Growing Global
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Investors
Presentation 2018
Growing Global
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About us
Growing Global
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Contents
Financial Performance
Dividends & Share Price
Performance
Industry Outlook
Hartalega NGC Status
Antimicrobial Gloves (AMG)
Growing Global
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Financial Performance
High growth glove company
Growing Global
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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 F
Y05
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
Revenue (RM mil)
13 19 37 40 85
146 190 201
234 234 210
259 283
439
FY
05
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
Profit After Tax (RM mil)
Revenue
32.0%YoY Increase
Profit After Tax
55.2%YoY Increase
FY18 Net Profit Margin
18.2%
Revenue CAGR
26.7%FY05-FY18
PAT CAGR
31.0%FY05-FY18
Growing Global
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EPS Growth
2.66 2.90
4.91
6.546.91
7.97 7.85
6.74
7.858.62
13.28
FY
08
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
Earnings per Share (sen) EPS
54.0%YoY Increase
EPS CAGR
17.4%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
Growing Global
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Quarterly Profit & Corporate Exercise
5763
56
96
125
48
60
71
113
50
7366
113
55
62
89
116
FY15 FY16 FY17 FY18 FY19
Q1 Q2 Q3 Q4 1Q19
vs 1Q18 PAT
29.7%YoY Increase
1Q19
vs 4Q18 PAT
7.4%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*
1.001.67
2.633.13
3.63 3.633.25
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%
FY
09
FY
10
FY
11
FY
12
FY
13
FY
14
FY
15
FY
16
FY
17
FY
18
DPS (sen) Payout Ratio
Dividend
Per Share
7.95senFor FY2018
Dividend
Payout Ratio
60.0%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
Growing Global
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Hartalega Share Price Performance - FY2018
0
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
+ 146%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 productivity436 606
1,987 1,9812,902
3,623
5,116
6,9347,959
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 6884 92 94 102110
122124140150148
160171180
194210
228246
265287
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
Growing Global
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276259 250
230 226208 201 198 197 185 180
163 156 153124 120
10690 88 83
67 66 5832 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
opportunities for demand growth for gloves
Market outlook
Attractive opportunities in high growth and highly populated developing countries
Growing Global
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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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NR42%
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
Growing Global
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Hartalega NGC Status
Next generation integrated
manufacturing complex
NGC
Growing Global
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11,513 12,522
15,744
19,540
25,818
30,707
34,950
39,115
0
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 51st line
commissioned
in August
Plant 6Target to start
operations in
1H 2019
Plant 7Target to start
operations in
2H 2019
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Antimicrobial Gloves
World’s First Non-Leaching
Antimicrobial Gloves
Growing Global
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Healthcare Associated Infections (HAI) are infections that patients get while
receiving treatment for medical or surgical conditions
USAAffected Patients 1.7 million
Deaths 99,000
Cost approx. USD 6.5 billion
EUAffected 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.
Growing Global
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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
Growing Global
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World’s first non-leaching antimicrobial gloves
Bactericidal efficacy of AMG
Microbe TypeAverage % Bacteria Killed
5 mins 10 mins 15 mins 20 mins
Enterococcus faecalis (VRE) Gram-positive 99.982 99.996 - 99.968
Enterococcus faecium Gram-positive 99.991 99.991 99.996 -
MRSA Gram-positive 99.988 99.998 99.999 99.997
Staphylococcus aureus** Gram-positive 99.999 99.993 - 99.994
Streptococcus pyogenes Gram-positive 99.946 99.970 99.988 99.996
Escherichia coli Gram-negative - - 99.030 -
Klebsiella pneumoniae Gram-negative - 96.471 - 97.747
** 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)
Growing Global
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https://www.youtube.com/watch?v=6_WsUHXFnr4
Growing Global
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Do you have
any question? AQ