Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5...

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TOP GLOVE CORPORATION BHD Corporate Presentation June 2018 Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100

Transcript of Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5...

Page 1: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

TOP GLOVE CORPORATION BHD

Corporate Presentation

June 2018

Bursa Malaysia : 7113 SGX : BVA Reuters : TPGC.KL Bloomberg : TOPG MK ADR CUSIP : 890534100

Page 2: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Top Glove business ethics

Ready, 1 2 3

Claps, 2x 3x2x

Prepared By: Ng Chin Yong @14/07/17

Checked & Verified By: Ng Yong Lin @14/07/17

2

Page 3: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Disclaimer

3

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

opinions contained herein. It is not the intention to provide, and you may not rely on this document as providing, a complete or comprehensive analysis of the Company’s business,

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

document. Neither the Company nor any of its affiliates, advisors or representatives undertakes any obligation to publicly update or revise any forward-looking statement as a

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

offering. Any securities offered by the Company or any of its subsidiaries will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may

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 relatedpresentation 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 anysuch other jurisdiction.

Page 4: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Top Glove Corporation Bhd (“Top Glove”) at a glance

57.5 billion gloves pa

38 factories

618 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

RM13.3bn

(USD 3.35bn)

Global leader in

medical and

surgical gloves

Source: Bloomberg

Notes:

(1) Include Aspion Sdn Bhd (“Aspion”)

(2) Market capitalisation as at 01 June 2018. Translated at FX rate of USD1:RM3.9835 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 ofgloves

Aspion:

a transformational

acquisition

Over 17,000

employees(1)

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Page 5: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

From humble origins to global leaderNearly 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 StockExchange (“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 operations in

China

Established a second rubber

glovefactory in Thailand

Transferred to the Main Board

of KLSE

2001

Commenced operations inThailand

Listed on the Second Board of Kuala Lumpur StockExchange (“KLSE”)

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Page 6: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Tan Sri Dr Lim Wee Chai

Lim Hooi SinPuan Sri Tong Siew Bee

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 of Employees ProvidentFund, 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 Executive Director 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 1994. Appointed Executive 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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4 310 12 14

2127

32

66 68

99 99 99

143

182 182

0

20

40

60

80

100

120

140

160

180

200

0.0

2.0

4.0

6.0

8.0

10.0

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-18Mar-08 Mar-09

Annual Dividends TopGlove

01 June 2018:

RM 10.44

27 March 2001:

RM 0.13(1)

(IPO price adjustedfor

bonus issue andshare

split since IPO)

Share

Pri

ce

(RM

)

Total Shareholder Return:

8,495%

99

Number of shares held(1) Market value Accumulated

dividends

Investment cost

(as at 27 March 2001)

Capital

appreciation(2)

Total shareholder

return(as at 01 June 2018)

# RM RM RM RM %

20,384 212,809 19,264 (2,700) 229,373 8,495%

With initial investment of 1,000 shares made based on IPO price of RM2.70 on 27 March 2001, the return would be:

Div

idends

(RM

mn)

Source: Bloomberg as of 01 June 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

Track Record of Delivering Shareholder ValueTotal dividend payment of RM1,161 million since listing in year 2001

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103

127135

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 health regulations

Healthcare reforms in US, China

Healthcare regulations: OSHA in the US, EU-OSHA in Europe, SESI

in Brazil

Emergence of new health threats

A(H1N1), SARS, bird flu, ebola, bio-terrorism,Anthrax

Strong industry fundamentals

Further growth potential from emerging markets

Based on 2016 statistics

% of World

Population

% of GlobalGlove

Consumption

In billion pieces

8

Source: International Trade Centre and Company & www.worldmeters.info

Page 9: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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 productsExtensive products mix applied in diverse industries, with a strong focus on medical / surgical sector

Applications / industry

Market Position

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Page 10: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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

1 Dental dam

Producing:

Latex & nitrile examination

gloves

Surgical, household,

cleanroom, CPE/TPEgloves

Former & Chemical

Manufacturing

Dental Dam

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 typeNumber of

production lines

Capacity

(pieces per

annum)

Current:

Top Glove: 28 glove factories All 543 lines 52.7 bn

Aspion: 3 glove factoriesSurgical, Nitrile,

Latex75 lines 4.8 bn

Total 31 glove factories 618 lines 57.5 bn

Expansion in progress :

F31 New factory (June 2018) Nitrile 30 lines 3.0 bn

F32 New factory (early 2019) Nitrile 48 lines 4.8 bn

Total expansion 78 lines 7.8 bn

Total by early 2019: 33 glove factories 696 lines 65.3 bn

Latex Processing

Top Glove: 2 latex plants Sourcing majority of the latex requirements

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Global distribution across 195 countries

GermanyUSA 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 geographically diverse

customer base

An OEM manufacturer inevery

region

Top 20 customersrepresent

c.25% of total revenue

No single customer contributes

more than 5% of revenue

Europe

31%

North America

25%

Latin America

9%

Asia ex-Japan 15%

Middle-East 8%

Japan 8%

4%

1H18 Sales VolumeBreakdown

(including Aspion)

Africa

Brazil

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Page 12: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

442

525484

309238

17.6% 18.2%

14.2% 14.5%16.3%

280361 329

156214

12.5%

9.6% 9.6%11.3%

334

434381

65

154

Proven track record of growth and profitability

Revenue and growth EBITDA and margins(2)

Cash flow from operationsPATMI 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 =

2,5112,889 15.9%

1,8971,637

USD Equivalent(1)

2015USD650mn

2016USD747mn

2017USD882mn

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%

Page 13: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Prudent capital management

Adjusted net debt / (adjusted net cash) position Gearing ratio (D/E)

Cash flow from operations / debtAdjusted net debt / EBITDA

RMmn (x)

(x) (x)

(0.41x)

(0.58x)

(0.15x)

2015 2016 2017

0.53x

1.09x1.01x

2015 2016 2017

Adjusted net debt /

(Adjusted netcash)(1) 0.40x

0.22x0.19x

0.22x

0.28x

31 Aug 15 31 Aug 16 31 Aug 17 28 Feb 17 28 Feb 18

146

636399 376 418

224 240 175 185

585

670 479207 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

Page 14: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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 2017Proforma

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 / (net cash) 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

Page 15: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Aspion – A highly synergistic and transformational acquisition

Highly synergisticacquisition

Top Glove becomes world #1 manufacturer(1) in surgical and medical gloves globally,withleading 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

3

4

1

2

Access to cutting edge technology and premium product offering that isexpected to lead

the trend in preference glove adoption in developed nations

5

15

Source: Company, Frost and Sullivan Global Surgical Gloves Market (July 2017)

Note:

(1) Based on production volume

Page 16: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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% 1

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

16

Geographical breakdown of surgical gloves annual sales(2) (volume)

Aspion Top Glove

North America 7.3% -

Western Europe 22.1% 1.0%

Japan 5.0% -

Middle East 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

Page 17: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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 through surgery

Finessis’ flagship

surgical glove

consists of 3

brands

FUSIONFUSION

barrierONE

Sensiflex

Plus

Maxitex

NeuroPF

Maxitex

PF

Maxitex

UGPF

Maxitex

DuplexPFMaxitex

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

17

Page 18: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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. offset by the Finessis PAT for FY2018; andii. 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

2Finessis Incentive:

Finessis is a new cutting edge technology product from AspionGroup with strong potential but currently unproven. PAT of theFinessis product includes sales of Finessis Gloves by the AspionGroup and fees, royalties and income received for the use of anyrights relating to Finessis gloves (“Finessis PAT”)

Finessis PAT achieved was approx. RM1.0 million for FYE 31October 2017, the first financial year during which the FinessisGloves were commercialized

Structure of Finessis Incentive allows the Group to reduce theinitial purchase consideration for a highly attractive new productwith strong potential but no proven sales track record yet and alignthe purchase consideration for Finessis with its future actualperformance

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 entitledto the following payments:

Finessis % subject toPAT

PAT Finessis Finessis IncentiveAmount

period(1)

incentivemultiple

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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Page 19: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Conclusion

Market leader

World’s largest manufacturerof gloves

Market leadership in all key product segments

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 manufacturer globally

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5

3

2

1

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Page 20: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Thank You

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www.topglove.com | [email protected] | +603 3362 3098www.topglove.com | [email protected] | +603 3362 3098

Page 21: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Appendix

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Page 22: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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 providingMission: 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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Page 23: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

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

other, minimising fuel

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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Page 24: Top Glove Corporate Presentation...Top Glove Corporation Bhd (“Top Glove”) at aglance57.5 billion gloves pa 38 factories 618 production lines(1) 2,000+ customers across 195 countries

Top Glove group of companies

Prepared by : QA Admin (Rev. 6, Date Prepared : 14/7/17)

Verified by : Ms. Loo Sun Nooi / QA DGM

Ready, 1 2 3

TOP GLOVE

Top Quality

Top Quality

Top Quality

Claps, 2X 3X 2X

YES! YES! YES!

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