TOP GLOVE CORPORATION BHD Corporate Presentation April 2018 Bursa - - PowerPoint PPT Presentation
TOP GLOVE CORPORATION BHD Corporate Presentation April 2018 Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100 Top Glove business ethics Ready, 1 2 3 Claps, 2x 3x2x Prepared By: Ng Chin Yong @14/07/17
Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100
Top Glove business ethics
Prepared By: Ng Chin Yong @14/07/17 Checked & Verified By: Ng Yong Lin @14/07/17
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Disclaimer
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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. By attending this presentation, you are agreeing to be bound by these restrictions. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information contained in this document (the “Information”) is strictly confidential and has been provided by the Company and has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or
financial condition, results of operations, trading position or prospects. The Information and opinions in this document are provided as at the date of this document and are subject to change without notice. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain data in this document was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. This document contains, and any related presentations may contain, financial information regarding the businesses and assets of the Company and its consolidated subsidiaries. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this document or any related presentation should not be regarded as a representation or warranty by the Company, any of its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information’s portrayal of the business, financial condition, results of operations, trading position or prospects by the Company and should not be relied upon when making an investmentdecision. This document includes forward-looking statements prepared by the Company. The opinions, forecasts, projections and other statements (except statements of historical fact), including, without limitation, financial results for 1HFY2018, are forward-looking statements. Although the Company believes that the expectations reflected in such forward- looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Each forward-looking statement speaks only as of the date of this
result of new information, future events or other information. In light of these risks, actual results could differ materially from those stated, implied or inferred from the forward- looking statements contained in thisdocument. This document and any related presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to subscribe for or purchase any securities and nothing contained herein shall form the basis of, or be relied on, in connection with any contract or commitment whatsoever. Any decision to purchase securities in the context of a proposed offering undertaken in the future by the Company, if any, should be made on the basis of information contained in the offering document published in relation to such an
not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption to registration. Any securities offered by the Company or any of its subsidiaries will be offered to (1) persons in Labuan or outside Malaysia or entities established or registered under the laws of Labuan and (2) persons falling within the categories of excluded offers and invitations of debentures as set out in Section 8(5) of the Labuan Financial Services and Securities Act 2010 ("LFSSA"). This document, any related presentation or any copy thereof may not be taken or transmitted or distributed, directly or indirectly, into the United States, Canada, Australia or Japan. The Company does not intend to register any offering of securities in the United States or conduct any public offering of securities in the United States. The distribution of this document and any related presentation in other jurisdictions may be restricted by law and persons into whose possession this document or any related presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction.
Top Glove Corporation Bhd (“Top Glove”) at a glance
56.2 billion gloves pa 37 factories 609 production lines(1) 2,000+ customers across 195 countries FY17 Revenue of RM3.4bn (USD 882mn) and PATMI of RM0.3bn (USD85mn)(3) Current market capitalisation(2) of RM13.0bn (USD 3.4bn) Global leader in medical and surgical gloves
Source: Bloomberg Notes: (1) Include Aspion Sdn Bhd (“Aspion”) (2) Market capitalisation as at 13 April 2018. Translated at FX rate of USD1:RM3.8643 for convenience (3) Based on Top Glove’s consolidated financial results for FYE 31 Aug 2017. Excludes Aspion (RM0.6bn (USD162mn) revenues for FYE 31 Oct 2016). PATMI refers to profit after tax and minority interests. Translated at FX rate of USD1:RM3.8643 for convenience
World’s largest manufacturer of gloves
Aspion: a transformational acquisition Over 16,000 employees(1)
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From humble origins to global leader
Nearly 3 decades of track record of excellence
Note: (1) Translated at FX rate of USD1:RM3.8643 for convenience
1991 ▪ Started asa local business enterprise 2013 ▪ Established first dedicated GroupR&D Centre to drive innovation ▪ Acquisition of the remaining minority stake in Medi-Flex and privatisation of the company 1994 ▪ First overseas foray and established a marketing arm inthe USA 2006 ▪ Acquisition of amajority stake in Medi-Flex 2007 ▪ Revenues over RM1bn 2016 ▪ Secondary listing on Singapore Stock Exchange (“SGX”) 2017 ▪ Investment in new business line- condom projected to beoperational by mid-2018 ▪ Revenues overRM3bn (USD776mn)(1) 2018 ▪ Acquisition of Aspion ▪ Acquisition of EasternPress ▪ Proposed acquisition of Duramedical 2010 ▪ Revenues over RM2bn 2011 ▪ Acquired a marketingarm in Germany to extend sales in Europe 2002 ▪ Commenced operationsin China ▪ Established a secondrubber glovefactory in Thailand ▪ Transferred to the Main Board
2001 ▪ Commenced operations inThailand ▪ Listed on the Second Board of Kuala Lumpur StockExchange (“KLSE”)
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Tan Sri Dr Lim WeeChai Lim Hooi Sin Puan Sri Tong SiewBee
▪ Founded Top Glove in 1991 ▪ Over 30 years of experience in rubber glove industry in Malaysia ▪ Served as the President of the Malaysian RubberGlove Manufacturers’ Association (“MARGMA”) ▪ Present appointments include President of the Federation of Malaysian Manufacturers, Director and Board Member
Honorary President of the Malaysia-China Chamber of Commerce Founder Executive Chairman Length of service: 27 years Relevant experience
Dato Lee Kim Meow
▪ Joined Top Glove in1997 Appointed Managing Director in 2003 ▪ Present appointments include Chairman of the ASEAN Rubber Glove ManufacturersAssociation (“ARGMA”) and Trustee of MARGMA Foundation Managing Director Length of service: 21 years Relevant experience Relevant experience Executive Director Length of service: 27 years ▪ Joined Top Glove in 1991 Appointed ExecutiveDirector in 2000 ▪ Responsible for thecomputer and information systems, human resource and general administration ▪ Over 30 years of experience in the rubber glove and banking industries Relevant experience ▪ Founded TG Medical USA Inc, a wholly-owned subsidiary of Top Glove in
Director in 2000 ▪ Responsible for product development,marketing, sales ▪ Over 30 years of experience in the rubber glove industry in USA and Malaysia Executive Director Length of service: 24 years
Lim Cheong Guan
Relevant experience ▪ Joined Top Glove in2005 Appointed Executive Director in 2006 ▪ Responsible for the accounting, treasury, corporate finance and investor relations ▪ Over 28 years of experience in the field of audit, manufacturing, plantation, trading and property development Executive Director CFO Length of service: 13 years
Low Chin Guan
Relevant experience ▪ Appointed Executive Director in 2018 pursuantto the acquisition of Aspion ▪ Over 30 years of experience in the rubber glove industry in Malaysia ▪ Prior to Top Glove,founded the initial subsidiary of Adventa Berhad (Aspion)in 1988 Executive Director Founder of Aspion
Led by an experienced senior management team
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4 3 10 12 14 21 27 32 66 68 99 99 99 143 182 182 20 40 60 80 100 120 140 160 180 200 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-08 Mar-09 Annual Dividends TopGlove
13 April 2018: RM 10.16 27 March 2001: RM 0.13(1) (IPO price adjustedfor bonus issue andshare split since IPO)
Share Price (RM)
Total Shareholder Return:
8,284%
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Track record of delivering shareholder value
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Total dividend payment of RM1,161 million since listing in year 2001
Number of shares held(1) Market value Accumulated dividends Investment cost (as at 27 March 2001) Capital appreciation(2) Total shareholder return (as at 13 April 2018) # RM RM RM RM % 20,384 207,101 19,264 (2,700) 223,665 8,284%
With initial investment of 1,000 shares made based on IPO price of RM2.70 on 27 March 2001, the return would be:
Dividends (RMmn)
Source: Bloomberg as of 13 April 2018 Notes: (1) 1,000 shares at IPO, adjusted for bonus issue and share split since IPO (2) Calculated based on adding market value and accumulated dividends and subtracting the investment cost
103 127 135 173 201 2005 2008 2011 2014 2017
Steady growth in global demand for rubber gloves
Developed countries (USA, EU29 and Japan) % of World Population % of GlobalGlove Consumption 70% 30% 18% Other regions 82% CAGR 05-17: 5.7%
Driven by strong market fundamentals across geographies ▪ As a protective barrier for medical staff, gloves are an indispensable item in the healthcare sector, with increasing customer awareness in developing markets ▪ Increasing hygiene standards and healthcare awareness ▪ Non-medical sector in developed countries ▪ Medical sector in developing countries ▪ A growing ageing population ▪ With the elderly being more susceptible to higher risk diseases ▪ Progressively stringent healthregulations ▪ Healthcare reforms in US, China ▪ Healthcare regulations: OSHA in the US, EU-OSHA in Europe, SESI in Brazil ▪ Emergence of new healththreats ▪ A(H1N1), SARS, bird flu, ebola, bio-terrorism,Anthrax
Strong industry fundamentals
Further growth potential from emerging markets
Based on 2016 statistics
% ofWorld Population % of GlobalGlove Consumption
In billion pieces
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Source: Malaysia Rubber Gloves Manufacturer Association, International Trade Centre and Company & www.worldmeters.info
Aspion Acquisition (General Surgery)
(Disposable) (Examination) (Examination) (Thermoplastic) (Cast Polyethylene)
(Disposable, Household)
Latex Powdered Nitrile Specialised Surgical CPE/ TPE Vinyl
(Examination) (Disposable, (Disposable) Household)
(Disposable)
(Disposable)
(Examination)
1 1
Latex Powder-free
(Examination)
(Disposable, (Disposable) Household)
Sale Contribution Product Category
1H18 Sales Volume (including Aspion)
Surgical Industrial Food
Majority of revenues (Specialised Surgery)
(General Surgery)
(General Surgery)
1 Top 3
Key Markets Medical
▪ Mainly developed markets(Europe) ▪ Global ▪ Global ▪ Mainly developing markets ▪ Mainly developed markets (USA, Europe, Japan) ▪ Global
24% 19% 38% 12% 5% 2%
Market leader with extensive range of products
Extensive products mix applied in diverse industries, with a strong focus on medical / surgical sector Applications / industry
Market Position
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Continuous growth in manufacturing capabilities
China
▪ 1 Glove Factory Producing: ▪ Vinyl gloves
Malaysia
▪ Headquarters ▪ 28 Glove Factories ▪ 2 Chemical Factories ▪ 1 Glove Former ▪ 1 Packaging factory Producing: ▪ Latex & nitrile examination gloves ▪ Surgical, household, cleanroom, CPE/TPEgloves ▪ Former & Chemical Manufacturing
Thailand
▪ 2 Latex Plants ▪ 2 Glove Factories Producing: ▪ Latex examination gloves ▪ Latex concentrate
Clear blueprint for further growth ▪ Boosting nitrile capacity in tandem with growingdemand ▪ Faster, more efficient and technologically advanced production lines ▪ Increased automation throughout the manufacturing process ▪ On-going facility optimisation initiatives which include the construction of highly-efficient factories
Manufacturing Glove type Number of productionlines Capacity (pieces per annum) Current: Top Glove: 28 glove factories All 544 lines 51.6 bn Aspion: 3 glove factories Surgical, Nitrile, Latex 65 lines 4.6 bn Total 31 glove factories 609 lines 56.2 bn Expansion in progress : F31 New factory (June 2018) Nitrile 30 lines 3.0 bn F32 New factory (early2019) Nitrile 48 lines 4.8 bn Total expansion 78 lines 7.8 bn Total by early 2019: 33 glovefactories 687 lines 64.0 bn Latex Processing Top Glove: 2 latex plants Sourcing majority of the latex requirements
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Global distribution across 195 countries
Germany USA China Malaysia Thailand
Geography 3-year average sales volume growth rate North America 10.8% Europe 11.3% Japan 13.2% Asia ex Japan 12.9% Middle East 6.3% Latin America 3.8% Africa (8.1%) Global 8.8%
Legend: Distribution hub
Distribution ▪ Over 2,000 customers ▪ Comprising distributors across 195 countries ▪ A geographicallydiverse customer base ▪ An OEM manufacturer inevery region ▪ Top 20 customersrepresent c.25% of total revenue ▪ No single customer contributes more than 5% ofrevenue
Europe 31% North America 25% Latin America 9% Asiaex- Japan 15% Middle- East 8% Japan 8% 4%
1H18 Sales VolumeBreakdown (including Aspion)
Africa
Brazil
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442 525 484 309 238 17.6% 18.2% 14.2% 14.5% 16.3% 280 361 329 156 214 12.5% 9.6% 9.6% 11.3% 334 434 381 65 154
Proven track record of growth and profitability
Revenue and growth EBITDA and margins(2) Cash flow from operations PATMI and margins(3)
RMmn (x) 12
With strong operating cashflows
CAGR of 4.7% Growth = 29.9% 2015 USD114mn 2016 USD136mn 2017 USD125mn 1H17 USD62mn 1H18 USD80mn RMmn 11.1% USD Equivalent(1) 2015 USD72mn 2016 USD93mn 2017 USD85mn 1H17 USD40mn 1H18 USD55mn CAGR of 6.8% Growth = 138.2% 2015 USD86mn 2016 USD112mn 2017 USD99mn 1H17 USD17mn 1H18 USD40mn RMmn YoY volume growth 8% 11% 7% 19% CAGR of 16.5% 3,409 Growth = 2,511 2,889 15.9% 1,897 1,637 USD Equivalent(1) 2015 USD650mn 2016 USD747mn 2017 USD882mn 1H17 1H18 USD424mn USD491mn
Notes: Financials based on Top Glove consolidated financials for the relevant period without adjusting for the impact of the acquisition of Aspion (1) Translated at FX rate of USD1:RM3.8643 for convenience (2) EBITDA refers to earnings before interest, tax, depreciation and amortisation. EBITDA margins refer to EBITDA over Revenue (3) PATMI refers to profit after tax and minority interests. Net profit margins refer to PATMI over Revenue
CAGR of 8.4% Growth = 37.1%
Prudent capital management
Adjusted net debt / (adjusted net cash) position Gearing ratio(D/E) Cash flow from operations / debt Adjusted net debt / EBITDA
RMmn (x) (x) (x) (0.41x) (0.58x) (0.15x) 2015 2016 2017 0.53x 1.09x 1.01x 2015 2016 2017 Adjusted net debt / (Adjusted netcash)(1) 0.40x 0.22x 0.19x 0.22x 0.28x 31 Aug 15 31 Aug 16 31 Aug 17 28 Feb 17 28 Feb 18 146 636 399 376 418 224 240 175 185 585 670 479 207 282 135 31 Aug 15 31 Aug 16 Cash Debt 31 Aug 17 28 Feb 17 28 Feb 18 Short-term investment securities 13 (180) (304) (71) (39) 265
Note: Financials based on Top Glove consolidated financials for the relevant period without adjusting for the impact of the acquisition of Aspion (1) Adjusted net debt / (adjusted net cash) is calculated by subtracting cash and short-term investment securities from total debt
Healthy balance sheet
14 Notes: (1) Adjusted for certain events after 31 August 2017 comprising of: a. the exercise of 2,145,060 ESOS Options between 1 September 2017 and 04 April2018; and b. the acquisition by the Company of the entire equity interest in Aspion, completed on 4 April 2018. The purchase consideration was satisfied by: (i) RM1,233.0 million in cash, which was funded via conventional term loan and Islamic term financing; and (ii) the issuance of 20,505,000 new Top Glove Shares at RM6.6813 (2) Translated at FX rate of USD1:RM3.8643 for convenience (3) Adjusted net debt / (adjusted net cash) is calculated by subtracting cash and short-term investment securities from total debt
In RMmn As of 31 Aug 2017 Proforma 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 / (netcash) 136.3 35.3 1,631.6 422.2 Shareholders’ equity 2,003.3 518.4 2,142.0 554.3 Debt / equity (x) 0.19x 0.88x Net debt / equity (x) 0.07x 0.76x Investment in securities 206.9 53.5 206.9 53.5 Adjusted cash 447.0 115.7 465.3 120.4 Adjusted net debt / (adjusted net cash)(3) (70.6) (18.3) 1,424.7 368.7 Adjusted net debt / equity (x) NM (adjusted net cash) 0.67x
Aspion – A highly synergistic and transformational acquisition
Highly synergistic acquisition
Top Glove becomes world #1 manufacturer(1) in surgical and medical gloves globally,with leading low-cost and high-techcapabilities Access to new customers, specifically in developed markets of US, Europe andJapan Overcome high barriers entry in the surgical gloves market, including regulatory approvals Financially attractive acquisition
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Access to cutting edge technology and premium product offering that isexpected to lead the trend in preference glove adoption in developed nations
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Source: Company, Frost and Sullivan Global Surgical Gloves Market (July 2017) Note: (1) Based on production volume
17% 21% 17% 13% 12% (1) 10% 1%
Becoming the #1 surgical glove manufacturer in the world(1)
Others 26% Propels Top Glove to become the #1 surgical glove manufacturer(1)… … accessing new clients in key developed markets in surgical gloves 12% 29%
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▪ Immediate access and opportunity to tap developed and new markets including the US with high surgical glove consumption/ capita ▪ Complementary fit with Top Glove’s existing surgical glove markets due to minimal duplication ▪ Diversify the risk profile of Top Glove surgical glovebusiness segment by expanding into developed countries
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Geographical breakdown of surgical gloves annual sales(2) (volume)
Aspion Top Glove North America 7.3%
22.1% 1.0% Japan 5.0%
23.1% 13.0% South America 18.8% 15.0% Asia 20.0% 26.0% Eastern Europe 2.5% 37.0% Others 1.2% 8.0%
▪ 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 increasing profitability ▪ Accelerates Top Glove’s plan to attain c.30% market share in the global rubber glove market by 2020 Competitor A Competitor B Competitor D Competitor C
Source: Company, Frost and Sullivan Global Surgical Gloves Market (July 2017) Note: (1) Based on production volume. Top Glove market share based on Company’s estimates (2) Top Glove figures based on financial year ending 31 August 2017 / Aspion figures based on financial year ending 31 October 2016
Access to new manufacturing knowledge and proprietary materials
Acquisition of Aspion will complement existing Top Glove product range with cutting edge technology surgicalglove Examination gloves Entry Mid-range Preference
Protection ▪ Orthopaedic ▪ Trauma ▪ High risk surgery Comfort ▪ Microsurgery ▪ Neurosurgery ▪ Photorefractive keratectomy Zero Chemicals ▪ General surgery ▪ Endoscopic surgery ▪ Obstetrics ▪ Gynaecology
Safety and No Allergens ▪ No latex allergens ▪ Zero chemical accelerators ▪ No chemical allergens Protection (AQL(1)<0.1) ▪ Strong barrier efficiency ▪ Block passage of viruses ▪ Virtually nopinholes Lasting Comfort ▪ Ultra low stress onhands ▪ Comfortable wear throughsurgery
Finessis’ flagship surgical glove consists of 3 brands
FUSION FUSION barrierONE Sensiflex Plus Maxitex NeuroPF Maxitex PF Maxitex UGPF Maxitex DuplexPF Maxitex Maxitex Duplex Nuzone X2 Ulma Fortis PF Ulma Fortis Nugard NugardNitril Sensiflex
Cutting Edge Technology: FINESSISTM Surgical Glove Using FlexylonTM
5 years to develop Finessis using “Flexylon” material created using proprietary R&D and approved by FDA, EU andTGA
Superior Quality Access to cutting edge technology Top Glove will benefit from Aspion's premium product offering, enhanced by Aspion’s highly specialised Finessis product that is expected to lead the trend in preference surgical glove adoption in developed markets
Note: (1) AQL refers to Acceptable Quality Level
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Profit guarantee: ▪ Guarantee by the Vendor to reimburse the core PAT shortfall in FY2018 and FY2019: ▪ If actual core PAT for FY2018 is less than RM80.9mn, the difference will be: i.
ii. any remaining shortfall will be paid by Vendor to Top Glove ▪ If actual core PAT for FY2019 is less than RM108.3mn, the shortfall will be paid by Vendor to Top Glove ▪ Aggregate amount to be paid by the Vendor in relation to the profit guarantee will not exceed RM100mn
Aspion transaction highlights
Notes: (1) FY refers to FYE 31 October
Salient terms of the transaction
1 2 Finessis Incentive:
▪ Finessis is a new cutting edge technology product from Aspion Group with strong potential but currently unproven. PAT of the Finessis product includes sales of Finessis Gloves by the Aspion Group and fees, royalties and income received for the use of any rights relating to Finessis gloves (“Finessis PAT”) ▪ Finessis PAT achieved was approx. RM1.0 million for FYE 31 October 2017, the first financial year during which the Finessis Gloves were commercialized ▪ Structure of Finessis Incentive allows the Group to reduce the initial purchase consideration for a highly attractive new product with strong potential but no proven sales track record yet and align the purchase consideration for Finessis with its future actual performance Purchase consideration arrived at after taking into account risk of the acquisition Acquisition ▪ 100% of Aspion Sdn Bhd (“Aspion”) Vendor ▪ Adventa Capital Pte. Ltd. (“Vendor”) Purchase price ▪ Total consideration: RM1,370 million, consisting of: ▪ RM1,233 million in cash ▪ 20.505 million of new Top Glove ordinary shares issued at a price at RM6.6813/share Finessis Incentive ▪ Under the Finessis incentive, the Vendor will be entitled to the following payments:
Finessis % subject to PAT PAT Finessis Finessis IncentiveAmount period(1) incentive multiple FY2018 20.0% 16.93 Finessis PAT x 20.0% x16.93 FY2019 30.0% 16.93 Finessis PAT x 30.0% x16.93 FY2020 50.0% 16.93 Finessis PAT x 50.0% x16.93
Profit guarantee ▪ Guarantee by the Vendor to reimburse any core PAT shortfall in FY2018 and FY2019 up to RM100mn Completion ▪ 04 April 2018
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Conclusion
Market leader ▪ World’s largest manufacturerof gloves ▪ Market leadership in all key productsegments Attractive industry fundamentals ▪ Strong growth in usage of rubber gloves historically in developed countries ▪ Future growth potential from emerging markets Positioned strongly for growth ▪ Continuous growth in manufacturingcapacities ▪ Global distribution network across 195 countries Strong financial performance ▪ Strong historical growth in revenue andearnings ▪ EBITDA margin of 15-16% and strong operatingcash flows generation ▪ Prudent capital management with strong balance sheet Aspion acquisition ▪ Highly synergistic and accretive acquisition ▪ Propels Top Glove to the #1 surgical glove manufacturerglobally
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www.topglove.com | invest@topglove.com.my | +603 3362 3098 www.topglove.com | invest@topglove.com.my | +603 3362 3098
Appendix
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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 humanlives Corporate To be a world class glove manufacturer by providing Mission: top quality products with excellent services through continuous improvement and innovation Business Direction Business Philosophies ▪ To produce consistently high quality gloves at efficient low cost ▪ We work for ourcustomers ▪ We take care of the interest of our shareholders ▪ We ensure that our employees continue to contribute positively to the company and we care fortheir well-being ▪ We work closely with our bankers, suppliers, business associates and friends Business Rules ▪ Do not lose our shareholders’money ▪ Do not lose our health ▪ Do not lose our temper ▪ Do not lose our customers Investment Direction ▪ To invest 1 efficient dollar and earn 2 healthy dollars Business Ethics ▪ Honesty ▪ Integrity ▪ Transparency
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Top Glove strong CSR stewardship
▪ All factories in the process of being ISO 14001 certified ▪ On-site Detention tanks and rain harvesting tanks installed in factories ▪ All Klang factoriesare strategically located within 500m of each
consumption ▪ Rubber waste sentto government certified companies for purposes of recycling
Transportation Water Efficiency Waste Management Practices
Environment
ISO 14001
▪ Launched with the objective ofproviding funds for the purpose of charity, education, environment andcommunity
Social
Top Glove Foundation Community Outreach Program
▪ Well-being of our employees continues to be a foremostpriority ▪ Policies to govern our hiringprocesses and protect our workforce
Employees
Learning & Development
▪ A learning organisation with themotto: “Must Know, Must Do, Must Teach”
Talent Recruitment & Attraction
▪ Stringent policies to hire well-rounded talents and provide opportunities for future leaders
Corporate Wellness
▪ Committed to serve thecommunity
Fair & Equitable Work Environment
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Top Glove group of companies
Prepared by : QA Admin (Rev . 6, Date Prepared : 14/7/17) Verified by : Ms. Loo Sun Nooi / QA DGM
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