Riverstone Holdings Limited · SGX:AP4
Riverstone — FY2021 Earnings Presentation
33 slides from Riverstone's earnings presentation, Feb 23, 2022
Slide 1: Riverstone Holdings Ltd Results Briefing FY2021
Riverstone Holdings Ltd Results Briefing FY2021 23rd February 2022
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptions. Represen
Slide 3: Report Outline
REPORT OUTLINE • Business Overview • Key Milestones • Group Structure • Financial Highlights • Investment Merits • Future Outlook • ESG Presentation 3
Slide 4: Business Overview
B US I N E SS OV E R V I E W Manufacturing 1 High Tech Cleanroom Gloves 2 Premium Healthcare Gloves 3 Cleanroom Consumables 4
Slide 5: Key Milestones
KEY MILESTONES Established to provide glove Incorporated Eco Medi Glove S/B & Launched a chlorination, laundry and Successfully listed on the five-year expansion plan to bring total packaging services to glove Mainboard of Singapore production capacity to 8.6 billion (later revised manufacturers in
Slide 6: Group Structure
GROUP STRUCTURE Riverstone Holdings Limited (Investment Holding) 100% 99.993% 100% 100% 100% Riverstone Resources Riverstone Industrial Riverstone Resources Eco Medi Glove Sdn Protective Technology Sdn Bhd Products Sdn Bhd (Singapore) Pte. Ltd. Bhd Co. Ltd. Cleanroom & Cleanroom Distribution Cleanro
Slide 7: Business Sites
BUSINESS SITES MALAYSIA (TAIPING) MALAYSIA (BUKIT BERUNTUNG) RIVERSTONE RESOURCES SDN BHD RIVERSTONE RESOURCES SDN BHD MALAYSIA (BUKIT BERUNTUNG) MALAYSIA (TAIPING) RIVERSTONE INDUSTRIAL PRODUCTS SDN BHD ECO MEDI GLOVE SDN BHD 7
Slide 8: Business Sites
BUSINESS SITES CHINA THAILAND RIVERSTONE RESOURCES (WUXI) COMPANY LIMITED PROTECTIVE TECHNOLOGY COMPANY LIMITED 8
Slide 9: Business Segment
BUSINESS SEGMENT 01. CLEANROOM BUSINESS 02. HEALTHCARE BUSINESS Cleanroom gloves Examination gloves Food grade gloves Cleanroom consumables Personal protective equipment 9
Slide 10: Cleanroom Business
CLEANROOM BUSINESS 01 Introduction 02 Product Suite Cleanroom gloves: To protect • Nitrile gloves semiconductor products from • Latex gloves contamination, corrosion & ESD. • Finger cots • Packaging Materials • Face mask 03 Business Model 04 Market (i) Riverstone is an own-brand High end electronics
Slide 11: Healthcare Business
H E A LT H C A R E B U S I N E S S 01 Introduction 02 Product Suite Healthcare gloves offer users a • Procedure gloves protection barrier against biohazards • High risk gloves whilst performing general medical • Hand specific gloves practices. • Dental gloves • Accelator free gloves 03 Business Mode
Slide 12: Financial Highlights (FY2021 unaudited)
FINANCIAL HIGHLIGHTS (FY2021 unaudited) YOY Comparison Result Overview Y2021 FY2020 Change 4Q2021 4Q2020 Change (RM'000) (RM'000) (%) (RM'000) (RM'000) (%) Revenue 3,082,447 1,829,882 68.5 410,158 720,840 (43.1) Gross Profit 1,906,832 897,613 112.4 154,401 448,254 (65.6) Profit Before Tax 1,858,589
Slide 13: Financial Highlights: Revenue
FINANCIAL HIGHLIGHTS (FY2021 unaudited) Revenue (RM’000) 3,500.0 3,082.4 3,000.0 410.2 2,500.0 652.8 2,000.0 1,829.9 Q4 Q3 Q2 Q1 987.2 1,500.0 720.8 989.0 921.0 1,000.0 817.0 257.4 482.3 257.4 210.3 251.3 187.8 239.5 1,032.3 500.0 347.3 239.7 213.2 214.2 205.7 209.8 240.5 279.4 0.0 2017 2018 2019 20
Slide 14: Financial Highlights: Gross Profit
FINANCIAL HIGHLIGHTS (FY2021 unaudited) Gross Profit 1,906.8 2,000.0 (RM’000) 154.4 1,800.0 1,600.0 357.2 1,400.0 1,200.0 Q4 897.6 686.9 Q3 1,000.0 Q2 Q1 800.0 448.3 600.0 197.4 190.0 198.9 400.0 708.3 251.6 200.0 51.1 48.7 52.6 50.8 46.1 51.4 130.6 43.7 48.3 48.3 51.8 46.9 46.6 67.1 0.0 2017 2018 2
Slide 15: Financial Highlights: Net Profit
FINANCIAL HIGHLIGHTS (FY2021 unaudited) Net Profit 1,600.0 (RM’000) 1,417.9 1,400.0 110.8 1,200.0 266.4 1,000.0 Q4 Q3 800.0 518.0 Q2 647.3 Q1 600.0 331.1 400.0 127.6 129.7 130.4 522.7 178.6 200.0 32.5 32.9 32.1 34.3 32.1 35.6 90.9 27.1 33.6 32.5 33.6 31.1 30.2 46.6 0.0 2017 2018 2019 2020 2021 *Tota
Slide 16: Financial Highlights: Operating Cash Flow
FINANCIAL HIGHLIGHTS (FY2021 unaudited) Operating Cash Flow 1,700.0 1,569.8 (RM’000) 45.9 1,500.0 449.0 1,300.0 1,100.0 Q4 900.0 Q3 702.8 Q2 600.4 Q1 700.0 296.0 500.0 184.5 300.0 145.7 167.3 167.8 474.5 8.9 53.0 47.9 170.5 58.8 44.7 47.0 100.0 37.6 26.3 22.3 40.4 43.5 50.6 51.7 2017 2018 2019 2020
Slide 17: Financial Highlights: Consistent Dividends Declared
FINANCIAL HIGHLIGHTS (FY2021 unaudited) Consistent Dividends Declared (RM Sen/Share)˜ Dividend since 50.00 48.00 IPO 45.00 Dividend Payout Ratio FY2021 50.1% 40.00 FY2020 50.4% FY2019 42.0% 35.00 FY2018 38.6% 30.00 FY2017 40.7% FY2016 40.0% 24.00 25.00 FY2015 37.8% FY2014 36.0% 20.00 FY2013 42.4% 15
Slide 18: Competitive Advantages
A D VA N TA G E S & O P P O R T U N I T I E S Competitive Advantages Extensive R&D Leading in-house technology Partnership & collaboration with (in terms of Electrostatic customers Discharge properties) State-of-the-art product High barrier of entry for cleanroom Solutions provider testing facilitie
Slide 19: Investment Merits
INVESTMENT MERITS CONSISTENT DIVIDEND PAYOUT DISTINCTION FROM PEERS RESILIENT BALANCE SHEET • Consistent payout since listing • 2 sources of revenue (diversified) • Net cash position • High tech cleanroom gloves • Sustainable positive operating cash • Premium healthcare gloves flow FLEXIBLE PRODUCTI
Slide 20: Capacity Expansion
F UT UR E OUT LO OK CAPACITY EXPANSION Y2021A* - 10.5 billion pcs Y2022E - 12.0 billion pcs Y2023E - 13.5 billion pcs Y2024E – 15.0 billion pcs *Capacity expansion delayed by 1 year due to lockdowns in Y2021 20
Slide 21: Recent Challenges and Solutions
RECENT CHALLENGES Challenges Solutions Competition from newcomers & Diversified into 2 sources Chinese manufacturers (Cleanroom & Medical) Well-established with Increase in gas, utility and labour cost greater experience/expertise (Customer trust) Cost management (Product streamlining) 21
Slide 22: ESG Presentation 2021
Riverstone Holdings Ltd ESG presentation 2021 Social Corporate Environmental Compliance Governance 22
Slide 23: Environmental: Reduce Water Usage
E N V I R O N M E N TA L REDUCE WATER USAGE 23%* Using '20 as 19%* baseline 14%* '25 10%* '24 5%* saving target '23 0% '22 '21 '20 *All % water savings are calculated by using '20 as the baseline. Existing Ongoing Future Future REDUCE WATER FREQUENCY OF RAINWATER RECYCLING PROCESS HARVESTING PRODUCT
Slide 24: Environmental: Reduce Electricity Consumption
E N V I R O N M E N TA L REDUCE ELECTRICITY CONSUMPTION 10%* Using '20 as 8%* baseline 6%* '25 4%* '24 2%* saving target '23 0% '22 '21 '20 *All % electricity savings are calculated by using '20 as the baseline. Ongoing Ongoing Ongoing Future IMPROVEMENT REDUCE ON PACKING CHILLER FREQUENCY OF IMPLEM
Slide 25: Environmental: Reduce Wastage
E N V I R O N M E N TA L REDUCE WASTAGE Reduce Frequency of Product Colour Changeover Current Colour Options Fewer Colour Options 3 years target Target: reduce waste by 50% '22 '25 "When different product colours are requested, Reduce WASTE is created due to PRODUCT CHANGEOVER" WASTE Reduced Product
Slide 26: Environmental: Sustainable Energy with Emission Reduction
E N V I R O N M E N TA L S U S TA I N A B L E E N E R G Y W I T H E M I S S I O N R E D U C T I O N • Generates 744,000 kWh electricity from solar energy annually. Solar panel • Reduces greenhouse gas emission by approximately 516.30 tCO e/year. 2 • Biomass is a renewable energy source from byproduc
Slide 27: Social Initiatives
S O C I A L I N I T I AT I V E S • Built our own workers' hostel equipped with gymnasium, indoor sports arena, first aid room, barber shops, grocery shops, and laundry services. 27
Slide 28: Social Initiatives: Employee Welfare and Development
S O C I A L I N I T I AT I V E S Employee Welfare Development • Yearly bonus + special bonus: weekly, • Provides technical and soft skills monthly, and three and a half months training, language classes, and local bonus in 2020 & 2021 is paid across cultural adaptation classes to all local the compa
Slide 29: Social Initiatives: Education Aid
S O C I A L I N I T I AT I V E S Education Aid • Annual budget allocated to provide our employees' children with payment assistance when school reopens. • In the process of setting up a charitable foundation (Yayasan). 29
Slide 30: Corporate Governance
C O R P O R AT E G O V E R N A N C E BOARD STRUCTURE 1 • Comprises 3 independent directors and 2 executive directors. CORPORATE COMMITTEES GOVERNANCE 2 • Audit Committee: 3 independent directors. "We believe sound corporate • Remuneration Committee: 3 independent directors. governance practices lead
Slide 31: Corporate Governance
C O R P O R AT E G O V E R N A N C E MANAGEMENT DIVERSITY 4 • Gender balance in management and country representatives. • Diverse Board with wide-ranging expertise, background and knowledge. ESG COMMITTEE • Set up a new ESG committee with new members in 2021. • Currently, there are representatives f
Slide 32: Certifications & Compliances
C E R T I F I C AT I O N S & C O M P L I A N C E S 32
Slide 33: Thank You
C E R T I F I C AT I O N S & C O M P L I A N C E S THANK YOU