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Riverstone Holdings Limited3Q2020 Corporate Presentation
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. Representative examples of
these factors include (without limitation) general industry and economic conditions, interest rate trends,
cost of capital and capital availability, competition from other companies, shifts in customer demands,
customers and partners, changes in operating expenses, including employee wages, benefits and training,
governmental and public policy changes and the continued availability of financing in the amounts and the
terms necessary to support future business. You are cautioned not to place undue reliance on these
presentation and the information contain therein, which are based on current view of management on
future events.
Without prejudice to or derogating from the generality of the foregoing, no representation or assurance is
given by Riverstone that this presentation contain all information that an investor may require. To the extent
permitted by applicable law, Riverstone or its related persons (and their respective directors, associates,
connected persons and/or employees) shall not be liable in any manner whatsoever for any consequences
(including but not limited to any direct, indirect or consequential losses, loss of profits and damages) arising
from the reliance or use of the information contain in this presentation.
Investors are advised to make their own independent evaluation from this presentation, consider their own
individual investment objectives, financial situation and particular needs and consult their own professional
and financial advisers as the legal, business, financial, tax and other aspects as investors may regard as
relevant.
2
Group
Financial
Highlights for
3Q2020 Outlook
3
4
Results Overview
3Q2019
(RM ‘000)
2Q2020
(RM ‘000)
3Q2020
(RM ‘000)
Revenue 251,256 347,299 482,341
Gross Profit 51,390 130,596 251,631
Profit Before Tax 41,750 117,237 232,448
Net Profit 35,611 90,925 178,629
As at 30 September
2020
As at 31 December
2019
Cash & Cash Eq
(RM ‘000)427,337 130,409
Quarterly & YOY Comparison
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
2016 2017 2018 2019 2020
148.1205.7 209.8 240.5 279.4
156.7
213.2 214.2239.7
347.3
167.0
187.8239.5
251.3
482.3
Q3
Q2
Q1
Growing Revenues
471.8
* Annual figures may have some discrepancy due to rounding
RM ‘million
5
606.7
663.6
731.5
1,109.0
Revenue
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2016 2017 2018 2019 2020
43.1 51.8 46.9 46.667.1
38.243.7 48.3 48.3
130.6
43.650.8 46.1 51.4
251.6
Q3
Q2
Q1
Gross Profit
RM ‘million
6
124.9
146.3 141.3 146.3
* Annual figures may have some discrepancy due to rounding
449.4
Gross Profit
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2016 2017 2018 2019 2020
27.2 33.6 31.1 30.246.6
27.327.1 33.6 32.5
90.9
29.834.3 32.1 35.6
178.6
Q3
Q2
Q1
Net Profit
316.2
84.3
RM ‘million
7
95.1 96.8 98.3
* Annual figures may have some discrepancy due to rounding
Net Profit
Positive Cash Flow Generation From Operating Activities
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
2016 2017 2018 2019 2020
13.340.4 43.5 50.6 51.740.7
37.6 26.3 22.3
170.5
34.3
58.844.7 47.0
184.5
Q3
Q2
Q1
RM ‘million
406.7
88.3
8
136.7114.3
* Annual figures may have some discrepancy due to rounding
119.9
Operating CF
Consistent Dividends since IPO
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1.29
1.66 1.78
2.652.95 2.95 3.00
3.40 3.45
6.45 6.49
7.006.75
7.40
4.00
Dividends Declared (RM Sen/Share)˜
^ including a special 1 sen
tax-exempt dividend
Dividend Payout Ratio
FY2019 42.0%
FY2018 38.6%
FY2017 40.7%
FY2016 40.0%
FY2015 37.8%
FY2014 36.0%
FY2013 42.4%
FY2012 49.3%
FY2011 48.4%
FY2010 45.5%
FY2009 55.6%^
FY2008 45.2%
FY2007 45.0%
FY2006 28.0%
˜Adjusted for the 1:1 bonus shares
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Group
Financial
Highlights for
3Q2020 Outlook
10
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Group Capacity
• Y2020:10.5 billion
• Y2021:12.0 billion
• Y2022:13.5 billion
• Y2023:15.0 billion
Eco Medi Glove Sdn Bhd – Plant 2
Protective Technology Co Ltd
Riverstone Resources Sdn Bhd
Group Capacity
12
Expansion Focus – Plant 3
Ongoing Expansion Plans
• Acquired two parcels of
industrial land in FY2019
(18.4 acres)
• Launched three year
expansion plan in FY2020
(Phase 7 – 9 )
• Total annual capacity of the
Group projected to reach up
to 15.0 billion pieces by end-
FY2023
Eco Medi Glove Sdn Bhd – Plant 3
Group Capacity
Investment Merits
Plan to increase capacity by 1.5 billion pieces of gloves every year
Resilient balance sheet with net cash position and continued ability
to generate positive operating cash flow
Consistent dividend payout since listing
Why we are distinct from our competitors – we have 2 main sources of revenue, namely:
1. High tech cleanroom gloves –own brand, direct to end-user; and
2.Healthcare gloves –consistent demand, resilient to changing market conditions
13
In Summary
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▪ Average selling price of healthcare examination gloves increased 10.0% month-on-month (“mom”) from June to October 2020, and 15.0% mom for Novemberand December
▪ Cleanroom gloves grew >30.0% in the first three quarters of 2020. Increasingtrend expected to persist through to 2021
▪ Overall, average selling prices of both healthcare and cleanroom gloves areexpected to continue trending upwards due to strong demand
▪ Two more double lines to be commissioned in November and December 2020
▪ Group will add 1.5 billion pieces of gloves in 2021, with the first line of this newPhase 7 ready in April 2021
▪ All of the new capacity (1.5 billion pieces of gloves) has been booked bycustomers
▪ Two further phases from 2022-2023 (Phase 8 – 9) projected to bring capacity byup to 1.5 billion pieces of gloves per annum to a total of up to 15.0 billion byend-FY2023
15
Thank You!
Media & IR Contacts:
Ngo Yit SungDirector
Jonathan WeeConsultant
Tel: (65) 6438 2990
Fax: (65) 6438 0064
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