (AMG)
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Financial Performance
High growth glove company
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Sales Revenue & Profit
110 160 240 282 443 572 735 921 1,032 1,107 1,145 1,498 1,822 2,405
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Revenue (RM mil) 13 19 37 40 85 146 190 201 234 234 210 259 283 439
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Profit After Tax (RM mil)
Revenue
YoY Increase
Profit After Tax
YoY Increase
FY18 Net Profit Margin
Revenue CAGR
FY05-FY18
PAT CAGR
FY05-FY18
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EPS Growth
2.66 2.90 4.91 6.54 6.91 7.97 7.85 6.74 7.85 8.62 13.28 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Earnings per Share (sen)
EPS
YoY Increase
EPS CAGR
FY08-FY18
Net Earnings grew from RM40m (2008) to RM439m (2018) or 10.9 times in 10 years Number of shares grew from 243m shares (2008) to 3,311m shares (2018) as a result of bonus issue of 1 for 2 in 2010, bonus issue of 1 for 1 in 2012, bonus issue of 1 for 1 in 2015 & bonus issue of 1 for 1 in March 2018 which not hinder EPS from growing Focus on sustaining EPS via combination of economies of scale and stable margins
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Quarterly Profit & Corporate Exercise
57 63 56 96 125 48 60 71 113 50 73 66 113 55 62 89 116 FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4
1Q19 vs 1Q18 PAT
YoY Increase
1Q19 vs 4Q18 PAT
QoQ Increase
Increase in Q1 due to higher revenues from higher ASP and capacity utilization rates. We are currently commissioning lines in NGC Plant 5. These lines will contribute to our Q2- Q4 growth.
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Dividend & Share Price Performance
Good growth prospects
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Hartalega’s Dividend Growth
Dividend per share is stated post-bonus issue*
1.00 1.67 2.63 3.13 3.63 3.63 3.25 4.00 4.25 7.95 34.4%33.9% 40.1% 45.3%45.7%47.0%49.9%50.9%49.3% 60.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 DPS (sen) Payout Ratio
Dividend Per Share
For FY2018
Dividend Payout Ratio
From FY2018 onwards
Pay-out Policy of minimum 60% instituted from FY2018 onwards Although number of shares have grown, DPS has grown to 7.95 sen to date
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Hartalega Share Price Performance - FY2018
1 2 3 4 5 6 7 1,000.00 1,100.00 1,200.00 1,300.00 1,400.00 1,500.00 1,600.00 1,700.00 1,800.00 1,900.00 2,000.00 Hartalega (RHS) FBMKLCI (LHS)
Share Price
Over FY2018
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Most valuable glove company with market capitalisation of RM20 billion as of 30th Mar 2018 Market cap appreciated by approx. 46 times from RM436 million (IPO of RM1.80 adjusted for bonus issues) to current market cap of RM20 billion (as of 30th Mar 2018) Hartalega commands a premium for its healthy financials, sales growth, innovation and productivity
436 606 1,987 1,981 2,902 3,623 5,116 6,934 7,959 8,139 20,037 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
Market capitalisation (RM mil)
Most valuable glove manufacturer
Market capitalization exceeding RM20 billion
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Industry Outlook
Healthy growth in 2019/2020
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Consistent growth in global consumption
Market outlook
64 68 84 92 94 102110122124140150148160171180194210 228 246 265 287
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018f 2019f 2020f
Global consumption of rubber gloves (bil pcs)
World demand for rubber gloves grow at an average of 6% to 8% per annum Malaysia is the largest supplier of rubber gloves to the world – 63% market share Demand for glove is inelastic, a basic necessity in healthcare and other sectors that require hand protection Global consumption growth will continue stemming from increase from developing nations where existing per capita consumption is significantly lower than developed countries
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276 259 250 230 226 208 201 198 197 185 180 163 156 153 124 120 106 90 88 83 67 66 58 32 30 10 6 4 2
Gloves per capita consumption (pieces) Market statistics show big disparity in per capita consumption between developed and developing nations Countries with low per capita consumption of gloves that have huge population and high GDP growth indicate big
Market outlook
Attractive opportunities in high growth and highly populated developing countries
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Market outlook
Malaysia Big Four Global demand
Supply and demand remains healthy
Global consumption projected to grow more than industry’s capacity expansion Malaysia competitiveness relative to China in glove production has improved due to China’s government clamp down on environmental compliance Rubber glove expected to take market share from PVC glove PVC glove market size is about equal to rubber glove
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16 NR 42% NBR, 58% NR, 49% NBR, 51% NR, 43% NBR, 57% NR, 40% NBR, 60%
Year 2014 Year 2015 Year 2016 Year 2017
Malaysia’s Export of Rubber Gloves (source MREPC)
Market outlook
Nitrile glove export in Malaysia continues to grow
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Hartalega NGC Status
Next generation integrated manufacturing complex
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11,513 12,522 15,744 19,540 25,818 30,707 34,950 39,115
10,000 20,000 30,000 40,000 50,000 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
Production output projection
Our strategy
15% p.a. growth via capacity expansion
Growth via addition of new capacity through construction of new production lines To date, 49 production lines are running at NGC. 4 out of 6 plants at NGC are in full operation Construction of NGC plant 6 has commenced
Plant 5
1st line commissioned in August
Plant 6
Target to start
1H 2019
Plant 7
Target to start
2H 2019
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Antimicrobial Gloves
World’s First Non-Leaching Antimicrobial Gloves
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20 Healthcare Associated Infections (HAI) are infections that patients get while receiving treatment for medical or surgical conditions
USA
Affected Patients 1.7 million Deaths 99,000 Cost approx. USD 6.5 billion
EU
Affected Patients 4.1 million Deaths 37,000 Cost approx. EUR 7 billion
World’s first non-leaching antimicrobial gloves
What is Healthcare Associated Infections (HAIs)?
Source: Adapted from World Health Organization, Healthcare-Associated Infections Fact Sheet.
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World’s first non-leaching antimicrobial gloves
The role of medical gloves
Centre of Disease Control and Prevention (CDC) and World Health Organization (WHO) recommends wearing medical gloves to reduce risk of: Blood and body fluid contamination of healthcare workers’ hands Microbial dissemination in the environment, microbial transmission from healthcare workers to patients and vice versa, as well as among patients. Gloves at current however is a passive barrier protection against HAIs
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World’s first non-leaching antimicrobial gloves
Antimicrobial Glove (AMG): An active approach in preventing HAIs
Contrary to conventional gloves, AMG antimicrobial gloves can play an active role in reducing spread of infections Designed to kill microorganisms on the external side of the glove quickly upon contact. Active ingredient on the glove is a photosensitizer which generates singlet oxygen when exposed to light. This singlet oxygen oxidizes bacteria’s protein and lipid, thus leading to death of microbes. Photodynamic Reaction Leading to Cell Death
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World’s first non-leaching antimicrobial gloves
The benefits of AMG
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World’s first non-leaching antimicrobial gloves
Bactericidal efficacy of AMG
Microbe Type Average % Bacteria Killed 5 mins 10 mins 15 mins 20 mins Enterococcus faecalis (VRE) Gram-positive 99.982 99.996
Enterococcus faecium Gram-positive 99.991 99.991 99.996
Gram-positive 99.988 99.998 99.999 99.997 Staphylococcus aureus** Gram-positive 99.999 99.993
Streptococcus pyogenes Gram-positive 99.946 99.970 99.988 99.996 Escherichia coli Gram-negative
Gram-negative
** Further testing was conducted on Staphylococcus aureus at shorter contact time. Bacteria kill rate (%) results recorded: 99.989% (1 min), 99.998% (2 mins) & 99.999% (5 mins)
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Antimicrobial Gloves Video https://www.youtube.com/watch?v=6_WsUHXFnr4
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